Philippines low-cost carrier Cebu Pacific is eyeing New Zealand as a possible destination following a new air service agreement between the two countries.

According to reports out of Manila, Cebu is so far the only carrier to register interest in the route. Its application will be heard next month.

Under the agreement reached last month, 21 flights will be permitted between the two countries, up from three at present.

The airline also plans to launch services to five destinations in the Middle East and one in Australia this year using Airbus A330-300s.

Earlier this month the European Union lifted a ban on Cebu Pacific flying to Europe, citing the airline's improvement in security and safety.

The airline, which operates a fleet of 50 Airbus aircraft, is the biggest carrier in the Philippines and one of the largest budget airlines in Asia.

CAPA centre for aviation said the airline was in a "particularly strong and improving position" in the Philippine domestic market.

(Source NZ Herald)