AirAsia drops plan for new Singapore airline unit

AirAsia, Asia's largest low-cost carrier, has scrapped plans for a Singapore joint venture due to high operating costs and lack of domestic market potential in the island republic.

"We are concentrating on markets which have big domestic markets and big populations and markets that are more liberal and market-orientated," Tony Fernandes, group chief executive, was quoted as saying in Monday's Wall Street Journal.

Malaysia-based AirAsia flies throughout Asia and has set up subsidiary budget carriers in Indonesia, the Philippines, Thailand and Japan.

The carrier, one of the biggest customers for European aircraft maker Airbus, has a fleet of 112 A320s and is expecting 266 more aircraft to be delivered up to 2026.

Fernandes said it is "very clear that we are in the right markets and capital should go into those countries to maximise return".

An AirAsia official confirmed his comments to AFP.

The airline was initially keen to establish a unit in Singapore, which would have allowed it to compete with rivals including Jetstar and Tiger Airways and fly to more destinations from the city state, the Wall Street Journal said.

More than 50 million passengers travelled through Singapore's Changi Airport in 2012, according to the airport operator.

AirAsia has grown rapidly since Fernandes, a former record industry executive, bought the failing airline in 2001.

Loading...

Editor’s note:Yahoo Philippines encourages responsible comments that add dimension to the discussion. No bashing or hate speech, please. You can express your opinion without slamming others or making derogatory remarks.

  • Mayweather picks off Pacquiao to join greats
    Mayweather picks off Pacquiao to join greats

    Floyd Mayweather cemented his place in the pantheon of boxing greats with an emphatic win over Manny Pacquiao which triggered an outcry in the Philippines and divided opinion amongst the legends of the sport. Feinting and dancing his way to a unanimous decision, Mayweather comfortably picked off Pacquiao over 12 rounds to extend his 19-year unbeaten record to 48-0. Yet the jeers could not obscure a clear win for the skilful Mayweather, with judges awarding him the decision by margins of …

  • Sadness, disappointment in Philippines after Pacquiao defeat
    Sadness, disappointment in Philippines after Pacquiao defeat

    MANILA, Philippines (AP) — Sadness and disappointment gripped Filipinos after Manny Pacquiao's defeat in his much-anticipated fight against American Floyd Mayweather Jr. but they still considered the boxing icon a national hero. …

  • Philippine rebels kill most wanted Islamist militant in south

    The Philippines' most wanted Islamist militant, who escaped after a raid in January that killed 44 police commandos, was killed on Sunday in firefight with Muslim rebels, officials said. Protracted police operations to arrest three Islamist high-value targets had become the biggest political crisis in five years for President Benigno Aquino and put at risk his government's peace efforts with Moro Islamic Liberation Front. A proposed law creating a new autonomous government for minority …

  • Disappointed Filipinos cry foul as Pacquiao loses
    Disappointed Filipinos cry foul as Pacquiao loses

    Boxing fans in the Philippines cried foul and groaned in bitter disappointment on Sunday as national hero Manny Pacquiao lost to American rival Floyd Mayweather in the "fight of the century". Filipinos filled gymnasiums, cinemas and bars as the Southeast Asian nation of 100 million people stopped for Pacquiao's battle with Mayweather in Las Vegas, which he lost in a unanimous points decision. A devastated Pacquiao said immediately afterwards that he thought he had won, and many at home agreed …

  • Steamy fight...and weather as well
    Steamy fight...and weather as well

    Filipinos who will flock to steamy public gymnasiums today to watch free live screenings of Manny Pacquiao’s fight with Floyd Mayweather Jr. are advised to drink lots of water as the heat index is expected to reach as high as 40 degrees Celsius in some parts of the country. The Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) said yesterday the forecast for heat index in Metro Manila may reach 39.8 degrees Celsius. It could go as high as 40.3 degrees …

  • POEA asks advertisers to help fight human trafficking
    POEA asks advertisers to help fight human trafficking

    The Philippine Overseas Employment Administration (POEA) has invited advertisers and public relations (PR) agencies to help combat illegal recruitment and human trafficking. POEA administrator Hans Leo Cacdac conveyed his invitation through his Twitter account @HansLeoCacdac posted last April 29. “Any ad agencies, PR firms or their industry associations interested in joining the campaign against illegal recruitment and human trafficking?” he said. Cacdac made the invitation to prevent …

  • Even soldiers will take a break today
    Even soldiers will take a break today

    It’s all systems go with the Armed Forces of the Philippines (AFP) live stream viewing of today’s fight between Filipino boxing icon Sarrangani Rep. Manny Pacquiao and  Floyd Mayweather Jr. in Las Vegas, Nevada. “Soldiers will take a break today,” said Lt. Col. Harold Cabunoc, AFP Public Affairs Office (PAO) chief, referring to military’s free-viewing event of the most awaited Pacquiao-Mayweather bout. The same preparations have already been done by the Philippine Army, Philippine Air Force, …

  • ‘No sign of Mount Bulusan’s imminent eruption’
    ‘No sign of Mount Bulusan’s imminent eruption’

    The government is on alert to ensure public safety as Mount Bulusan in Sorsogon province exploded on Friday, deputy presidential spokesperson Abigail Valte said yesterday. Despite the alert, Valte said there is as yet no need to evacuate residents, with the Philippine Institute of Volcanology and Seismology (Phivolcs) reporting that “there is no threat of imminent eruption” and that the volcano remains at Alert Level 0. The National Disaster Risk Reduction and Management Council (NDRRMC), …

POLL

Should Aquino be held accountable over the Mamasapano operations?

Loading...
Poll Choice Options