Tony Fernandes, the CEO of Capital A, made a compelling case for repositioning Sultan Abdul Aziz Shah Airport, commonly known as Subang Airport, as a hub tailored for private jets and high-paying travelers. Speaking to reporters at a briefing on Capital A’s strategic directions in Sepang, Fernandes argued that the airport’s limited capacity and proximity to Kuala Lumpur’s city center make it an ideal candidate for a premium aviation niche rather than a mass-market operation. His remarks came shortly after Bursa Malaysia approved the company’s Practice Note 17 (PN17) plan, signaling a pivotal moment for Capital A as it charts its future amid evolving aviation dynamics in Malaysia.
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Fernandes highlighted the economic impracticality of maintaining Subang Airport as a base for AirAsia’s low-cost operations, noting its annual passenger capacity of just three million. This figure pales in comparison to the scale required for AirAsia’s ambitious expansion plans, which involve operating a fleet of 224 aircraft primarily from Kuala Lumpur International Airport’s Terminal 2 (KLIA2). He emphasized that Subang’s size restricts the airline from achieving the economies of scale necessary to sustain its low-cost model, citing the example of a single daily flight to Singapore as insufficient to justify continued operations there. Instead, Fernandes proposed transforming Subang into a “business airport,” drawing inspiration from London City Airport, which caters to corporate travelers and private aviation with its convenient location near the financial district. The shift in focus, according to Fernandes, aligns with a pragmatic business strategy. By concentrating AirAsia’s resources at KLIA2, the airline can optimize its engineering, marketing, and operational efficiency in one location. He argued that this move is not driven by sentiment—despite his affection for Subang—but by the need to prioritize what benefits the company most. AirAsia’s departure from Subang leaves behind a smaller cohort of operators, including FireFly, Batik Air Malaysia, Transnusa, and Scoot Pte Ltd, which continue to service the airport with jet operations. Fernandes’s vision, however, sees Subang catering to a different clientele: affluent travelers willing to pay a premium for convenience and exclusivity, such as those using private jets or seeking bespoke travel experiences.
This proposal dovetails with broader discussions about Subang Airport’s role in Malaysia’s aviation ecosystem. The Subang Airport Regeneration Plan (SARP), approved by the government in 2023, aims to revitalize the facility into a regional aviation hub with an eventual capacity of eight million passengers by 2030. Yet, Fernandes’ suggestion introduces a nuanced perspective, advocating for a specialized function rather than a broad expansion. He envisions Subang mirroring the operational model of premium city airports worldwide, where proximity to urban centers justifies higher costs for users who value time and accessibility over budget considerations.
Fernandes’ comments also reflect a strategic pivot for AirAsia as it navigates post-pandemic recovery and intensifying competition. By relinquishing Subang to focus on KLIA2, AirAsia can bolster its dominance in the low-cost segment while leaving room for Subang to carve out a distinct identity. On the same day, Capital A’s shares rose slightly by half a sen to 82.5 sen, valuing the group at RM3.57 billion—a modest uptick that suggests market confidence in the company’s direction. Whether Subang Airport will fully embrace Fernandes’s vision remains uncertain. Still, his proposal underscores a broader trend in aviation: the growing demand for tailored, high-value services in an industry often defined by mass accessibility.