AirAsia targets 'huge' growth

AirAsia could eventually grow to operate a fleet of over 400 aircraft, according to its CEO, the newly crowned CAPA Aviation Executive of the Year, Tony Fernandes.

Speaking at a press conference before the start of the second day of the Centre for Asia Pacific Aviation’s Outlook 2006 Summit in Kuala Lumpur, Tony Fernandes responded to a question about how big his carrier can be by remarking that US LCC, Southwest Airlines, started with three aircraft and now has about 400, and “they’re in a smaller market than ours.”

Mr Fernandes, who the evening before was named the CAPA Aviation Executive of the Year for the second consecutive year at a gala reception, said that for the past few years, AirAsia has been investing in its network and “this year the investment begins to pay off.”

AirAsia recently signed a purchase agreement for 60 A320s, which will begin arriving in two days time. The aircraft are expected to lower AirAsia’s costs by 12% – chiefly through better fuel burn performance – while also bringing a better product to its customers.

Speaking of the good profit performance recorded by the carrier and its international joint ventures in Thailand and Indonesia, the latter of which is cash-flow positive in its first year of operations, Mr Fernandes noted, “It’s a great time to be in the airline business, if you’ve got the right model.”

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