Cebu Pacific (CEB), the Philippines’ leading domestic air carrier, shifts to all-inclusive fare format and is reducing its domestic fares permanently by as much as 32% to encourage more people to fly amid rising fuel prices.

Candice Iyog, Cebu Pacific vice president for marketing and product, said the new lower all-inclusive fares will take effect on June 12, 2008. This includes the fuel and insurance surcharge, aviation security fee and 12% VAT.

The ‘all-in’ pricing format is introduced with a seat sale across Cebu Pacific’s domestic network. The promotional offer will run from June 12 to 17, 2008 and is valid for travel on July 1 to October 15, 2008. There are more than half a million seats allocated for this promotion.

‘All-in’ fares for short sectors such as Manila-Legaspi are at P699 one-way while a one-way Manila-Cebu flight would cost P999 and a Manila-Davao sector would cost only P1,499 during the seat sale. At seat sale levels, these reduction represent savings of up to 56% over today’s rate.

Iyog also said Cebu Pacific is shifting to an ‘all-in’ pricing format so passengers will immediately know the total amount they need to pay and can easily compare Cebu Pacific fares with other modes of transportation including ferries and buses.

After the seat sale, the one-way Manila-Davao would cost P2,499 ‘all-in’ while a one-way Manila-Cebu is sold at P1,499. On the other hand, out of pocket cost for one-way Manila-Legaspi is P999 one-way.

“We would like to continue domestic tourism’s growth momentum by introducing reduced all-in fares. We want to assure the public that Cebu Pacific will do everything possible to keep air fares down because this is also good for the economy.” Iyog said.

Iyog also added that they are doing this to respond to the public’s desire for a more transparent and simple communication of fares.

“We really hope that this new move is deemed as a positive change in the industry and we encourage other airlines to do the same.” Iyog emphasized

Cebu Pacific has a fleet of ten A319s, eight A320s, and two ATR 72-500 aircraft. The airline flies to 16 international destinations with the addition of Kota Kinabalu next month. It will also add Tuguegarao and Naga,in its domestic network this June and San Jose (Mindoro) in July.