Cebu Pacific will continue with its re-fleeting program until February 2007, in a move expected to cut its operating and maintenance costs by 20 percent while increasing its passenger capacity, airline officials said yesterday.

Its general manager, Bong Mojica, said the airline is increasing its aircraft capacity by 36 percent and offering the lowest fare levels to show its commitment to the domestic tourism industry.

"This will definitely help boost local tourism as we would be able to carry more passengers at lower fares," he said.

At a press conference at the Casino Filipino Hotel yesterday, launching the maiden flight of the airline's third brand new Airbus A319 from Manila to Bacolod, marketing director Candice Iyog said that the airline has adopted various strategies that enabled the airline to lower its fare rates, including the fleet simplification program, which drives Cebu Pacific's lower cost base.

It launched last month its year-round "Go" fares, allowing passengers to travel from Bacolod to Manila for only P888 one-way.

With its re-fleeting program, the airline will utilize only Airbus aircrafts by February 2007 to service its 14 domestic destinations, Hongkong and South Korea. By then, it will have a total of 10 A319s and four A320s.

Its current DC9 aircrafts can only accommodate 110 passengers for every flight while an A319 can transport 150 passengers and an A320, 179.

The airline now flies five brand-new aircraft and will bring in another A319 this month. Eight more will be delivered until February 2007.

Iyog said they are also going into increased fleet utilization that drives lower aircraft ownership cost; online distribution, for real-time booking and ticketing; and market stimulation, by increasing passenger capacity.

Responding to peak season demand, the airline will increase its Bacolod to Manila flights from three times daily to four times daily starting Dec. 21.*NLG

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