Cebu Pacific’s short term and long term growth plans – part two: demand potential and challenges

Premium Analysis

Cebu Pacific's ambitious growth plans are based on the promise of untapped demand both in the Philippines and the immediate region, and also on initiatives that will finally address the country's airport infrastructure limitations.

The airline is already one of the most important LCC players in the Asia-Pacific region, and has become the pace-setter in the Philippine domestic market. It is managing to keep its short term capacity rising, and is now negotiating an order for another 100 narrowbody aircraft.

The demographic trends in the Philippine market point to significant potential for demand to soar, certainly enough to justify Cebu Pacific's planned growth. And Manila's proximity to major population centres elsewhere in the region should also give the airline greater market scope.

Airport improvements at the main Manila hub and regional airports, and the construction of new airports, will mean that infrastructure will no longer constrain capacity growth to the extent that it has in the past.

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