AirAsia boss Tony Fernandes has vowed to give Indonesian rival Lion Air “a real run for their money” after it announced plans for a new low-cost carrier, a report said Thursday.
Indonesia’s PT Lion Mentari Airlines and a Malaysian partner called NADI said this week that their Malindo Airways would launch flights around the region from Kuala Lumpur in May, a direct assault on AirAsia’s home turf.
AirAsia has long been based near Kuala Lumpur but Fernandes, a Malaysian, recently opened a regional headquarters in Jakarta and purchased Indonesia’s Batavia Air for US$80 million.
“We are thrilled that they are coming here as this means taking away capacity from Indonesia. We can give them a real run for their money in Indonesia,” he was quoted by Malaysia’s The Edge Financial Daily as saying.
Analysts have said Malindo could threaten fast-growing AirAsia’s profit.
AirAsia’s share price dropped to an 11-month low on the Kuala Lumpur stock exchange Wednesday.