Friday 29 Mar 2024
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KUALA LUMPUR (Aug 8): AirAsia Bhd group chief executive officer Tan Sri Tony Fernandes said stable crude oil prices at between US$40 and US$50 a barrel had eliminated the airline industry's volatility.

In an interview with New York-based Cheddar, Fernandes said it was not so much about low oil prices but the stability, which had eliminated the volatility element for cost.

"The best thing about oil is not the price, yes it is a good price… what is the best for me in 16 years is a stable oil price, we are now in this band of US$40 to US$50 per barrel [and] the volatility of the airline business has been taken out.

"One of the major costs of our business has been oil but it has been so volatile so when investors begin to see that (US$40 to US$50 per barrel) as a stable oil price this becomes a very good business," Fernandes said.

For AirAsia, Fernandes said oil price stability had led to a consistent cost structure, which had helped him make decisions for the airline.

"We've got to be the lowest cost and the lowest fare," he said.

 

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