On the contrary ...

For AirAsia boss Datuk Seri Tony Fernandes, a recession is the best time to build, an uncommon opinion to say the least.

DATUK Seri Tony Fernandes is a man who has built his business on being contrary.

When the global airline industry was recording losses in the aftermath of September 11 2001, Fernandes and compatriot Datuk Kamaruddin Meranun were busy trying to get their brainchild AirAsia (5099) off the ground ... which they succeeded in doing, recording a profit in 2002.

When the media and analysts continued to prophesise doom for the airline, Fernandes and his team put in an order for 60 A320s from Airbus in March 2005.

Three years later, with every industry (in particular the airline industry) bracing itself for a long and painful recession, he hasn't changed.
"We (AirAsia) are very bullish and very optimistic (about the future), all the newspapers in Malaysia had wanted me to be negative in the last seven years.

"You are a depressing bunch, but I'm optimistic, my load factors are good, people want to travel, they are not killing themselves every day ... you have to be innovative," Fernandes told Business Times in Kuala Lumpur last week.

For him, a recession is the best time to build, an uncommon opinion to say the least.

"My gut feeling says the best thing to do now is to grow ourselves out of a recession. I think we have enough people to fly with us. By opening up new markets, we are constantly getting new people on our flights," Fernandes said.

His optimism is backed by the fact that AirAsia has seen record bookings for December, with seats sold out in two weeks.

Fernandes said the group also expects its Thai and Indonesian subsidiaries to be "very profitable" in the fourth quarter of the year.

Thai AirAsia recorded an unrecognised share of loss of RM21.7 million, while Indonesia AirAsia registered a loss of RM12.2 million for the quarter ended June 30 2008.

Thai AirAsia is a jointly controlled entity of the budget carrier while Indonesia AirAsia is an associate company.

Fernandes said the Sepang hub also stands to benefit from the growth in passenger movement on its Thai and Indonesian flights.

Despite his optimism, one might say that this time around the odds are stacked against it, what with the International Air Transport Association expecting further losses in 2009 and Centre for Asia Pacific Aviation expecting no Asian airline to make a profit a next year.

Fernandes would probably say, "When has it ever been different?"