Shifts to all-inclusive fare format
Cebu Pacific (CEB), the Philippines’ leading domestic
air carrier, is reducing its domestic fares permanently by as much as 32% to
encourage more people to fly amid rising fuel prices.
Candice Iyog, CEB vice president for marketing and product, said the new
lower all-inclusive fares will take effect on June 12, 2008. This includes the
fuel and insurance surcharge, aviation security fee and 12% VAT.
The ‘all-in’ pricing format is introduced with a seat sale across CEB’s
domestic network. The promotional offer will run from June 12 to 17, 2008 and is
valid for travel on July 1 to October 15, 2008. There are more than half a
million seats allocated for this promotion.
‘All-in’ fares for short sectors such as Manila-Legaspi are at P699 one-way
while a one-way Manila-Cebu flight would cost P999 and a Manila-Davao sector
would cost only P1,499 during the seat sale.At seat sale levels, these reduction
represent savings of up to 56% over today’s rate.
Iyog also said CEB is shifting to an ‘all-in’ pricing format so passengers
will immediately know the total amount they need to pay and can easily compare
CEB fares with other modes of transportation including ferries and buses.
After the seat sale, the one-way Manila-Davao would cost P2,499 ‘all-in’
while a one-way Manila-Cebu is sold at P1,499. On the other hand, out of pocket
cost for one-way Manila-Legaspi is P999 one-way.
“We would like to continue domestic tourism’s growth momentum by introducing
reduced all-in fares. We want to assure the public that CEB will do everything
possible to keep air fares down because this is also good for the economy.”
Iyog also added that they are doing this to respond to the public’s desire
for a more transparent and simple communication of fares.
“We really hope that this new move is deemed as a positive change in the
industry and we encourage other airlines to do the same.” Iyog emphasized
CEB has a fleet of ten A319s, eight A320s, and two ATR 72-500 aircraft. The
airline flies to 16 international destinations with the addition of Kota
Kinabalu next month. It will also add Tuguegarao and Naga,in its domestic
network this June and San Jose (Mindoro) in July.