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AirAsia X

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AirAsia X
File:Aax.png
IATA ICAO Call sign
D7 XAX XANADU
Founded2007
HubsKuala Lumpur International Airport
Fleet size5 (+33 Orders)
Destinations8
HeadquartersKuala Lumpur, Malaysia
Key peopleTony Fernandes, Sir Richard Branson, Azran Osman Rani
Websitehttp://www.airasia.com

AirAsia X, is a long haul budget airline operated by AirAsia X Sdn. Bhd. (previously known as FlyAsianXpress Sdn. Bhd.) [1]. Its first service commenced on 2 November 2007 to Gold Coast, Australia from its base Kuala Lumpur, Malaysia.

AirAsia X franchises the brand name of AirAsia, Asia's largest low cost carrier, which uses a common ticketing website, livery, uniforms, and management style with AirAsia.[2]

AirAsia X is also affiliated with Virgin Group[3] and Air Canada.

History

On 17 May 2007, Tony Fernandes announced plans to commence flights from Malaysia to Australia. Fernandes has said he will be avoiding Sydney Airport due to its high fees, instead concentrating on cheaper alternatives such as Melbourne's Avalon Airport, Newcastle and Adelaide. Sustained fares were predicted to be around MYR 800 (AUD 285) return plus taxes.[4] Interest was also expressed of Gold Coast as another Australian destination.[5]

Several major developments were announced on 10 August 2007. AirAsia X announced its first route from Kuala Lumpur to the Gold Coast. One way fares for this route have been touted to begin at MYR 50 (AUD 17) excluding taxes and charges, with average return prices to be approximately MYR 1,800 (AUD 598), inclusive of taxes and charges.[6]

The airline also announced that Sir Richard Branson of the Virgin Group will take a 20% share in the airline to help kick-start its long haul operations and to finance aircraft purchases. [7][8] Branson also forecast a strong possibility of formal links between Virgin Blue and AirAsia X in the future, such as codesharing and frequent flyer programme.[9][10]

The first AirAsia X aircraft, arrived at KL International Airport, Kuala Lumpur, Malaysia on the 15 September 2007, is named "Semangat Sir Freddie" (English: "Spirit of Sir Freddie") after the pioneer and founder of the low cost model, the late Sir Freddie Laker of Skytrain in Europe. [11]

Current CEO of AirAsia X is Azran Osman Rani.

FlyAsianXpress

FlyAsianXpress (FAX) was an airline based in Miri, Sarawak, Malaysia. It operated services on some of the smaller routes dropped by national carrier Malaysia Airlines. Its routes has been taken over by MASwings as FAX concentrates on AirAsia X.

FAX was privately owned by Kamarudin Meranun, Raja Razali,Raja Azmi and Tony Fernandes. The airline was subcontracted by AirAsia to operate several domestic services following the withdrawal of Malaysia Airlines from Rural Air Service routes within East Malaysia. Its maiden flight was on 1 August 2006, despite being delayed for 50 minutes by bad weather[12]. FAX was not a low cost carrier[13] but it incorporated some of AirAsia’s practices in order to reduce cost namely, internet and phone booking, as well as ticketless check-in system.

Within days of operation it was subject to a flood of criticisms from commuters, civil servants, and people working in the tourism industry, with critics arguing that the new turboprop service provided by FAX should not be more expensive than the Rural Air Service previously operated by Malaysia Airlines, given that FAX is subsidised by the Malaysian government. As well as this, poor services such as sudden flight cancellation without notice has also frustrated passengers [14]. The CEO of Sarawak Tourism Board also stated that disruptions to cargo supply flights to the interior caused tourists to [15] take their own food rations, rather than rely upon the air cargo supplies of food and fuel [16]. Recently FAX has released a new flight timetable citing the sudden need for heavy maintenance on its Fokker 50 fleet as the trigger for severe disruptions to its schedules.

On 11 April 2007, Chief Executive Officer of AirAsia, the parent company of FAX, Tony Fernandes disclosed the offer to the public on the hand over of FAX's rural routes to Firefly, the subsidiary airline of Malaysia Airlines. He described it as "the logical thing to do" as Firefly can be the only national company operating turbo-prop aircraft.[17] On 26 April 2007, the government has announced for Malaysia Airlines to take over the operation of rural air services from FAX and gave assurance that any loss will be bore by government. [18] Malaysia Airlines announced to take over FlyAsianXpress destinations beginning 1 August 2007 through a new subsidiary, MASwings.

FlyAsianXpress and AirAsia X

With FlyAsianXpress rural air services replaced with MASwings, the corporate name is changed from FlyAsianXpress Sdn. Bhd. to AirAsia X Sdn. Bhd.[19]

Shareholders

The entrance of two new major investors has given the company more financial aids for the expansion plan.

As of 14 February 2008, AirAsia X is 48%-owned by Aero Ventures (a venture of Tony Fernandes and other prominent Malaysians and Air Canada's Robert Milton), followed by 16% Virgin Group and 16%-owned by AirAsia. Bahrain-based Manara Consortium and Japan-based Orix Corp have taken a total 20 percent stake in long haul low-cost carrier AirAsia X Sdn Bhd for RM250 million.[20]

Destinations

An AirAsia X Airbus A330-300 taxies at Melbourne Airport
AirAsia X Airbus A340-300 approaching London Stansted Airport

AirAsia X announced Gold Coast, Australia as its first destination.[21], and commenced four direct return flights per week between Gold Coast Airport and Low Cost Carrier Terminal (LCCT), Kuala Lumpur beginning on 2 November 2007. The inaugural flight carried a total of approximately 300 guests, in the 312-seat Airbus A330-300 aircraft (276 economy seats and 36 premium XL seats), which arrived in September 2007. One-way fares were as low as RM50 excluding fees, RM342 including fees. The airline has since extended its Australian network to cover Perth and Melbourne (Tullamarine).

AirAsia X's second destination was Hangzhou, China, with the first flight on February 4, 2008.[22] Flights to Tianjin were added in March 2009, with Xi’an, Nanjing, Chengdu and Chongqing planned later in the year.[23][24] Flights to Taipei began on July 1, 2009 starting with 5x weekly.[25] Daily flight to Taipei will start on 19th Oct, 2009. AirAsia X will launch new flight to Chengdu begins in 20 October starting with 4x weekly, tickets will release in 26 Aug.[26]

AirAsia X's first European destination was London Stansted Airport, with the inaugural flight on March 11, 2009.[27] The route is now increased to 7x weekly.[28] AirAsia X's first Middle East's destination is Abu Dhabi with the inaugural flight on 23 November.[29]

Future expansion

AirAsia X has also secured rights to land in Korea and West Asia.[34] Future expansion of the airline is planned to include destinations in India (Bangalore, Trivandrum, Chennai, Cochin[35] New Delhi, Mumbai and Amritsar), the Middle East and Europe.[36] The Malaysian government has reportedly given AirAsia X rights to 36 international destinations.[36]

As of 11 January 2009 , AirAsia X plans to commence flights to 3 destinations (Hokkaido, Osaka & Fukuoka) by the end of 2009. [37]

Concerning an article in the Straitstimes from 12 February 2009, AirAsia X wants to lease up to 5 A340-300 and plan to fly to new markets like Germany, France and New Zealand.[38]

There is also much interest as of 29 June 2009 for routes to the USA, in particular California, New York, and Hawai'i.[39][40].

“It (the United States) is a market that we’re very keen on,” Fernandes told a press conference to announce its sponsorship of the Raiders, an American Football Team.

[39]

The route to New York is likely to go via Stockholm or Stansted from Kuala Lumpur.[41]

On 28 July 2009, AirAsia X has been denied permission by the Malaysian government to fly into Sydney and Seoul, due to a row over its sister carrier AirAsia. The government first wanted AirAsia to settle its dispute with Malaysia Airports Holdings Bhd(MAHB) before granting AirAsia X the approval to these routes.[42]

Air Asia X is planning to setup a "virtual hub" in the Middle East, potentially in Abu Dhabi.[43][44] This new hub will focus on cities in Europe, Africa and the Middle East.[45] This comes as AirAsia X fears that the new Low-Cost Carrier Terminal might not be ready by 2011 as there is no sign of any construction work or even groundbreaking of the new LCCT. The existing LCCT will not be able to cope as there won't be enough parking bays as AirAsia X is poised to take delivery of 12 more A330 by 2011. If the fear were true, it would be another blow to AirAsia and AirAsia X expansion plans. This comes just days after the Malaysian government denied AirAsia X the rights to fly into Sydney and Seoul.[46] There is also discussion of destinations in Spain, Turkey, Morocco, and Czech Republic from the planned Abu Dubai hub.[47] The airline's CEO announced that Abu Dhabi will become AirAsia X's Middle East hub[44]. Potential destinations from Abu Dhabi include Frankfurt, Cairo and Nairobi.[48]

There are also plans to fly to Xi'an, Wuhan and Shenyang in China. They have also applied to fly to New York.[45]

Future Destination Country
Bangalore India
Trivandrum India
Chennai India
Cochin India
New Delhi India
Mumbai India
Amritsar India
Hokkaido Japan
Osaka Japan
Fukuoka Japan
Stockholm Sweden
New York United States of America
Sydney (potentially) Australia
Abu Dubai United Arab Emirates
Cairo Egypt
Nairobi Kenya
Frankfurt Germany
Xi'an China
Wuhan China
Shenyang China
Spain
Turkey
Morocco
France
New Zealand
Czech Republic
South Korea

Fleet

The AirAsia X fleet consists of the following aircraft as of 18 February 2009:

AirAsia X Fleet
Aircraft In fleet Orders Options Passengers
(XL/Economy) 		Routes Notes
Airbus A330-300 3 23 0 312 (36/276)
383 (28/355) 		Asia, Oceania One leased from AWAS
All (except leased aircraft) are 9 abreast in economy & fitted with IFE
Airbus A340-300 2 0 0 286 (30/256) Europe, Oceania Leased from Orix Aviation
Airbus A350-900 0 10 5 > 400 (-/-) Europe, Oceania Entry in service 2016[49]
Total 5 33 5

On 14 May 2007, AirAsia confirmed that it had ordered 15 Airbus A330-300 aircraft, 5 more than originally announced. The aircraft are scheduled for delivery from the fourth quarter of 2008.[50] On 27 March 2008, AirAsia signed a firm contract for another 10 Airbus A330-300s bringing the airline's total order to 25. [51] AirAsia X received its first A330 on October 31, 2008 in Toulouse, France.[52]

References

  1. ^ AirAsia gets FIC nod for RCPS subscription
  2. ^ "X-citing deal for air travellers". The Star. 2007-01-06.The Airline will be operating "incredibly" cheap prices to and from Asia to the East Coast of Australia
  3. ^ "AirAsia X en route". smh.com. 2007-09-18.
  4. ^ "Cut-price airlines landing like flies". Sydney Morning Herald. 2007-05-18.
  5. ^ "Jetstar terminates Melbourne-Hawaii route". 2007-08-08.
  6. ^ "Fly from Australia to Malaysia for $A31".
  7. ^ "AirAsia to fly to Victoria, Queensland". News Limited. 2007-08-10.
  8. ^ "Branson to take 20 per cent stake in AirAsia". The Age. 2007-08-07.
  9. ^ Daniel Breen. "Billionaire Branson and AirAsia X move into Avalon". The Geelong Advertiser.
  10. ^ "Aussies offered $31 flights to Malaysia". Herald Sun.
  11. ^ Welcome to AirAsia.com...now everyone can fly
  12. ^ "A smooth debut for FAX". Daily Express. Kota Kinabalu. 2006-08-02.
  13. ^ "About FAX, FAX Told". FlyAsianXpress.com.
  14. ^ "Commuters express disappointment over rural air services offered by FAX". Borneo Bulletin. 2006-08-11.
  15. ^ Bario
  16. ^ "Be Sensitive To Rural People's Needs, FAX Told". Bernama. 2006-08-25.
  17. ^ FAX: Let Firefly take over
  18. ^ Rural services back to MAS
  19. ^ The Brunei Times
  20. ^ "AirAsia X Chooses Manara & Orix As New Investors". 2008-02-14.
  21. ^ "AFly-from-Australia-to-Malaysia-for-A31". The Age. 2007-08-10.
  22. ^ http://www.airasia.com.my/site/sg/en/pressRelease.jsp?id=acca0f1c-7f000010-285d1400-44a6449b
  23. ^ a b http://thestar.com.my/news/story.asp?file=/2009/1/21/nation/3076535&sec=nation
  24. ^ http://thestar.com.my/news/story.asp?file=/2009/1/26/nation/3118813&sec=nation
  25. ^ a b http://www.airasia.com/site/my/en/promotion.jsp?reference=tpe2009
  26. ^ http://www.airasia.com/site/my/en/promotion.jsp?reference=rr059
  27. ^ http://www.abtn.co.uk/press-releases/inaugural-airasia-flight-makes-hisotry-press-release
  28. ^ http://www.bernama.com/bernama/v5/newsbusiness.php?id=395628
  29. ^ http://www.airasia.com/site/my/en/promotion.jsp?reference=rr056
  30. ^ http://www.airasia.com/site/my/en/promotion.jsp?reference=rr059
  31. ^ AirAsia website
  32. ^ [1]
  33. ^ http://biz.thestar.com.my/news/story.asp?file=/2008/11/4/business/2449118&sec=business
  34. ^ "Virgin Group Takes 20 Pct Stake In AirAsia X". Bernama.
  35. ^ http://www.mysinchew.com/node/26796
  36. ^ a b "AirAsia X to order up to 15 A330-300". Luchtzak.be. 2007-04-24. Cite error: The named reference "Luchtzak.be" was defined multiple times with different content (see the help page).
  37. ^ "AirAsia X plans flights to Japan this year". Sydney Morning Herald.
  38. ^ http://www.straitstimes.com/Breaking%2BNews/Money/Story/STIStory_337516.html
  39. ^ a b http://biz.thestar.com.my/news/story.asp?file=/2009/6/27/business/4207026&sec=business
  40. ^ http://www.abs-cbnnews.com/business/06/28/09/airasia-inks-deal-sports-team-amid-negotiations-us-route
  41. ^ http://www.bernama.com.my/bernama/v3/news_lite.php?id=424183
  42. ^ http://biz.thestar.com.my/news/story.asp?file=/2009/7/28/business/4362667&sec=business
  43. ^ http://biz.thestar.com.my/news/story.asp?file=/2009/7/29/business/4408930&sec=business
  44. ^ a b http://www.channelnewsasia.com/stories/corporatenews/view/446087/1/.html
  45. ^ a b http://biz.thestar.com.my/news/story.asp?file=/2009/7/30/business/4415816&sec=business
  46. ^ http://www.btimes.com.my/Current_News/BTIMES/articles/azrasia/Article/
  47. ^ http://news.holidayhypermarket.co.uk/New-Hub-Will-Expand-AirAsia-X%E2%80%99s-Network-in-Middle-East-47314413941.html
  48. ^ http://www.khaleejtimes.com/biz/inside.asp?xfile=/data/business/2009/August/business_August97.xml&section=business
  49. ^ http://www.airbus.com/en/presscentre/pressreleases/pressreleases_items/09_06_16_a350xwb_airasiax.html
  50. ^ AirAsia confirms 15 Airbus A330-300 deal
  51. ^ AirAsia X Orders 10 Additional Airbus A330 Aircraft
  52. ^ Yvonne Tan (2008-11-01). "AirAsia X takes delivery of first Airbus A330". The Star.
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