Asian
budget carrier AirAsia launched a new affiliate in the Philippines on Monday,
promising to undercut its rivals on regional and domestic routes.
To minimise costs and avoid Manila's crowded terminals,
AirAsia Philippines will fly out of a former US airbase that has been turned
into an industrial zone in Clark about 90 minutes' drive north of the country's
capital.
"We will be substantially cheaper (than our
competitors)," AirAsia Philippines chief executive officer Marianne
Hontiveros said at the launch in Clark where she oversaw the arrival of the
airline's first Airbus A320.
Although the launch ceremony was held on Monday, she said the
airline was not expected to start commercial operations until October when it
received its final flight certification from the government.
Hontiveros said AirAsia Philippines' first routes would be
between Clark and Hong Kong, Macau, Singapore and Bangkok, with its fleet
expected to expand to four Airbus A320s by June next year.
She said the carrier would then branch out to the rest of
Asia, while also looking to fly domestic routes in the Philippines.
Hontiveros said there were also plans to make Clark a hub for
the entire AirAsia network's routes to and from the United States.
Like the rest of Asia, the Philippines has seen a boom in
low-cost air travel in recent years with home-grown budget carrier Cebu Pacific
rising to overtake Philippine Airlines as the nation's dominant airline.
But Hontiveros said AirAsia's reputation should ensure the
local affiliate succeeded amid the rising competition.
"We're banking on the very strong brand of AirAsia. We
might be low-cost but we are not cheap (in quality)... we plan to be a
substantial player," she said.
Philippine investors including Antonio Cojuangco, a cousin of
President Benigno Aquino, have a 60-percent share in AirAsia Philippines, with
the Malaysian parent company led by Tony Fernandes holding the other 40
percent.
AirAsia has similar affiliates in Indonesia, Thailand and
Vietnam, with another to start in Japan, which are independent companies but
work together as one network.
AirAsia already has routes from Clark to Kuala Lumpur and
Kota Kinabalu daily. Hontiveros said the parent firm would continue with its
flights even after AirAsia Philippines started.
Source : AFP
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