Philippines AirAsia

In Spotlight

4 May 2017

Low Cost Carrier Philippines Air Asia is the third biggest airline in the Philippines with 16 Airbus A320-200 flying 30 routes across 20 airports in the country and overseas.

According to the airline, the carrier transported 3.99 million passengers in 2016 at an average load factor of 87%, an increase of 11% compared with 2015 with the airline’s load factor improving by six percentage points. The average sector length jumped 10% to 1,109 kilometres, while the number of flights operated increased by 3% to 25,607. As a result ASKs (Available Seat Kilometres) grew by 14%, but RPKs (Revenue Passenger Kilometres) were up 22%.



In the first quarter of 2017 the airline set a new record, handling 1.15 million passengers (+19%) at a load factor of 92% (plus five percentage points).

Analysis from anna.aero of OAG schedule data for 2017 Q1, Philippines AirAsia has around 11% of the domestic market (well behind Cebu Pacific Air with 46% and Philippine Airlines with 33%) and around 4.6% of international seat capacity. Philippine Airlines (30%), Cebu Pacific Air (19%) and Cathay Pacific Airways (5.2%) are all bigger than the LCC in terms of international operations from the Philippines.



In the second quarter of 2017 the carrier has launched several new domestic routes; between Clark and Davao, as well as between Puerto Princesa and Davao. It has also started one, and resumed two, domestic links from Cebu. As a result, the airline’s network currently comprises 30 routes; the shortest just 283 kilometres from Cebu to Caticlan and the longest between Cebu and Kuala Lumpur, which clocks in at 3,029 kilometres. Of the 30 routes, 17 are served at least daily, with the 565-kilometre connection between Cebu and Manila having 51 flights per week. Cebu Pacific competes head-to-head on 22 of the airline’s 30 routes, while Philippine Airlines also provides direct competition on 22 routes. In the graph below domestic routes are shown in dark green with international routes in light green.



Philippines AirAsia currently serves 20 airports in all, nine of which are in the Philippines (shown in dark green), three are in China with two each in Malaysia and South Korea. In addition it flies to Hong Kong, Macau, Singapore and Taipei. Manila is the LCC’s busiest airport with 252 weekly departures followed by Cebu (97), Kalibo (57) and Davao (52).

Philippines Air Asia is Born

30 October 2015

The marriage of AirAsia Philippines (Air Asia, Incorporated), and AirAsia Zest (Zest Airways, Incorporated) has officially produced a baby named Philippines Air Asia Inc.,(PAA) as Civil Aeronautics Board (CAB) approved its petition to operate as a single company with just a single certificate.

"We’re operating now as a wholly owned entity. The merger is important because it is costly for us to operate as two separate entities. I don't want a division between AirAsia Philippines and AirAsia Zest, so we made Philippines AirAsia," Chief Executive Officer Joy Caneba said in a press briefing yesterday.

Water salute for PAA as it expands to Tagbilaran Airport in Bohol

The new airline will be bigger than its Philippine parents with capitalization increase from P2 billion to P5 billion, that will be used to fund acquisition of five additional Airbus A320s scheduled for delivery next year.

PAA will boast a fleet back to 17 brand new A320-200 fleet by 2016 enabling it to compete better with domestic rivals Philippine Airlines and Cebu Pacific Air.

It earlier retired 3 A320's powered V2500 engines belonging to ZestAir that was let from other aircraft lessors to align local affiliates fleet with that of its Malaysian parent, AirAsia Berhad that operates the CFM56s engines.

The airline earlier operated a combined fleet of 20 aircraft before huge losses prompted it to reduce fleet to the current 12.

According to Caneba they are expecting to hit about four million passengers this year, or the same figure posted in 2014, due to the reduction of its fleet size.

PAA has been cutting unprofitable routes and redeploying capacity into more promising international markets, particularly China.

PAA's new strategy posted a better than expected recovery performance after the turnaround plans were initiated in July 2014 and is expected by its parent company AirAsia Berhad to break even by the end of the year.



The company said it will delay public listing for two years but will proceed with a $200-million initial public offering by 2018.

The Securities and Exchange Commission (SEC) earlier issued a certificate approving the name Philippines AirAsia, with "doing business under the name and style of the AirAsia Berhad" when
AirAsia Philippines secured consent to acquire the remaining 51% stake in AirAsia Zest held by AMY Holdings of Alfredo M. Yao in February this year. The complete buyout marks exit of Yao from the airline business, and allowing AirAsia Philippines to own the entire carrier.

Caneba said route expansion is destined towards China, Korea and Taiwan as it also aims to strengthen its foothold in Kalibo where it is the biggest international airline.

PAA flies daily to Hong Kong, Kuala Lumpur, Seoul, Kota Kinabalu, Macau, Busan, Shanghai, Beijing, and Hangzhou, and serves domestic points in Cebu, Davao, Kalibo, Puerto Princesa, and Tacloban. It recently expanded operation to Tagbilaran.