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Air Asia to go ahead with London-Malaysia launch

Published: 29/07/2008 - Filed under: News »

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Record fuel prices will not scupper plans to launch budget flights from London to Malaysia, Air Asia’s boss has pledged.

Kuala Lumpur-based Air Asia revealed plans to sell flights from Stansted to the Malaysian capital under the Air Asia X brand earlier this year, aiming at business as well as leisure travellers.

A Christmas launch was targeted, but Tony Fernandes, Air Asia founder and group chief executive, said problems sourcing a suitable aircraft had led to a slight delay.

“The earliest will now be next March and the latest, June. We were hoping to start in November or December,” he said. A team is currently in final talks at Stansted. “We are 90 per cent there,” said Fernandes.

Air Asia X has sourced an Airbus A340-300 on which it will carry 386 passengers, including 58 in a premium economy cabin. This will have inclined flatbed seats with a 50-inch pitch.

Economy fares were originally set to be around £300 return, but Fernandes admitted the oil price meant this was now more likely to be about £350.

Air Asia X plans to price its premium economy section against Malaysia Airlines’ full fare economy ticket. Passengers in both classes will have to pay for food.

Air Asia believes it can risk launching the London service despite the economic uncertainty. Unlike Oasis Hong Kong Airlines, which collapsed earlier this year, Air Asia has been operating for seven years and already carries 22 million passengers – 7 million more than Malaysia Airlines. Air Asia X already flies to China and Australia from Kuala Lumpur.

“I have taken the view that one of the best times to expand is during a period of flux,” said Fernandes.

Air Asia X, in which Sir Richard Branson owns a 20 per cent stake, is bringing its sponsorship of Manchester United to an end and will instead use the Virgin connection to publicise its UK launch next year.

Its parent company is also targeting business travellers by expanding on trunk routes between Kuala Lumpur, Hong Kong, Bangkok and Singapore.

It flies seven times a day to Bangkok and hopes to expand its Kuala Lumpur-Singapore service from two to eight a day when an open skies deal comes into force in December.

“Our target is 15 times a day, there is a huge market,” Fernandes said.

For more information visit airasia.com.

Report by Gary Noakes

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