Thursday, April 14, 2011

AirAsia boost competition in Philippines market

AirAsia Philippines to launch budget flights in the third quarter of 2011.After setting up joint ventures in Thailand, Indonesia, and Vietnam, Southeast Asia's biggest budget carrier Air Asia is now launching Air Asia Philippines.
AirAsia’s entry into the Philippines market is expected to further boost competition in a space that is set to become increasingly crowded as more budget carriers enter the fray.
the Valuair Indonesia. Batavia Air; Citilink; Lion Air;Mandala Airlines are competitor for airasia
The recently-announced Jetstar-AirAsia alliance is seen as a formidable low cost carrier (LCC) combination in Asia.
Add Australia's Qantas, Jetstar's parent firm, and Malaysia Airlines (MAS), and it would be an airline "model for the future," according to the Centre for Asia Pacific Aviation (CAPA).
AirAsia Philippines plan to begin flight operations using either Clark or Subic — two former US military bases near Manila — as its base, the Malaysian said.
“We do expect to be profitable straight away,” Fernandes told a news conference without giving fleet, destination or capitalization details.
This will allow the joint venture to offer low fares compared with its rivals, he said. Local competition includes surging budget carrier Cebu Pacific Air and loss-making flag-carrier Philippine Airlines (PAL).
“Cebu Pacific has done a fantastic job,” Fernandes said, praising its equally low-cost, no-frills model but saying there was more than enough room for the AirAsia group to grow.
“I think PAL could have, I’m sure, done a better job,” he said.
Marianne Hontiveros, a Filipino music industry executive, will be the AirAsia Philippines chief executive, with Cojuangco as chairman.
“We need tourism badly in our country, and we have so much to offer,” Hontiveros told the news conference.

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