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APG-2018-07 Clark to Taipei.jpg
Formed in 2010 and started operations in 2011. Domestic, regional & international, passenger & cargo, scheduled & charter, jet airplane services.
Clark Diosdado Macapagal International Airport,
Clark Freeport Zone
Angeles City 2023, Pampanga
The Philippines (the Republic of the Philippines) was established in 1898, covers an area of 300,000 sq km, its population is 90 million, its capital city is Manila, and its official languages are Filipino, Tagalog, and English.
December 2010: Since the Philippine Constitution does not allow 100% foreign ownership of a Philippine-registered business, Malaysian investor, Tony Fernandes Chairman of AirAsia (ASW) entered into a $25 million 40 to 60 joint venture (JV) with a group of Filipino businessmen. The joint venture (JV) application was approved on December 7, 2010 by the Board of Investments of the Philippines.
The aim was to provide the lowest airfares for overseas Filipino workers and to attract tourists.
August 2011: 1st A320-216 (4797, RP-C8189), delivery.
November 2011: 2nd A320-216 (4989, RP-C8191), delivery.
February 2012: Air Asia Philippines (APG) received its Air Operator Certificate from the Civil Aviation Authority of the Philippines which gives the airline permission to fly in Philippine airspace.
March 2012: The latest AirAsia (ASW) franchise, Philippines AirAsia (APG), started operations on March 28 with a twin domestic route launch involving popular tourist destinations. Flights from Clark (CRK) to Kalibo (KLO) in the Visayas and Davao (DVO) in Mindanao are now offered each with 2x-daily frequencies, and are operated with (APG)’s small fleet of 2 A320s, which will double in size by the end of this year. “Philippines is a robust and growing market. We are here because we are confident of its growth,” said AirAsia (ASW) Group’s (CEO) Tony Fernandes. Philippines AirAsia (APG) faces AirPhil Express (PHP) on both routes, as the competing airline also launched operations at Clark the on March 29. AirPhil Express (PHP) now serves a total of 4 destinations, including 3x-weekly to Davao and 4x-weekly to Kalibo.
April 2012: Philippines AirAsaia (APG) is tied up with "Victory Liner," one of the largest provincial bus companies operating in the Philippines, to provide free shuttle service for inbound and outbound passengers at Clark International Airport.
Just 1 day after the launch of (APG), also reported on this week, AirPhil Express (PHP) entered (APG)’s territory, starting as many as 4 new destinations from Clark (CRK). Cebu (CEB) and Kalibo (KAL) are now served with 4x-weekly frequencies, while 3x-weekly flights are offered from Davao (DVO) and Puerto Princesa (PPS). All flights are operated with (APG)’s fleet of A320s. AirPhil Express (PHP) will face competition on 3 of the new routes. The Cebu market is already served with 3x-weekly services by Cebu Pacific (CEB), while Philippines AirAsia (APG) launched its 1st 2 destinations, Davao and Kalibo, on March 28 and each is now offered on a 2x-daily basis.
June 2012: Philippines AirAsia (APG) has launched daily flights between its base at Clark (CRK) in the Philippines and Kuala Lumpur (KUL) in Malaysia. This complements the existing daily service between the 2 airports operated by the Malaysian sister airline, AirAsia (ASW). This is (APG)’s 1st international service from Clark, as the 3 previous routes it introduced since its launch at the end of March were all to domestic points.
July 2012: Philippines AirAsia (APG) took a big step in expanding its international network on July 19. (APG), the low-cost carrier (LCC), which commenced operations at Clark (CRK) near Manila at the start of this scheduling season, has until now only served its sister airline’s main base in Kuala Lumpur as well as domestic destinations. (APG) now operates each daily flights to both Hong Kong (HKG) and neighboring Macau (MFM) with its 180Y-seat A320s. There are notably considerable Overseas Filipino Worker communities in both Chinese special administrative regions. Competition on the Hong Kong route comes from SEAir (SRQ)’s 9x-weekly flights in cooperation with Tiger Airways (TGR), as well as each daily flights on Dragonair (DRG) and Cebu Pacific (CEB), and 4x-weekly with Airphil Express (PHP). Meanwhile, Cebu Pacific (CEB) also competes on the Macau route with 3x-weekly.
Philippines AirAsia (APG)'s inaugural international services on July 19, 2012 were especially notable in that the 1st services were to Hong Kong and Macau, 20 nm apart and previously considered too similar to warrant service to both. But regional Asian carriers, and (LCC)s especially, are increasingly finding they can support service to both cities. Also on July 19, 2012, Asiana (AAR) (LCC) subsidiary, Air Busan opened a route to Macau, complementing its Hong Kong service.
While Hong Kong and Macau may be geographically close, the division by the South China Sea dictates different catchment areas, with Hong Kong also serving Shenzhen in mainland China, while Macau can serve the mainland's Zhuhai, whose airport is only for domestic flights. The regions are not equals, and only Thai AirAsia (THA) has more capacity into Macau than Hong Kong. But as Asia's population and economy continues to grow, the Pearl River Delta's airports will be Asia's equivalent to the London, New York City or Sao Paulo airport networks.
December 2012: Philippines AirAsia (APG) continued its international expansion from its main base in Clark (CRK) near Manila. Following flights to Hong Kong, the airline commenced daily frequencies to Singapore (SIN) and 4x-weekly to Taipei (TPE), on December 15 & 16, respectively. While there is no competition on the route to Taipei, the market from Clark to Singapore is already served by SE Asian Airlines (SRQ) (10x-weekly frequencies), Cebu Pacific (CEB) (7x-), and AirPhil Express (PHP) (3x-).
February 2013: Philippines AirAsia (APB) is a low-cost carrier (LCC) based in the Philippines. (APB) established its main base at the Clark International Airport in Angeles City, Pampanga. (APB) is the Philippine affiliate of AirAsia (ASW), a budget airline based in Malaysia.
Parent organization/shareholders: Philippines AirAsia (APB) is a joint venture (JV) between Filipino investors and AirAsia International Ltd, a subsidiary of AirAsia (ASW) Inc. The Filipino group includes Antonio Cojuangco Jr, former owner of Associated Broadcasting Company with flagship television station TV5, Dr Micheal Romero a real estate developer and port operator, and Marianne Hontiveros. The (JV) was approved on December 7, 2010 by the Board of Investments, an agency in the Philippines in charge of big ticket investments.
(IATA) Code: PQ. (ICAO) Code: APG - (Callsign - COOL RED).
Main Base: Clark Diosdado Macapagal International Airport (CRK).
Domestic Destinations: Clark; Davao; & Kalibo.
International Destinations: Hong Kong; Kota Kinabalu, (Malaysia) (ends February 2013); Kuala Lumpur (Malaysia); Macau; & Singapore.
July 2015: Philippines AirAsia (APG) will establish direct flights from Filipino tourist island Panay to China and Korea next year.
(APG) will begin service by September, and will fly from Iloilo International Airport to Xiamen Gaoqi International Airport in the Fujian province and Incheon International Airport, in Seoul, South Korea.
Iloilo’s authorities have indicated they are supporting the Xiamen schedule (partly due to the number of nearby tourist destinations such as Boracay and Kalibo, but also because a large proportion of ethnic Chinese locals originate from Fijian Province in China, of which Xiamen is the capital). In 2014, Korean tourists accounted for some 24% of total passenger arrivals..
Additionally, Iloilo Mayor, Jed Mabilog has said the city will push for added international schedules for the airport.
Mabilog said the province is interested in “building the airport’s international presence further with the intention of more direct [international] flights.” The move underlines the trend for carriers to move out of Manila’s congested Ninoy Aquino International to provincial destinations.
Currently, international flights from Iloilo are limited to Singapore and Hong Kong (Cebu Pacific) and Abu Dhabi via Manila (Etihad Airways (EHD)), with domestic and transfer schedules making up the majority of the airport’s just -<1 million passengers per year.
August 2015: News Item A-1: AirAsia (ASW) reported 2nd-quarter net profit of +MYR243 million/+$64.3 million, a -43.7% year-over-year (YOY) drop from the +MYR367.2 million the company posted in the June 2014 quarter. (ASW) said the drop in profit was due to unrealized foreign-exchange losses on borrowings and one-off costs related to the company’s sale and leaseback of aircraft during the quarter.
(ASW)'s 2nd-quarter revenue grew +1.1% (YOY) to MYR1.32 billion, despite "an absence of marketing activities in the 1st quarter due to the [December 28, 2014] QZ8501 incident, which affected forward sales in (2Q) 2015," the company said.
Operating expenses rose +1.1% (YOY) to MYR1.08 billion; (ASW) posted an operating profit of +MYR243.5 million, up +39.8% (YOY).
(ASW) saw +6.7% (YOY) passenger growth, to 5.95 million passengers, during the quarter. Traffic increased +6.8% (YOY) to 7.26 billion (RPK)s, capacity rose +(6.6)% (YOY) to 9.1 billion (ASK)s, and the passenger load factor for the quarter came to 79.8% LF.
(ASW)'s (RASK) during the 2nd quarter fell -5.3% (YOY) to [USD] 3.96¢, a drop of -0.22¢. (CASK) was down -10.8% (YOY), to 3.24¢ ((CASK) excluding fuel was up +2.3% (YOY), to 1.81¢. (ASW)'s average fuel price per barrel fell -25.4% (YOY) during the quarter, from $114 to $85.
"As seen in (2Q) 2015, we are beneficiary of the low fuel price," (ASW) Group (CEO) Tony Fernandes said. "As of now, the Group has hedged 50% of its fuel requirements for 2015 at an average cost [USD] $88 per barrel on jet kero and remains unhedged for 2016."
Among AirAsia Berhad's associate/affiliate airlines, Thai AirAsia (THA) reported a swing to profitability, with a 2nd-quarter net result of +THB374 million/+$11 million, marking a (YOY) increase of +MYR692 million. Traffic on Thai AirAsia (THA) grew +25.2% (YOY) to 3.57 billion (RPK)s, as capacity increased +20.3% (YOY) to 4.41 billion (ASK)s. (THA)'s resulting passenger load factor for the quarter came in at 81% LF.
Indonesia AirAsia (AWR)'s quarterly net loss deepened to -IDR486.4 billion/-$36.4 million, compared to (AWR)'s -IDR340.3 billion loss in the 2014 June quarter. (AWR) traffic fell -4% (YOY) to 2.2 billion (RPK)s; capacity was up +1.8% (YOY) to 3 billion (ASK)s; passenger load factor for the quarter was 73.4% LF.
Philippines AirAsia (APG)'s net loss lessened (YOY) to -PHP777 million/-$17.2 million, an improvement over (2Q) 2014 by +PHP555 million. Traffic on the airline increased +3.5% (YOY) to 894 million (RPK)s, capacity decreased -8.1% (YOY) to 1.15 billion (ASK)s, and the resulting passenger load factor for the quarter came to 77.6% LF.
Start-up low-cost carrier (LCC) subsidiary, AirAsia India (AAI) saw a net loss of -INR441.5 million/-$6.92 million for the quarter, but posted operating revenue of INR1.15 billion. 2nd-quarter traffic was reportedly 332 million (RPK)s, capacity was 398 million (ASK)s, and (AAI)’s passenger load factor was 83.4% LF.
November 2015: Philippines AirAsia (APG) will delay a projected $200 million initial public offering (IPO) by 24 months to (1Q) 2018, until (APG) has further consolidated its business in the local market.
The original (IPO) date, set for 2016, “will definitely happen, (but) I think we will have to defer that to 2018, 1st quarter,” (APG) (CEO) Joy Caneba said.
(APG) said it would initially look to raising $60 million through a cash call in 2016, and would likely use the cash raised to expand its fleet by leasing 5 Airbus A320-200s from its Malaysia-based parent company, AirAsia (ASW).
But Caneba said (APG) would wait until it had “secured [our] market presence in the Philippines” before it would go through the full (IPO) process and noted that these tentative plans could change in coming months.
AirAsia (ASW) recently said that its major shareholders are “evaluating all strategic options” following reports that Founder Tony Fernandes is looking to move to a private buyout.
It said that one of the options includes investigating approaches from China-based investors to invest in (APG)’s in-house leasing unit, Asia Aviation Capital Ltd, which supplies aircraft to many AirAsia subsidiaries.
November 2015: "AirAsia (ASW) Sets U-tapao Record" by Boonsong Kositchotethana, the "Bangkok Post" November 28, 2015.
AirAsia (ASW) on November 27 introduced 4 new routes out of U-tapao airport, setting a record in the Thai aviation industry for simultaneous launches.
The launch of scheduled flights to Chiang Mai, Udon Thani, Singapore, and Macau demonstrated the low-cost carrier (LCC)'s confidence in new traffic catchments, which the sleepy navy-operated airfield in Rayong could create. Friday's launches brought the number of routes AirAsia (ASW) operates through U-tapao to 8 and it is on course to introduce the 9th route on December 3 with the connection to Hat Yai.
Altogether, (ASW) will offer 46x-weekly through U-tapao, the largest number of connections by a single airline group in the 39-year history of the airport, which served as a major staging and refueling base during the Vietnam War.
(ASW) is largely enthusiastic about the market response to U-tapao as an air gateway to the Eastern Seaboard, particularly Pattaya.
Tassapon Bijleveld (CEO) of Thai AirAsia (THA), declared the intention to "gradually" introduce more routes through the airport. A few more domestic routes such as Ubon Ratchathani, Khon Kaen, and Chiang Rai are on the radar screen, he said.
Internationally, (THA) will be studying the viability of linking U-tapao with India, since many Indians are flocking to Pattaya for holidays, said Mr Tassapon.
AirAsia (ASW), through Thai AirAsia (THA)'s sister airline, AirAsia Bhd of Malaysia, began to descend to the largely empty U-tapao airport from Kuala Lumpur on July 15, triggering traffic flow unseen at the airfield, since it was handed over by the USA in August 1966.
(THA) has already stationed 2 A320-200s at U-tapao, which is now (THA)'s 5th base to support its burgeoning flight activities. Mr Tassapon said the load factors for the 4 routes launched November 27 achieved an average of 80% LF, which is satisfactory.
He credited Pattaya City and the Tourism Authority of Thailand for supporting (ASW)'s bid to make U-tapao a new gateway to the east coast.
December 2015: Malaysian low-cost carrier (LCC) parent group AirAsia Berhad reported a net profit of +MYR160.4 million/+$35.9 million for the 2015 3rd quarter. The company posted revenues of MYR2.8 billion and an operating profit of +MYR332 million.
AirAsia Berhad’s operating segments include associate/affiliate carriers Malaysia AirAsia (ASW), Thai AirAsia (THA), Indonesia AirAsia (AWR), Philippines AirAsia (APG) and AirAsia India (AAI). In spring 2016, the group’s reconfigured subsidiary AirAsia Japan (WAJ) will launch service from Nagoya’s Chubu Centrair International Airport.
“We are witnessing the positive effect of rational pricing and its impact towards passenger travel patterns,” AirAsia Berhad (CEO) Tony Fernandes said in his quarterly outlook statement. “In Malaysia, all signs report toward rational and sustainable growth in the coming quarters, as other players have significantly reduced capacity and rationalized their routes, while the irrational price war that took place in the past is over.”
Citing increased demand by Chinese travelers since May 2015, a +21% year-over-year (YOY) surge, as well as low fuel prices, “we see a great end to the year and a light at the end of the tunnel for [our] Malaysian operations after a series of headwinds that affected our operations,” Fernandes said.
The consolidated AirAsia Berhad group showed passenger growth of +20% (YOY) to 12.88 million passengers during the quarter. Traffic demand increased +22.4% (YOY) to 15.19 billion (RPK)s, as capacity grew +18.1% (YOY) to 18.86 billion (ASK)s. The group’s load factor for the quarter came to 80.5% LF, up +2.8 points (YOY).
Malaysia AirAsia (ASW) posted a 2015 3rd-quarter net result of +MYR166.1 million/+$37.1 million, up +61.4% (YOY) from +MYR102.9 million in (3Q) 2014. Traffic on (ASW) was up +19% (YOY) to 7.77 billion (RPK)s as capacity increased +12% (YOY) to 9.57 billion (ASK)s. (ASW)’s resulting passenger load factor for the quarter was 81.2% LF.
Philippines AirAsia (APG) reduced its 3rd-quarter net loss (YOY) to -PHP934.5 million/-$19.9 million, an improvement >(3Q) 2014 by +PHP491.3 million. (APG)’s traffic increased +37.1% (YOY) to 950 million (RPK)s as capacity grew +4.8% (YOY) to 1.2 billion (ASK)s; passenger load factor came to 82.3% LF for the quarter.
January 2016: Philippines AirAsia has merged with AirAsia Zest to become Philippines AirAsia (APG).
March 2016: "ROUTES: Philippines AirAsia (APG) Targets Profitability in 2016" by FlightGlobal, Mavis Toh, Manila, March 7, 2016.
(APG) expects to report a profit in 2016, despite facing slots constraints and stiff competition in Manila.
In an interview on the sidelines of "Routes Asia" in Manila, (CEO) Joy Caneba said (APG) was profitable in the 4th quarter of 2015, and is confident of maintaining that performance.
This year, (APG) plans to add between 3 and 5 aircraft to its fleet, with an aim of developing Kalibo as its next hub, connecting it to China and Korea. It currently operates 12 Airbus A320s.
“Now we have to stabilize our network and route performance. With the oil price being down, it’s a time for us to improve our route performance,” said Joy.
She added that more aggressive growth will come in 2017, when (APG) plans to expand its operations into Vietnam, 2ndary cities in China, Thailand, and Indonesia. Within the next 5 years, she envisions that Philippines AirAsia (APG) will have a fleet of about 30 aircraft.
One of the biggest challenges for the airline at present, however, is the availability of slots at Ninoy Aquino International airport, where it is “getting really tough” to get new slots. “It’s easy to put into operation an aircraft, but where do you actually park it and do you have slots for routes to develop it?,” said Joy. “With the oil price down, everyone has been trying to put in as much growth as they can, everyone is racing to get slots, but when can we actually get it? It’s delaying our plans and it’s a struggle at the moment.”
(APG) is hence looking to develop hubs outside of Manila, and besides Kalibo, with plans to grow international connections from the coastal city, Puerto Princesa.
Its strategy against the local giants, meanwhile, is to tap the strength of the larger AirAsia (ASW) group network.
“While Philippine Airlines (PAL) and Cebu Pacific (CEB) are giants in the Philippine market, out of the country, we as part of AirAsia (ASW), we’re bigger in different ways. We have already entrenched ourselves in the domestic market, and now it’s up to us to connect that to the international playing field,” said Joy.
April 2017: Boeing Digital Aviation subsidiary Jeppesen has signed with the AirAsia Group to provide digital charting and electronic flight bag (EFB) services across AirAsia (ASW)’s 6 low-cost carrier (LCC) affiliates.
The multiple-year agreement will cover AirAsia (ASW)’s 6 affiliate (LCC) airlines: AirAsia Berhad (Malaysia) (ASW), Thai AirAsia (THA), AirAsia India (AAI), AirAsia Japan (WAJ), Indonesia AirAsia (AWR) and Philippines AirAsia (APG). The AirAsia Group will integrate Jeppesen FlightDeck Pro (EFB) services on Windows-operating tablets to optimize operations, eliminate paper content and improve fuel consumption, the company said.
The agreement with the AirAsia Group follows on Jeppesen’s existing (EFB) service agreement with another of the group’s affiliates, long-haul (LCC) AirAsia X (ASX).
“We had previous experience with digital Jeppesen services with our AirAsia X (ASX) affiliates and extend[ing] these digital navigation and (EFB) services across the AirAsia Group will allow us to continue our transition to a fully digital operating environment,” AirAsia (ASW) Regional Director Flight Operations Adrian Jenkins said.
July 2018: Philippines AirAsia (APG) commenced operations on July 12 between Clark (CRK) and Taipei Taoyuan (TPE), utilizing its core A320 fleet.
The 1,099 km route is set to operate year round, and there are currently no competitors on the route. On Thursdays, the service departs Clark at 17:25, arriving in Taipei at 19:30, with the return leg departing Taipei (Taiwan’s capital) at 19:55 and landing at 22:00. On Tuesdays and Saturdays, the flight operates 25 minutes later, leaving Clark at 17:55 and landing at 20:00, before departing Taipei at 20:25 and touching down in Clark at 22:30.
The AirAsia (ASW) Group has rapidly expanded since it was founded by Tony Fernandes in 2001, now serving 135 routes in 25 markets, with a fleet of 242 aircraft including 212 A320s and 30 A330-300s, according to (ASW) (LCC)’s website.
NOTE: AIRASIA PHILIPPINES (APG)) is listed on the latest European Union (EU) blacklist released 03.04.2012 of airlines whose operations are subject to a ban within the (EU)*. *Airlines listed in Annex A could be permitted to exercise traffic rights by using wet-leased airplanes of an air carrier which is not subject to an operating ban, provided that the relevant safety standards are complied with.