Indonesia AirAsia (QZ, Jakarta Soekarno-Hatta) plans to increase its fleet from the present 25 aircraft to 100 by 2031 and is exploring various funding sources, both from the public through the stock exchange and banking institutions, to underwrite this, journalists were told at a September 5 media briefing in Jakarta.
The fleet increase is one of several strategies Capital A CEO Tony Fernandes said would strengthen the low-cost carrier's market position over the remainder of the decade, which also includes bedding down its joint partnership with Garuda Indonesia Group, owner of Garuda Indonesia and Citilink, and building a hangar to support an MRO business in the country.
According to the ch-aviation fleets module, Indonesia AirAsia operates thirty-two A320-200s. However, eight of those are AOG. It flies to 23 airports in Indonesia, Malaysia, Singapore, Thailand, Australia, Brunei, and Cambodia.
Fernandes also travelled to the managed media event with a series of proposals he wished to convey to the Indonesian government, including a call to reduce taxes and duties on fuel, ticket sales, and aircraft parts.
"The price of jet fuel in Indonesia is the highest in ASEAN, approximately 28% higher than in neighbouring countries," he said, calling the taxes on fuel and tickets a "double tax." He said resolving that and eliminating import duties for aircraft spares would "significantly reduce" Indonesia AirAsia's operating costs and result in lower ticket prices for passengers, which in turn would stimulate demand and have overall benefits for the Indonesian economy.
"Tourists, industry, spare parts, all are taxed," he said, "even though we have been talking to the Ministry of Finance for several years to remove the import tax on spare parts."
Fernandes also says the airline needs to raise around USD80 million to fund the additional aircraft. He said USD50 million would be procured through the capital markets and the remaining USD30-40 million sourced via bank financing. However, he could not provide details on the precise fundraising mechanisms, saying his bankers were still ironing out the details.
