Cebu Pacific

Cebu Pacific
Cebu Air, Inc., operating as Cebu Pacific, is a Philippine low-cost airline based at Pasay in Metro Manila. Founded in 1988, it is Asia's oldest low-cost airline. 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, Clark, Davao, Iloilo, and Kalibo, and a focus city in Zamboanga.
With its low-cost business model and its extensive destination network, 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.
The airline has been criticized for its frequent flight delays and cancellations and unsatisfactory service to the passengers, prompting investigations by the Philippine government.
History
Foundation and growth (1988–2006)
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. 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. 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. On March 1, 2002, it commenced thrice-weekly flights to Seoul. 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.
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. Following this, the airline gained a significant increase in passengers. Cebu Pacific President Lance Gokongwei said that the low fares aim to attract more people to travel by air.
The airline resumed its Manila–Singapore flights on August 31, 2006 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, 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.
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. It later expanded its routes from Clark to Cebu, Davao, Hong Kong, Macau, and Tokyo.
Expansion and re-branding (2007–2020)
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. 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.
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. On November 20, 2008, it launched direct flights from Manila to Osaka, making it the airline's first destination in Japan.
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.
In October 2010, the airline completed an initial public offering of 30.4% of outstanding shares. It raised prior to an exercise of an overallotment option and was the largest IPO made by a low-cost carrier.
In January 2011, Cebu Pacific flew its 50 millionth passenger.
On July 16, 2012, Cebu Pacific announced Iloilo International Airport as its fifth hub, which opened on November 8. Direct flights were launched from Iloilo to Hong Kong, General Santos, Singapore, and Puerto Princesa. On August 2, 2012, it opened a hub in Kalibo and launched direct flights 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. The first long-haul flight commenced to Dubai, United Arab Emirates on October 7, 2013. Cebu Pacific is also applying for rights for a daily service to Auckland, New Zealand. Three Japanese destinations were later added to its network: on March 30, 2014, it launched direct flights to Tokyo and Nagoya, followed by Fukuoka on December 17, 2015.
The airline flew its 100 millionth passenger in January 2015. On June 1, 2015, Cebu Pacific revealed its new logo that represents the colors of the Philippines and also symbolizes as an evolution of a low-cost pioneer. The airline received its first Airbus A320 painted in the new livery on January 22, 2016.
Cebu Pacific opened its seventh hub in Cagayan de Oro (Laguindingan Airport) on October 20, 2017, and launched direct flights to Dumaguete and Caticlan. That same month, it flew its 150 millionth passenger. In 2018, Cebu Pacific launched flights to Basco (Batanes) and Melbourne.
COVID-19 pandemic and subsequent recovery (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, and sent many aircraft to indefinite storage. In 2021, Cebu Pacific raised a total of (US$) to help the airline recover from the pandemic.
As travel demand recovers, it started rehiring retrenched employees in November 2021. By December 2022, the airline operated at 92% of pre-pandemic levels. The airline resumed flights to China in early 2023 as the country, being an important market for tourism in the Philippines, lifted travel restrictions.
In March 2022, Cebu Pacific flew its 200 millionth passenger.
In the first quarter of 2023, Cebu Pacific reported its first profitable quarter, after three consecutive financial years of losses. On April 21, 2023, Cebu Pacific reopened its Pampanga hub at Clark International Airport.
Environmental initiatives
As part of the airline's modernization and environmental initiatives, Cebu Pacific is replacing its existing aircraft with new fuel-efficient aircraft by 2028. In addition, the airline used sustainable aviation fuel (SAF) initially on its delivery flights, before using SAF on a commercial passenger flight from Singapore to Manila on September 28, 2022, using an Airbus A321neo. The airline also signed a five-year agreement with Shell Aviation that would supply 25,000 metric tons of SAF to Cebu Pacific.
On October 19, 2023, Cebu Pacific signed another five-year agreement with Neste, one of the largest producers of sustainable aviation fuel. The airline then completed its second SAF-powered flight on October 25, from Narita International Airport to Manila, also performed by an A321neo.
Corporate affairs
Cebu Pacific is headquarted at the Cebu Pacific Building along Domestic Road in Pasay City. 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.
On May 16, 2016, Cebu Pacific became a founding member of the world's largest low-cost carrier alliance, Value Alliance. 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. 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.
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.
Business highlights
Destinations
Fleet
Current fleet
, Cebu Pacific operates an all-Airbus fleet composed of the following aircraft:
Gallery
Fleet development
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. The ATR aircraft were transferred to its regional subsidiary Cebgo in 2015. 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.
On June 18, 2019, Cebu Pacific announced an order for 31 Airbus aircraft at that year's Paris Air Show, consisting of five A320neos, sixteen A330neos, and ten A321XLRs, in a deal worth US$6.8 billion at list prices. These were ordered as part of its fleet modernization, seeking to replace its older aging fleet with newer, fuel-efficient planes.
To prepare for the anticipated doubling of travel demand in Southeast Asia, the airline is set to order 100 to 150 aircraft—the largest order of any Philippine-based airline—in a deal worth US$12 billion at list prices. The order is expected to be finalized in the first quarter of 2024.
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. It later ordered seven additional A320s. Cebu Pacific received its first A320 in 2005, while the airline received its first A320neo in 2019. The A320s supported the airline's expanding international and domestic operations.
On June 30, 2023, the airline took delivery of its first plane assembled in China — an Airbus A320neo built at Airbus' final assembly line at Tianjin Binhai International Airport.
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, with deliveries commencing in 2017. However, due to problems with the Pratt & Whitney engines, the deliveries were delayed. Instead, in June of that year, the airline ordered seven A321ceos to meet ongoing strong growth on its domestic and regional network.
The first 230-seater A321ceo was delivered on March 22, 2018. On January 20, 2019, the airline received its first 236-seater A321neo, registered as RP-C4118 and powered with Pratt & Whitney engines. It later ordered ten A321XLRs in June of the same year, making Cebu Pacific as one of the few launch customers of the then-newly-launched long-range narrow-body plane.
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. 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. Currently in October 2023, Cebu Pacific is only operating one A330-300 namely RP-C3348 that had its last commercial flight being 5J018 and 5J019 from Manila to Dubai and vice versa.
On November 4, 2019, Cebu Pacific finalized an order of 16 Airbus A330neos to replace the Airbus A330ceos. On November 28, 2021, the airline received its first 459-seater A330-900, with registration RP-C3900.
Former fleet
Gallery
Criticism and controversies
Customer service and punctuality
Cebu Pacific has been criticized for its poor passenger service, alleged overbooking, flight delays and cancellations. 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.
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.
The airline was again criticized in 2023 because of its "unsatisfactory" service to passengers, prompting the Senate of the Philippines to begin an investigation on June 21, 2023.
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". That same month, the airline was criticized again for its dancing male crew.
Accidents and incidents
On February 2, 1998, Cebu Pacific Flight 387, a McDonnell Douglas DC-9-30 flying from Manila to Cagayan de Oro, crashed on the slopes of Mount Sumagaya in Misamis Oriental, killing all 104 people on board during its approach to Lumbia Airport.
On July 28, 2010, Cebu Pacific Flight 509, an ATR 72-500, bounced while landing at Manila after a flight from Tuguegarao Airport. The pilots performed a go-around and discovered that they could not retract the landing gear. The plane made a priority landing on runway 13. The aircraft (RP-C7254) was declared a hull loss.
On June 2, 2013, Cebu Pacific Flight 971, an Airbus A320-200 registered as RP-C3266 and carrying 165 passengers inbound from Manila, ran off the runway at Francisco Bangoy International Airport and investigators have found the cause was likely human error. There were no fatalities, however, the plane was heavily damaged. In 2014, the plane returned to service after six months of repairs and maintenance checks.
On August 4, 2017, Cebu Pacific Flight 570, an Airbus A330-300 registered as RP-C3341, due to a nosegear fault, went off the runway stopping on soft ground while taxiing for departure at Mactan–Cebu International Airport. There were no injuries, however, the aircraft incurred minor damage. The runway was closed until the aircraft was moved back on to a paved surface. It was rated as an Incident by CAAP and is under investigation.
On October 13, 2017, Cebu Pacific Flight 461, an Airbus A320-200 registered as RP-C3237, veered to the side of the runway at Iloilo International Airport. No injuries were reported.
On April 23, 2018, Cebu Pacific Flight 849, an Airbus A320-200 registered as RP-C4105, flew from Manila to Zamboanga with 172 people on board, safely landed on Zamboanga International Airport's runway and was about to turn around at the turning pad at the end of the runway when the flight crew stopped the maneuver due to a nose gear steering fault. The entire airport was closed for about three hours until the aircraft could be moved to the apron.
See also
List of airlines of the Philippines
List of airports in the Philippines
List of companies of the Philippines
List of low-cost airlines
Transportation in the Philippines
References
External links
Official website
Official holidays website
Airlines of the Philippines
Airlines established in 1988
Airlines formerly banned in the European Union
Philippine brands
Low-cost carriers
Companies based in Pasay
Companies listed on the Philippine Stock Exchange
Value Alliance
Philippine companies established in 1988