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Assignment 1 - (Globalization and Tourism Industry)

Cebu Pacific Airline and Philippine Airlines were two successful tourism companies in the Philippines. [1] Cebu Pacific is the largest low-cost carrier in the country, offering affordable fares to over 60 destinations through investments in new fuel-efficient aircraft and airport infrastructure upgrades. [2] Philippine Airlines is the country's flag carrier and oldest airline, operating domestic and international flights through a partnership with Etihad that improved its financial outlook and allowed for fleet and network expansion. Both airlines have expanded air travel access across the Philippines and broader region, contributing to tourism industry growth.

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103 views

Assignment 1 - (Globalization and Tourism Industry)

Cebu Pacific Airline and Philippine Airlines were two successful tourism companies in the Philippines. [1] Cebu Pacific is the largest low-cost carrier in the country, offering affordable fares to over 60 destinations through investments in new fuel-efficient aircraft and airport infrastructure upgrades. [2] Philippine Airlines is the country's flag carrier and oldest airline, operating domestic and international flights through a partnership with Etihad that improved its financial outlook and allowed for fleet and network expansion. Both airlines have expanded air travel access across the Philippines and broader region, contributing to tourism industry growth.

Uploaded by

Mharifie Liwan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Unit 1: Assignment 1 (Globalization and Tourism Industry)

Search for at least 2 tourism companies in the Philippines that were successful globally. Write a
brief description of the company and identify what made them successful. Cite your
sources/references. 

Cebu Pacific Airline

Brief Description:
Cebu Pacific Airline is also known as CEB. CEB is the largest carrier in the Philippine
air transportation industry, offering low-cost services to more destinations and routes with higher
flight frequency within the Philippines than any other airline. The Cebu Pacific Group is a
Filipino airline group headquartered in Manila. Cebu Pacific has been operating now for 21
years; the airline is the second largest in the Philippines. This domestic success is helping Cebu
Pacific to achieve record results and profits for the last fiscal year. While the airline has been
able to attract a profusion of new customers, they also greatly benefitted from lower oil prices.
The group aims to create the largest budget airline network between Asia and the Philippines.
Controlled by the Gokongwei family's JG Summit Holdings, Cebu Pacific Group owns 100%
of Cebgo. Operating flights to over 60 domestic and international destinations across 14
countries, including Australia, China, Japan, Singapore and the United Arab Emirates. The
preferred and dominant air cargo carrier in the Philippines, providing competitive, fast, and
straightforward air cargo services to an extensive network, for individual shippers and cargo
agents.

What made them successful:


 Cebu Pacific plans to invest most of its profits into purchasing new aircraft with
improved fuel efficiency. 
 The addition of more aircraft to its fleet will allow the airline to sell even more
competitive airfares to customers.
 The first part of the strategy involves working around the Philippines limited
infrastructure for aviation. This will be done by upgrading Cebu Pacific’s current
operations at Manila so larger aircraft can be utilized.
 Five additional hubs will also be added by upgrading airports around Manila so that they
can continue to connect the nation both domestically and internationally.
 $4 billion will also be invested by the airline as part of a fleet upgrading program. 32
Airbus A321neos have been ordered because they offer 60 more seats than the Airbus
A320 which makes up the majority of Cebu Pacific’s fleet.
 The airline has one of the most extensive connectivity in Philippines. It connects 38
domestic destinations and 29 international destinations and altogether 15 different
Asian countries.
 All the aircraft of Cebu Pacific have only one class and that is Economy.  Services
available in flights are a magazine called ‘Smile’ and wireless entertainment system.
 Cebu Pacific started to pursue rapid expansion in 2005 and has since increased its
passenger traffic tenfold – from 2 million in 2005 to 20 million in 2017.
  Cebu Pacific has outperformed PAL in virtually every metric for the last decade and has
become one of the strongest airlines in Asia. 
 Cebu Pacific has limited its risk by not following other Southeast Asian LCCs in
establishing overseas JVs and placing large aircraft orders. Its strategy may seem overly
conservative, but has been very successful – and profitable – as Cebu Pacific has cashed
in on its dominant and first mover position in the fast expanding Philippines market. 

Philippine Airline
Brief Description:
Philippine Airlines, also known as PAL, is the Filipino flag carrier. The company started
their operations in February 1941, which makes PAL the oldest and longest-serving airline in
south-east Asia. As of March 2019, PAL operates to/from 41 domestic airports and 58
international destinations. With hubs at Ninoy Aquino International Airport and Mactan–Cebu
International Airport, PAL uses a fleet of narrow and wide-body Airbus, Boeing and Bombardier
aircraft to operate a network of services within the Philippines as well throughout the Asia
Pacific, the Middle East, North America and Europe. Philippine Airlines is today a private
company owned by PAL Holdings, one of the largest Filipino conglomerates. Mr. Jaime
Bautista is the current company President and COO.

What made them successful:


 Philippine Airlines (PAL) continues to look for a strategic investor to support turnaround
efforts and further international expansion.
 A new partnership with Etihad will improve PAL’s outlook.
 PAL has since embarked on major fleet renewal and international expansion.
 Domestically PAL has significantly reduced its presence and handed most routes to PAL
Express, which San Miguel has converted from an LCC (formerly known
as AirPhil Express) into a full-service regional carrier.
 In 1Q2014 the group recorded a 22% increase in international passenger traffic to 1.27
million passengers, according to Philippine CAB data. This includes 1.23 million
passengers at PAL and about 37,000 passengers at PAL Express.
References:

Cebu Pacific Group Airline Group Profile. (n.a). Retrieved from


https://centreforaviation.com/data/profiles/airline-groups/cebu-pacific-group
Cebu Pacific Air SWOT: Asia’s first LCC, Philippine’s market leader. (24, August 2018).
Retrieved from https://centreforaviation.com/analysis/reports/cebu-pacific-air-swotasias-
first-lcc-philippines-market-leader-432925
Cebu Pacific Air. (n.a). Retrieved from https://www.cebupacificair.com/about
Kontoravdis, M. (3, April 2017). Cebu Pacific Pushes Toward Continued Success in the
Philippines. Retrieved from https://airlinegeeks.com/2017/04/03/cebu-pacific-setting-up-
for-continued-domestic-success-in-the-philippines/
Overview Cebu Pacific Air. (n.a). Retrieved from
https://www.routesonline.com/airlines/3256/cebu-pacific-air/
Philippine Airlines Airline Profile. (n.a). Retrieved from
https://centreforaviation.com/data/profiles/airlines/philippine-airlines-pr
Philippine Airlines seeks a strategic investor as its international expansion continues. (10, July
2014). Retrieved from https://centreforaviation.com/analysis/reports/philippine-airlines-
seeks-a-strategic-investor-as-its-international-expansion-continues-176892
Philippine Airlines. (n.a). Retrieved from https://www.gsair.it/en/customers/philippine-
airlines.html
The Cebu Pacific Airlines- The Most Popular in Philippines. (2019). Retrieved from
https://www.cleartrip.com/collections/cebu-pacific-airlines-popular-philippines/

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