Mactan-Cebu International Airport
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- Mactan Cebu International Airport
Airport Road, Lapu-Lapu City, Cebu
- Domestic | International
- Airport Type
- 3300m x 45m
- Airlines currently operating to this airport with scheduled services
- Air Busan
Island Transvoyager, Inc.
- Airlines currently operating to this airport via codeshare
- All Nippon Airways
Mactan-Cebu International Airport is the Philippines' second major gateway. It is managed by the GMR-Megawide Cebu Airport Corporation (GMCAC) and is a joint civilian-military facility. Approximately fifteen airlines provide domestic and international services.
Location of Mactan-Cebu International Airport, Philippines
Ground Handlers and Cargo Handlers servicing Mactan-Cebu International Airport
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Fuel & Oil Suppliers servicing Mactan-Cebu International Airport
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The Philippines-UAE market could again see capacity strains in 2016 as Emirates resumes Clark and launches Cebu. Emirates is also adding four weekly flights to Manila, resulting in 79% capacity expansion for the Dubai-based carrier in the Philippine market.
Meanwhile rival Etihad is adding three times weekly Manila flights. There will be 54 weekly flights in the Philippines-UAE market from May-2016 compared to 40 currently and 28 at the end of 2013. The surge in capacity is made possible by a new air services agreement which Philippine airlines unsuccessfully tried to block, fearing it could make their UAE services unviable.
Philippine Airlines is responding to the challenging conditions in the Philippines-UAE market by adding tags to all its Abu Dhabi and Dubai services, hoping new fifth freedom sectors improve the profitability of its UAE operation. Cebu Pacific is opting against using newly awarded rights for additional flights to the UAE until market conditions improve.
Cebu in the Philippines has emerged as one of the fastest-growing airports in Southeast Asia, with passenger growth of 13% through the first 10 months of 2015. Mactan-Cebu International Airport has been boosted by the relaunch of several domestic routes by the Philippine Airlines (PAL) Group, as well as international expansion from PAL, Cebu Pacific and foreign carriers.
The second largest airport in the Philippines is poised for more rapid growth in 2016 as PAL continues to pursue expansion at its second hub, with more new domestic routes and the launch of services to Los Angeles, Cebu’s first long haul route. The Cebu Pacific Group also plans to expand its Cebu base in 2016, with at least two more turboprops.
Mactan-Cebu is well positioned for long-term growth as the airport’s new private owners have begun construction of a new terminal, which will increase annual capacity to 12.5 million annual passengers. The new terminal will enable Cebu to build as a hub for transit traffic, and to benefit further from infrastructure constraints at Manila, which are prompting Philippine carriers to base additional aircraft at secondary cities.
Philippine Airlines (PAL) is further expanding its international operation as it grows its fleet and improves utilisation of its existing widebody aircraft. PAL’s international network will exceed 40 destinations in Jan-2016 compared to only 25 in Jan-2013.
PAL is adding five international destinations over the next two months, including two destinations in the Middle East and three in Australasia. Long haul growth will resume in Mar-2016 with the launch of services from Cebu to Los Angeles, which will be PAL’s first widebody international route from Cebu.
Opportunities to further grow the long haul operation will come in late 2016 as PAL adds two more 777-300ERs. The expected acquisition of a new higher gross weight version of the A350-900 will be used to upgrade New York to non-stops in 2017 and potentially be deployed to upgrade Toronto to non-stop and launch a fourth mainland US destination.
AirAsia’s operation in the Philippines is entering a new phase which the group hopes will lead to profitability in 2016 and eventually an initial public offering. Growth is also expected to resume in 2016, ending a phase of consolidation and fleet reductions.
The AirAsia Zest brand will be retired by the end of 2015 in favour of the Philippines AirAsia brand. AirAsia has already completed the transition to a single operating certificate in the Philippines, following a complicated and costly two years of maintaining two separate affiliates.
AirAsia’s Philippine operation has been highly unprofitable since it was launched in 2012. Turnaround efforts are banking on cost reductions driven by the transition to a single airline and higher yields that will be generated by a more international focused network. The network will be expanded to include several new routes from secondary hubs, in line with a new AirAsia Group strategy to open new unique point to point routes from secondary hubs throughout Southeast Asia.
This is the third in a Sep-2015 series of reports on the AirAsia Group, following CAPA's LCC Airports Congress in Bangkok.
AirAsia is optimistic its Philippine operation has turned the corner after a challenging initial three years. Philippines AirAsia has been highly unprofitable since its 2012 launch while Zest also has remained loss-making since AirAsia acquired a stake in the carrier in 2013.
AirAsia has restructured its Philippine operation over the last year, making several network adjustments while cutting overall capacity and reducing the size of its Philippine-based fleet. Costs have been reduced and unit revenues have improved through a combination of load factor and yield improvements.
But AirAsia still faces challenges in the Philippines market which will have to be overcome for its Philippine operation to become profitable on a sustainable basis and for IPO ambitions to become realistic. AirAsia is planning further expansion at Kalibo, a gateway for the popular tourist island of Boracay where demand has been growing rapidly. The performance of its Kalibo operation could be impacted by the upcoming completion of a runway extension and airport upgrade project at Caticlan, a smaller airport which is much closer to Boracay.
In this second part of our global airport privatisation wrap for 2013, along with CAPA's 2014 outlook, we review activity in Africa, the Middle East, Russia/West Asia, India, China and the rest of Asia. Part One of this report reviewed the situation in Europe, North America and Latin America.
The information presented here is drawn from CAPA's unique Global Airport Investors Database, which is just one component of the new CAPA Airports Data Suite.
2013 was a year when the number of deals at best remained stable, but the number of participants in investment continued to grow, despite some ‘retirements’.