AirAsia plans low-cost hubs in Bangkok and Kuala Lumpur

Well-known discount airline AirAsia is setting its sights on replicating the global connectivity success of Dubai but with a low-cost twist centred in Bangkok and Kuala Lumpur. After navigating the challenges posed by the Covid-19 pandemic, the airline is eager to expand its network and leave its tumultuous past during the pandemic behind.

Tony Fernandes, the founder of AirAsia, envisions using Bangkok and Kuala Lumpur airports as major hubs to funnel passengers to the various destinations serviced by AirAsia and its long-haul arm, AirAsia X. He highlighted that the airline’s strength lies in operating flights lasting between ninety minutes and six hours.

“What I’m trying to do, which will be the first time in the world, is to create a hub in Kuala Lumpur and Bangkok like Dubai and Qatar.

“Bangkok has kind of a hub, Singapore obviously has, but these are premium hubs. No one has really done a low-cost hub.”

The pandemic severely impacted AirAsia, compelling the airline to restructure debts, lay off staff, and return some aircraft to lessors. In response to these challenges, the airline’s parent company, Capital A Bhd, opted to merge with AirAsia X Bhd instead of pursuing a listing via a blank-check firm.

This decision is part of a broader strategy to reduce its share capital by US$1.4 billion to eliminate the financial distress classification by the Malaysian stock exchange.

Fernandes predicts a full recovery by next year and is optimistic that 2026 will mark a golden year for the industry. Geopolitical factors have worked in AirAsia’s favour, as more travellers opt for destinations within Asia rather than the United States or Europe.

“We had five years of hell. But we’re back and we’re looking to grow.”

The airline has rehired all 2,600 employees who were laid off during the pandemic and now boasts a workforce of 23,000.

In addition to enhancing connecting traffic through the anticipated hubs in Bangkok and Kuala Lumpur, Fernandes aims to expand by increasing traffic to secondary cities. He cited the potential for flights from Chiang Mai to China as an example.

Demonstrating its growth ambitions, AirAsia X recently launched its first service to the African continent, indicating the airline’s intent to pursue growth opportunities beyond Asia, reported Bangkok Post.