Cebu Pacific targets Chiang Mai with low-cost strategy

Cebu Pacific targets Chiang Mai with low-cost strategy

CEBU PACIFIC said it expects its low-cost pricing strategy to generate a similar market response for Chiang Mai, Thailand, as it did with its Da Nang route in Vietnam.

The budget carrier will be the only airline offering direct flights from Manila to Chiang Mai, Cebu Pacific President and Chief Commercial Officer Alexander G. Lao said during a briefing on Thursday.

The airline will begin operating flights to Chiang Mai three times a week starting Oct. 29.

“We share the anticipation of many Filipino travelers as we prepare to launch the only direct flights between Manila and Chiang Mai,” Mr. Lao said.

In 2023, Cebu Pacific started operating direct Manila-Da Nang flights, with a frequency of three times a week.

“In fact, we were very surprised with the results of Da Nang, and we are actually looking to increase frequencies. I think Filipinos are always looking for newer destinations to explore,” Mr. Lao said.

Cebu Pacific is now hoping that Chiang Mai will yield results similar to those of Da Nang, he said.

“Whenever a low-cost carrier like Cebu Pacific comes in, we offer lower fares, we’re able to stimulate that market normally. So that’s one angle that we look at,” Mr. Lao said.

For the year, the company has initially set a target of 24 million passengers, significantly higher than its 2023 passenger volume.

Last year, Cebu Pacific flew over 20 million passengers and operated more than 140,000 flights, representing increases of about 41% and 30%, respectively, from the previous year.

“With the new routes and destinations, and also more importantly, more available aircraft that are going to be available in the fourth quarter of this year,” he said.

For 2024, Cebu Pacific expects to receive 17 aircraft, six of which have already arrived at Ninoy Aquino International Airport.

Additionally, the company has agreed to purchase up to 152 Airbus aircraft, with the finalization expected by the third quarter. These aircraft are scheduled to be delivered starting in 2028. — A.E.O. Jose