Philippines AirAsia to built market presence, aided by $1bn

The CEO of Capital A, the investment arm of the AirAsia Aviation Group, has ruled out a listing Philippines AirAsia on the Philippine Stock Exchange (PSE) in the foreseeable future but says he intends to pump US$1b into the carrier to expand its operations there. CEO Tony Fernandes made the comments while signing a letter of intent (LOI) at a meeting in Malaysia this week with Filipino President Ferdinand Marcos Jr. The LOI addressed Capital A's plans to expand the network and fleet in the Philippines, in addition to building an MRO facility at Cagayan de Oro Laguindingan and ramping up its logistics presence. "We're excited about what we can do in the Philippines," said Fernandes. "Over the next few years, we think we'll invest about US$1b into the Philippines. We have about US$300m so far. We want to grow our aircraft from 23 to 50, including wide-body aircraft. We are just applying for the license now." Prospects of an IPO for Philippines AirAsia have been floating around for several years, egged along by Fernandes raising the idea now and again. However, he now says IPO plans are on hold "for the time being." Instead, Fernandes wanted to discuss bolstering the footprint of Philippines AirAsia at Cebu, a city of almost 1m people. "There is a huge potential in Cebu," he said, noting that the low-cost carrier already flies to Caticlan, Davao, Puerto Princesa, Manila Ninoy Aquino International. Seoul Incheon, Taipei Taoyuan, and Tokyo Narita from the airport. Fernandes said Philippines AirAsia also wanted direct flights to airports in Thailand, Australia, and Indonesia.<br/>