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Air Asia uses Shenzhen to expand coverage

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Air Asia, the region's dominant low-cost airline, will begin flying to Shenzhen early next year as the company looks to capture more of south China's budget travel market, including Hong Kong.

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Chief executive Tony Fernandes said he would start flights to Shenzhen Baoan International Airport from Bangkok and Kuala Lumpur as soon as he had enough aircraft.

The mainland airport is about 30km northwest of Hong Kong.

'Macau has been a great inroad for Guangzhou, but it hasn't really worked for Hong Kong. Shenzhen, however, is not cornered by the sea,' Mr Fernandes said.

Air Asia, which may soon announce a more than 75 per cent increase in full-year net profit, is seeking to attract more passengers from Hong Kong after starting flights from Macau in June 2004 when talks with the Airport Authority Hong Kong broke down.

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'We haven't really had the budget to promote the Macau alternative in Hong Kong. I don't think there is awareness there, yet,' Mr Fernandes said.

The carrier gets half its business from the Guangzhou catchment area neighbouring Hong Kong, Macau and Shenzhen with six flights a day.

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