scotsfiancee
21st August 2006, 13:37
By Riza T. Olchondra
Inquirer
Last updated 05:06pm (Mla time) 08/21/2006
CEBU Air Incorporated, which flies under the trade name Cebu Pacific, has asked the Civil Aeronautics Board (CAB) for permission to increase its fares for domestic operations by 30 percent, on top of the prospective fuel levy increase it sought recently.
Cebu Pacific is the second-largest airline in the country in terms of fleet, sales and passengers.
The prospective fare hike, if approved, will be imposed on top of the fuel surcharge hike that Cebu Pac recently sought for domestic routes, its primary source of business.
The budget carrier asked for adjustments in six route segments. It wants an additional fuel surcharge of P140 for its Luzon-Mindanao flights (currently P850), P100 for Luzon-Visayas (currently P620), P100 for routes within Luzon (currently P450), P60 within Visayas (currently 400), P60 within Mindanao (currently 550), and P60 for Visayas-Mindanao (currently 550).
"Unlike other airlines that are able to increase the regional surcharges to the level that these can partially subsidize the domestic sector, Cebu Pacific's regional operations only comprise a small part of its operations," Cebu Pacific said in its letter to the CAB.
"The wide array of low fares that are offered by the airline especially in the domestic sector, while stimulating more people to travel, does not leave the airline with a large buffer to accommodate increasingly high fuel prices," the carrier added.
The CAB has responded with an order for the airline to justify its request by presenting "relevant evidence" at a hearing.
Inquirer
Last updated 05:06pm (Mla time) 08/21/2006
CEBU Air Incorporated, which flies under the trade name Cebu Pacific, has asked the Civil Aeronautics Board (CAB) for permission to increase its fares for domestic operations by 30 percent, on top of the prospective fuel levy increase it sought recently.
Cebu Pacific is the second-largest airline in the country in terms of fleet, sales and passengers.
The prospective fare hike, if approved, will be imposed on top of the fuel surcharge hike that Cebu Pac recently sought for domestic routes, its primary source of business.
The budget carrier asked for adjustments in six route segments. It wants an additional fuel surcharge of P140 for its Luzon-Mindanao flights (currently P850), P100 for Luzon-Visayas (currently P620), P100 for routes within Luzon (currently P450), P60 within Visayas (currently 400), P60 within Mindanao (currently 550), and P60 for Visayas-Mindanao (currently 550).
"Unlike other airlines that are able to increase the regional surcharges to the level that these can partially subsidize the domestic sector, Cebu Pacific's regional operations only comprise a small part of its operations," Cebu Pacific said in its letter to the CAB.
"The wide array of low fares that are offered by the airline especially in the domestic sector, while stimulating more people to travel, does not leave the airline with a large buffer to accommodate increasingly high fuel prices," the carrier added.
The CAB has responded with an order for the airline to justify its request by presenting "relevant evidence" at a hearing.