MANILA, Philippines – AirAsia, the world’s low-cost carrier, plans the initial public offering (IPO) for its local subsidiary in Asia, Philippines AirAsia, Inc., next year at a higher than expected value due to strong demand.

Tony Fernandes, AirAsia Chief Executive Officer, stated to reporters based in Manila that the local arm of the company enjoys a strong demand. In spite of losses in 2015, the firm’s operations remained strong, which are largely contributed by over-the-top costs. The CEO said that IPO will take place next year. This was declared by Fernandes in Kuala Lumpur last week.

Philippines AirAsia reported a net operating loss in the third quarter at P915 million. However, it was revealed by Bursa Malaysia’s regulatory filing that this could have been below at P355 million without the legacy aircraft value in August. Alternatively, the carrier’s revenue climbed by 24 percent as supported by average fees hike by 21 percent and passenger volume increase by eight percent.

In October 2015, the local arm of AirAsia Berhad, declared that it would hold an eyed equity tender worth as much as $200 million from 2016 to 2018. The main purpose is to pursue further profit generation. Fernandes stated that they may still increase the value of IPO. He clarified that the offering is drawing near, which is why he does not want to converse regarding the values.

The CEO stated that the IPO proceeds will finance developments of the company. AirAsia in the country is managing 15 Airbus 320s. According to Fernandes, the potential of the local arm is exhibited by the country’s 100 million population. He claimed that the present small-scale tourism market of the country should be broader.

Fernandes chose not to make a statement on the Philippines AirAsia’s new routes. He only stated that the domestic carrier will simply have additional links to secondary spots. The CEO said that they believe the country is already close to three to four very large economies. Furthermore, Philippines is the best-kept enigma of the ASEAN region. Fernandes added that they are going to craft numerous new markets.

Philippines AirAsia is a wholly-owned subsidiary of AirAsia, Inc. It is a partnership firm among investors in the country, namely, Antonio O. Cojuangco, former Ambassador Alfredo M. Yao, Michael L. Romero, Marianne B. Hontiveros, and Malaysia’s AirAsia Berhad. It manages local and international routes out of Manila, Cebu, and Kalibo. The firm is AirAsia Group member, which is an organization awarded by Skytrax as the World’s Best Low-Cost Carrier for seven straight years.

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