Cebu Pacific spending $1B, to employ 2,000 more
13-Jan-2011 Cebu Pacific (PSE: CEBU), the Philippines largest national flag carrier, is spending $1 billion in the next four years on 19 brand-new Airbus aircraft in an international and domestic expansion that will require the hiring of 2,000 more employees.
It will also spend P300 million this year to promote the Philippines abroad.
"Cebu Pacific has already created over 4,300 jobs, 500 of them last year. We have also revived local tourism and have helped generate jobs and opportunities in the provinces," CEB president and CEO Lance Gokongwei said at a speech welcoming the airline's 50-millionth passenger.
The event was attended by President Benigno Aquino III and some members of his Cabinet.
Gokongwei thanked the President for his efforts to promote tourism and build the needed infrastructure. He said CEB shall have invested $1 billion in the first 5 years of President Aquino's term.
He added: "Cebu Pacific's main focus in the next few years will be in rapidly growing our international presence, particularly in creating better linkages between the fast-growing North Asian markets of Korea, Japan and Greater China, and the various resorts and tourist destinations here in the Philippines. This is especially true since the Philippines is the closest tropical destination to our North Asian neighbors."
Last year, CEB flew 10.5 million passengers. This year, it expects that figure to go up to 12 million, of which 10 million would be using the NAIA terminal 3, nearing the terminal's rated capacity of 13 million.
At the rate of its growth, Gokongwei said CEB's next 50 millionth passenger is due in four years' time.
CEB took delivery of 3 Airbus 320s in the past three months, will take delivery of 5 more this year, and will get 16 more from 2012 to 2014.
By the end of 2011, CEB will be operating a fleet of 37 aircraft- with an average age of less than 2.5 years.
Gokongwei said CEB's transfer to NAIA Terminal 3 in 2008 provided the space, convenience, and opportunity for CEB to really grow and serve its passengers.
"We look forward to working with the government in continuing to grow within and improving upon NAIA T3, the only airport terminal that can accommodate CEB's rapid expansion," he said.
CEB, now the country's largest airline and Asia's 3rd largest low-cost carrier, flies over 260 flights daily to 16 international destinations and 33 domestic destinations from its four operational hubs in Manila, Cebu, Clark and Davao.