Romero takes control of local AirAsia unit

MANILA, Philippines — The group of Rep. Michael Romero has taken majority ownership in the company that owns and manages Philippines AirAsia as part of plans to take the budget carrier into new heights in the coming years.

Romero-owned F&S Holdings acquired 28.7 percent shares of AirAsia Inc. (AAI), raising its total stake to 44.4 percent from the previous 15.7 percent.

The shares were bought from former ambassador Alfredo Yao and Maan Hontiveros, who previously held 13 percent and 15.7 percent stake in AAI, respectively.

“We are adding equity and the Romeros have deep pockets,” said Hontiveros, who sits as AAI chair with her three percent stake in F&S Holdings.

A total of 40 percent shares in AAI are still owned by Air Asia Bhd founders Tony Fernandez and Karmarudin Menarum, while the remaining 15.7 percent is held by Antonio Cojuangco’s TNR Holdings.

As the new majority shareholder in AAI, Romero said his group has big plans in store for the popular budget carrier, including its long planned initial public offering (IPO).

Romero said the company is looking to raise about $200 million from the IPO which could happen by November or December.

“We also plan to do an IPO within the year, hopefully, upon recapitalization and restructuring of the company,” he said.

AAI targets to complete the restructuring of the company by September and then move forward with the IPO.

“The company is now turning around and becoming very profitable. Our first quarter revenues has hit already a record high of P6.68 billion and a profit of about P454 million. We plan to make our revenues from P30 billion this year to about P50 billion in tree years’ time,” Romero said.

In terms of fleet expansion, the company said it looks to add between five and 10 new aircraft every year.

The AirAsia Group is the leading and largest low-cost carrier in Asia, servicing the most extensive network of over 135 destinations across all ASEAN countries, Asia, India, Australia, China, Middle East and Hawaii in US.

In the Philippines, AirAsia has a current fleet of 23 from only two aircraft in 2012 when the airline began its commercial operation in Clark, Pampanga.