AirAsia unperturbed by Malindo aggressive expansion

AirAsia unperturbed by Malindo aggressive expansion
Business & Markets 2013
Written by Bernama
Wednesday, 05 June 2013 12:57


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KUALA LUMPUR (June 5): AIRASIA BHD [] remains unfazed by the aggressive expansion plans unveiled recently by its rival Malindo Air, citing network connectivity as a major strength for the airline, moving forward.

AirAsia chief executive officer, Aireen Omar said the frills-free airline is not really concerned about the competition posed by its peer, due to differences in the business models.

"We have actually reported growth consistency in terms of network expansion and financial reporting, in line with the whole AirAsia Group's growth prospects.

"Obviously, we will always monitor the competition. We welcome them because they will make us better and sharper, as to what we want to do," she told Bernama.

Malindo Air was reported as desiring to kick-start its international flights by flying to India and Singapore after August, this year.

In India, the hybrid carrier is looking to first fly into New Delhi, Cochin and Trichy from Kuala Lumpur.

Cochin and Trichy are said to be AirAsia's strongest Indian routes, while the New Delhi route was dropped by its sister airline, AirAsia X, due to high operational costs.

However, industry insiders have indicated that AirAsia might be looking to revive the axed New Delhi and Mumbai routes, to establish a strong northern domestic connectivity for the soon-to-be operational, AirAsia India.

Aireen said the AirAsia group has an almost complete travel map via its network, for customers, which gives it an edge when compared to Malindo Air.

She said the AirAsia Group across Malaysia, Indonesia, Thailand, the Philippines and Japan, had created a strong brand and carved a niche for itself among low-cost airlines globally, due to its extensive network reach, especially in the Asean region.

"We are certainly riding on the brand's success among existing customers, while working hard to attract new guests on board.

"Adding to our brand success is AirAsia X, AirAsia Expedia, Tune Hotels and the many other entities which are part of the group. We do certainly have the compete travel package for our customers," she added.

According to Aireen, it will take a huge amount of time, for a budding airline to compete at the same level.

"AirAsia will continue to work hard to maintain its edge and establish a stronger network, while keeping the low cost factor in all business segments.

"We will always focus on improvement, on what we can drive for the future, to strengthen our market, while at the same time continuing to emphasise on productivity," she said.

Malindo Air is a joint venture between Indonesia's Lion Air and Malaysia's NADI (National Aerospace & Defence Industries).