Cebu Pacific

Cebu Air, Inc. (), operating as Cebu Pacific (stylized in lowercase), is a Philippine low-cost airline based in Pasay, Metro Manila. Founded in 1988, the airline was the first low-cost carrier in Asia and is also the largest airline in the Philippines by fleet size. It offers scheduled flights to both domestic and international destinations. The airline operates flights from five bases in Cebu, Clark, Davao, Iloilo, and its largest base in Manila.

With its low-cost business model and 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 a total of 2.45 million 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 often been criticized for its frequent flight delays and cancellations, some without explanation, as well as alleged poor customer service, prompting investigations by the Philippine government.

History

Foundation and growth (1988–2006)

Cebu Pacific 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. The airline began operations on March 8, 1996, with its first flight from Manila to Cebu. Domestic services began following market deregulation by the Philippine government. The airline was subsequently acquired by JG Summit Holdings, owned at the time by John Gokongwei.

The airline temporarily ceased operations in February 1998 after being grounded by the government following the crash of the crash of Flight 387 that killed 104, 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. Thrice-weekly flights to Seoul commenced on March 1, 2002, followed by Singapore on October 1. 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.

On November 10, 2005, Cebu Pacific launched "Go", a fare discount program that permanently reduced its fares by half. The move was done to increase the airline's revenue by twenty percent. Following this, Cebu Pacific experienced significant passenger growth, hiking up its sales volume by ninety percent. Its president and CEO, Lance Gokongwei, anticipated that with the low fares, air travel would be cheaper than sea travel. He further added that:

The airline resumed its Manila–Singapore flights on August 31, 2006, and launched a direct flight from Cebu to Singapore on October 23. It was the first low-cost airline to serve the Cebu-Singapore-Cebu sector, and competing directly with Singapore Airlines subsidiary SilkAir, the only Philippine carrier serving the route for years until Philippine Airlines resumed direct service in 2017. Cebu Pacific's direct Cebu–Hong Kong flights began on October 2, 2006, making it the Philippine carrier to serve the Cebu-Hong Kong-Cebu route after PAL terminated its direct service and began code-sharing with Cathay Pacific on the route. Manila–Bangkok flights were also launched in the same year.

Initial expansion (2007–2011)

In April 2008, Cebu Pacific launched direct flights to its first two destinations in Vietnam: Hanoi and Ho Chi Minh City.

On May 8, 2008, Cebu Pacific opened Francisco Bangoy International Airport in Davao City as its third hub and launched direct flights from Davao to Singapore, Hong Kong, and Iloilo. In late 2007, Cebu Pacific announced plans to launch non-stop flights to the United States West Coast, Houston, and Chicago by mid-2009.

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. After launching flights between Clark and Cebu in 2006, on November 8, 2008, the airline commenced international flights from Clark to Hong Kong, Macau, Bangkok and Singapore, making Clark its fourth hub.

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. On November 20, 2008, it started operating direct flights to Japan, starting with Osaka.

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, raising prior to an exercise of an overallotment option. By January 2011, the airline flew its 50 millionth passenger from Manila to Beijing.

Further growth and re-branding (2012–2020)

Cebu Pacific continued its network expansion in the 2010s. Continuing its regional expansion, it launched flights to Siem Reap and Xiamen in 2012. Domestically, it opened two local bases in Kalibo and Iloilo. It also expanded its Japanese operations, launching flights to Tokyo and Nagoya in March 2014, followed by Fukuoka in December 2015.

After taking delivery of its first two Airbus A330-300s, Cebu Pacific commenced international long-haul flights on October 7, 2013, to Dubai. Between 2014 and 2015, it launched flights to more destinations in the Middle East, including Kuwait City, Doha, Dammam, and Riyadh. It also launched flights to Sydney—its first destination in Australia—followed by Melbourne in 2018. All Middle Eastern destinations, except Dubai, were terminated in 2017.

On January 8, 2015, the airline flew its 100 millionth passenger. On June 1, 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.

In March 2016, Cebu Pacific launched flights to Guam, making it the first and only destination in the United States. This route was suspended in December 2019, along with Siem Reap.

On October 20, 2017, Cebu Pacific opened Laguindingan Airport as its seventh base. On the same day, it flew its 150 millionth passenger to Cagayan de Oro. In 2018, Cebgo, Cebu Pacific's regional subsidiary, launched flights to Basco, Batanes.

COVID-19 and subsequent recovery (2020–present)

The COVID-19 pandemic significantly impacted the operations of Cebu Pacific in 2020, causing a three-month suspension of operations during the enhanced community quarantine in Luzon and a reduction of its workforce. Due to low passenger demand, the airline laid off 1,300 employees that year, and sent fourteen aircraft to indefinite storage in Alice Springs. In 2021, Cebu Pacific raised a total of ( US$) to help the airline recover from the pandemic.

On March 8, 2021, Cebu Pacific celebrated its twenty-fifth anniversary.

As travel demand recovers, it started rehiring retrenched employees in November 2021. In March 2022, Cebu Pacific flew its 200 millionth passenger from Manila to Cebu. By December 2022, the airline operated at 92% of pre-pandemic levels. That same year, after three consecutive financial years of losses, Cebu Pacific reported its first full-year post-pandemic profit.

In January 2023, Cebu Pacific resumed flights to China, with the exception of Beijing. On April 21, 2023, Cebu Pacific reopened its Pampanga hub at Clark International Airport. On July 16, 2024, it expanded its Bangkok operations by launching thrice-weekly flights to Don Mueang International Airport to complement its twice-daily Suvarnabhumi flights.

On February 28, 2024, Cebu Pacific was awarded the Best Airline award at the Routes Asia Awards 2024 for its "exceptional contributions to airport and destination marketing in the Asia Pacific region". It was also awarded Best Low-Cost Airline Brand and Most Sustainable Low-Cost Airline in the Philippines for 2023 by the World Economic Magazine.

In July 2024, Cebu Pacific shelved its plans to expand its long-haul operations. It then reduced its flights to China due to weak demand amid geopolitical tensions, and likewise terminated flights to Beijing. The airline focused instead on expanding regionally within a five-hour radius, launching flights to secondary cities in Southeast Asia. As part of its regional expansion, it started flying thrice weekly to Da Nang on December 7, 2023, and Chiang Mai on October 29, 2024. It also returned to Kaohsiung after a fifteen-year hiatus in August.

Contiuning its domestic expansion, Cebu Pacific expanded its regional network in Visayas and Mindanao, launching eighteen new inter-island routes from its hubs in Cebu, Davao City, and Iloilo, as well as select flights from Clark. Likewise, new international services from these hubs were either launched or revived: new direct flights from Cebu to Bangkok (Don Mueang) and Osaka began in mid-October, while Davao–Hong Kong services were relaunched in the same month including a new Davao–Bangkok service. It also resumed international flights from Iloilo International Airport after a four-year hiatus.

On December 11, 2024, Cebu Pacific flew its 250 millionth passenger from Singapore to Manila. On January 16, 2025, it launched direct flights to Sapporo.

Corporate affairs

Cebu Pacific is headquartered at the Cebu Pacific Building along Domestic Road in Pasay. 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 travelers 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

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

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.

Aviation Partnership Philippines

In April 2005, Aviation Partnership Philippines (A plus) was initially formed as joint venture of Singapore Airlines Engineering Company and Cebu Pacific to provide line and light maintenance service and started its operation in July of the similar year. In November 2020, Cebu Pacific took over the Aplus.

AirSWIFT

On October 7, 2024 Cebu Pacific announced the acquisition of AirSWIFT for PHP 1.75 billion, approved by ALI Capital Corp and Cebu Pacific's board of directors. Following the acquisition, there are no changes in the flight schedule and services of AirSWIFT .

Currently AirSWIFT operates flight from Manila and Clark to El Nido and from El Nido to other popular tourist sites in the Philippines such as Boracay, Cebu, Coron and Bohol.

1Aviation Groundhandling

On March 2018, Cebu Pacific created the 1Aviation after Manila International Airport Authority (MIAA) did not renew the contract of MIASCOR Ground Handling Corp due to series of luggage theft involving the subsequent staffs. In July 2018, Cebu Pacific sold its 60% shares in 1Aviation Ground Handling Services Corp. to the Philippine Airport Ground Support Solutions, Inc. (PAGSS), a company led by Jefferson G. Cheng.

Business highlights

Environmental initiatives

As part of the airline's modernization and environmental initiatives, Cebu Pacific is replacing its existing aircraft with new fuel-efficient aircraft specifically the Airbus A320neo family by 2028, marketing the initiative as a pathway to "''Experience a'' ''Neo Way to Fly''". 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 November 3, 2022, Cebu Pacific received the Asia Environmental Sustainability Airline/Airline Group of the Year award from the Centre for Asia Pacific Aviation (CAPA) for its green initiative efforts in aviation industry.

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.

On February 15, 2024, Cebu Pacific earned a Gold rating in the 2023 CAPA-Envest Global Airline Sustainability Benchmarking Report for integrating sustainable aviation fuel (SAF) in its operations and its outstanding performance in reducing carbon emissions. In addition to its CAPA Gold rating, CEB improved its S&P Global ESG Score to 41 in 2023 from 38 in 2022, ranking in the 69th percentile among the 63 airlines assessed by the international financial market intelligence provider.

Destinations

Fleet

Current fleet

, Cebu Pacific operates an all-Airbus fleet composed of the following aircraft:

Gallery

File:RP-C4105 (31 Oct 2023).jpg, Airbus A320-200
File:RP-C4131 MCT APP.jpg, Airbus A320neo
File:RP-C4115 (13 Oct 2022).jpg, Airbus A321-200
File:RP-C4127 (3 Sep 2022).jpg, Airbus A321neo
File:20230805 RP-C3901 at SYD 01.jpg, Airbus A330-900

Fleet development

Cebu Pacific initially operated a fleet of Boeing 757-200 and McDonnell Douglas DC-9 aircraft. By March 2006, it phased out its 757s, and on July 26, 2006, retired its last DC-9.

In September 2004, Cebu Pacific signed a purchase agreement with Airbus for the acquisition of twelve A319s and the lease of two A320s to replace its existing fleet of Boeing 757-200 and McDonnell Douglas DC-9 aircraft. It selected the CFM56 for its Airbus aircraft. It took delivery of its first A320-200 in May 2005. The airline went on to order more A320s in the following years, raising its total orders to twenty-two by 2010. The A320s supported the airline's expanding international and domestic operations.

Turboprops were introduced to the fleet in 2007, when Cebu Pacific ordered six ATR 72-500 turboprop aircraft for its regional domestic flights. By 2015, these were transferred to its regional subsidiary Cebgo, with Cebu Pacific operating mainly jet aircraft.

In 2007, the airline ordered six Airbus A330-300s for use on long-haul Middle Eastern destinations such as Dubai as well as high-density regional flights. Cebu Pacific received its first A330-300 on June 15, 2013. In 2016, the carrier ordered two more A330s to complement earlier fleet in operating new long-haul routes, such as Sydney and Melbourne.

In June 2011, Cebu Pacific ordered 30 Airbus A321neos including nine leased; the deal was finalized in August. After initial deliveries in 2017 were delayed due to problems with the Pratt & Whitney PW1100G-JM geared turbofan engines, it ordered seven A321-200s on June 7, 2017. Cebu Pacific took delivery of its first A321ceo on March 22, 2018, followed by its first A321neo on January 20, 2019.

In July 2018, Cebu Pacific leased five Airbus A320neos from Avolon; the first of which was delivered in June 2019.

On June 18, 2019, Cebu Pacific ordered 31 Airbus aircraft at that year's Paris Air Show, consisting of five A320neos, sixteen A330-900s, and ten A321XLRs, in a deal worth US$6.8 billion at list prices. This makes the airline as one of the few launch customers of the long-range narrow-body Airbus A321XLR aircraft. These were ordered as part of its fleet modernization, seeking to replace its older fleet with newer, fuel-efficient aircraft. It took delivery of its first A330neo on November 28, 2021.

On June 30, 2023, the airline took delivery of its first Airbus plane assembled in China — an A320neo built at its final assembly line at Tianjin Binhai International Airport, leased from Clover Aviation Capital.

To prepare for the anticipated doubling of travel demand in Southeast Asia, Cebu Pacific sent requests for proposals to Airbus and Boeing in October 2023 for an order 100 to 150 aircraft. Amid supply chain problems causing delivery delays of Airbus aircraft and the engine problems of Pratt & Whitney, Cebu Pacific considered ordering the Boeing 737 MAX to augment its existing A320 family fleet. Nevertheless, on July 2, 2024, it signed a memorandum of understanding (MoU) with Airbus to purchase up to 152 A320neo family aircraft. Worth US$24 billion at list prices, the order is the largest in Philippine aviation history. Eventually, Cebu Pacific placed 70 firm orders for the A321neo on October 2, leaving the remaining 82 as options.

From January to May 2024, Cebu Pacific damp-leased two A320-200s from Bulgaria Air for use on domestic flights to Cebu and Davao City to offset the grounding of its A320neo family aircraft.

Former fleet

Criticism

Cebu Pacific has been criticized for its poor passenger service, alleged overbooking, as well as flight delays and cancellations without any verifiable reason. 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 which cost the airline a fine.

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.

During the "Super Pass" voucher sale in March 2023, Cebu Pacific was criticized for system glitches that caused transaction errors and additional charges. In the aftermath of these complaints, on April 23, 2023, Senator Nancy Binay filed a resolution for a full inquiry on passengers' complaints on the airline. In the Senate hearing on June 21, Binay compiled over 3,000 complaints against Cebu Pacific, including offloaded passengers, as well as several delayed, cancelled, or rescheduled flights without unclear or no explanations; some of the complainants were allegedly not given compensation for the delays. The airline blamed on supply chain issues and grounded aircraft as a result of the disruptions, and apologized to affected passengers.

In October 2024, Cebu Pacific was criticized for its mishandling of baggage delays caused by technical problems of the baggage handling system at Ninoy Aquino International Airport Terminal 3.

Accidents and incidents

*February 2, 1998: Cebu Pacific Flight 387, a McDonnell Douglas DC-9-30 registered as RP-C1507 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.
*July 18, 2010: Cebu Pacific Flight 509, an ATR 72-500 registered as RP-C7254, 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.
*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. The airline received criticism for its handling of the incident; passengers waited inside the plane for twenty-seven minutes before being evacuated. In 2014, the plane returned to service after six months of repairs and maintenance checks.
*August 4, 2017: Cebu Pacific Flight 570, an Airbus A330-300 registered as RP-C3341, due to a nose gear 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.
*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.
*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 websiteOfficial holidays website

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