Some low-cost airlines in PH may close, says analyst


Posted at Jan 04 2013 01:14 AM | Updated as of Jan 05 2013 01:06 AM

MANILA, Philippines – A Sydney-based airline analysis company said Cebu Pacific is the only profitable low-cost carrier operation in the Philippines and that one or more of the other four could close this year.

Center for Aviation, known as CAPA, said the PAL group will also probably survive.

That would leave SEAIR, which is allied with Singapore's Tiger Airways, Malaysia's Air Asia and Zest Air possibly on the chopping block.

CAPA said there are too many planes, forcing the airlines to cut prices too deeply.

CAPA said that while the PAL group, which is refleeting after a $500 million takeover by San Miguel would probably survive, its outlook is bleak because of a long-haul operation that's hampered by being banned from the US and Europe.

CAPA said that while PAL is hoping the Philippines gets a Category 1 rating from the US Federal Aviation Authority this year allowing Philippine carriers to fly there it could take longer than that. -- ANC