AirAsia’s Fernandes guns for Indonesia
Tony Fernandes, CEO of AirAsia Group, lives a double life these days. Half the time he spends in his “home,” the capital of Malaysia, Kuala Lumpur; the other in Jakarta, the new regional headquarters of his rapidly growing low-cost airline.
Fernandes made the decision in 2011 to set up a more permanent camp in Indonesia after eying its growth potential for years, consisting of such salubrious factors as being home to one the world’s fastest growing consumer markets, as well as the largest string of islands, a landscape compatible with AirAsia’s low-cost business model.
“Airasia Indonesia [had a] stunning performance in June. I now really believe we can be number 1 in Indonesia,” Tony Fernandes tweeted on July 27.
The bold entrepreneur has reason to be ecstatic. Fernandes is expected AirAsia Indonesia to rake in $200 million in July with an IPO being prepared for the forth quarter of 2014.
The announcement, made by Tony Fernandes on the sidelines of the World Economic Forum, will follow $308 million IPO AirAsia X raised in June.
Operational expansion has been commensurate. The airline will be extending services to a total of eight for Indonesia, with weekly services to Singapore-Medan and daily Singapore-Surabaya flights starting July 1. A Singapore-Makassar service is also among those being planned.
Yet there is a new kid on the block that Fernandes has undoubtedly noticed. Lion Air, Indonesia’s largest domestic carrier Lion Air, and Malaysia’s National Aerospace Defence Industries joint venture Malindo Air has been pressuring AirAsia with its own brand of skyway services, despite having only launched on March 22.
Fernandes is right to be stunned, just better not be too exuberant.
Tony Fernandes, CEO of AirAsia Group, lives a double life these days. Half the time he spends in his “home,” the capital of Malaysia, Kuala Lumpur; the other in Jakarta, the new regional headquarters of his rapidly growing low-cost airline. Fernandes made the decision in 2011 to set up a more permanent camp in Indonesia after eying its growth potential for years, consisting of such salubrious factors as being home to one the world’s fastest growing consumer markets, as well as the largest string of islands, a landscape compatible with AirAsia’s low-cost business model. “Airasia Indonesia [had a] stunning performance...
Tony Fernandes, CEO of AirAsia Group, lives a double life these days. Half the time he spends in his “home,” the capital of Malaysia, Kuala Lumpur; the other in Jakarta, the new regional headquarters of his rapidly growing low-cost airline.
Fernandes made the decision in 2011 to set up a more permanent camp in Indonesia after eying its growth potential for years, consisting of such salubrious factors as being home to one the world’s fastest growing consumer markets, as well as the largest string of islands, a landscape compatible with AirAsia’s low-cost business model.
“Airasia Indonesia [had a] stunning performance in June. I now really believe we can be number 1 in Indonesia,” Tony Fernandes tweeted on July 27.
The bold entrepreneur has reason to be ecstatic. Fernandes is expected AirAsia Indonesia to rake in $200 million in July with an IPO being prepared for the forth quarter of 2014.
The announcement, made by Tony Fernandes on the sidelines of the World Economic Forum, will follow $308 million IPO AirAsia X raised in June.
Operational expansion has been commensurate. The airline will be extending services to a total of eight for Indonesia, with weekly services to Singapore-Medan and daily Singapore-Surabaya flights starting July 1. A Singapore-Makassar service is also among those being planned.
Yet there is a new kid on the block that Fernandes has undoubtedly noticed. Lion Air, Indonesia’s largest domestic carrier Lion Air, and Malaysia’s National Aerospace Defence Industries joint venture Malindo Air has been pressuring AirAsia with its own brand of skyway services, despite having only launched on March 22.
Fernandes is right to be stunned, just better not be too exuberant.
