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AirAsia potentially growing in south and central Asia

South and Central Asia are potential growth areas for AirAsia.

According to Routes Online, AirAsia Group hopes to take advantage of the region’s expanding middle class by expanding both current and new services there as well as by snatching up part of the labor flow into and out of the area.

According to Karen Chan, Chief Commercial Officer of AirAsia Group, the parent company of AirAsia (AK, Kuala Lumpur International) was thinking of obtaining air operator’s certificates (AOCs) in a few markets in the area.

“Moreover, we are considering the Indian continent. With the size of their populations, there is a chance to take advantage of the rising middle class in both Pakistan and Bangladesh “She spoke. “The movement of labor is substantial. Can we get to the Middle East via the labor traffic coming into Bangladesh, leaving Bangladesh, leaving Pakistan, and leaving Nepal? Hence, we are considering there as a potential hub.”

In order to reduce its presence in India, Malaysia-based Capital A, which holds shares in several AirAsia brands throughout the region, recently sold Tata Sons its 16.33% investment in AirAsia India, now known as AIX Connect. AirAsia still operates a few flights from Kuala Lumpur to the subcontinent, though. Currently, none of the AirAsia Group’s airlines fly into Pakistan or Nepal.

Chan stated, “We are also exploring Central Asia. “We’ve been communicating with the Uzbeks and Kazakhs for a long time, and as a result of the ongoing crisis in Ukraine, 300,000 Russians are stranded in Kazakhstan. Where can Russia go now that Europe has barred them access? I believe there is a chance, although it might not present itself right away.”

As soon as China reopens, the group’s foreign capacity will be back to 60–65% of pre–pandemic levels, according to Chan. Because to high demand and favorable yields, AirAsia Group will concentrate more on foreign flights in the short to medium term. She continued, but not in the South and Central Asian markets, that 50 new routes will launch this year across the various AirAsia brands. Instead, Johor Bahru, Medan Kuala Namu, and Banda Aceh should expect a rise in AirAsia flight movements. The company also plans to promote Cebu as a hub.

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