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Cebu Pacific’s new low-cost long-haul operation to initially focus on Middle East & regional routes

Analysis

Cebu Pacific's new low-cost long-haul unit plans to initially focus on Middle Eastern and regional markets as it works towards launching services with 436-seat A330-300s by Jul-2013. Dubai will be the Philippine carrier's first long-haul route and will likely be followed by service to Abu Dhabi, Saudi Arabia and Kuwait in 2014. But Cebu Pacific over the medium to long-term also aims to use its new fleet of A330s to serve Australia and potentially Hawaii.

Cebu Pacific will become Asia's fourth low-cost long-haul carrier, joining Jetstar, AirAsia X and Scoot. But Cebu Pacific is implementing a different strategy with an all-economy product and focus on point-to-point traffic. This reflects the different dynamics of the Philippine market, particularly its large overseas population.

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