AirAsia forms Philippine LCC
Published on Dec 17, 2010
AirAsia has announced that it has entered into an agreement to establish a new low-cost carrier in the Philippines. Through its fully-owned subsidiary, AA International Ltd, the Malaysian airline will hold 40% stake in the new AirAsia Inc, while the remaining 60% will be held in equal partnership by three Philippine shareholders; Antonio O Cojuangco Jr., Michael R Romero and Marianne B Hontiveros.
The new carrier plans to launch domestic services across the Philippines, as well as international services to markets such as China, South Korea, Japan, Singapore, Hong Kong and Taiwan. As part of the joint venture agreement, AirAsia Group will also provide technical, operational and commercial support to AirAsia Inc to ensure brand consistency across the company’s operations.
AirAsia’s Group Chief Executive Officer, Dr Tony Fernandes, said that the joint venture will make air travel more affordable to Philippine nationals. “AirAsia has conducted a feasibility study prior to entering into the joint
venture and based on the study AirAsia is confident that the joint venture will strengthen AirAsia’s distribution capacity across its existing network.” The joint venture is expected to commence operations in Q3 2011.
See full story at TravelDailyAsia.com