Competition between Manila and Guam is set to intensify as Cebu Pacific prepares to launch its very first route to the United States. According to the Pacific News Centre, Cebu Pacific, the nation’s largest low cost carrier, is planning to launch flights to the US territory on March 15, 2016.
The budget carrier has been planning its entry into the US market for quite some time. Cebu Pacific had originally planned flights to Guam before the end of 2015 pending regulatory approvals. But according to a spokesperson of the Guam International Airport Authority, Rolenda Faasuamalie, Cebu Pacific will launch flights between Manila and Guam in March of 2016.
Faasuamalie indicated that the inaugural flight was set for March 15 with Cebu Pacific offering four flights weekly aboard an Airbus A320 aircraft. She added that a Cebu Pacific team is planning to travel to Guam in the near future to conduct an inspection of facilities and search for office spaces.
Filipinos residing in Guam have been eagerly anticipating the entry of Cebu Pacific, which will provide much needed competition for Philippine Airlines and United Airlines. Residents of the island territory are hoping that Cebu Pacific will be able to stimulate the market with its low airfares increasing tourism to Guam and enabling Filipinos to return home for visits more frequently.
At present, there are approximately 50,000 Filipinos living on the island of Guam, comprising nearly 26 percent of the entire population. Filipinos make up the second largest ethnic group on the island. Round-trip airfares for the four hour flight between Manila and Guam typically average US $300. The entry of Cebu Pacific could see airfares drop anywhere from ten to thirty-five percent.
Last year, Cebu Pacific was cleared by the US Department of Transportation to operate flights to the United States. While it is no secret that Cebu Pacific is eager to enter the US market, Guam has a unique advantage over other US destinations given its close proximity to the Philippines, which puts it within range of Cebu Pacific’s A320 fleet.
As the Cebu Pacific fleet is composed primarily of A320 aircraft, the budget carrier has much greater flexibility in launching flights at the earliest possible opportunity, making Guam Cebu Pacific’s first US destination.