CEBU PACIFIC COMPANY: OPERATION MANAGEMENT (OM2)

INVENTORY MANAGEMENT AND CONTROL

INVENTORY MANAGEMENT AND CONTROL

RESEARCH STUDY

Presented to the
Faculty of
College of Business and Information Technology(CBIT)
Saint Joseph Institute of Technology
Montilla Boulevard, Butuan City

In Partial Fulfillment of the Course

INVENTORY MANAGEMENT AND CONTROL (OM2)
For the degree of
Bachelor of Science in Business Administration
Major in Operations Management
(BSBA- OM)
First Semester: Second Term
S.Y. 2019-2020

Submitted by:

Amiel Kit Tiburon

Ralph Dela Peña
Christian Pacon
Marcelino Salcedo
Cristian Xavier Ariola
Loreto Odoño
Kleint Bayrola

Submitted to:

JENNY LYN TINDUGAN- NALUPA

OM 2 Professor

DECEMBER 2018
 APPROVAL SHEET

This Inventory Management and Control Research Study entitled “CEBU

PACIFIC COMPANY :OPERATION MANAGEMENT (OM) INVENTORY

MANAGEMENT ANDCONTROL”, Prepared and submitted by Amiel Kit Tiburon,

Ralph Dela Peña, Christian Pacon, Marcelino Salcedo, Cristian Xavier Ariola,

Loreto Odoño and Kleint Bayrola in partial fulfillment for the degree of Bachelor of

Science in Business major I Operations Management (OM 2) subject is hereby

recommended for approval and acceptance of the Panel of Examiners for

Presentation.

JENNY LYN TINDUGAN- NALUPA, Ph.D.

OM 2 Professor

PANEL OF EXAMINERS

Approved and accepted in partial Bachelor of Science in Business

Administration fulfillment of the requirements for the degreeof major in

OperationsManagement in Inventory Management and Control (OM 2) subject by

thePanel of Examiners with a grade of PASSED.

Member Member

Chairman

JENNYLYN TINDUGAN NALUPA,Ph.D.

OM 2 Adviser
 ACKNOWLEDGEMENT

With heartfelt gratitude and sincere appreciation, the aspiring Operations

Managers would like to express it to the following persons who contributed much for the

success of this Operations Management Proposal to:

DR. JENNY LYN TINDUGAN NALUPA, The Operations Management (OM2)

Professor, for her constant guidance and monitoring, brilliant insights, suggestions and

full support to make this Operations management Research Study- Business Research

Study a successful one.

ALMIGHTY GOD, who had blessed the neophyte aspiring Operations Managers

with wisdom, knowledge, understanding and strength all the way in all undertakings.
 DEDICATION
Amiel Kit Tiburon

Ralph Dela Peña

Christian Pacon
 EXECUTIVE SUMMARY

Cebu Pacific Air is currently the country’s leading domestic carrier, serving the
most domestic destinations with the largest number flights and routes, and equipped
with the youngest fleet. Cebu Air, Inc., operating as Cebu Pacific Air, is based on the
grounds of Ninoy Aquino International Airport (Manila Terminal 3), Pasay City, Metro
Manila, the Philippines. It offers scheduled flights to both domestic and international
destinations. Its main base is Ninoy Aquino International Airport, Manila, with other hubs
at Mactan-Cebu International Airport, Francisco Bangoy International
Airportand Diosdado Macapagal International Airport.

The airline is a subsidiary of JG Summit Holdings, controlled by the Gokongwei

family - one of the richest Filipino-Chinese families based in the Philippines. Cebu
Pacific is currently headed by Lance Gokongwei, presumptive heir of John Gokongwei,
the chairman emeritus of JG Summit. The company has 1,182 employees (as of March
2007). In October 2010, the airline completed an IPO of 30.4% of outstanding shares.

Cebu Pacific signed a joint-venture agreement with SIA Engineering Company for the
maintenance of the Airbus A319 and A320 aircraft. The new company, called Aviation
Partnership (Philippines) Corporation, is co-owned by SIA Engineering Ltd and Cebu
Pacific.

In March 2007, Cebu Pacific announced an order of 10 Airbus A320s, plus 10

options. The firm orders are for delivery from 2010 to 2012, while the options are for
delivery from 2011 to 2013. In order to bridge the gap from now until the first delivery in
2010, CEB will be taking short- to medium-term leases on Airbus A320 aircraft. 4 will be
leased in 2008, with a further three to four being leased in 2009.
 On 18 December 2008, Cebu Pacific announced that they have ordered an
additional four ATR-72-500 turboprop aircraft. This order increases their order of ATR-
72 aircraft from 6 firm plus 8 options to 10 firm plus 8 options.

On 16 June 2009 at the Paris Air show, Airbus announced that Cebu Pacific had
increased its outstanding A320 orders to 15 with a new firm order for 5 aircraft. The
additional planes are scheduled for delivery starting 2013. Cebu Air Inc. said on April
20, 2010 it would purchase an additional 7 Airbus A320s, bringing to 22 its pending
orders from European manufacturer Airbus, a unit of EADS.

We have identified 3 major competitors of Cebu Pacific which are: Philippine

Airlines, Zest Airways and Air Philippines and a large number of airlines.

Based on the result, price and service quality have the highest bearing since
these two items determine the sales of the business. Service quality has the heaviest
weight because the Filipinos are mindful and have high standards. They want to
maximize their money for convenience and security. Based on the CPM, Cebu Pacific
Airlines is leading in the market as it got a total score of 3.45 because its major
strengths are its advertising and price.

EFE Matrix is based on the evaluation of Economic Analysis of the external

factors affecting the business in getting the potential opportunities and threats for Cebu
Pacific Airlines.

Considering the above EFE, Cebu Pacific current competitive position or

business strength in the industry is above average. Over-all, it has been coping up well
with the factors which can positively or adversely affect its financial positioning,
especially in the current period.

We recommend marketing penetration and Horizontal Integration as business

strategies to be used by Cebu Pacific Airlines. Market Penetration strategy seeks to
increase market share for present products or services in present markets through
greater marketing efforts. This includes increasing the number of pilots, increasing
advertising expenditures, offering extensive sales promotion of trip packages, or
increasing publicity efforts.
 TABLE OF CONTENTS

Page
TITLE PAGE i
APPROVAL SHEET ii
ACKNOWLEDGEMENT iii
DEDICATION iv
EXECUTIVE SUMMARY v
TABLE OF CONTENTS viii
LIST OF TABLES ix
LIST OF FIGURES x

CHAPTER 1 COMPANY BACKGROUND1

Business Name 1
Business Logo 1
History 2
Vision 3
Mission 3
Core Values 3
Tagline 3
Slogan 3

CHAPTER 2 INVENTORY PLANNING

Optimum Level Inventory Management

Human Resources
a. Recruiting
b. Staffing
c. Training and Development
d. Monitoring
e. Performance Appraisal

Organization Structure
Sales and Marketing
Customer Service
After Sales
Warehousing and Logistics
Manufacturing
Finance
SWOT Analysis
Smart Analysis
CHAPTER 3 INVENTORY CONTROL
Physical Inventory Management

Human Resources
Warehouse Management
Company Facilities
Physical Process
Physical Stock Inventory
System Records

CHAPTER 4 INVENTORY BALANCING

Supply and Demand Inventory Management

Rate of Supply
Rate of Demand
Flow of Inventory
a. Flow of Supply
b. Flow of Demand

Master Production Schedule (MPS)

Material Resource Planning (MRP)

REFERENCES
APPENDICES
DOCUMENTATION
PERSONAL DATA
LIST OF TABLES

Table No. Title Page

1
2
3
4
LIST OF FIGURES

Figure No. Title Page

1
2
3
4
 CHAPTER 1

COMPANY BACKGROUND

Cebu Pacific Air

History:
Foundation and growth (1988–2006)
The airline was established on 26 August 1988 and started operations on March
8, 1996. Republic Act No. 7151, which grants a franchise to Cebu Air, Inc., was
approved on 30 August 1991. Cebu Air, Inc. was subsequently acquired by JG Summit
Holdings (owned by John Gokongwei). Domestic services commenced following market
deregulation by the Philippine government. It temporarily ceased operations in February
1998 after being grounded by the government due to an accident that killed 104 people
but resumed services later the next month following re-certification of its aircraft. It
initially started with 24 domestic flights daily among Metro Manila, Metro
Cebu and Metro Davao. By the end of 2001, its operations had grown to about 80 daily
flights to 18 domestic destinations.

In the 2000s (decade), Cebu Pacific was granted rights to operate international
flights to the region, including Malaysia, Indonesia, Singapore, Thailand, South Korea,
Hong Kong, and Guam. International flights were launched on 22 November 2001, with
a twice-daily service to Hong Kong.On 1 March 2002, it commenced thrice-weekly
flights to Seoul.Other regional flights were introduced and suspended later; however,
including flights to Singapore (from 6 November 2002, to January 2003) and from
Manila via Subic to Seoul (from December 2002) due in part to the effects of
the SARS epidemic. The airline resumed its Manila-to-Singapore flights on August 31,
2006and launched its direct flight from Cebu to Singapore on October 23, 2006, the first
low-cost airline to serve the Cebu-Singapore-Cebu sector, and in direct competition
with Singapore Airlines' subsidiary SilkAir, CEB was the only Philippine carrier serving
the Cebu-Singapore-Cebu route for years until PAL resumed its direct service in 2017.
The airline operates direct flights from Cebu to Hong Kong which commenced October
2, 2006, which also made CEB the only Philippine carrier to serve a Cebu-Hong Kong-
Cebu route after PAL terminated its direct service and is now code-sharing with Cathay
Pacific for this route.In December 2006, after a month or two of operating the new direct
flights, Cebu Pacific announced that it would increase flight frequency for its Cebu-Hong
Kong-Cebu from four to five times weekly and Cebu-Singapore-Cebu flights from four to
six weekly effective 25 January 2007. As of January 2008, it operates regional flights to
Busan, Hong Kong, Singapore, Seoul-Incheon, Taipei and Bangkok beginning April 6,
2008, from its Cebu hub; and Bangkok, Guangzhou, Hong Kong, Jakarta, Kuala
Lumpur, Macau, Singapore, Taipei, Seoul-Incheon, Shanghai and Xiamen from Manila.

Cebu Pacific's plans to begin international flights from Clark were initially
unsuccessful when its request was denied. The nations involved came to an agreement
that Cebu Pacific would be only allowed to operate charter flights from Clark to the
respective countries' airport(s). Only Singapore initially agreed to allow Cebu Pacific to
fly scheduled flights from Clark to Singapore. Cebu Pacific now operates routes from
Clark to Bangkok, Cebu, Hong Kong, Macau and Singapore.

Expansion and re-branding (2007–present)

In June 2007, Cebu Pacific announced an order of up to 14 brand-new ATR 72-
500 aircraft, with six firm orders and eight options. It plans to initially offer flights
to Boracay, using Boracay's Godofredo P. Ramos Airport. On 12 November 2007, Cebu
Pacific announced Davao's Francisco Bangoy International Airport as its fourth hub.
Cebu Pacific announced that it would initially fly internationally from Davao City to
Singapore, Hong Kong and fly one domestic flight to Iloilo. Both direct services from
Davao to Singapore and Iloilo commenced on May 8, 2008, while the service to Hong
Kong commenced on May 9, 2008. In late 2007, Cebu Pacific mentioned that it was
aiming to cross the Pacific and launch non-stop flights to the United States West
Coast, Houston, Texas and Chicago, Illinois by mid-2009.On 18 December 2007, Cebu
Pacific announced that it would exercise options on its recent ATR 72-500 turboprop
order (initially six firms) to increase its firm order to 10.On 19 February 2008, Cebu
Pacific Air received its first brand-new ATR 72-500 and expected to take delivery of
another five ATRs from March to December 2008. The initial two ATRs fly on routes
such as Cebu to Bacolod. Cebu Pacific took delivery of its 16th brand-new, 179-
seater Airbus A320 aircraft on 20 March 2008. The new aircraft was to support CEB's
expanding international and domestic operations which include flights to 12, soon to be
15, international destinations.On 28 May 2008, Cebu Pacific was named as the world's
number one airline in terms of growth. The airline was also ranked fifth in Asia for
Budget Airline passengers transported and 23rd in the world. The airline carried a total
of almost 5.5 million passengers in 2007, up 57.4 per cent from 2006On 22 July 2008,
Cebu Pacific was the first airline to use the new Terminal 3 of the Ninoy Aquino
International Airport with its flight to Caticlan being the first to depart at 0515 local time.
On 1 August 2008, it moved its international operations to the terminal; thus, becoming
the first airline to have regular international commercial flights from the new terminal.

In August 2009, Cebu Pacific became the first airline in the Philippines to
use social media. The airline created a fan page on Facebook and Twitter.On 6 January
2011, Cebu Pacific flew its 50 millionth passenger, from Manila to Beijing. The airline
aimed to reach the 100-million-passengers mark in 2015.In June 2011, Cebu Pacific
signed a Memorandum Of Understanding for 30 Airbus A321neos includes nine leased
that will help the airline's growth and development. It will fly to Southeast Asia including
cities in Japan and Indonesia. In August 2011, The airline has finalized the order and
claimed that it would start deliveries in 2017 but due to the certain problems with the
engines, the deliveries have to be moved in 2019.

Cebu Pacific is planning to commence international long-haul flights to the

Middle-East, the United States, Australia, and some parts of Europe using the Airbus
A330-300.The first long haul flight commenced to Dubai, United Arab Emirates on 7
October 2013. Cebu Pacific is also applying for rights for a daily service to Auckland,
New Zealand. On 12 February 2018, Cebu Pacific announced that their subsidiary,
Cebgo, will fly daily from Manila to Batanes starting March 25, 2018 until October 27,
2018.

In 2016, Cebu Pacific revealed its new logo that represents the colors of
the Philippines and also symbolizes as an evolution of a low-cost pioneer.
Vision:
Cebu Pacific: The most successful low-cost carrier in the world

Mission:
Cebu Pacific brings people together through safe, affordable, reliable, and fun-filled air
travel.

We are committed to innovation and excellence in everything we do.

We are an employer of choice providing opportunities for professional and personal

growth.

We have a deep sense of family values throughout our airline.

We enhance the quality of life of the communities we serve and are an active partner in
our nation's progress.

We offer our shareholders a fair return on their investments.

Core Values:
Accountability

We take responsibility for what we say, the decisions we make, and the actions we take.

Respect

We uphold the dignity and individuality of each person.

Excellence

We strive to be the best in everything we do.

Fun

We enjoy our work and provide quality service in a fun-filled manner.

Integrity

We are honorable. We do what is right, not what is expedient.

Teamwork

We value and harness the strengths of each team member. We collaborate and
cooperate with each other to achieve our goals.

Tagline:
Let's Take to the Sky

Slogan:
"Why everyone flies"
 CHAPTER 2

INVENTORY PLANNING

(Optimum Level Inventory Management)

Human Resources - the personnel of a business or organization, especially when

regarded as a significant asset.

The department of a business or organization that deals with the hiring, administration,
and training of personnel.

a. Recruiting
 Internship for Hospitality/Tourism Management Students
National Capital Reg

During the internship period, you will be exposed to these areas:

Responsibilities:

 Airport Services
 Inflight Catering and Sales
 Customer Care
 Flight Operations
 Corporate Affairs
 Human Resources

Requirements:

 Candidate must be currently pursuing a Bachelor's/College Degree in

Hospitality/Tourism/Hotel Management or equivalent.
 0 Internship position(s) for duration of 4 month(s).
  Internship for Business Studies/Administration Students
National Capital Reg

During the internship period, you will be exposed to these areas:

Responsibilities:

 Marketing and Distribution

 Passenger Sales
 Finance and Accounting
 Human Resources
 Commercial Planning
 Cargo Division

Requirements:

 Candidate must be currently pursuing a Bachelor's/College Degree in Business

Studies/Administration/Management, Human Resource Management, Marketing,
Finance/Accountancy/Banking, Commerce or equivalent.
 10 Internship position(s) for duration of 4 month(s).

b. Staffing
Stakeholders

The Company is committed to undertake all reasonable steps to ensure the

health, safety and welfare for the best interest of our stakeholders and the communities
where we live and work by complying with provisions of law, industry rules and
regulations, standards of independent accreditation bodies where the Company
obtained accreditation, and contractual obligation.

This policy aims to:

1. Provide a guiding principle to ensure health, safety and welfare of the Company's
stakeholder.

2. Identify responsibility and accountability of every personnel and department in the

organization to ensure the health, safety and welfare of stakeholders.

3. Integrate health and safety practices in all activities to ensure efficiency and quality of
products and services.

Employees

To ensure that the employees of the Company maintain a healthy balance

between work and life, health and wellness programs are organized for these
employees. Professionals are invited to conduct classes of Zumba, Tai Chi, and other
activities in our work site. The Company has also partnered with fitness gyms to offer
special membership rates to employees. This is in addition to the free use of gym
facilities in the different installations.

Year on year, the Company has facilitated vaccinations such as against flu and
cervical cancer that are offered not only to employees but to their dependents as well.
The Company has worked with healthcare providers in identifying top diseases based
on utilization report and has invited resource speakers to talk about preventive
measures.
 To ensure the safety of the Company's employees, a Corporate Emergency
Response Team (CERT) has been created that will be activated and will become the
"command center", orchestrating initiatives across the conglomerate during a crisis..

c. Training and Development

Company Training and Development Programs for Employees

The Company continuously provides learning and development opportunities for its
employees through the John Gokongwei Institute for Leadership and Enterprise
Development or what is commonly known as JG-ILED.

JG-ILED is the leadership platform for systematic and sustained development programs
across the conglomerate. Its mission is to enable a high performing organization that
will facilitate the learning process and develop the intellectual and personal growth of all
employees through targeted and customized trainings and development programs.

JG-ILED curriculum comprises of the following:

Core Program - programs designed to ensure employees have the foundation needed
to perform job effectively. It also covers key people skills training that will help
supervisors and managers in leading their teams to perform to the optimum level.

 Basic Management Program (BMP)

 Coaching for Effectiveness (CFE)
 Problem Solving and Decision Making (PSDM)
 Employee Discipline Program (EDP)
 Achieving Customer Service Excellence (ACE)

Management Development Program – programs that aims to enhance the leadership

capability and business acumen of all leaders
 Finance for Senior Executives
 Strategic Communication Program
 Executive Coaching Program
 Advanced Negotiation Skills
 Leading and Managing Change

Human Resources Development Program - courses designed to ensure employees

have a common understanding of the HR processes and systems by which the
Company operates.

 Job Evaluation
 Competency-Based System
 Organization Design and Manpower Planning
 Labor Relations Management
 Performance Management System
 Targeted Selection-Competency Based Interviewing

d. Monitoring

CORPORATE GOVERNANCE MONITORING AND SELF-ASSESSMENT

 The Board shall conduct an annual self-assessment of its performance, including
the performance of the Chairman, individual members and Committees. Every
three (3) years, the assessment may be supported by an external facilitator.
 The Board shall have in place a system that provides the criteria and process to
determine the performance of the Board, the individual Directors, and
Committees including feedback from Shareholders.
 The Corporate Governance Committee shall oversee the evaluation process.
 The Corporation shall ensure that its business processes and practices are
consistent with the provisions of this Manual.
 This Manual shall be subject to review as the need arises in order to take into
account the Corporation’s changing needs, business, technological and
 environmental conditions, and regulatory requirements. Any recommended
changes to the Manual shall be subject to approval by the Board.

e. Performance Appraisal

Organization Structure

An organizational structure is a system that outlines how certain activities are directed in
order to achieve the goals of an organization. These activities can include rules, roles,
and responsibilities.

The organizational structure also determines how information flows between levels
within the company. For example, in a centralized structure, decisions flow from the top
down, while in a decentralized structure, decision-making power is distributed among
various levels of the organization.

Having an organizational structure in place allows companies to remain efficient and

focused.
 Sales and Marketing

Cebu Pacific targets budget travellers

1. Cebu Pacific’s travel base is the price-conscious young travelers.

2. PTM wants more travel which may mean less comfort.
3. Direct competitors are Airphil, ZestAir, Seair, and PAL.
4. Opportunity of bringing air travel closer to more Filipinos.
5. Market size for domestic passengers is 16M.
6. Cebu Pacific offers year-round Low Fares, has more domestic destinations.
7. Promo fares are the lowest, yet regular fares are more expensive.
8. Cebu Pacific captured worldwide audience through its website.
9. Booking at your fingertips!
10. Cebu Pacific dominated the market through its Low Cost Strategy.

Customer Service

1. Offer the lowest available fare

Cebu Pacific offers the lowest available published fare through:

 Our website www.cebupacificair.com

 Our Call Center
 Manila +632-8702-0888
 Cebu +6332-230-8888
 Hong Kong +852-397-33800
 Singapore +65-315-80808
 Australia +612-9119-2956
 Korea +822-6971-7950 to 51
  USA Toll Free Number 1-855-5CEBPAC
 Our sales offices
 Our authorized agents

Recommendation/s:
Book in advance to get lower fares, particularly during peak season and holidays.

2. Notify guests of known delays, cancellations and diversions If our operations will be
affected by delays, cancellations or diversions, we will inform our guests by following
guidelines below:

Planned disruption - for flights departing 15 minutes earlier or will be delayed more
than 30 minutes, SMS and email notifications are sent to affected guests. A call-out may
follow if affected guest has not acknowledged receipt of earlier notifications. Notification
will also provide through Cebu Pacific's telephone reservation system and social
networking sites.
On-the-spot disruption - guests are notified immediately as soon as the disruption is
known and every 30 minutes thereafter for updates in case of creeping delay.
Notification is provided at check-in if disruption is already known and at the boarding
gate area.
US Airport flight displays under Cebu Pacific's control will be updated within 30 minutes
after Cebu Pacific becomes aware of a flight cancellation, diversion or delay of 30
minutes or more. Where a US airport flight display is not under Cebu Pacific's control,
Cebu Pacific will notify the airport within 30 minutes after Cebu Pacific becomes aware
of a flight cancellation, diversion or delay of 30 minutes or more.

Recommendation/s:

Provide accurate and complete contact details so that Cebu Pacific may contact you in
case of disruptions.

3. Deliver baggage on time

Cebu Pacific endeavors that all checked baggage arrives at your destination. In case of
baggage irregularity, please be guided by the following:
 Delayed Baggage

If baggage did not arrive with the guest, immediately file a Property Irregularity Report
(PIR) while still at the airport premises of the arrival station. We provide a first need
compensation if guest is not a resident at the destination.

Damaged Baggage

If baggage is damaged, immediately file a Property Irregularity Report (PIR) while still at
the airport premises of the arrival station. If damage is proven not to be caused by
regular wear and tear, we compensate based on the Philippines Air Passenger Bill of
Rights or the Warsaw Convention)

Lost Baggage

If baggage is not found within seven (7) days from date of arrival, it is considered lost.
Cebu Pacific provides compensation for every day it is missing starting from the 25th
hour of delay. Compensation is based on the Philippines Air Passenger Bill of Rights or
the Warsaw Convention.

Cebu Pacific will make every effort to return mishandled baggage within 24 hours, and
will reimburse affected guest for any fee charged to transport a bag if that bag is lost.

Recommendation/s:

Ensure that baggage has proper identification labels with name, address and contact
details, and are packed properly that would withstand the stress of airport handling.

Do not carry valuables and fragile items inside your checked baggage.

4. Allow reservations to be held or cancelled without payment

Cebu Pacific follows the book-and-buy model.

 For flights to or from the US, refunds are allowed for reservations made seven (7) days
or more prior to your departure, provided that the refund request is made within twenty
four (24) hours of initial reservation.

5. Provide prompt ticket refunds Cebu Pacific's fares are non-refundable (including any
charges associated with the fare).

For guests due a refund who purchased their reservation with a credit card, Cebu
Pacific will facilitate refund within ten (10) working days. However, due to different billing
cycles, a credit may not reflect a refund immediately. For flights to or from the US, a
credit statement will be submitted to the credit card issuer within seven (7) working days
after receipt from the guest of a complete refund request.

For guests who purchased with cash, refund will be given outright if refund request is
done at the office where booking is made. For flights to or from the US, refunds of
payments made in cash or by check will be made within twenty (20) working days after
receipt from the guest of a complete refund request.

Where appropriate, refunds will include amounts paid for optional services that the
guest was unable to use due to flight overbooking or cancellation.

6. Properly accommodate passengers with disabilities and other special needs, including
during tarmac delays

We will provide our guests who have special needs, including passengers with
disabilities, with the level of attention, respect and care they require.

Recommendation/s:

During booking, notify us with any special assistance you might need for your travel.
This will alert us to your requirement and will help us better prepare to assist you.

7. Meet guests' essential needs during lengthy onboard delays Cebu Pacific will provide
those accommodations listed in our Tarmac Delay Contingency Plan (with link)

8. Handle denied boarding guests with fairness and consistency in the case of
overbooking
 In case of denied boarding situations, we offer the following to denied guests:

 Confirmed seat on the next available flight

 Option to rebook within thirty (30) days
 Option for full Travel Fund
 Option for full refund
 Monetary compensation (subject to the Philippines Air Passenger Bill of Rights,
or for flights originating in the US, subject to Part 250 of the US Department of
Transportation's regulations) or travel voucher

9. Disclose travel itinerary, cancellations, frequent flyer rules, aircraft seating

configurations and lavatory availability

Cebu Pacific will strive to provide our guests with accurate, up-to-date information about
their travel thru our website, Call Center, sales offices and agents.

You may also visit our Conditions of Carriage (with link to GTC) for airline policies.

10. Ensure good customer service from code-share partners

Cebu Pacific does not participate in any code-share agreements with other airlines

11. Ensure responsiveness to guest complaints

You may contact Cebu Pacific with your compliments or complaints through:

Website: https://www.cebupacificair.com/pages/guest-feedback

Cebu Pacific Air

Airline Operations Center

Mail:
Domestic Road, Pasay City

1301 Philippines

Telephone: 1-855-5CEBPAC
 For flights to or from the US, guests may also submit complaints to the US Department
of Transportation:

Website: http://www.dot.gov/airconsumer

Office of Aviation Enforcement and Proceedings

Airline Operations Center

Mail:
Domestic Road, Pasay City

1301 Philippines

Telephone: 1-855-5CEBPAC

We encourage guests to provide feedback using the website so that cases may be
given a reference number and you may track your case. An acknowledgment email will
be sent to the sender within twenty four (24) hours of feedback receipt. All cases which
require minor investigation are closed with seven (7) working days. For those requiring
further investigation, we strive to close within sixty (60) days.

12. Identify the services to mitigate guest inconveniences resulting from cancellations and
misconnections

Cebu Pacific follows below flight disruption policy for on-the-spot disruptions at the
terminal:

For disruptions less than 1 hour: Fare rules shall apply

For disruptions 1 hour to less than 3 hours:

 Options available to guests are:

 Rebooking to another flight within thirty (30) days without charges
 Full Travel Fund
 Full refund

For disruptions 3 hours to less than 6 hours:

 Options available to guests are:
  Rebooking to another flight within thirty (30) days without charges
 Full Travel Fund
 Full refund

For disruptions 3 hours to less than 6 hours:

 Options available to guests are:

 Rebooking to another flight within thirty (30) days without charges
 Full Travel Fund
 Full refund
 Serve food on the 3rd hour and every 3 hours of delay thereafter

For disruptions 6 hours and up:

 Options available to guests are:
 Rebooking to another flight within thirty (30) days without charges
 Full Travel Fund
 Full refund
 Amenities we may extend to guests are:
 Serve food on the 3rd hour and every 3 hours of delay thereafter
 One-way travel voucher
 Hotel stay (if necessary)
 Transport (if necessary)
 Warehousing and Logistics

CEB X

The fastest and most effective way to get your URGENT or RUSH cargo to its
destination.

CEB X requires confirmation from the CEB Cargo office and is on a first-come, first-
served basis. Cargoes are accepted only up to two (2) hours prior to the published
schedule of flight departure.

Blocked Space Arrangement

This service is offered to cargo customers who require a fixed and guaranteed space
with CEB Cargo. For a guaranteed space allocation on selected flight, we negotiate
rates on a per requirement basis. Cargoes are accepted only up to two (2) hours prior to
the published schedule of flight departure.

ATR Charter

CEB Cargo offers chartered services using the ATR72-500 aircraft. It has an a verage
capaciity of 5,500kg loose cargo with a maximum gross weight of 50kg per piece.

Transshipments

CEB Cargo provides efficient and seamless inter-island connections via Cebu Pacific's
four major hubs: Manila, Cebu, Clark and Davao. Move your cargo shipments to onward
destinations that have no direct flights from the point of origin.
 Cargo Interline

CEB Cargo has interline partners for cargo to and from Europe, Africa and the
Americas. Send your cargo through our 15 interline partners listed here.

Packaging Services

Protect shipments from getting wet or damaged for all flights from Manila to destinations
in Luzon, Visayas and Mindanao. Offerings are:

 Plastic jack wrap services

 Plastic sheets
 Bubble wrap
 Styro boxes
 Manufacturing

Budget airline Cebu Pacific (CEB) will start flying a direct service from Manila to
Kaohsiung, Taiwan on June 7, 2008 with a special introductory fare offer of P999 only.
The Kaohsiung seat sale will run from February 20 to 25, 2008.

The Manila– Kaohsiung service will use CEB’s brand new 179-seater A320 aircraft and
is scheduled to operate every Tuesday, Thursday, and Saturday. The flight departs from
Manila at 2:50pm, and arrives in Kaohsiung International Airport at 4:35pm. The return
flight leaves Kaohsiung at 5:20pm and arrives in Manila at 7:05pm.

The direct Manila to Kaohsiung service is introduced with a promotional fare offering of
P999 one-way, a price reduction of almost 73% from the current fares for this
route. This may be availed for travel from June 7 to August 31, 2008. Fare is exclusive
of surcharges and government tax.

CEB is the only Philippine carrier operating this route. Kaohsiung is the second city CEB
will operate to in Taiwan. CEB currently operates a daily service to Taipei from Manila
and a thrice weekly service from Cebu to Taipei.

“We are very excited with the opening of this new international destination for CEB
because we are confident that this will stimulate business activities for both the
Philippines and Taiwan. Our Manila–Kaohsiung service will also provide better access
to the industrial and manufacturing development zones of both countries,” Lance
Gokongwei, CEB President and CEO said.

Hon. Joseph Durano, Secretary of the Department of Tourism, said, “We are glad that
Cebu Pacific is opening direct flights from Manila to Kaohsiung in Southern
Taiwan. This new development also supports our marketing strategy for 2008 as we
expand our campaign in other key cities in Taiwan tapping new and first time travelers
to the Philippines. Having the direct flights to Manila from Kaohsiung will provide easy
access and convenience for our Taiwanese tourists.”

After the seat sale, the lowest ‘Go’ fare to Kaohsiung starts from P1,499 one-way, which
is still 61% lower than the current fares for this route. The best way to purchase tickets
is through CEB airline’s website, www.cebupacificair.com.

CEB also announced today its new offering of a direct Cebu-Macau service starting
April 5, 2008. The new route is likewise being announced with a promotional fare of
P999 one-way, exclusive of government taxes and surcharges.

Finance
Quarterly
Forthe period ended : Sep 30, 2019
Currency(and units, if applicable) : Php
Balance Sheet

Item Period Ended Fiscal Year Ended(Audited)

Current Assets 29,562,988,385 25,944,665,488

Total Assets 158,581,493,520 129,391,482,516

Current Liabilities 40,927,270,427 34,702,883,709

Total Liabilities 116,063,511,786 89,289,349,237

Retained Earnings/(Deficit) 34,557,135,127 32,009,151,402

Stockholders' Equity 42,517,981,734 40,102,133,279

Stockholders' Equity - Parent 40,317,221,907 38,347,965,303

Book Value Per Share 70.76 66.57

Income Statement

Item Current Year (3 Months) Previous Year (3 Months) Current Year-To-Date Previous Year-To-Date

Gross Revenue 18,921,600,025 16,201,683,087 63,624,574,198 54,036,567,979

Gross Expense 18,036,803,432 16,825,731,617 53,808,585,805 49,900,458,438

Income/(Loss) Before Tax -440,218,233 -864,821,778 7,469,080,386 2,765,430,558

Net Income/(Loss) After Tax -384,308,761 -518,433,320 6,754,400,625 2,780,629,859

Net Income/(Loss) Attributable to Parent -384,308,761 -518,433,320 6,754,400,625 2,780,629,859

Earnings/(Loss) Per Share (Basic) -0.64 -0.86 11.28 4.59

Earnings/(Loss) Per Share (Diluted) -0.64 -0.86 11.28 4.59

 SWOT ANALYSIS
 Strong relationship with existing
suppliers.
Strengths  Superior product and services quality.
 Managing Regulations and Business
Environment.
 Successful Go to Market Track Record.
 Strong Brand Equity and Brand
Awareness.
 Low Return on Investment.
Weaknesses  Implementation of Technology in
Processes.
 Track record on environment
consideration is not very encouraging.
 Customer Dissatisfaction.
 Increasing Standardization.
Opportunities  Growing Market Size and Evolving
Preferences of Consumers.
 Increase in Consumer Disposable
Income.
 Lucrative Opportunities in International
Markets.
 Squeezing Middle Class in Developed
and Developing World.
Threats  Government Regulations and
Bureaucracy.
 Increasing costs component for working
in developed market because of
environmental regulations.
 Culture of sticky prices in the industry.
 SMART ANALYSIS

Specific

 Maximize use of airport slots by

introducing more capacity with
the same frequency.
Measurable
 Build direct connections from our
hubs outside Manila.

 Route optimization.
 Investments in advanced
Achievable avionics technology.

 Formulation of risk policies,

strategies, principles, framework
and limits.
Realisitic
 Management of the fundamental
risk issues and monitoring of
relevant risk decisions.

 200 million passengers flown by

2020.
Time Bound  300 million passengers flown by
2022.