As Malindo Airways readies to enter the competitive Southeast Asia
budget-carrier market, AirAsia wants to boost business by accelerating fleet
expansion and setting up innovation labs.
AirAsia Group CEO Tony Fernandes
said that the Malaysia-based group plans for Indonesia AirAsia (IAA) to take
delivery of 10 to 12 new Airbus A320s a year starting in 2013, up from an
original five new aircraft a year, intending for its local subsidiary to
operate up to 60 aircraft by the end of 2015.
"We feel good about the
Indonesian market. By having a larger fleet, we will be able to strengthen both
our international and domestic routes here," Fernandes said yesterday.
"Obviously, we have Batavia
Air to come and the progress of the acquisition has been going well. Our
position is strong in the market."
Fernandes said that PT Fersindo
Nusaperkasa, which owns a 51 per cent stake in IAA, and AirAsia Berhad would
acquire a 76.95 per cent stake in PT Metro Batavia, the owner of Batavia Air,
within two months.
The firms would complete their
acquisition of the remaining 23.05 per cent of Batavia by the first quarter of
2013, before IAA carries out its planned initial public offering (IPO) in the
second quarter.
"IAA is now ready for the
IPO, but we have to complete the acquisition first and decide what we will do
with Batavia. Buying an airline is not like going to supermarket for orange
juice," Fernandes said.
The group also plans to set up an
innovation lab in its regional office in Jakarta within three months to develop
mobile applications and other software.
Fernandes said the group would
collaborate with two local companies to open the lab, and was currently
recruiting young developers.
"The Internet revolution is
big in Indonesia, and everyone now has a smart phone. It's a big plus for the
company to develop applications," Fernandes said.
Similar labs would also be opened
in other major cities in Southeast Asia, according to Fernandes.
Fernandes said that AirAsia, was
in a good position to compete with Indonesia's largest low-cost carrier, Lion
Air, and its Malindo Airways joint venture.
"Competition is good and the
[local] market is big enough for many players. I fully support it, because the
main winners will be the customers," he said.
Fernandes said that the presence
of new players such as Malindo Airways, Tiger Airways, and Jetstar had made the
region a better aviation market.
Lion Air will own 49 per cent of
Malindo, while Malaysia's National Aerospace and Defence Industries will hold
the remaining 51 per cent.
Lion Air president Rusdi Kirana
said that Malindo would start service between Indonesia and Malaysia in May
using 12 new Boeing 737 aircraft and would later expand service.
Kirana also said that the
airline's fleet would be bolstered by 12 planes a year to bring its total
aircraft numbers to more than 100 within 10 years.
The airline previously announced
plans to procure Boeing 787 Dreamliner jets by 2015 serving China, Japan and
Australia.
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