AirAsia group, UnionDigital Bank forge finance partnership; airline pledges to invest $1 billion

CAPITAL A Berhad, the parent firm of low-cost carrier AirAsia Philippines, entered into a finance partnership with the digital bank subsidiary of listed lender Union Bank of the Philippines.

In a media release, Capital A and UnionDigital Bank announced the tie-up, which they forged on Sunday via a press conference during the APEC Business Advisory Council (ABAC) meeting in Cebu.

“For Capital A, the vision has always been to provide low cost, best value services, connecting people and realizing dreams, for people of ASEAN and beyond,” Anthony Francis Fernandes, chief executive officer of Capital A, said.

The partnership will involve three of Capital A’s subsidiaries: AirAsia, airasia Superapp, and BigPay. UnionDigital Bank will be providing embedded finance in partnership with Capital A’s fintech arm BigPay within the booking channel airasia Superapp.

“With UnionDigital as our proud partner, we are now on our way to creating a future where travel meets innovative financial solutions that facilitate everyone’s dream journeys with unparalleled ease,” Mr. Fernandes said.

He said seven out of 10 of AirAsia’s customers in the Philippines save up for their travel plans.

“It is this inspiring dedication that fuels our determination to break down barriers and create a more connected and inclusive global community,” he added.

The partnership will allow BigPay, a mobile wallet providing financial services in Malaysia and Singapore, to expand into the Philippine market.

“As tourism flourishes in the region, we are excited to elevate the end-to-end travel and payment experience of Filipinos through our collaboration with UnionDigital Bank and airasia,” said Zubin Rada Krishnan, chief executive officer of BigPay.

“Through this partnership, BigPay is one step closer to making our financial services highly accessible in the Philippines, with the mission of empowering people to level up their lives, one transaction at a time,” he added.

Henry Rhoel R. Aguda, president and chief executive officer of UnionDigital Bank, described the move as a “pivotal moment for the two important sectors in the Philippines.”

“We are forging a path towards greater convenience, accessibility, and innovation to empower Filipinos to live better lives,” he said.

“As we make these partnership announcements at ABAC, we are not just setting the stage but building a solid foundation for a brighter future with BigPay and AirAsia by our side,” he added.

INVESTMENT IN THE PHILIPPINESMeanwhile, Mr. Fernandes said he had pledged to invest $1 billion to expand Capital A’s operations in the Philippines at a meeting with President Ferdinand R. Marcos, Jr.

Mr. Fernandes told reporters on Sunday that the majority of the investment will be on aircraft in connection with his company’s logistics business.

“We discussed many things, obviously airports being one. I think we are committed to invest $1 billion mostly in the field of aircraft. But the aircraft also has enormous benefits for the logistics business,” he said.

Mr. Fernandes said the Philippines is perfectly placed to grow in the logistics business because of its proximity to other countries in Asia as well as its connection to the US.

Aside from aircraft and logistics, he said Capital A will also invest in BigPay, airasia Superapp, and in engineering.

“People don’t know how great this country is and one thing AirAsia group is good at is promoting, and Superapp is gonna be a major vehicle to tell the world how good this country is,” Mr. Fernandes said.

For its engineering business, the company is planning to build a maintenance, repair, and overhaul (MRO) facility in Cagayan de Oro.

“We want to build an MRO with 1,300 workers and our team is looking at Cagayan de Oro,” said Mr. Fernandes. — Justine Irish D. Tabile