CAPA Analysis: Southeast Asia LCC Fleet To Grow By Only 13% in 2015

Southeast Asia recorded a significant slowdown in LCC growth in 2014 as several airlines adjusted to challenging market conditions. The region’s LCC fleet expanded by 13% aircraft compared to about 20% growth in 2013.

A similar fleet growth rate of approximately 13% is likely in 2015, following further revisions to fleet plans in response to overcapacity, which has impacted most Southeast Asian short-haul markets since 2H2013. AirAsia in particular has slowed expansion and will take only five A320s in 2015 – although rival Lion Group is again not showing any signs of slowing and plans to take about 50 aircraft for the second consecutive year with over half ending up in the dynamic Southeast Asian LCC sector.

Growth rates could pick up again in 2016 or 2017 if market conditions improve. Higher growth rates ultimately will be required for Southeast Asia’s huge LCC order book, which consists of nearly 1,200 aircraft, to remain intact. The potentially huge impact of lower fuel prices could also reshape strategies in 2015, as some LCCs record a 20% reduction in total costs.

Southest Asia’s 21 LCCs ended 2014 with 536 aircraft (includes turboprops, narrowbodies and widebodies), according to the CAPA Fleet Database. This represents growth of about 60 aircraft or 13% compared to the beginning of 2014.

While still double digits there was a significant slowdown compared to 2013, when the fleet grew by about 20%.

Southeast Asia low-cost carriers ranked by fleet size: Jan-2015 vs Jan-2014 and Jan-2013

Rank	Carrier		Country	LCC Group	Fleet at 1-Jan-2015	Fleet at 1-Jan-2014	Fleet at 1-Jan-2013
1	JT	Lion Air	Indonesia	Lion	103	94	91
2	AK	AirAsia	Malaysia	AirAsia	80	72	64
3	5J	Cebu Pacific Air	Philippines	Cebu Pacific	48	48	41
4	FD	Thai AirAsia	Thailand	AirAsia	40	35	27
5	QG	Citilink	Indonesia	(Garuda)	32	24	21
6	IW	Wings Air	Indonesia	Lion	30	27	27
7	QZ	Indonesia AirAsia	Indonesia	AirAsia	29	30	22
8	TR	Tigerair	Singapore	Tigerair	24	25	21
9	DD	Nok Air	Thailand	Nok	24	17	15
10	D7	AirAsia X	Malaysia	AirAsia X	23	18	11
11	OD	Malindo Air	Malaysia	Lion	19	11	0
12	3K	Jetstar Asia*	Vietnam	Jetstar	18	19	18
13	VJ	VietJet Air	Vietnam	VietJet	18	10	5
14	Z2	Zest AirAsia	Philippines	AirAsia#	14	15	15
15	SL	Thai Lion Air	Thailand	Lion	9	2	0
16	TZ	Scoot	Singapore	(Singapore Airlines)	6	6	4
17	BL	Jetstar Pacific	Vietnam	Jetstar	8	5	5
18	DG	Tigerair Philippines	Philippines	Cebu Pacific^	4	5	5
19	Y5	Golden Myanmar Airlines	Myanmar	Golden Myanmar	3	2	0
20	PQ	Philippines AirAsia	Philippines	AirAsia	2	2	2
21	XJ	Thai AirAsia X	Thailand	AirAsia X	2	0	0
N/A	RI	Tigerair Mandala	Indonesia	Tigerair	0	9	5
		TOTAL			536	476	399

Slower 2014 fleet growth driven by adjustments at AirAsia and Tigerair

At the beginning of 2014 the Southeast Asian LCC fleet was poised to grow in 2014 by slightly over 100 aircraft or about 22% to 580 aircraft. But the AirAsia and Tigerair groups made major adjustments in 1H2014, deferring A320 deliveries and subleasing or selling aircraft.

The Tigerair Group fleet in Southeast Asia dropped by 15 aircraft in 2014 as it closed its Indonesian affiliate and sold its Philippine affiliate to Cebu Pacific. As Tigerair suspended expansion in its original home market due to overcapacity in Singapore the aircraft that were overseas became excess and were grounded before eventually being subleased. (Note: Tigerair Australia and Tigerair Taiwan are excluded as this report focuses on the Southeast Asian market.)

The fleet at Cebu Pacific Air, which is the third largest LCC in Southeast Asia, ended flat at 48 aircraft. Cebu Pacific was initially planning to expand its fleet by four aircraft in 2015 but it ended up moving four of its aircraft to its new subsidiary, Tigerair Philippines. The five aircraft that were originally at Tigerair Philippines (which is expected to be rebranded in 2015) were returned to the Tigerair Group.

The AirAsia/AirAsia X fleet in Southeast Asia grew by about 15 aircraft as it deferred seven of the A320 deliveries which were originally slated for 2014. AirAsia was also hoping to sell 12 A320s during 2014 but ultimately was only able to sell one aircraft. (Note: AirAsia India, which began 2014 with three A320s, is also excluded as this report focuses on the Southeast Asian market.)

The Lion Group accounted for 27 or nearly half of the 60 aircraft added to the Southeast Asian LCC fleet in 2014. These figures exclude its full-service subsidiary Batik, which added more aircraft in 2014 than any of Lion Group’s LCC subsidiaries or affiliates, and aircraft placed outside the group by Transportation Partners.

Southeast Asian LCC fleet to grow by 13% in 2015, led by Lion Air

Lion Group carriers will again account for nearly half of the aircraft added to the Southeast Asian LCC fleet in 2015. The Lion Group plans to add about 50 aircraft in 2015 with an estimated 30 aircraft allocated to its four LCCs. The other 20 aircraft are projected to be used to further grow Batik or be leased out by Transportation Partners.

Overall CAPA projects Southeast Asia’s LCC fleet to grow by 13% for the second consecutive year in 2015 to slightly over 600 aircraft. Most of the figures below reflect current fleet plans while the figures for the Lion Group affiliates are estimates based on various sources. These are all net figures, taking into account retirements such as the six 777-200s at Scoot and the two A340-300s and one A330-200 at AirAsia X.

Projected fleet growth for Southeast Asian LCCs in 2015

Rank	Carrier		Country	LCC Group	Projected fleet for 31-Dec-2015	Fleet as of 1-Jan-2015
1	JT	Lion Air	Indonesia	Lion	110	103
2	AK	AirAsia	Malaysia	AirAsia	80	80
3	5J	Cebu Pacific Air	Philippines	Cebu Pacific	52	48
4	FD	Thai AirAsia	Thailand	AirAsia	45	40
5	QG	Citilink	Indonesia	(Garuda)	37	32
6	IW	Wings Air	Indonesia	Lion	33	30
7	QZ	Indonesia AirAsia	Indonesia	AirAsia	29	29
8	OD	Malindo Air	Malaysia	Lion	29	19
9	VJ	VietJet Air	Vietnam	VietJet	28	18
10	DD	Nok Air	Thailand	Nok	28	24
11	TR	Tigerair	Singapore	Tigerair	24	24
12	D7	AirAsia X	Malaysia	AirAsia X	21	23
15	SL	Thai Lion Air	Thailand	Lion	19	9
13	3K	Jetstar Asia	Vietnam	Jetstar	18	18
14	PQ/ Z2	Philippines AirAsia/ Zest AirAsia*	Philippines	AirAsia	14	16
16	BL	Jetstar Pacific	Vietnam	Jetstar	10	8
17	TZ	Scoot	Singapore	(Singapore Airlines)	9	6
18	DG	Tigerair Philippines	Philippines	Cebu Pacific	5	4
19	XJ	Thai AirAsia X	Thailand	AirAsia X	5	2
20	Y5	Golden Myanmar Airlines	Myanmar	Golden Myanmar	3	3
21		Indonesia AirAsia X	Indonesia	AirAsia X	3	0
22		Thai VietJet Air	Thailand	VietJet	3	0
23		NokScoot	Thailand	Nok	3	0
		TOTAL			608	536

The upcoming launch of Indonesia AirAsia X, NokScoot and Thai VietJet will grow the total number of LCCs in Southeast Asia to 24. But the potential merger of Zest AirAsia with Philippines AirAsia (PAA) could reduce the total to 23.

The AirAsia Group launched PAA in 2012 and acquired Zest in early 2013. Zest adopted the AirAsia brand in late 2013 but the two carriers have since been operating separately. The AirAsia Group plans to seek approval in 2015 to remove the Zest brand and combine its two Philippine affiliates.

In 2014 the number of Southeast Asian LCCs stayed flat at 21 as Thai AirAsia X launched but Tigerair Mandala suspended operations. (Note: Indonesia AirAsia X, NokScoot and Thai VietJet all received their first aircraft in late 2014 but these aircraft are not included in the year-end 2014 tally as these carriers have not yet launched scheduled services and have so far only operated charter flights. These initial aircraft will be placed into scheduled services over the next few months and the fleets will subsequently grow as more aircraft are delivered.

The relatively modest fleet growth for 2015 comes after several airlines have again deferred deliveries or suspended expansion. AirAsia is planning to take only five A320s in 2015 after deferring or selling 24 of its original 29 deliveries.

AirAsia X also has deferred two A330-300s, giving it six deliveries. AirAsia X is also returning its two A340-300s and one A330-200 in 2015, resulting in a net gain at the long-haul low-cost group of only three aircraft.

Both of Singapore’s short-haul LCCs, Tigerair and Jetstar Asia, have suspended fleet expansion until at least 2016. Cebu Pacific, Citilink and Nok expansion will be relatively modest – four to five additional aircraft for each carrier.

Lion and VietJet continue to pursue rapid expansion

Only the Lion and VietJet groups for now do not show any signs of slowing down. VietJet plans to add another 10 aircraft in Vietnam and also launch its first joint venture, Thai VietJet, which plans to begin operating scheduled services in Mar-2015.

As CAPA highlighted on 20-Jan-2015, VietJet has already surpassed Tigerair and Jetstar Asia to become the eighth largest LCC in Southeast Asia based on current capacity. VietJet will surpass likely Indonesia AirAsia and potentially Nok in 2015.

Southeast Asia’s top 10 LCCs ranked by seat capacity: 19-Jan-2015 to 25-Jan-2015

Rank	Airline		Total Seats
1	JT	Lion Air*	1,083,194
2	AK	AirAsia	550,260
3	5J	Cebu Pacific Air	366,997
4	FD	Thai AirAsia	338,040
5	QG	Citilink	230,760
6	DD	Nok Air	218,204
7	QZ	Indonesia AirAsia	198,360
8	VJ	VietJet Air	156,060
9	D7	AirAsia X	122,148
10	TR	Tigerair	120,240

AirAsia and Lion will remain by a large margin the largest players in the Southeast Asian LCC market, accounting for over half of the total fleet and over half of the total seat capacity. Both AirAsia and Lion are also now among the largest four LCCs in the world – a remarkable accomplishment given that Southeast Asia only accounts for less than 6% of the global fleet.

AirAsia is still larger than Lion based on capacity and fleet size, but only when considering AirAsia and AirAsia X as one entity (technically they are separate groups although they share a brand, website and distribution network). Also Lion is larger when also counting Batik but for this report Batik is excluded because it is positioned as a full-service carrier and has a separate brand.

Global top 10 LCC groups ranked by seat capacity: 19-Jan-2015 to 25-Jan-2015

Rank	Airline Group	Total Seats
1	Southwest Airlines Co.	3,287,734
2	Ryanair	1,610,280
3	AirAsia/AirAsia X Groups	1,330,774
4	Lion Group	1,243,712
5	Gol	1,160,288
6	EasyJet plc	999,888
7	Jetstar Airways Group	762,646
8	JetBlue Airways	760,878
9	IndiGo	711,720
10	Azul	578,669

Southeast Asian LCC groups fleet size and orders: as of 1-Jan-2015

Rank	Airline Group	number of carriers	number of aircraft	aircraft on order*
1	AirAsia/AirAsia X Groups	7	190	415
2	Lion Group	4	163	549
3	Cebu Pacific Group	2	52	40
4	Citilink (Garuda)	1	32	47
5	Jetstar Group	2	26	0
6	Tigerair Group	1	24	37
7	Nok	1	24	17
8	VietJet	1	18	61
9	Scoot	1	6	20
10	Golden Myanmar	1	3	0
	TOTAL	21	538	1,186

Cebu Pacific Air Marks 100M Trips, 100M Stories, 100M Juans

Cebu Pacific Air marks 100M Trips, 100M Stories, 100M Juans

MANILA, Philippines – Philippines’ Cebu Pacific Air recently flew its 100 millionth passenger, Yelen Bontuyan, from Cebu to Manila, marking a major milestone in its 19-year airline history. As CEB’s 100 millionth guest, Yelen received PHP100,000 as well as 100 tickets to any domestic or international destination, during a special inflight announcement that took the place of the airline’s trademark Fun Games.

The airline celebrated the milestone with the rest of the passengers on her flight, with each being given free round trip tickets to the domestic destination of their choice.

A warm reception greeted Yelen upon arriving in Manila. Cebu Pacific employees, some of whom have been with the airline since its inception, welcomed Yelen, the passenger who will now be forever part of the airline’s history.

Manila-based Yelen shared, “I’ve been going back and forth to Cebu, where many of my relatives are based, since I was very young. For the past 16 years, I fly Cebu Pacific because their airfare is much more affordable than other airlines. With my ticket prize, I really want to visit more places in the Philippines, and visit my relatives more often.”

“Being the 100 millionth passenger is my most memorable travel experience. This is really a blessing for me. It’s a great way to start the year,” she added.

100M Trips, 100M Stories, 100M Juans

Late last year, as Cebu Pacific got ready to reach its 100 millionth milestone, Cebu Pacific provided tickets to 13 Facebook friends, who nominated their loved ones they believed deserving of free flights. Their stories, ranging from a close sibling bond to a mother’s dream destination, were also featured on the Cebu Pacific Air Facebook page (www.facebook.com/CebuPacificAir).

The airline also continues to share the different stories of the people one meets while traveling, via the Juan of a Kind Stories Facebook page (www.facebook.com/JuanOfAKindStories).
From the heartwarming to the humorous, each anecdote captures the similarities and differences of our cultures.

CEB VP for Marketing and Distribution Candice Iyog related, “We started operations in 1996, at a time when air travel was expensive. It will always be a privilege for us to link islands and countries together, contribute to nation-building, and play a role in our passengers’ life stories.”

Cebu Pacific has grown into the Philippines’ largest airline with approximately 90 domestic and international routes, taking more people to farther shores and providing affordable air travel. It now operates the most extensive network within the Philippines, as well as between the Philippines to 28 international destinations, including Australia (Sydney), Brunei, Japan (Nagoya, Tokyo, Osaka), Kingdom of Saudi Arabia (Dammam, Riyadh), and the United Arab Emirates (Dubai).

Ssource: eturbonews.com

Cebu Pacific Receives 30th Brand New Airbus A320

#CEBNews: We’re happy to announce the arrival of our 30th Airbus A320 yesterday, Jan.25. 🙂 http://t.co/55Tko6Q0Z9 pic.twitter.com/n13j4F3zeu

— Cebu Pacific Air (@CebuPacificAir) January 26, 2015

MANILA – Gokongwei-led low cost carrier Cebu Pacific has received a brand new Airbus A320 aircraft, the airline said on Monday.

The airline said the new aircraft, its 30th Airbus A320, arrived at the Ninoy Aquino International Airport (NAIA) on Sunday, January 25.

“The brand-new Airbus A320 is the airline’s eleventh aircraft that comes equipped with Sharklets. Sharklets are 2.4 meter wingtip devices that enable lesser fuel burn and lower emissions,” it said.

Cebu Pacific now operates a fleet of 53 aircraft comprised of 30 Airbus A320, 10 Airbus A319, 5 Airbus A330 and 8 ATR-72 500 aircraft.

The airline, which is currently in a P180-billion refleeting program, is expecting the delivery of 8 more brand-new Airbus A320, 30 Airbus A321neo, and 1 Airbus A330 aircraft until 2021.

The airline was recently fined P52 million by the Civil Aeronautics Board due to delays and cancellations of several flights from December 24 to 26, 2014.

Cebu Pacific chief executive and president Lance Gokongwei has apologized to its passengers affected by the incident.

Source: ABS.CBN NEWS

Cebu Pacific Pays P52.11M Fine

MANILA, Philippines – Cebu Air Inc (Cebu Pacific) of taipan John Gokongwei paid on Thursday, January 29, the P52.11-million ($1.18 million) fine assessed by the Civil Aeronautics Board (CAB).

The fine was imposed on the budget carrier for flight delays and cancellations during the Christmas season.

CAB executive director Carmelo Arcilla confirmed in a text message that Cebu Pacific paid the full amount assessed by the regulator.

“The amount was directly deposited by the CAB in the account of the national treasury in accordance with the rules,” Arcilla added.

Arcilla is referring to the rules mandated by Republic Act 776, otherwise known as the Civil Aeronautics Act of the Philippines.

The regulator, through CAB Resolution No. 4 (BM 01-01-12-2015), slapped the multimillion-peso fine after numerous passengers complained over flight delays and cancellations from December 24 to 26. A total of 10,400 passengers were affected.

The CAB Board decided to impose a P5,000 ($113.37) fine for every affected passenger, but the regulator admitted it has no power to compel the budget airline to reimburse the affected passengers.

CAB implements the Air Passenger Bill of Rights (APBR) that defines and seeks to protect the rights and interests of passengers vis-a-vis the airlines, and address common passenger concerns.

Thus the regulator encouraged the affected passengers to seek compensation themselves for the inconvenience caused them.

Cebu Pacific Air Inc chief Lance Gokongwei said in a congressional hearing on January 21 that he was “profoundly sorry” for failing their passengers during the holidays.

The airline executive stressed that absenteeism was the root of the problem, which Cebu Pacific had earlier cited in their explanation to a government panel investigating the incident.

As it settled the fine, Cebu Pacific officer-in-charge for corporate affairs division Paterno Mantaring Jr said the budget carrier looks forward to “work more closely with our government regulators, to serve the best interests of our valued passengers, and the general public.”

Source: Rappler.com

Penniless, Passport-less Pinay Flies To Seoul

It was virtually a scene plucked out of a movie: A middle-aged, penniless woman leaves her hometown and successfully flies off to distant foreign land without a passport and without paying her airfare.

In the case of Leah Castro Reginio, fact is indeed stranger than fiction.

Reginio, reportedly in her late 30’s and a native of Antique province, flew to Incheon International Airport, one of the largest and busiest airports in the world, from Kalibo International Airport, for free and without any travel documents via Philippine Airlines flight 490 that departed last Thursday afternoon.

All thanks to a sloppy security at one of the airports serving Boracay.

According to unimpeachable sources at the said airport, Reginio breezed through the labyrinth of what was supposed to be a tight airport security cordon from the entrance gate, the immigration and even at the boarding gate manned by airline ground personnel.

The sources exclusively informed Manila Bulletin that while on board the PAL flight bound for Seoul, Reginio was also served with inflight meals just like a regular passenger. While onboard the plane, she even requested the flight attendant to bring her a blanket.

SEOUL SECURITY

But when she landed at the Incheon International Airport, Reginio was seen loitering inside the primary airport serving the Seoul Capital Area. When questioned by Korean airport authorities, the Aklan-native failed to produce a passport or any travel document.

Immediately, she was escorted to board the return flight of PAL to Kalibo.

However, sources said PAL flight officers initially refused to board Reginio back to the Philippines when the latter was endorsed to them by Korean authorities, reportedly arguing that she was not listed in their passenger manifest.

This reportedly prompted the Korean airport officers to review the monitoring cameras which showed Reginio emerging out from PR 490 shortly after it landed in Incheon at around 845 p.m. (Korea time).

On her return flight, Reginio was again provided with inflight meals.

CAAP PROBE

As soon as the plane landed back in Kalibo, Reginio was turned over to Civil Aviation Authority of the Philippines (CAAP) authorities where she was held for questioning.

During investigation, CAAP officials reportedly had a hard time extracting information from Reginio who was merely smiling and not answering a single question.

She subsequently admitted that she was able to enter the Kalibo airport and board the flight for free along with other passengers mostly Korean nationals who just came from their vacation in Boracay.

Boracay is a popular destination for Koreans specially during winter season, which necessitates PAL to fly daily between Kalibo and Incheon.

When asked the number of her children, Reginio’s reply further puzzled the investigators: “I have more than four and a half, but not less than three.”

This prompted the CAAP officials to trace her relatives in Antique who informed them that Reginio is suffering from schizophrenia, a mental disorder often characterized by abnormal social behavior and failure to recognize what is real.

“She was just smiling and laughing while she was being questioned,” an airport source said.

‘I’VE BEEN TO MANY PLACES’

Reginio told investigators that she has been dreaming of traveling to many places. She even claimed she has relatives working abroad.

At one instance, she claimed that she was able to take the “ro-ro” (roll on-roll off) without paying anything and that she was even checked by A ship steward and security.

It was later learned that CAAP released Reginio to a relative following intense questioning but without any charges being filed. This despite the glaring security breach and obvious lapses not just by PAL personnel but more so by airport authorities.

“This does not sit well with the worldwide effort to ensure the safety of airports and airline passengers from potential terrorist act,” the airport source said. “Heads should not only roll but a thorough review of the security procedure should be immediately put forward.”

Meanwhile,two people were not so lucky in their effort to illegally leave the country.

On Sunday, two people posed as employees of a fastfood outlet at the Ninoy Aquino International airport (NAIA) Terminal 3 in a bid to get to Hong Kong.

However, they were caught by airport authorities and are now in the custody of the International Agency Council Against Trafficking.

Source: Manila Bulletin

AirAsia Philippines’ Acquisition of Zest Air Hurdles Senate

MANILA – Southeast Asia’s largest budget carrier is set to consolidate its business in the Philippines after securing approval from the Senate to acquire Zest Airways Inc.

In an interview, Joy Caneba, chief executive of AirAsia Zest, said the Senate Committee on Public Services last December approved the sale of Zest Airways to AirAsia Philippines.

“Our lawyers are currently drafting all the required documents,” Caneba said, adding that the company is also seeking separate approvals from the Civil Aeronautics Board (CAB) and the Securities and Exchange Commission (SEC) for the transfer of ownership.

In February last year, the House Committee on Franchise approved AirAsia Philippines’ acquisition of a controlling interest in Zest Airways.

Under Republic Act No. 9183, any change in the carrier’s ownership has to be approved by Congress.

“We are now awaiting an approval from President Aquino,” Alfredo Yao, owner of Zest Airways, said separately.

Yao will receive a 15 percent interest in AirAsia Philippines plus cash, while Marianne Hontiveros, Michael Romero and Antonio Cojuangco — all part owners of AirAsia Philippines — will get 15 percent each. Malaysia’s AirAsia Group owns 40 percent of AirAsia Philippines.

Caneba said AirAsia Zest would be rebranded to AirAsia once the company secures regulatory approval within the first half of the year.

“I don’t see why we have to be distinct from the group. I want to be part of AirAsia,” she said.

According to the Centre for Asia-Pacific Aviation (CAPA), AirAsia would benefit from a single brand and product across the Philippine market.

Zest Air and AirAsia still face an uphill battle, as Cebu Pacific and Philippine Airlines remain strong competitors, CAPA said.

AirAsia Zest and AirAsia Philippines operate a combined fleet of 18 aircraft servicing domestic destinations such as Kalibo (Boracay), Puerto Princesa (Palawan), Tagbilaran (Bohol), Cebu and Tacloban. Its international destination include China and Korea.

Source: Darwin G. Amojelar, InterAksyon.com

Lucio Tan Willing To Sell 40-60% Stake In PAL

https://i0.wp.com/static.rappler.com/images/lucio-tan-pal-afp-20130720.jpg — Image Source: Rappler.com

Taipan Lucio Tan is still willing to sell anywhere from 40 to 60 percent in flag carrier Philippine Airlines to a strategic partner that would provide the airline with aviation fuel.

This was revealed yesterday night by Tan on the sidelines of the Bangko Sentral ng Pilipinas’ annual Banker’s Night at the BSP compound along Roxas Boulevard.

According to Tan, he is currently in talks with a potential investor that would provide PAL with “oil” and that he is willing to sell “between 40 percent to 60 percent” in PAL.

He indicated that negotiations could possibly be completed this year. He also hinted that the potential investor/partner is from the Middle East.

Tan’s group recently reacquired PAL from Ramon Ang following disagreement over the re-fleeting strategy of the airline.

Jaime Bautista, current president of PAL, admitted this week that PAL is deferring some of the earlier aircraft orders made by Ang.

Likewise, PAL has also decided not to implement the reopening of additional air routes, and instead focus on its high-traffic destinations.

Source: Marianne Go, Philippine Star

NAIA Gets Upgraded Air Traffic Management System

The Civil Aviation Authority of the Philippines (CAAP) has successfully commissioned the upgraded air traffic management (ATM) system at Ninoy Aquino International Airport (NAIA).

Replacing the ageing Eurocat system deployed in 1996, the $3.59m ATM upgrade is capable of managing arriving and departing air traffic from about 250 nautical miles, as well as prevent frequent outages resulting in flights being cancelled or diverted or delayed, mainly during the rainy season.

CASA said in a statement: “The improvement is essential for CAAP because the P13-billion next-generation satellite-based communications, navigation, surveillance/air traffic management (CNS/ATM) project that was signed during the previous administration was delayed and would not be in place until the end of 2016.”

Further, the system would deliver stable and efficient traffic over Philippine airspace until NAIA completely transitions the CNS/ATM project.

Built in collaboration between Thales Australia and Pacific Hemisphere Development, the CNS/ATM technology integrates a computer-based flight data processing system that allows aircraft operators to comply with their scheduled arrival and departure times.

Using CNS/ATM technology, aircraft transponders can communicate with satellite signals, using the transponder transmissions to accurately determine the aircraft location.

The system also enables them to follow their preferred flight profiles with least limitations and without compromising approved safety levels.

Though several nations have adopted the satellite-based CNS/ATM for the last few years, the International Civil Aviation Organisation (ICAO) has given signatory countries such as the Philippines to adopt the next-generation system until 2016.

Cebu Pacific Primer For Delayed or Canceled Flights

Cebu Pacific provides a summary of compensation for flight delays and cancellations:

A) DELAYED BY 3 HOURS:

Rebooking of flights for travel, to the next available flight within 30 days from original departure date; or
Travel Fund (must be redeemed within 90 days from original departure date. Travel date can be beyond 90 days, as available in the CEB website)
Full Refund

Cebu Pacific said it also provides refreshment or meals, free phone calls, text or e-mails, and first aid if necessary.

B) DELAYED BY 6 HOURS:

Passengers will receive a Cebu Pacific travel voucher and may also avail of any of the options below:
Rebooking of flights for travel, to the next available flight within 30 days from original departure date; or
Travel Fund (must be redeemed within 90 days from original departure date. Travel date can be beyond 90 days, as available in the CEB website)
Full Refund

Regarding the travel voucher, Cebu Pacific said if it is a domestic flight, the voucher will be valid for travel to any of Cebu Pacific’s domestic destinations.

If the delayed flight is a short haul international flight, the passenger may opt to redeem it for travel to any short haul Cebu Pacific destination.

C) If the flight is cancelled due to force majeure or causes that are beyond the airline’s control, such as weather, air traffic congestion, war and acts of God, Cebu Pacific said it provides passengers any of these options without additional charges:

Rebooking of flights for travel, to the next available flight within 30 days from original departure date; or
Travel Fund (must be redeemed within 90 days from original departure date. Travel date can be beyond 90 days, as available in the CEB website)
Full Refund

D) If the flight is cancelled due to causes that are within the airline’s control, such as scheduled mandatory aircraft maintenance, extended servicing of aircraft, Cebu Pacific provides passengers any of these options without additional charges:

Rebooking of flights for travel, to the next available flight within 30 days from original departure date; or
Travel Fund (must be redeemed within 90 days from original departure date. Travel date can be beyond 90 days, as available in the CEB website)
Full Refund

Aside from these options, the airline said it also provides meals, hotel accommodations, transfers, as appropriate, for cancellations or delays that are due to causes that are within the airline’s control.

As soon as flights are cancelled, passengers may rebook flights or request for a refund or travel fund by approaching the CEB check-in counter at the airport; or calling CEB’s reservation hotlines +(632)7020-8000; or visiting Cebu Pacific’s ticket offices listed below:

NAIA Terminal 3 Sales Office – Level 3, Departure Hall, NAIA Terminal 3, Andrews Ave., Pasay City
NAIA Terminal 4 Express Ticket Office – Old Domestic Road, Pasay City
Robinsons Galleria – West Lane, Level 1, Ortigas Ave. cor. ADB Ave. Quezon City
Robinsons Place Imus – Level 4, Aguinaldo Highway Imus, Cavite
Robinsons Place Manila – Level 1 Adriatico Wing, Pedro Gil cor. Adriatico St. Ermita Manila
Cebu Airport Ticket Office – Mactan International Airport, Lapu-Lapu, Cebu City
Robinsons Fuente – Fuente Osmeña, Cebu City

Refund processing

Cash refund for passengers who made cash payments at Cebu Pacific ticketing offices or payment centers (i.e. authorized banks, ATM, except BancNet Online), can be provided immediately after validation of the following documents that the passenger should present – CEB Itinerary or ticket; and 2 valid government issued IDs.

If passengers paid for their flights using a credit card, or via BancNet Online, charge back to the credit card account will be initiated by Cebu Pacific, and the credit card provider will process the charge back. The processing time for credit card charge back will depend on the credit card provider.

Source: Cebu Pacific, ABS-CBNnews.com