AirAsia pledges to invest $1B for expansion of operations in Philippines

Malaysia-based AirAsia has pledged to invest $1 billion to expand its operations in the Philippines.

AirAsia's Tony Fernandes made the pledge in a roundtable meeting with President Ferdinand "Bongbong" Marcos Jr. during the latter's state visit to Malaysia.

"We’re excited about what we can do in the Philippines and really stimulate small and medium enterprises. We think we can bring a lot of value to the Philippines on logistics," Fernandes told Marcos.

"So, over the next few years, we think we’ll invest about $1 billion into the Philippines. We have about $300 million so far. We want to grow our aircraft from 23 to 50, including wide-body aircraft … we are just applying for the license now," he added. 

Marcos said he was glad that AirAsia, a leading low-cost carrier, saw ''such good prospects for the Philippines.''

According to Trade Secretary Alfredo Pascual, Fernandes, CEO of Capital A Berhad, signed a letter of intent indicating expansion plans for his business in the Philippines, specifically for aviation and aviation maintenance, repair, and overhaul operations, airasia Superapp, and logistics operations in the country.

Fernandes said AirAsia was also hurt when the COVID-19 pandemic hit the Philippines, but he stressed that the firm had to bounce back and restructure the business so that it could go back to its pre-pandemic level.  — VBL, GMA Integrated News