CebPac’s

New Aircraft To Help Reduce Flight Disruptions

TIANJIN, CHINA—Cebu Pacific on Friday brought home a brand-new Airbus A320NEO aircraft assembled in Tianjin, China which chief executive Michael Szucs said would augment its fleet and help reduce flight disruptions caused by various factors such as engine maintenance issues, supply chain problem and weather-related concerns.

It is the first aircraft received by the low-cost carrier from the Tianjin final assembly line of Airbus, which will be followed by another three this year, according to Szucs who confirmed that the airline grounded 17 percent of its operating fleet mainly due to engine parts maintenance problem and “strange incidents beyond normal wear and tear” as the airline industry had to cope with a dramatic increase in travel demand following the pandemic.

Szucs said a large number of longterm unserviceable aircraft affected Cebu Pacific’s operations this year due to different incidents. “The combination of such incidents…we lost about 17 percent of our operating fleet in terms of availability. That undoubtedly impacted our ability to fly our operations,” he said. He said the global supply chain problem also delayed the delivery of aircraft by manufacturers such as Airbus, with the exception of the first Tianjin-assembled A320NEO which was completed and turned over on time.

“For 2023, we expect 10 NEO aircraft to come straight from Airbus’s factory line. Our fleet plan calls for us to have an all-NEO fleet of jet aircraft come 2028,” Szucs said.

The newly-delivered narrow-body aircraft features 188 seats made by manufacturer Recaro, providing passengers with more comfort with its slim and ergonomic design. It is also 20-percent more fuel efficient than its previous generation, as it consumes as little as 2.46 kilograms of fuel per seat per 100 kilometers.

“We have also specified the largest overhead storage bins that Airbus makes available for narrow-body aircraft — this added storage space in the cabin adds to customer convenience. Thanks to our efficient seating configuration, we are able to operate the most fuel-efficient and the lowest-emission aircraft in the world,” said Szucs.

It used sustainable aviation fuel with a 41-percent blend on its flight from Tianjin to the Ninoy Aquino International Airport in Paranaque City, marking a major milestone for Cebu Pacific’s sustainable aviation initiatives.

“We are thrilled to welcome this delivery, which is a major milestone for both Airbus and Cebu Pacific. This is in line with our fleet plan which aims to support our overall growth ambitions as travel demand continues to recover,” said Szucs.

Cebu Pacific placed orders for 10 brand-new Airbus NEO aircraft to support its objective to transition to a more fuel-efficient, all-NEO fleet by 2028. On top of this, the airline is also receiving five additional aircraft via longterm lease.

Szucs said the airline chose to receive the aircraft from the Tianjin facility because of its proximity to the Philippines. Airbus’ other A320 final assembly lines are in Toulouse, France; Hamburg, Germany; and Mobile, Alabama in the US.

“Tianjin is the closest assembly facility of Airbus to the Philippines. It makes sense from environment and economic points of view to accept an aircraft from the place that is closest to our home. Based on what we experienced on this first aircraft, it gives us every confidence to move forward and take some more aircraft from this facility,” he said.

Airbus Tianjin Delivery Center general manager Dr. Christoph Schrempp said the facility had resumed serving the Asian market again after more than four years. He said more than 660 Airbus aircraft had been assembled in Tianjin and delivered to Chinese and other Asian airlines over the years.

Cebu Pacific chief strategy officer Alex Reyes said the choice of all NEO fleet is part of the airline’s decarbonization efforts. “Cebu Pacific has been the Philippine leader in propelling decarbonization in the aviation industry. This aircraft delivery, powered by SAF, demonstrates our commitment to providing safe, convenient and reliable travel for our customers, while building a greener and more sustainable future,” he said. Roderick T. dela Cruz

By Othel V. Campos

THE country’s biggest business group appealed to the government to extend the implementation of the lower tax cuts under the Corporate Recovery and Tax Incentives for Enterprises Law until the end of the year as businesses have yet to fully recover from the onslaught of the COVID-19 pandemic.

Philippine Chamber of Commerce and Industry president Gorge Barcelon said that majority of the enterprises in the last two years were unable to fully enjoy the tax cut since most of them were in strict quarantine and could hardly do actual business.

“I know there’s a deadline set but when you think about it during the last two years of the pandemic, companies have not really been able to take advantage of it. I hope that the government will consider extending it, hopefully within the end of the year so that we can start for the new year,” Barcelon said.

He said most of the companies’ sales dropped while others closed shop, some had to shell out extra expenses, such as providing transportation to its workers.

“The feedback that I had been getting was that the one and a half years when the law became effective, it was not taken advantage of and those deductions have not been maximized,” Barcelon said.

He said the Philippines lags behind its ASEAN neighbors when it comes to lowering the CIT, which is necessary if the government wants to attract foreign investors.

Republic Act No. 11534 or the Corporate Recovery and Tax Incentives for Enterprises Law lowered the CIT and modernized the country’s tax incentive.

Under the CREATE Law, the 3 percentage tax was lowered to 1 percent from July 1, 2020 to July 1, 2023. It also lowered the CIT to one percent effective July 1,2020 to June 30, 2023.

Excellence

AWARD. Diversified engineering conglomerate DMCI Holdings, Inc. won four prestigious titles at the 13th Asian Excellence Awards, hosted by Corporate Governance Asia in Hong Kong Special Administrative Region of the People’s Republic of China.(Left to Right): Corporate Governance Asia founder and publisher Aldrin Monsod, DMCI Holdings chief finance officer Herbert Consunji, senior vice president for corporate communications and investor relations Cherubim Mojica and investor relations officer Hannah Cecille Chan.