New routes can mean more business, says AirAsia X’s CEO

Monday January 26, 2009

BEIJING: AirAsia X’s new routes to more Chinese cities in the future can translate into more business opportunities for both countries, said AirAsia X Sdn Bhd chief executive officer Azran Osman Rani.

“We started flying to China less than two years ago but the number of passengers has grown 50%,” he said in an interview.

Azran was among the over-70-member delegation led by MCA president Datuk Seri Ong Tee Keat for a six-day visit to Beijing to foster closer ties and strengthen co-operation in various areas such as aviation and port development.

On Tuesday, Ong met his counterparts before calling on Jia Qinglin, China’s People’s Political Consultative Conference chairman, and raised the question of greater aviation co-operation between both countries.

Azran: New routes and frequency could boost the economic wellbeing of both China and Malaysia.

It was reported earlier that Ong had said the two countries would fully utilise the rights allowed in their bilateral agreement after 2010.

The low-cost carrier will be flying to Tianjin five times a week from March and will increase the frequency to daily flights after September.

It will also begin flights to Xi’an and Chengdu this year after time slots have been confirmed.

On the new routes, Azran said they expected to see a big surge of passengers once they were able to fly direct to other Chinese cities.

Currently, AirAsia X, the long-haul low-cost affiliate of AirAsia, flies to Macau and Hangzhou in China.

The electrical engineer from Stanford University added that the carrier would make Beijing more affordable and would bring people to the capital through Tianjin.

“After this, we want to include Chengdu, Xi’an, and Chongqing.’

“We hope our presence will help people (the Chinese) here understand that the low-cost carrier brings a much greater market,” he said.

With China’s significant new middle class, Azran said the new routes would help the carrier get a greater share of the market.

“China is so huge that what we are doing now is just scratching the surface,” he added.

One challenge to entering the Chinese market had been getting approval.

“Had we not got our Minister of Transport here, we may not have obtained the approval to fly to Tianjin this fast,” he said in expressing his gratitude to Ong.

On the cost of entering the Chinese market, Azran said it would take them two to three years to recoup the expenses, adding it was long-term investment for them.