CAB explains high domestic airfares amid talks to lower ticket prices
Aircraft capacity and airport runway restrictions are crucial factors that drive high domestic airfares, the Civil Aeronautics Board (CAB) said amid government negotiations with airlines to reduce ticket prices on domestic flights.
The CAB said in a statement that measures to lower domestic airline ticket prices are already being done, following the directive of President Marcos, and of acting Transportation Secretary Giovanni Lopez.
But the CAB, an attached agency of the Department of Transportation (DOTr), said the size of the aircraft and the number of passengers it can carry significantly affect fare levels, with larger aircraft allowing airlines to spread operational costs among passengers.
It explained that smaller turboprop aircraft commonly used in Catarman, Siargao, Antique and Busuanga flights, such as the ATR-72, which can carry about 72 passengers maximum would have a higher per passenger rate as compared to large aircraft, like the Airbus A330 being used on major domestic routes including Cebu, Davao and General Santos, which can carry 459 passengers at most.
“If the aircraft is larger and can carry more passengers, airlines are better able to lower the ticket price per passenger,” it added.
Shorter runways, as in those in the Catarman, Siargao, Antique and Busuanga airports, also limit airlines’ ability to use larger planes on flights, the CAB said.
Improving infrastructure
“Some airports in the country can only be served by small turboprop aircraft because their runways are short,” it explained.
To address this, the DOTr and Civil Aviation Authority of the Philippines (CAAP) are expanding runways to accommodate larger planes, the CAB said.
The CAB said runway expansion projects have been completed at the Antique airport, while similar works in Busuanga are nearing completion.
In addition, the CAB reported it is also looking to expand nighttime operations in smaller airports in the country, as this may increase the frequency of flights to these areas, which would help lower domestic airfares.
CAB’s explanation came as Palace press officer Claire Castro said talks with major carriers to lower domestic airfares are in progress.
At a briefing, Castro said that Lopez has already spoken with two major airlines in the country–Philippine Airlines and Cebu Pacific, which both agreed to reduce fares, particularly to Siargao.
The CAB said it continues to monitor domestic airfares to ensure ticket prices remain fair and reasonable.
