AirAsia group CEO Tony Fernandes feels that new low-cost carrier will pose a threat to MAS.
PETALING JAYA: AirAsia group CEO Tony Fernandes dismissed the notion that a new low-cost airline, Malindo Airways, that will start operation in Malaysia next year will be a potential threat to AirAsia Bhd.
Malindo Airways is a joint venture between National Aerospace and Defence Industries Sdn Bhd (Nadi) and Indonesia’s PT Lion Grup. It will operate from KLIA 2 in Sepang.
Fernandes said that Malindo launched by Prime Minister Najib Tun Razak today would pose a threat to Malaysia Airlines instead.
“I think Malindo will be more of problem to MAS than AirAsia,” he said via Twitter.
Fernandes is least concerned about the impact of Malindo Airways on AirAsia since the latter is a regional brand name.
“We have a very strong position in Malaysia and are really a regional company. We are no more a Malaysian brand but an Asian brand,” he said.
While he welcomed the latest player in the Malaysian aviation industry, he said the AirAsia group profits would grow since the company has already expanded its operation in Asia.