AirAsia mulls Thai hub

AirAsia mulls Thai hub

AirAsia airplanes sit on the tarmac at Soekarno-Hatta Airport in Jakarta on July 8, 2015. The continent's largest no-frills airline group is keen to boost its position in Thailand with the relocation of its regional nerve centre from Indonesia to here. (Reuters photo)
AirAsia airplanes sit on the tarmac at Soekarno-Hatta Airport in Jakarta on July 8, 2015. The continent's largest no-frills airline group is keen to boost its position in Thailand with the relocation of its regional nerve centre from Indonesia to here. (Reuters photo)

AirAsia, the continent's largest no-frills airline group, is keen to boost its position in Thailand with the relocation of its regional nerve centre from Indonesia to here.

In a discussion with Prime Minister Prayut Chan-o-cha on Friday, AirAsia chief executive Tony Fernandes said the group would also like to build its own airports in Thai provinces such as Surat Thani.

Furthermore, AirAsia is interested in a partnership with flag carrier Thai Airways International (THAI) to create a business synergy without equity partnership or competition, said Deputy Prime Minister Somkid Jatusripitak.

AirAsia wants to strengthen its presence in Thailand, which it perceives as a gateway to Asean with significant growth potential in aviation businesses, said Mr Somkid.

AirAsia's regional strategic planning centre in Jakarta went into operation in July 2012 as it looked to cover all of Asean. The office was located in Jakarta to be near the Asean Secretariat but does not cover day-to-day operations for AirAsia in the countries where it flies.

Mr Somkid did not say whether Thailand would allow AirAsia to build its own airports here, as this is up to the Civil Aviation Authority of Thailand.

But he was eager to see troubled THAI establish a "win-win" business proposition with Thai AirAsia (TAA).

In February, Mr Somkid suggested THAI buy a 20% stake in TAA to cash in on the benefits derived from a low-cost carrier.

Veteran airline executives and industry analysts described the suggestion, which reportedly could cost THAI 5 billion baht, as odd and incomprehensible. Holding 20% would not give THAI control of TAA's management or strategic direction.

Do you like the content of this article?
COMMENT (2)