Friday, January 22, 2010

Cebu Pacific achieves record market share of more than 41%

Cebu Pacific (CEB), the country's low fare leader, registered a record high domestic market share of more than 41% for the month of June. The market share figure relates to all competitive domestic jet markets and is the highest level ever reported in the more than 10 year history of the airline.

Historically June is a lean travel month but CEB also reported a load factor of more than 79% for the same period carrying 65% more domestic passengers in June 2006 than in June 2005. CEB market share for June 2005 was 31%.

The steady growth in market share and load factor can be attributed to the more aggressive pricing strategy that the airline has adopted, starting with the launch of its 'Go' fares in November 2005. CEB also offered 10 peso and 1 peso promo fares in March 2006. CEB had a further 2 Airbus A319 aircraft join its fleet in June replacing retiring DC9 aircraft. By the end of July CEB will be operating an all Airbus fleet and it will have the youngest fleet in the Philippines and one of the youngest in Asia.

"Cebu Pacific has always been committed to serve the Filipino. Our vision is to make it possible for every Juan to fly by offering the lowest fares possible to wherever Cebu Pacific operates. And now with our brand new, bigger Airbus planes, we will be able to offer more seats at lower fares to the public," Lance Y. Gokongwei, CEB President and CEO said.

He continued, "We are very much encouraged by the growth in traffic since the introduction of 'Go' fares and the various seat sales because we see that domestic tourism can be stimulated even during the lean season. Very importantly this also means that we as a country can develop tourism to become a year-round industry."

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