Bangkok--8 Jan--Centre for Asia Pacific Aviation
The founders of regional low cost standard-bearer, AirAsia, have committed to the launch of a long-haul franchise, AirAsia X. In an announcement that had been widely anticipated, AirAsia on 05-Jan-07 presented its plans to launch a long-haul operation, using the iconic Malaysian LCC’s brand. AirAsia X intends to commence operations from Kuala Lumpur to three destinations, one in Europe and two in China, in Jul-07, with services to other destinations in India, Australia and elsewhere to follow.
CEO, Tony Fernandes, says the carrier will start operations with three aircraft, will have five in operation by the end of its first year of service, and will reach its full size of 20 units by the end of year four. The airline will be owned and operated by Fly Asian Xpress (FAX), the company established by AirAsia founders Tony Fernandes, Kamarudin bin Meranun and Raja Mohd Azmi to operate the Government-subsidised routes between the country’s smaller cities that were vacated by restructuring flag carrier, Malaysia Airlines.
Meanwhile, IATA predicts Asia Pacific carriers would see profits plummet from around USD1.7 billion in 2006 to USD1.2 billion this year, due to "increased competition in the region as a result of liberalisation, aircraft deliveries and new entrants”. The revision came before the AirAsia X announcement.