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SINGAPORE, Nov 1 (Reuters) - Malaysian budget airline AirAsia (AIRA.KL: Quote, Profile, Research) plans to exercise 25 out of its 50 options to buy Airbus A320s in anticipation more regional routes will be opened to competition in 2009, its chief executive said on Thursday.
AirAsia also intends to raise its number of options for the single-aisle A320, made by European planemaker Airbus (EAD.PA: Quote, Profile, Research), back to 50 by acquiring another 25 options, its CEO Tony Fernandes said.
Speaking on the sidelines of an aviation conference in Singapore, Fernandes said he was confident the 10-member Association of Southeast Nations (ASEAN) will meet its deadline to reach an open skies agreement by December 2008.
"ASEAN has seen the benefits of liberalisation," Fernandes told reporters. "National airlines have realised they can't hold onto protection forever," he added.
Citing Malaysia as an example, he said national carrier Malaysian Airline System (MASM.KL: Quote, Profile, Research) had become profitable despite competition from AirAsia. "When MAS was a protected airline, they lost lots of money," he said.
AirAsia also intends to raise its number of options for the single-aisle A320, made by European planemaker Airbus (EAD.PA: Quote, Profile, Research), back to 50 by acquiring another 25 options, its CEO Tony Fernandes said.
Speaking on the sidelines of an aviation conference in Singapore, Fernandes said he was confident the 10-member Association of Southeast Nations (ASEAN) will meet its deadline to reach an open skies agreement by December 2008.
"ASEAN has seen the benefits of liberalisation," Fernandes told reporters. "National airlines have realised they can't hold onto protection forever," he added.
Citing Malaysia as an example, he said national carrier Malaysian Airline System (MASM.KL: Quote, Profile, Research) had become profitable despite competition from AirAsia. "When MAS was a protected airline, they lost lots of money," he said.