Copying and distributing are prohibited without permission of the publisher
X marks the spot
01 November 2007
The launch of long-haul, low-cost airline AirAsia X will be a testing time for the region's other carriers. Ritesh Gupta reports.
Read more:
AirAsia X
Air Asia
Virgin Group
low cost airline
The low-cost model in Asia faces one of its biggest tests as AirAsia X prepares for an inaugural flight in early November. The launch of the long-haul, low-cost airline will be an important chapter in the region's aviation industry.
The advent of this breed of airline has been questioned from a viability perspective since its plans were revealed earlier this year. AirAsia X, an affiliate of AirAsia and Virgin Group, will fly from Kuala Lumpur to destinations of more than four hours away.
The carrier's short-haul version, AirAsia, also encountered scepticism when it was launched, but after five years, its balance sheet is among the most liquid of any airline, with cash balance and aircraft deposits amounting to RM913 million ($122 million). For the year ending June 2007, the airline had revenues of RM1.6 billion, an increase of 52% from the year before.
AirAsia X will fly its first...
Access to this content is denied because you are not logged in. Please login to view this content
Already have an account?
Subscribe
Subscribers have unlimited access to all current and archive content. Start your
subscription today - click on the button below.
Free trial
Taking a free trial will give you access to the current issue for two weeks (excluding
some surveys and articles). Start your free trial today.
