PHILIPPINE CHRISTIAN UNIVERSITY

GRADUATE SCHOOL DEPARTMENT

LOGISTIC OPERATION AND CHAIN MANAGEMENT

DR. MARIA THERESA B. VIBAR, JD, MBA, PhD

CEBU
Presentation 2023PACIFIC AIRLINE

RIZZA M. MALIGMAT, CPA, CTT

JULIO FLORES
RECHEL FERARIS
MBA Students
 Content
• Introduction
•
01
Time Context
• Viewpoint
• Central Problem
• 02
Objectives
• Areas of Consideration
• Alternative Course of Action
• Conclusion
03
• Plan of action
Introduction

Cebu Pacific Air is the largest domestic airline company in the Philippines. The company was established
the integr ation of sales, mar keting,
in August 1988 and began operating in March 1996.
service With
and suppor theirprocess,
t strategy, parent company, JG Summit, it ranked
people and technology
fifth in Asia in terms of an increase in total passengers in 2008. The company carried 5.38 million
passengers in 2008, which is a 20.7% increase over 2007. As of 2010, has added a number of
international destinations, which gives Filipinos an opportunity to visit countries like Brunei, Japan,
Vietnam, and more. Cebu Pacific is the leading company that provides the low-cost to both domestic and
international flights in the Philippines.
Cebu Pacific has been criticized for its poor passenger service, alleged overbooking, flight delays, and
cancellations. For instance, the airline was also criticized for lack of coordination in the aftermath of the
runway excursion incident at Francisco Bangoy International Airport in 2013 and the numerous flight
cancellations and delays during the December 2014
Customer Christmas
s, Data peak
and Database at the season.
Center of your Organization
In January 2018, Cebu Pacific was named as one of the world's least punctual airlines, with an on-time
( Customer- centr icity)

performance of 57.6% in 2017 based on data from OAG. Also included in the list from the Philippines is
another low-cost airline, Philippines Air Asia, with an on-time performance of 58.0%.
The airline was again criticized in 2023 because of its "unsatisfactory" service to passengers, prompting
the Senate of the Philippines to begin an investigation on June 21, 2023.
E

I. Time Context
June 21, 2023
 Viewpoint

An operation problem must be solved by the operational management. They must walk through
the process and workflow of the business to improve the services offered to customers. This
problem is perennial that needs to be addressed by the Airline.
 Central Problem

Cebu Pacific declined customer due to poor quality services.

With a company slogan, “Now, everybody can fly” Cebu Pacific gave their consumers a
promise to give low costs but great value. However, since Cebu Pacific Air has been reaching
greater heights this resulted in increasing their prices. Moreover, a lot of delayed and canceled
flights customers are experiencing. Also, their competitors have been following their low-cost
strategy. PAL has now adopted a market penetration strategy in all their flights by lowering their
prices against Cebu Pacific. As a counterattack, Cebu Pacific focused on their customer services.
How can Cebu Pacific remain the leading airline in the Philippines?
 Central Problem

Cebu Pacific airline in this case did not only lack in one service quality dimension, but all of it.
Tangibles, reliability, responsiveness, assurance, and empathy, they lack all of these.
a.Tangibles- the amount of adequate leg room on the airplane is insufficient. Passengers cannot
sit comfortably throughout the flight especially those who are taller than average height.
b.Reliability- Cebu Pacific Airlines did well on this in the past. But that is then, what about now?
Numerous flights were delayed due to multiple reasons caused by the airline company’s lack of
attention to fixing this issue.
c.Responsiveness - Cebu Pacific Airline clearly did not train its personnel properly. They did
nothing when an emergency happened. Passengers weren’t informed what happened when an
emergency occurred. The Airline Company has not responded to the questions and concerns of
their customers.
 Central Problem

d. Assurance – Seeing the OFWs, finally getting to see their family that they have been separated
for a long time, but in the end having their flight delayed because of overbooking is heartbreaking.
Those OFWs and other customers booked their flight and got it confirmed, only to eventually
know that the flight was overbooked. Customers now cannot be assured that if they book their
flight, they will be able to board the plane.
e. Empathy - Cebu Pac airline certainly lacked this service quality. Corrupt airport staff emerged
which caused unjust treatment for each and every customer just to have that money from an
unconstitutional activity
 Objectives

Must Objectives:
a. Cebu Pacific Airlines should provide a reliable service to its customers.
It Lessens delayed and overbooking flights and gives assurance to their customers to have a
lower cost but a quality service.
b. Improve its facilities and provide a comfortable ambiance to its customers.
It can be considered a Home away from Home.
c. To be able to retain its quality as number 1 in the market.
Want Objectives:
a. To be able to provide more flights without delay.
b. To be able to maintain affordable prices.
c. To be able to improve marketing strategies
 Areas of Consideration

1. Cebu Pacific Airlines should perform a root cause analysis of the delayed flights and revisit its
workflow process to provide a reliable quality service to its consumers. Lower cost but it must not
compromise the quality of service.
2. Cebu Pacific Airlines should have provided a better place for their customers by
rehabilitating their facilities.
 ALTERNATIVE COURSE OF
ACTION
1.Focus on customer satisfaction by improving their services and systems –Avoid delayed flights
and overbooking. Giving assurance to their customers of the scheduled flight. Train staff to be
friendlier and more helpful to their customers. -Offer more amenities like a pillow or fast wifi. -
Get feedback from passengers on ways to improve their flight and implement them as soon as
possible. Improve their websites and social media accounts accessible and easy to use -
Maintain safety and security -Update their online bookings and promos every day.
2.Offer Better Deals -Cebu Pacific can have family or Barkada promos showing their consumers
they are saving money. The promos must be affordable and accommodating.
3.Promote their promos -Have posters, advertisements, and commercials -Get various celebrities
to promote their airline
4.Offer more trips to tourist spots -Have seasonal trips to certain places (e.g. Summer –
Boracay/Palawan etc.) -Expand the places their customers can go to.
 ALTERNATIVE COURSE OF
ACTION
1.Focus on customer satisfaction by improving their services
PROS : happier passengers, customer loyalty, increase in customers
CONS : more costs, may need time and training,
2.Offer Better Deals
PROS : attract more customers
CONS : higher costs, there is a long process
3.Promote
PROS : attract more people, exposure for the airline
CONS : high costs, compete against other competitors
4.Offer more trips to tourist spots
PROS :variety of destinations, higher number of customers
CONS : need for more employees, higher costs, limited time only
 RECOMMENDATION

The group recommended alternative course of action number 1.

 PLAN OF ACTION
1. Avoid delayed flights.
2. Avoid overbookings
3. Lower cost, quality service.
4. To increase customers
5. To improve the marketing strategies.
6. To provide training and seminars for flight attendance.
 THE BEST KEY
PERFORMANCE
S TA N D A R D I S . .
THANK
YOU HIGH
RIZZA M. MALIGMAT C U S TO M E R
S AT I S FA C T I O
0906-342-2027

N R AT I N G !