Philippines AirAsia
Philippines AirAsia is a Philippine low-cost airline and the local affiliate of the AirAsia group.
Last updated August 25, 2026
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Overview
Philippines AirAsia is a Philippine low-cost carrier headquartered at Ninoy Aquino International Airport in Pasay, Metro Manila. It operates under the AirAsia brand and serves domestic Philippine routes together with selected international destinations in Asia. The airline was established in 2010 as a joint venture between AirAsia Investments Ltd., a Malaysian AirAsia subsidiary, and Filipino investors Antonio O. Cojuangco Jr., Michael L. Romero, and Marianne Hontiveros. The ownership structure reflected Philippine rules that historically limited foreign participation in domestic airlines to 40 percent. The airline was formally launched on December 16, 2010, but regulatory processing delayed the start of commercial service. It received its first new Airbus A320 in August 2011 and obtained its air operator's certificate in February 2012. Commercial flights began on March 28, 2012, from Clark International Airport to Kalibo and Davao. The company initially used Clark as its principal base and expanded during its first year to destinations including Puerto Princesa, Kuala Lumpur, Hong Kong, Singapore, and Taipei. It also cooperated with provincial bus operator Victory Liner to provide passenger shuttle services connecting Clark airport with nearby areas. A major turning point came in 2013, when the airline entered a share-swap arrangement with Zest Airways. The transaction gave Philippines AirAsia an 85 percent economic interest in Zest Airways and access to Ninoy Aquino International Airport, while Zest Airways received cash and an interest in Philippines AirAsia. Zest Airways was subsequently rebranded AirAsia Zest. Philippines AirAsia closed its Clark base later in 2013 as part of a loss-reduction effort and shifted its principal operations to Manila. The two operations eventually consolidated under a single air operator's certificate in 2015, and the AirAsia Zest name was retired by the end of that year. The carrier continued developing a hybrid network of domestic leisure, regional business, and visiting-friends-and-relatives markets. It reopened a Clark base in 2017, added destinations such as Boracay, Iloilo, and Ho Chi Minh City, and established a base in Cagayan de Oro in 2018. International growth continued with Osaka service in 2019, followed by other Asian markets. The airline positions itself around AirAsia's low-fare model, high aircraft utilization, direct online distribution, ancillary services, and broad access to Philippine tourism destinations. The COVID-19 pandemic sharply disrupted the business. A planned Philippine Stock Exchange debut was deferred in 2020, international demand fell after travel restrictions and border controls, and the company retrenched 624 employees. It later restored portions of its domestic and international network as restrictions eased. Routes to Dumaguete and Roxas City were added, while flights to several Chinese cities and other regional destinations resumed during the recovery period. Fleet constraints and changing demand subsequently led to route withdrawals, including the ending of service to General Santos and the later closure of the Cebu inter-island operation in 2024. Ownership changed materially in 2019, when F&S Holdings acquired the interests of Alfredo Yao and Marianne Hontiveros and later those of Cojuangco, making Michael Romero the sole local owner. In June 2023, F&S Holdings sold its shares to AA Com Travel Philippines, consolidating the company more directly within the AirAsia group. Philippines AirAsia has continued to review fleet expansion, network allocation, and a possible future public listing. Its business remains exposed to fuel costs, airport capacity, regulatory obligations, aircraft availability, Philippine domestic competition, and the volatility of international travel demand.
History
Philippines AirAsia was created in 2010 as the Philippine affiliate of Malaysia-based AirAsia. The original venture combined AirAsia Investments Ltd. with three Filipino investors: Antonio O. Cojuangco Jr., Michael L. Romero, and Marianne Hontiveros. The company was formally launched on December 16, 2010, but its entry into service was delayed by the extended processing of updated regulatory requirements. It took delivery of its first Airbus A320 in August 2011 and received its air operator's certificate on February 7, 2012. Scheduled operations began on March 28, 2012, from Clark International Airport. The first routes connected Clark with Kalibo and Davao, and the network expanded during the year to include Puerto Princesa, Kuala Lumpur, Hong Kong, Singapore, and Taipei. A shuttle arrangement with Victory Liner helped connect Clark airport with surrounding communities and supported the airline's initial base strategy. In March 2013, Philippines AirAsia agreed to a share transaction with Zest Airways. The deal involved cash and an equity interest for Zest Airways while giving Philippines AirAsia an 85 percent interest in Zest Airways, subject to voting-right limitations. The transaction closed in May 2013 and produced the AirAsia Zest brand. It also gave the AirAsia operation access to Ninoy Aquino International Airport, improving its ability to serve Manila. Later in 2013, Philippines AirAsia closed its Clark base to reduce losses and shifted operations to Manila. International flights later moved to Terminal 3, and the two affiliated operations were brought together under one air operator's certificate in September 2015. The AirAsia Zest identity disappeared in December of that year. The airline rebuilt and broadened its network over the following years. Clark service was restored in 2017, with new or returning destinations including Boracay and Iloilo. Ho Chi Minh City service began later that year, and Cagayan de Oro became another base in 2018. Japan was added in 2019 with Osaka as the first destination, while Bacolod service followed in October of that year. The airline used the AirAsia group model of low fares, high aircraft utilization, direct online sales, and separately priced ancillary products. The pandemic brought a severe interruption. A proposed 2020 listing on the Philippine Stock Exchange was postponed, international travel restrictions reduced demand, and the carrier dismissed or retrenched 624 employees. The company concentrated on preserving and rebuilding domestic operations while border restrictions affected important international markets. Flights to General Santos and Zamboanga City, initially planned for early 2020, eventually began in October. During the 2022 recovery, the airline added or restored selected domestic and international services, including routes to Dumaguete and Roxas City and flights to several regional destinations. Service to General Santos ended in 2022, while Dumaguete and Zamboanga were later withdrawn in 2023. In July 2023, domestic Manila flights moved from Terminal 4 to Terminal 2. International flights initially stayed at Terminal 3, although the airline sought a further terminal transfer. The carrier subsequently adjusted its network in response to demand, fleet availability, competition, and airport constraints. Mainland China flights were terminated in 2024, the Cebu inter-island hub was suspended in October 2024, and Davao service ended in January 2025. The company has continued to revisit fleet growth and the possibility of a future public offering.
- 2023
Ownership consolidates under AirAsia
[1]F&S Holdings sells its shares to AA Com Travel Philippines.
- 2020
Pandemic disruption
[1]The pandemic postpones the planned stock-market debut, causes major travel disruption, and leads to workforce reductions.
- 2019
Japan service begins
[1]The carrier launches its first flights to Japan, beginning with Osaka.
- 2017
Clark base reopens
[1]Philippines AirAsia resumes operations from Clark and expands its Philippine network.
- 2015
AirAsia Zest is absorbed
[1]The affiliated carriers operate under a single air operator's certificate and the AirAsia Zest brand is discontinued.
- 2013
Zest Airways transaction closes
[1]The company gains majority ownership of Zest Airways, which becomes AirAsia Zest, and obtains access to Manila's main airport.
- 2012
Commercial operations begin
[1]After receiving its air operator's certificate, the airline starts scheduled flights from Clark to Kalibo and Davao.
- 2010
AirAsia Philippines is formally launched
[1]The Philippine AirAsia affiliate is formally introduced as a joint venture between AirAsia Investments Ltd. and Filipino investors.
Products and positioning
A value-oriented, low-cost airline offering frequent and digitally distributed domestic and regional flights under the AirAsia network brand.
Scheduled passenger airline · 2012
AirAsia low-cost passenger service
The airline's core offering is scheduled, low-fare passenger transportation within the Philippines and to selected Asian destinations. The model emphasizes direct digital booking, relatively simple fare structures, high aircraft utilization, and separately priced services such as baggage, meals, seat selection, and priority options.
Domestic air travel · 2012
Domestic Philippine network
Domestic services connect Manila and other Philippine airports with tourism, provincial, and regional markets. The network has changed repeatedly as the airline has opened and closed bases and reassigned aircraft toward routes with stronger demand and pricing.
International air travel · 2012
Regional international network
International operations link the Philippines with selected destinations in Southeast and East Asia. Markets served over time have included Malaysia, Singapore, Hong Kong, Taiwan, Vietnam, Japan, and mainland China, although individual routes have been adjusted or discontinued as demand and operating conditions changed.
Brand decisions
2025
End Davao service and reallocate aircraftStrategyBackground
The Davao route faced competitive pricing pressure.
Action taken
Philippines AirAsia ended Davao flights and planned to redeploy aircraft to stronger destinations such as Bohol, Boracay, Palawan, and Tacloban.
Aftermath
The decision reflected a focus on route profitability and capacity concentration.
2024
Terminate mainland China servicesStrategyBackground
Demand for mainland China routes weakened amid geopolitical and market pressures.
Action taken
The airline discontinued all flights to mainland China.
Aftermath
Aircraft and network planning shifted toward other domestic and regional markets.
2024
Suspend Cebu inter-island operationsStrategyBackground
The airline reviewed its hub structure and route economics after changes in demand and fleet availability.
Action taken
It suspended inter-island flights from Cebu, effectively closing its Mactan–Cebu hub.
Aftermath
The carrier later considered restoring Cebu operations as part of subsequent network planning.
2023
Ownership transfer to AA Com Travel PhilippinesM&ABackground
F&S Holdings had become the principal local shareholder after acquiring other Filipino investors' interests.
Action taken
F&S Holdings sold all of its shares to AA Com Travel Philippines.
Aftermath
Ownership was consolidated more directly within the AirAsia group.
2020
Defer planned Philippine Stock Exchange listingStrategyBackground
The COVID-19 crisis, border restrictions, and the collapse in international travel created exceptional uncertainty.
Action taken
Management postponed the planned listing and prioritized domestic operations and recovery.
Aftermath
The company later revisited the possibility of a public debut while continuing network and fleet planning.
2013
Combination with Zest AirwaysM&ABackground
Philippines AirAsia sought greater access to Manila and a larger domestic network.
Action taken
It entered a share transaction giving it majority economic ownership of Zest Airways, which was rebranded AirAsia Zest.
Aftermath
The affiliated operations were eventually consolidated under one air operator's certificate, and the Zest brand was retired in 2015.
2013
Move from Clark to ManilaStrategyBackground
The Clark base was generating losses while access to Manila offered a larger local market.
Action taken
The airline closed its Clark base and shifted its principal operations to Ninoy Aquino International Airport.
Aftermath
Clark service was later restored as the network expanded.
Recent events
- 2025
Philippines AirAsia ends Davao service[1]
Other
Flights to Davao City ended after the airline cited competitive pricing pressure and chose to redeploy aircraft toward stronger-performing destinations.
- 2024
Philippines AirAsia ends mainland China services[1]
Other
The airline terminated flights to mainland China, citing weak demand in a difficult geopolitical and market environment.
- 2024
Philippines AirAsia closes its Cebu inter-island hub[1]
Other
The carrier suspended inter-island flights from Cebu, effectively ending its hub operation at Mactan–Cebu International Airport.
- 2023
AirAsia Philippines transfers domestic Manila operations to Terminal 2[1]
Other
Domestic flights moved from the congested Terminal 4 to the larger Terminal 2 at Ninoy Aquino International Airport, while international flights initially remained at Terminal 3.
- 2023
F&S Holdings sells its Philippines AirAsia interest[1]
M&A
F&S Holdings sold all of its shares to AA Com Travel Philippines, consolidating ownership under the AirAsia group.
- 2020
COVID-19 pandemic delays planned stock-market debut[1]
Regulation · Leadership change · Other
The company deferred plans for a Philippine Stock Exchange listing as travel restrictions and weakened international demand disrupted its business. It also retrenched 624 employees.
- 2015
Operations consolidated under one air operator's certificate[1]
Other
Philippines AirAsia and AirAsia Zest completed operational consolidation, and the separate AirAsia Zest brand was retired.
- 2013
Philippines AirAsia agrees to combine with Zest Airways[1]
M&A
A share transaction gave Philippines AirAsia majority economic ownership of Zest Airways and access to Manila's main international airport. Zest Airways was subsequently renamed AirAsia Zest.
- 2012
Philippines AirAsia launches commercial operations from Clark[1]
Product launch
The airline began scheduled flights from Clark International Airport to Kalibo and Davao after receiving its air operator's certificate.
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