Malaysian aviation company Capital A has recently announced its decision to reactivate plans for the initial public offering (IPO) of Philippines AirAsia. This move comes after Capital A successfully acquired a 60% stake in the airline earlier this year. With the aim of expanding its operations and increasing its fleet, Capital A is now exploring financing options, including a potential IPO, for both Philippines AirAsia and Indonesia AirAsia.
Background
Capital A's subsidiary, AA Com Travel Philippines Inc, completed the purchase of Michael and Shiela Romero's shareholding in Philippines AirAsia in June. At that time, Capital A CEO Tony Fernandes stated that an IPO was not on the immediate agenda due to market volatility. Instead, he pledged to invest USD1 billion to fuel the growth of the low-cost carrier (LCC). However, recent developments have led to a change in plans.
Exploring Financing Options
In late November, Capital A revealed its intention to explore various financing options for both Philippines AirAsia and Indonesia AirAsia. This includes considering a "near term" IPO for Philippines AirAsia. The company aims to secure the necessary funds to support its expansion plans and enhance its market position in the region.
Expansion Plans
With the acquisition of a majority stake in Philippines AirAsia, Capital A plans to double the airline's existing fleet of 25 A320-200 aircraft. Additionally, they intend to introduce A330 widebody planes to further strengthen their operations. This expansion strategy reflects Capital A's commitment to providing enhanced connectivity and travel options to passengers across Asia.
Current Operations
Philippines AirAsia currently operates flights to 26 destinations in nine countries, including China, Thailand, Hong Kong, Taiwan, Malaysia, Macao, Japan, and South Korea. The airline's extensive network allows travelers to explore various business and leisure destinations within Asia conveniently.
Summary
Capital A's decision to reactivate plans for an IPO of Philippines AirAsia highlights their confidence in the airline's growth potential and their commitment to expanding their presence in the Asian aviation market. With a focus on increasing their fleet size and enhancing connectivity, Philippines AirAsia is poised to offer even more travel options to passengers across the region. As the company explores financing options, including a potential IPO, exciting times lie ahead for Philippines AirAsia and its stakeholders.
(This article is sourced from ch-aviation.com and curated by Thetransporteronline24)
