 CEBU PACIFIC BACKGROUND

Cebu Air, Inc., operating as Cebu Pacific (PSE: CEB), is a Philippine low-cost airline based at Pasay in
Metro Manila. Founded in 1988, it is Asia's first low-cost airline.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 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)

A McDonnell Douglas DC-9-30 on its final flight to Mactan–Cebu International Airport in 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.[13] 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 11, 2005, Cebu Pacific launched its "Go Fares" promo, reducing its air fares by half to
increase the airline's revenue by twenty percent.[15] Following this, the airline gained a significant
increase in passengers.[16] 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,[18] 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.

Initial expansion (2007–2011)

Cebu Pacific's first Airbus aircraft, an A320-200 (wearing the 2005–2016 livery), as pictured at Hong Kong
International Airport in December 2005.

In November 2007, Cebu Pacific announced Francisco Bangoy International Airport in Davao City as its
third base after Manila and Cebu. It opened on May 8, 2008, with the launching of direct services 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.[22] After launching flights
between Clark and Cebu in 2006,[23] 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.[25]
On November 20, 2008, it started operating direct flights to Japan, starting with Osaka (Kansai),[26]
followed by Tokyo (Narita) and Nagoya in 2014, and Fukuoka in 2015.

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 ₱23.3 billion prior to an exercise of an overallotment
option.[30] By January 2011, the airline flew its 50 millionth passenger from Manila to Beijing.Further
growth and re-branding (2012–2020)

The entry of the Airbus A330 in 2013 coincided with the launching of Cebu Pacific's low-cost, long-haul
international flights.

Cebu Pacific continued its network expansion in the 2010s. On August 2, 2012, the airline opened a base
at Kalibo International Airport and launched direct flights from Kalibo to Davao and Puerto PrincesOn
November 8, it opened Iloilo International Airport as its fifth base, and direct flights were launched from
Iloilo to Hong Kong, General Santos, Singapore, 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.[34] It then started commencing long-haul flights
starting with Dubai on October 7, 2013, followed by Sydney in 2014 and Melbourne in 2018, both in
Australia.

By January 2015, the airline had flown over 100 million passengers. 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.

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, Cebgo, Cebu Pacific's regional subsidiary, launched flights to Basco, Batanes.

COVID-19 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 ₱40.5 billion (US$822 million) 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. In early 2023, Cebu Pacific resumed flights to China as the
country, being an important market for tourism in the Philippines, lifted travel restrictions.

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.

Corporate affairs

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

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 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.[53] 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[edit]

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.