AirAsia eyes $1-billion expansion in PH: Palace

MANILA — Budget carrier Air Asia plans to invest $1 billion to expand its operations in the Philippines, Malacañang said on Friday. 

Press Secretary Cheloy Garafil said Capital A CEO Tan Sri Anthony Francis Fernandes has signed a letter of intent "indicating expansion plans for his business in the Philippines." 

This covers, Garafil said, aviation and aviation maintenance, repair and overhaul of operations, creation of Air Asia super app, and strengthening logistics operations in the Philippines. 

The investment pledge was discussed during President Ferdinand Marcos, Jr's roundtable business meeting organized by the trade department in Malaysia, based on the statement.

Marcos welcomed the development. 

"Thank you. We’re all very happy that you have such good – you see such good prospects for the Philippines," said the President. 

Fernandes, for his part, said he is excited how his business could stimulate micro-, small-, and medium-sized enterprises in the country. 

"We think we can bring a lot of value to the Philippines on logistics,” Fernandes said during the roundtable meeting in Malaysia. “So, over the next few years, we think we’ll invest about one billion US dollars into the Philippines. We have about 300 million so far. We wanna grow our aircraft from 23 to 50 including wide-body aircraft … we are just applying for the license now,” he said.

Fernandes said in June that the company remains bullish on the Philippine economy, noting that pent-up demand is still driving leisure and workforce travel.