Discount airline AirAsia, founded by Tony Fernandes, is gearing up to establish low-cost hubs in Bangkok and Kuala Lumpur with the aim of replicating the global connectivity success of Dubai. After facing significant challenges during the pandemic, the airline is now looking to bounce back and expand its operations.
Fernandes envisions these hubs in Bangkok and Kuala Lumpur as key connecting points for passengers traveling to various destinations served by AirAsia and its long-haul arm, AirAsia X. Unlike premium hubs like those in Singapore and Dubai, these hubs will focus on providing low-cost flight options, targeting flights that are between an hour and a half and six hours long.
Despite the setbacks faced during the pandemic, including debt restructuring, layoffs, and fleet reductions, AirAsia is optimistic about the future. The airline’s parent company, Capital A Bhd, has shifted its focus from listing via a blank-check firm to merging with AirAsia X Bhd and making strategic financial adjustments to position itself for growth.
Fernandes is confident that the aviation industry will see a full recovery in the coming year, with 2026 potentially being a “golden year” for the sector. Changing travel trends, influenced by geopolitical factors, have worked in AirAsia’s favor, with more passengers opting for intra-Asia travel over long-haul flights to the US or Europe.
In a positive development, AirAsia has managed to rehire all 2,600 employees who were let go during the pandemic, bringing its total workforce to 23,000. In addition to facilitating connecting traffic through the new hubs, the airline plans to expand its reach by increasing flights to secondary cities and exploring new markets, such as its recent entry into the African continent.
As AirAsia looks to the future with renewed optimism, the establishment of low-cost hubs in Bangkok and Kuala Lumpur could potentially reshape the airline industry by offering affordable and efficient travel options for passengers across Asia and beyond.
