Interview with Senthil Balan

Richard Maslen March 31, 2010

The Hub caught up with the face behind Air Asia X's growing low-cost long-haul network, Senthil Balan, strategy and planning. The budget carrier took to the skies in 2007 linking the Gold Coast with Kuala Lumpur, and is looking to link up to 12 long-haul international points by the end of the year.

Where does your story begin at AirAsia X?

I joined AirAsia X during the start up, and literally walked into an empty office. Our mandate was to launch the airline within 6 months and it has been an exhilarating ride. Before AirAsia X, I was at Malaysia Airlines where I was part of their 'turnaround team' set up in 2004 to help turn around the financial position and performance of Malaysia Airlines.

What's day-to-day life like as a network planner?

As head of strategy, airports and planning, I juggle more than just doing network planning, which takes up roughly one quarter of my working day. I also take care of fleet management and scheduling, negotiate with airports/government to obtain the deals that will support our low fares, and engage governments on regulatory approvals and bilateral issues. I have also handled charters at one stage when we were short of staff - it's been a real mix and there has never been a dull day!

But with all the juggling, the downside is that I have lost some of my hair since joining AirAsia X but the upside is that I'm saving money on haircuts!!

Are there any other upsides?

I'm part of an amazing team who execute the long-haul low cost model. It's been an amazing journey. Some may say we are crazy, but I believe we have shown that the low-cost long-haul model can work, despite what some of the skeptics say.

How is AirAsia X's network planning process done?

Our route position is driven by subjective and objective factors - we look at so many factors (as many network planners can relate to). Many factors come into play in deciding on a route, but ultimately it's all about which route pairings can generate the economics to ensure the route is profitable.

Of course, we also look at which airports and tourism authorities give us the best deal to support our low fares! Ultimately, no matter which route is chosen, we are aware that the success of the route is determined by how well the airline executes both the commercial and operational strategies to realise the route potential.

One we launch a route, we make sure we don't wait for a passenger to fly a route...we like to go out and stimulate them to travel and create new market segments.

What have been your biggest biggest achievements?

Creating new segments of travellers to travel long-haul, who previously couldn't afford to do so. It was also a big achievement getting the airline up and running within 6 months. We are also proud that we are growing our network in a challenging economic environment.

How much has changed in 2 years?

I feel like I have aged 30 years in the last 2 years! On a more serious note, 2 years ago we were only flying into 2 cities with one plane and right now we fly into London and in every major Asia-Pacific destination...except Tokyo, Seoul and Sydney, which we are looking to expand into...with a few more aircraft.