Cebu Pacific dominates Sydney route

Cebu Pacific, the country’s biggest budget carrier, is keen on expanding its operations to Australia, citing strong volume in the Manila-Sydney route, where existing flying rights are already maximized, a statement on Thursday showed.

Cebu Pacific, which started flying to Australia last Sept. 9, 2014, said that it carried 13,875 passengers more than any other carrier serving the Manila-Sydney route in January 2015. It started with four weekly flights then added a fifth frequency after three months.

The Philippines’s Civil Aeronautics Board is set to hold air talks with Australia on April 28, 2015 with the aim of increasing seat capacity between both countries, executive director Carmelo Arcilla said.

From September to December 2014, Australia’s Bureau of Infrastructure Trade and Regional Economics reported a 42-percent increase in passenger traffic between Sydney and Manila.

Prior to Cebu Pacific’s entry, passenger traffic in the route had been growing at a compound annual growth rate of 8 percent over five years.

Cebu Pacific is fully utilizing its seat entitlements to Australia.

“In the first four months of operations, Cebu Pacific’s low fares and direct, non-stop services significantly stimulated inbound traffic into the Philippines and Australia. We look forward to expanding our services and further growing inbound tourism into our countries,” Alex Reyes, Cebu Pacific long haul division general manager said in the statement.

Cebu Pacific’s 55-strong fleet is comprised of 10 Airbus A319, 31 Airbus A320, six Airbus A330 and eight ATR 72-500 aircraft.

Between 2015 and 2021, Cebu Pacific will take delivery of seven more brand new Airbus A320 and 30 Airbus A321neo aircraft.

It is slated to launch twice weekly direct flights between Manila and Doha, Qatar, starting June 4, 2015.

Air talks with Australia are anticipated given several failed negotiations in recent years with the wealthy country-continent. The Philippines and Australia last held talks in June 2013, with both sides unable to come to an agreement, partly due to so-called “fifth freedom” rights, the CAB had said.

Cebu Pacific early this year sought the CAB’s approval for the reallocation of slots assigned but unused by rival Philippine Airlines, signaling appetite for additional capacity.

PAL entered Australia’s market earlier and the flag carrier now mounts flights to Sydney, Melbourne, Darwin and Brisbane, information on its website showed.