Sign up | Log in



Home  >>   Daily News  >>   Philippines News  >>   Aviation  >>   Low-cost air consolidation in Philippines
NEWS UPDATES Asean Affairs                    20  September 2011

Low-cost air consolidation in Philippines

Related Stories

May 4, 2011
Philippines open-skies policy issued

February  25, 2011
Singapore's Tiger Airways acquires Philippines' Seair

January  18, 2011
Philippines to have air talks

December  21, 2010
Air price war in Philippines?


September  17, 2010
Philippine budget carrier to go public

April 23, 2010
Philippines' low-cost airline to expand fleet

The consolidation in the Philippines' low-cost carrier market seems "inevitable" be cause of stiff competition in the capital-intensive industry, according to the Centre for Asia Pacific Aviation (CAPA).

In a report, CAPA said new player Spirit of Manila could be the most "vulnerable" because it has not expanded its fleet beyond two aircraft since launching in 2008.

At present, Spirit of Manila flies to Taipei, Bahrain, Bangkok and Macau from Clark, Pampanga.

"But even excluding Spirit of Manila, five low-cost carriers for a market the size of the Philippines could prove to be one or two too many," the CAPA report said.

Other Philippine players in the LCC space are Cebu Pacific, AirPhilExpress, Zest Airways and Southeast Asian Airlines or Seair.

CAPA also said the entry of AirAsia Philippines would likely have an impact on Spirit of Manila and another Clark-based carrier, Seair, which has a tie-up with Singapore Airlines' budget unit, Tiger Airways.

"Clark sits in a free trade zone and has an open skies policy while Manila faces significant bilateral and slot restrictions. As a result rapid capacity growth at Clark will likely be generated as both AirAsia Philippines and SEAir/Tiger expands," CAPA said.

In contrast, AirAsia's entry would have a "minimal" impact on Cebu Pacific and Philippine Airlines, both of which mount most of their flights from the Philippines' main international gateway, the Ninoy Aquino International Airport.

As a new entrant, it will be difficult for AirAsia to get access to the NAIA, the report said. Air Asia Philippines had said it would start operations next month.

AirAsia plans to fly to Singapore, Macau and Hong Kong from Clark's Diosdado Macapagal International Airport using its first Airbus A320.

The second aircraft, which will be delivered next month, will serve Bangkok, Incheon, Kalibo and Puerto Princesa.

Air Asia, through AA International, will hold a40 percent equity in AirAsia Philippines. The remaining 60-percent will be held in equal partnership by Marian Hontiveros, Michael Romero, and Antonio Cojuangco, the former owner of Philippine Long Distance Telephone Co.



Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Today's  Stories    20  September  2011 Subsribe Now !
• Natalegawa to assess Myanmar chairmanship bid
Subcribe: Asean Affairs Global Magazine
• Jakarta monorail project stopped Asean Affairs Premium
• Indonesia may reshuffle cabinet
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• China-Laos presidents meet
• Malaysia leads in corporate vision study
• Low-cost air consolidation in Philippines
• Thai franchises unprepared for AEC
• US-Vietnam trade rises pp

Asean Analysis              20  September  2011

Advertise Your Brand
• Piracy in Asean waters Sponsor Our Events

Asean Stock Watch   20  September  2011

• Asean Stock Watch-September 20 p

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore
• Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline
• Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More


Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2017 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand