AirAsia denies Philippines operations grounding, cites coordinated smear campaign to harm competition.

AirAsia Group and AirAsia X have denied reports that Philippines AirAsia (flight code Z2) is being grounded, calling the claims “co-ordinated and sensationalised” and part of a deliberate smear campaign meant to weaken fair competition in the Philippines. The airlines said all Z2 flights remain fully operational and continuing as scheduled, citing only normal factors such as weather and routine operational issues. The denials come after Philippine media reported that the Civil Aviation Authority of the Philippines issued a cease-and-desist order over an outstanding bill of PHP270 million, which the airline says does not reflect the carrier’s actual operating status. AirAsia executives, including Tony Fernandes, argued that limiting competition would harm travelers by reducing choice and raising fares. They reiterated their commitment to affordable air travel and said they are investing in Philippine airport infrastructure at Ninoy Aquino International Airport and Mactan-Cebu International Airport to improve connectivity and lower costs. Fernandes also pointed to fleet expansion plans to support continued growth in the market.
AirAsia said the Philippine regulator’s reported cease-and-desist action was specifically directed at halting the airline’s operations “at its airports” over an outstanding PHP270 million bill—an operational-level claim the airline says does not match its actual flight status.
AirAsia and AirAsia X argued the “co-ordinated and sensationalised” stories are meant to “create conditions that could lead to a monopoly,” saying: “A monopoly benefits no one except dominant market players,” and for travellers it “often results in reduced competition, fewer choices and significantly higher airfares.”
Tony Fernandes said the airline’s commitment is long-standing, adding that “For over a decade, we have played a key role in democratising air travel, making flying accessible to millions of Filipinos who may not otherwise have had the opportunity to travel by air.”
AirAsia Group said its growth plan is tied to fleet commitments already in motion, with Fernandes stating: “As we expand our fleet and aircraft orderbook, we intend to deploy more aircraft into our operations in the Philippines.”
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