AirAsia Co-Founder Tony about to give the world a new airline
Speaking in a video interview with M news agencyIn a statement late Wednesday, Fernandes said the group had reallocated aircraft for the upcoming venture but did not disclose further operational details. The move comes as the low-cost Southeast Asian airline group plans to expand amid unstable market conditions.
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The move follows AirAsia’s multibillion-dollar aircraft order, which Canadian Prime Minister Mark Carney described as the largest ever purchase of Canadian-made commercial aircraft. The deal covers 150 Airbus SE A220 jets and is part of a broader strategy to operate smaller aircraft aimed at improving connectivity across Asia.
“Why waste a crisis? There are opportunities in a crisis,” Fernandes, 62, told Bloomberg. “We can’t control what’s happening in the Middle East, but we have to accept the view that this won’t last two years.”
AirAsia’s approach, particularly its decision not to hedge fuel costs, continues to stand out in the industry. This stance contributed to the company’s shares falling nearly 35% since the start of the Iran war, making it the worst-performing company on the Bloomberg World Airlines index at the time.
Fernandes remained firm on strategy. AirAsia is preparing a bond sale of up to $600 million to finance its expansion plans and is also in talks with Malaysian banks for what Fernandes described as a “fairly large” refinancing package aimed at reducing borrowing costs. The company is also interested in Canadian pension funds to attract investment.
Fernandes acknowledged financial pressure in the near term, saying the airline was unlikely to hit its initial profit target, which will be announced soon. However, this year’s revenue is expected to remain largely in line with previous estimates.
AirAsia is also exploring expansion in Vietnam, Bloomberg reported, citing people familiar with the matter. The group currently operates in Malaysia, Thailand and Indonesia with a fleet of approximately 250 mostly single-aisle Airbus aircraft. Its latest order will increase the backlog to approximately 550 aircraft.
Separately, AirAsia announced plans to start flights from Bahrain, with long-term plans to establish a local unit in the Gulf island nation.
