Air Asia eyeing Adelaide, Melbourne
SMH May 17, 2007 - 5:59PM
Asia's biggest low cost airline - Air Asia - is eyeing Adelaide and Melbourne as new destinations for its new medium to long haul carrier.
Air Asia X will announce its entry point into Australia in July.
An offshoot of the highly successful, no frills, high frequency Air Asia brand - it will begin flights between Australia and Malaysia in September, Chief Executive Officer Tony Fernandes said on Thursday.
"My two favourite routes are Adelaide and (Avalon) Melbourne," Fernandes said.
"Maybe we will go to both.
"I would love to repay their faith in us, especially South Australia."
The new carrier will fly from Malaysia to Australia, Japan, Korea, China, Europe and the Middle East.
"Our philosophy is to get the fare as low as possible," he said at his airline base in Setang Airport.
"We are not appealing to the corporate market, we are appealing to the market that has never flown."
The company, due to announce its new chief executive next week, has ordered 15 new Airbus A330 aircraft which are due to be on line from September next year.
"There's no turning back," he said.
"We have launched that (Air Asia X), we have got staff, we have got one plane, 15 planes (on order), we are actively looking for routes."
Fernandes expected return flights between Australia and Malaysia would cost around 800-900 Malaysian Ringgit (A$285-320) return, with two flights daily.
He said his preferred first flight for the new carrier would be to Australia.
"If we get the pricing right there is no reason why we can't do two (flights) a day from KL (Kuala Lumpur)."
Australia's low cost carriers were "kidding themselves" with their fares saying they were "not really low cost," he said.
Since its launch in 2001, Air Asia has flown more than 20 million passengers around the region for prices as low as US 99 cents.
"We want to be the lowest cost product," he said.
"I don't see the fares being particularly low (in Australia).
"I would imaging that to Australia we will be doing an airfare of 800-900 ringgit return."
He explains that the Air Asia X medium to long haul flights would be a "different experience," with only limited seating allocations and passengers likely to pay for food and baggage requirements.
Fernandes said the South Australian government had approached the company about its plans to fly to Australia, which he expected would open the country up to 600 million South-East Asians for travel.
"Over 600 million South-East Asian people will be flying ... to KL then catch X to Australia," he said.
"They will fly from Cambodia, they will fly from Vietnam."
He ruled out Sydney Airport as a potential destination.
"I think Kingsford Smith is an expensive airport... I'd look at Newcastle before I go to Sydney."
Battling the effects of the tsunami, skyrocketing fuel prices and terrorism, Fernandes has turned the company into a 4.5 billion ringgit ($A1.6 billion) success, after buying a debt-laden Air Asia five years ago for just 36 Australian cents.
The former music industry businessman bought the airline three days before the September 11 terrorist attack in the US.
"It was a great introduction because from that day there has been nothing but strife," Fernandes said
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