AirAsia Phil to order 10-20 aircraft

Capital A Berhad plans to expand the fleet of AirAsia Philippines by acquiring 10 to 20 more aircraft over the next five years, according to Capital A’s chief executive officer Tony Fernandes.

Fernandes earlier floated the possibility of acquiring another 150 aircraft to strengthen its group-wide network and cater to the expected rise in air travel demand.

Chester Voo, deputy CEO of the airline’s holding company AirAsia Aviation Group Ltd., said this will be finalized in the next few weeks. Voo did not identify the manufacturer of the aircraft. He said the market growth will dictate the allocation.

Voo said they were anticipating at least two to four aircraft a year, starting 2026. “So, over 5 years, you’re looking at 20-aircraft growth,” he said.

Recently, AirAsia Berhad sealed a $12.25-billion deal with Airbus for the purchase of 50 A321XLR aircraft. Acquiring new-generation aircraft will help the group save about 30% of operational costs, according to Voo.

“The strategy of the group is to have aircraft that can fly at the best cost … to keep our price competitive,” he said.

Currently, AirAsia Philippines operates 15 aircraft. It hopes to end the year with 21.

As the company expands its fleet, AirAsia Philippines’ new president Suresh Bangah  said they plan to add bases outside Metro Manila. Bohol, Clark, Cebu, and Tacloban were among those considered.

Bangah said that focusing on Manila is still the better approach as it is cost-effective. However, capacity limitations at the airport bar AirAsia from launching more flights from the country’s main air hub.

The low-cost carrier hopes to end 2025 with six million to seven million passengers, Bangah said.

The company’s strongest domestic routes during the first half were Caticlan, Cebu, and Cagayan de Oro.