AirAsia parent firm eyes $500-million hangar in Philippines

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Capital A Berhad believes the Philippines' strategic location will make the country a key maintenance hub

MANILA, Philippines – Capital A Berhad, the parent firm of low cost carrier AirAsia, is planning to invest $500 million to establish a maintenance hub in the Philippines.

The company’s chief executive officer Tony Fernandes said in a briefing on Wednesday, July 9, that the move aims to establish the Philippines as a strategic hub for its engineering arm, Asia Digital Engineering (ADE). 

Fernandes cited the Philippines’ strategic location due to its proximity to Asian-Pacific markets, even calling the country the gateway to the Americas.

The exact location of the facility has yet to be determined. But Fernandes said Capital A is eyeing hubs such as Clark and the upcoming New Manila International Airport in Bulacan.

Fernandes said the facility will house up to 10 lines, servicing mostly narrow-body aircraft.

“There are obviously some [maintenance, repair, and overhaul (MRO) facilities] here in Clark [such as] Lufthansa, etc. But because we are such a big Airbus operator and narrow-body operator, we believe that we can bring a special skill set to the Philippines,” he explained.

Fernandes added that they aim to begin construction within the year, and building the MRO facility will take up to a year and a half. Once completed, the hub will add up to 2,500 jobs to its Philippine workforce.

Capital A also plans to establish an academy in the Philippines to train aviation engineers.

ADE was established by Capital A in 2020 as the company aimed to diversify its businesses amid the COVID-19 pandemic.

The Malaysian-based firm currently maintains and services AirAsia and 52 other airlines.

Last year, ADE unveiled Malaysia’s largest MRO hangar inside Kuala Lumpur International Airport, which can service 14 lines.

Teleport

Aside from ADE, Fernandes said Capital A’s logistics arm Teleport also aims to expand its footprint in the Philippines.

Teleport was first established in 2018 with the goal of disrupting the e-commerce logistics market. It utilizes AirAsia’s network to move shipments across Southeast Asia faster and at a lower cost.

As of the first half of 2025, Teleport handled 1.6 million parcels or around 50,000 packages a day. It hopes to move 200,000 parcels daily within the country, as well as from China and the Philippines by the end of this year. – Rappler.com