President’s Hall, Malacañan Palace
July 2, 2024
President Ferdinand R. Marcos Jr. warmly received the top officials of Cebu Pacific, headed by Chairman Lance Gokongwei, in a courtesy call at the President’s Hall in Malacañan Palace.
During the meeting, Cebu Pacific confirmed the landmark order of 152 Airbus aircraft, valued at approximately US$24 billion at list prices. This major investment, the largest in Philippine aviation history, underscores the Airline’s confidence in the nation’s burgeoning economy and strategic growth opportunities.
Mr. Michael Szucs, Chief Executive Officer (CEO) of Cebu Pacific, highlighted the nation’s robust economy fundamentals and favorable demographic trends as key drivers behind the bold move. According to him, the Philippines, with its young, increasingly educated and affluent population is poised for significant growth. Currently at 117 million, the population is projected to reach 125 and 130 million by the end of the decade.
The Airline, which holds over 50% of the domestic market share, is gearing up to meet rising travel demands, both domestically and internationally. Last year marked the highest deployment of overseas Filipino workers (OFWs) in history, with Cebu Pacific capturing 50% of this market. Despite the Philippines having lower average travel rate per capita compared to neighboring countries like Malaysia, Cebu Pacific sees this as a substantial growth opportunity.
They also emphasized infrastructure improvements being pivotal to Cebu Pacific’s expansion plans, such as the ongoing privatization of Ninoy Aquino International Airport (NAIA) and the development of the new Bulacan Airport. These developments are expected to enhance capacity and efficiency, crucial for supporting the anticipated growth in air travel.
Cebu Pacific also raised other concerns, such as the proposed increase in NAIA rates from US$18 to US$38 per passenger, which could affect competitiveness. The Airline, along with other stakeholders, proposed a moderate increase of US$28 to maintain regional competitiveness.
Collaborating with San Miguel Corporation which is set to take over NAIA operations in September 2024, Cebu Pacific seeks to address immediate challenges such as baggage handling and immigration congestion. They also emphasized the need for nationwide infrastructure improvements to support the country’s full economic potential.
Cebu Pacific’s fleet expansion aims to boost connectivity across the Philippines and internationally. By 2035, the Airline plans to operate 200 aircraft, with significant bases in Manila and Bulacan.
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