Cebu Pacific stated (27-Apr-2011) it remains optimistic about expansion in North Asia, especially with a passenger growth of 28% for its Greater China, Taiwan, Japan and South Korea routes in 1Q2011. The carrier handled 381,513 passengers between North Asia and the Philippines in 1Q2011, compared to 298,485 passengers in 1Q2010. During the quarter, the carrier witnessed passenger growth of 73% in Taiwan, 30% in Japan, 31% in South Korea and 23% in Greater China, compared to the same period last year. The carrier operates 73 weekly services to Greater China, seven weekly services to Taipei, three times weekly to Osaka and 18 times weekly to South Korea. The carrier also plans to launch four times weekly Manila-Busan service on 15-Jun-2011 and has applied to operate to Nagoya and Tokyo in the near future. The carrier also plans to increase flights to Beijing and Guangzhou to accommodate passenger demand. [more]
Cebu Pacific bullish about North Asia expansion following 28% growth in 1Q2011
You may also be interested in the following articles...
Finnair accelerates capacity growth, led by long haul; seeks cost efficiency through fleet & labour
In 2016 Finnair accelerated its rate of capacity growth after a modest return to expansion in 2015, following cuts in 2014. It also experienced a fall in unit revenue (as did most European airlines), most notably in the regions of highest capacity growth, i.e. the long haul markets North America and Asia.
Asia is Finnair's most important long haul market (Japan and China are its two biggest markets by ASKs) and its ranking by seats on routes between European and NE/SE Asia is disproportionate. It has ambitious growth plans in the region and will increase frequencies to Tokyo and Hong Kong this summer. Its long haul network, which will also extend to San Francisco this summer and Goa next winter, is largely founded on connecting traffic via its Helsinki hub.
Finnair's return to capacity growth has coincided with a return to profit, but lower fuel prices were the main driver of its bottom line improvement. Its profit margins remain slim and, beyond the vagaries of fuel price benefits, Finnair aims for more sustainable unit cost cuts. Fleet strategy and labour productivity form a two pronged attack on its cost base.
Finnair and TAP Portugal: their location based long haul niche strategies compared
Both Finnair and TAP are based in peripheral corners of Europe: Finnair in the extreme northeast and TAP in the southwest. Both are based in countries with relatively small populations, but they have developed networks that capitalise on their geographic location to carry connecting traffic from across Europe and elsewhere to long haul destinations in other continents.
TAP's main long haul market is Upper South America (primarily Brazil), but it also has a secondary long haul niche in Africa. Finnair's main long haul market is Northeast Asia, with an additional presence in South and Southeast Asia. Both also operate to the US. On short haul, LCC competition has been a bigger threat to TAP than to Finnair, but cost savings are important to both.
TAP and Finnair have similar traffic volumes, unit costs and average trip lengths. Moreover, both have struggled to generate sustainable profitability. This report compares and contrasts Europe's two leading independent exponents of the location based long haul niche strategy. Both are set to accelerate their long haul growth.