Joint Venture Takes Off Between Cebu Pacific and Scoot

Scoot has been promoting its partnership with Cebu in this cartoon style drawing on its website.

Cebu Pacific and Tiger Air (now merged into the single brand Scoot) have been working together as partners since 2014 and are both founding members of the Value Alliance, established in 2016. The two low cost carriers took a further step in their cooperation with a joint venture which just became concrete.

Some five airlines compete these days on the Manila-Singapore route providing overcapacity between both cities. This is why two of the largest low cost players on that market -Cebu Pacific and Scoot (previously Tiger Air), set up back to 2014 an interline agreement. Both airlines are also members since 2016 of the world’s first low cost carrier global alliance, ‘Value Alliance’. Despite securing together an anti-trust immunity from their respective government, it is only now that a joint venture between both airlines is taking place.

Both carriers have together a market share of 36% in seats’ capacity on the Manila-Singapore route. Cebu Pacific is however the largest operator on the route with three daily frequencies operated with Airbus A320 (189 seats) and A330-300 (436 seats)aircraft. Cebu Pacific alone has a market share of 27% calculated in seats’ capacity. By comparison, Scoot operates two daily flights with Airbus A320 aircraft.

With the joint venture, Cebu Pacific and Scoot can now propose five daily frequencies between both capital cities, offering convenience and flexibility to their passengers as they realign their flights’ schedule. Until now, four flights of both carriers had effectively almost similar departing times. New flights schedules are due to be announced soon with better spreading across the day.

Both airlines will also need to work out their services for travellers.For example, passengers in transfer in Singapore Cebu or Manila cannot do baggage through-check in to their final destination. Airlines operate also from different terminals in Manila -Scoot being in Terminal 1 and Cebu Pacific in Terminal 3. The slow transfer from one terminal to another – due to infamous traffic jam around Manila NAIA, has also to be resolved.

The JV is for now only valid on the Manila-Singapore route. Both carriers however operate other routes beyond Manila to and from Singapore. Cebu Pacific offers five weekly services from both Cebu and Clark airports to Singapore. The carrier also operates two weekly frequencies to Davao and Iloilo. Scoot flies as well Cebu-Singapore with four weekly frequencies and has a daily service between Clark and Singapore. The carrier is due to resume by October its route Kalibo-Singapore, following the reopening of Boracay Island, which has been shut for cleaning for q six-month period ending this October.

Although no announcement to expand the JV, it would make sense to also coordinate sales and schedules for the Cebu-Singapore and Clark-Singapore routes. And also relocate Scoot to NAIA Terminal 3, the home airport of Cebu Pacific. Maybe the next step for both carriers?