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Cebu Pacific Fined 52 Million

12 January 2015

The Civil Aeronautics Board (CAB) has slapped Cebu Pacific a ₱52 million fine over multiple flight cancellations and delays during the Christmas holidays affecting more than ten thousand passengers. The airline said they will contest the ruling and is seeking reconsideration from the Board.


15 comments:

  1. So where's the money going to go?

    Hope Cebu Pacific learns its lessons and actually takes concrete steps to improve its service. Management will only ever understand when they're hit where it hurts--in the pocket.

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    1. The Board of Directors of Cebu Pacific is weak and made up of a bunch of oldies, it has an average age of more than 60. Management says what they want to say to window-dress and the oldies believe them. Sadly, the public doesn't see through this either.

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  2. 52M is nothing for them. Wait until the annual financial results are announced. It WILL be massive! 2014 was a defining year for the airline. A few days of chaos on the last week of the year will not put a dent on their overall performance.

    Sucks for the consumer... but the real tragedy in all of this is that the competition isn't strong enough to take advantage of 5J's woes.

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    1. Kaya sabihin mo kay Lance magbayad na barya lang pala yan!

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    2. Because if you are a businessman, you will not just kowtow to a government agency that is also itself incompetent. Actually CAAP, CAB & MIAA share equal blame with Cebu Pacific - CAAP for helping cause delays due to antiquated radar & other equipment, or lack thereof, CAB for approving airline schedules despite NAIA being unable to handle, and MIAA for being the most incompetent airport authority in the world - and all due to corruption. I am not absolving Cebu Pacific because they also had their failings. But by paying the fine, the airline is essentially admitting that it is solely at fault. If they had a better crisis management team, this news would have been dead after a few days. The good thing about having incompetent management though is that Lance will now have to fight, and this will help expose the government agencies that are also to blame.

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  3. And the P52-M can be passed on to the consumers and employees anyway, in the form of higher fares for the former and for the latter, reduced bonuses.

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    1. Of course naman kasalanan ito ng mga employees...at sa mga pasahero,magtiis na walang promo(but still cheaper compare to ppal)

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    2. Cebu Pacific is not always cheaper than PAL. As a business traveller purchasing tickets within a few days to a week of travel, we've known that fact and just go straight to PAL. They have better service too. If they overbook, they just move you to business class.

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    3. Even my brother-in-law tries to book me with 5J, I persistently argued to him to have me booked on PR instead since I know upfront fee would be very low but at the airport you will be hounded with additional charges for your extra baggage, etc.

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    4. It is NOT the fault of the employees, but rather the management. The employees can only do so much, and they will do their jobs better if they are taken cared of well and provided with the resources they need to perform their duties. Cebu Pacific management failed these employees.

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    5. For domestic travel on short notice Ceb Pac not always cheap. Im going to Cebu Jan 25 and will return Jan 27 & will take PAL at 3,881Php with 10kg allowance. Cebu Pac is 3,935Php.

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  4. Don't appeal anymore CebPac. You know that you made a huge blunder, you must pay for it (literally). Accept the punishment, move on, and improve your services. Also, interestingly, Philippine Flight Network has yet to report on this. Are they on the CebPac payroll?

    I don't like Abaya at all, but I have to commend him for pushing for higher sanctions against airlines, whatever they are, if they err too much. Airlines should strive to have a good customer reputation, and incidents like these just leave a sour taste on everyone's mouth.

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    1. Agree... If LYG is serious about this, heads should be rolling because of this inefficiency by his people and take responsibility. I'm not sure if he could do as Tony Fernandez taking responsibility of the QZ8501 mishap.

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  5. You get what you pay. You want cheap tickets, bear the delays and cancellations :) simple as that

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    1. Having a cheap flight doesn't warrant an airline to act like this. As a public utility providing air transport, please understand the basic condition of its certificate of public convenience and necessity, like to have a proper, suitable, convenient, safe, adequate and reliable air transportation services. Even you pay 1-piso fare, these basic conditions should be complied. So they should not be excused for this. Simple as that!

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