Air Asia nixes Myanmar service

[reader]

From Reuters

 

Talks between AirAsia Group Bhd (AIRA.KL) and a partner to open an airline in Myanmar have stopped, the group's chief executive told reporters on Tuesday.

 

Chief Executive Tony Fernandes told Reuters in March his budget carrier was in talks with a potential partner to open an airline serving Myanmar, which would help the low-cost carrier to cover up to 95 per cent of the Southeast Asian travel market.

 

But Fernandes told reporters at an AirAsia event in Bangkok,"the negotiations have stopped. We are not moving ahead with Myanmar at the moment... We might revisit that but we've decided not to go into Myanmar just yet."

 

https://uk.mobile.reuters.com/article/amp/idUKKCN1IG1D1

[PeterRS]

The heading on this topic is wrong as it gives the impression that Air Asia will no longer serve Myanmar. Air Asia has no plans to stop flying in to to Yangon from both Bangkok and Kuala Lumpur. What has been nixed is an Air Asia Myanmar based airline similar to those it has established in Thailand, Indonesia, the Philippines and elsewhere. Presently there are 6 daily departures from Bangkok to Yangon. This rises to 8 during the high season.

[reader]

Thanks you, Peter, for clarifying that. Heading should have read "Air Asia nixes starting new airline in Myanmar."

 

Here's some additional content from the same article that may be of interest:

 

Shares in AirAsia Group fell as much as 10 percent on Monday in the first trading session since Fernandes apologized for endorsing former Malaysian leader Najib Razak days before he lost a general election last week to veteran politician Mahathir Mohamad, 92.

 

Fernandes apologized and said he was under intense pressure to support the Najib government.

 

The Malaysian Aviation Commission (Mavcom) on Tuesday refuted accusations by Fernandes that it had told the budget airline to cancel all additional flights intended to help voters return home before polling day.

 

The regulator said it had filed a police report against Fernandes.

 

Fernandes told Reuters in Bangkok he would not comment on the police report and referred Reuters to statement by AirAsia on Tuesday saying it "strongly refutes" the report lodged by Mavcom.

[spoon]

Air asia CEO had make a grief mistake by siding with malaysia ex prime minister and now he is suffering consequences. Their stock plummeted quite a bit, so its no suprise that any new ventures is out of question until they sorted things out. If u ask me, id still use the airline as long as they are the cheapest for my destination, but cant say the same with majority of the people here.

[Guest abang1961]

I agree with Spoon that if AirAsia continues to provide the cheapest fare, who am I to be bothered by their political inclination?

Poor Tony must have many "unseen" threats by BN and the over-zealous ex-government.  

 

I have to thank Air Asia for making flying possible for POORER  folks like me.

I could easily pick up flights without hesitation, unlike those days where full-fledged airlines ruled.

 

It was SGD300 to fly to Bangkok on a regular airline but just below SGD 150 when I use Air Asia.

It does not take a genius to figure things out. 

 

With regards to the regional hub in Myanmar, I speculate that it may be a wise choice as the number of passengers could not justify the cost.  It is much better to concentrate on efforts within Malaysia and Thailand.   Air Asia has become a part of life in ordinary folks there.

[spoon]

Its a pity airasia didnt get to operate in local myanmar and the current local airlines have serious safety issues with their aging airplane and i dont think id patronize them if i have a choice.

[pong]

Nothing new then here. They have also tried to strat up and failed/withdrew quickly in Japan, Taiwan and moreorless also Phillippines (came back and are now there just a minor player). DK how it is with their Indian brainchild/startup/