Thursday, August 18, 2011

AirAsia Philippines Ready to Take Flight Soon

Flight attendants posing in front of AirAsia Philippines' first aircraft
AirAsia Philippines, the Philippine subsidiary of AirAsia (Asia's largest low-cost carrier) recently took delivery of its first aircraft, a sparkling, new Airbus A320-200, which it would soon use for flights to destinations in Asia such as Bangkok, Hong Kong and Singapore, from the Diosdado Macapagal International Airport in Angeles, Pampanga. It would also take delivery of another A320 late this year or early next year, which would allow it to launch more flights to other Asian destinations, as well as domestic services to Kalibo, Aklan (the other gateway to Boracay Island aside from Caticlan) and Puerto Princesa, Palawan.

The Malaysia-based company has decided to set up its own  subsidiary in the Philippines, in cooperation with businessman Tonyboy Cojuangco, to give Filipinos more options to get to their intended destinations. Low-cost carriers are very popular in the Philippines since Filipino travelers tend to be more meticulous when it comes to the airline ticket's price, rather than comfort or amenities, which explains why First or Business Class seats on full-service airlines flying to and from Manila (or any other Philippine destinations) are never really full. With the entry of this new airline, competition among the local low-cost carriers are expected to intensify further, especially since there would be a chance that AirAsia would offer lower airfares since they fly out of the DMIA, which charges lower landing fees and taxes than the Ninoy Aquino International Airport in Manila. As of now, AirAsia Philippines is still finalizing the process of securing rights to be able to launch commercial flights, which are expected to begin by September of this year. 

AirAsia's entry into the Philippines is just one of the company's many attempts to tap into the Asian markets. In the present, the airline has already established their own subsidiaries in Indonesia and Thailand, and also plans to look into the Japanese market. AirAsia commenced operations in 1996, and currently has 105 aircraft stationed at their different hubs in Asia. The airline recently received attention for placing the largest single-order of aircraft in history, placing an order for 300 Airbus A320neo planes, as part of their massive expansion plan across the region.

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