Soon Everyone Can Fly Further Tony Fernandes Eyes Smaller Planes For Airasia Budget Hub Dream

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AirAsia CEO Tony Fernandes says the airline is exploring new narrow-body jets from China’s COMAC and Brazil’s Embraer as part of his plan to build a low-cost hub in Kuala Lumpur and Bangkok. — Reuters picKUALA LUMPUR, Oct 3 — Tan Sri Tony Fernandes wants to turn Kuala Lumpur and Bangkok into the “Dubai” of low-cost travel, and he is looking at new planes from China and Brazil to make it happen.
The AirAsia founder and CEO said the budget airline’s strategy is to build a regional hub where passengers can connect to more destinations via short-haul, narrow-body planes.
“We want to build a Dubai in Kuala Lumpur and Bangkok,” he said in an interview with Singapore-based news website CNA published today.
“No one’s ever built a low-cost airline hub. My goal is to allow people to fly much further through a short-haul, narrow-body plane strategy. You can fly from one destination, connect, and go to another destination,” he was quoted as saying.
To support this plan, Fernandes confirmed AirAsia – which currently has a fleet of 255 Airbus planes – is in advanced talks with the Commercial Aircraft Corporation of China (COMAC) to buy its narrow-body jets.
“We’re in active discussions. I can confirm that.
“We are very serious about COMAC. We’re excited. It’s a big step forward to make this decision,” he told CNA.
He declined to disclose order size, delivery timeline or pricing, saying instead that the airline is evaluating its order book.
Fernandes said he has flown on COMAC aircraft with Chinese state-owned airlines and has also visited its factory.
“(COMAC planes) have been flying very successfully in China. I visited the factory – they’re very dedicated (and) passionate.
“It’s a good product. We’re very serious about it. I think anyone who doesn’t look at it will pay the price in the long run,” he was quoted as saying.
China is one of AirAsia’s largest markets, with flights to 23 destinations, but Fernandes said that was not the reason behind the interest in COMAC.
“(But) we don’t buy Chinese planes just because we fly to China. We buy Chinese planes because they’re good, they’re the right price,” he said.
“Chinese technology is proven. They make great cars, great mobile phones, great chips.”
Another attraction, he said, is that COMAC is scaling up production, which could mean faster deliveries at a time when Airbus has been struggling with delays.
Alongside COMAC, Fernandes said AirAsia is also weighing smaller planes from Brazil’s Embraer, specifically the E2 regional jets.
The airline is considering them for short-haul and thinner regional routes as part of its new hub strategy.
Fernandes said AirAsia is still restructuring its aircraft order book after the Covid-19 pandemic, and he expects the process to be completed in the next two months.
He said a decision on new jets could be announced soon after. - malaymail

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