AirAsia boss recommends KL for Qantas hub - TTG Asia - Leader in Hotel, Airlines, Tourism and Travel Trade News
 
Monday . January 26 . 2015
         
Follow TTG Asia on Twitter
TTG ASIA this week
TTG Asia Luxury
 
Share |
AirAsia boss recommends KL for Qantas hub
Sydney, December 15, 2011
 

QANTAS should base its planned full service Asian airline in Malaysia rather than in Singapore if it is serious about gaining a foothold in the region, said AirAsia group CEO, Tony Fernandes.

 

Fernandes, who is in discussions with the Australian flag carrier and Malaysia Airlines about a three-way alliance (TTG Asia e-Daily, December 2), said basing the new airline in Kuala Lumpur would be the smarter option.

 

"Singapore is the better business hub for sure, but the majority of Singapore traffic is transit traffic – just like Dubai," he was quoted by The Australian Financial Review as saying.

 

"Whether you connect in Kuala Lumpur or Singapore, the key is connectivity," he added.

 

According to Fernandes, Qantas would enjoy lower overheads if it picked Kuala Lumpur as its Asian hub. "The main thing is cost savings, and avoiding wasteful competition," he said.

 

Meanwhile, Fernandes refused to divulge how alliance discussions with Qantas were progressing, although he did reveal that no full mergers were being considered.

 

"Mergers are generally driven by a shrinking market, high cost base, or a lack of ideas about how to grow. In Asia, there is less need for that," he explained.

 

Print Top Stories
 
COMMENTS
 
Editor's pick >
   
Seeing the doctor

by Mimi Hudoyo, Paige Lee Pei Qi, S Puvaneswary and Greg Lowe

Rouble trouble

by Greg Lowe

5 tourism marketing resolutions for 2015

by Bronwyn White

NTOs reflect on the past year and look ahead

by Paige Lee Pei Qi, S Puvaneswary, Greg Lowe, Mimi Hudoyo, Xinyi Liang-Pholsena, Prudence Lui, Hannah Koh, Rohit Kaul and Feizal Samath

Charting the ups and downs of aviation

by Sim Kok Chwee

 

 

>