AirAsia CEO confirms advanced talks to purchase Chinese COMAC planes
One of Asia's largest low-cost carriers, the airline has a current all-Airbus fleet of 255 aircraft.
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KUALA LUMPUR: Malaysian budget carrier AirAsia is in advanced talks with Chinese aircraft manufacturer COMAC to acquire narrow-body jets for its fleet.
“We’re in active discussions. I can confirm that,” the airline’s founder and CEO Tony Fernandes told CNA.
“We are very serious about COMAC. We're excited. It's a big step forward to make this decision.”
He declined to disclose details on order size, delivery timeline or pricing, saying: “We’re evaluating. We're in the process of understanding our order book.”
Mr Fernandes stated that he has flown on COMAC aircraft operated by Chinese state-owned airlines.
He has also visited the company's manufacturing facilities.
“(COMAC planes) have been flying very successfully in China. I visited the factory – they're very dedicated (and) passionate,” he said.
“It's a good product. We're very serious about it. I think anyone who doesn't look at it will pay the price in the long run.”
China is among AirAsia’s largest international markets, with the airline serving 23 destinations there.
“(But) we don't buy Chinese planes just because we fly to China. We buy Chinese planes because they're good, they're the right price,” Mr Fernandes said.
“Chinese technology is proven. They make great cars, great mobile phones, great chips.”
Another appealing aspect, he added, is that COMAC – the Commercial Aircraft Corporation of China – is ramping up aircraft production, which could lead to faster delivery times.
One of Asia's largest low-cost carriers, the airline has a current all-Airbus fleet of 255 aircraft, with hundreds more on order. But persistent supply chain problems have delayed Airbus deliveries.
AirAsia is also reportedly considering Brazil’s Embraer E2 jets as it seeks to add smaller planes to its fleet for regional routes.
COMAC’S EXPANSION
The Chinese planemaker, which has limited presence outside of China, is looking to expand internationally and challenge an aviation market long dominated by Airbus and Boeing.
Beyond China, several Southeast Asian airlines – including Indonesian low-cost carrier TransNusa, Vietnamese budget airline Vietjet and Laos flag carrier Lao Airlines – operate the C909 regional jet.
Chinese-backed GallopAir, based in Brunei, has a US$2 billion deal to buy 30 COMAC aircraft, including the single-aisle C919 jet. The C919 competes directly with Airbus’ A320 and Boeing’s 737 aircraft, and COMAC is keen to market the model to foreign buyers.
The company aims to begin flying the C919 on commercial routes from China to Southeast Asia next year as a first step to moving beyond its domestic market.
REGIONAL BUDGET HUB
Looking ahead, Mr Fernandes said AirAsia hopes to build a low-cost airline hub in the region to connect passengers to more places via short-haul flights.
“We want to build a Dubai in Kuala Lumpur and Bangkok,” he said, referring to the Dubai International Airport, one of the world’s most connected gateway for international travel.
He acknowledged that Southeast Asia has major global hubs such as Singapore’s Changi Airport, but said they largely serve premium flyers.
“No one's ever built a low-cost airline hub. My goal is to allow people to fly much further through a short-haul, narrow-body plane strategy. You can fly from one destination, connect, and go to another destination,” he added.
Mr Fernandes said AirAsia has yet to fully emerge from the impacts of the COVID-19 pandemic. They company has been restructuring its plane order book.
He said he hopes to complete the restructuring process within the next two months, following which he expects to make an official announcement on COMAC jet acquisitions.
