- 02/18/16--21:18:
SAN FRANCISCO: With low oil prices reducing its operating costs, AirAsia Chief Executive Tony Fernandes said the budget carrier was ready to start expanding again in southeast Asia and was eyeing Vietnam and the Philippines.
Fernandes, speaking to reporters on the sidelines of a US-ASEAN trade conference here on Wednesday, said the pace of expansion would depend on securing approvals for new routes and airport access.
"We're going to start expanding again in different parts of ASEAN," Fernandes said.
While some benefits of the collapse of oil prices have been swallowed up by a decline in currencies in its major markets, Fernandes said he viewed the lower fuel costs as "an opportunity to expand, to regrow, to put capital investment in."
In November, AirAsia reported a consolidated third-quarter net loss of 406 million ringgit ($96 million), versus a year earlier net profit of 5.4 million ringgit. It blamed foreign exchange losses and a writedown at its Indonesian affiliate.
The company also had said its major shareholders were evaluating "all strategic options" after Reuters reported that Fernandes was sounding out investors to take the company private in the wake of a steep fall in its shares.
Fernandes said the two Southeast Asia markets that excited him most for expansion were the Philippines and Vietnam, calling the latter "the last piece of our jigsaw puzzle."
But securing route approvals was a problem, and lack of available take-off and landing capacity at Manila's Ninoy Aquino International Airport needed to be resolved, he said.
Clark International Airport could be a good alternative solution, Fernandes said, but this would require the government to invest in a new high speed train into Manila.
Fernandes also said he hoped to win approval for flights to Hawaii this year, but could not predict when that might occur.
http://economictimes.indiatimes.com/news/international/business/cheap-oil-paves-way-to-revive-expansion-airasia-ceo-tony-fernandes/articleshow/51040070.cms
Fernandes, speaking to reporters on the sidelines of a US-ASEAN trade conference here on Wednesday, said the pace of expansion would depend on securing approvals for new routes and airport access.
"We're going to start expanding again in different parts of ASEAN," Fernandes said.
While some benefits of the collapse of oil prices have been swallowed up by a decline in currencies in its major markets, Fernandes said he viewed the lower fuel costs as "an opportunity to expand, to regrow, to put capital investment in."
In November, AirAsia reported a consolidated third-quarter net loss of 406 million ringgit ($96 million), versus a year earlier net profit of 5.4 million ringgit. It blamed foreign exchange losses and a writedown at its Indonesian affiliate.
The company also had said its major shareholders were evaluating "all strategic options" after Reuters reported that Fernandes was sounding out investors to take the company private in the wake of a steep fall in its shares.
Fernandes said the two Southeast Asia markets that excited him most for expansion were the Philippines and Vietnam, calling the latter "the last piece of our jigsaw puzzle."
But securing route approvals was a problem, and lack of available take-off and landing capacity at Manila's Ninoy Aquino International Airport needed to be resolved, he said.
Clark International Airport could be a good alternative solution, Fernandes said, but this would require the government to invest in a new high speed train into Manila.
Fernandes also said he hoped to win approval for flights to Hawaii this year, but could not predict when that might occur.
http://economictimes.indiatimes.com/news/international/business/cheap-oil-paves-way-to-revive-expansion-airasia-ceo-tony-fernandes/articleshow/51040070.cms
Air Asia, the much talked about low cost airlines is all set to expand its fleet size to about eight and further later on to about 16 to 20 planes. This move comes days after a widespread criticsm was aimed at the ruling authorities which made it mandatory for the new airlines to follow the 5/20 rule.
The rule states that any new airline must have a 5 year of service period in serving the domestic circuit as well as a minimum fleet of 20 aircrafts to be able to operate on international routes in India. The rule will hit the likes of Air Asia the heaviest as their entire USP is based on promising dirt cheap international travel. Not just Air Asia, but the newly operational Vistara is also suffering because of the same rule.
The news of the fleet expansion was disclosed by the AirAsia Chief Tony Fernandes, who also confirmed further capital infusion in the airlines. He went on to appreciate the raw potential of India as a market for airlines by stating, "Let the market decide and where routes are needed to be subsidised, subsidise them. India is a huge country with a huge market and it has a massive potential".
Mr Fernandes though, was less than impressed with the fuel taxes and the airport costs in India hinting that they could prove to be a major block for new entrants. He said, "Your airports are very costly and your fuel taxes are one of the highest. Please make business easier to do".
http://www.gizmodo.in/indiamodo/Air-Asia-Set-To-Expand-Its-Fleet-Size/articleshow/51023991.cms
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