SEPANG (June 3): Low cost carrier AirAsia Bhd is in talks with Malaysia Airline Bhd (MAS) with regards to a possible collaboration on reducing cost and jobs creation between the two airlines, according AirAsia Group chief executive officer Tan Sri Tony Fernandes.

However, he declined to reveal more details, citing the talks are still in early stages.

"This is the first time in 15 years that MAS and Khazanah Nasional Bhd are focused in making the airline profitable. It is good for the airline industry and both airline companies can make money.

"We are excited about that. It is good that transparency is being put up (prioritised) by Khazanah and MAS," he told reporters after chairing the company's annual general meeting (AGM).

When he was asked whether the collaboration is maintenance, repair and operations (MRO), Tony did not specify. 

"If two of us can make regional power house in Malaysia in MRO, that is great. Doesn't it make sense? We need to send our planes somewhere for maintenance, why not keep it in Malaysia and do it in MAS.

"To grow our volume, we can offer third parties airlines around the world then Malaysia will grow bigger and bigger in MRO sector.

"I do not want to talk in early days, lets see how the discussions go," he added.

Meanwhile, AirAsia Bhd chief executive officer Aireen Omar urged Malaysia Airports Holdings Bhd (MAHB) to improve the check-in system at the airports under their management to help airline companies to reduce their operating cost.

According to her, regional airports operators have come to them and offered them help.

Citing self bag drop and bag tagging system, she hoped this system can be implemented here as well.

On how AirAsia is going to pare down its operating cost and foreign exchange losses, Tony said this is the question, the government should look into it.

"I think the Ringgit is undervalued. But forex is not a critical issue to (the company) yet as we hedge 50% of our fleet in Ringgit," he added.

"The low oil price more than compensate for the forex losses," he said.

Going forward, Tony said AirAsia will position itself as a technology driven airline company to reduce their cost.

By doing so, he said it would also make it easier for passengers to check in using self bag drop and mobile boarding passes.