Fernandes confirms he is looking into setting up new carrier

KUALA LUMPUR (Nov 14, 2011): AirAsia Group CEO Tan Sri Tony Fernandes confirms that he is looking into setting up a super-premium full-service carrier (FSC) and it would definitely involve national carrier Malaysia Airlines (MAS).

In his first public comment on the issue since theSun broke the story last Wednesday, Fernandes said setting up a FSC is one of the ideas being tossed around, and should the plan materialise, it would definitely involve MAS. He declined to reveal details, only saying to "wait and see".

"There is an appropriate time for everything. This is not just me. I am right now focusing on MAS and AirAsia and I am on the board of MAS," he told reporters after the launch of AirAsia's new global loyalty programme called "BIG" here today. "(AirAsia co-founder) Datuk Kamarudin (Meranun) and I have hundreds of ideas running through our minds... But if there is a business proposition that makes sense for the premium market, it would definitely be with MAS," he added.

Last Wednesday, theSun reported that the low-cost carrier chief was planning to start a new super-premium FSC that is likely to be called Caterham Jet, after his Caterham Formula 1 team. "What has been put out in the press is a story. There are hundreds of ideas that I and others have come up with...To be honest, a lot of people are excited about this idea... but it is still an idea," he said.

Fernandes also expressed his disappointment in some quarters who have "twisted" the news, giving the issue negative publicity. "What I can say is, if an idea like this does materialise, and I am not saying it will, it would definitely involve MAS," he said.

"I think there is a wonderful opportunity for people who don't want to queue when checking in, want a different flight experience and pay for it. But whether we can make it (super-premium FSC) work, who knows? As a traveller, time is very precious, so why not?

"All I am saying is that there are some people who are trying to make this (plan) to be a disadvantage to MAS. If this idea works, then MAS may be one up against Singapore Airlines because the latter does not have this kind of first-class premium service. This is great for Malaysia. Right now it is just an idea."

Earlier, Fernandes said AirAsia will release its 2011 third-quarter results next week. "Fourth quarter (performance, ending Dec 31, 2011) looks very strong. The Thai floods have a minimal impact (on our operations). People are still going to Bangkok.

"There will always be economic problems. but it's things like BIG, new destinations and having aggressive marketing that will find our way through this," he said.

Fernandes declined to say how AirAsia is benefiting from the MAS-AirAsia collaborative agreement, except to say: "For all the doomsday people out there, (I say) wait and see. Let the results speak for themselves. You can't turn around airlines in 100 days, but there is a market for both airlines and both airlines can be very profitable." He added: "In Asia, there is a huge appetite for travel and low fares and I think AirAsia is at the right place at the right time. If we were in the US or the UK, then that would be a much different story.

"If you have the right business model, there is tremendous upside and equally for full-service carriers, it is about focus, about right sizing the business and about creating a product. "For the large number of people who are flying on low-cost carriers, there is equally a large group of middle-class that is moving up, who wants full service and wants first- and business-class services."

-thesundaily.