AirAsia targets China’s ‘still very big for us’ smaller cities such as Xian in bet on budget-conscious fliers, appetite for Southeast Asia
- AirAsia will record ‘bigger’ growth by providing direct connectivity from mainland China’s smaller cities, CEO Tony Fernandes tells the Post
- Airline parent Capital A Berhad and Ant Group sign deal that will allow passengers to save on payment costs when using Alipay+ services to buy air tickets
Malaysian budget carrier AirAsia plans to start new routes connecting smaller mainland Chinese cities with Southeast Asia to tap a recovery in the country’s travel market, as consumers become more budget conscious. It has also signed a deal with Ant Group that will create savings for Alipay+ users.
The expansion plan is in line with AirAsia’s efforts to chase annualised 15 per cent growth in its Chinese business over the next few years.
“There are two parts of growth here,” Fernandes said. “One is new cities, but the bigger one for me is to provide direct connectivity from the smaller cities.
“Your smaller cities are still very big for us.”
AirAsia, founded in 2001 by Fernandes with two aircraft, offers 17 routes to the mainland with about 160 flights a week. The airline links major Chinese cities such as Beijing, Shanghai and Guangzhou with Southeast Asian destinations like Kuala Lumpur, Kota Kinabalu and Johor Bahru.