Post by Laoupdate on Mar 26, 2005 18:21:04 GMT -5
CEO: AirAsia up to the challenge
By VANITHA NADARAJ in XIAMEN
AIR routes to eight destinations in China and four Asean countries within six months may seem too much for a three-year-old airline to handle, but Tony Fernandes feels his AirAsia will rise up to the challenge.
The AirAsia group CEO was oozing with confidence when he told Malaysian reporters in Xiamen recently that his airline had the aircraft, manpower and resources and that it was not spreading itself thin. Only a year ago, he said AirAsia was not ready for China.
AirAsia will begin daily flights to Xiamen on April 25 through its Thai sister company, making it the first no-frills airline in Asia to enter China. It is making arrangements to fly, within the next six months, to seven other southern China destinations - Guangzhou, Naning, Kun-ming, Wuhan, Chengdu, Chongqing and Hankou.
“We were not ready at that time, but now the market is right, the (Xiamen) airport is right, Thai AirAsia is strong and Macau is good,Ehe said at a press conference here after a function to announce the airline’s entry into China, attended by over 80 reporters from China, Thailand, Indonesia and Malaysia.
Macau was added as a destination in the middle of last year and it has proven to be a lucrative move.
There will be more destinations added to its list by September when flights commence to Laos, Vietnam, Cambodia and the Philippines.
AirAsia currently operates over 100 point-to-point domestic and international flights from KL International Airport, Senai Airport, Bangkok International Airport and Soekarno Hatta International Airport in Jakarta.
Despite new destinations being introduced at such a break-neck speed, Fernandes is optimistic that his airline is capable of meeting market demands.
From a two-aircraft company, AirAsia is now in possession of 28, with 40 Airbuses expected from December onwards, making it the leading low-cost carrier in South-East Asia, with a market capitalisation of more than RM4bil - all within three years. It plans to raise orders for Airbus aircraft to 60, with an option for another 40.
Fernandes said that with the introduction of the new routes, the low-cost carrier might have to review its eight million-passenger target for this year. Over the last three years, AirAsia had about nine million passengers using its services.
Last year, AirAsia, the first low-fare and ticketless airline in Asia, formed successful joint ventures in Thailand and Indonesia where AirAsia holds 49% stake in both companies.
Thai AirAsia, a joint venture with Thailand’s largest telecommunication conglomerate Shin Corp, took off in February last year and has to date carried over one million passengers. PT Awair, re-launched as a low-fare airline in December, presently serves five domestic destinations in Indonesia.
Fernandes said: “Coming to China is a huge step. Another major step will be India Ebut not right now.Enbsp;
Or so he says.
Source: biz.thestar.com.my/news/story.asp?file=/2005/3/25/business/10488065&sec=business
Photo: www.mojavebooks.com/mhv/photos/040122/airasia-737-N250AT-9040121-02-8.jpg
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