Monday, February 6, 2012

Lower fares boost local air travel

Business Mirror
February 6, 2012
By LENIE LECTURA

DOMESTIC passenger air traffic in 2011 rose to 18.76 million compared to 16.55 million the year before, aided by the aggressive pricing strategies of the airlines, data from the Civil Aeronautics Board (CAB) showed.

CAB Executive Director Carmelo Arcilla said the growth was expected as airlines continued to add seat capacity and flight frequencies. “But their promotional fares did help a lot. It’s a major factor on why this industry is growing,” he said when sought for comment.

Cebu Pacific, the airline unit of conglomerate JG Summit, recorded the most number of passengers at 8,478,007 out of the 10,507,987 seats allocated for the period. This represented a load factor of 81 percent in 2011.

According to Candice Iyog, Cebu Pacific vice president for marketing and distribution, the growth in passenger traffic in 2011 was mainly due to its increased flight frequencies apart from discounted fares it offered.

Cebu Pacific’s passenger traffic was higher than the 7,972,659 it recorded in the same period the year before.

Philippine Airlines (PAL) came in second with 4,312,325 passengers at end-2011, lower than the 5,311,518 million recorded in 2010. A total of 5,786,611 seats were allocated in 2011 as against 6,747,588.

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