International budget carrier AirAsia plans to expand its operations in the Philippines.
Malaysia’s budget airline AirAsia Berhad plans to invest $500 million to expand its Philippine operations as part of its business consolidation in the country, on November 14, 2014. The company will make the move in order to acquire more planes and stand tall against its competition–Philippines Airline and Cebu Pacific.
AirAisia Philippines is owned by AirAsia Bhd, along with its Filipino partners. The consolidation is an effort to increase its controlling stake of 49 percent stake in AirAsia Zest, which is currently controlled by juice and banking stalwart Alfredo Yao. Yao had previously revealed his intention to to sell, but owing to the delay in a decision by the Philippine Senate, there has been no move so far.
AirAsia Philippines and AirAsia Zest operate more than a dozen Airbus A320s mostly out of Manila’s Ninoy Aquino International Airport, Cebu and Kalibo. Once the group gets its go-ahead from the senate, the company intends to double the fleet as an expansion strategy.
As per the firm, it has already invested $100 million in cash terms into AirAsia Inc, apart from another $500 million, pending approval. The company also plans to add more flights in Korea, followed by China, Japan and Asean region.
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