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Air Asia's Tony Fernandes: 'Competition is good'

8 August 2012 Last updated at 07:39 BST

While many airlines are worried about earnings and expenses, budget carrier Air Asia is looking to expand. It wants to acquire a stake in Indonesian airline Batavia Air for $80m.

However, the bid could be scuppered by a recent rise in nationalist sentiment in Indonesia.

The BBC's Karishma Vaswani caught up with the head of Air Asia, Tony Fernandes, while he was in Jakarta and asked him about the bid.