CEB outpaces competition in Manila-Sydney route Airbus seeks China goodwill with first wide-body factory site abroad

The Philippines’ leading airline, Cebu Pacific (PSE: CEB) reported the highest passenger market share on flights between Manila and Sydney, outperforming key competitors servicing the route. Cebu Pacific is the only low-cost carrier with a direct connection between Manila and Sydney, Australia.

Based on data from Australia’s Bureau of Infrastructure, Transport and Regional Economics (BITRE), Cebu Pacific captured 44% passenger market share of the Manila-Sydney route during the first five months of 2017. The report also highlighted that Cebu Pacific carried a total of 14,039 passengers, up 33% year-on-year.

For the entire month of May 2017, a total of 32,017 passengers flew between Manila and Sydney, 11% higher versus May 2016. This brings the total passenger volume to 175,782, up 12% year-on-year.

Meanwhile, CEB’s cargo volume grew 88% between Manila and Sydney, from 505 tons to 950 tons in May 2017 alone, with Cebu Pacific’s cargo services tripling, from 142 tons in May 2016 to 413 tons in May 2017.

From January to May 2017, total freight carried reached 4,064 tons; up 54% from the 2,633 tons carried in the same period in 2016, consistent with increasing bilateral trade and investment relationship between the Philippines and Australia. Cebu Pacific captured the bulk of this growth volume, with 43% cargo market share in May 2017 alone, and 46% from January to May 2017.

“The statistics shared by Australia BITRE reflects our commitment to offer the Australian market great value, through efficient and safe travel between Sydney and Manila, at yearround lowest fares. We’re thrilled to see steady results as this maintains our position as the key player on the Sydney-Manila route,” said Candice Iyog, Vice President for Marketing and Distribution of Cebu Pacific.

“Australia is one of our strongest international performers and we continue to see enormous growth and opportunities in the region. Our increased frequency will allow us to continue to offer Aussie travellers competitive year-round fares, driving tourism to the Philippines,” added Iyog.

CEB recently announced increased flight frequency between Manila and Sydney — from its current five times weekly to daily operations beginning December 1, 2017 to January 31, 2018. CEB also offers the most number of seats between Manila and Sydney, Australia.

Airbus SE is courting China with its first wide-body jet facility outside Europe, positioning the company to chase billions of dollars in potential orders from an aviation market that’s set to become the world’s biggest within a decade.

On Wednesday, Chief Operating Officer Fabrice Bregier inaugurated the $200-million completion center in Tianjin, a site designed to give finishing touches such as painting and cabin installation to A330 aircraft. The city, near Beijing, is already home to an assembly plant that produces single-aisle A319s and A320s.

“There’s a direct connection between your investment, your capabilities to demonstrate that you care about the Chinese industry and at the same time your market access,” Bregier told Tom Mackenzie in a Bloomberg Television in Tianjin on Wednesday. To prove his point, he said the planemaker’s market share has risen to almost 50 percent from 20 percent since their investment in the narrow-body assembly plant.

In a race to earn Chinese goodwill, Airbus and Boeing Co. are moving parts of their manufacturing and supply chains to a country the US company estimates will need $1.1 trillion of aircraft over two decades and where the government still makes key purchasing decisions. For China, which has its own aviation ambitions, the A330 center is a coup of sorts in its chase to build its own commercial planes.

The Toulouse, France-based maker may even look at adding A350s to its China plan in the future, Bregier said. As