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
- 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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509 total articles
13 total articles
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’.
The Philippines-Japan market is poised to see a huge influx of capacity, driven primarily by expansion from Philippine low-cost carriers. The expansion is made possible by a new air services agreement between the two countries and the lifting of restrictions by Japanese authorities on Philippine carriers.
Cebu Pacific Air, which currently only serves one destination in Japan with three weekly flights, is seeking the biggest expansion with at least 80 additional weekly flights and eight new destinations. AirAsia is planning to enter the Philippines-Japan market with 32 weekly flights while Tigerair is looking to enter with 56 weekly flights.
Philippine Airlines (PAL) and its regional subsidiary PAL Express are seeking to add 63 weekly flights. PAL is currently the market leader with 31 weekly flights to Japan. In the total there are currently only 76 weekly flights between the two countries, a figure which should quickly double and possibly triple depending on how many of the proposed new flights are implemented.
Asian LCCs create new city-pairs, market dominance. Full-service carriers ignore them at their peril
Low-cost carriers have two primary impacts: first they stimulate new traffic and second they divert traffic from full-service counterparts. Some legacy airlines are adamant that LCCs will not impact their existing network and thus do not need to consider any response to LCCs. This is an old world argument often proved wrong; but even if it had merit it would not excuse legacy carriers from ignoring the opportunistic impact of LCCs: creating new growth.
LCCs are the sole or majority operator on 27% of short-haul capacity at Singapore Changi and 60% at Kuala Lumpur. This potential upside is no small sector to ignore.
One final argument from full-service airlines is that their strategy is to have a frequency advantage. But looking at markets like Singapore-Jakarta where LCCs do not account for the majority of capacity, they do account for the majority of frequencies. Asian growth is still in its infancy but for an indicator of the future could look to Europe, where the region's two biggest airlines are LCCs: Ryanair and easyJet. Moreover they are still growing, unlike their legacy counterparts.