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Asia’s first and biggest budget carrier makes its nest in the Philippines, promising more connectivity to the region and less costly airfare.

Air Asia announces the start of a Philippine-based airline in a joint venture deal with local partners, “Air Asia Philippines” by 2011.

“I think the Philippines has been starved for connectivity. There is a massive amount of connectivity that is required in the Philippines.

If you look at Malaysia, Thailand and Indonesia, the growth [of airline passenger traffic] has really come out of low-cost carriers.”

— Anthony Francis Fernandes, Malaysian entrepreneur and the founder of Tune Air Sdn. Bhd.

To illustrate this point, the owner of budget airline Air Asia explains that he had to take one of his airline’s Airbus A320s out of circulation just to fly eight passengers from Kuala Lumpur to Manila at the time of his preference—a difficult decision for the cost-conscious former accountant.

In other major cities, a private flight would have not been necessary as travelers could have easily booked themselves seats on multiple flights available throughout any given day.

Air Asia Philippines aims to provide cheaper airfare through operations that will be patterned after its Malaysian parent: a flat organization which kept costs to a bare minimum—by having its ancillary services outsourced—leading to cheaper airfare for end-users.

Air Asia will start its flight service operations out of either the Diosdado Macapagal International Airport in Clark Field, Pampanga, or the Subic Bay International Airport in Olongapo, Zambales, by September 2011.

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Reference:

Lucas, Daxim. “Mother of all budget carriers come to the Philippines.” 20 December 2010. The Philippine Daily Inquirer. Accessed 21 December 2010. Link Here.



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