AirAsia’s Philippine Affiliate Eyes India Market

Low-cost carrier Philippines AirAsia is seeking to operate flights to India from the Philippines. A regulatory filing showed Philippines AirAsia has filed an application for designation as official Philippine carrier and for the grant of allocation of flight entitlements to India.

In particular, Philippines AirAsia wants to be able to operate seven weekly flights on the Manila – Bangkok – New Delhi route.

The carrier’s request is being made in accordance to the existing air services agreement between the governments of the Philippines and India.

A hearing is scheduled on Jan.10 at the office of the Civil Aeronautics Board in Pasay City to enable the government to decide on Philippines AirAsia’s petition.

Philippines AirAsia is a joint venture company between Filipino investors Antonio Cojuango, Alfredo Yao, Michael Romero, Marianne Hontiveros and Malaysia’s AirAsia Berhad.

It operates domestic and international flights out of Manila, Cebu and Kalibo.

In November last year, the carrier expanded its operations by offering direct flights to Singapore from Cebu, as well as direct flight services to Taipei in Taiwan from Manila and Cebu.

In the third quarter last year, Philippines AirAsia trimmed its net loss by 12 percent to P1.20 billion from P1.36 billion in the same period in 2015 amid higher revenues and passenger volume.

AirAsia Group CEO Tony Fernandes earlier said Philippines AirAsia is on track with its turnaround plan.

“We will take PAA (Philippines AirAsia) into the black by end-2017 on double-digit topline growth and a lower cost base from a more efficient fleet and keeping staff costs to below 10 percent of revenue,” he said.

“We will go further by working on increasing ancillary revenue to above P500 per passenger,” he added.