AirAsia X, the long-haul budget airline formed by Tony Fernandes and Sir Richard Branson, might merge with long-established budget airline AirAsia, Mr Fernandes said.
Just more than a year after AirAsia's inaugural flight from Kuala Lumpur to Perth, the long-haul budget airline had proven itself a success and was posting a profit, he said.
'Logically, [AirAsia X and AirAsia] should be together but it has to be up to the board to decide,' he said.
Mr Fernandes owns 30 per cent of AirAsia X, while the remainder is owned by Virgin Group, Japanese leasing firm Orix Corp and Manara Consortium.
Other options, including listing or private equity offerings, are available to the board, but Mr Fernandes said he preferred the merger option.
When Hong Kong Oasis Airlines, the first long-haul low-cost carrier, went bust in April last year, he said attention focused on how AirAsia X would learn from the airline's failure.
'We are very focused on being low cost,' Mr Fernandes said. 'No one would believe we are going to charge for food on a 12-hour flight but we do and people accept it.'