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Cebu Pacific domestic outlook brightens as Tigerair Philippines recovers & market share reaches 60%

Analysis

Cebu Pacific is benefiting from a significant improvement in market conditions in the Philippine domestic market. The LCC group has built up a powerful 60% share of the domestic market compared to less than 30% a decade ago.

Cebu's acquisition of Tigerair Philippines has so far proven to be successful as it has been able to quickly turn around the carrier while using the new subsidiary to further grow its domestic market share. Tigerair Philippines should be profitable in 2015 while it starts to contemplate a re-branding to reflect the fact it is 100% owned by Cebu Pacific.

This is the third in a series of analysis reports on the Philippine market. The first two reports looked at the performance and outlook of Cebu Pacific's long-haul operation with a particular focus on the Philippines-Middle East and Philippines-Australia markets. This report examines Cebu Pacific's domestic performance and outlook, including the turnaround at new subsidiary Tigerair Philippines.

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