AirAsia CEO ‘bullish’ on beating Omicron as airline announces resumption of Phnom Penh flights
In this article (5)
AirAsia Group chief executive Tony Fernandes has urged governments to stop “overreacting” to the emergence of the new Omicron variant of Covid-19 and focus on reducing the cost of PCR testing instead.
“It’s a huge overreaction. We don’t know anything about this variant yet. Let’s wait and see before we jump the gun,” Mr. Fernandes said at a virtual address at Bangkok Post’s International Forum 2021 dubbed “Unleashing the Future: A Glimpse into 2022 and Beyond” on Thursday.
Air Asia has also hinted that Cambodia is one potential market for new ventures. Current group president for airlines Bo Lingam says: “We will continue to review new markets to operate from in the future, like Cambodia for example when we can connect Southeast Asia once again with the best value fares and lifestyle offerings.”
The chief executive of the low-cost carrier said the world is more equipped and better prepared to deal with Omicron — first detected in South Africa — than previous strains.
Air Asia is also reportedly looking at resuming Kuala Lumpur-Phnom Penh flights in January 26 to take advantage of Chinese New Year travelers. During its heydays prior to COVID-19, it used to mount three flights a day.
“There are Merck pills, and Pfizer pills are coming out. We are vaccinated. There are boosters available. I’m feeling much more bullish, and I am not doom and gloom,” he said.
“Governments need to use common sense and see what is needed. I think travel restrictions and such measures are temporary, and the world is global. No matter how much we close the borders, the viruses will travel.”
He criticized the pricing and frequency of the PCR tests required by many governments, including Thailand, when travelers enter their borders. He said this risks deterring passengers from taking a vacation despite the pent-up demand to venture overseas.
“Air Asia is also reportedly looking at resuming Kuala Lumpur-Phnom Penh flights in January 26 to take advantage of Chinese New Year travelers.”
“No government has looked at the cost of the PCR test. PCR tests in Southeast Asia are extremely [expensive]. It’s unfair for passengers to pay that kind of cost. Of course, we want to be safe, but make it as simple as possible.”
He praised Thailand for planning to reduce some of these charges and procedures.
“Thailand is ahead of the rest of ASEAN, which are still quite draconian,” he said, referring to the Association of Southeast Asian Nations.
“In Malaysia, we have a seven-day quarantine. It’s a start. At least we are opening up borders, but there’s a long way to go before we get to where we used to be.”
As for AirAsia’s operations and outlook for 2022, Mr. Fernandes said he had restructured the company and pivoted to more digital businesses.
So far, the low-cost carrier has launched three logistics businesses — a food delivery super-app, online bank BigPay, and parcel delivery service Teleport. The company has no plans to cut routes yet, it said.
The group CEO was optimistic about the future of the aviation industry. He said he expects low-cost carriers to bounce back faster than full-service airlines as most passengers prefer to travel short distances. Moreover, business travelers are getting used to attending meetings virtually instead of in person, he said.
Questions & Answers
Q.What is AirAsia's current stance on the Omicron variant and government reactions?
What is AirAsia's current stance on the Omicron variant and government reactions?
AirAsia Group CEO Tony Fernandes believes there's a huge overreaction to Omicron. He urges governments to wait and see before acting, arguing the world is better prepared for this variant with new treatments and vaccinated populations.
Q.Which new market is AirAsia considering for future operations?
Which new market is AirAsia considering for future operations?
AirAsia is reportedly considering Cambodia as a potential new market for ventures. Group president Bo Lingam stated they will continue to review new markets to operate from, citing Cambodia as an example.
Q.When does AirAsia plan to resume flights between Kuala Lumpur and Phnom Penh?
When does AirAsia plan to resume flights between Kuala Lumpur and Phnom Penh?
AirAsia is looking at resuming Kuala Lumpur-Phnom Penh flights on January 26. This timing is intended to take advantage of the travel demand during the Chinese New Year period.
Q.What business areas has AirAsia diversified into besides aviation?
What business areas has AirAsia diversified into besides aviation?
AirAsia has diversified into digital businesses, launching three logistics ventures. These include a food delivery super-app, the online bank BigPay, and the parcel delivery service Teleport.
Reader pulse
Is AirAsia too bullish?
21,982 votes so far