PAL DISCOUNTS START AIRFARE WAR
Manila, Jan. 31, 1998 - After Philippine Airlines, the market leader, announced drastic fare discounts, three other flag carriers came out with their own fare discount promotions.
Officials of Cebu Pacific Air, GrandAir and Air Philippines Corp. said they are forced to match PAL's offer.
The first to react was Cebu Pacific Air, which decided to cut passenger fares for tickets purchased four days prior to departure. Their promo matches PAL's period from Feb. 1 to March 15, 1998.
"I don't think that's healthy, but we do not have any other choice but to follow," complained Eliseo Hizon, GrandAir executive assistant to the president.
Hizon said GrandAir's new rates will be filed today before the Civil Aeronautics Board and will probably approximate the discounts announced one day earlier by PAL.
Air Philippines Corporation will also reduce fares to Davao and Iloilo by an average of 20% according to Danilo Celis, vice president for marketing. Although the Air Philippines promo period is also from Feb. 1 to March 15, Celis claims the fare discounts are part of the company's third anniversary promotions and not prompted by PAL's announcements.
Asia Spirit's manager for sales and promotion, Emily Warren, said his outfit has no plans of following PAL's example.
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