These are among the 20 long haul routes being launched by Norwegian in summer and are the first long haul low cost routes to be operated with new generation narrowbody airraft. Already, CEO Azran has signalled his intention for long—haul AirAsia X operations alongside the short—haul joint—venture operating at the Japanese hub — with flights across the Pacific in prospect.
AirAsia-AirAsia X merger becomes more pressing However, the introduction of Aneos at AirAsia X does have a downside in that operating two types of aircraft adds cost and complexity.
Driving ancilliaries AirAsia X sees driving improvements in ancillary revenue as a natural hedge to the decline in yields as it pursues price—sensitive traffic volumes. With true long haul routes the cost cap between and low cost and full service operators narrow as fuel becomes a larger share of the total cost.
Scoot weekly departures by scheduled flight time: After a retrenchment earlier in the decade and with costs now firmly under control, the airline is on a growth trajectory again. However, to be able to replicate the multi—hub strategies of the short—haul AirAsia counterpart, the longhaul operation has to perfect its own operating model.
ULCCs have succeeded at stimulating demand and unlock new growth in markets that are relatively mature.
The idea is to create a symbiotic relationship whereby both feed traffic across the short—haul and long—haul networks and share approach in promotions and marketing.
The original AirAsia Japan was established in August and launched operations the following year but struggled in what was a competitive marketplace.
The hybrid model has gained momentum over the last several years — not just in Asia but globally. However, Malaysia AirAsia X will also likely operate the new type by the end of NokScoot is also intending to use s to launch flights from Bangkok to Fukuokawhich is a longer route at slightly over five hours but also within range of high density s.
Both routes are slightly less than four hours, putting them very comfortably within the range of the NokScoot currently operates five two class seat and is leasing two second hand seat all economy s from 4Q The airline is not afraid of introducing complexity in its business model as long as it can generate revenue out of it or it can do it at a much lower cost compared to its competitors.
Although the process has begun, the AirAsia X IPO listing is not expected until as the airline is awaiting the finalisation of the proposed Khazanah purchase. AirAsia X initially launched services to London in early This is a logical move as it will enable AirAsia X to more efficiently serve several of its existing routes.
Having seen the emergence of the low-cost carrier model in other parts of the world, Fernandes believed a discount operation would revolutionise air travel across Southeast Asia.
Singapore-London will also be the longest LCC flight historically. NokScoot has discovered the is too large for several of its existing routes, particularly during off peak periods.
Scoot competition In neighbouring Singapore, it was announced that Singapore Airlines are going to start a long—haul no frills, low fare subsidiary called Scoot in the middle of next year, which would be run and managed independently from its parent.
The group also plans to use the new Aneo fleet to launch new flights from Japan to the continental US. However, Indonesia AirAsia X currently only operates two aircraft, has been struggling and is planning to suspend scheduled operations for the second time.
AirAsia X had the distinction of the longest low cost route until earlywhen it dropped services from Kuala Lumpur to London Gatwick and Paris. Timing, as always, is key, to the success of the IPO and market conditions are clouded by global economic uncertainty.
Established four years ago, it carried 1. Long haul markets have also become very competitive, making it difficult for a new LCC entrant to offer prices that are significantly lower enough than full service airlines to stimulate demand without sacrificing profitability. Malaysia AirAsia X weekly departing frequencies based on length of flight: However, several Asian LCC groups will take advantage of the game changing economics to introduce new long haul narrowbody routes.
A multi-brand strategy enables airlines airline groups to have a wide range of solutions to different segments of the market and best respond to a global marketplace that is becoming increasingly competitive and crowded. The long haul low cost space has clearly become an area of increasing attention.
Seating up to passengers in a single class layout, the Aneo will enable the airline to increase capacity versus its current A fleet while benefitting from the lower operating costs.
However, as it stands, one of its priority destinations, Sydney, has still not been awarded by the Malaysian authority after three years of protracted negotiations.
Norwegian is planning more rapid long haul expansion in as several more s and MAX 8s are delivered. And the Air Asia Group is profiting from the evolution having grown from a small Malaysian airline to a group that encompasses operations from India, Indonesia, Malaysia, Philippines and Thailand through joint ventures with local business partners.
A statement from AirAsia at the time suggested that issues with the business were deeply rooted in the business model.AirAsia X was initially known as Fly Asian Xpress (FAX) when it started operations inservicing rural areas of Sarawak and Sabah with turboprop aircraft, before rebranding was done in September and its first flight was launched to Gold Coast in November Today, AirAsia X operates out of three hubs, Kuala Lumpur, Bangkok and Denpasar, Bali.
We investigate the rise of the low-cost airline group and how it is tweaking its strategy to support growth in new markets and the maturity of its existing network.
AirAsia looks at new market opportunities. AirAsia is also in it for the long-haul. Alongside its narrowbody operations AirAsia is also growing its medium- and long-haul.
AirAsia X is the only long–haul LCC currently flying the European–Asia Pacific corridor. In August AirAsia and MAS, Malaysia’s national carrier, announced a partnership called the ‘Comprehensive Collaboration Framework’, whereby a share swap deal was agreed between Tune Air, the owner of AirAsia, and Khazanah Nasional, the government backed investment arm owner of MAS.
Air asia x can the low cost model go long haul low cost aviation and create the first global multi-hub low-cost carrier network along with other carriers of the Air Asia group. – Mission statement: To be the best company to work for whereby employees are treated as part of a big family Create a globally recognized ASEAN brand To attain.
Home > Commercial Aviation > Profits Elusive For Asia’s Long-Haul LCCs. This multi-hub approach is a core element of AirAsia group strategy, Osman-Rani says. See maps of the long-haul. AirAsia X announces new CFO. Share this story. Whatsapp. By NST Business SEPANG: AirAsia X Berhad, the leading low-cost, long-haul carrier today announced the appointment of Wong Mee Yen as Chief Financial Officer of AirAsia X Berhad, with effect from 1st January Commenting on the appointment, Group CEO of AirAsia X Datuk.Download