He said it is good for AirAsia and MAS to serve their respective markets (low cost and premium) and while there is bound to be some overlap, too much of it will lead to ineffectiveness.
Speaking on the current scenario between AirAsia, AirAsia X and MAS, he said the overlap is "a larger one than it should be".
"For example, not everyone wants a three-star hotel and a lot of people are prepared to pay for a five-star hotel. A premium passenger wouldn't want to fly a low cost carrier," he said, adding that both (premium and low cost) airlines should be profitable and should grow from the restructuring exercise.
With the restructuring, he said Malaysia would have a healthy aviation industry and less taxpayers' money is required to support elements of the aviation industry.
"It's not just about AirAsia and AirAsia X benefiting. All of us should benefit by rationalising the industry and focusing on each others' strength. Obviously, MAS is premium and we're low cost," said Fernandes.
He said AirAsia is ready to take in MAS employees in view of the restructuring that will see about 6,000 jobs being cut in the national carrier.
"AirAsia's success is down to MAS employees. Almost 50% of our staff have been ex-MAS employees.
"AirAsia and AirAsia X are growing so of course we would (accept MAS employees). We'd do our best to absorb as many as possible. We've been (taking in MAS staff) anyway," said Fernandes.
Meanwhile yesterday, AirAsia BIG announced that it is partnering Petronas' Mesra loyalty programme to allow cross selling of products between the two.
Mesra's 3.6 million members can now earn BIG points and redeem free AirAsia flights by converting their Mesra points to BIG points, while BIG members, which number around 10 million, can also now convert their points to Mesra points.