AirAsia, a long haul Malaysian budget airline to be launched by local carrier Fly Asian Xpress, has placed a 15 plane order worth up to US$2.63 billion with European plane manufacturer Airbus. The new airline plans to launch flights to the UK - to either Manchester or Stansted Airport - next year.
Tony Fernandes, the owner of one of Asia's largest and most profitable budget airline, AirAsia, announced the plans yesterday. Mr. Fernandes also owns 10 percent of Fly Asian Xpress.
Fly Asian Xpress, a new airline set up to operate Malaysian Airlines' domestic routes after AirAsia took them over last year, has ordered 10 A330-300s and took options for another 5, Fernandes said. He predicted that the airline will need 25 planes within five years and said that it may pick the same model. Fly Asian Xpress will pay for the planes with bank loans.
The new low-cost long haul airline had planned to use the AirAsiaX brand for its long-haul flights, though will now drop the 'X,' Fernandes said. He predicted that it will carry 10 million passengers a year by 2012, and announced plans to launch flights this September using up to three leased A330s whilst the airline waits for the delivery of its first aircraft next September. It plans to sell flights for as little as 10 ringgit, or £1.50.
The airline may fly to as many as five cities with its leased aircraft, Fernandes said, declining to be specific as 'we're in the process of finalising the destinations.' They are likely to include China, India, Australia, the Middle East, Europe and Japan, and in the UK, AirAsia will serve either Manchester or Stansted Airport, he added.
I would put money on it being MAN. AirAsia is the the main sponsor of Manchester United FC, and is a main attraction for visiting Asians to the country.
I would be surprised if both routes weren't been flown within the year.
But...
British Airways chief executive Willie Walsh has ruled out an expansion of the airline's international operations at Manchester Airport in the foreseeable future.
Following the disposal of its loss-making subsidiary, BA Connect, to regional low-cost airline Flybe last month, BA now only flies to New York, Gatwick and Heathrow from Manchester Airport.
Mr Walsh said he did not envisage any routes to Europe unless BA is 'radically restructured'. He told an audience at Manchester Business School: 'We just cannot do it profitably in the face of the competition [from budget airlines].'
Shame..but not really a surprise. They will be too busy concentrating on their LHR and LGW bases as the Open Skies comes into force with increased competition.