AirAsia lands new investor

MANILA, Philippines — The Philippine unit of AirAsia has secured a new investor to boost its resources ahead of plans to expand both fleet and network, according to the airline’s boss Tony Fernandes.

Fernandes is scheduled to fly into Manila today to conclude investment talks with a new shareholder for AirAsia Philippines.

He declined to name the new investor for AirAsia Philippines, but confirmed that there would be expansion projects for the airline before the arrival of additional aircraft.

AirAsia Philippines earlier announced it would be welcoming Airbus A220s to its fleet by 2028. The A220 will replace the A320, which the airline will retire starting this year.

“I’m actually going to Manila (today). We have restructured, we shrunk the airline down, but now with the A220, we have some other plans,” Fernandes said.

The A220 is expected to open up new opportunities for AirAsia Philippines, as the aircraft could land in tighter runways designed for turboprops.

The difference, however, is that the A220 can match the abilities of its bigger brother A320, as it is capable of seating as many as 160 guests and flying 3,450 nautical miles.

The A220, as such, will provide AirAsia Philippines the flexibility to fly domestic and regional routes, but funding has to be boosted so the airline can afford aviation fees.

AirAsia Philippines is struggling to comply with obligations to aviation regulators, particularly the Civil Aviation Authority of the Philippines (CAAP).

In June, the carrier was compelled to settle an outstanding balance of P271.94 million to CAAP to avert flight disruption. Had the airline neglected its dues, CAAP would have the reason to bar it from landing in provincial airports.

Similar to other airlines, AirAsia is taking a beating from fuel price hikes, but managed to recoup 70 percent of cost spikes through fare adjustments.

AirAsia, the parent of AirAsia Philippines, was named the World’s Best Low-Cost Carrier for the 17th consecutive year at Skytrax World Airline Awards 2026 held last week.