While AirAsia, one of the world’s largest low-cost airline, is gearing
toward an expansion in the region, the company’s chief executive said that
serving Cambodia was expensive due to high airport fees.
Airport charges are high and
restrictive, as are over-flight fees, compared to other countries in the region
– a factor that will influence the company’s decision whether to increase
flights and destinations in the Kingdom.
“I’ve always had a bit of a
problem with airports in Cambodia,” Tony Fernandes, AirAsia’s group CEO, said
Tuesday at the launch of its ASEAN headquarters in Jakarta.
“But I know the Cambodian
government is looking at it right now, because when they did those airports,
there were no low-cost carriers.”
Aviation authorities in Cambodia
could not be reached yesterday.
After 10 years of focusing on the
Malaysian hub in which it started, the company will turn expansion efforts
toward reaching a wider set of ASEAN destinations, specifically those in the
region’s largest market, Indonesia.
The new HQ launch came on the eve
of so-called “ASEAN Day”, marking the 45th anniversary of the economic bloc’s
establishment.
Fernandes called Indonesia the
“heart of ASEAN” and said attempts to grow further beyond the borders of its 10
member states, home to 690 million people, would come only after continued
development within.
“When I started, everyone was
talking about India and China. But we were looking at ASEAN,” he said, framing
the carrier as an “ASEAN company”.
There is still room for growth in
Cambodia, Fernandes noted. AirAsia will meet with Cambodian government officials
at the end of August or the beginning of September to further address problems
that might stymie growth in air travel.
He also expressed interest in
Cambodia’s Sihanoukville airport, which sees little activity outside of charter
flights.
“You have a fantastic airport in
Sihanoukville where very few airlines are flying to right now. That would be an
airport we’re interested in developing,” Fernandes said.
AirAsia is in talks with
Indonesian carrier Batavia, but the government may review the proposed
acquisition. The airline encountered regulatory problems in Vietnam last year
during an attempted joint venture with VietJet. The deal was subsequently
called off.
The Bursa, Malaysia-listed
company has joint ventures in Japan, the Philippines, Indonesia and Thailand.
AirAsia Bhd closed up about 0.3
per cent yesterday at 3.7 ringgit (US$1.2).
While AirAsia flights from
Cambodia are limited to Bangkok and Kuala Lumpur, efforts to enhance regional
tourism have benefited the Kingdom indirectly, said Meng Hient, a Cambodian
Association of Travel Agents member and owner of Exotissimo Travel Group.
“They don’t seem to be very
active in Cambodia, but on the outside they are doing a lot to promote their
destinations in the region,” he said. This is bringing tourists to ASEAN, many
of whom will pass through Cambodia at some point during their journey.
The lower ticketing prices have
indeed allowed for lower-income groups to travel between ASEAN states, Meng
Hient said. The point was emphasised by Fernandes on Tuesday.
At a time when Asia’s economic
spotlight seems fixed on China, AirAsia’s ASEAN business has brought increased
connectivity to the region, Mohan Gunti, a member of Cambodia’s Tourism Working
Group, said recently.
“It’s bringing more focus to
ASEAN’s potential … It’s truly an ASEAN airliner that’s connecting the region,”
he said.
Don Weinland
Business & Investment Opportunities
YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Strategy, Investment and Management, focusing Healthcare and Life Science with expertise in ASEAN. We also propose Higher Education, as a bridge between educational structures and industries, by supporting international programmes. Many thanks for visiting www.yourvietnamexpert.com and/or contacting us at contact@yourvietnamexpert.com
No comments:
Post a Comment