BIZ BUZZ: Lend me your wings
MANILA, Philippines — What if there’s a marketplace for an airline operator to lease out its excess planes that would otherwise just be idly parked somewhere during the lean season? Something like how Uber, Grab and AirBnB allow owners to monetize usage of idle cars or vacation homes.
There’s no platform yet, but bilateral deals may arise.
If there is a carrier whose lean season coincides with another’s peak season, won’t it make sense to lend wings to each other during those specific months?
This is precisely why Gokongwei-led Cebu Pacific has inked a deal to lease out aircraft (including the entire crew and maintenance team) to Saudi Arabian carrier Flyadeal. See related story: Cebu Pacific enters jet leasing business.
It’s an “elegant solution to manage the lean season for flying,” Cebu Pacific CEO Mike Szucs said in a press chat with editors on Wednesday.
For Cebu Pacific, which generates 70 percent of its business from domestic travel, the lean season is third quarter of every year. When the rains come, Pinoys lose appetite to travel.
But for Flyadeal, the same quarter is its peak season (like in Europe). It’s also literally the hottest season in Saudi, when travelers fly in search of cooler destinations.
Although the deal involves just two aircraft for now, Cebu Pacific is in the midst of a P1.4-trillion refleeting, which means there would be excess capacity in the coming years. This initial two-month deal allows Cebu Pacific to “go through the hoops with regulators and look to expand beyond it,” Szucs said.
No, Cebu Pacific had not thought about this when it first announced its jumbo refleeting in 2024. The idea came out only last February during an informal dinner.
Flyadeal CEO Steven Greenway, whom Szucs has known for years, visited Cebu Pacific with his technical team to inquire about the local carrier’s experience with A330 Neo aircraft in an all-economy class configuration. Over dinner, they talked about many things. When the conversation veered toward the high and low seasons, they found out that they are a good match for leasing excess wings.
“You could often say great strategies, great planning. But sometimes, it pays to be fortunate. And this is one of those occasions when we just sort of stumbled on it,” Szucs said. —Doris Dumlao-Abadilla
Integrating AirSwift
About six months after Cebu Pacific bought boutique airline AirSwift, airline passengers can now book their flights to El Nido (operated by AirSwift) via the Gokongwei-led airline’s website.
This shows the early steps of the companies towards integration of operations to improve efficiency.
“The El Nido flights are finally on the Cebu Pacific website as of March. We’ve seen the airline do quite well,” Cebu Pacific president Xander Lao said.
“The first step is to make sure the reservation system is integrated on our website. We are doing internal integration of operation systems,” he added.
However, he assured that AirSwift as a brand will continue to exist.
Cebu Pacific bought the carrier from Ayala-led ALI Capital Corp. via a P1.75-billion deal last year. AirSwift flies to El Nido, Cebu, Boracay, Coron and Bohol. —Tyrone Jasper C. Piad
SM debuts in Ilocandia
A new SM mall is coming to North Luzon, specifically Ilocos Norte.
SM Prime Holdings announced that SM City Laoag would officially open its doors to Ilocano shoppers on Friday, May 30. This marked its 88th shopping mall in the country.
The newest mall has three levels and offers more than 51,000 square meters of gross leasable space.
SM City Laoag will house several brands already known to the mall giant, including SM Store, SM Supermarket, SM Cinema, Pet Express, Miniso and BDO.
As for lifestyle brands, those already in the lineup are Levi’s, Columbia, Adidas, Watsons and Parfois. Food choices include TGI Fridays, Vikings, Marugame Udon, Cafe Amian and Milk Pot.
According to SM Prime, the mall already has 90 percent of its space lease-awarded.
Talk about high demand! —MEG J. ADONIS
