Ricky Isla, the CEO of AirAsia Philippines, the Philippine affiliate air carrier of AirAsia Group, announced that the airline started negotiations among financial institutions in order to secure fresh capital and keep itself afloat.
On October 19, 2020, speaking to the local media, Isla said that AirAsia Philippines was in talks with financial institutions to acquire or raise fresh cash within working capital. However, the CEO of the airline did not specify the exact amount of cash the company expected to raise.
“The encouraging results of the gradual operation of our commercial flights will help us to get some positive support from banks along the way,” Isla told local media.
Before entering into discussions with financial institutions, the low-cost air carrier had been looking to go public and raise capital at around $200 million from public investors since 2005. The airline aspired to strengthen the capital by placing an initial public offering (IPO). The airline shelved its plan several times due to weak markets and volatile oil prices at the time.
Isla confirmed that AirAsia Philippines considered issuing public shares once more between the third quarter of 2020 to the first quarter of 2021. However, due to the COVID-19 pandemic, the company postponed the IPO repeatedly at least by 2021.