Malaysian carrier AirAsia announced last week that they have signed a joint venture agreement to launch a new Chinese start-up, AirAsia China. AirAsia representatives have hinted that the aircraft of choice for the new carrier would be Chinese manufactured COMAC C919.
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I really love the C919. It’s a mix between a 787 and an A320, so in other words awesome. On the contrary, yet another AirAsia…
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AirAsia China? I thought there were already too many carriers in Asia. Turns out not, and AirAsia somehow has money to start yet another subsidiary.
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They are sort of like the Norwegian Air of Asia. Their funding is almost infinite and their revenue is through the roof. They will be expanding for a long time to come!
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AirAsia’s presence would make Chinese Aviation Industry even more competitive. I believe there has been several LCC Competitors in China waiting for AirAsia’s presence. I think we should see if they would be able to survive 😉
With 9 Air, China United Airlines, Jiangxi Air, Ruili Airlines, Spring Airlines, Urumqi Air, and West Air dominating Chinese Markets (These are only LCC, not including FSC). I think it will be very tough to compete in China
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AirAsia has established Susbsidiaries in Indonesia, Thailand, Japan, and India. Indonesia AirAsia currently is struggling and waiting for a money injection from AirAsia Berhad
I’m not so sure about AirAsia India’s Financial Conditions. They just started their operations several years ago
In Japan and Thailand case, AirAsia can be more succesful as there are not many LCC competitors on these two countries.
While in Indonesia, It is used to be succesful as AirAsia operates to various International Destination from Jakarta (Singapore, KL, Bangkok) as AirAsia can offer cheaper prices on these destinations compared to other competitors. However, their domestic performance is really poor due to Heavy Competition with Lion Air and Citilink. Worsen by the tragedy of QZ8501 which makes them lost more money which ended up in cost cutting and ceased many routes from airports in Indonesia besides CGK and DPS. This also resulted of a merge between Indonesia AirAsia X and Indonesia AirAsia.
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Yeah, I saw a lot of Thai AirAsia aircraft.
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Air Asia India has been operating for almost a Year not a few days ago.
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Sorry for my mistake. I meant years duh 😅
This is true indeed, there are a ridiculous amount of domestic flights within China. However, I’m sure AirAsia will be able to survive in a competitive market, such as the Chinese domestic market, considering they can operate inefficiently and make up losses through capital provided from profits in other markets.
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