SEPANG: Low cost carrier, AirAsia Group Bhd is upbeat on adding more capacities and new destinations as part of its long strategies, despite the current higher oil prices.
Expressing optimism, chief executive officer Tan Sri Tony Fernandes said the airline would not take a short-term decision by cutting capacities but rather invest for the airline’s future profitability.
“We believe Malaysia is now becoming the centre of low-cost travel. We will continue building that and adding capacities as well as finding ways to reduce cost, while keeping fares low to allow the market to grow,” he told reporters after officiating a ground-breaking ceremony of dedicated processing centre (security, immigration and customs) for departing crew at klia2, today.
Fernandes is hopeful that airlines would cooperate together with airports operator (Malaysia Airports Holdings Bhd), Ministry of Transport as well as other related parties in finding ways to reduce cost and improve efficiency.
“This in turn would make Malaysia as a number one low-cost hub in Asia Pacific,” he said, adding that the collaboration will improve both airlines and airports operators’ income.
Fernandes said the cooperation would also beneficial to bring economic activities and create more jobs in tourism as well as increase air traffic in the country.
Fernandes said AirAsia would keep growing and increase market share by introducing more new destinations.
“About 53 per cent travellers are now travelling in low cost in Asia Pacific region. Our strategy is to increase frequencies – adding more (flights and seats) that means price will be reduced,” he said.
He said AirAsia will be adding about 267 flights over the next festive period and confident of achieving full capacity.
“To deal with higher oil prices, we have to increase our efficiency and turnaround time. We continue to add about 20 planes every year for AirAsia.
“We see no reason to slow down. We expect to increase up to 10 per cent additional capacity per year,” he said, noting that the demand was very strong and looking forward to better fourth-quarter passenger growth.
Fernandes said technology expected to play a big part in increasing the airlines’ efficiency, while leveraging on its huge data based to generate more income.
“Low cost doesn’t mean low quality. While, there is a crisis, it is an opportunity for Malaysia to step ahead and drive efficiency. There are lots more ideas to increase efficiency by the Transport minister and MAHB,” he said.