Air Asia Plans to Develop Hubs in Cebu and Davao

AirAsia is planning to expand its foot print in the Philippines as it prepares to develop new hubs in Cebu and Davao. After moving from its original hub at Clark International Airport to Ninoy Aquino International Airport in Manila, the low-cost carrier has primarily concentrated on flights from Manila and Kalibo. But AirAsia says that its now ready to transform Cebu into one of the largest hubs in the country.

Copyright Photo: Angelo Agcamaran/PPSG
"Air Asia is committed to connecting communities in the Philippines in the region and beyond," said Joy Caneba, CEO of AirAsia Zest." With our newest routes between Cebu and Mindanao, we would like to provide much-needed connections and tap into underserved markets, grow it, as there is definitely great tourism and business potential between these awesome cities."

Air Asia recently unveiled new service from Cebu to the top two tourist destinations in Mindanao: Cagayan de Oro and Davao. The new flights provide Cebuanos and tourists with an alternative option and greater competition in a market that has been largely controlled by Cebu Pacific, the nation's largest low-cost carrier. AirAsia previously launched a hub in Cebu, but pulled out in favour of re-aligning its network and shifting focus to its Kalibo hub. 

"This launching signifies that AirAsia Zest is back," said Caneba. "We are bigger and better with fares that are affordable and flights that are safe, convenient, and fun." The new flights are set to begin on December 12 when the carrier will offer two daily flights to Davao and Cagayan de Oro from Cebu.

Meanwhile, AirAsia is continuing to pursue international expansion, which represents a significant portion of the carrier's revenues. Caneba announced that AirAsia is presently navigating regulatory channels in order to launch new international flights from Cebu to Bangkok, Singapore, and Hong Kong. It is expected that the carrier will be able to launch the new Cebu to Singapore route within the next few months.

"This is just the beginning of our new plans for Cebu as we are set to expand our presence here with new international direct flights and 'fly-thru' products to connect all Filipinos to the rest of AirAsia Group's massive network covering over 88 destinations stretching across China, India, and Australia," added Caneba.

AirAsia Zest is currently operating daily flights between Manila and Cebu. The carrier also provides international service from Cebu to Seoul Incheon, while its parent carrier, AirAsia Malaysia, offers non-stop service between Cebu and Kuala Lumpur. 

AirAsia believes there is enormous growth potential in the Philippines with the sizeable population of more than 100 million people and stunning destinations spread across 7,107 islands. But Cebu is not the only major city that AirAsia has its eyes on. The carrier is also seeking to develop Davao as a hub.

"Davao City is an important gateway to Mindanao and as we expand our operations with new international direct flights and 'fly thru' products, Dabawenyos will now have easy access to AirAsia Group's massive network," said Caneba. AirAsia hopes to attain a load factor of 90 percent on its Cebu to Mindanao services with two daily flights to Cagayan de Oro and two daily flights to Davao.

The carrier also plans to revive the Davao to Manila route by the end of the year and to launch new service from Davao to Kalibo. In addition, an international connection is in the works from Davao to Kota Kinabalu, one of Malaysia's most popular tourist destinations. These new flights are expected to follow soon after the establishment of the Cebu to Davao flights.

"We are excited about opening up the Davao-Kota Kinabalu route and are planning more routes in the future because of the incentives offered by the government," said Caneba. AirAsia plans to make Davao a hub, targeting an 80 percent load factor on flights from the city to the East Asian Growth Area. The government is currently encouraging private sector investment that will improve connectivity throughout the region through discounts on landing fees.

Passengers in Davao will also be able to enjoy connecting service through Cebu to Singapore, when AirAsia launches the new flights in February 2015. "This is just the start since we are cautious about opening new routes but we certainly do have plans," added Caneba.

AirAsia Zest was forced to discontinue flights between Davao and Manila previously as it was not feasible at the time. However, the carrier hopes to restore service within the year. "We were not able to provide the service we would have wanted to provide to our customers in the Manila-Davao route so we closed it down, but we are now ready to do that again and see this as a sustainable route now," said Caneba. She added that the Zest Air and AirAsia merger also contributed to the previous challenges in making the Davao route viable. 

With established operations in Malaysia, Thailand, Indonesia, India, Japan, and the Philippines, AirAsia is the largest low-cost carrier in Asia serving more than 250 million guests with 160 aircraft. The airline was voted the World's Best Low Cost Carrier for the past six years.

9 comments:

  1. Finally a direct flight from Borneo to Mindanao! It has been troublesome since the Sandakan to Zamboanga route was axed a few years back

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    Replies
    1. I can only wish for a Manado-Mindanao link but the route is not so feasible

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    2. Hopefully it will be cheaper than the ferry from Sandakan to Zamboanga (via Tawi Tawi).

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  2. More should be done to promote Davao here in Sabah. It's not a really well known tourist destination here although it's a very nice and peaceful place. Looking forward for that Kota Kinabalu-Davao flight nonetheless!

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    Replies
    1. So true. I've only heard of Palawan, Boracay and Zamboanga but not Davao

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