AirAsia expansion under scrutiny in Jakarta

Friday, 08 Aug, 2012 0

AirAsia’s new Asean office in Jakarta will be a nerve centre for the airline to chart its future expansion, says the airline’s chief, Tony Fernandes.

Fernandes said the shifting of AirAsia’s emphasis to a regional strategy was "we believe, not just good business, but also a move that will keep us ahead of the inevitable competition that is heading our way".

AirAsia has joint ventures in Thailand, Indonesia, and the Philippines. It also has a 49% stake in AirAsia Japan.

"Japan was not in my plan but it appeared at my doorstep, and we do not throw an opportunity like that… it is a dream," he told the Malaysian Star.

However, the proposed purchase of a stake in Indonesia’s Batavia Air being scrutinised by Indonesian authorities over the possibility of contravening the country’s anti-competition laws.

"The market in Indonesia is predominately domestic, and we (AirAsia Indonesia) are tiny in the domestic market. (Batavia Air) gives us more size and allows us to grow the market," Fernandes said.



 

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Ian Jarrett



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