CITY OF SAN FERNANDO – If the founder and group chief executive officer of Air Asia Berhad will have his way, he wants the government to remove excise tax on jet fuel using the Clark International Airport (CIA).
“We are hoping we can persuade the government to remove the excise tax in Clark to give it a chance,” said Tony Fernandes, Air Asia CEO.
“I think excise tax should be removed everywhere,” he added during a press conference at the sidelines of the 27th North Luzon Area Business Conference at the LausGroup Event Center here attended by various business chambers from Central Luzon last week.
Fernandes said the Philippines is the only country in the Association of South East Asian Nations (ASEAN) that has excise tax.
“That affects tourism and the Philippines will earn much more money by removing that excise tax,” he stressed.
Looking back, Fernandes said Air Asia lost a lot of money in their initial venture in Clark in 2012.
“Clark part 1, we lost a lot of money. But we’re back,” he said.
“This is Clark part 2. We never give up. Maan (Hontiveros) has always been the biggest believer in Clark,” he added.
Hontiveros is the chairperson of Philippine’s Air Asia (PAA), a subsidiary of Air Asia Berhad. Fernandes said the initial idea of setting up PAA was to try to do something in Clark.
“But we were small. We were kind of crushed by competitors and we lost a lot of money,” he lamented.
“We are bigger and stronger now and so this is round two.”
Fernandes said PAA now has two planes in Clark. “We are going to keep adding planes,” he said.
“I’m thrilled that on Friday, we’ll start out to sell our first international flight from Clark,” he announced.
PAA will mount thrice weekly flights from the CIA to the Taiwan Taoyuan International Airport which services Taipei starting July 12.
“I think there is a huge potential in Clark. But we need some help from the BCDA (Bases Conversion and Development Authority) and from CDC (Clark Development Corp.),” he said.
Fernandes said PAA has been getting help from a lot of congressmen that have supported it:
“I think there is no reason for this project not to really fly without sounding corny.”
“We are a little bit wiser now, we are stronger and our brand is more well-known,” he said.
“Our competitors have taught us to be better. But there are no guarantees.”
“The prospects are great. Really the sky is the limit. It’s down to us, it’s down to support on the airport,” he said.
Fernandes said PAA has big plans for the future:
“Captain Dex (Commendador) wants to take flights much further and longer. So, let’s see.” Capt. Dexter Commendador is CEO of PAA.
“We have a plan for the next five years but as I said earlier, plans are plans. I’d rather do the plan. The time for planning and talking is over. The time for doing is now. We hope the government will do with us and then we will do the rest,” Fernandes said.
Meanwhile, Fernandes said, PAA will also be mounting flights to Seoul before the end of the year.
“It’s time for Filipinos to also go to Korea,” he said.
PAA is also looking to fly to Japan from CIA “most definitely in the first quarter of next year,” Fernandes said.
The Air Asia chief flew in from Kuala Lumpur to keynote the 27th North Luzon Area Business Conference at the LausGroup Event Center on May 17.
