AirAsia Philippines is a 'long-term story': Group CEO Tony Fernandes

AirAsia Group CEO Tony Fernandes stated (21-Aug-2013) Philippines' AirAsia is a "long-term story" with its strategic alliance with Zest Air still needing a lot of work to be done in terms of "integration and rationalisation of routes and resources, and maximising the slots in Manila". Mr Fernandes stated the Philippines' expected exit from Category 2 by early 2014 will also boost the continued growth of visitor arrivals to the Philippines. Philippines' AirAsia has been in operations just over a year and saw a 304% year-on-year increase in revenue in 2Q2013. The associate recorded a lower net loss during the quarter under review. As AirAsia's interest in PAA has been reduced to zero, any profits will only be recognised once the invested amount has been reversed. [more - original PR]

Philippines' AirAsia: "The recent strategic alliance with Zest Air which was officially approved on 10 May 2013 boosted PAA's operational numbers. Total passengers carried during the quarter was up 114% to 0.14 million which led to a 28ppt increase in load factor at 76% as compared to 48% in 2Q2012. RASK was also up by 66% and CASK was down by 43% y-o-y which means that we are moving in the right direction. Further integration is being done between PAA and Zest Air, focusing on the maximisation of high value Manila slots." Maan Hontiveros, CEO of PAA. Source: Company statement, 21-Aug-2013.