Cebu Pacific (CEB) reiterated its commitment to buy 100 Airbus and Boeing aircraft at the recent Aviation Festival Asia with CEO Mike Szucs vowing to negotiate “the right economic outcome for the Philippines” as the low-cost carrier plays expansion catch post-lockdown.
A Philippine business report last month confirmed CEB was in talks with the manufacturers for orders of up to 150 aircraft valued at some US$18 billion, said to be the biggest order in the country’s aviation history.
According to Szucs, the need for so many aircraft is based on what he described as a “game changer” for the New Manila International Airport (NMIA) in Bulakan municipality, Bulakan province, about 32km north of the capital.
“The price is always important and we need the right deal from Airbus, Boeing and the engine manufacturer,” he opined.
Szucs’s outlook also stems from the country’s 115 million population which continues to “boom, (with a) GDP growth of six per cent every year and untapped potential”.
“The propensity to travel is four times less compared to Malaysia, and within a four-hour flight radius to the Philippines are two billion people,” he explained.
NMIA, also known as Bulacan International Airport, scheduled to start operating in 2027, will be developed in phases, with an initial capacity of 35 million passengers annually, and a target of 100 million passengers per year, once fully completed.
San Miguel Aerocity, a wholly-owned subsidiary of San Miguel Holdings, the infrastructure arm of San Miguel Corporation, holds a concession agreement to develop, construct, operate, and maintain NMIA.
The CEB chief said the privatised facility will be able to offer more slots, as well as improve on facilities and service standards.
CEB’s new fleet will also address the need to cater to the development of regional airports into international gateways like Bohol, according to Szucs, in the next 12 to 18 months.
CEB is said to operate the world’s highest-capacity Airbus A330-900s (A330neo) aircraft with 459 seats, in a single class.
Traveloka data has shown a spike in travel expenditure among Indonesian residents as travel resumes, with Vietnam being the destination that saw the biggest improvement in demand.
Expenditure on international products, ranging from flight tickets and hotels to attractions, has doubled in 2023 over 2022.
Singapore and Japan were most popular among Indonesians, but Vietnam has shown to be a strong contender, noted Traveloka’s CEO, Iko Putera.
“The strong demand to visit Vietnam is because Sapa and Danang are becoming viral on social media – (this shows) that people always look for new experiences and are keen to (discover) new hidden gems,” said Iko.
He added that Vietnam’s affordability was also a key factor, especially as airfares and hotel rates are more affordable than that of other South-east Asian destinations.
Yento Chen, CEO, Destination Tour Indonesia, opined that Vietnam draws Indonesian travellers with its diverse offerings – from both green and snowy landscapes to culture and culinary – without the need to travel long distances.
While tours to Halong Bay, Ho Chi Minh City and Hanoi were popular once, Sapa and Phu Quoc are now winning hearts, particularly for winter breaks, according to Yento.
He added that Vietnam “appeals to incentive groups as well as families and adventure travellers” as the country offers “more experiential travel”, which is highly sought after by Indonesians.
The five-day tour package to Sapa is the most popular at G-Tour, shared tour manager Angelina Samudera, with most bookings being made between December and February during the snow season.
“Sapa is the perfect destination for Indonesians who want to see snow because it is close by, (has) easy access, and (is) visa-free. The price is affordable but the facilities are quite complete,” stated Angelina.
G-Tour has seen a 20 to 30 per cent rise in bookings for Vietnam in 2023, and Angelina hopes to nurture this growth by creating attractive packages combining Hanoi, Halong Bay and Sapa. Setting its target on young travellers seeking adventure, the company is also developing new packages to Danang and its surroundings.