BusinessWorld: Asian Spirit focuses on route expansion, forgets SEAIR link

CEBU CITY, Philippines — Budget airline Asian Spirit, Inc. expects the delivery next month of the first of four Airbus aircraft that will be used to serve major domestic routes and planned regional services. Three more wide-bodied aircraft and five smaller turbo propeller planes will be delivered in the next six months as Asian Spirit penetrates the major domestic routes and develops new hubs in Mindanao. Except for one or two that will be company-owned, these new aircraft would be on long-term leases, Asian Spirit Chairman Donald G. Dee said. Mr. Dee said they are pursuing expansion plans this year without Southeast Asian Airlines, Inc. (SEAIR). Merger talks between the two budget carriers have hit a snag. "[The merger] is still hanging in the air. We have made our offer, but they have not come back to us. It’s up to them. We are now totally focused on expanding our routes and getting more equipment," Mr. Dee said. He said they plan to open Manila-Cebu and Manila-Davao routes using the new Airbus aircraft. The carrier is also looking at more regional destinations, starting with Macau from Cebu. It currently operates thrice-a-week flights between Zamboanga and Sandakan, Malaysia. Mr. Dee added that they are developing Mindanao hubs Zamboanga and Cagayan de Oro "very seriously" despite their perceived peace and order problem. "People forget that Mindanao is very big. If there’s a problem, it’s only in certain areas," he added. Asian Spirit flies to Jolo, Sulu and Tawi-Tawi from Zamboanga. Mr. Dee welcomed the competition from PAL Express, Philippine Airlines’ low-cost brand, in secondary and tertiary routes, saying this would benefit travelers. Asian Spirit, he added, is about to penetrate major domestic routes served by PAL and Cebu Pacific. Rising fuel prices are a concern, but Mr. Dee said they are managing the situation. The acquisition of new aircraft will improve efficiency and help the airline cope with rising fuel prices, he added. AMY Holdings, Inc. of juice king Alfredo M. Yao recently acquired Asian Spirit from a team of aviation industry professionals that established the carrier in 1996. Asian Spirit now flies to Caticlan in Aklan, the jump-off point to Boracay island, from Manila and Cebu, as well as to nine other domestic secondary and tertiary routes from Manila. — Marites S. Villamor, BusinessWorld