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Air Asia will begin operating from a fourth national base this year after agreeing to buy into and rebrand a Vietnamese airline, even as the local affiliate of rival Jetstar struggles with a barrage of difficulties with the government in Hanoi.

The move strengthens Air Asia’s lead in Southeast Asia over Jetstar and Tiger Airways as the three Asia-Pacific, no-frills groups race to set up multinational franchise chains. For the first time, two of them will have franchised affiliates in the same country.

source: aviationweek.com

A battle for low-cost airline revenue in Asia intensified on Wednesday as Malaysia’s AirAsia and Jetstar, owned by Qantas Airways, finalised a passenger handling and aircraft maintenance deal they said would cut millions of dollars from annual costs.

The agreement signed by Jetstar and AirAsia stops short of equity participation, and will not involve code sharing – the revenue-generating arrangement under which airlines book passengers directly onto each other’s flights.

The deal also includes co-operation on airport passenger and ramp handling services, and reciprocal arrangements for switching passengers to available flights if one airline’s service is disrupted.

source: FT.com

AirAsia, the Malaysia-based low-cost airline, is considering setting up airports in several south-east Asian countries following its proposal to build its own airport near Kuala Lumpur.

Tony Fernandes, the Air Asia founder and chief executive, has discussed opening budget terminals in Thailand, Indonesia and Burma to support the carrier’s regional network in what would be a further business expansion for AirAsia, according to people familiar with the plans.

source: FT.com

European visitors are expected to flock to Southeast Asia next year as a low-cost airline starts flying from a London-based hub for European budget airlines to Kuala Lumpur in March.

AirAsia X started accepting bookings on Tuesday for its new direct flights between London Stansted and the Kuala Lumpur International Low-Cost Carrier Terminal.

source: BusinessWorld

AirAsia X announced its latest international route from Kuala Lumpur to Hangzhou, China. AirAsia X will be the first airline to service the route from Kuala Lumpur with five weekly services beginning 04-Feb-08. The latest service is the airline’s second long-haul destination after Gold Coast, Australia, which was launched in Nov-07.

source: Peanuts.aero

AirAsia X of Malaysia is taking a gamble on a barely tested business model by buying 25 brand new wide-bodied airplanes worth US$3.5 billion.

The carrier placed the bet on Nov 2 when it took off for its maiden flight from Kuala Lumpur International Airport to Gold Coast, Australia, that marked the beginning of Southeast Asia’s first long-distance budget carrier service.

AirAsia X took to the skies just 15 months after the idea of setting a long-haul no-frills service was first floated.

Industry critics are now watching to see whether long-haul no-frills flights will succeed in the market, as perceived by AirAsia X’s investors, including Virgin Group and AirAsia, the region’s largest low-cost carrier (LCC). Senior executives of AirAsia acknowledge that AirAsia X is indeed a gamble, albeit a calculated one with potential to win.

source: bangkokpost.com

AirAsia Bhd will today sign a letter of intent with Shipbuilding Industry Group with a view to establishing a joint venture low-cost airline in Vietnam.

AirAsia, in a filing with Bursa Malaysia, said the proposed partnership would focus on securing the licence to operate a new Vietnamese airline that would serve domestic, regional and international routes.

source: The Star Online

Air Asia X has said that it will announce its first Indian and Australian destination in the coming days, including the UK, Middle East, India and China.

Air Asia is an offshoot of Asia’s biggest low cost airline Air Asia.

source: luchtzak.be

British billionaire Richard Branson of Virgin Group is touted to be taking a stake in Malaysia’s new AirAsia long-haul budget airline.

Branson will take a 20 pct stake in Fly Asian Express (FAX), teaming up with Asia’s aviation tycoon Tony Fernandes to run flights from Malaysia to China, Europe and Australia, the newspaper reported, citing sources familiar with the negotiations.

source: Forbes

Malaysia’s home-grown budget carrier AirAsia Bhd plans to launch its first flight to India towards end of 2008 and its first destination is likely to be Amritsar in Punjab. “I am really limited by the planes and the earliest we can look at is the third quarter of 2008.

“I like Amritsar, many Sikhs have written to me but I need to know more about India. I only know about their music and cricket,” AirAsia chief executive officer Datuk Tony Fernandes told reporters after speaking at the one-day Low Cost Airline Symposium in Mumbai here Wednesday.

AirAisa X, the long haul budget carrier of AirAsia, is being prepared to do longer destinations and the huge Indian aviation market, growing at 38 percent annually, appears to be on the company’s route.

source: Daily Express