AirAsia is the largest low-cost airline in Southeast Asia, currently operating in Malaysia, the Philippines, Indonesia, Thailand, and Cambodia.
Air Asia is the 4th largest airline in Asia. Photo: Air Asia.
According to Bloomberg, the ambitious expansion plans of the low-cost airline AirAsia are targeting Singapore and Vietnam. This signals a bold move to expand the airline’s footprint in Southeast Asia.
Tony Fernandes, the CEO of Capital A Bhd, the parent company of AirAsia, stated that the airline aims to establish its presence in these markets despite knowing that it is not the dominant player in these areas.
BNN Breaking reports that this is part of AirAsia’s strategy not only to enhance its presence in the market but also to capitalize on the increasing demand for affordable travel in the region.
AirAsia currently operates in Malaysia, the Philippines, Indonesia, Thailand, and Cambodia.
In Vietnam, the low-cost airline does not have a legal entity but operates international flights on foreign-registered aircraft. Weekly, there are approximately 117 flights connecting various cities in Vietnam with Thailand and Malaysia.
Previously, the airline had attempted four times to establish a joint venture for a low-cost airline in the Vietnamese market, all of which failed.
Most recently, in 2019, AirAsia Investment, Gumin, and Hai Au terminated obligations related to the agreement to establish a joint venture airline in Vietnam.
As part of AirAsia’s expansion plan, it includes plans to enhance regional connectivity by increasing flights to visa-free tourist destinations such as Japan and China.
This aligns with Thailand’s ambition to become a regional aviation hub, leveraging the network of Thai AirAsia. Prime Minister Srettha Thavisin has also announced his ambitious goal to make Thailand a hub for aviation and one of the world’s top five cargo distribution centers.
AirAsia was established in 2001 when it acquired a bankrupt airline with only a few aircraft. Since then, AirAsia has rapidly grown to become the largest low-cost airline in Southeast Asia with the best service quality globally.
It is the largest airline in Malaysia and the fourth largest in Asia with a fleet size of 200 aircraft. Associated airlines include AirAsia Cambodia, Thai AirAsia, Indonesia AirAsia, and Philippines AirAsia.
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Source: Vietnam Insider