Tawau to be AirAsia’s newest hub

KOTA KINABALU (Oct 4): AirAsia is expanding its operations in Sabah by growing its Kota Kinabalu hub and establishing Tawau as its newest hub in line with plans to introduce more direct international flights to North Asia.

AirAsia’s Deputy Group CEO (Airline Operations) Datuk Captain Chester Voo briefed Minister of Tourism, Culture and Environment Datuk Christina Liew on the airline’s growth plans for 2025 during a courtesy call yesterday.

“Sabah has always been one of our most popular destinations within our network. We are confident that Tawau will be a strategic new hub to provide more direct connectivity, potentially to Shanghai, Guangzhou and Taipei, among others. Through our existing Fly-Thru services, we are also committed to strengthening Sabah’s connectivity with other international destinations across Asia, Australia and beyond.

“The Sabah government has stood by us in our growth journey, and as the state continues to advance its economic aspirations, we look forward to partnering with local businesses and communities to support meaningful and sustainable development. We are here for you (Sabah),” he said.

Enlightening the minister on AirAsia’s current network and presence in Sabah as of October 2024, Voo highlighted that the airline operates 370 weekly flights to the state, with over 77% serving domestic routes. Of the 34 existing routes, 15 are domestic and the rest international.

“AirAsia plans to cater for a capacity of 5.71 million passengers in 2024, with plans to expand this to 7.87 million in 2025, reflecting a 38% increase. As of 31 September, 2024, AirAsia carried a total of 4.61 million passengers this year,” he said.

In this regard, Voo emphasised the importance of fostering strong partnerships with all stakeholders, including airport authorities. Adequate infrastructure and optimal cost structures at the Tawau Airport and Kota Kinabalu International Airport (KKIA) are crucial to support AirAsia’s expansion plan, he added.

In response, Liew assured AirAsia that she would present the airline’s case to the State Government for its consideration once the ministry has received AirAsia’s formal proposal(s) for support.

With regard to the issue of congestion at the Tawau Airport, she recalled that she had been briefed by Malaysian Airports Holdings Berhad (MAHB) on the airport’s modernisation and optimisation plans in 2018 and 2023, respectively.

“Last year, I was informed that upgrading works would start this year but I have yet to see light at the end of the tunnel,” Liew lamented.

Meanwhile, Santan’s CEO Catherine Goh briefed the minister on the role and success of Santan as a food service provider.

Santan, which began as AirAsia’s inflight catering provider, has significantly expanded its operations beyond the skies. While continuing to be a leading inflight food service provider for AirAsia Group and other airlines, Santan has diversified its offerings to include ready-to-eat (RTE) meals available at convenience stores and chains, as well as office catering solutions.

“We aim to establish Santan as a key player in Kota Kinabalu, making it a true Sabah success story by supplying Santan meals to airlines and beyond. We see tremendous potential in sourcing more local ingredients from Sabah for our products. Additionally, we are exploring opportunities to introduce Sabah’s unique offerings to Peninsula, and ultimately, the world. We aim to be a pivotal force in the food supply chain, driving innovation and growth while making a substantial and lasting contribution to Sabah’s economy.

“We have the ability to feature Sabah’s products – directly sourced from fishermen and farmers on AirAsia Grocer which serves as a platform to expand their marketability and reach. This will reduce the need and reliance on middle people, and allow Santan to help the producers directly. We are keen to collaborate with the State Government to introduce Santan to fresh producers and retailers in Sabah,” Goh elaborated.

Also present were the Ministry’s Permanent Secretary Josie Lai, Sabah Tourism Board (STB) CEO Julinus Jimit Jeffery, AirAsia Head of Commercial, Nur Liyana Mahizzan, Chief Global Policy & Government Relations, Lim Boon Seong, and Director of Government Relations, Zamani Mohd Rafique.