AirAsia plans to significantly expand its Philippine operations as part of a broader strategy to establish Manila as one of its key regional hubs, alongside Kuala Lumpur and Bangkok.
During a recent media briefing with local media, AirAsia CEO Tony Fernandes revealed plans to increase the airline’s Philippine fleet from the current 16 aircraft to 25 in the near term. This expansion will primarily include Airbus A320neo family aircraft, with 3-4 new planes allocated to the Philippines this year.
“We’re going to be modernizing the fleet with our order book. We’ve taken 14 planes this year. Some of those planes will be coming to Manila,” Fernandes shared.
The low-cost carrier’s renewed commitment to the Philippines comes as the country undergoes significant airport infrastructure development. Fernandes expressed particular interest in the new airport being built north of Manila (Bulacan), which he believes will create opportunities for growth.
Beyond fleet growth, AirAsia’s expansion strategy for the Philippines includes a potential listing on the Philippine Stock Exchange within the next 12 months. Rather than bringing in individual investors, Fernandes indicated a preference for a public offering.
“I think rather than take an individual shareholder, we are exploring having a direct listing on the Philippine Stock Exchange. So we might be looking at selling 20-30%, once [the] aviation [situation] is sorted out,” he said.
The company seeks to raise capital to support its expansion in the Philippine market, focusing on acquiring additional aircraft to sustain its growth.
Notably, AirAsia’s Philippines strategy will focus primarily on international routes rather than expanding its domestic network. This aligns with Fernandes’ vision of turning Manila into a hub connecting ASEAN countries to destinations in North America.
“My dream, which is now beginning to happen, is really that Manila should become our hub for ASEAN to the West and East Coast of America,” Fernandes explained.
This long-haul strategy will be supported by the upcoming deliveries of Airbus A321LR aircraft in 2026, some of which will be allocated to AirAsia Philippines, along with plans to deploy approximately three wide-body A330 aircraft to the country.
Beyond airline operations, AirAsia’s parent company, Capital A, is exploring additional investments in the Philippines. These include establishing an aircraft maintenance facility through its AirAsia Digital Engineering (ADE) subsidiary and expanding logistics operations through Teleport.
The airline executive also confirmed that AirAsia is also exploring potential growth in secondary airports, with discussions underway for expansion in Cebu and other regional hubs.
Despite facing challenges from local competitors and recovering from pandemic-related setbacks, Fernandes expressed optimism about AirAsia’s prospects in the Philippines, citing the country’s growing market potential and government support for business.
“We just got to bring more planes in. But we think we have a brand that people like more. The existing airlines are not going to make it easy for us, but we think we have a unique product,” Fernandes said.
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