AirAsia vows to offer Philippines lowest fares
LOOMING COMPETITION AirAsia’s Philippine unit is set to start operations in October and intends to offer the lowest fares among budget carriers.
The Philippine unit of Malaysian giant AirAsia aims to be a major player in the country’s air travel sector by offering the lowest fares in a market dominated by budget carriers.
The airline, which will be known as AirAsia Inc., will start operations by October this year, using two Airbus A320 jets leased from its Malaysian parent. The Airbus A320 is the workhorse plane model used by local budget carriers like Cebu Pacific and Air Philippines.
“We’re applying for four new routes with the CAB (Civil Aeronautics Board),” said businessman Antonio “Tonyboy” Cojuangco, one of the airline’s three major Filipino stockholders.
Together with Cojuangco in the venture are businessman Michael Romero and Marianne Hontiveros. Each of the three will hold 20 percent of the new company while AirAsia Berhad chair Tony Fernandes will hold the remaining 40 percent. This makes him the company’s single biggest shareholder.
Cojuangco, in a chance interview with reporters last week, said that if plans push through, the airline would likely have eight to 10 planes operating international flights from its chosen hub, Clark Freeport in Pampanga.
“We will be a major player. Our plan is to offer the lowest fares in the country,” he said.
