The Philippine government is tapping budget airline Philippines Air Asia as a partner for official domestic trips.
The agreement will provide discounted airfares for public servants while providing a steady stream of business for Air Asia Philippines, which is aggressively expanding against larger rivals such as Cebu Pacific Air and Philippine Airlines.
The so-called government fares agreement was signed Wednesday between the airline, whose operator is a regional giant based in Malaysia, and the Procurement Service-Department of Budget and Management (PS-DBM).
Under the deal, AirAsia will provide discounted airfares to all official government domestic flights. Moreover, this will come with free web admin fees, free 20-kilogram baggage for corporate full fares, rebooking fees at no cost on selected packages and bundled services.
“As government officials, it is our duty to get the most out of the limited public resources entrusted to us,” Budget secretary Benjamin E. Diokno said in a statement on Wednesday.
All airline transactions will be made via the Procurement Service website.
“We are your partners in nation building and for the men and women in public service we will go the extra mile to give you and every Filipino traveler what we all truly deserve: Seamless connectivity, world-class service and affordable fares,” said Dexter Comendador, CEO of AirAsia Philippines.
AirAsia Philippines corners 10 percent of the domestic market.