Hong Kong Protests Hurting Shenzhen and Macau Too, AirAsia Says

(Bloomberg) -- Macau and Shenzhen are feeling the impact of protests in Hong Kong as demand for flights to both places is falling, according to Tony Fernandes, the founder of low-cost carrier AirAsia Group Bhd.

“It is bad,” Fernandes said in a Friday interview at AirAsia’s headquarters near Kuala Lumpur. He said many travelers look to visit the three places in one trip.

Malaysia issued an advisory at the end of last week warning citizens from non-essential travel to affected parts of Hong Kong after an escalation in protests led to transport disruptions and the closing of schools. Tourist numbers to the city have slumped, hurting businesses from retailers to airlines, including flag carrier Cathay Pacific Airways Ltd.

Hong Kong isn’t the only headwind. The U.S. Federal Aviation Administration last week banned Malaysian carriers from adding new U.S. routes, a setback for long-haul arm AirAsia X Bhd. as it planned flights to the country’s west coast. The airline keeps its flight to Honolulu via Osaka, making it the only Malaysian carrier to fly to the U.S.

AirAsia could still expand to the U.S. through non-Malaysian units, Fernandes told reporters Friday. “Uncle Tony has many ways of getting to the U.S.,” he said.

AirAsia switched part of an order from Airbus SE in August, opting for 30 of the new extra-long-range A321XLR jets and paring back a plan to buy 100 twin-aisle A330 neo planes. Fernandes said he wouldn’t convert the order to larger A350s to boost capacity on some busier routes.

--With assistance from Harry Suhartono.

To contact the reporter on this story: Yantoultra Ngui in Kuala Lumpur at yngui@bloomberg.net

To contact the editors responsible for this story: Young-Sam Cho at ycho2@bloomberg.net, ;Yudith Ho at yho35@bloomberg.net, Will Davies

©2019 Bloomberg L.P.