AirAsia open to talks with Malindo Airways

28 Sep 2012 09:26:16

btimes.com.my

n recent months, Tan Sri Tony Fernandes has sought partnerships with potential rivals, as the margins in operating budget carriers are squeezed.

AIRASIA Bhd, Asia's largest low-cost carrier, could potentially co-operate with Malindo Airways, a rival carrier which is seeking to start its own low-cost operations here by as early as next year.

Malindo Airways, which is backed by the National Aerospace and Defence Industries Sdn Bhd (Nadi) and PT Lion Group, had jolted AirAsia after it announced plans to start operations by May 2013 using the new low-cost carrier airport, KLIA2 in Sepang, as its base.

Tan Sri Tony Fernandes' AirAsia has had a virtually uninterrupted domination over Malaysia's air space since it started operations in 2011.

Fernandes had bought AirAsia for a paltry RM1 from DRB-HICOM Bhd, and since then it has turned the company into one with a market capitalisation of RM7.9 billion.

In recent months, Fernandes had sought partnerships with potential rivals, as the margins in operating budget carriers are squeezed.

The most notable partnership was with Malaysia Airlines, which saw Fernandes taking a stake in the national carrier. The deal eventually had to be called off.

Read full story: btimes.com.my