AirAsia Philippines hopes to get 10-20 more aircraft

AirAsia. AFP PHOTO/TED ALJIBE (Photo by TED ALJIBE / AFP)

MANILA, Philippines — Malaysia-based Capital A Berhad is eyeing to beef up AirAsia Philippines’ fleet with 10 to 20 more aircraft over the next five years, a group executive said on Wednesday.

Capital A’s chief executive officer Tony Fernandes earlier floated the possibility of acquiring another 150 aircraft to strengthen its group-wide network and cater to the expected rise in air travel demand.

Chester Voo, deputy CEO of the airline’s holding company AirAsia Aviation Group Ltd., said this planned move will be finalized in the next few weeks. Voo did not identify the manufacturer of the aircraft.

On the share of its Philippines operations from the new batch of planes, the official said the market growth will dictate the allocation.

However, Voo said that they were anticipating at least two to four aircraft a year, starting from 2026.

“So, over 5 years, you’re looking at 20-aircraft growth,” he said.

Over the weekend, AirAsia Berhad sealed a $12.25-billion deal with Airbus for the purchase of 50 A321XLR aircraft.

Acquiring new-generation aircraft will help the group save about 30 percent of operational costs, according to Voo.

READ: BIZ BUZZ: Fernandes on a high

Competitive pricing

“The strategy of the group is this—to have aircraft that can fly at the best cost … to keep our price competitive,” he said.

Currently, AirAsia Philippines operates 15 aircraft. However, it hopes to end the year with 21.

As the company expands its fleet, AirAsia Philippines’ new president Suresh Bangah earlier said they were planning to add bases outside Metro Manila.

Bohol, Clark, Cebu, and Tacloban were among the areas being considered.

READ: AirAsia scouting for new hubs outside Metro Manila

Bangah said that focusing on Manila is still the better approach as it is cost-effective. However, capacity limitations at the airport bar AirAsia from launching more flights from the country’s main air hub.

The low-cost carrier hopes to end 2025 with six million to seven million passengers, Bangah said.

The company’s strongest domestic routes during the first half were Caticlan, Cebu, and Cagayan de Oro. INQ