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A sister company of flag carrier Philippine Airlines (PAL) upped the ante in the Low Cost Carrier (LCC) market by offering very competitive prices to Cebu and Davao, with free luggage to boot.

Airphil Express, one of the country’s five LCC’s, has started to fly to Cebu and Davao last Wednesday, offering rock-bottom prices of P600 and P800 one way respectively, plus 15 kilograms of free luggage to passengers.

Starting September 1, the free luggage cargo would increase to 20 kilograms.

The air carrier has a fleet of eight Bombardier Q400, the world’s fastest turboprop, and three Bombardier Q300, lauded in world aviation as one of the best turboprops ever. For major airports, it fields the Airbus 320, claiming to be one of the world’s safest narrow body aircraft.

Airphil Express would also acquire four more A320 this year, four A320 in 2011 and six more of the same plane in 2013, according to Brian Hogan, the firm’s chief executive adviser said during the flight launch to Cebu and Davao at the Ninoy Aquino International Airport Terminal 3.

By his estimate the Philippines would post between six to seven percent growth in air travel this year.

"There would be double-digit growth for airlines in the next few years and the LCC’s would be there so support that expansion."

Asked how the company intends to compete when there are already other LCC’s sharing a bigger slice of the air traveler’s pie, Hogan, who had 30 years experience in aviation, having been an executive of Tiger Air and Cebu Pacific, said that the company intends to open more "missionary routes" such as El Nido, Palawan; Tawi-Tawi, Jolo, Basco and many more local places now served by roll-on, roll-off (Ro-Ro) vessels.

The country’s Low Cost Carriers (LCC) are aggressively promoting air travel by acquiring new and more fuel efficient aircraft, creating more destinations and offering other perks in the hope of luring travelers who still prefer buses or ships because of lower fare.

The Philippines is one market that is ripe for LCC growth, not only because it has a population of some 90 million but also because of its scattered geography of 7,100 islands.

Hogan said that Australia, with a population of 25 million, tallies 40 million passengers annually, Thailand, 65 million citizens, 25 million air travelers; Singapore, Hong Kong and Japan each have a yearly passenger volume of some 20 million passengers.

Indonesia, which has the same Gross Domestic Product as the Philippines, has 25 air carriers, compared to the Philippines, which has about five air carriers that travel outside the country and the rest consist of smaller aircraft that sits less than 20 passengers and are called air taxi and charter service.

"Australians, Thais, Malaysians, Indonesians, Japanese and Taiwanese are conditioned to travel by air," Hogan said.

He said that a bus and ro-ro trip to Cebu would cost slightly lower than air travel but only by a few hundred pesos, but the same traveler would have to endure 48 hours of land or sea travel.

"Air travel is still the safest and the fastest means to bring anyone to their destinations," Hogan said.

Upping the ante more, Airphil Express intends to "provide the commodity of transit without compromising the quality of service, a must in the Visayas and Mindanao."

At the same time, the larger cargo hold of the A320 allows Cebu and Davao-based businesses to load cargo to and from Manila at the end of every business day and straight to market at the start of the next day.

By assigning a fast, fuel-efficient, narrow-bodied jet like the A320, Airphil Express is able to better respond cost-wise to both passengers and cargo customers," according to Maria Java, head of marketing, media and product.

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