AirAsia Philippines said Wednesday it plans to list on the Philippine Stock Exchange (PSE) within a year to support its growth and expansion efforts. The airline is considering a direct listing and sell between 20 to 30 percent of its shares, according to Tony Fernandes, CEO of AirAsia Group, in a virtual briefing with transport reporters.
“We’ve been talking about it for a while, and now that we own 100 percent of the company, we’re in a much clearer state. We’re also looking to clean up some of our past issues, such as PN 17,” Fernandes said, referring to the company’s previous financial challenges.
While the target capital for the IPO remains undisclosed, Fernandes confirmed that valuation discussions with investment banks are underway. He emphasized that the proceeds from the IPO will be used for expanding the airline’s fleet, with a focus on acquiring more aircraft.
“We’ve been tight on cash, and it’s no secret that COVID hit us hard. We survived, and now we’re focused on growth,” Fernandes said. AirAsia Philippines had previously announced plans in 2019 to raise USD200 million through an IPO.
Fernandes also discussed the company’s vision for its Philippine operations, highlighting plans to turn Manila into a key hub connecting Southeast Asia with the U.S. He sees the country’s location as ideal for serving routes to China, Japan, South Korea, and the United States. “Manila should become our hub for ASEAN to the west and east coast of America,” he said, pointing out the airline’s fleet expansion with Airbus A321 XLRs and A330s.
In line with its multi-hub strategy, AirAsia plans to strengthen its presence in Manila, Bangkok, and Kuala Lumpur, making Manila a critical part of its network. Fernandes explained, “We will have a slight advantage over Dubai and Doha by having multiple hubs across the region.”
AirAsia Philippines currently flies to 12 domestic and 13 international destinations, and the company plans to acquire 14 additional aircraft, including three to four Airbus A320neos for its Philippine operations. Fernandes confirmed the airline’s commitment to expanding both domestic and international routes, providing more choices for Filipino travelers.
