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  1. Join Date
    Jun 2007
    Posts
    1,160
    #1
    Some low-cost airlines in PH may close, says analyst


    MANILA, Philippines A Sydney-based airline analysis company said Cebu Pacific is the only profitable low-cost carrier operation in the Philippines and that one or more of the other four could close this year.

    Center for Aviation, known as CAPA, said the PAL group will also probably survive.

    That would leave SEAIR, which is allied with Singapore's Tiger Airways, Malaysia's Air Asia and Zest Air possibly on the chopping block.

    CAPA said there are too many planes, forcing the airlines to cut prices too deeply.

    CAPA said that while the PAL group, which is refleeting after a $500 million takeover by San Miguel would probably survive, its outlook is bleak because of a long-haul operation that's hampered by being banned from the US and Europe.

    CAPA said that while PAL is hoping the Philippines gets a Category 1 rating from the US Federal Aviation Authority this year allowing Philippine carriers to fly there it could take longer than that. -- ANC


    http://www.abs-cbnnews.com/business/...e-says-analyst


    akala ko ba 2013 will be a good year for the Philippines?

  2. Join Date
    Oct 2002
    Posts
    17,335
    #2
    I guess that's the case. There is a market for low-cost but you still have to obtain the volume and other regular fare add-ons to keep you moving. Cebu Pac has the volume and business model in place while PAL has the capital to keep it going at this point.

  3. Join Date
    Nov 2010
    Posts
    22,487
    #3
    Or theymay merge to consolidate operation. Or in case of seair, they can have niche operations.

  4. Join Date
    Oct 2002
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    17,335
    #4
    Quote Originally Posted by Ry_Tower View Post
    Or theymay merge to consolidate operation. Or in case of seair, they can have niche operations.
    Which is the case in the banking industry. Mergers are seen to continue to trim off the excess fat (although this will pose SBL problems for conglomerates).

  5. Join Date
    Oct 2011
    Posts
    26,770
    #5
    may airphil naman ang pal.

  6. Join Date
    Nov 2005
    Posts
    39,210
    #6
    Quote Originally Posted by vinj View Post
    I guess that's the case. There is a market for low-cost but you still have to obtain the volume and other regular fare add-ons to keep you moving. Cebu Pac has the volume and business model in place while PAL has the capital to keep it going at this point.
    guess there aren't enough SCs to keep all those budget airlines profitable

    the country needs more SCs


  7. Join Date
    Oct 2002
    Posts
    17,335
    #7
    Quote Originally Posted by uls View Post
    guess there aren't enough SCs to keep all those budget airlines profitable

    the country needs more SCs

    I think that's the problem... Pag budget/piso fare lang kasi bumibili sila SC so walang kita rin si budget airline.

    One thing the budget fares did though was to promote local tourism. Before it was hard for the regular working class pinoy to go to Boracay, Davao, Palawan, Cebu, Bohol but now, they can because of the affordable air fares.

    Seriously, if we want to push the airline industry, it's really tourism on a big scale (international visitors) and encouraging business. Is our government doing that? Maybe on a national level, yes but once it gets down to doing the leg work with the LGU and whatever regulating body... all the red tape, corruption and ineptitude continues to eat things up.

  8. Join Date
    Jul 2003
    Posts
    2,267
    #8
    Quote Originally Posted by vinj View Post
    I think that's the problem... Pag budget/piso fare lang kasi bumibili sila SC so walang kita rin si budget airline.

    One thing the budget fares did though was to promote local tourism. Before it was hard for the regular working class pinoy to go to Boracay, Davao, Palawan, Cebu, Bohol but now, they can because of the affordable air fares.

    Seriously, if we want to push the airline industry, it's really tourism on a big scale (international visitors) and encouraging business. Is our government doing that? Maybe on a national level, yes but once it gets down to doing the leg work with the LGU and whatever regulating body... all the red tape, corruption and ineptitude continues to eat things up.
    which means we have to upgrade our airport, improve the services and make travelling convenient and less of a hassle.

  9. Join Date
    Oct 2002
    Posts
    17,335
    #9
    Quote Originally Posted by fourtheboys96 View Post
    which means we have to upgrade our airport, improve the services and make travelling convenient and less of a hassle.
    That's a definite must. I must say though we are a far cry from the 80s and 90s where airports were cramped with no aircon, and the only airline was PAL. :D

  10. Join Date
    Dec 2005
    Posts
    39,055
    #10
    Have not really used these airlines but their demise would definitely be a step backward.competition is good for us consumers.keeps the industry leaders on their toes all the time.
    17.7K:santas:

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Some low-cost airlines in PH may close, says analyst