Air Asia eyes public listing in 2017

MANILA, Philippines - Air Asia Philippines, the local unit of low-cost carrier Air Asia Group, may embark on its planned initial public offering (IPO) as early as 2017, a ranking official told The STAR.

Air Asia Philippines chairperson Maan Hontiveros said the IPO could happen toward the end of 2017.

“Maybe toward the end of 2017. It’s flexible, it can be as early as 2017 or 2018,” Hontiveros said in an interview on the sidelines of a women’s forum.

Proceeds would be used to fund its expansion plans which would entail the acquisition of additional aircraft for additional flights, she said.

Hontiveros said the budget carrier is doing well and is set to post profitability this year.

“We’ve turned the corner. And hopefully in the last quarter of this year we’re going to turn a profit,” she said.

In a statement issued in August, Air Asia said it narrowed its loss in the second quarter this year to P777 million, 40 percent lower than the P1.3 billion recorded the same period a year ago as revenues rose six percent to P2.3 billion.

Air Asia attributed the higher revenue to a six percent increase in passenger traffic to 976,381 from 924,155 passengers last year while its load factor rose to 80 percent from 77 percent over the same period.

 Hontiveros said the budget carrier is optimistic about its prospects in the second half of the year, largely driven by continued growth in passengers.

“With Air Asia’s level of service, people know they are getting good value. Next year, we’re ready to expand our operations,” Hontiveros said.

She said the budget carrier has a strong following from all sorts of travellers including the overseas Filipino market as well as leisure travelers.

As chairman of Air Asia, Hontiveros is focused on pushing for the single aviation market in the Asean region as part of the Asean economic integration.