AMSTERDAM: The aviation industry is expected to see more consolidation with one or two super carriers in regions such as Asean in the next 10 years.
“Does Asean require 10 carriers? I don’t think so... I believe there will be consolidation in the next 10 years,” said AirAsia Group chief executive officer Tan Sri Tony Fernandes on the sidelines of the CAPA Aviation Summit, here, on Thursday.
Fernandes said besides that, aviation players need to decide whether they want to become full-service or low-cost carriers.
“I don’t think you can do both. If you look at the businesses around the world, you have higher priced makeup brands versus affordable Korean cosmetics, you have Perodua versus companies like Rolls-Royce, for example.
“This is why they made a mistake. Recently, we heard an aviation company talking about having the best business and first class, and best low-cost and economy. It will be a disaster. You can’t just do that.
“I think in every product, people have gone one way or the other. I think that is what will happen to airlines eventually.”
Fernandes also said in the next 10 years, he expects it will be nicer for people to travel with the revolution of technology.
“I hope governments around the world work harder to make it easier for people to fly. In this day and age, before I travel, the other countries should know everything about me anyway, with technology. I should not have to go through passport or customs check. They can profile me before I come.
“I think profiling and data should make travelling easier. Do we really need visas? Why can’t visas be done online? Why are there no Asean visas? It does not make any sense,” he said.
On expansion, Fernandes said the airline plans to expand in Indonesia and continue its growth in Langkawi, Kedah.
“I think it is time for us to be aggressive. In the past two years, we slowed down just to see the lay of the land. We want to pump up more.
“We are opening up new routes into Indonesia. We want to continue our growth in Langkawi. We hope we can operate from Langkawi and do more point-to-point services,” he added.
On AirAsia’s plan to sell its leasing arm, Asia Aviation Capital Ltd, Fernandes said there has been some interest.
When asked about the timeline of the sale process, he said “it is imminent”.
“The process has moved forward. As per the timetable, now is for the people to say whether they want to buy it at the price,” he said, without specifying who the possible buyers are.