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Cebu Pacific Air evaluates A350s, 787s & A330neos to support new long haul flights to US west coast

6-Dec-2016

This is Part 4 in a series of analysis reports on the Philippine market.

Cebu Pacific Air has begun evaluating new-generation widebody aircraft with the objective of launching flights to the west coast of the US. The Philippine LCC is studying the A350, 787 and A330neo and plans to issue a formal tender to Airbus and Boeing in 3Q2017.

Cebu Pacific launched its long haul operation in 2013, with A330-300 services to Dubai. It now operates five long haul routes to the Middle East and Australia and also uses its A330 fleet on several short haul routes.

The airline is slated to take its eighth and final A330-300 in 1H2017, completing the first phase of its widebody strategy. Phase two of Cebu Pacific’s long haul strategy has always been to transition to a new longer-range widebody type and launch flights to California, which has the largest Filipino community not already served by Cebu Pacific. With new aircraft technology now available, and rival Philippine Airlines (PAL) pursuing rapid expansion in the US market, it is time for Cebu Pacific to strategically make its move. [2747 words]

Unlock the following content in this report:

Subheadings:

  • Cebu Pacific’s long haul operation has so far focused on the Middle East and Australia
  • US market becomes a possibility for Cebu Pacific
  • New-generation widebody aircraft open up new options for Cebu Pacific
  • Cebu Pacific prepares for new-generation widebody tender in 3Q2017
  • A330neo may have to be ruled out
  • Cebu Pacific not considering Europe at this juncture
  • Philippines-North America fares are already very low
  • Philippines-US market is ripe for more nonstop competition
  • Cebu Pacific also intends to use new widebody fleet on shorter routes
  • Cebu Pacific unlikely to grow A330ceo fleet as focus shifts to new types 

Graphs and data:

  • LCCs new-generation widebody aircraft fleet size and order books: as of 2-Dec-2016
  • Current and planned LCC routes of at least 9,000km
  • Sample return economy class airfares between Los Angeles and Manila, USD: Feb-2017
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