Air Asia ready to spread its wings

Southeast Asia’s largest budget airline is continuing to spread its expansion with the purchase of 175 fuel-efficient A320 Airbuses at a cost about 10.5 billion. Air Asia has already acquired 50 planes from Air bus. Tony Fernandes, the Malaysia Company’s chief executive, said buying more aircraft was essential for the airline if it was going to meet the growing number of air routes and the increased liberalization of air links through out the region.

Air Asia recently gained permission of fly the lucrative Kuala Lumpur- Singapore route. Fernandes believes the A320’s vaunted fuel efficiency will help the company cope with the current high fuel prices. The air line reported a year-on- year profit increase of 15% in the third quarter of 2007, well before the traditional holiday period.