AirAsia chief Fernandes unfazed by competition: Thai interview

[webfact]

EXCLUSIVE INTERVIEW
AirAsia chief Fernandes unfazed by competition
SUCHAT SRITAMA
THE NATION


Tony Fernandes, right, group chief executive officer of AirAsia revealed its Asia connectivity strategies and success in an exclusive talk with Suthichai Yoon, chairman of Nation Multimedia Group.

Says group focusing on strategies for the Asean community

BANGKOK: -- After experiencing ups and downs - literally and figuratively - since its birth 13 years ago, AirAsia Group is strengthening its regional-connectivity strategies to deal with ever-tougher competition in many countries, including Thailand.

Tony Fernandes, founder and group chief executive officer, said AirAsia saw very positive prospects for the air-travel industry in Southeast Asia.

"The region's Asean Economic Community is becoming the words that people talk about. The open-sky policy here has now actually opened," so everyone wants in on the action. AirAsia Group operates in more than half of the region.

Fernandes stressed that he was not afraid of competition despite the rising number of low-cost carriers. Thai Smile, for example, is moving its operation to Don Mueang International Airport, the home of Thai AirAsia.

"I'm a free marketer, so I'm not afraid of competition. And fair competition gives consumers choices," he said.

In its 13 years of operation, the budget airline group has served more than 200 million passengers, and more than half of them were first-time fliers. The group believes that there will be a lot more first-time customers in the region.

To deal with such a great opportunity,

the group is moving aggressively on its internal management. It is focusing on

cost management, the organisation's culture of transparency, pilot efficiency and intensive training. The airline is doing a detailed study on how to lower costs to the minimum while maximising earnings.

Furthermore, there's no ego at the company, no union, and just one family. These factors have helped the airline deal with many crises over the past 13 years.

More important, it is focused only on the keys to its success that it has used since the start, one class and one fleet. But it has also needed to rebuild its brands by using the right planes for the right market. Therefore, AirAsia X is different from the standard AirAsia model.

Fernandes said Thailand was always a key place for the group's further expansion, as the country is the most popular destination for tourists. Any new move by the company always considers Thailand.

However, separate airports for low-cost and full-service airlines are needed in Thailand.

"Don Mueang Airport is the best low-cost airport in the region," he said.

However, the government should prevent overcapacity, and fees should be

reflective of the airport's facilities.

Now 50 years old, Fernandes said he planned to begin operating low-cost hospitals and educational institutes 10 years from now when he turns 60.

He was in Bangkok for an internal meeting, on the same day that Thai Smile made its inaugural flight from Don Mueang Airport. He also met with National Council for Peace and Order deputy chief ACM Prajin Juntong, to discuss the travel situation and future cooperation to boost Thai tourism.

Source: http://www.nationmultimedia.com/business/AirAsia-chief-Fernandes-unfazed-by-competition-30240669.html

[thenation]2014-08-11[/thenation]

[terryp]

AA lost all my business about 5 years ago when they introduced the rip off debit card fee PER PASSENGER...not a lot of flights but around 20 to 26 a year, I now only use Bangkok air as they are the only company I have found that actually treat you as a customer and not a number (I have tried all the low cost in thailand and to be truthful I dont think they are any different from each other ...cramped & cheap but thats the game its not for me ).

[tominbkk]

Horrible service.  Will never use them again.  Don't think for the customer at all.

[tartempion]

Smart guy that Tony Fernandes.

I flew many Air Asia flights, but AA downed my list, so does Thai (Not) Smile.

If TS quits flying Suvarnabhumi by october 2014 I doubt I will ever fly them again.

In fact I am tired of AA fare structure, add this... add that...

Nok is now my favorite, I like the all-in fares and watch out for promotions.

I still have to fly Bangkok Airways, they managed to cancel my flights so far, booked early September, wait and see. 

Thus I do have future bookings with BKK Air and Nok. 

[Prbkk]

Tony Fernandes and Air Asia threatened by something run by Thai Airways? What a joke.

[IamNoone88]

I have a lot of respect for Fernandez. He bought the airline for 1 Ringgit or about US$0.26 and took over dept of US$11 mill. He is great marketing guy and in the early days took to wearing his AirAsia baseball cap in every interview and photo opportunity to build the brand. He took on many fights including Singapore for the right to fly into the island state. Respect.

[timber]

After watching him on the TV show, I watch my wallet when around AA.

[ginjag]

AA lost all my business about 5 years ago when they introduced the rip off debit card fee PER PASSENGER...not a lot of flights but around 20 to 26 a year, I now only use Bangkok air as they are the only company I have found that actually treat you as a customer and not a number (I have tried all the low cost in thailand and to be truthful I dont think they are any different from each other ...cramped & cheap but thats the game its not for me ).

 

So sorry you choose to opt out 5 years ago because of a debit card fee, How much was that ??? as the cost of the flight is sow low.  Now use B.Air at what price, so if money is no object why complain about a B.C. fee charge.   Bangkok Air are good at, but at their prices they should be.  So if you want to be treated VIP for a 50 minute flight, then stay where you are.  A.Asia hasn't missed you as they are the most promising Airline around,  ( not saying they don't need your custom as that would be crazy)

 

I am not on commission with A.Asia but with so many seats at under 500 baht from Udon to Bangkok my debit charge is silly worth the fee for paying this easy way.

[oldsailor35]

I became one "pissed off" client when i discovered that my flight Bangkok-Singapore via KL could not be connected at KL by about 5 mins despite their online booking system willingly accepting my money and booking. I then had to book and pay for another tkt for my wife and i  KL to Singapore, forfeiting the first tkt money. Their booking system should have rejected my first booking knowing that i would miss by about 5 mins.  But NO it just gobbled up my money and so i paid 2 times for 2 seats to Singapore. I often wonder just how many others get trapped by this "cheap " airline. With a system set up this way, it is no wonder they make profits.   

[ginjag]

Horrible service.  Will never use them again.  Don't think for the customer at all.

 

It's that horrible, did you see how many customers have used A.Asia over the 13 years ??     prices reflect how much they think of the customer.

 

On the internet to book A.Asia as a member, flights given are usually around 590 bht Udon-DMK.  55 mins fly-time.

 

Now you want what customer service in 55 mins ??  powder your nose, sirloin steak, Irish coffee, reclining seat.???  At the prices of Thai and BKK Airways you should get these.

 

55 mins and your screaming ??

[Cake Monster]

Air Asia, and Mr. Fernandez, will be laughing all the way to the bank with the privatization of Malasia Airways, as the new Malay airline company to emerge, will surely drop the cheap airline side of the business, and reduce routes to aid profitability.

[ginjag]

Air Asia, and Mr. Fernandez, will be laughing all the way to the bank with the privatization of Malasia Airways, as the new Malay airline company to emerge, will surely drop the cheap airline side of the business, and reduce routes to aid profitability.

 

Spot on.   Note to all the knockers of A.Asia,  who said it is an airline that is mostly domestic -let me tell you guys that with the new large wider bodied aircraft on order and long range (I think the new A350 series)  you guys think they will use them on the Udon run.    they mean business, and this guy is the one who will be pittling on Thai Airways cornflakes.

 

Just think if he could get his hands on Thai Airways, in no time he would turn them around to be among some of the best again.

[aehall]

600 Baht for a one hour flight?   Wow.   That's cheaper than parking at Los Angeles Airport.

[ginjag]

600 Baht for a one hour flight?   Wow.   That's cheaper than parking at Los Angeles Airport.

 

On the internet through an easy membership e.mail, I am not joking I have had these flights for Zero--75 baht-175  baht-299 baht-these offers are sent say 2 times a week to me by A.Asia membersip (no cost)  no frills admitted - seat- 55 min flight.  at the minute I think 599 bht, but changes weekly, no problem booking at these prices if you don't take too long about it.  No problem with the extras---when booking just delete these boxes, just a matter of reading the boxes.

If you want to go -hand luggage 7 kilos- from a-b  that is what Fernando is aiming at.   Great. If ever I had a delay or have a bus wait at the tarmac who bleeding cares.  If I want to take five screaming kids and the mother in law with all the bags and cases  it is near a no no.

[muffy]

I still use AA , but they really annoy me . The slightest mistake on the computer when booking costs money $$$. When a carrier comes along with a 15 minute time to edit booking I will be gone . They also charge you for booking online with the credit card , how else can you book online ? Using the credit card saves them time and money yet they charge you for it . They rig the computers so they will make money , adds up to millions .   

[toybits]

I have moved to flying Bangkok Airways. So much better service. Hated being treated like a starving and thirsty passenger on AirAsia.  Farewell (or good riddance?) AirAsia. If you want me to fly with you - you have to play catch-up.

[Sayonarax]

After extorting $100 out of me for over weight baggage half way through my trip is the reason i just fly with boring old Thai airways.

 

Im surprised we didn't land in a rice field, cause that what LCCT terminal looks like..

Don Muang Airport looks like a palace compared to the hole you call home. 

[ginjag]

I have moved to flying Bangkok Airways. So much better service. Hated being treated like a starving and thirsty passenger on AirAsia.  Farewell (or good riddance?) AirAsia. If you want me to fly with you - you have to play catch-up.

 

Quote-"starving and thirsty passenger"       for an average of 1 hour flights.????------I got better service for my 55 min flight with BKK Airways, 2 cakes and a plastic water---the difference in cost for these items---1,250 bht.      you have your choice fine but you miss the freebies if you look for them when booking.

[ginjag]

After extorting $100 out of me for over weight baggage half way through my trip is the reason i just fly with boring old Thai airways.

 

Im surprised we didn't land in a rice field, cause that what LCCT terminal looks like..

Don Muang Airport looks like a palace compared to the hole you call home. 

 

Who are you answering ??     Quote "you call home"

[toybits]

ginjag..you are free to fly with AirAsia. It is your choice. I am happy with my new carrier. If you want to be treated like a buffalo - be my guest. 

 

 

 

I have moved to flying Bangkok Airways. So much better service. Hated being treated like a starving and thirsty passenger on AirAsia.  Farewell (or good riddance?) AirAsia. If you want me to fly with you - you have to play catch-up.

 

Quote-"starving and thirsty passenger"       for an average of 1 hour flights.????------I got better service for my 55 min flight with BKK Airways, 2 cakes and a plastic water---the difference in cost for these items---1,250 bht.      you have your choice fine but you miss the freebies if you look for them when booking.

 

 

[h90]

After extorting $100 out of me for over weight baggage half way through my trip is the reason i just fly with boring old Thai airways.

 

Im surprised we didn't land in a rice field, cause that what LCCT terminal looks like..

Don Muang Airport looks like a palace compared to the hole you call home. 

 

And the Thai Airway ticket is 300 $ more expensive, or?

[SeaVisionBurma]

Off topic troll post removed

[Kaoboi Bebobp]

Air Asia is the airline I love to hate, but it has saved me thousands in flights BKK-PNH and BKK-SGN. However, its dep and arr times are usually terrible. Nothing worse than arriving during rush hour in PNH and SGN. So I've shifted sometimes to BKK Air, Cambodia Angkor Air and Vietjet Air.

[ginjag]

ginjag..you are free to fly with AirAsia. It is your choice. I am happy with my new carrier. If you want to be treated like a buffalo - be my guest. 

 

 

 

I have moved to flying Bangkok Airways. So much better service. Hated being treated like a starving and thirsty passenger on AirAsia.  Farewell (or good riddance?) AirAsia. If you want me to fly with you - you have to play catch-up.

 

Quote-"starving and thirsty passenger"       for an average of 1 hour flights.????------I got better service for my 55 min flight with BKK Airways, 2 cakes and a plastic water---the difference in cost for these items---1,250 bht.      you have your choice fine but you miss the freebies if you look for them when booking.

 

 

 

Buffalo's are well looked after as they are cheap to look after and work for you.

 

A.Asia take care of my needs for a 55 min flight I will not die of" thirst-or hunger"--This is the real reason why I replied these 3 words for this 55 min flight   - in that time you do not enjoy food and drink as soon as you get some height you are then in the land -mode-and have to stow your tray--get my drift ??  each to his own and pocket.

Incidentally with my A Asia flight and a taxi to Jomptien cost---I only get the Bkk Airways 55 min flight. go figure.

[ginjag]

Air Asia is the airline I love to hate, but it has saved me thousands in flights BKK-PNH and BKK-SGN. However, its dep and arr times are usually terrible. Nothing worse than arriving during rush hour in PNH and SGN. So I've shifted sometimes to BKK Air, Cambodia Angkor Air and Vietjet Air.

 

In the few years flying A.Asia mainly from Udon  I honestly have never had any delay of more than 15 mins,   suppose on your route other factors cause the delays, security, unexpected delay in the incoming aircraft, late day catch up for near all airlines etc.  I cannot hate though until the let me down mega and I mean mega, then I would only reconsider.

[toybits]

It is very possible that your standards are waaaay lower than mine. Have fun with AirAsia. 

 

 

 

ginjag..you are free to fly with AirAsia. It is your choice. I am happy with my new carrier. If you want to be treated like a buffalo - be my guest. 

 

 

 

I have moved to flying Bangkok Airways. So much better service. Hated being treated like a starving and thirsty passenger on AirAsia.  Farewell (or good riddance?) AirAsia. If you want me to fly with you - you have to play catch-up.

 

Quote-"starving and thirsty passenger"       for an average of 1 hour flights.????------I got better service for my 55 min flight with BKK Airways, 2 cakes and a plastic water---the difference in cost for these items---1,250 bht.      you have your choice fine but you miss the freebies if you look for them when booking.

 

 

 

Buffalo's are well looked after as they are cheap to look after and work for you.

 

A.Asia take care of my needs for a 55 min flight I will not die of" thirst-or hunger"--This is the real reason why I replied these 3 words for this 55 min flight   - in that time you do not enjoy food and drink as soon as you get some height you are then in the land -mode-and have to stow your tray--get my drift ??  each to his own and pocket.

Incidentally with my A Asia flight and a taxi to Jomptien cost---I only get the Bkk Airways 55 min flight. go figure.

 

 

[socksy01]

He must be more worried when QPR go straight back to the Championship at the end of the season and having sat at Loftus Road in the past, there is more leg room on one of their internal Thai flights than at the stadium. Edited August 11, 2014 by socksy01

[shanahan]

I flew with Nok Air 2 weeks ago and found it to be fabulous for a budget airline. Online booking was easy, check in was easy and the cabin crew were all excellent, and perfectly on time. I haven't flown with AA though.

[Jdiddy]

So much AA hate

 

 

I love them, but i travel with only a day pack, dont care where i sit, plenty of very cheap food and drinks available during flight (full service flights you dont really get much anyway) and most importantly the AAX girls are hot

 

Also they dont use LCCT anymore, they moved into KLIA2 which they pretty much have to themselves, massive terminal with a 3 level shopping mall full of eateries

 

 

But hey, if your the typical middle aged fusspot snobbish overweight western traveler who likes to exaggerate and embellish every little hiccup, then maybe they are just not for you

[ginjag]

It is very possible that your standards are waaaay lower than mine. Have fun with AirAsia. 

 

 

 

ginjag..you are free to fly with AirAsia. It is your choice. I am happy with my new carrier. If you want to be treated like a buffalo - be my guest. 

 

 

 

 

Quote-"starving and thirsty passenger"       for an average of 1 hour flights.????------I got better service for my 55 min flight with BKK Airways, 2 cakes and a plastic water---the difference in cost for these items---1,250 bht.      you have your choice fine but you miss the freebies if you look for them when booking.

 

 

 

Buffalo's are well looked after as they are cheap to look after and work for you.

 

A.Asia take care of my needs for a 55 min flight I will not die of" thirst-or hunger"--This is the real reason why I replied these 3 words for this 55 min flight   - in that time you do not enjoy food and drink as soon as you get some height you are then in the land -mode-and have to stow your tray--get my drift ??  each to his own and pocket.

Incidentally with my A Asia flight and a taxi to Jomptien cost---I only get the Bkk Airways 55 min flight. go figure.

 

 

 

No problem --you snob.  Little history--Class 1 referee, top management the best London hotel, UK government officer.   You want to live the Hi So style, or wannabee and show everyone you can live up to that--fine.  I've been there done that, but on occasions I have a little trip on the Orient Express, to  prove to myself I have some class.

 

Additional tip,  place your curser at the bottom of the reply, under the last post and in the new box provided.   just saying, cause it's easier to see and respond.

Edited August 11, 2014 by ginjag