15-Oct-2010 10:58 AM

Thai should focus on core not LCC ventures: AirAsia CEO

AirAsia CEO Tony Fernandes stated Thai Airways should focus on being a premium airline rather than trying to get involved in LCC ventures, questioning the need for Thai to establish Thai Tiger Airways under a JV with Tiger Airways (Bangkok Post, 15-Oct-2010). The CEO stated Thai is already a very strong premium airline and there are still significant growth opportunities for the carrier, without launching an LCC. He noted Cathay Pacific has remained successful without launching an LCC and while Singapore Airlines has a stake in Tiger Airways, it is not involved in its operations. He added Tiger Airways is an “odd” choice as a business ally as it is not making much money. 

AirAsia: “My question is, is it necessary? Is it being done for the right reasons? … Why doesn't Mercedes-Benz have a Tata Nano? Why has AirAsia not done a full-service airline? Because we know that is a business where we would fail. We're focused on what we are doing best and are passionate about, the LCC. As a businessman, I always believe in focus and discipline in my core business … They [Tiger Airways] have not yet been able to solve their problems, so what are they going to teach the THAI?” Tony Fernandes, CEO. Source: Bangkok Post, 15-Oct-2010.

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