AirAsia's planned MRO facility could position PH as aviation hub, says DOF

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AirAsia is set to make a significant move in the Philippines, with plans to build a maintenance, repair, and operations (MRO) facility in the country.

During the World Economic Forum (WEF) in Davos-Klosters, Switzerland, finance secretary Ralph G. Recto (pictured, right) met with AirAsia CEO Anthony F. Fernandes (pictured, left) to discuss the airline's expansion plans and opportunities in the Philippines.

AirAsia "commended the government's efforts in improving access to Philippine destinations through massive physical and transportation infrastructure projects as the country continues to boost its tourism industry," the Philippine department of finance (DOF) stated in a social media post.

The MRO project, which is expected to generate more jobs, could play a pivotal role in positioning the Philippines as a key regional aviation hub, according to the DOF.

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This could further improve the unemployment rate, which reached 3.9% as of October 2024, compared to 4.2% the year before. The data translates to an additional 369,000 Filipinos gaining jobs within that period.

For AirAsia, the planned establishment of an MRO facility in the Philippines comes at a time when the Southeast Asia aviation MRO market is experiencing significant growth, driven by a surge in air travel and fleet expansion.

With the regional MRO market expected to reach US$13.48 billion by 2032, growing at a compound annual growth rate of 7.8%, according to Allied Market Research, AirAsia's investment could position the Philippines as a key player in this rapidly expanding sector.

As the Philippine government continues to focus on infrastructure development and supportive policies, AirAsia's MRO facility could help address workforce shortages, particularly by fostering local talent through partnerships with aviation training institutions.

The demand for reliable maintenance and repair services has also led to collaborations, such as the joint venture between AirAsia Group and Singapore's SATS, which is expected enhance MRO capabilities in the region, Allied Market Research noted.

At the moment, key players in the MRO market in Southeast Asia include Garuda Maintenance Facility AeroAsia in Indonesia and Sepang Aircraft Engineering in Malaysia.

During the WEF, Recto also met with other leaders, including Philips CEO Roy Jakobs and vice president Jan-Willem Scheijgrond to discuss advancing digital healthcare in the Philippines, with Philips expressing its commitment to cutting-edge solutions and government collaboration.

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