AirAsia to start PH operations in August

Manila Standard Today: Business
December 17, 2010
by Jeremiah F. de Guzman

AirAsia Inc., the airline company incorporated by Malaysia’s AirAsia International Ltd. and a group of Filipino businessmen led by Antonio Cojuangco, said Thursday it would allot $25 million for the carrier’s regional operations starting in August next year.

“The time is just right to start a new venture in the Philippines. We are committed to make this place more affordable and accessible through offering the lowest fare possible,” said AirAsia group chief executive Tony Fernandes in a press briefing.

Cojuangco was elected by the AirAsia board as chairman with former TV personality Marianne Hontiveros as president and chief executive and businessman Michael Romero as vice chairman. The three own 20 percent each of the carrier’s equity while the rest is held by Fernandes.
Fernandes said the airline would start flying to regional destinations in August using the brand name AirAsia Philippines. He said the carrier would choose between between Subic and Clark as its hub.
“Our target is to be able to decide in the next two weeks. Our only consideration in choosing the hub is the cost so we can offer low fares. We’ll go wherever we get the best deal,” Fernandes said.
He said the airline would have an initial authorized capital stock $25 million to jump-start operations. “With $25 million, it will be more than enough to make this airline profitable,” fernandez said.
“A lot of hard work has already been done. We already have the aircraft and the networks. Set-up cost for AirAsia Philippines is very low,” he said.

Diosdado Macapagal International Airport president and chief executive Victor Luciano told reporters in a separate interview that Clark was the best hub for AirAsia because its facility is bigger than that of Subic.

“We are looking at incentives. We can offer possible discounts on aeronautical fees,” he said.
Fernandes said the carrier would expand its operations by putting up hubs in Cebu or Zamboanga City once it gained ground in the local market .

Romero said the new carrier was looking to have a fleet of 15 aircraft in the next five years.
“Hopefully, we can have about five million passengers in five years,” Romero said, adding that the carrier’s target in the first year was about a million inbound and outbound passengers.