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Cebu Pacific pursues Clark hub plan

By Riza T. Olchondra
Philippine Daily Inquirer
First Posted 23:44:00 07/27/2008

Filed Under: Air Transport

MANILA, Philippines--Low-cost carrier Cebu Pacific is revising studies on putting up a hub in Clark, in view of the success of the Philippine-Thailand air talks on Thursday.

"We have confirmed that all government approvals for Clark are okay, including Bangkok. That completes the five destinations we wanted to access [from Clark]. We just have to get our own approvals according to available entitlements," Cebu Pacific vice president for marketing and product Candice Iyog said.

Iyog said Cebu Pacific was revisiting its route studies to determine the proper timing for the hub opening.

"Our network guys are studying our numbers again because so much has changed since we first announced [the plan to put up a hub in Clark]. Fuel will be a big factor, because it has doubled since last year. We also have to consider how we can stimulate the market given the present economic climate. We have to rethink our route studies, our pricing, how much load factor we need, things like that," Iyog said.

She also said the transfer of its Manila hub from the Manila Domestic Airport to the Ninoy Aquino International Airport terminal 3 (Naia 3) would not affect Cebu Pacific's plans for Clark.

The budget airline is moving all its Manila-based domestic and international aircraft to Naia 3 on Aug. 1, but Iyog said it has more to do with having room to maximize resources in Manila.

Cebu Pacific's plan to put up a Clark hub was announced as early as 2007 but this was aborted due to lack of entitlements for the Philippines, brought about by the rejection of the applications for flights to Macau, Hong Kong, Singapore and Bangkok.

Taiwan's skies are already open, but Cebu Pacific needed five destinations to operate out of Clark in order to make the hub profitable.

A silver lining appeared when Clark was granted a seat in the Philippine air panel.

Within a year, Clark managed to gain entitlements from European, Mideast, and Asian destinations, including Thailand.



Copyright 2009 Philippine Daily Inquirer. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.



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