AirAsia has confirmed that it will launch a low cost carrier in The Philippines with local partners (TravelMole, Dec 9)
The KL-based carrier has signed a joint venture in which it will hold a 40 percent stake in AirAsia Inc.
AirAsia Philippines is expected to launch operations in the third quarter of 2011 subject to receiving regulatory approval.
As part of the agreement, AirAsia will provide technical, operational and commercial support "on an arms’ length basis" to the new venture.
AirAsia group CEO, Tony Fernandes, said that the joint venture reflects its confidence in the country and ASEAN.
The JV will bring AirAsia Philippines into direct competition with fast-growing Cebu Pacific, Asia’s third largest LCC, which has close to a 50 percent domestic market share and 14 percent international share.
