AirAsia parent makes bigger commitment to Thailand

Capital A, the parent company of AirAsia, is planning new aircraft maintenance, repair and overhaul (MRO) facilities worth $100 million in Thailand, scheduled to start construction in 2025.3
ADE, one of the company’s affiliates, is considering investing in an MRO hangar at several airport locations, including U-tapao, Don Mueang, Suvarnabhumi and Chiang Mai, Capital A chief executive Tony Fernandes said at the Forbes Global CEO Conference in Bangkok this week.
This facility will have a capacity of 10 lines, equivalent to accommodating 10 aircraft, he said.
Mr Fernandes said ADE had just developed a new MRO hangar at Kuala Lumpur airport with a capacity of 14 lines, in addition to its two-line hangar in Johor Bahru.
In Kuala Lumpur, the company is planning to add four more lines worth $30 million, for a total capacity of 20 aircraft in Malaysia.
These projects will support the vision of making Thailand, Malaysia and Southeast Asia the world’s low-cost aviation hub, he said.
Mr Fernandes said there is high potential for US and European carriers to send their planes to the ADE facilities, as the company can provide services at a lower cost and faster pace.
“If we can provide the maintenance faster, then you have more days to fly your planes. That’s the key,” he said.
Mr Fernandes said the facilities would serve only narrow-body aircraft, which includes AirAsia’s main fleet of Airbus A320 and A321 jets as well as the Boeing 737 series.
Other services from ADE include aviation component support and aviation digital services. ADE’s total investment budget is $300 million.
He also said AirAsia plans to introduce a carbon fee initiative for all of its airlines, including Thai AirAsia, by June next year.
This policy should not affectpassenger travel sentiment, as it costs just 10 baht per flight hour, said Mr Fernandes.
With seven airlines under its wings, AirAsia now operates more than 250 aircraft.
The company has secured a firm order for new Airbus A321LR and A321XLR planes over the next few years, aiming to enter the African and Central Asian markets in the future.
Mr Fernandes said Thai airports should collaborate more with airlines to make the country a low-cost aviation hub.
Governments should also incentivise Southeast Asian companies to invest more in the region to drive the economy, he added.