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Sri Ramani K.

AirAsia Philippines Zest

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Just a matter of time before airasiazest will close down, such a small operation left now. Cebu Pacific is mighty strong and Philippines Airlines Group is dumping seats into the market. Good thing is that Tigerair Philippines is now closing down and Zest Air is bought over.

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From Q4 2013 Bursa Malaysia filing:

 

Associate Company – AirAsia Inc (‘AirAsia Philippines’)

AirAsia Philippines is an associate company which is incorporated in the Republic of the Philippines and is 40% owned by AirAsia Berhad. AirAsia Philippines recorded a net loss of RM24.8 million (quarter ended 31 Dec 2012: net loss of RM22.7 million) in the quarter under review and a net loss of RM90.1 million in the full year 2013 out of which RM nil is equity accounted in the AirAsia Berhad income statement. As the Group’s interest in AirAsia Philippines has been reduced to zero, in accordance with MFRS128, any profits will only be recognized when a total of RM65.8 million of unrecognized losses have been reversed.
Commentary on prospects
The Philippine economy exceeded expectations, expanding by 1.5% in the final quarter of 2013. This was achieved despite setbacks from heavy monsoon rains and the devastation of Typhoon Haiyan. AirAsia Philippines / Air Asia Zest have revised their route plan which will see a reduction in the number of aircraft to 14 in order to remove excess capacity from domestic routes while building more international routes out of Manila and Kalibo. Kalibo, with the famous Boracay Island, has been positioned as a hub to enter into Southern China and Korea which are lucrative international markets.
Forward loads are lower than the previous year while fares are expected to be higher than previous year and previous quarter. The outlook for the first quarter of 2014 should be seen in the context of the current prices of oil and aviation fuel. However, barring any unforeseen circumstances, the Directors remain positive for the prospects of the Group for the first quarter of 2014 and the remainder of the year.

The losses are there but TF seems to have invested a lot of effort in them. I think that they will probably give it at least two more quarters before the situation becomes urgent.

Edited by flee

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AirAsia to establish secondary hub at Kalibo Airport in Jun/Jul-2014

 

AirAsia announced (25-Mar-2014) plans to establish a secondary hub at the Philippines' Kalibo Airport, following expansion of facilities at the airport, including three additional aircraft parking bays. The airline will base crew and at least two aircraft in Kalibo by the end of Jun-2014, expand services to China, Korea, Malaysia and Taiwan and increase domestic Kalibo services to 13 times daily. The airline aims to operate 320 services per week at the airport by Jul-2014. The carrier intends to commence service between Kalibo and Changsha, Chengdu, Guangzhou, Hangzhou, Ningbo, Wenzhou and Xiamen by 25-Jun-2014 and increase Pusan, Seoul and Shanghai services in Jul-2014. The airline currently operates seven times daily Kalibo-Manila service and reported frequent delays due to air traffic congestion at Manila Ninoy Aquino International Airport and lack of adequate parking bays at Kalibo Airport.

 

Report by CAPA

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Air Asia Zest to Rebrand Under Air Asia Philippines

 

AirAsia Philippines is one step closer to consolidating ownership of AirAsia Zest after obtaining the approval of the Philippine Senate to acquire majority control of Zest Airways, which currently operates under the AirAsia Zest brand. Once the transaction is completed AirAsia Zest will rebrand and operate under AirAsia Philippines creating a single brand in the country for Southeast Asia's largest low-cost airline.

 

http://www.philippineflightnetwork.com/2015/01/air-asia-zest-to-rebrand-under-air-asia.html

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It will be interesting how AirAsia Philippines will battle against Cebu Pacific and Philippines Airlines. As of Jan 2014, Cebu Pacific has 51% of the market share and PAL Group has 43%, AirAsia Philippines and AirAsia Zest jointly had only 11%. Remaining one percent was Tigerair Philppines which had folded into Cebu Pacific

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Problem is that they just don't have the slots in MNL. They need to use those slots wisely - maybe they should also operate A333s out of MNL to maximise capacity!

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AirAsia banks on Philippines after first airliner disaster

 

MANILA, Philippines – Passenger traffic coming from the Philippines and its local affiliate’s ongoing re-fleeting program will help the Southeast Asia’s biggest budget airline rise next year, after it grappled with its first crash in Indonesia last December, the chief of AirAsia Group said on Tuesday, November 17.
"I am predicting a big year in 2016 and I am very confident Filipinos are going to love our products," AirAsia Berhad CEO Tony Fernandes told a media roundtable on the sidelines of the Asia-Pacific Economic Cooperation (APEC) CEO Summit 2015 in Makati City.
Asked how the business has been since its first airliner disaster in Malaysia, Fernandes replied: "We are optimistic. [in terms] of passenger traffic, the Philippines is actually the best."

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Philippines AirAsia to reopen Clark base in 1Q18

 

Philippines AirAsia (Z2, Manila Ninoy Aquino Int'l) is planning to reopen a base at Clark Diosdado Macapagal International Airport early next year, the budget carrier's President and Chief Executive Officer has disclosed.

In an interview with Business World magazine, Dexter Comendador said the opening was on track for January 2018.
“Initially, we scheduled it for around November or December… But there was a delayed delivery of the Airbus [A320] units, so it was moved to January,” he said.
The AirAsia Group unit began operations from Clark in 2012 before shifting focus to Manila Ninoy Aquino Int'l in 2013. However, given the capital gateway's worsening congestion, Clark has once more become an attractive option.
Full report:

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