Flying Cheap

SINGAPORE, Nov 10, 2006 (AFP) - Costs, not competition, worry Tony Fernandes of AirAsia Bhd, who said Friday he foresees continued expansion for the Malaysian-based lowcost pioneer. "The only thing that we worry about is our cost," said Fernandes, the airline's group chief executive.
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"There can be a hundred low cost carriers out there. It doesn't really matter as long as we have the lowest cost in the world...

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then we will have the lowest fares and there's a huge market out there which we are after," he said at the Aviation Outlook conference.

AirAsia began operation as a budget carrier in December 2001 with just two aircraft.

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It now offers more than 100 domestic and international flights to Malaysia, Thailand, Indonesia, Singapore, Cambodia, Vietnam and the Philippines.
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The carrier's budget concept has since been imitated by numerous other carriers in Southeast Asia and India.

But Fernandes said the region-wide network built by AirAsia has given it a headstart on competitors.

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He added that sticking to the basics of keeping costs as low as possible in order to sell the market's lowest-priced air tickets has been key to the carrier's success.

Fernandes said A

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