Vietnam is an important market for AirAsia in Southeast Asia

Tony Fernandes – owner of low-cost airline AirAsia – commented that Vietnam is still an important market for AirAsia, operating 314 weekly flights.

Mr. Tony Fernandes is currently taking on the role of CEO of Capital A – AirAsia’s parent company – sharing with VnExpress quarterly business results; strategy for the ASEAN market in general and Vietnam in particular…

– Can you share AirAsia’s revenue and profits in the past 9 months?

– The last time – on August 29, we reported business results. In the second quarter of 2023, core operations helped Capital A generate cash flow worth one billion Malaysian ringgit (210 million USD). All four segments (aviation, air services, logistics, logistics) are “galloping”: Ebitda (profit before interest, tax and depreciation) reached 462 million ringgit (9,702 USD), up 325% compared to same period last year; Revenue increased to 3.2 billion ringgit ($672 million), up 115% compared to 2022.

International tourism boom boosted airline revenue to 2.9 billion ringgit (609 million USD), Ebitda reached 405 million ringgit (8,505 USD). Also in the second quarter, AirAsia recovered 77% of passenger numbers and 74% of transportation capacity compared to the second quarter of 2019. The average ticket price is 205 ringgit (43.2 USD), down slightly by 4% over the same period (due to increased flight capacity), but still 15% higher than the second quarter of 2019.

To date, we have successfully brought 175 aircraft out of storage, with 180 expected to return to operation by the end of the third quarter. AirAsia’s goal is to put a total of 200 aircraft back into operation by the end of this year. I also predict passenger numbers will peak in the fourth quarter, and am excited when ancillary revenue per passenger increases, expected to reach 358 million USD in the second half of the year, up 27% compared to before Covid-19.

AirAsia has increased its control of AirAsia Philippines to 100%. After 21 years, we have gathered four short-haul airlines under AAV, including: AirAsia Malaysia, Thai AirAsia, Indonesia and the Philippines. This merger contributes to reducing aircraft maintenance costs, yard costs, employee salaries… With the above results, analysts and investors will have a clearer view of our financial capabilities. I..

In June, my colleagues and I received good news: we were honored by Skytrax as “The World’s Best Low-Cost Airline”, surpassing 325 other airlines, marking 14 consecutive years of winning this award.

– What factors have helped AirAsia receive recognition from Skytrax for 14 consecutive years?

– It’s heartwarming to achieve such a significant accolade for 14 consecutive years, especially after facing various challenges that global airlines had to contend with in recent years due to the pandemic, particularly without government assistance.

Thanks to the unwavering dedication of our team and effective leadership, along with transparency in all our operations, AirAsia has successfully navigated through two decades of turbulence, including events like 9/11, the SARS epidemic, weather incidents, financial crises, and Covid-19. In times of difficulty, we are committed to building a strong and tangible group culture, propelling each other forward. Especially, the key to our success lies in “providing value, the best choices, and excellent customer service.”

For instance, during the Covid-19 pandemic, we didn’t stand still; instead, we utilized the downtime to examine every aspect of our operations and accelerate our digital transformation strategy to come back stronger. In every crisis, we see an opportunity. In recent years, I have focused on building a solid foundation to compete in core markets, especially in ASEAN, where AirAsia is strongest.

We recovered faster than our competitors because we are in the right segment and market (low cost, focused on the booming ASEAN region), offering the best fares in the short to medium-haul route portfolio.

In 2022, I decided to restructure the company and change its name to Capital A, but the airline segment is still branded as AirAsia. In addition, we operate a super app that allows customers to book flights, hotels, taxis, meals, and provides various other fintech services.

Every newly established airline faces challenges and has many obstacles to overcome in order to become strong and successful. There are so many things I remember and am proud of during that long journey. With only 2 initial aircraft, we currently have more than 200 aircraft, and in the future there will be 300 aircraft with 150 destinations. In two years, transformed from an airline to a leading OTA, with a one-stop digital travel and lifestyle platform in ASEAN. A special milestone for us is bringing back all employees who were out of work due to Covid-19.