The Philippines’ second oldest airline is focusing its operations on the low cost market and planning to get a share of the large domestic tourist market in the country.
Travel and tour operators in Cebu welcome the move saying this would benefit the industry.
Starting July 31, South East Asian Airlines (SEAIR) will have three daily flights from Manila to Cebu as part of their expansion.
The airline will add flights to seven key domestic destinations including Cebu, Iloilo, Bacolod, Kalibo, Tacloban, Davao and Puerto Princesa, said Patrich Tan, SEAIR chief operations officer in a briefing last week.
Tan said the airline was exploring more opportunities for more flights to and from Cebu, which is considered a hub in the region.
“Cebu is one of the most important destinations in the country and its central location makes it a major gateway to the islands in the Visayas region. Our presence here means increase in trade and tourism in the region as well as job creation,” said Tan.
SEAIR, which started operations in 1995, used to cater to the leisure market segment, which served select areas for mostly foreign tourists.
However, SEAIR shifted its focus of operations to become a low-cost budget airline with a fleet of brand new A320s and A319s.
“At present we have two Airbuses and we expect to have five by the end of the year for our low-cost operations,” said Tan.
Tan said that they are investing $30 million for each brand new Airbus.
“The change in business model can only enhance our passenger experience of short and safe flights from one island destination to another. The new airbus planes are more spacious and can accommodate up to 180 seats,” said Tan.
He said the airline would be offering the lowest fare in the market.
SEAIR will add more domestic flights to Naga, Legaspi, Bohol, Cagayan de Oro, Zamboanga, General Santos and Tawi-Tawi as well as international flights to Korea, Japan, Taiwan and Indonesia.
At present, the airline has flights from Clark to Singapore, Hong Kong, Bangkok, Kota Kinabalu and Kalibo.
Angelita C. Dy of Grand Hope Travel and Tours, Inc. said that SEAIR’s addition of flights to Cebu would give more options for tourists and more share of the market for Cebu tour operators.
“This is a very good development and we are looking forward to a more exciting tourism industry in Cebu. More airline companies means more competition which can also make fares more affordable for many making it more accessible to travel in Cebu,” said Dy, who is also Cebu Association of Tour Operators vice president.
Alice Queblatin, Tourism Congress vice president for travel and tour sector in Visayas, agreed.
“This is another boost in ease and reasonability of cost of travelling to Cebu. This will definitely benefit the travelling public,” said Queblatin.
The move towards more low-cost carriers, however, would affect sales from ticket bookings through the travel operators, said Queblatin.
She said tour operators would have to focus on creating more attractive packages in order to compete.
Jay Aldeguer, Islands Group president, said that SEAIR’s move would definitely help Cebu.
“Additional players will give the riding public more options and this will keep the rates competitive,” said Aldeguer.
SEAIR CEO Tan said the addition of three daily flights to Cebu would mean an additional 300,000 arrivals every year and an addition of 300 jobs directly and indirectly.
Patria Aurora Roa, former Department of Tourism regional director, reiterated her call for the need to upgrade the Mactan airport to support these developments and ensure ease and comfort in travel for the tourists.
Cebu should be ready with the best support infrastructure that would make the whole product of Cebu world-class because while Cebu would have world-class brands of hotels, restaurants and other tourist attractions, it would always be the experience that would make the tourists decide to keep coming back, said Roa.