MikeLigalig.com

By JAMES A. LOYOLA
Manila Bulletin

While waiting for a better time to launch its initial public offering, Cebu Air Inc., popularly known as Cebu Pacific, continues to expand its operations within Asia and even hopes to be able to fly to Guam.

“At this point, our business model is focused on routes that are four to five hours away and that is mostly in Asia,” said Cebu Air president Lance Gokongwei.

However, he said Cebu Pacific would want to fly to Guam if local civil aviation authorities can find a way to remove the Category 2 rating given by the US Federal Aviation Administration. The US FAA had earlier downgraded Philippine airline operations and put them under heightened scrutiny because of their inadequate safety standards. A Category 2 rating means Philippine carriers can continue flying to the US but only under heightened FAA surveillance.

US FAA rules also prevent airlines from the Philippines from expanding services to the United States under a Category 2 rating. Thus, Cebu Pacific cannot fly to Guam or any other part of the US unless the rating is upgraded.

Gokongwei said Cebu Air will continue to see major revenue growth due to the expansion of its domestic and international routes as well as an increase in passenger traffic.

He said the airline will continue tapping export credit facilities to fund its acquisition of more aircraft and that there is no need to rush its initial public offering this year.

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