Low cost carrier AirAsia plans to open a Gulf hub this year and extend its flight network with a focus on destinations in Eastern Europe. The company’s CEO, Tony Fernandes, said he has held talks with government officials from Gulf states at the recent Paris Air Show about setting up a regional hub. AirAsia has not decided which Gulf airport it will call home, but it has been expanding its connectivity to the region in recent years. Last month, it announced it would add new routes, connecting Kuala Lumpur to Riyadh and Dammam, as well as increasing services to Jeddah.
As part of the new strategy, Mr. Fernandes said AirAsia plans to use its upcoming Middle Eastern hub to launch services to cities across Eastern Europe, as well as secondary destinations in Western Europe such as Cologne, Manchester, Glasgow, and Dublin. With a strong emphasis on Eastern Europe, destinations in the former Yugoslavia present a potential opportunity for AirAsia’s expansion from the Gulf. Currently, Sarajevo is the best-connected city in the region to Gulf states, offering seventy weekly scheduled flights this summer. It is followed by Belgrade with 25 weekly services and Zagreb with fourteen. Ljubljana, Dubrovnik, and Tivat also maintain scheduled operations to the Gulf region.
AirAsia has a history of engagement with markets in the former Yugoslavia. In September 2012, the airline submitted a proposal to the Serbian government for the takeover of national carrier Jat Airways. The offer included a complete fleet renewal featuring two A330s, eight A319s, and twelve A320s, along with the launch of long-haul services to Kuala Lumpur, Bangkok, the United States, and Canada. The proposal also envisioned the overhaul of Belgrade Airport’s Terminal 1 and the construction of an airport hotel. Despite being signed personally by Mr. Fernandes, the government never formally responded. It is believed that the state was already in advanced negotiations with Etihad Airways at the time, which went on to acquire a 49% stake in Jat the following year. That same year, AirAsia also expressed interest in acquiring a 49% stake in B&H Airlines after Turkish Airlines withdrew from the partnership. In 2020, AirAsia X, the group’s long-haul unit, planned to launch regular charter services between Bangkok and Zagreb, but the route was never realized due to the outbreak of the coronavirus pandemic.
It would be funny if they opened a base in Any Dhabi
ReplyDeleteFunny = Great
DeleteBecause of Wizz closure there. But in all honestly, that would have more potential and succsess there than some of the other places being speculated.
DeleteAirAsia has been expanding like crazy since covid ended, but I never thought it'd be possible we'd be seeing their jets here in ExYu
ReplyDeleteI was under the impression that they were really impcated by Covid. For some reason I thought they even ended long haul flights.
DeleteThey struggled financially more than most during covid and in the adtermath but they pulled through it.
DeleteWe haven't seen their jets in ex-yu, we may potentially see them ... someday.
DeleteTrue dat.
DeleteIt will probably be in Saui Arabia.
ReplyDeleteThey said Saudi Arabia or in Ras Al Khaimah
DeleteVery restrictive bilaterals of SA with most countries. And also with Riyad Air taking off and Saudia already established the last thing they want is a foreign LCC depressing their already low margins.
DeleteThey said they are in duscissions with 4 cities but that one in Saudi and Ras Al Kaimah are front runners.
DeleteMeh, if it is Saudi they are limiting their options a lot.
DeletePoint is, everyone need visa/evisa for KSA. It they dont completly remove transit visa it wont work. Transit visa is free, but you have to provide it.
DeleteWhy are airlines so obssessed with Saudi Arabia lately?
DeleteMoney
DeleteMBS finally got onto throne and he's jelous of UAE dudes, now wants to make KSA look like something which it isnt. and he is ready to rain money on most idiotic ideas..
Delete^ +1000
DeleteIf it ends up being Saudi Arabia, I don't think we will see many or any routes to ex-Yu.
ReplyDeleteWhy? The region is underserved from Saudi. Only SJJ has flights.
Delete^ And soon PRN.
Delete^ I'm still very sceptical that PRN will work.
DeleteWe will find out soon enough
DeleteJeddah to any destination with a large Muslim population almost always works
Delete"Currently, Sarajevo is the best-connected city in the region to Gulf states, offering seventy weekly scheduled flights this summer."
ReplyDeleteWOW!
Impressive
DeleteThe problem is that in winter it is close to 0
DeleteIf Sarajevo can support 70 weekly flights to the Gulf, there’s clearly demand. AirAsia should seriously consider it as a launch market.
DeleteDefinitely, it would also keep prices for India, Maldives, Sri Lanka and SE Asia trips offered by tour agencies low, they mainly used AUH flights to keep costs low.
DeleteI really hope so
DeleteVery interesting
ReplyDeleteHopefully something comes out of its for this region.
ReplyDeleteIn the end, ex-Yu will probably be completely ignored, like almost every time.
DeleteWas unaware they had such indirect involvment in ex-Yu.
ReplyDeleteSame
DeleteSeems this region has been on Mr Tony Fernandes' radar for some time.
Deleteif anyone can pull it off, it’s Fernandes.
DeleteEastern Europe is a smart move. Plenty of demand, little competition and a growing appetite for travel especially from the diaspora.
ReplyDeletef they’re looking at destinations like Cologne and Dublin no reason they couldn’t succeed in Zagreb or Ljubljana too.
ReplyDelete*if
Deleteyou seriously compare Cologne to Zagreb or Dublin to Ljubljana?
Deletefairytales are on 2nd floor dude.
Brah, Zagreb and Ljubljana can hold their own against Cologne and Dublin.
DeleteAirAsia has the fleet and the brand. If they pick the right Gulf hub and get the pricing right they’ll be a serious player.
ReplyDeleteWould love to see AirAsia make its way to ex-Yu. The region desperately needs more affordable options.
ReplyDeleteNow imagine if governments were proactive in the region and offered AirAsia an AOC. They could do wonders for local aviation industry.
ReplyDeleteSerbia and Croatia won't create extra competition for airlines they are already financing. As for the rest, it could have been done but AirAsia isn't coming for free. They will likely get money and big discounts on airport use, if at all they will have to pay feed for the first couple of years.
DeleteI would be more excited if they announced they were looking into Eastern Europe from their southeast Asia hubs.
ReplyDeleteZagreb was so close to getting Bangkok charters just before COVID. Would be amazing if AirAsia finally followed through.
DeleteI think Dubrovnik is in desparate need of more flights to the Gulf other than Flydubai. Not saying Air Asia is the answer but since DBV has been overlooked by other it's an option.
ReplyDelete+1
DeleteQR planned flights from Doha in 2020. They even started sales. But then covid happened.
DeleteBut it has been years from covid. Why didn't QR resume sales?
DeleteThey have a severe narrow body fleet shortage. They have barely launched any new routes in the last few years.
DeleteDubrovnik has Dubai. Someone from that region should come to Split.
DeleteLast year DBV announced flights to Saudi Arabia but it never happened.
DeleteIf they plan to launch this year, I'm assuming they will be making an annoouncment on their network soon?
ReplyDeleteYes
DeleteLet’s see where they place the hub first.
ReplyDeleteThis was unexpected. Hoping for some route in ex-Yu.
ReplyDeleteThey should start with Sarajevo or Belgrade and expand from there. Both cities have good Gulf links and less LCC saturation.
DeleteTivat is an underrated opportunity. The Gulf crowd already loves Montenegro. AirAsia could tap into that easily.
ReplyDeleteGiven the tourism boom in Albania, I wouldn’t be surprised if Tirana is also on their radar.
DeleteEastern Europe in general is still an untapped goldmine
DeleteThis is actually excellent because I'm certain they will offer conncetions onto their logn haul flights to Asia.So it would make long haul travel much cheaper.
ReplyDeleteThe Balkans could really use more eastbound connectivity that doesn’t go through Dubai or Doha
ReplyDeleteDon't they offer 9 across seating on A330?
ReplyDeleteThey do
DeleteThat must be fun....
DeleteThey also offer infant free space for rows 7-14
DeleteJat deal from 2012 sounds wild in hindsight.
ReplyDeleteWould be intresting to have seen how that turned out.
DeleteWonder if they planned for JU to be an LCC.
DeleteJudgong by the T1 refurbshment plan, yes.
DeleteIf that 2012 Air Asia/JAT deal went through, at least we would have Toronto service as they were specific about it, unlike constant Toronto avoidance that has been evident with current Air Serbia organization.
Delete@13.38 That is not necesserily the case. T1 was owned by JU. That's why they had it in their plan.
Delete@14.25
DeleteAnd you think everything would have turned out the way they said? In 2014 Hogan announced Toronto flights too.
@15:00 True, but Vucic overturned that decision:
DeleteAleksandar Vučić said Etihad Airways CEO James Hogan has confirmed plans for the Serbian carrier to operate flights to Chicago and Toronto in 2016 with an Airbus A330 aircraft. However, Mr. Vučić added he is pushing for transatlantic flights to be launched late next year, in particular to New York
https://www.exyuaviation.com/2013/12/the-transatlantic-race.html
They will probably launch a bunch of cities in Russia, simmilar as Fly Dubai.
ReplyDeleteThat's where the monet and demand is at the moment. most LCCs from the Gulf have launched or exapnded in Russia since the war.
DeleteYou mean money?
Delete@10.26 no of course he meant claude
DeleteWhich destinations in Eastern Europe could be launched?
ReplyDeleteMaybe a good partner for Slovenia?
ReplyDeleteHighly doubt AirAsia fits into Fraports business model.
DeleteWould be amazing. Anyone would be a good partner for Slovenia.
DeleteMaybe a good partner for Slovenia?
ReplyDeleteWell, my pick is Manama...I'd love to see Air Asia amazing fleet on our airports, and if someone has a vision, then it's Tony Fernandez...Off course Air Asia would bring a whole new range of options for South, South-East Asia and South China....
ReplyDelete"Now everyone can fly"
Why do you always write 'off' course?
Delete+1
DeleteBahrain, Oman or Kuwait
ReplyDeleteThree most logical candidates.
On a A321XLR
DeleteOh yess
I wonder if B&H Airlines would still be w thing if they took over, or even someone else.
ReplyDeleteAnd if they dont fly to Belgrade we can at least say that we are no more Eastern Europe ..
ReplyDeleteAs a former employee of the AirAsia group (network planning), don't get your hopes too high. Tony is the guy who loves to talk a lot with no proper actions.
ReplyDeleteThe core Malaysia market has plateaued, the Thai market is doing strong but demand to China has collapsed. No growth is planned for the Indonesian and Phillippines subsidiaries. India and Japan subsidiaries closed. I doubt their venture in the Gulf would work
If anything, the most feasible option is for Thai Airasia to launch services to Europe direct from Bangkok using A330neos
Thanks for the insight! Where would you guess this base in the Gulf will be?
Delete