In its aggressive pursuit of overseas expansion, Malaysian no-frills carrier AirAsia has set its sights on China for a new low-cost service, officials said.
AirAsia chairman Pahamin Razab said the carrier's plan was to spread its wings across Asia, and that included regional giants China and India.
"Our mission is that we want to be a major low-cost carrier in the region. We want to spread our wings beyond the shores of Malaysia and the region -- and in the case of China, India and Southeast Asian countries -- all these are for the taking," he said.
He stressed the pioneer Asian budget carrier was eager to seize any opportunities that arose in China, although he did not set a time-frame.
"We may even start our own airline in China," he said.
"We do not want to go beyond ASEAN for the next couple of years, but if opportunities strike us, we might just go to China first, then India.
"China ... is more regulated. They do not have low-cost carriers, unlike India," he said.
Pahamin said AirAsia could operate either out of Thailand or Malaysia.
The carrier launched daily flights to Macau from Bangkok last week. Macau is AirAsia's third international destination out of Thailand, after Singapore and Malaysia. Direct flights from Kuala Lumpur to Macau will begin by the end of this month, the first direct flights to link the two cities.
Pahamin said the public response to the new destinations had been good so far.
An industry source close to AirAsia suggested that after flying to Macau, it would make good business sense to offer a service to the China.
"AirAsia could be flexible on how they start their airline in China. They can go alone or form a joint-venture or fly out of Bangkok or Kuala Lumpur," the source said.
Last month, AirAsia chief executive Tony Fernandes said the carrier was confident its low fares would boost tourism and bring a brand new travel experience to the people of Macau and the neighboring region.
Kamarudin Meranum, AirAsia's executive director, also said the carrier was "looking at China," but declined to reveal whether it was already in talks with Chinese authorities over beginning a service.
"It is a huge country with lots of potential. It has a big population. If we are allowed, we will begin our operation," he said.
Competition in the region for low-cost flights is set to heat up after Qantas said it would join Singapore's government in a budget airline to begin operations by the year's end.
ValuAir, a low-fare carrier set up by a former Singapore Airlines executive, is due to take flight next month.
AirAsia, meanwhile, plans to invest 228 million ringgit (US$60 million) as it builds up its fleet to 30 aircraft by the end of the year from the current 17. The two-year-old Malaysian company has become Southeast Asia's version of European budget carrier Ryanair. It has carried more than 4 million passengers since it was launched in December 2001.
Pahamin added that AirAsia's planned initial public offering (IPO) was on track for September.
RETHINK? The defense ministry and Navy Command Headquarters could take over the indigenous submarine project and change its production timeline, a source said Admiral Huang Shu-kuang’s (黃曙光) resignation as head of the Indigenous Submarine Program and as a member of the National Security Council could affect the production of submarines, a source said yesterday. Huang in a statement last night said he had decided to resign due to national security concerns while expressing the hope that it would put a stop to political wrangling that only undermines the advancement of the nation’s defense capabilities. Taiwan People’s Party Legislator Vivian Huang (黃珊珊) yesterday said that the admiral, her older brother, felt it was time for him to step down and that he had completed what he
Taiwan has experienced its most significant improvement in the QS World University Rankings by Subject, data provided on Sunday by international higher education analyst Quacquarelli Symonds (QS) showed. Compared with last year’s edition of the rankings, which measure academic excellence and influence, Taiwanese universities made great improvements in the H Index metric, which evaluates research productivity and its impact, with a notable 30 percent increase overall, QS said. Taiwanese universities also made notable progress in the Citations per Paper metric, which measures the impact of research, achieving a 13 percent increase. Taiwanese universities gained 10 percent in Academic Reputation, but declined 18 percent
CHINA REACTS: The patrol and reconnaissance plane ‘transited the Taiwan Strait in international airspace,’ the 7th Fleet said, while Taipei said it saw nothing unusual The US 7th Fleet yesterday said that a US Navy P-8A Poseidon flew through the Taiwan Strait, a day after US and Chinese defense heads held their first talks since November 2022 in an effort to reduce regional tensions. The patrol and reconnaissance plane “transited the Taiwan Strait in international airspace,” the 7th Fleet said in a news release. “By operating within the Taiwan Strait in accordance with international law, the United States upholds the navigational rights and freedoms of all nations.” In a separate statement, the Ministry of National Defense said that it monitored nearby waters and airspace as the aircraft
UNDER DISCUSSION: The combatant command would integrate fast attack boat and anti-ship missile groups to defend waters closest to the coastline, a source said The military could establish a new combatant command as early as 2026, which would be tasked with defending Taiwan’s territorial waters 24 nautical miles (44.4km) from the nation’s coastline, a source familiar with the matter said yesterday. The new command, which would fall under the Naval Command Headquarters, would be led by a vice admiral and integrate existing fast attack boat and anti-ship missile groups, along with the Naval Maritime Surveillance and Reconnaissance Command, said the source, who asked to remain anonymous. It could be launched by 2026, but details are being discussed and no final timetable has been announced, the source