Vietnam is an important market for AirAsia in Southeast Asia.

Tony Fernandes - boss of low-cost airline AirAsia - said Vietnam is still an important market for AirAsia, operating 314 flights per week.

Mr. Tony Fernandes, currently CEO of Capital A - AirAsia's parent company - shared with VnExpress the quarterly business results; strategies for the ASEAN market in general and Vietnam in particular...

- Can you share AirAsia's revenue and profit in the past 9 months?

- Last time - on August 29, we reported business results. In the second quarter of 2023, the core business helped Capital A generate cash flow worth one billion Malaysian ringgit (210 million USD). All four segments (aviation, aviation services, logistics, logistics) "skyrocketed": Ebitda (earnings before interest, taxes, depreciation and amortization) reached 462 million ringgit (9,702 USD), up 325% over the same period last year; revenue increased to 3.2 billion ringgit (672 million USD), up 115% compared to 2022.

The rise in international tourism boosted aviation revenue to 2.9 billion ringgit (609 million USD), Ebitda to 405 million ringgit (8,505 USD). Also in the second quarter, AirAsia recovered 77% of its passenger volume and 74% of its capacity compared to the second quarter of 2019. The average fare was 205 ringgit (43.2 USD), down slightly by 4% year-on-year (due to increased capacity), but still 15% higher than the second quarter of 2019.

To date, we have successfully removed 175 aircraft from storage, with 180 expected to return to service by the end of the third quarter. AirAsia’s target is to have a total of 200 aircraft back in service by the end of the year. I also expect passenger numbers to peak in the fourth quarter, and I am excited about the increase in ancillary revenue per passenger, which is expected to reach US$358 million in the second half of the year, up 27% from pre-Covid-19 levels.

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

In June, my colleagues and I received good news: Skytrax honored us as " World's Best Low-Cost Airline", surpassing 325 other airlines, marking 14 consecutive years of winning this award.

According to Mr. Tony Fernandes, AirAsia is successful by providing high-quality flight services at the best prices, while putting both staff and passengers first. Photo: NVCC

- What factors have helped AirAsia be honored by Skytrax for 14 consecutive years?

- It's heartwarming to win a major title for the 14th year in a row, after the challenges global airlines have faced over the past few years of the pandemic, especially without government support.

Thanks to the relentless dedication of the team and the ability to lead and be transparent in all activities, AirAsia has overcome all the fluctuations over the past two decades such as: 9/11 terrorist attacks, SARS pandemic, weather incidents, financial crisis, Covid-19... In the face of difficulties, we advocate building a strong, tangible team culture, pushing each other forward. In particular, "providing value, the best choice and excellent customer service" is the key to our success.

Typically, during the Covid-19 pandemic, we did not stand still, but used the downtime to review all aspects of operations, accelerate our digital transformation strategy to come back stronger. In "danger" there is always "opportunity", they always turn every crisis into an opportunity. Over the years, I have advocated building a solid foundation to compete in core markets, especially ASEAN - where AirAsia is strongest.

We recovered faster than our competitors because we were in the right segment, market (low cost, focusing on the growing ASEAN), offering the best fares in the short and medium route category.

In 2022, I decided to restructure the company, changing the name to Capital A, but the flight division still kept AirAsia. In addition, I operated a super app that could book tickets, hotels, taxis, food and provide many other fintech services.

Mr. Tony Fernandes said that his group is not only dependent on airline tickets, but has built a flexible business model, with more than 10 products and services supporting each other. In the future, non-aviation digital businesses will bring more profits to airlines. Photo: AirAsia

- AirAsia's business strategy in the coming time?

- People are at the heart of everything we do and AirAsia always puts our staff and passengers first, regardless of culture, religion or gender. As I said above, aviation is still attacking ASEAN. AirAsia Cambodia - our 5th market in the region - will take off in November.

In particular, Vietnam remains an important market. The group currently operates 314 weekly flights to and from Vietnam, including 6 routes to Thailand and 7 routes to Malaysia, ensuring travel needs.

We also aim to open routes that are not served by any other airlines, serve new customers, and strive to offer the best and most consistent fares regardless of the fluctuations. We will maintain the 25-minute arrival and return flight service and launch a series of discount programs, 0 VND.

The recently launched No Delay Insurance policy is one of many great policies for guests and will continue to improve. We have also introduced biometric facial recognition to ensure a seamless, contactless travel experience. With FastPass, you can bring up to 14 kg of carry-on luggage and access priority immigration lanes (applicable to international flights departing from and arriving at Klia2, Malaysia).

- How does AirAsia serve flights arriving and departing in 25 minutes without errors and how does it compensate for the loss with a 0 VND promotion?

- High aircraft utilization and a quick turnaround time of 25 minutes are the key points of our low-cost model. We demonstrate this capability from day one and keep a tight control on every step.

Specifically, AirAsia focuses on improving efficiency throughout its operations - from network planning, flight scheduling, pilot training, in-flight catering to ground support. When the team is on the same page and every step runs smoothly, flights are guaranteed to arrive and depart within 25 minutes, without any errors.

Like other low-cost airlines, we regularly offer promotions to stimulate tourism. A typical example is the 0 VND level on October 16. Obviously, not all seats on all flights are sold at the lowest price. Once those tickets are sold out, the higher price is immediately applied.

As demand for travel increases closer to the travel date, fares tend to increase. It all depends on supply and demand. The key to securing the lowest fares is to plan ahead and book early.

AirAsia staff undergo continuous training to ensure smooth operations and improve the passenger experience. Photo: AirAsia

- Looking back on 21 years of running the airline, what do you remember and are most proud of?

- I have always dreamed of creating affordable flying for the masses of Asians. In my autobiography Flying High , I recounted my journey of buying a failing airline for the nominal sum of one ringgit and turning it into one of the world's largest and leading low-cost airlines over the past 21 years.

Every new airline faces challenges and has many obstacles to overcome, thanks to which it becomes strong and successful. There are so many things I remember and am proud of in that long journey. From just 2 initial aircraft, we now have more than 200 aircraft, in the future will be 300 aircraft with 150 destinations. In two years, we transformed from an airline to a leading OTA, with a one-stop digital travel and lifestyle platform in ASEAN. A special milestone for us was bringing all employees who were suspended due to Covid-19 back to work.

Hieu Chau

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