On March 8, 1996, a little more than a year after the airline industry was liberalized by the government, History.
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1 Profile History On March 8, 1996, a little more than a year after the airline industry was liberalized by the government, Cebu Pacific (CEB), wholly owned by JG Summit Holdings, Inc. (JGSHI), flew for the first time. JGSHI was determined to bring air travel closer to more Filipinos. Cebu Pacific s beginnings in the domestic arena were humble 24 flights daily to and from three destinations. With Lance Y. Gokongwei at the helm, and a handful of professionals experienced in domestic and international aviation arenas, CEB s team ran a tight ship. A little more than 18 months later, CEB greeted its one millionth revenue passenger. Shortly after, the Office of the President of the Philippines designated this young airline as one of the country s national flag carriers, giving CEB the franchise to open five international destinations: Malaysia, Indonesia, Singapore, Thailand and Guam. CEB launched its international operations in November 2001, with flights to Hong Kong. 1
2 Ownership JG Summit Holdings, Inc. is one of the leading companies in the Philippines with business interests in: air transportation, banking, food manufacturing, hotels, petrochemicals, power generation, real estate and property development, and telecommunications. Its companies include Universal Robina Corporation, Robinsons Land Corporation and United Industrial Corporation (Singapore), Digitel Telecommunications Philippines, Inc., JG Summit Petrochemicals Corp., Cebu Pacific Air and Robinsons Savings Bank. Statistics Traffic Passengers carried 2,426,627 2,202,681 3,462,415 5,437,258 6,662,725 RPK (million) 1, , , , ,710.1 ASK (million) 2, , , , ,365.4 Load Factor 67% 63% 75% 81% 78% Employees 1,356 1,182 1,364 1,747 2,086 Number of destinations Fleet Financial Operating Revenue 7, , , , ,682.1 Operating Cost 7, , , , ,954.3 Net Result (86.9) , ,
3 The airline today Cebu Pacific has flown over 36 million passengers since its inception in It currently flies to 32 domestic destinations and 14 key Asian destinations from four hubs: Manila, Clark, Davao and Cebu. The 14 international destinations of CEB are: Hong Kong, Incheon, Busan, Singapore, Macau, Kuala Lumpur, Bangkok, Jakarta, Taipei, Shanghai, Guangzhou, Ho Chi Minh, Kota Kinabalu, and Osaka. CEB flies to the most number of domestic destinations within the Philippines, and the most ASEAN destinations and routes from the Philippines. Destinations % of total traffic No of destinations 2009 Asia 100% Domestic Destinations 14 International Destinations Manila Catarman (Samar) Calbayog (Samar) Cauayan (Isabela) Cebu Bacolod Iloilo Tacloban Tagbilaran (Bohol) Kalibo (Boracay) Roxas Dumaguete Puerto Princesa (Palawan) Davao Zamboanga Cagayan de Oro Butuan Cotabato Dipolog Legaspi Laoag General Santos Clark Caticlan Tuguegarao Naga (Cam Sur) San Jose (Mindoro) Busuanga (Coron) Ozamiz Siargao Surigao Virac Hong Kong Singapore Incheon, Korea Busan, Korea Kuala Lumpur, Malaysia Bangkok, Thailand Jakarta, Indonesia Taipei, Taiwan Shanghai, China Guangzhou, China Macau, China oho Chi Min, Vietnam Kota Kinabalu, Malaysia Osaka, Japan 3
4 Cabin classes Single passenger class Fleet Manufacturer Model In service (2009) On order ( ) Airbus A Airbus ATR Airline affiliates Carrier % of ownership Description A-Plus 49% A+ is a joint venture with the Singapore Airline Engineering Company (SIAEC), the #1 aircraft maintenance provider in Asia. A+ provides line maintenance services and technical ramp equipment handling of CEB's aircraft fleet. SIAEP - 35% SIAEP is another joint venture of CEB with SIAEC, SIA Engineering for the operation of an MRO (Maintenance, Repair (Philippines) Corporation and Overhaul) facility in Clark International Airport. SIAEP provides, among others, A check to D checks for all CEB aircraft and third parties. Future plans CEB expects to take delivery of two more ATR aircraft this year, allowing the airline to open more inter-island routes. By 2014, CEB will have a total of 38 Airbus aircraft and 10 turbo-prop ATRs, the youngest aircraft fleet in the Philippines, and one of the youngest in Asia. With airline operations now based in the new Ninoy Aquino International Airport Terminal 3, CEB continues delivering world-class service that CEB passengers deserve. CEB looks forward to further growing the nation s tourism industry, which in turn can play a significant role in boosting the Philippine economy. 4
5 CEO profile Lance Gokongwei is the only son of John Gokongwei, founder of JG Summit Holdings, Inc., one of the largest conglomerates in the Philippines. Groomed to take over the family empire, he divides his time well between overseeing the airline and other businesses. He is married, with two kids, and has twin degrees in business administration (Wharton) and engineering from the University of Pennsylvania. He graduated Suma Cum Laude for both. CEO contribution to the evolution of the airline Ever since Cebu Pacific was launched in 1996 as a modified low-cost airline, President and CEO Lance Gokongwei was already at the helm. When the airline started, CEB offered snacks and drinks to passengers, and later offered frequent flyer miles, and used mixed fleet of aircraft. But in mid-2004, Gokongwei realized CEB had to stick to the low-cost carrier model. Upon seeing the increasing fuel prices, and fares being matched by the competition, Gokongwei moved quickly. With fleet modernization, new fare structures and the introduction of an online booking system, CEB greatly expanded both its domestic and international network. To make more areas in the Philippines accessible to travellers and to make inter-island connections easier, CEB acquired a sub fleet of ATR s. This aircraft type allows the airline to service destinations with smaller airports that have length and strength limitations. The airline was also the first to introduce several innovations in the Philippine market including Go Lite fares, all-inclusive pricing scheme, prepaid excess baggage, and seat selection, among others. All these turned Cebu Pacific into a phenomenal success, greatly increasing market share locally, and creating a mark in the ASEAN region. CEO statement << We started Cebu Pacific with the vision of making flying more affordable to more Filipinos, and making the country s travel and tourism industry even more dynamic. We are apparently moving in the right direction. Last year, Cebu Pacific flew 6.7 million passengers up 23% from 5.5 million the previous year making us the fastest-growing airline in Asia and the third largest low-cost carrier in the region. This year, we expect to carry close to 9 million passengers. We will continue to expand our route network in the country and in Asia and introduce more product innovations that will benefit the traveling public.>>
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