Air Asia leverages on affiliates

Air Asia Philippines will use its network and affiliate Air Asia companies in the ASEAN to make Clark its hub in Asia and spur growth in tourist arrivals.

Marianne Hontiveros, chief executive officer of AirAsia Philippines, yesterday said the strategy would hope to achieve what neighboring countries have achieved: Thailand’s 15.4 million international tourist arrivals and Malaysia’s 24.6 million arrivals, nearly equal the size of its population.

"We are laggards in the industry as tourist arrivals in the country are at 3.5 million. It’s pathetic compared with (other countries) in ASEAN. Now we will be able to catch up. Our affiliate in the region promises us to promote travel in Philippines," she said.

"We will make Clark as an important destination in the ASEAN."

Hontiveros said Air Asia Berhad has daily flights from Clark to Kuala Lumpur and Kota Kinabalu and Air Asia Thailand and Air Indonesia will be running flights to Clark.

"Now there is Air Asia Vietnam. They are talking with ANA (All Nippon Airways) and will soon have Air Asia Japan. In all our operations, Clark is the destination for Air Asia. We will do what PAL (Philippine Airlines) did in NAIA and Cebu Pacific in Cebu," she said.

The first Airbus 320 commanded by Capt. Johansen Hernandez landed at the Diosdado Macapagal International Airport before noon yesterday.

"We want to make Clark as a hub for Asia. We plan to be a substantial player here. We want to build a market. We’re not out to cannibalize (the market) of other airlines. We want to make Clark as hub. We would like to develop the market here in Central and Northern Luzon," Hontiveros said.

Air Asia will start flying in October from Clark to Singapore, Hong Kong and Macau, where there is a huge market.

The second aircraft, expected to arrive in November, will fly to Bangkok, Incheon, Puerto Princesa and Kalibo, all popular sites for travelers.

Michael Romero, vice chairman of AirAsia Philippines, said one aircraft will be coming in January. Four planes, all leased at $50 million each, will be arriving in six months. The plan is to acquire 13 to 15 planes in three to five years.

"We’re banking on the Air Asia brand, which made other airlines paranoid. We want to give people quality service in brand-new aircraft but not cheap service," Hontiveros said.

AirAsia will employ Filipinos for the 300 jobs it would create. As flights increase, an increment of 130 to 200 jobs is expected per year.

Air Asia will set up a call center and will outsource ground handling and maintenance and will indirectly benefit industries such as retail, hotels and restaurants.

By: GENIVI FACTAO
Malaya Business Insight