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Tokyo.
AirAsia has chosen Jakarta to be its regional headquarters in an effort to be
seen as a Southeast Asian airline rather than just a Malaysian one.
The
region’s largest low-cost airline plans to open its base in the capital at
South Jakarta’s Equity Building in October, group chief executive Tony
Fernandes told the Jakarta Globe on Thursday.
It plans to
take advantage of easy access to the Asean secretariat in advance of the “open
skies” agreement that will go into effect in 2015.
That
agreement will lower barriers for air travel between the region’s capitals.
Asked why
he chose to move the fast-growing airline’s principal corporate base to Jakarta
from Kuala Lumpur, Fernandes said: “Asean is based in Jakarta, and Indonesia
will be the largest economy in Asean in times to come … And I like it there.”
Fernandes,
who is Malaysian, said he had already bought a home in Jakarta within walking
distance of the new office. “I don’t like the Jakarta traffic,” he said.
The Equity
Building is in the Sudirman Central Business District, near the Indonesia Stock
Exchange (IDX). According to aviation experts, AirAsia’s relocation to Jakarta
highlights the country’s growing importance in the region’s aviation sector.
“This will
be great for our aviation industry,” said Dudi Sudibyo, an aviation industry
analyst in Jakarta. “This will push us to be better.”
To match
AirAsia’s ambitious strategy, the Indonesian government will have to continue
to improve infrastructure to accommodate more passengers flying into and around
the country, said Bambang Ervan, a Transportation Ministry spokesman.
“This is
very positive, we welcome AirAsia’s plan,” he said. “It shows that AirAsia, one
of the world leaders in the aviation industry, has confidence in Indonesia’s
strong growth.”
The
Indonesia National Air Carriers Association (Inaca) forecasts passenger growth
at 10 percent to 15 percent this year.
Central
Statistics Agency (BPS) data showed that air traffic in Indonesia grew 22 percent
to 53.4 million passengers in 2010 on the back of demand from the middle class
for domestic flights.
That is
higher than the 9 percent average increase recorded by Asia-Pacific carriers,
according to data from the International Air Transport Association.
“Indonesia
is among very few countries that managed to record strong growth in air traffic
last year,” Bambang said. “The lack of available airlines compared to
population and geographic conditions is only a sign that there’s a lot of
opportunity here.”
Fernandes
was in Tokyo for the announcement of AirAsia Japan, a new joint venture with
Japan’s largest carrier, the ANA Group, to launch Japan’s second budget airline
next year.
He
confirmed his airline’s recent order for 300 Airbus A320neos. The deal,
originally for 200 planes, was increased with an option for 100 more. It was
the largest single aircraft order until Wednesday, when American Airlines
ordered 460 Airbus and Boeing aircraft in a $38 billion deal.
Fernandes
played down concerns raised by some analysts about the possible debt
implications of such a deal, saying the company was cash rich, with a turnover
of more than $4 billion last year, and operated as a group with a profit margin
of about 20 percent.
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