Case Studies A.B. Won Pat International Airport, Guam

Manila – Guam (Cebu Pacific Air)

The challenge

Guam is a destination known for its large tourism market for beach resorts, weddings/honeymoon, golf and shopping. In 2013, when ASM first started conversations with Guam, 99% of the visitors arrived on the island by air. A new air service was therefore required to generate significant in-bound leisure passengers to Guam.

Manila was an ideal destination, as it was a large and growing market. In addition, as 30% of Guam’s population was Filipino, there could be a significant amount of out-bound traffic, of residents visiting family in Manila. After careful examination, Cebu Pacific Air was identified as the prime candidate for the route due to its extensive knowledge of the Philippines and Manila.

Results

Cebu Pacific Air launched a new service between Manila and Guam in March 2016. The airline has flights four days a week, and these are operated by an A320 aircraft with 168 seats. The airline is the only Low-Cost Carrier (LCC) operating between Manila and Guam and the new route is Cebu Pacific Air’s first US service.

How?

As there was already a connection from Guam to Philippines with flight to Manila operated by Philippine Airlines and United Airlines, ASM firstly needed to consider the impact on these operators and ultimately prove to Cebu Pacific that there was a market for all three carriers. Using benchmark analysis, ASM demonstrated that the introduction of the LCC was more likely to stimulate rather than erode the market.

ASM represented Guam for three years, developing a relationship with Cebu Pacific Air, by attending three head office meetings as well as several meetings at Routes Asia and other Routes events. Through meticulous research and analysis, traffic forecasts and business case presentations, ASM ultimately showcased GIAA’s potential which led to the launch in March 2016.