04 August 2009

Is Fernandes bluffing over Abu Dhabi hub?


KUALA LUMPUR - AirAsia's Group CEO Tony Fernandes has confirmed to Malaysian media that Abu Dhabi will be the new Middle East hub for its long-haul carrier AirAsia X. ââ¬~¨

Last week AirAsia X chief executive Azran Osman-Rani said that new aircraft being delivered to AirAsia would result in congestion at the carrierââ¬â¢s terminal at Kuala Lumpur and there was a need to utilise the aircraft elsewhere.

Abu Dhabi airport executives said they were still awaiting an official letter of intent from the airline.

The decision to look for a hub in the Middle East appears to be linked to a three-year dispute between Air Asia and Malaysian Airport Holdings Bhd (MAHB) over unpaid dues.

A month ago, the Malaysian government turned down a request from AirAsia X for the rights to fly to Seoul and Sydney.

The airline was counting on the new routes to use extra planes that will be delivered this year.

The latest move by Fernandes to suggest a hub for AirAsia X in Abu Dhabi ââ¬' the home base of Etihad ââ¬' could be viewed as a move by the airline to put pressure back on the government to approve Sydney and Seoul flights.


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