Philippines AirAsia, Inc. is a low-cost airline based at Ninoy Aquino International Airport in Metro Manila in the Philippines.[5] The airline is the Philippine affiliate of AirAsia, a low-cost airline based in Malaysia. The airline started as a joint venture among three Filipino investors and AirAsia Investments Ltd. (later AirAsia Aviation Limited), a subsidiary of AirAsia Berhad.
It is a successor to Zest Airways, Inc. Zest Airways was rebranded as AirAsia Zest and operated as a separate brand from AirAsia until merged into Philippines AirAsia in 2015.[6][7]
History
Since Section 10, Article XII of the Philippine Constitution forbids 100% foreign ownership of a Philippine-registered business,[8] Malaysian investor Tony Fernandes entered into a 60-40 joint venture with a group of Filipino business people. Filipino investors Antonio O. Cojuangco, Jr., former owner of Associated Broadcasting Company and owner of Dream Satellite TV; Michael L. Romero, a real estate developer and port operator; and Marianne Hontiveros, a former music industry executive and TV host, all have a 60% stake in the airline.[9] The remaining 40% belongs to AirAsia Investments Ltd. (later AirAsia Aviation Limited) of Malaysia.[10]
AirAsia Philippines was formally launched on 16 December 2010.[10] On 15 August 2011, AirAsia Philippines took delivery of its first brand-new Airbus A320 aircraft.[11]
The airline planned to start operations by 2011[10] but was delayed due to the long duration of processing the new requirements instituted in 2008. On 7 February 2012, the airline received its air operator certificate.[12] The airline commenced operations on 28 March by launching flights from its base at Clark International Airport to Kalibo and Davao.[13]
On 8 April 2012, AirAsia Philippines partnered with Victory Liner, one of the largest provincial bus companies operating in the Philippines, to provide free shuttle service for inbound and outbound passengers of Clark International Airport.[14]
An Airbus A320-200 operated by Philippines AirAsia in Puregold livery, on final approach at Taipei Taoyuan Airport.
On 11 March 2013, an agreement was made between AirAsia Philippines to swap shares with Philippine-based airline Zest Airways.[15] Zest Airways received a mix of $16 million cash and a 13% share in AirAsia Philippines, while AirAsia Philippines now owns 85% of Zest Airways, with 49% of its voting rights. The deal closed on 10 May 2013.[6] Due to this agreement, Alfredo Yao of Zest-O Corporation was added as an additional owner of the company. In 2015, both airlines merged to form Philippines AirAsia.[7][16]
The 2013 share swap agreement also gives AirAsia Philippines access to Ninoy Aquino International Airport, allowing further growth of its route network.[17] In September 2013, the airline announced that it will move its operations to NAIA from Clark.[18] The airline however restarted flights from Clark on 27 March 2017.[19]
On 30 July 2016, AirAsia Group CEO Tony Fernandes appointed Capt. Dexter Comendador as the new CEO of the company. Comendador joined Philippines AirAsia in 2011 as director of Flight Operations and was promoted to chief operating officer in 2015 before his appointment.[20] Comendador is also famous in the Philippine aviation community as one of the hero pilots of Philippine Airlines Flight 434 who was bombed by the terrorist Ramzi Yousef in 1994.
The COVID-19 pandemic has adversely affected Philippines AirAsia's business. Plans for Philippines AirAsia to debut in the Philippine Stock Exchange within 2020 was deferred in March 2020, with the airline management deciding to focus on expanding its domestic operations after a government ban on China and South Korea in response to the worsening health situation threatening 30% of the airlines' revenue.[21]
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