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AirAsia Philippines set to rival Cebu Pacific

PHILIPPINES, JANUARY 2011 – With heightened talk this week about a possible "pocket open skies" policy in the Subic Bay Freeport, Subic Bay International Airport appears a likely hub for the new carrier AirAsia Philippines. The Diosdado Macapagal International Airport in Clark is the another option, as the airline has flights to Kota Kinabalu and Kuala Lumpur from Clark.
 
Last month, Tony Fernandes, CEO of Malaysia-based low-cost carrier AirAsia, announced his partnership with businessman Tonyboy Cojuangco, Harbour Centre Group’s Michael Romero and Maan Hontiveros for AirAsia Philippines, a new airline to the tune of $25 million in capitalization. The airline will operate from September 2011 and will acquire new Airbus 320s for its fleet.AirAsia Philippines is seen as a likely contender in the domestic market now dominated by the Gokongwei-led Cebu Pacific. 
 
The prices of Cebu Pacific shares dipped after the announcement in mid-December but the flag carrier has expressed that it is ready for more competition and will beef up its Airbus fleet in the next three years.
 
Cebu Pacific Air has been consistently aggressive with its sales and marketing with its seat sales. It is starting the year with its ongoing Juan Big Bash with discounts for Fun Tours and 50% off flights for February to March.
 
As labor woes hound Philippine Airlines (PAL), there is plenty of room for low-cost carriers to innovate and lead the industry.
 
AirAsia Philippines joins other associate carriers Thai AirAsia, Indonesia AirAsia and AirAsia X, which focuses on long-haul flights. AirAsia Philippines appears set to launch before VietJet AirAsia, which was announced early last year. AirAsia has also tied up with the Asean Basketball League’s Philippine Patriots, co-owned by Cojuangco and Romero.
 
AirAsia was named World’s Best Low Cost Airline last year by Skytrax, the largest airline and airport review website.
 
 

 

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