Plane fare costs are prohibitive for most Filipinos, even as industry leaders enjoy relatively high profits. Cebu Pacific profited PHP 962 Million (USD 23M) in the first quarter of this year, while Philippine Airlines’ total revenue is PHP 16 Billion (USD 386M) as of the last quarter of 2011.
By JOHN RIZLE L. SALIGUMBA
Davao Today
DAVAO CITY, Philippines — “I’d love to take a plane ride — if it’s cheap,” remarked Dodong, 17, who sells goldfish outside a public school here. Only one in his poor family was able to take the costly plane ride, and that was his brother who now works in Hawaii as a hotel cleaner.
This was how Dodong reacted to the news that an airline with cheap plane fares has started plying the city’s skies.
Seair, touted as the second longest-running airline in the country, announced its own brand of low-cost flights in the Davao-Manila route. Seair is offering a promo price of PHP 949 (USD 23) for flights booked by July 1 and starts on August 18 from Davao to Manila and vice-versa.
With currently two Airbus A319 jets, two A320 deliveries this month and another A320 by September 2012, Seair offers two flights bound for Manila and Davao daily starting August 18 of this year. The A319 is a 144-seater jet while the A320 is a 180-seater jet.
Currently, there are 16 Davao-Manila flights daily at the Davao International Airport. Regular air fare range costs PHP 8,000-10,000 (USD 187-233) according to travel site choosephils.com. There are now four airlines currently plying Davao skies.
For Dodong, cheap airfare means easier to work abroad. “If you don’t have money, you will remain in Davao forever,” said Dodong, in a jest.
Plane fare costs are prohibitive for most Filipinos, even as industry leaders enjoy relatively high profits. Cebu Pacific profited PHP 962 Million (USD 23M) in the first quarter of this year, while Philippine Airlines’ total revenue is PHP 16 Billion (USD 386M) as of the last quarter of 2011.
The profitability in the airline industry has spurred another company to join in the fray.
Seair was in Davao as part of a seven-city roadshow to announce its biggest network expansion nationwide.
During the press luncheon, Chief Operation Officer Patrick Tan said Seair “had transformed from a leisure airline business model to a low-cost budget airline,” an apparent “change in business model which can enhance passenger experience of short and safe flights from one island destination to another.
Tan said that their brand of low-cost flights offers “the lowest fares with the highest quality and reliability.”
In a press release, the company cited the growth of the Business Process Outsourcing industry in the city which they said will “translate to more travelers coming in and out of the city.”
“Without a doubt, Davao is one major destination that Seair cannot overlook. Cebu and Davao will serve as regional hubs in the future,” the company’s press release said.
Bump-offs
In Thursday’s press luncheon, the company also downplayed problems on delays and bump-offs.
“Delays cannot be completely avoided,” says Tan as this is most dependent on airport runways and parking lots.
Tan also said that they are participating Friday’s public hearing called for the Department of Tourism and the Department of Trade and Industry in Manila to tackle issues related to passenger’s rights.
Transportation Secretary Mar Roxas, in a press conference, said that the public hearing would tackle issues related to bump-offs and overbooking. A bump-off is when a passenger loses his booked seat in the airline because airlines currently practice overbooking.
Passengers have ranted about policies of airlines in the country offering promo fares which are totally non-rebookable and nonrefundable.
Complaints have forced the Civil Aeronautics Board (CAB) to release Economic Regulation 7 last May 21 which suspended the non-rebookability and/or non-refundability as a condition attached to any ticket and overbookings which usually causes passenger bump-offs.
However, Under Resolution No. 44 adopted last June 13, CAB deferred resolutions banning overbooking saying that this is a worldwide airline practice. Industry standard on overbooking is said to be 10 percent but CAB only allowed five percent. CAB would also amend its resolution to suspend non-rebookability and/or non-refundability of promo fares tickets by giving guidelines for passengers. (John Rizle L. Saligumba,davaotoday.com)
World
