AirAsia X confident long-haul routes will thrive
12 November 2007AirAsia 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
13 November of 2007 at 07:16
If AirAsia X reflects the same attitudes toward their customers as AirAsia, they are in for an awakening. AirAsia is notorious for not paying refunds in a timely manner, after canceling your flight. They don’t bother to email their passengers when they cancel, either.
14 November of 2007 at 09:46
I don’t see how AirAsia X can claim to be the first long haul low cost carrier when Oasis and Jetstar have both been offering long haul low cost services for around a year.