AirAsia's biz soars on rapid regional growth
Updated: 2013-01-16 05:59
By Sophie He(HK Edition)
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AirAsia, the Malaysia-based low-cost carrier, is enjoying fast growth rate thanks to the rapidly growing trade between China and ASEAN countries, and the carrier is planning on further expansion of its business in the region, a senior officer of the airline said on the sidelines of a workshop at the Asian Financial Forum.
Zaman Ahmad, group head of Customer Experience and Technology at AirAsia told reporters after attending the "China-ASEAN Business Partnership", a China Daily sponsored workshop, that AirAsia is planning to continue its growth into the China market in 2013 and 2014. He added that by 2015, with the "ASEAN open skies" and the China-ASEAN free trade zones, the airline is expected to double its passenger volumes (in and out China) by that time.
"It (the double passenger volume growth) may happen even earlier than we expect," Ahmad said.
AirAsia was established 11 years ago. It then had only two planes and transported 250,000 passengers per year. Currently, the airline owns 132 planes and flies 38 million people per year to 80 destinations, including 11 inside China.
"Our planes are flying to China from Malaysia, Thailand, Indonesia as well as Philippines," said Ahmad, adding that it has 200 flights per week, flying 52,000 people into China and flying 50,000 people out of China every week.
Ahmad, who stressed that the company's business is benefiting from the fast growing trade between China and ASEAN countries, said, "The profile of passengers who are flying with us is shifting from leisure travelers to business travelers. We are also seeing more and more business men (flying with the airline) now, (and they are) coming with their suitcases in their BMWs to the airports, including some of them taking day trips for their businesses."
In addition, AirAsia's cargo business is also growing rapidly and this sector is expected to be a large revenue source for the company, thanks to more people sending textiles, food, merchandise and whatever they might need between China and ASEAN, said Ahmad.
In 2011, the bilateral trade between China and ASEAN reached $362.85 billion, a 24 percent increase year-on-year. ASEAN has become China's third largest trading partner, fourth largest export destination and third largest import source.
Ahmad also mentioned that AirAsia has ordered 475 planes that are scheduled for delivery in the next 10-15 years, for services in China, ASEAN countries as well as in Japan and Korea.
Under the initial agreement signed on November 4, 2002 in Cambodia, the tariffs on 90 percent of imported goods within the China-ASEAN trade area were reduced to zero by 2010, and the remaining tariffs will be cut to zero by 2015.
(HK Edition 01/16/2013 page2)