MANILA -- Confidence in the country’s strong economic growth trajectory and its desire to serve more Filipinos are the main factors in Philippines AirAsia’s major expansion plans, said the new majority shareholder of the company that owns the budget airline on Tuesday.
In a statement, 1-Pacman party-list Rep. Michael Romero said AirAsia plans to boost its fleet to 50 airplanes from the current 23, and hike revenues to PHP50 billion from PHP30 billion in three years.
F & S Holdings, which is owned by Romero and his wife Sheila Bermudez-Romero, became majority shareholder of Air Asia Inc. (AAI) after acquiring the shares of former Ambassador Fred Yao (13 percent) and Maan Hontiveros (15.8 percent) in AAI, bringing its stake to 44.4 percent from 15.7 percent previously.
“More Filipino tourists and foreign visitors traveling all over the country as passengers of 50 AirAsia planes in three years is our goal,” the lawmaker-businessman said.
"This is proof of our confidence in the Philippine economy, as well as our desire to help Filipinos in realizing their aspiration to travel to any part of the world at affordable rates," Romero said.
Just recently, the Asian Development Bank said the Philippines has the "potential" to become the fastest-growing economy in Asia, propelled by an unprecedented infrastructure overhaul, tax reform and a young workforce.
The ADB added that a recent credit rating upgrade from S&P Global is also an indication of the "fundamental strength" of the Philippine economy, which has maintained growth at above 6 percent.
S&P Global Ratings raised the country’s long-term sovereign credit rating to “BBB+” from “BBB,” bringing it a step closer to bagging a single “A” grade.
The debt watcher said the rating “reflects the Philippines’ strong economic growth trajectory,” which is “supported by solid government fiscal accounts, low public indebtedness, and the economy’s sound external settings.”
Meanwhile, Romero said the AAI expects to end the year at a profit after recording a loss of PHP2.11 billion in 2018.
He said the company raked in PHP6.68 billion in revenues and PHP454 million in profits in this year's first quarter.
“The company is now turning around and becoming very profitable… We plan to make our revenue from PHP30 billion this year to about PHP50 billion in three years’ time,” Romero said.
He also disclosed that AAI will issue an initial public offering later this year after the company's capital restructuring is complete by September. The IPO will be for 20 percent of AAI shares.
On the other hand, Bermudez-Romero, F & S Chairperson, said AirAsia "is up to speed in being one of the best in its class, what with all the innovations that have been put in place."
"We still strive for a stronger presence in the global aviation. The vision to go higher will be supported by plans that yield the best of technology and our distinct human touch," she said. (PNA)
