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.

  • Lupita Nyong'o's $150,000 Oscars dress stolen from hotel
    Lupita Nyong'o's $150,000 Oscars dress stolen from hotel

    The $150,000 pearl-studded, custom-made Calvin Klein dress worn by Oscar-winning actress Lupita Nyong'o at this year's Academy Awards has been stolen, police said on Thursday. The gown, embellished with 6,000 natural white pearls, was stolen from Nyong'o's room at the London Hotel in West Hollywood, during the day on Wednesday, a spokesman for the Los Angeles County Sheriff's Department in West Hollywood said. "Ms Nyong'o was not in the room at the time of the theft," Deputy John Mitchell …

  • US-led strikes on IS after group seizes 220 Christians
    US-led strikes on IS after group seizes 220 Christians

    The US-led coalition has carried out air strikes against the Islamic State group in northeastern Syria, where the jihadists have launched a new offensive and kidnapped 220 Assyrian Christians. The raids on Thursday struck areas around the town of Tal Tamr in Hasakeh province, the Syrian Observatory for Human Rights said, without giving information on possible casualties. The town remains under the control of Kurdish forces, but at least 10 surrounding villages have been seized by IS, along …

  • Militants abduct more Christians, smash ancient artifacts
    Militants abduct more Christians, smash ancient artifacts

    BEIRUT (AP) — Islamic State militants seized more Christians from their homes in northeastern Syria in the past three days, bringing the total number abducted by the extremist group to over 220, activists said Thursday. …

  • 3 Pinays on Forbes power women list
    3 Pinays on Forbes power women list

    Three Filipina executives, who are all daughters of known business tycoons in the country, made it to Forbes’ list of the 50 most powerful businesswomen in Asia. Teresita Sy-Coson, vice chairman of SM Investments and chairman of BDO Universal Bank, was included in the list for the fourth year in a row since its inception. “Under her (Sy-Coson) lead SMIC became the largest listed company on the Philippine Stock Exchange by market cap. Also in the 2015 list is 70-year-old Helen Yuchengco-Dee, …

  • 13 of 15 SAF survivors to leave PNP hospital
    13 of 15 SAF survivors to leave PNP hospital

    Thirteen of the 15 Special Action Force (SAF) policemen who survived the bloody firefight with Muslim rebels in Mamasapano last month are ready to go home after a month of medical treatment, a police official said yesterday. Philippine National Police (PNP) spokesman Chief Superintendent Generoso Cerbo Jr. said the two remaining survivors will have to stay in hospital for further treatment, one of whom has shrapnel embedded near his spine. One of the two SAF commando survivors is still …

  • US sends spy plane to patrol disputed sea
    US sends spy plane to patrol disputed sea

    The United States has deployed its newest and most advanced surveillance aircraft for patrols over the West Philippine Sea and South China Sea. The P-8A Poseidon aircraft completed more than 180 flight hours from Feb. 1 to 21 from Clark Air Base, according to the US Navy’s 7th Fleet. …

  • Review: SKK Mobile V2, a P3,999 watered-down LG G2
    Review: SKK Mobile V2, a P3,999 watered-down LG G2

    How well does this P3,999 offering from an underdog in the local mobile industry stack up against the competition? Let's find out. …

  • No coercion, force in sea row – France
    No coercion, force in sea row – France

    France renewed its call for a peaceful resolution of the West Philippine Sea dispute during a meeting between its leader President Francois Hollande and President Aquino at Malacañang. “We reiterated the importance of maintaining peace and stability in Southeast Asia and promoting maritime security, freedom of navigation and the peaceful settlement of disputes in accordance with international law, including UNCLOS (United Nations Convention on the Law of the Sea),” Aquino said in a statement …

POLL

Should Aquino be held accountable over the Mamasapano operations?

Loading...
Poll Choice Options