Cebu Pacific
IATA ICAO Callsign
5J CEB CEBU AIR[1]
FoundedAugust 26, 1988; 34 years ago (1988-08-26)[2]
Commenced operationsMarch 8, 1996; 27 years ago (1996-03-08)
AOC #2009002[3]
Hubs
Secondary hubs
Focus citiesZamboanga
Frequent-flyer programGo Rewards
AllianceValue Alliance
Subsidiaries
Fleet size57
Destinations62 (including Cebgo)
Parent companyJG Summit Holdings
Traded asPSE: CEB
Headquarters
Key people
RevenueIncrease ₱56.75 billion (2022)
Operating incomeIncrease ₱−11.43 billion (2022)
Net incomeIncrease ₱−13.98 billion (2022)
Total assetsIncrease ₱147.16 billion (2022)
Total equityDecrease ₱−2.89 billion (2022)
Employees3,046 (2021)[7]
Websitewww.cebupacificair.com

Cebu Air, Inc., operating as Cebu Pacific (PSE: CEB), is a Philippine low-cost airline based at Pasay in Metro Manila. Founded in 1988,[2] it is Asia's oldest low-cost airline.[8] It offers scheduled flights to both domestic and international destinations. The airline operates flights from two primary hubs in Cebu and Manila, five secondary hubs in Cagayan de Oro,[9] Clark, Davao,[10] Iloilo,[4] and Kalibo,[11] and a focus city in Zamboanga.[12]

With its low-cost business model, Cebu Pacific became the Philippines' largest airline based on number of passengers flown on domestic and international routes in 2010, overtaking rival Philippine Airlines (PAL). According to Civil Aeronautics Board data, Cebu Pacific flew 2.45 million total passengers in the first quarter of 2010, nearly 110,000 more than PAL, which carried 2.34 million systemwide during the same period.[13][14]

The airline has been criticized for its "unsatisfactory" service to the passengers, prompting investigations by the Philippine government.[15]

History

Foundation and growth (1988–2006)

A McDonnell Douglas DC-9-30 on its final flight to Mactan–Cebu International Airport in 2006
Cebu Pacific Air Airbus A320 wearing the 2005–2016 livery

The airline was established on August 26, 1988. Republic Act No. 7151, which grants a legislative franchise to Cebu Air, Inc. to operate was approved on August 30, 1991.[16] It started operations on March 8, 1996, with its first flight from Manila to Cebu. Domestic services commenced following market deregulation by the Philippine government. The airline was subsequently acquired by JG Summit Holdings, which was at the time, owned by John Gokongwei. It temporarily ceased operations in February 1998 after being grounded by the government due to an accident that killed 104 people but resumed services later the next month following re-certification of its aircraft.[10] It initially started with 24 domestic flights daily among Metro Manila, Metro Cebu, and Metro Davao. By the end of 2001, its operations had grown to about 80 daily flights to 18 domestic destinations.

In the 2000s, Cebu Pacific was granted rights to operate international flights to the region, including Malaysia, Indonesia, Singapore, Thailand, South Korea, Hong Kong, and Guam. International flights were launched on November 22, 2001, with a twice-daily service to Hong Kong.[17] On March 1, 2002, it commenced thrice-weekly flights to Seoul.[18] Other regional flights were introduced and suspended later; however, including flights to Singapore (from November 6, 2002, to January 2003) and from Manila via Subic to Seoul (from December 2002) due in part to the effects of the SARS epidemic.[19]

In November 2005, Cebu Pacific launched its "Go Fares" promo, reducing its air fares by half to increase the airline's revenue by twenty percent.[20] Following this, the airline gained a significant increase in passengers.[21] Cebu Pacific President Lance Gokongwei said that the low fares aim to attract more people to travel by air.[20]

The airline resumed its Manila–Singapore flights on August 31, 2006[22] and launched its direct flight from Cebu to Singapore on October 23, 2006, the first low-cost airline to serve the Cebu-Singapore-Cebu sector,[23] and in direct competition with Singapore Airlines' subsidiary SilkAir, CEB was the only Philippine carrier serving the Cebu-Singapore-Cebu route for years until Philippine Airlines resumed its direct service in 2017. The airline operates direct flights from Cebu to Hong Kong which commenced October 2, 2006, which also made CEB the only Philippine carrier to serve a Cebu-Hong Kong-Cebu route after PAL terminated its direct service and is now code-sharing with Cathay Pacific for this route.[24]

Cebu Pacific's plans to begin international flights from Clark in 2007 were initially unsuccessful when its request was denied. The nations involved came to an agreement that Cebu Pacific would be only allowed to operate charter flights from Clark to the respective countries' airport(s). Only Singapore initially agreed to allow Cebu Pacific to fly scheduled flights from Clark to Singapore.[25] It later expanded its routes from Clark to Cebu, Davao, Hong Kong, Macau, and Tokyo.[26]

Expansion and re-branding (2007–2020)

One of Cebu Pacific's Airbus A330, registered RP-C3345, landing in Manila
An Airbus A330-300 wearing the current livery

In November 2007, Cebu Pacific opened a hub at Francisco Bangoy International Airport in Davao City, its fourth hub after Manila, Cebu, and Clark. It later launched direct services from Davao to Singapore, Hong Kong, and Iloilo in May 2008.[27] In late 2007, Cebu Pacific announced plans to launch non-stop flights to the United States West Coast, Houston, Texas and Chicago, Illinois by mid-2009.[28]

On May 28, 2008, Cebu Pacific was named as the world's number one airline in terms of growth. The airline was also ranked fifth in Asia for Budget Airline passengers transported and 23rd in the world. The airline carried a total of almost 5.5 million passengers in 2007, an increase of 57.4 percent from 2006.[29]

In August 2009, Cebu Pacific became the first airline in the Philippines to use social media. The airline created a fan page on Facebook and Twitter.[30]

In October 2010, the airline completed an initial public offering of 30.4% of outstanding shares. It raised ₱23.3 billion prior to an exercise of an overallotment option and was the largest IPO made by a low-cost carrier.[31]

In January 2011, Cebu Pacific flew its 50 millionth passenger.[32]

In 2012, Cebu Pacific opened its fifth hub at Iloilo International Airport and launched direct flights from Iloilo to Hong Kong, General Santos, Singapore, and Puerto Princesa.[4] Later that year, it opened a hub in Kalibo and launching direct flights from Kalibo to Davao and Puerto Princesa. That same year, Cebu Pacific planned to commence international long-haul flights to the Middle East, the United States, Australia, and some parts of Europe using the Airbus A330-300.[33] The first long-haul flight commenced to Dubai, United Arab Emirates on October 7, 2013.[34] Cebu Pacific is also applying for rights for a daily service to Auckland, New Zealand.[35]

The airline flew its 100 millionth passenger in January 2015,.[36] In June of that year, Cebu Pacific revealed its new logo that represents the colors of the Philippines and also symbolizes as an evolution of a low-cost pioneer.[37] The airline received its first Airbus A320 painted in the new livery on January 22, 2016.[38]

Cebu Pacific opened its seventh hub at Cagayan de Oro's Laguindingan Airport in October 2017 and launched direct flights to Dumaguete and Caticlan from Cagayan de Oro.[9] That same month, it flew its 150 millionth passenger.[39] In 2018, Cebu Pacific launched flights to Basco, Batanes and Melbourne, Australia.[40][41]

COVID-19 pandemic (2020–present)

The COVID-19 pandemic impacted the operations of the airline and its regional subsidiary. All operations were suspended during the enhanced community quarantine in Luzon in 2020. Due to low passenger demand, the airline laid off 1,300 employees that year,[42] and sent many aircraft to indefinite storage.[43] In 2021, Cebu Pacific raised a total of ₱40.5 billion (US$822 million) to help the airline recover from the pandemic.[44]

As travel demand recovers, it started rehiring retrenched employees in November 2021[42] and aims to restore its full workforce by 2023. In March 2022, the airline flew its 200 millionth passenger.[45] By July 2022, the airline operated at 88% of pre-pandemic levels, with domestic operations being restored to 100% of pre-pandemic levels.[46]

Corporate affairs

Cebu Pacific headquarters, as viewed from the Ninoy Aquino International Airport runway.

Cebu Pacific is headquarted at the Cebu Pacific Building along Domestic Road in Pasay City.[2] The airline is a subsidiary of JG Summit Holdings.

Partnerships

Cebu Pacific was the only Philippines-based member airline of Northwest Airlines' WorldPerks award travel program. WorldPerks offered regular travellers the ability to obtain free tickets, first-class upgrades on flights and other types of rewards. On August 1, 2006, Northwest and Cebu Pacific ended their mileage-accrual agreement.[citation needed]

On May 16, 2016, Cebu Pacific became a founding member of the world's largest low-cost carrier alliance, Value Alliance.[47] It joined other pioneer members Singapore's Scoot, South Korea's Jeju Air, Thailand's Nok Air and NokScoot, Tigerair, Tigerair Australia, and Japan's Vanilla Air in the low-cost carrier network.[48] Cebu Pacific is also currently the only Philippine carrier which is a member of an airline alliance.

Subsidiaries

Cebgo is the airline's regional subsidiary. It operates an all-turboprop fleet of ATR 72-600 aircraft and is used in regional domestic routes. It was founded in May 2015 following the acquisition of Tigerair Philippines by Cebu Pacific.[49]

Cebu Pacific Cargo operates two dedicated cargo turboprop aircraft. The airline announced in 2018 that it would enter the dedicated cargo market to support the increase in demand for logistics.[50]

Business highlights

Cebu Pacific financial highlights (PHP billion)[51]
Fiscal year Revenue Operating
expenses 		Operating
income 		Net
income 		Assets Liabilities Equity
2008 19.68 17.96 1.73 −3.26 32.56 28.56 4.00
2009 23.31 20.15 3.16 3.26 35.32 28.06 7.26
2010 29.09 22.64 6.45 6.92 49.94 32.03 17.91
2011 33.94 30.60 3.34 3.62 55.68 36.51 19.17
2012 37.90 35.24 2.66 3.57 61.41 39.37 22.04
2013 41.00 38.60 2.40 0.51 67.53 46.45 21.08
2014 52.00 47.84 4.16 0.85 76.06 54.52 21.54
2015 56.50 46.80 9.70 4.39 84.83 59.87 24.96
2016 61.90 49.65 12.25 9.75 100.51 67.00 33.51
2017 68.03 57.90 10.13 7.9 109.08 69.29 39.79
2018 74.11 67.06 7.05 3.92 129.39 89.29 40.10
2019 84.81 72.19 12.62 9.12 157.73 112.83 44.90
2020 22.62 43.39 −20.77 −22.24 128.46 105.77 22.69
2021 15.74 38.90 −23.16 −24.90 138.25 127.64 10.61
2022 56.75 68.18 −11.43 −13.98 147.16 150.04 −2.89
Cebu Pacific operating highlights[51]
Fiscal year Passengers
(million) 		Available seats
(million) 		Load factor
(%) 		RPK
(million) 		ASK
(million)
2008 6.67 8.54 78.10 5,653 7,365
2009 8.76 11.31 77.45 7,056 9,369
2010 10.46 12.26 85.32 8,860 10,379
2011 11.93 13.83 86.26 10,531 12,369
2012 13.26 16.04 82.67 11,533 14,173
2013 14.35 17.52 81.91 12,927 16,207
2014 16.90 20.11 84.04 16,213 20,496
2015 18.38 22.25 82.61 19,872 19,872
2016 19.13 22.25 85.98 21,220 25,989
2017 19.75 23.49 84.08 21,301 26,233
2018 20.28 23.91 84.82 21,736 25,881
2019 22.47 26.01 86.39 24,883 29,298
2020 5.03 6.62 75.98 5,275 7,107
2021 3.41 5.63 60.57 7,107 4,878
2022 14.85 19.72 75.30 11,870 17,288

Destinations

Main article: List of Cebu Pacific destinations

Cebu Pacific currently flies to 36 domestic destinations and 26 international destinations in 16 countries across the Asia Pacific region. The airline has the most extensive domestic route network in the Philippines.

Fleet

For the fleet of subsidiary Cebgo, see Cebgo § Fleet.

Current fleet

As of July 2023, Cebu Pacific operates an all-Airbus fleet composed of the following aircraft:[52][53]

Cebu Pacific fleet
Aircraft In service Orders Passengers[54] Notes
Airbus A320-200 21 — 180 Older aircraft are to be retired.[55][full citation needed]
Airbus A320neo 13 11 188
Airbus A321-200 7 — 230
Airbus A321neo 11 10 236[56] Aircraft in the Airbus Cabin Flex (ACF) configuration.[57]
Airbus A321XLR — 10 TBA Deliveries start in 2024.[58]
Airbus A330-300 1 — 436 To be replaced by Airbus A330-900.[59]
Airbus A330-900 5 11 459 To replace Airbus A330-300.[59]
Total 57 43

The airline previously operated a combined fleet of jet and turboprop aircraft. In 2007, Cebu Pacific ordered six ATR 72-500 turboprop aircraft for its regional domestic flights.[60] The ATR aircraft were transferred to its regional subsidiary Cebgo in 2015.[61] In the same year, Cebu Pacific ceased turboprop operations, while Cebgo ceased jet operations with the return of its last Airbus A320 to its parent company.[62]

As part of the airline's modernization, Cebu Pacific is replacing its existing aircraft with new fuel-efficient aircraft by 2028.[63] In addition, as part of the airline's environment initiatives, Cebu Pacific used sustainable aviation fuel (SAF) on its delivery flights, and tested SAF on a commercial passenger flight from Singapore to Manila on September 28, 2022.[64]

Fleet development

Airbus A320

In 2004, Cebu Pacific signed a purchase agreement with Airbus for the lease of two A320s and the acquisition of twelve A319s to replace its existing fleet of Boeing 757 and McDonnell Douglas DC-9 aircraft.[65] It later ordered seven additional A320s.[66] The A320s supported the airline's expanding international and domestic operations.[67]

Cebu Pacific received its first A320 in 2005, while the airline received its first A320neo in 2019. On June 18, 2019, Cebu Pacific announced an order for an additional five A320neos to replace the older Airbus A320-200.[68]

The A320 fleet currently flies to domestic and international regional destinations in Southeast Asia and East Asia.

Airbus A321

In June 2011, Cebu Pacific signed a memorandum of understanding for 30 Airbus A321neos including nine leased that will help the airline's growth and development. The deal was finalized in August 2011,[69] with deliveries commencing in 2017. However, due to problems with the Pratt & Whitney engines, the deliveries were delayed.[70] Instead, in June of that year, the airline ordered seven A321ceos to meet ongoing strong growth on its domestic and regional network.[71]

The first 230-seater A321ceo was delivered on March 22, 2018.[72] On January 20, 2019, the airline received its first 236-seater A321neo, registered as RP-C4118 and powered with Pratt & Whitney engines.[73] Like the A320, the A321 currently flies to domestic and international destinations.[72]

On June 18, 2019, Cebu Pacific ordered 10 A321XLRs. The airline is one of the few launch carriers of the newly launched long-range narrow-body aircraft.[68][74]

Airbus A330

In 2007, the airline ordered six A330-300s to operate Middle East destinations such as Dubai, East Asia routes such as Hong Kong, Seoul, and Tokyo, and Southeast Asia cities such as Bangkok and Singapore. It will also be used in the domestic sector, namely flights to Cebu, Davao, and General Santos. Cebu Pacific received its first A330-300 on June 15, 2013.[75] In 2016, the carrier then added two more A330s on its orders to complement earlier fleet in operating new long-haul routes, such as Sydney and Melbourne.[76]

On June 18, 2019, Cebu Pacific ordered 16 Airbus A330neos to replace the Airbus A330ceos.[77] The deal was finalized in November 2019.[78] On November 28, 2021, Cebu Pacific received its first 459-seater A330-900, with registration RP-C3900.[79][80]

Former fleet

Cebu Pacific retired fleet
Aircraft Total Introduced Retired Replacement Notes Refs
Airbus A319-100 10 2005 2018 Airbus A321neo Sold to Allegiant Air. [81]
ATR 72-500 6 2008 2015 None Transferred to Cebgo.
Boeing 757-200 3 2000 2006 Airbus A320-200 [65]
McDonnell Douglas DC-9-30 19 1996 2006 Airbus A320-200 [65]

Criticism and controversies

Customer service and punctuality

Cebu Pacific has been criticized for its poor passenger service, alleged overbooking, flight delays and cancellations.[82] For instance, the airline was also criticized for lack of coordination in the aftermath of the runway excursion incident at Francisco Bangoy International Airport in 2013 and the numerous flight cancellations and delays during the December 2014 Christmas peak season.[83]

In January 2018, Cebu Pacific was named as one of the world's least punctual airlines, with an on-time performance of 57.6 percent in 2017 based on data from OAG. Also included in the list from the Philippines is another low-cost airline, Philippines AirAsia, with an on-time performance of 58.0 percent.[84]

The airline was again criticized in 2023 because of its "unsatisfactory" service to passengers,[15] prompting the Senate of the Philippines to begin an investigation on June 21, 2023.[85]

Other controversies

In October 2010, a video uploaded to YouTube showing female flight attendants dancing to Lady Gaga's Just Dance and Katy Perry's California Gurls drew international attention. Despite its popularity, it was criticized by the Flight Attendants and Stewards Association of the Philippines (FASAP), referring it as "sexist and gender-insensitive".[86] That same month, the airline was criticized again for its dancing male crew.[87]

Accidents and incidents

See also

References

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