KUALA LUMPUR: Following last week’s media report that Tan Sri Tony Fernandes had plans to establish a super-premium airline, the CEO of low-cost carrier AirAsia Bhd acknowledged that it was an “idea” being bandied around. However, he said any venture by the company into the premium segment “would definitely involve MAS”.
News reports emerged last week that Fernandes was proposing to set up a super-premium airline named Caterham Jet that would be based at Subang Airport.
It was said the new airline would compete directly with Qantas’ upcoming full-fledged carrier, RedQ.
“If an idea like this materialises, I’m not saying it will, but if it does, it will be a wonderful opportunity,” said Fernandez after the launch of AirAsia’s “BIG” global loyalty programme.
He stressed that there remained two distinct segments, the premium and low-cost segments, and a potential step by AirAsia into the former would not exclude the involvement of Malaysian Airline System Bhd (MAS).
Fernandes declined to share specifics on the matter, though he stressed that the article published last week was “completely wrong”.
“As for what has been put in the press, we disapprove on how people twist it and try to make it into a negative thing. Some people are trying to make it look like a disadvantage to MAS... if this can work it will be great for (both) MAS and AirAsia,” he said.
The company yesterday launched a programme that would allow its members to earn loyalty points while travelling and shopping.
The BIG loyalty programme is a 50:50 joint venture with Tune Money Sdn Bhd, the financial services arm of the Tune group of companies.
Fernandes said the programme posed AirAsia no cost, as it would be picked up by Tune Money.
“With this new database, Tune Money will be able to market its insurance (products) and develop a financial community,” he said.
The programme is expected to raise an additional RM500 million in ticket sales for AirAsia next year, said Fernandes.
“The major draw from this will be the free flights... everyone loves to travel,” he said.
Moreover, it is expected to grow the company’s load factor to 90% from 80% currently.
The programme will offer a loyalty card for the company’s international buyers.
Malaysian buyers will be offered a “BIG” Visa Prepaid card, through which they can earn loyalty points while using the debit card at accepted merchants worldwide.
“BIG” went through a soft-launch last month and has received 60,000 applications, according to the company. Fernandes expects one million members by mid-2012.
On the company’s performance, he said it is expected to have a good 4QFY11. “We’re going to have a good fourth quarter,” he said.
He added that the effect from the floods in Thailand was minimal.
Fernandes ascertained that there was a market for both the premium and low-cost segments.
This article appeared in The Edge Financial Daily, November 15, 2011.
News reports emerged last week that Fernandes was proposing to set up a super-premium airline named Caterham Jet that would be based at Subang Airport.
It was said the new airline would compete directly with Qantas’ upcoming full-fledged carrier, RedQ.
“If an idea like this materialises, I’m not saying it will, but if it does, it will be a wonderful opportunity,” said Fernandez after the launch of AirAsia’s “BIG” global loyalty programme.
He stressed that there remained two distinct segments, the premium and low-cost segments, and a potential step by AirAsia into the former would not exclude the involvement of Malaysian Airline System Bhd (MAS).
Fernandes declined to share specifics on the matter, though he stressed that the article published last week was “completely wrong”.
“As for what has been put in the press, we disapprove on how people twist it and try to make it into a negative thing. Some people are trying to make it look like a disadvantage to MAS... if this can work it will be great for (both) MAS and AirAsia,” he said.
The company yesterday launched a programme that would allow its members to earn loyalty points while travelling and shopping.
The BIG loyalty programme is a 50:50 joint venture with Tune Money Sdn Bhd, the financial services arm of the Tune group of companies.
Fernandes said the programme posed AirAsia no cost, as it would be picked up by Tune Money.
“With this new database, Tune Money will be able to market its insurance (products) and develop a financial community,” he said.
The programme is expected to raise an additional RM500 million in ticket sales for AirAsia next year, said Fernandes.
“The major draw from this will be the free flights... everyone loves to travel,” he said.
Moreover, it is expected to grow the company’s load factor to 90% from 80% currently.
The programme will offer a loyalty card for the company’s international buyers.
Malaysian buyers will be offered a “BIG” Visa Prepaid card, through which they can earn loyalty points while using the debit card at accepted merchants worldwide.
“BIG” went through a soft-launch last month and has received 60,000 applications, according to the company. Fernandes expects one million members by mid-2012.
On the company’s performance, he said it is expected to have a good 4QFY11. “We’re going to have a good fourth quarter,” he said.
He added that the effect from the floods in Thailand was minimal.
Fernandes ascertained that there was a market for both the premium and low-cost segments.
This article appeared in The Edge Financial Daily, November 15, 2011.
