B. Industry and Competitor Analysis
4.7 Industry Situation
The airline industry in the Philippines is continuously growing. In the past years, the Philippine Airline Industry consists of many independent airline companies, but because of the mergers and acquisitions, there are 4 major domestic low-cost carriers in the Philippines, namely Philippine Airlines, Cebu Pacific, Zestair Philippines, and Philippines AirAsia. Low-cost Carriers (LCC) are the carriers that have the highest demand in the Philippines as it accounts for 67% of total domestic market. Most of the Low-cost Carriers have international routes and almost all has domestic routes. Philippine Airlines has the most combined (domestic and international) routes out of all of …show more content…
One innovation that is currently being tested on small aircrafts is the solar powered airplane. They are planning to test it for the first round-the-world flight using only solar power. Another innovation that we may see early this year or next year is the upgraded armrest divisions. One armrest is detachable and it is an origami-like structure and it divides the armrest into two and increases its width. The other one is the “double decker” armrest which solves the battle for the armrest problems of the passengers.
4.8 Competitor Analysis
Figure 4.1 Philippines domestic market share (% of passengers carried) by carrier: 2014 vs 2013
2014
2013
Cebu Pacific Cebu Pacific is leading the domestic market share of low-cost carriers. Cebu Pacific also acquired 100% shares of Tigerair Philippines which helped them further boost their market share.
PAL Express Being the official low-cost carrier of Philippine Airlines, it holds the second place in market share for low-cost carriers. PAL express also provides quality service as well as it holds the name of one of the longest and well-known airline in the Philippines.
Zest AirAsia Zest Air is also one of the competitors of Cebu Pacific. It is also known for providing low-cost air transport.
4.9 Porter’s Five-Framework of Competitive Analysis
Figure 4.2 Porter’s Five-Forces Framework of Competitive
4.7 Industry Situation
The airline industry in the Philippines is continuously growing. In the past years, the Philippine Airline Industry consists of many independent airline companies, but because of the mergers and acquisitions, there are 4 major domestic low-cost carriers in the Philippines, namely Philippine Airlines, Cebu Pacific, Zestair Philippines, and Philippines AirAsia. Low-cost Carriers (LCC) are the carriers that have the highest demand in the Philippines as it accounts for 67% of total domestic market. Most of the Low-cost Carriers have international routes and almost all has domestic routes. Philippine Airlines has the most combined (domestic and international) routes out of all of …show more content…
One innovation that is currently being tested on small aircrafts is the solar powered airplane. They are planning to test it for the first round-the-world flight using only solar power. Another innovation that we may see early this year or next year is the upgraded armrest divisions. One armrest is detachable and it is an origami-like structure and it divides the armrest into two and increases its width. The other one is the “double decker” armrest which solves the battle for the armrest problems of the passengers.
4.8 Competitor Analysis
Figure 4.1 Philippines domestic market share (% of passengers carried) by carrier: 2014 vs 2013
2014
2013
Cebu Pacific Cebu Pacific is leading the domestic market share of low-cost carriers. Cebu Pacific also acquired 100% shares of Tigerair Philippines which helped them further boost their market share.
PAL Express Being the official low-cost carrier of Philippine Airlines, it holds the second place in market share for low-cost carriers. PAL express also provides quality service as well as it holds the name of one of the longest and well-known airline in the Philippines.
Zest AirAsia Zest Air is also one of the competitors of Cebu Pacific. It is also known for providing low-cost air transport.
4.9 Porter’s Five-Framework of Competitive Analysis
Figure 4.2 Porter’s Five-Forces Framework of Competitive