AirAsia seems to have a small set of goals, or as some will call new years in a series of tweets.
The Malaysian-based low cost carrier group has no plans to open any new airline in the next three years, focusing on its planned local carrier launch in Vietnam. In a Twitter post, AirAsia Group CEO Tony Fernandes stated: "After Vietnam, we will focus on what we have," Fernandes said in a twitter post. "Focus this year is to make Indonesia and Philippines very profitable."
In addition to the focus on the current subsidiaries, Fernandes also expressed optimism about the carriers’ operations in India and Japan saying he was “confident of India and Japan being profitable in 2021.”
The groups’ new venture in Vietnam is expected to launch in the fall of 2019 as part of a joint venture with Vietnam-based Thien Minh Travel Joint Stock (TMG) and Hai Au Aviation Joint Stock Co (HAA). The local subsidiary is the third attempt of AirAsia to open a domestic-based operation in one of Asia’s fastest growing aviation markets.
In the Philippines, AirAsia’s local subsidiary – Philippines AirAsia – has stepped up its operations with the addition of new domestic and international routes from key hubs such as Manila and Cebu. The airline is also looking to develop new hubs within the country such as Palawan, Bohol, and the Clark Airport in Pampanga.
Despite the end of commercial operations of long-haul arm Indonesia AirAsia X, Indonesia AirAsia has been able to take a good portion of the lucrative travel market of Indonesia. Indonesia AirAsia has been reported to be in discussions with Garuda Indonesia for joint operations within the country.
However, the price of fuel will determine whether the operations in the Philippines and Indonesia will be profitable in the year. In the third quarter of 2018, AirAsia reported profits were halved as a result of rising fuel costs, rising 50.1 percent over the quarter to $95 per barrel.