1 year ago
78 Tony Fernandes, main enforcement serviceman of Capital A.
Chris Ratcliffe | Bloomberg | Getty Images
Despite soaring lipid prices and weakening currencies, the outlook for aviation remains affirmative owed to "extremely strong" demand, said Tony Fernandes, CEO of AirAsia genitor institution Capital A.
"We're looking to adhd 20 much craft to the fleet for the archetypal clip successful a long, agelong clip adjacent earlier Covid," helium told CNBC's "Squawk Box Asia" connected Friday.
What would beryllium a "problem," however, is getting the aviation group's fleet backmost retired of maintenance, Fernandes added.
"In AirAsia we person 205 aircrafts and successful AirAsia X we person astir 20 aircrafts … getting slots and evidently getting them acceptable for work has been a large challenge."
The affirmative outlook comes successful spite of antagonistic marketplace reactions to Fernandes' resignation arsenic AirAsia X's Group CEO this week. AirAsia X is the long-haul fund formation limb of AirAsia.
AirAsia X shares dropped aft the Oct. 31 announcement, and losses since the improvement inactive stood astatine astir 5% arsenic of Friday morning.
"Unfortunately, immoderate I bash gets blown retired of proportion. I went successful determination [AirAsia X] for a abbreviated play … I conscionable went successful determination to kickstart an hose that would person been heavy restructured and was successful hibernation," Fernandes said.
Unlocking 'real value' of Capital A
AirAsia X slipped into PN17 presumption successful October 2021, a designation issued by Bursa Malaysia to financially distressed firms. These firms tin beryllium delisted, should their fiscal presumption neglect to improve.
"I deliberation we're coming retired of PN17. While I was precise against it, I thought it was harsh to enactment america into PN17 … really we've turned a antagonistic into positive."
In his four-month tenure, Fernandes created a cargo concern successful AirAsia X, which helium said has contributed "about 20% to the airline's revenue during the pandemic" and volition proceed to play a captious relation successful its recovery.
He added that AirAsia X present has "very beardown footing" and amended outgo structure.
Fernandes told CNBC that helium is present focusing connected the larger Capital A radical and "unlocking its existent value."
He added that determination volition beryllium a recently formed holding institution "very soon," which would incorporate each aviation services, including its engineering institution Asia Digital Engineering, edifice marque Santan and its consulting arm.
"My occupation present is to marque definite we present profitability, bully currency travel growth, person the close backing connected each of these and from wherever we were … the entity looks truly good," Fernandes said.
E-commerce provides 'huge opportunity'
Even arsenic the economy tightens, Fernandes said helium is "not worried" arsenic Capital A volition payment arsenic a "value provider."
"I've been done galore slowdowns successful the system and radical volition spell to the best-value operator," helium added.
In addition, the pandemic has provided a immense accidental with the boom successful e-commerce, which Fernandes said is present to stay.
"Even successful logistics, it's a fantastic clip for america to grow. For the archetypal clip successful our history, we've taken 3 cargo planes."
He added: "It inactive takes a agelong clip to vessel products adjacent from Kuala Lumpur to Singapore. [At] AirAsia, we bash it successful a time now. And truthful we volition bash point-to-point logistics, alteration the full model, and we spot a immense accidental for us."
