ASEAN gets a message from KL and Singapore
KUALA LUMPUR – Fast expanding AirAsia has agreed to increase to 175 the number of new A320 Airbus aircraft on order.
“We have placed a new order of an additional 25 A320s with Airbus,” said Tony Fernandes, group chief executive. AirAsia.
The announcement coincides with the news that the Singapore-Kuala Lumpur route will be fully liberalised from December 1, 2008 – one month ahead of the official ASEAN capital cities open skies deadline.
“That Singapore and Malaysia could agree to open up one of Asia’s most closely protected routes sends a clear signal that it’s time for the region’s governments to get out of the way of the expansion of aviation,” said Derek Sadubin, chief operating officer of the Centre for Asia Pacific Aviation.
The Singapore-Kuala Lumpur route will see one LCC entrant from each side operating two daily services from February 1, 2008.
“It is a small allocation of capacity, but a massive breakthrough for the LCC sector, particularly AirAsia which has lobbied for many years for access. Singapore and Malaysia will meet again in January next year to consider easing restrictions on routes to other cities in Malaysia,” said Sadubin.
AirAsia, Southeast Asia’s largest budget carrier by fleet size, said its fiscal first quarter net profit had risen by more than 150 percent on higher passenger volume.
The carrier said net profit in the quarter ended September 30 rose to 180 million ringgit (US$53m), up 157.1 percent from 70 million ringgit a year earlier.
Fernandes told AFP that AirAsia was confident it could weather the current high fuel prices, adding the “high fuel price is sustainable”.
TravelMole understands that among new AirAsia routes to be announced will be a direct Perth-Kuching service.
Ian Jarrett
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