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Anna Healy Fenton

Budget Malaysian airline Air Asia is to begin flights from Macau to Kuala Lumpur and Bangkok this year.

No timetable has been fixed and details have yet to be finalised between the carrier and Macau International Airport Company, but negotiations are at an advanced stage.

Air Asia's founder and chief executive, Tony Fernandes, said its policy was to pitch ticket prices 60 per cent to 80 per cent lower than scheduled carriers.

'We like to deal with airports that are proactive. We want to come up and do business. Macau is hungry, not fat and complacent like some airports,' he said.

Many airports were not interested in the budget market, he added.

Air Asia, established in 2001, has led the recent growth of low-cost carriers in the region.

With its Johor Bahru hub, it flies to 13 cities in Malaysia and has  begun  flights to Bangkok and Phuket.

Its joint venture with Thailand's Shin Corp, controlled by Thai Prime Minister Thaksin Shinawatra's family,  will begin operating domestic flights in Thailand on February 3.

Mr Fernandes, who is known to be keen to establish a Pearl River Delta link, is understood to have been talking to Hong Kong and Guangzhou international airports.

He had initiated  contact   with Macau, the airport's commercial director, Alfred Ng Sio In, confirmed.

'Air Asia has plans but they have still to finalise what mode they will operate,' he said, adding that Macau Airport was the ideal place from which to operate low-cost airlines.

Now it was down to thrashing out costs.

'Airlines always ask for discounts but we need to strike a balance with how many passengers Air Asia can bring to Macau,' he said.

'They really want to operate in Macau, now it depends on negotiations with the airport on traffic, rights, routes and discounts.'

Mr Fernandes confirmed that the pricing aspect was an issue, with fuel rates higher in Macau than at Chek Lap Kok.

But he  was confident about the growth in the number of mainland passengers and the draw of Macau's new casinos.

He dismissed the inconvenience of the ferry journey for Hong Kong passengers.

'Sure, there's a bit of hassle, you have to take a ferry. But if it means you can take flight you couldn't otherwise afford, people will do it,' he said. 'Why not have a US$50 Macau to Kuala Lumpur fare?'

Before concentrating on Macau, Mr Fernandes said his priority was to launch Malaysia to Indonesia flights in March. Air Asia has rights to fly to nine airports in Indonesia.



No-frills airline on course for Macau