Tony Fernandes, CEO of Capital A, reaffirmed that AirAsia will continue its efforts to obtain a license to operate in Singapore, despite being rejected three times. He pointed out that other ASEAN countries have granted licenses to AirAsia, while Singapore continues to block the airline to protect its national carrier. These remarks were made following the inauguration of the Asia Digital Engineering maintenance and repair hangar at KLIA.
The repeated rejection of AirAsia by Singapore has sparked discussions on aviation sector protectionism and the dynamics of competition in international markets. As a giant in the low-cost airline industry across Asia, AirAsia continues to face challenges in its attempt to expand operations in the region. Fernandes’s frequently quoted phrase, "Don't block me in Singapore," has become a symbol of AirAsia’s struggle to navigate global business challenges.
Constant Rejections: The Reasons?
Singapore and AirAsia represent two different approaches to regulating the aviation industry.
On one hand, Singapore’s protectionist policies can be seen as an effort to safeguard its domestic market and national interests, with a focus on maintaining stability in the aviation industry and preserving jobs. The Singaporean government likely views this as crucial to upholding high service standards and market stability.
On the other hand, Tony Fernandes emphasizes the potential benefits of more open competition, such as lower airfares and increased connectivity, which could boost Singapore's economy overall. For Fernandes, this fight is not just about gaining access to a new market but also about reinforcing principles of fair competition in global business.
This struggle reflects a broader effort to create an inclusive and competitive business environment, where all players have equal opportunities. The idea is that the skies, like the markets below them, should be open to allow competition to thrive for the benefit of all.
AirAsia: Connecting the Region
As an integral part of the Capital A ecosystem, AirAsia has access to a vast user base, including over 50 million active users, 22 million loyalty members, and 56 million social media followers. This gives the company a strong platform to boost brand visibility and strengthen its position as a market leader in the ASEAN region.
With 23 hubs across six countries in Asia and ASEAN, including Malaysia, Thailand, Indonesia, the Philippines, India, and Japan, AirAsia has successfully built an extensive network in one of the world's fastest-growing economic regions. The ASEAN market, with a potential value of $5 billion and an annual growth rate of 13%, presents a promising opportunity for the company to continue expanding its business.
As a pioneer of low-cost air travel, AirAsia has connected numerous destinations, including 90 unique routes out of the 293 it serves. The company’s rapid growth is reflected in the increase in passengers, with more than 435 million flown in 2017, a significant leap from the mere two planes it operated at its inception in 2001. With a current fleet of 205 aircraft, AirAsia has firmly established itself as a market leader in the region.
