Air Asia Studies Manila to Hong Kong Flights
AirAsia Philippines, a division of AirAsia Group, voted World's Best Low Cost Airline for the past six years, is considering expanding its international services from its hub at Ninoy Aquino International Airport in Manila to include Hong Kong, Asia's World City.
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| Copyright Photo: Angelo Agcamaran/PPSG |
When AirAsia Philippines began service in the country from its previous hub at Clark International Airport, it served Hong Kong as one of its initial international destinations. But the airline was forced to suspend this service in 2013 due to insufficient demand and intense competition from Cebu Pacific and Tigerair Philippines, which also competed on the route.
However, since suspending the route and shifting its hub to Manila, the competitive landscape in the Philippine market has changed drastically with industry consolidation, leading to nearly half of the carriers that used to compete with one another joining forces, resulting in considerably less competition. Of the six carriers that once existed, only three major players remain including Philippine Airlines, Cebu Pacific Group, and AirAsia Group.
Although both Cebu Pacific and Philippine Airlines are formidable competitors, the CEO of AirAsia Philippines believes that in spite of the existing competition, demand is huge for AirAsia's flights to Hong Kong. "We have the allocation to do daily flights for Hong Kong, but we are studying it," said Joy Caneba, CEO of AirAsia Philippines.
AirAsia's Manila to Hong Kong flights will compete directly with Cebu Pacific, Philippine Airlines, Cathay Pacific, and Dragonair. But Hong Kong is not the only destination on the airline's radar. Caneba added that the budget carrier is also considering launching direct flights from Kalibo to Shanghai.
Meanwhile, AirAsia is counting down to the resumption of two direct flights, that were temporarily suspended following a network realignment. AirAsia will be re-launching two routes from Manila to Davao and Cebu to Kota Kinabalu on March 27.
AirAsia is the largest low-cost carrier in Southeast Asia and the third largest carrier in the Philippines with a combined fleet of 18 aircraft between its two local affiliates: AirAsia Zest and AirAsia Philippines. AirAsia Philippines is currently in the final stage of completing its full acquisition of ZestAir.
However, since suspending the route and shifting its hub to Manila, the competitive landscape in the Philippine market has changed drastically with industry consolidation, leading to nearly half of the carriers that used to compete with one another joining forces, resulting in considerably less competition. Of the six carriers that once existed, only three major players remain including Philippine Airlines, Cebu Pacific Group, and AirAsia Group.
Although both Cebu Pacific and Philippine Airlines are formidable competitors, the CEO of AirAsia Philippines believes that in spite of the existing competition, demand is huge for AirAsia's flights to Hong Kong. "We have the allocation to do daily flights for Hong Kong, but we are studying it," said Joy Caneba, CEO of AirAsia Philippines.
AirAsia's Manila to Hong Kong flights will compete directly with Cebu Pacific, Philippine Airlines, Cathay Pacific, and Dragonair. But Hong Kong is not the only destination on the airline's radar. Caneba added that the budget carrier is also considering launching direct flights from Kalibo to Shanghai.
Meanwhile, AirAsia is counting down to the resumption of two direct flights, that were temporarily suspended following a network realignment. AirAsia will be re-launching two routes from Manila to Davao and Cebu to Kota Kinabalu on March 27.
AirAsia is the largest low-cost carrier in Southeast Asia and the third largest carrier in the Philippines with a combined fleet of 18 aircraft between its two local affiliates: AirAsia Zest and AirAsia Philippines. AirAsia Philippines is currently in the final stage of completing its full acquisition of ZestAir.
References: Interaksyon
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