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.
“The Philippines is probably my most favorite country in our field. It has the most energy, the most potential, and the most loyalty of my staff because they’ve had the toughest time,” 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.
“We serve the people of the Philippines. So I would like the public to have a chance to own AirAsia Philippines, like my staff, rather than another tycoon,” Fernandes stated. The company aims to raise capital specifically for further expansion in the Philippine market.
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 upcoming deliveries of Airbus A321LR aircraft in 2026, along with plans to deploy approximately three wide-body A330 aircraft to the Philippines.
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.
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