Cebu Pacific's soaring IPO - the biggest ever in the Philippines in dollar terms

Cebu Pacific airlines cabin crew perform a safety demonstration routine during a ceremony inside a trading floor of the stock exchange in Makati's financial district of Manila. PHOTO: REUTERS

 

MANILA - BUDGET airline Cebu Air Inc gained more than 6 per cent in its Philippine stock market debut on Tuesday after raising at least US$539 million (S$698 million) from an initial public offering - the biggest ever for a low cost carrier.

Philippine Stock Exchange Chairman Hans Sicat said he hoped the listing - also the biggest ever in the Philippines in dollar terms - would spur growth in the country's tourism and aviation industries, which still lag behind its Southeast Asian neighbours.

The airline recently made headlines with a YouTube video of flight attendants dancing to music by Lady Gaga to keep passengers from snoozing through in-flight safety demonstration. The attendants danced again on Tuesday on the floor of the stock exchange before trading opened.

Cebu Pacific, as the airline is known, sold 186.6 million shares in its IPO at 125 pesos (S$3.75) each. Some 28 million overallotment shares are also expected to be sold, which will raise the total proceeds.

The shares closed on Tuesday up 6.4 per cent at 133 pesos.

Cebu Pacific President Lance Gokongwei said his company aims to increase the number of passengers from 10.7 million this year to 20 million by 2014 with the delivery of 24 new Airbus aircraft over the next four years.

Airphil Express will add Cebu to Singapore Route in December

Airphil Express, one of the country’s major carriers, gets its route network expansion underway in the addition of CEBU-SINGAPORE-CEBU flight starting December 01, 2010 operated by its 177-seater Airbus A320 aircraft.

The Cebu-Singapore service is scheduled to operate 7x weekly and will depart Cebu at 0800H,arriving  in Singapore at 1135H. Flight from Singapore will then leave at 1225H and arrive in Cebu at 1555H.

Airphil Express continues to expand its regional services by opening new routes, giving the ridding public more options to have convenient and easy air connections to various city points in Asia with its affordable prices. Manila-Singapore-Manila, Airphil Express’ first regional destination will launch its first  flight on October 27, 2010.

Tiger Airways now Flying to Manila via Ninoy Aquino International Airport (NAIA)

Tiger Airways has been awarded rights to serve Manila’s Ninoy Aquino International Airport (NAIA) from Singapore. This is in addition to Tiger’s current 9 weekly flights to Clark’s Diosdado Macapagal International Airport (DMIA).

While both airports serve the metropolis of Manila, NAIA also serves as a major gateway to the rest of the Philippines.

Rosalynn Tay, Managing Director of Tiger Airways Singapore, said, “We are excited to be able to serve Manila in addition to Clark. With these two important destinations, our low, low fares are now more accessible to the whole of the Philippines. We look forward to working closely with TripleStar Travel and Tours, our newly-appointed General Sales Agent for the Philippines.

The new Singapore-Manila route will begin flying on 31 October 2010 with daily flights. An additional 5 flights per week will begin from 1 December 2010*. Seats are on sale now for travel from 31 October 2010 to 31 July 2011. To celebrate the introduction of this new destination, Tiger Airways is offering promotional fares from S$55 plus taxes, from now till 25 August 2010.

Airphil Express Flies to Singapore, Another Option To Fly Home

Airphil Express is testing the Regional Market as it announces its first Regional flight to Singapore on October 27, 2010. It is getting its feet wet, trying to follow the success of Cebu Pacific.

The announcement was timed to take advantage of the coming Christmas season where thousands of Filipinos are expected to go back home to enjoy the holiday.

You can now book a ticket online but they only have one (1) schedule flight per day for now…

Manila - Singapore
Arrival     : MNL 04:40 PM / SIN 08:05 PM
Departure: SIN 08:55 PM / MNL 12:20 AM

Airphil Express, the Philippines' rapidly growing low-cost carrier is thrilled to announce direct flights from Manila to Asia's island state – Singapore!  Mark your calendars for their first regional destination on October 27, 2010! 

Having added the Philippines' largest hubs to its domestic network, Airphil Express now connects its passengers with one of the largest hubs of finance, culture and trade in the region.  "This is a route that will bring you to the microcosm of Asia, a place that more and more people travel to for work and play," said Airphil Express Corporate Communications Manager, Bettina de Vera.   

"Singapore is no better choice for our first regional route and outlays for us, much as the city-state itself does, a gateway into Asia. Adding Singapore to our network certainly represents a major milestone in our growth," she added.

The newly re-launched low cost carrier has rapidly expanded its service domestically with the addition of new Airbus A320 aircraft. When adding services to Singapore, Airphil Express will also celebrate the addition of yet another brand new A320 aircraft setting its sights on further expansion into the regional market.

de Vera added: "We are expanding our network regionally to offer our passengers more options at our affordable prices. That, with our customer-centric focus, will be the theme for our expansion into Asia."

Airphil Express will start selling flights for its Singapore service on August 3rd for as low as Php1,888.

Airphil Express is still the only low cost airline to provide 15kgs FREE baggage allowance.

source: airphilexpress.com

 

I can still remember when Cebu Pacific first entered the Singapore Route on August 31, 2006 (after being suspended in Nov2002-Jan2003 due to SARS). It was such a big gamble and it paid off. They also started with one flight per day and it grew to the current average of 3 flights per day.

With this announcement, there are now 4 budget airlines (Cebu Pacific Air, JetStar, Tiger Airways and AirPhil Express) flying the Singapore-Manila route. Let’s see how it is going to stack up with the competition…..

Comparing Budget Airlines plying the Singapore-Manila route

After 4 months, I once again had the opportunity go back home to complete an unfinished business and a little R&R since I'll have a new title, new employer and bigger but same critical responsibility when I get back.

During midflight I had already consumed the onboard magazine and in order to fight the looming boredom I decided to write a comparison between the two budget Airlines plying the Singapore-Manila route, Cebu Pacific owned by the Gokongwei's and JetStar of Qantas Airlines. I have opted not to include Tiger Airways as I haven't used their service and lands in Diosdado Macapagal International Airport (DMIA) which is located in Subic, Pampanga around 3 hours away from Manila.

This is a personal comparison based on my experience and in no way conclusive and cannot be used to rate both Airlines in general.

*Cebu Pacific*

• Depart at Changi Budget Terminal (Super slow check in and checkout)
• Arrive at NAIA Terminal 3 (better facilities and less human traffic)
• Cheaper seat reservation at S$8 for near exit areas and S$4 regular seat
• 15Kgs check in baggage allowed
• Connecting flights to provincial operation
• Airbus A319 / A320
• Almost always late

*JetStar*

• Depart at Changi Terminal 2
• Arrive at NAIA Terminal 1 (busier)
• Seat reservation at S$20
• Strict only 2 hand carry bags
• 20Kgs check in baggage allowed
• Airbus A319 / A320

I am not sure if this is similar to other airports but Terminal 3 of Ninoy Aquino International is now allowing bottled water/H2O from outside. I was able to bring a 500ml bottled water into to the plane, enough to keep me hydrated during the flight.

 

Update:

As one of the comment pointed out, Cebu Pacific has been doing a good job lately and I agree. We will also add a review of Airphil Express once we tried their service or if somebody has already use it, you are welcome to provide a feedback on how good/bad their service/experience.