Cebu Pacific targets Chiang Mai with a low-cost strategy

CEBU PACIFIC said it expects its low-cost 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 Thursday.

The airline will operate flights to Chiang Mai three times a week from October 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 began direct flights Manila-Da Nang, with a frequency of three times a week.

“Actually, we were very surprised by the results from Da Nang, and we are actually increasing the frequencies. I think Filipinos are always looking for newer destinations to explore,” Mr. Lao said.

Cebu Pacific now hopes Chiang Mai will produce results similar to Da Nang, he said.

“Every time a low-cost airline like Cebu Pacific comes into the market, we offer lower fares and we can normally stimulate that market. So that is an angle we are looking at,” Mr Lao said.

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

Last year, Cebu Pacific carried over 20 million passengers and operated over 140,000 flights, representing an increase of approximately 41% and 30% respectively from the previous year.

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

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

In addition, the company has agreed to purchase up to 152 Airbus aircraft, expected to be completed in the third quarter. This The aircraft are expected to be delivered from 2028. — AEO Jose