BIZ BUZZ: AirAsia bets bigger on PH
Budget carrier AirAsia is betting on the Philippines again. And it’s betting big this time.
Finance Secretary Ralph Recto met with AirAsia CEO Anthony Fernandes to discuss strategic opportunities for the airline’s expansion in the Philippines.
It was one of the several meetings that Recto had on the sidelines of the World Economic Forum (WEF) in Davos-Klosters, Switzerland, from Jan. 20 to Jan. 24.
The Department of Finance (DOF) said AirAsia plans to establish a maintenance, repair and operations (MRO) facility in the country, which is expected to generate more jobs.
The investment will also position the Philippines “as a regional hub for aviation services,” the DOF added.
For AirAsia, such an undertaking would meet its need for better aircraft availability as the aviation sector grappled with a global supply chain crunch amid the lack of spare parts. Jets have been parked for a longer period of time, resulting in the cancellation or suspension of flights and leaving passengers stranded in airports.
It’s a win-win situation for all. —Ian Nicolas P. Cigaral
Filinvest’s secret weapon
In 1955, Filinvest Development Corp. founder Andrew Gotianun had a dream: to build a conglomerate that would both support the women in his family and contribute to nation building.
As told by his daughter, Josephine Gotianun-Yap, Andrew had left Cebu after selling the family’s shipping business and made a leap of faith in an entirely new city.
Newly introduced to the world, Josephine was among the women counting on her dad to pull through. After all, Andrew had made a gamble on Filinvest and borrowed money against the family’s properties, causing “great anxiety,” quipped Josephine.
But as she recalls, Andrew had a secret weapon: family matriarch Mercedes Gotianun, a Manileña and magna cum laude from the University of the Philippines.
“They often quote from the Longfellow poem on Hiawatha to describe their relationship. The quote is about a bow and arrow: useless without each other,” Josephine said, referring to “The Song of Hiawatha” by poet Henry Wadsworth Longfellow.
And 70 years later, Filinvest has become one of the country’s most well-known conglomerates present in nearly every sector.
Now worth P42.2 billion, Filinvest already managed to shatter its revenue and net income record in 2024.
“Anniversaries of business conglomerates are important not so much due to [the conglomerate’s] age per se, but how it has progressively evolved, survived crises and transformed itself into meeting the demands of the times and in contributing to nation building,” Josephine said.—Meg J. Adonis
AREIT, Chinabank in; Wilcon, Nickel Asia out
Just as the market closed last Friday, the Philippine Stock Exchange Inc. (PSE) welcomed two new members to the 30-company PSE Index (PSEi) as a result of its regular review.
Ayala-led AREIT Inc., the country’s first real estate investment trust (REIT), will make its debut as among the largest and most actively traded companies in the local stock market.
It is also the first REIT to get a PSEi slot, and aptly so: since its listing in 2020, AREIT’s share price has already risen by 48.5 percent to P40.10 each, for a market capitalization of P128.72 billion.
The stock market debut of the commercial and office landlord later opened doors for other REITs to list.
“This shows the immense potential REITs have as an investment product, and serves as a good example for REIT issuers that aspire to maximize this particular type of listing vehicle,” PSE president and CEO Ramon Monzon said in a statement on Friday.
At the same time, Sy family-led China Banking Corp. will make a comeback into the PSEi after 14 years.
These two will replace Nickel Asia Corp. and Wilcon Depot Inc., both of which were transferred to the PSE MidCap index that comprises the 20 largest companies listed on the bourse after those in the PSEi. —Meg J. Adonis INQ
