AIRASIA, INC. (AirAsia Philippines), which currently operates on a one-year provisional authority, is poised to bag a five-year permit from regulators after proving that the airline complies with the foreign equity limits.
In a board meeting late Thursday, the Civil Aeronautics Board (CAB) decided to give the airline a certificate of public conveyance and necessity (CPCN) to operate domestic and international flights for the next five years.
“The board is set to give them the CPCN, which means that [issues surrounding] its ownership [structure] has been resolved,” Ma. Elben S. L. Moro, head of CAB’s hearing and examiners division, said in an interview on Thursday.
But the approval remains just “in principle” until a final resolution is signed by the board composed of representatives from the Tourism and Transportation departments and the Civil Aviation Authority of the Philippines, Ms. Moro noted.
CAB Executive Director Carmelo A. Arcilla, in a separate text message yesterday, said the final resolution “may be released next week or the following week.”
Sought for comment, AirAsia Philippines Chief Executive Marianne B. Hontiveros welcomed CAB’s decision.
“Their accusations [that we breached the foreign equity limit] were absolutely not true… We are excited to be finally given the CPCN,” Ms. Hontiveros said in a telephone interview on Friday.
Local carriers Cebu Pacific, Philippine Airlines, Zest Airways and Airphil Express had earlier took issue with the company’s equity structure, management control, and its capability to mount flights, CAB documents showed.
AirAsia Philippines maintained that it is only 40% owned by Malaysia’s AirAsia Bhd., with Philippine businessmen Antonio O. Cojuangco III, Michael L. Romero along with Ms. Hontiveros each owning a 20% stake.
Ms. Hontiveros said the permit will allow the company to map out long-term plans, including a possible listing debut. -- Cliff Harvey C. Venzon
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