SINGAPORE—AirAsia parent company Capital A is looking to invest $1 billion into the Philippines, with an eye on developing its network from Mactan-Cebu International Airport.
Capital A CEO Tony Fernandes said the company wants to increase the fleet to 50 new aircraft—with a focus on Cebu—as well as setting up a maintenance, repair and overhaul venture in Cagayan de Oro, on the island of Mindanao, local news outlet Philstar reports.
AirAsia Philippines currently has 18 in-service Airbus A320s, and another seven stored or parked.
Already flying from Cebu to China, Japan, Malaysia, and South Korea, the airline plans to establish links to destinations in Australia, Bali, and Bangkok, Fernandes said.
The AirAsia Philippines executive is in Cebu to sign a partnership with Aboitiz Group’s UnionDigital Bank to develop a logistics business in the Philippines. Aboitiz Group also has a 33.3% stake in Mactan-Cebu International Airport.
CAPA – Centre for Aviation and OAG Schedules Analyser data shows that AirAsia Philippines is the third-largest airline in Cebu, after Cebu Pacific and Philippine Airlines, in terms of available seat kilometers. The airline’s top destinations are Philippine capital Manila, Seoul Incheon, and Singapore.
Fernandes continued to call for the privatization and construction of new low-cost airports in the Philippines, saying that the privately run Cebu Airport is a “fantastic experiment” and a case study for successful airport development.
He said airport developers and investors should consider low-cost airports that are cheaper, faster to build and operate, and appeal to passengers traveling point to point.
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