AirAsia pushes back IPO

Philippines AirAsia Inc.’s plan to go public within the second semester may be pushed back to a later date should the government decide to close Boracay to rehabilitate the tourist island.

Philippines AirAsia chief executive officer Dexter Comendador said in an interview, the government’s closure of Boracay may affect the timing of the company’s initial public offering (IPO) and delay it.

The low cost carrier is looking to raise around $250 million from the IPO within the second semester to finance operations particularly for aircraft and new facilities.

“Boracay is a big portion of our operations. It (closure) would damage the picture of the company,” Comendador said.

He said one-third of the passengers served by the carrier go to Boracay.

Preliminary operating statistics data showed Philippines AirAsia carried 5.28 million passengers last year, up from the 3.99 million served in 2016.

Last week, the interagency task force led by Environment and Natural Resources Secretary Roy Cimatu with the Department of Tourism and the Department of the Interior and Local Government, recommended the total closure of the island for a maximum of one year.

President Duterte has threatened to close the tourist destination due to lack of sewerage system.

Duterte has likewise said he may declare a state of calamity in Boracay, and file cases against local officials responsible for allowing the tourist destination to deteriorate.

Comendador said the carrier expects to end this year with 23 aircraft, up from 17 last year.

As the carrier is increasing the number of aircraft being used, it also plans to launch flights to new destinations.

Comendador said Philippines AirAsia would begin flights from Manila to Bangkok in Thailand, as well as from Cebu to Shenzhen in China by next month.

By the fourth quarter, the carrier would likewise start operating flights from Manila to Osaka in Japan.

Aside from Manila, Philippines AirAsia operates flights to or from Davao, Cebu, Kalibo, Caticlan (Boracay), Tacloban, Tagbilaran (Bohol), Puerto Princesa (Palawan), Clark, and Iloilo in the Philippines.

It also has international flights to or from Shanghai and Guangzhou in China, Taipei in Taiwan, Incheon (Seoul) in South Korea, Hong Kong, Macau, Kuala Lumpur and Kota Kinabalu in Malaysia, Singapore, as well as Jakarta and Bali in Indonesia. –