He said Thailand might miss out on what he saw as a "budget-airline boom" in Asia if it failed to proceed with facilities for low-cost operators, either at Suvarnabhumi Airport as originally proposed by Thai AirAsia or at the old Don Muang Airport.

The Bt600-million project was put on hold after Prime Minister Thaksin Shinawatra was ousted.

Since then, the proposal has stalled amid concerns about expenses and the urgings of low-cost operators that they be allowed to return to Don Muang, where they enjoyed lower costs.

Fernandes was commenting after having signed yet another deal with European plane-maker Airbus for an additional 50 Airbus A320s, with an option on 50 more, giving AirAsia a potential fleet of 200 aircraft.

The budget-airline market has also moved to a different playing field with the recent launch of AirAsia X, which plans to operate a new low-cost model for long-haul travel. It will begin operations in July from the low-cost terminal at Kuala Lumpur Airport, serving destinations that are more than four hours' flying time from that city.

It will offer daily services to popular destinations in China, India and Europe and tie up with low-cost partners at destinations.

Oasis Hong Kong Airlines claims to operate the first long-haul, no-frill flights between London and Hong Kong, starting at HK$6,600 (Bt30,400) one way.

Fernandes said that the launch of AirAsia X, operated by Fly Asian Express (FAX), would change the way passengers travelled long distances, because it would provide greater options and affordability. FAX operates as a separate legal entity and has a separate management team, but Fernandes owns 10 per cent and Kamarudin Meranun, FAX's non-executive chairman, 50 per cent. Both carriers will enhance the feed of passengers into each other's operations and ensure that passengers enjoy a seamless experience when flying with both carriers.

Fernandes, who is director and founder of AirAsia X and CEO of AirAsia, said the new low-cost long-haul carrier hoped to fast-track Malaysia into becoming a global low-cost travel hub. The new airline was officially launched by Malaysian Transport Minister Chan Kong Choy at a ceremony also attended by Malaysia Tourism Minister Adnan Tengku Mansor.

While AirAsia plans to boost its short-haul services with the new A320s, it will jump-start its long-haul flights with a fleet of either twin-aisle Boeing 777-300ERs or Airbus 330-300s, now under consideration.

Fernandes said AirAsia planned to become the region's No-1 or No-2 airline by 2013, with a projected 54 million passengers. This year, it expects to double its number of passengers to 18 million.

Although having recently denied that his group would form any alliance with other global budget operators, such as Virgin Airlines and EasyJet, Fernandes does not rule out the possibility.

At the launch of AirAsia X, its chief executive, Raja Azmi, said the airline was determined to be the first in the world to succeed with the low-cost long-haul business model. "Customers can expect unbelievably low fares for their long-haul travel, due to the significant cost-saving opportunities within the business model," he said.

Fernandes pointed out that Thailand's neighbours were gearing up for a low-cost "revolution" in air travel. Four new airports for low-cost operators are to be build in Indonesia; two more in the Philippines, for a total of three; and there is talk of a low-cost terminal in Vietnam.

He said a separate low-cost terminal in Bangkok, such as in London's Luton and Stansted airports, would negatively affect no one, free up more space at the airport and result in less congestion.

Ki Nan Tsui

The Nation