"We're in Asia, probably the best part of the world however way you want to measure it right now. We've got 3 billion people [there] – that's 10 times the size of Europe and there is just so much demand. Just in December, AirAsia had a passenger load factor (the occupancy rate of an aircraft) of 91 percent."
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Fernandes believed the long-haul unit of the group, AirAsia X, was the key to "connecting Asia" and would be an equivalent of the Dubai-based Emirates airline. "Asia is more than a 4-hour market and I'm very keen on connecting that market. I'm really creating an Emirates within Asia so you can move anywhere within Asia on AirAsia and AirAsia X."
The move could be seen as a risky one with price instability in Asia and increased competition facing the group but Fernandes was confident.
"I started this airline with two planes against Malaysian Airlines' 130 planes. We're now the largest airline…prices are not an issue provided you have a cost structure that can deal with those prices," he said, adding that he had a "very simple strategy" to reduce costs as much as possible.
"Whatever fares are, cost is king," he remarked. "The lowest cost produces the lowest fares and the lowest fares gives us tremendous demand and makes it very hard to compete with us."
"We're the lowest cost airline in the world and we're going to take out another 7.5 percent [of costs this year] and we already took out 5 percent [of costs] out last year...Let's not make no bones about it, you'd invest in AirAsia because we're the lowest cost airline and the lowest cost will always win."
- By CNBC's Holly Ellyatt, follow her on Twitter
Investors may have fallen out of love with Asia's largest budget airline, but the founder and chief executive of AirAsia told CNBC the indicators are there for its share price to recover.