Flying without the frills (Mau Padilla)

When I was a kid, I can clearly remember my parents telling me that airline tickets are very costly and as customers, we did not really have much of a choice since Philippine Airlines (PAL) is the only airline available for domestic routes within the country, or if not, then at least for our usual route, Cagayan de Oro-Manila.

As I grew up, I then heard of other airlines entering the market. Some have failed and some stayed. Moreover, as time passed, airline tickets were noticeably getting cheaper. This is definitely due to competitors entering the market.

Taking Cebu Pacific’s case for example, as PAL’s competitor, it started small, with about the same offerings and prices, or usually just a bit cheaper compared to PAL. However, as years passed, one can see the tremendous changes it has made to its operating structure. They changed from a full-service airline to a low-cost airline.



Low-cost airlines have been operating since the mid-90’s in other parts of the world and it is only recently that our country got a very much-needed one. It’s a good thing that Cebu Pacific actually adopted the system. And as an added bonus, they had the first-mover advantage, giving it the edge in building its name as a low-cost airline in the industry. The move was definitely a win-win situation. We are currently witnessing the fruits of the company’s strategic move as proven by its ever-increasing market share. As for the customers, it is indubitable that more Filipinos are able to experience traveling, most especially to other Asian countries in the region, at a fraction of its usual costs.

So what is it that makes it possible for an airline company to charge outrageously low fares? From traveling on Cebu Pacific as well as other budget airlines in Europe such as Ryanair, Sterling and Norwegian, I have noticed a lot of commonalities among them. First, the cabins hold a single passenger class. An airline usually utilizes a single type of airplane, as explained in numerous in-flight magazines I read, this helps in reducing costs as to maintaining the planes. As with regards to fares, all fares offered are with accordance to demand and supply, thus super low fares are still in a way, compensated. Tickets are usually issued online, eliminating third-party costs. Talk about the effects of technological improvements to economics! Utilization of aircraft is maximized and employees play multiple roles.





However, low-cost airlines also have its costs, such as lesser value-added services, for some cases, landing on secondary airports and late/early hours. But then again, we get to go places and it gives very good value for our money. Besides, if you just can’t stand low-cost airlines, then conventional full-service airlines are still always there for you.