Revolutionary AirAsia chief asks SL to open up to opportunity

By Nizla Naizer

The man who revolutionized the budget airline industry in Asia, AirAsia Group CEO Tony Fernandes has emphasised that Sri Lanka must open up to change and new opportunity in order to reap the benefits of development.
“I am impressed by the warmth and the hospitality of the people in Sri Lanka,” the Malaysian entrepreneur said at the celebration of successful AirAsia flights from Colombo to Kuala Lampur, at the Cinnamon Grand yesterday, “But you must be realistic and practical at a time like this.”
He said that although he intends to set up his own domestic AirAsia flight within Sri Lanka, the costs faced by carriers in Sri Lanka was still too high.
“We are a low cost carrier, carrying budget travellers. They do not need marble floors and aerobridges, just a basic terminal that we can land our planes in, and where the turn around will not take more than 25 minutes,” he informed. “Until these basic facilities are given to us low cost carriers, flying into Sri Lanka is still seen as expensive.”
Proactive authorities
Calling on the authorities to take a different view on air travel, he said that the President’s target of 2.5 million tourists is a plausible figure as long as the passengers he brings into the country can find accommodation at affordable prices. “If all the hotels in Colombo are five star hotels, our travellers will find it hard to visit the country.”
He informed that the authorities in Sri Lanka have thus far been proactive, and he was due to meet Airport and Aviation Services Limited Chairman Prasanna Wickremasuriya to discuss AirAsia’s future plans here in Sri Lanka. “Sri Lanka still has the one of the highest airport taxes in the region, and the highest ground support costs in the world. Ideally, we would prefer to have our own ground staff and run a low cost operation but that is where the support of the authorities comes in.”
AirAsia which commenced flights from Colombo to Kuala Lampur on August 15 has already had 40000 bookings within two months. Fernandes said that most flights have been completely booked till April 2010, and that the passengers arriving in Sri Lanka were from a diverse range of countries. “From Serbia, Turkey, Japan to Australia, many of my passengers were coming to Sri Lanka for the first time and there was one man who was visiting his home country Sri Lanka after 27 years, because finally airfare is affordable. The opportunities are endless and we intend to start another flight from KL and one from Bangkok to Colombo.”

Message to Mihin?
AirAsia which began with 2 aircrafts and 20000 passengers in 2001, now has 82 aircraft and flies with 24 million passengers across the world. It was also adjudged the world’s best low cost airline by Skytrax for 2009.
When asked how Sri Lanka’s low cost carrier Mihin Air which has been incurring losses since its inception could turn into a profitable venture, he said that AirAsia’s focus on great people, focussed and disciplined growth, structured branding and low costs ensured that the airline captured a market and stayed successful.
“In the last two quarters we have grown by 23% and we intend to reach a 20% growth target for the year,” he declared. “The focus should be on lowering costs.” He concluded that depending on the continuous success of AirAsia in Sri Lanka he intends to have as much as 5 flights a day to the country.
Speaking at the event, Malaysian High Commissioner Rosli Ismail said that AirAsia’s entry to Sri Lanka will change the face of Sri Lankan tourism with greater connectivity within the two regions. Sri Lanka Tourism Promotion Bureau Chairman Bernard Goonetilleke added that the Government must prevent regulations that hinder growth in tourism and prevents investment from flowing into the country. “If we accomplish our target of 30% growth year an year, we will be able to reach the target of 2.5 million tourists by 2016 earning revenue of USD 2.5-3 billion.”
In his message, Ports and Aviation Minister Chamal Rajapaksa said that quick, reliable and affordable transportation is becoming a necessity as Sri Lanka develops in its post war era, and that AirAsia fulfills this need by increasing accessibility and connectivity to the country.

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