Business Firm Analysis

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I.

EXECUTIVE SUMMARY

This Business Firm Analysis is the way to have more


ideas about the company of Cebu Pacific, determine their
strengths, weaknesses, threats and opportunities. And
also how did their company started and became
successful.

This analysis tackled about:

1. Company Profile
2. Working Environment Analysis
3. SWOT Analysis

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II. COMPANY PROFILE

A. COMPANY LOGO MEANING

Cebu Pacific Air has unveiled a new logo, which it says


symbolises the airline's growth and evolution from a low-
cost pioneer to its larger operations today.
The airline says its new blue and green logo is inspired
by Philippines' land, sea, sky and sun.

Source: https://www.flightglobal.com/news/articles/picture-cebu-pacific-
unveils-new-logo-413034/

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B. COMPANY DESCRIPTION
About Cebu Pacific
Why Everyone Flies
Cebu Pacific Air (PSE: CEB) entered the aviation industry on March 1996 and
pioneered the “low fare, great value” strategy. We have since then flown over
150 million passengers and counting.
CEB is the largest carrier in the Philippine air transportation industry, offering low-cost
services to more destinations and routes with higher flight frequency within the
Philippines than any other airline. CEB currently offers flights to 37 Philippine and 26
international destinations, spanning Asia, Australia, the Middle East, and USA.
CEB operates a 66-strong fleet of 48 Airbus (4 A321ceo, 36 A320 and 8 A330)
and 18 ATR (8 ATR 72-500 and 10 ATR 72-600) aircraft, one of the most modern
aircraft fleets in the world. Between 2018 and 2022, Cebu Pacific will take delivery of 3
Airbus A321ceo, 32 Airbus A321neo, and 6 ATR 72-600 aircraft orders. It began long-
haul services in the 3rd quarter of 2013.
CEB is also the preferred and dominant air cargo carrier in the Philippines. We provide
competitive, fast, flexible and straightforward air cargo services to an extensive network,
for individual shippers and cargo agents.
Our guests have also learned to anticipate a uniquely upbeat flying experience with
CEB, as we are the only carrier offering fun in the skies with our “Fun Games” on board.

Cebu Pacific and Tigerair Singapore


Creating the largest low cost network to and from the Philippines
Cebu Pacific (PSE: CEB), the Philippines’ largest carrier entered into an alliance with
Tiger Air (SGX: J7X.SI), Singapore’s largest low-cost carrier. The alliance allows both
airlines to leverage on each other’s extensive route networks, flight frequencies and
customer service, providing customers an even wider range of travel options at the
lowest fares possible. Interline arrangements will enable direct and one-stop access to
the combined networks, at low fares.

Cebu Pacific currently offers flights to 37 Philippine and 26 international destinations,


spanning Asia, Australia, the Middle East, and USA. Tigerair operates flights to 39
destinations in 12 countries including Greater China, India, Myanmar, Bangladesh, and
the Maldives. As part of the strategic alliance between the CEB Group and Tigerair
Singapore, Tigerair Philippines, now renamed as Cebgo, joins CEB for a wider network.
Tigerair Singapore and Cebgo flights may be booked through the CEB website,
reservation hotline, and other sales channels.

Source: https://cebupacificaircorporate.com/Pages/company-info.aspx

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C. VISION/MISSION/GOALS

Our Mission
"Why everyone flies."
Cebu Pacific brings people together through safe,
affordable, reliable, and fun-filled air travel.
We are committed to innovation and excellence in
everything we do.
We are an employer of choice providing opportunities for
professional and personal growth.
We have a deep sense of family values throughout our
airline.
We enhance the quality of life of the communities we
serve and are an active partner in our nation's progress.
We offer our shareholders a fair return on their
investments..

Our Vision
Cebu Pacific: The most successful low-cost carrier in the
world

Source: https://cebupacificaircorporate.com/Pages/mission-and-vision.aspx

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D. PRODUCT/SERVICES

CEB X
The fastest and most effective way to get your URGENT or RUSH cargo to its destination.
CEB X requires confirmation from the CEB Cargo office and is on a first-come, first-served
basis. Cargoes are accepted only up to two (2) hours prior to the published schedule of flight
departure.

Blocked Space Arrangement


This service is offered to cargo customers who require a fixed and guaranteed space with
CEB Cargo. For a guaranteed space allocation on selected flight, we negotiate rates on a per
requirement basis. Cargoes are accepted only up to two (2) hours prior to the published
schedule of flight departure.

ATR Charter
CEB Cargo offers chartered services using the ATR72-500 aircraft. It has an a verage capaciity
of 5,500kg loose cargo with a maximum gross weight of 50kg per piece.

Transshipments
CEB Cargo provides efficient and seamless inter-island connections via Cebu Pacific's four
major hubs: Manila, Cebu, Clark and Davao. Move your cargo shipments to onward destinations
that have no direct flights from the point of origin.

Cargo Interline
CEB Cargo has interline partners for cargo to and from Europe, Africa and the Americas. Send
your cargo through our 15 interline partners listed here.

Packaging Services
Protect shipments from getting wet or damaged for all flights from Manila to destinations in
Luzon, Visayas and Mindanao. Offerings are:
Plastic jack wrap services
Plastic sheets
Bubble wrap
Styro boxes

Source: https://www.cebupacificair.com/cargo/products-and-services

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E. OPERATION (Offices/Location/Stores)
HEADQUARTERS

Procurement
Address:
2F Cebu Pacific Building
Domestic Road, Barangay 191, Zone 20,
Pasay City 1301 Philippines
Contact Number:
+63 02 802 7000

Media Contact
Media Inquiries
[email protected]
Customers who need assistance with their travel
arrangements or who wish to share feedback about Cebu
Pacific should click here.

Additional contact information:


For Advertising inquiries and proposals
[email protected]
For Marketing promotions and sponsorships
[email protected]

Source: https://cebupacificaircorporate.com/Pages/contact-us.aspx

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F. BRIEF HISTORY/FOUNDERS
History of Cebu Pacific Air
In late August, 1988, Cebu Air was established in Pasay City, Metro Manila, the Philippines, but
it only started operations almost 8 years later, in early March, 1996.
In February 1998, Cebu Pacific Air was grounded by the government, but continued its services
next month, after the re-certification of its aircraft.
In late November, 2001, Cebu Pacific Air started operating international flights with a twice-daily
service to Hong-Kong.
On the 1st of March, 2002, Cebu Pacific Air introduced thrice-weekly flights to Seoul.
In the following years, Cebu Pacific Air continued to introduce new routes and increase flight
frequency for some of the existing ones.
In late May, 2008, Cebu Pacific was named as the world’s number one airline in terms of
growth, ranking fifth in Asia for Budget Airline passengers transported and 23rd in the world.
On July 22, 2008, Cebu Pacific became the first airline to use the new Terminal 3 of the Ninoy
Aquino International Airport and the first airline to operate international commercial flights from
the new terminal.
In August, 2009, Cebu Pacific opened its Twitter account, being the first airline in the Philippines
to use social media.
In January 2010, Cebu Pacific gained an International Organization for Standardization (ISO)
9001:2008 Certificate, an upgrade of CEB’s ISO 9001:2000 Certificate obtained in February
2003. The new certificate guarantees that Cebu Pacific Air has consistent business procedures
covering all key processes in the airline, including adequate records for all transactions,
effective monitoring processes and mechanisms for continuous improvement.
In April 2010, Cebu Pacific disappointed with the European Union’s decision to blacklist all
Philippine airlines from flying to the EU, based on the International Civil Aviation Organization
(ICAO) Significant Safety Concern from December 2009.
In May 2010, CEB increased Airbus A320 orders by seven, on top of an existing order of 15
aircraft. The first for the 180-seat brand-new aircraft scheduled to be delivered from 2010 to
2014 arrived in October and was used to add routes and frequencies on CEB’s network of 33
domestic and 14 international destinations.
In June 2010, Cebu Pacific became the Philippines’ largest airline by total number of
passengers flown on domestic and international routes. CEB claimed the Nº 1 domestic carrier
in 2009 when it captured 50% of the domestic market share, in 2010, with 51% market share it
was again the Nº 1. The airline operated the youngest aircraft fleet in the country, composed of
8 ATR 72-500 and 21 Airbus aircraft.
In February 2011, Cebu Pacific bagged the Budgie$ Friendliest LCC Award at the Low Cost
Airlines World Asia-Pacific Conference held in Singapore, besting other contenders like Air
Arabia, Air Asia, Jetstar Asia, SpiceJet and Spring Airlines.
In May 2011, Cebu Pacific Airlines was named the most sociable airline in the world by
Planely.com, an air travel-focused social networking site that saw 142 airlines joining its contest.
In July 2012, Cebu Pacific CEO, Lance Gokongwei won the global low-cost airline Leadership
Award. The Airline Strategy awards, event that recognizes the airline industry’s best in
leadership, marketing, and innovation. Previous years Airline Strategy awards in the Low Cost
Leadership category include Jetstar’s Alan Joyce, Ryanair’s CEO Michael O’Leary, and Air
Asia’s Tony Fernandes.
In December 2012, Cebu Pacific Air took delivery of its 41st aircraft with tail number RP-C3271.
Cebu Pacific is the only airline in the Philippines with its fleet acquired 100% brand-new, making
it one of the youngest and most modern aircraft fleets in Asia.
In June 2012, Cebu Pacific ranked 15th in Airline Business Magazine’s list of the world’s top 75
low-cost carriers (LCC) based on 2011 passenger numbers. Cebu Pacific also ranked 15th in
2010. The world’s three largest LCCs in 2012 were Ireland’s RyanAir, UK’s EasyJet and USA’s
Southwest.
In January 2014, Cebu Pacific and Tigerair, the largest budget carriers based in the Philippines
and Singapore, have signed a strategic alliance. Subject to regulatory approval, Cebu Pacific
and Tigerair will collaborate commercially and operationally on international and domestic air
routes, thus creating the biggest network of flights to and from the Philippines.
In February 2014, Cebu Pacific Air announced that it has signed a share purchase agreement to
acquire 100% of Tigerair Philippines, including a 40% stake of Tiger Airways Holdings Limited.
Starting April 11, 2014, Cebu Pacific has been removed from the list of airlines banned from
operating in the European Union (EU) member countries. This confirms Cebu Pacific’s
commitment to safety and full compliance with international aviation safety standards. This
enabled Cebu Pacific to continue flying to the EU.
In May 2015, to reflect the relationship between Tigerair Philippines as a wholly owned
subsidiary airline of Cebu Pacific Airlines, Tigerair Philippines was rebranded as Cebgo. By
October, Cebgo returned 5 Airbus A320 to Cebu Pacific, thereafter operating a whole turboprop
fleet of ATR 72.
In June 2015, Cebu Pacific Airlines announced an order of 16 ATR 72-600 aircraft to be
operated by Cebgo to meet growing demand for inter-island services in the Philippines. With the
delivery of the first ATR 72 600 in October 2016, the airline also became the launch customer of
the new high-density Armonia cabin.
In January 2016, Cebu Pacific received its first brand-new Airbus A320 with the new livery, the
34th A320 in the low-cost carrier’s fleet.
In May 2016, Cebu Pacific became a founding member of Value Alliance, the world’s largest
low-cost carrier alliance. Cebu Pacific is currently the only Philippine carrier to be a member of
an airline alliance.
In June 2017, Cebu Pacific placed an order for 7 Airbus A321ceo aircraft. The first Airbus A321
200 is scheduled for delivery in March 2018.
In August 2018, Cebu Pacific launched thrice-weekly service between Manila and Melbourne,
its second destination in Australia.
In January 2019, Cebu Pacific took delivery of its first Airbus A321neo aircraft in a single-class
configuration with 326 Economy seats. Five more A321neo aircraft of the 32 on order will be
added to the fleet this year to Cebu Pacific’s expansion plans.
The only fatal accident in the history of Cebu Pacific took place on the 2nd day of February,
1998, when Cebu Pacific Flight 387, a DC-9-32 travelling from Manila to Cagayan de Oro,
crashed on the slopes of Mount Sumagaya due to a pilot error, killing all 104 people on board.

Source: https://www.seatmaestro.com/airlines-seating-maps/cebu-pacific-air/history/

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G. ORGANIZATIONAL STRUCTURE

Source :
https://cebupacificaircorporate.com/Investor%20Relations%20Documents/Org%20Chart%20for%20CEB

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H. DIRECTORS
Board of Directors, Management Team and Executive Officers
Board of Directors
Position Name

Chairman James L. Go

Director John L. Gokongwei, Jr.

Director Lance Y. Gokongwei

Director Jose F. Buenaventura

Director Robina Gokongwei-Pe

Director Frederick D. Go

Independent Director Antonio L. Go

Independent Director Wee Khoon Oh

Independent Director Cornelio T. Peralta

Management Team and Executive Officers


Position Name

President and Chief


Lance Y. Gokongwei
Executive Officer

Chief Finance Officer Andrew L. Huang

Chief Information
Laureen Cansana
Officer

President and CEO -


Alexander G. Lao
Cebgo

Vice President Capt. Samuel Avila

Vice President Rosita D. Menchaca

Vice President Candice Jennifer A. Iyog

Vice President Michael Ivan Shau

Vice President Joseph G. Macagga

Vice President Antonio Jose L. Rodriguez


Vice President Robin C. Dui

Vice President Rhea M. Villanueva

Vice President Atty. JR Mantaring

Vice President Alex B. Reyes

General Manager Nik Laming

Corporate Secretary Rosalinda F. Rivera

Asst. Corporate
William S. Pamintuan
Secretary

Senior Consultants
Position Name

Chief Executive Adviser Michael B. Szucs

Executive Adviser Rick S. Howell

Senior Adviser Ian Jeffrey Wolfe

SOURCE: https://cebupacificaircorporate.com/Pages/board-of-directors.aspx

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III. WORKING ENVIRONMENT ANALYSIS

A. TARGET MARKET/CONSUMERS
B. COMPETITORS

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C. MARKETING STRATEGIES (ADS/PROMOTIONS)

Advertise With Us

CEB Advertising Media


Cebu Pacific gives you a unique and effective new media platform that offers direct consumer
response. Maximize your advertising budget and reach your customers through out-of-the-box
media channels! Build brand awareness, increase product utilization, and improve reach and
interaction with a captive audience through the Philippines’ largest national flag carrier.
We give you access to our growing number of guests making sure that your campaigns are carried
out to meet your specific advertising needs.
Our ambient media channels provides you the most elegant way of reaching the consumer with
campaigns that create attention and news pieces for so much less!
We’d love to hear more about your out-of-the-box ideas that are not listed here! To advertise, drop
us an email at [email protected]

ONLINE
E-newsletter – Seat Sale Alerts
Flight Search
Booking Confirmation
Online Boarding Card

ONGROUND
Boarding Pass
Airport Queue Managers

ONBOARD
Seatback Devices
Skyline Panels

IN-FLIGHT MAGAZINE
Smile Magazine

Source : https://www.cebupacificair.com/en-us/pages/advertise-with-us

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D. CORPORATE SOCIAL RESPONSIBILITY ACTIVITIES

Cebu Pacific Air: The airline that cares

CEB is a consistent and committed partner to the following institutions


whose visions and goals it supports. From relief operations to the
environment to education, CEB gives back.

GMA Kapuso Foundation

Bright Skies for Every Juan

World Vision

Gawad Kalinga
Source: https://cebupacificaircorporate.com/Pages/corporate-social-responsibility.aspx
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E. ISSUES ON THE COMPANY/ORGANIZATON

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