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Air Asia owner announces budget long-haul airline – 11 Jan 2007

Malaysian start-up Air Asia X promises to bring budget fares to the long-haul market, following the example of Oasis Hong Kong Airlines which began flying between the UK and Hong Kong in November.

Regional aviation entrepreneur Tony Fernandes announced the carrier’s launch last Friday in a joint venture between his own booming no-frills airline Air Asia and smaller carrier Fly Asian Express, in which he holds a stake.

The airline will begin flying from Kuala Lumpur in July with two long-haul aircraft. Fernandes promised fares of between £41 and £231 return to the UK, although newspapers publicised a pledge to offer some single tickets at £1.50 plus tax.

Cabins will be one class, but may offer premium economy seats with extra legroom. Stansted and Manchester are in the running as UK departure points. However, the initial routes are likely to be within Asia.

 

Who’s behind it?

Tony Fernandes has profited in the rapidly expanding market in Southeast Asia. But Air Asia has drawn criticism for delays and other problems.

It launched in Malaysia in 2001 and began flying international routes three years ago, operating a fleet of 50 aircraft. By contrast, Fly Asian Express operates a small fleet of turboprop aircraft on obscure routes.

The new airline has the support of the Malaysian government, which aims to establish Kuala Lumpur as an airport to rival Singapore.

But analysts remain unconvinced that the low-cost model can be transferred to 14-hour intercontinental routes.

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