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AirAsia X confident long-haul routes will thrive

12 November 2007

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.


2 respuestas a “AirAsia X confident long-haul routes will thrive”

  1. PaulK dice:

    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.

  2. Jojo dice:

    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.