Energy & Technology

MANILA: Philippine budget airline Cebu Pacific has entered into a short-term wet lease agreement with Saudi low-cost carrier flyadeal, leasing two Airbus A320 aircraft along with pilots, cabin crew and maintenance services. The move is aimed at monetising excess capacity during the Philippines’ traditionally lean travel period in July and August. Under the agreement, Cebu Pacific will deploy the aircraft to flyadeal during the Saudi summer travel peak. The wet lease arrangement allows flyadeal to scale its operations in the high-demand period without the immediate need for additional aircraft or crew recruitment. “We have this natural symbiosis where my peak is not his and vice versa,” said Steven Greenway, CEO of flyadeal, during a joint press briefing. Michael Szucs, CEO of Cebu Pacific, noted that the deal marks a first for the airline, which has historically never leased out its aircraft. However, he signalled that more such agreements could follow as the airline continues to expand its fleet. “We’re testing the waters,” Szucs said. Cebu Pacific had last year placed an order for at least 70 Airbus A321neo aircraft to strengthen its long-term fleet requirements. The new aircraft will gradually be added to its network in the coming years, opening the door for further leasing opportunities during the airline’s off-peak seasons. The partnership also aligns with flyadeal’s broader regional ambitions. The Saudi budget carrier, a subsidiary of Saudia Group, has been ramping up its long-haul operations, recently ordering 10 Airbus A330neo wide-body jets. The airline expects three of the 10 aircraft to be in service by July 2027, with two more arriving later that year. “Southeast Asia is our key destination for these aircraft,” Greenway added in an interview, identifying the Philippines, Malaysia and Indonesia as high-potential markets. “Obviously, the Philippines is interesting because of our partnership with Cebu Pacific.” Flyadeal also views the Philippines as a key market to capture travel demand to and from the Gulf region, especially among overseas Filipino workers and Muslim pilgrims travelling to Saudi Arabia for the annual Haj pilgrimage. The agreement represents a strategic use of underutilised assets for Cebu Pacific while offering flyadeal operational flexibility in its growth trajectory. It also underscores the increasing collaboration between budget carriers as they seek to optimise fleet use and expand into new markets amid ongoing global recovery in the aviation sector.–REUTERS

Electric vehicles (EVs) are steadily becoming a mainstream transport option in Southeast Asia, with increasing numbers of consumers embracing cleaner alternatives. According to Mr Vijay Ratnaparkhe, President of Bosch Southeast Asia, the region has witnessed a notable rise in EV adoption, climbing from 9 per cent in 2023 to 13 per cent in 2024. In Singapore, the shift has been particularly significant, with one-third of new vehicle registrations in 2024 being electric, compared to nearly one in five the previous year, and just over one in ten in 2022. Despite this encouraging trend, progress has not been as rapid as initially anticipated. Mr Ratnaparkhe noted that key challenges persist—specifically around cost, battery performance, resale value, and the accessibility of charging infrastructure. In response, global technology supplier Bosch continues to support the region’s transition to electric mobility by addressing infrastructure gaps and working to dispel prevailing misconceptions surrounding EVs. Southeast Asia’s geographical diversity and infrastructure development present a complex combination of challenges and opportunities. While certain markets have benefited from swift EV uptake thanks to government incentives, others lag due to infrastructure constraints and consumer uncertainty. One of the most pressing barriers remains the limited availability of reliable and accessible charging networks. Without sufficient charging stations, many prospective drivers experience “range anxiety”—the concern that their vehicle might deplete its battery before locating a charging point. Mr Ratnaparkhe explained that while early EV models had limited driving ranges, the latest generation of vehicles has seen considerable improvement. “Thanks to ever-improving range prediction and navigation systems showing available charging stations, EV drivers can now clearly understand how far their battery will take them and where nearby charging stations are,” he said. “By continually assessing the driver’s surroundings, the vehicle can provide precise range calculations, minimising anxiety. With advances in battery technology and more efficient components—such as the use of silicon carbide in inverters—EVs will continue to achieve greater distances on a single charge.” Another area of concern is long-term battery health and the associated impact on resale value. Cost-conscious consumers in the region often take into account long-term maintenance expenses and future asset value when considering a switch to EVs. Many continue to favour hybrid vehicles as a more familiar and less risky investment, especially in light of concerns surrounding battery degradation. To address this, Bosch has introduced a battery certification service to help evaluate the condition and residual value of batteries in used EVs. This initiative is designed to increase consumer confidence in the second-hand EV market. Despite the growing popularity of EVs, persistent myths remain. A common misconception involves concerns over EV performance in wet weather or during floods—scenarios often encountered in the region. “EVs are designed and tested to resist water damage, just like combustion cars,” said Mr Ratnaparkhe. “The battery pack is well insulated and reinforced with shielding, while the high-voltage cables connecting the battery to the motors are also insulated. Electric and hybrid vehicles include fail-safe systems that automatically shut down electrical components in the event of a collision or short circuit. While it is never advisable to drive through floodwaters, concerns over EV safety in such situations are largely unfounded.” Cost remains another perceived barrier. Mr Ratnaparkhe noted that while tariffs continue to influence supply chain dynamics, the overall cost of EV ownership is becoming more competitive. Thanks to economies of scale and advancements in battery technology, the upfront cost of EVs is falling. In addition, tax incentives and exemptions from road taxes in certain countries are helping to close the price gap between EVs and traditional vehicles. With continued technological innovation and robust government support across the region, EV ownership is becoming an increasingly viable and environmentally responsible choice. Bosch’s internal data indicates that EVs produce between 20 and 30 per cent less carbon dioxide over their lifecycle compared to equivalent petrol or diesel vehicles—taking into account manufacturing, usage, and recycling phases. Looking ahead to 2030, the company anticipates even greater environmental advantages, with new EVs expected to emit approximately 40 per cent less carbon dioxide than their conventional counterparts. Mr Ratnaparkhe remains optimistic about the acceleration of EV adoption in Southeast Asia. A broader range of models, increased competition from new entrants, and decreasing battery costs are contributing to a more attractive EV market. In addition, younger, environmentally conscious consumers are playing a pivotal role in driving demand. Meanwhile, artificial intelligence is further enhancing the EV experience, enabling real-time analytics, predictive maintenance, and personalised driving features. “Software will play an increasingly important role in shaping the future of mobility,” said Mr Ratnaparkhe. “With new hardware and software solutions, we are helping to make mobility safer, more efficient, and more sustainable.”

Hon Hai Precision Industry Co, widely known as Foxconn and the primary assembler of Apple Inc’s iPhones, has committed US$1.5 billion (RM6.4 billion) to its Indian subsidiary, reinforcing its strategic pivot away from China. The investment, made via Foxconn’s Singapore-based unit, was disclosed in a regulatory filing on Monday. The move is part of Foxconn’s broader initiative to expand its manufacturing footprint in southern India. The Taiwan-based electronics giant is actively developing new facilities and boosting production capacity in the region. The company has not issued an official statement in response to media inquiries regarding the investment. Apple is intensifying its efforts to diversify its supply chain by shifting a significant portion of its iPhone production to India. The company aims to source the majority of iPhones sold in the United States from India by the end of next year. The transition has drawn criticism from former US President Donald Trump, who recently disclosed that he urged Apple CEO Tim Cook to halt the development of production facilities outside the United States. This latest development underscores Apple’s ongoing efforts to reduce exposure to China amid rising geopolitical tensions and trade uncertainties. Although Apple has pledged to invest US$500 billion domestically over the next four years and hire more American workers, the company currently has no smartphone manufacturing operations within the United States. The majority of iPhone production remains concentrated in China. Foxconn is simultaneously scaling up its investments in the United States as part of its risk mitigation strategy in response to potential future tariffs and political pressures. India has emerged as a key manufacturing hub in Apple’s global supply chain. In the 12 months ending March, Apple assembled US$22 billion worth of iPhones in India, representing a nearly 60% increase in output year-on-year. Foxconn’s southern India facility serves as the central hub for the production of India-assembled iPhones. Tata Group, through its electronics manufacturing arm, has also become a significant partner in Apple’s India operations, following its acquisition of Wistron Corp’s local business and the management of Pegatron Corp’s Indian activities. -Bloomberg