AirAsia could eventually cooperate with Malindo Air

Talking to local media, AirAsia founder Tony Fernandes could look at a kind of cooperation agreement with future competitor Malindo Air as the airline expects a possible slowdown in the growth of its revenues.

KUALA LUMPUR- 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, announced plans to start operations by May 2013 at KLIA2 in Sepang. It would be the second low cost carrier to turn KLIA into its home base next to AirAsia. With the consequence that AirAsia might then lose its dominant position in many markets including the fast growing Malaysia-Indonesia market.

AirAsia might then look at building synergies and cooperation with other airlines, including potential competitors as the financial margin of budget carriers in Kuala Lumpur might be under pressure. Following the collapse of the agreement between AirAsia and Malaysia Airlines, Tony Fernandes could seek new agreement with carriers and he evocated with local media a possible cooperation approach with Malindo. Fernandes indicated that he will be meeting up with Rusdi Kirana, the president director of PT Lion Group, soon and the Indonesian stakeholder in Malindo Air. “We will meet over dinner soon. I am not here to make enemies. I think there are many things that we can collaborate on. If we can work together to lower airport charges, then why not ? I welcome it,” he told reporters after launching AirAsia’s Badminton Academy here yesterday.

Fernandes however confirmed that AirAsia and Malindo Airways will still compete.

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Luc Citrinot

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Luc Citrinot a French national is a freelance journalist and consultant in tourism and air transport with over 20 years experience. Based in Paris and Bangkok, he works for various travel and air transport trade publications in Europe and Asia.