Tony Fernandes, the chief executive of the successful Malaysian based low cost airline AirAsia, plans standard return fares for routes between Europe and Malaysia at a discount of 50% to 60% below the lowest fares offered by existing carriers with the launch of a new venture, AirAsiaX.

This pioneering venture will be followed closely by the global network carriers who are fearful of the threat such start-ups could pose to their traditional businesses.

A recent announcement has confirmed the purchase of 10 Airbus A330-300 aircraft, with another 5 in the pipeline.

Fernandes said:

‘The acquisition of the A330 aircraft marks a very important milestone in our journey to become the worlds first and most successful long haul low cost airline.

‘We will strive to make Malaysia the worlds biggest low cost hub, and are confident the route network of AirAsia domestic, regional and long haul operations will complement each other to drive passenger traffic from both long haul and regional destinations into and from Malaysia.’

A spokesman for the company indicated that The A330s will allow a most cost effective operation due to the aircraft’s excellent operational and fuel efficiency capability.

AirAsia X has strong growth plans. The company aims to be profitable in its first year of operations while it would like to go public within five years.

The new airline is also seen as a test of whether the successful low-cost airline model can be profitable on long-haul flights.

The airline is expected to offer a single class product with many of the classic features of the established short-haul low cost carriers including food and drinks purchased on board, with the option of pre-ordering via the internet, and pay-for-use inflight entertainment.

The choice of aircraft will mean that services to Europe, which are expected to include London’s Stansted airport among the destinations, will require a stopover in the Middle East for refueling.

Submitted by John Kumm www.onlinetravelconsultant.com