AirAsia expands beyond Asean; Japanese operations to commence in late 2017

Aireen added that this year, the group fleet size is expected to grow by 29 aircraft, making it 203 A320s by the end of the year.

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While rapidly expanding in the Asean region, AirAsia Bhd is expected to start operations of the company's newly set-up Japanese subsidiary by the second half of this year reported The Star Online today.

Quoting group chief executive officer Tan Sri Tony Fernandes, he said the airlines is continuing expansion in the region, which is evident from the upcoming joint venture in Vietnam. The Cambodian government also expressed interest in making it possible for AirAsia to spread its wings in the country.

AirAsia Bhd chief executive officer and executive director Aireen Omar said in addition to that the airline also signed a memorandum of understanding for a joint venture with China's Everbright and Henan Government group to establish a low-cost carrier (LCC) in China.

"To facilitate AirAsia's growth, we have established a fleet delivery plan that runs up to 2028," she said.

Aireen added that this year, the group fleet size is expected to grow by 29 aircraft, making it 203 A320s by the end of the year.

She said the airline are also focusing on various other segments for increasing ancillary income such as revenue from seat selection, in-flight WiFi Service, food and beverage sales, baggage fees, fly-thru transfers as well as duty-free products. Aireen said ancillary income poses a high margin business and fuels growth for the company.

"It is making more meaningful contribution to our earnings and provide an additional revenue source to buffer against uncertainty," she added.

Last year, AirAsia recorded growth by more than 10% in the ancillary income segment.

She said that the airline was centralising many processes to optimise cost to keep the airline running at low cost. Aireen said centralising functions across the group would allow the group to achieve economies of scale and reduce their costs further.

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