AirAsia planning flights to India

Budget airline, AirAsia Bhd plans to build its low cost maintenance, repair and overhaul (MRO) facilities in Malaysia within the next five years, group chief executive officer Datuk Tony Fernandes said. "This is in our five-year plan. I think with our 100 aircraft, we will be able to make a headstart on what I believe to be the most low cost MRO with higher quality in the world," he said at an event to celebrate the arrival of the airline's 50th aircraft, a brand new Airbus A320 into its fleet. The MRO, said Tony, has been identified as the new growth area for Malaysia and the country having progressed significantly in the aviation industry has tremendous potential to grow in MRO services. Commenting on the new aircraft, AirAsia's 15th Airbus A320, Tony said its leather seats and wider seat pitch, among others, would give passengers more convenience and comfort.

"With all the new Airbus A320 rolling in for the next few years, we look forward to the Visit Malaysia Year 2007 as we stimulate greater interest to travel with our low fares," he said. AirAsia, to date has carried over 26 million passengers and currently serves over 70 routes across 10 countries, with 300 flights per day. The company targets to carry 18 million passengers next year. With its recent confirmed orders of 100 A320s, Tony said that the low cost airline company would become the single largest Airbus A320 operator in the Asia-Pacific region by year 2012. The company is currently in the progress of phasing out its 35 Boeing 737-300 aircraft and replacing them for an all new Airbus A320 fleet. To date, 75 percent of AirAsia's fleet in Kuala Lumpur is Airbus A320 and by July 2007, our Kuala Lumpur hub will be fully operated with A320s, said Tony.

As for its Thailand operations, he said, it would receive its first Airbus A320 in October next year, while Indonesia by January 2008. Meanwhile, Tony, who also unveiled AirAsia's next five-year plan today, want to undertake some aggressive strategies to strengthen and enhance its route network by connecting all the existing cities in the region within the time frame. He said, the company aimed to expand further into Indo China, Indonesia, Southern China (Kun Ming, Xiamen, Shenzen) and India. "The airline will focus on developing its hubs in Bangkok and Jakarta through sister companies, Thai AirAsia and Indonesia AirAsia," he said. Tony also said that AirAsia was confident of securing the rights to fly the Singapore-Kuala Lumpur route by early next year. "I think we could have something by the first quarter... and we are confident of taking a lot of hard traffic from Singapore over to Kuala Lumpur. It is crucial in making KLIA (KL International Airport) an important hub," he said.

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