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AirAsia Philippines Zest


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113 replies to this topic

#1 Sri Ramani K.

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Posted 08 December 2010 - 06:55 PM

http://biz.thestar.c...36&sec=business

Manila: AirAsia Bhd, Southeast Asia's biggest budget carrier, plans to form a Philippine unit by the first quarter of next year, Philippine Board of Investments head Cristino Panlilio said.

Bloomberg reported that the Philippine venture would be formed with Antonio Cojuangco, a former chairman of Philippine Long Distance Telephone Co, and start flying domestic and overseas routes in 2011, Panlilio said by phone yesterday.

Cojuangco is President Benigno Aquino's cousin and a nephew of San Miguel Corp chairman Eduardo Cojuangco.

AirAsia may expand into the Philippines as airlines including Cebu Air Inc increase their fleets and services to meet rising demand in the archipelago.

The government has set a target to double tourism arrivals in six years to help spur economic growth. An e-mail to AirAsia chief executive officer Datuk Seri Tony Fernandes didn't immediately receive a reply.

Tiger Airways Holdings Ltd, the budget carrier backed by Singapore Airlines Ltd, on Nov 23 said it would lease two planes to South East Asian Airlines, or SEAir, and form a marketing venture to expand into the Philippines.

SEAir flights from Clark, north of Manila, to Singapore will start Dec 16 and be offered through Tiger Air's website.

AirAsia, South-east Asia's largest budget carrier which recently doubled its third quarter earnings, has said it wants to not only expand operations in Malaysia but also expand its ventures in Indonesia and Thailand to take advantage of rising regional travel demand.

The airline reportedly plans to add as many as 12 aircraft a year and was targeting opportunities in Vietnam, the Philippines, India and China.


VietJet didn't set off, but they're still looking elsewhere! On another note, Happy 9th Birthday! :drinks:

#2 Tamizi Hj Tamby

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Posted 08 December 2010 - 06:59 PM

Hmm,another interesting development from AK.

#3 flee

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Posted 08 December 2010 - 07:08 PM

VietJet didn't set off, but they're still looking elsewhere! On another note, Happy 9th Birthday! :drinks:

Well this was also on the back burner for a few years already - also stalled by protectionism. With the LCCT delayed they need to send more of their planes elsewhere. So it looks like they are pursuing this while waiting for the Vietnam pot to boil...

#4 Naim

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Posted 08 December 2010 - 08:50 PM

then can visit those western pacific islands ... yay!

#5 Mohd Azizul Ramli

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Posted 08 December 2010 - 08:56 PM

Well this was also on the back burner for a few years already - also stalled by protectionism. With the LCCT delayed they need to send more of their planes elsewhere. So it looks like they are pursuing this while waiting for the Vietnam pot to boil.

Agree, I was about to mention that as well. Philippine Air Asia was a long delayed project earlier on went dead end because of protectionism by the Philippine government. I hope this time around with the 'correct' local partner (President's cousin and also nephew of San Miguel Chairman) the plan will finally take off. The Philippine is a huge catch for AirAsia.

Among the developing countries in ASEAN with massive population (+- 100 million people) that still void in AirAsia's radar is now only Vietnam. Hopefully things will turn out to our favour. *fingers crossed*

#6 Andrew K

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Posted 09 December 2010 - 01:49 AM

I see a new cash cow. Manila-Hong Kong/Singapore. :D

#7 Mohd Azizul Ramli

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Posted 11 December 2010 - 02:33 PM

From an industry insider:
  • AirAsia likely to take 40% stake in the Philippines unit
  • Deal may be sealed as early as next week
  • Plans North Asia & China routes from the Philippines
All these were reported by Dow Jones 3 days ago quoting sources, but story is available to subscibers only.

#8 Peter Smith

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Posted 11 December 2010 - 07:13 PM

There is a large billboard here in Perth saying "AirAsia: We should change our name to Air Everywhere"

#9 Mohd Azizul Ramli

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Posted 16 December 2010 - 05:00 PM

Looking all set and splendid! AirAsia Philippines is shooting its way very fast.

Air Asia Philippines Plans Maiden Flight In March Next Year

MANILA (Dow Jones)--Air Asia Philippines, the local affiliate of the Malaysia-based budget carrier (5099.KU), plans to launch its maiden flight in March next year, the vice chairman of the new company said Thursday.

"We will lease three to five Airbus A320s within the next few months," Michael Romero, who owns 20% of Air Asia Philippines, told reporters prior to signing the deal to form the new carrier. Air Asia holds 40% of the carrier.

Romero said the carrier will focus on regional routes and hopes to fly around 1 million passengers a year.

In five years' time, Air Asia Philippines expects to have a 15-aircraft fleet.



#10 flee

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Posted 16 December 2010 - 06:23 PM

Check out their Facebook page!

http://www.facebook....07283883?v=wall

From AFP:

MANILA, Philippines - Southeast Asian budget carrier king Tony Fernandes on Thursday launched a joint venture airline in the Philippines, giving what he described as an underserved market a big jolt of competition.

AirAsia Philippines, in which he will hold a 40 percent stake, should begin flight operations in August next year using either Clark or Subic -- two former US military bases near Manila -- as its base, the Malaysian said.

"We do expect to be profitable straight away," Fernandes told a news conference without giving fleet, destination or capitalisation details.

He said internal funds would capitalize the joint venture, in which Filipino investors led by Antonio Cojuangco, a cousin of Philippine President Benigno Aquino III, hold a combined 60 percent, the minimum local equity stake set by law.

"Many of the routes that Air Asia Philippines will be going to are already being exploited by other Air Asia companies, so the set-up cost for Air Asia Philippines is very low," Fernandes said.

This will allow the joint venture to offer low fares compared with its rivals, he added. Local competition includes surging budget carrier Cebu Pacific Air and loss-making flag-carrier Philippine Airlines (PAL).

"Cebu Pacific has done a fantastic job," Fernandes said, praising its equally low-cost, no-frills model but saying there was more than enough room for the AirAsia group to grow.

"I think PAL could have, I'm sure, done a better job," he added.

Kuala Lumpur-based AirAsia has set up similar joint ventures in Thailand and Indonesia and has previously announced plans to set up a unit in Vietnam.

However, Fernandes said Thursday that AirAsia was now giving priority to the Philippine joint venture before proceeding with the Vietnam project.

The flashy 46-year-old tycoon, who also heads the Lotus Formula One team, said that just a tiny segment of the Philippine population of 95 million people were currently making use of air travel, giving the project huge potential.

Marianne Hontiveros, a Filipino music industry executive, will be the AirAsia Philippines chief executive, with Cojuangco as chairman.

"We need tourism badly in our country, and we have so much to offer," Hontiveros told the news conference.

#11 Mohd Azizul Ramli

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Posted 16 December 2010 - 06:41 PM

Dow Jones updated their news.

UPDATE: AirAsia Philippines Plans Maiden Flight In September
(Recasts lead, adds comments of AirAsia CEO, other executives.)
By Cris Larano

Of DOW JONES NEWSWIRES

MANILA (Dow Jones)--AirAsia Philippines Inc., the newly formed local affiliate of the Malaysia-based budget carrier AirAsia Bhd(5099.KU), will launch its maiden flight in September and fly to regional markets within a four-hour radius.

The timing and number of destinations will depend on regulatory approval, Tony Fernandes, group chief executive of AirAsia, told journalists Thursday in Manila after signing the joint venture agreement establishing the local carrier. Asia's largest low-cost carrier by fleet is taking a 40% stake in the new airline.

Fernandes said AirAsia Philippines has yet to decide whether to choose the airport in Subic Freeport or the one at the Clark special economic zone as its hub.

Prior to the joint venture's signing, Michael Romero, vice chairman and holder of a 20% stake in the new airline, said the maiden flight could happen as early as March and the airline will initially deploy three to five Airbus A320s.

Romero said the carrier hopes to fly around 1 million passengers a year and have a fleet of 15 airplanes within five years.

AirAsia already flies to the Philippines, but Fernandes said it was necessary to set up a local carrier to allow it to fly passengers from the Philippines to other destinations other than Malaysia.

Among AirAsia Philippines' owners is Antonio Cojuangco, a local businessman and a cousin of President Benigno Aquino.

Cojuangco brushed aside suggestions Fernandes chose him as partner because of his political connection. "He (Fernandes) decided to open AirAsia in the Philippines before the elections," said Cojuangco. He was referring to May's presidential elections, which Aquino won by a landslide.

Discussions with Fernandes about a possible joint venture started in 2006, but was only finalized last year when Romero came on board after Fernandes helped set up the Asean Basketball League, Cojuangco added. Romero manages the Philippine Patriots, the professional basketball team that AirAsia now sponsors.

Cojuangco had managed Philippine Airlines in 1993, while Romero owns a company that runs a seaport in Manila.

-By Cris Larano, Dow Jones Newswires; 632-848-5051; cris.larano@dowjones.com

So the maiden flight is in March, August or September now LOL?

And just look at how they built their 'cable'. Impressive!

#12 flee

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Posted 16 December 2010 - 08:38 PM

Dow Jones updated their news.


So the maiden flight is in March, August or September now LOL?

And just look at how they built their 'cable'. Impressive!

I think March is over optimistic. How can they put their infrastructure in, get the necessary approvals and licences in such a short time? Perhaps, only the President's cousin can achieve this sort of accelerated startup! ;)

#13 flee

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Posted 16 December 2010 - 09:25 PM

From Flightglobal:

Malaysia-based low-cost carrier AirAsia will set up a new joint venture carrier in the Philippines, which will begin operations in the third quarter of 2011.

It will hold a 40% stake in the carrier through its wholly-owned subsidiary AirAsia International, says the carrier. Philippine investors Antonio O. Cojuangco Jr, Michael R. Romero and Marianne B. Hontiveros will own the remaining 60%, with each individual holding a 20% stake.

The new airline will focus on markets in China, South Korea and Japan, says AirAsia. It will also concentrate on "existing prime markets" like Singapore, Hong Kong and Taiwan.

"These sectors will enhance AirAsia's ASEAN regional expansion by providing AirAsia with additional routes and destinations and linking the destinations with AirAsia's already comprehensive route network," adds the airline.

AirAsia Philippines will begin flights in the third quarter of 2011, subject to it gaining the necessary regulatory approvals.

An AirAsia spokeswoman says it is not clear yet how many aircraft will be based in the Philippines. The airline group operates a mostly Airbus A320 fleet.

AirAsia says it will provide "technical, operational and commercial support on an arm's length basis" to the joint venture to ensure uniformity throughout the airline group.

"We are proud to extend AirAsia's successful low-cost business model to the Philippines and make it affordable for the average Filipino to travel domestically and regionally. The low cost airline will also offer greater access to affordable travel to the Philippines which will help the economic growth of the country," says AirAsia's group CEO Tony Fernandes.

AirAsia already operates flights to Manila's Clark Airport from Kuala Lumpur and Kota Kinabalu. Its new joint venture in the Philippines will compete against other low-cost carriers in the country like Cebu Pacific, Airphil Express and Zest Airways.

#14 flee

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Posted 16 December 2010 - 10:32 PM

Here is a report from the Philippine media: http://www.abs-cbnne...erations-august

#15 Mohd Azizul Ramli

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Posted 17 December 2010 - 06:27 PM

Local competition includes surging budget carrier Cebu Pacific Air and loss-making flag-carrier Philippine Airlines (PAL).

"Cebu Pacific has done a fantastic job," Fernandes said, praising its equally low-cost, no-frills model but saying there was more than enough room for the AirAsia group to grow.

And Cebu Pacific has responded in Dow Jones. I think any airline should be very worried if AirAsia is their direct competitor.

Cebu Air: Ready For Stiffer Competition After AirAsia Entry

MANILA (Dow Jones)--Cebu Air Inc. (CEB.PH), better known by its trade name Cebu Pacific--the Philippines' largest budget carrier by sales, said Friday it is ready for stiffer competition, a day after Malaysia-based AirAsia Bhd (5099.KU) helped set up a new local low-cost carrier.

"We are lean-and-mean efficient, with a very young fleet of Airbus aircraft and a highly-motivated team," said Candice Iyog, vice president for marketing and distribution for Cebu Pacific, in a statement. "This year, our financial performance ranks among the best in the world. We are ready for more competition in our own country and in theirs."

Iyog noted that Cebu Pacific will take delivery of its 13th Airbus A320 today and its 14th A320 by the end of the month. By the end of 2011, Cebu Pacific will have a fleet of 10 Airbus A319, 19 Airbus A320 and 8 ATR 72-500 turboprop aircraft--all brand new, Iyog added.

"We will remain consistent in offering the lowest year-round fares in all 33 domestic and 16 international destinations we operate in," she said.

AirAsia Philippines expects to mount its maiden flight by September next year. It plans to use A320s in regional routes within a four-hour flight of the Philippines.



#16 suadrif

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Posted 17 December 2010 - 09:55 PM

Can't wait to see how Cebu Pac will battle against AK... Hopefully both airlines will succeed :)

#17 Adrian M

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Posted 19 February 2011 - 10:43 AM

AirAsia Philippines definitely forming into place now.

Posted Image
Want to paint the skies RED with us? Then join us as AirAsia Allstars!

We are recruiting Captain & First Officer for AirAsia Philippines! Come meet us on 26th & 27th Feb 2011 from 10 a.m. - 4 p.m. Click the map for details!


#18 Tamizi Hj Tamby

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Posted 19 February 2011 - 11:29 AM

Best of luck to AirAsia Philippines; and it's definitely a interesting battle to see between them and Cebu Pacific.

#19 flee

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Posted 20 February 2011 - 12:52 AM

Posted Image

Its not just Cebu Pacific that AirAsia Philippines need to compete with. There is another budget airline - it is called AirphilExpress. Currently its only international destination is Singapore.

More information on them here: http://www.airphilexpress.com/

#20 dean hizudy

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Posted 20 February 2011 - 12:46 PM

airphilexpress was previously known as Air Philippines, subsidiary of PAL.

Edited by Jonathan Kong, 20 February 2011 - 01:32 PM.





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