AirAsia to spend $350M for new jets
Credit to Author: LISBET K. ESMAEL| Date: Mon, 12 Aug 2019 17:08:23 +0000
THE AirAsia Group is shelling out $350 million to acquire seven more planes for its Philippine unit, according to its chief.
Talking to reporters in Bangkok late last week, AirAsia Group Chief Executive Officer Tony Fernandes said the move was the Malaysia-based low-cost carrier’s way of strengthening its presence in the country, as this would allow AirAsia Philippines to open new routes and bolster passenger capacity.
AirAsia Philippines’ domestic market share currently stands at 18 percent, nearly double from 2014’s 9.7 percent.
The local unit ended the second quarter with 23 aircraft, operating them from hubs in Manila, Cebu, Kalibo in Aklan province, and Clark in Pampanga province.
While there is no clear timeline yet on when the group expects to reach the number of airplanes to 30, Fernandes said they have started working on it.
Each plane would cost $50 million, according to him.
He said they would “come close” to having 50 aircraft in the next three or four years, “which is something I never thought would be possible.”
Fernandes is optimistic about growth opportunities for AirAsia in the country, banking on the booming tourism industry here.
“I feel we are going to keep growing. We see so much tourism potential in the Philippines, [and not just domestically]. [W]e think many Filipinos want to travel and see the rest of the world,” he said.
AirAsia Philippines flies to and from Manila, Cebu, Kalibo and Clark, as well as the cities of Tacloban in Leyte province, Tagbilaran in Bohol province and Puerto Princesa in Palawan province. It also has 13 international destinations from Manila, namely Kuala Lumpur and Kota Kinabalu in Malaysia; Bangkok, Thailand; Bali, Indonesia; Seoul, South Korea; Taipei and Kaohsiung in Taiwan; Shanghai, Guangzhou and Shenzhen in China; Hong Kong; Macau; and Ho Chi Minh City, Vietnam.