Looks like another 330 in march, hopefully dry leased. Vietnam route will be a good revenue stream for them. As is using the allegiant model to sell package holidays.
Air Australia will start three times weekly services to Shanghai and Ho Chi Minh from Melbourne and Brisbane in June 2012 pending regulatory approval, the carrier has confirmed.
It marks the latest expansion for the fledgling airline which last week began service to Hawaii from the Victorian and Queensland state capitals.
It's one of the big risks.
The carrier will also launch Air Australia Holidays next year with product sourced from wholesalers and sold online through its website.
“China is more of a package market – more so than Phuket and Bali,” said chief executive and founder Michael James. “The way that accommodation is structured in Hawaii also makes it a much bigger package market.” James said the airline’s Australian credentials will make it an appealing option for wholesalers.
“If I was an Australian doing a Helen Wong’s tour, I’d rather an Australian airline,” he said. While James claimed the airline now had outbound distribution “down pat”, the task of distribution in China would be a challenge.
"It's one of the big risks. If we don't get distribution right in
the Chinese market, it could all go pear-shaped," he said, adding that the airline would enlist government support to help them “do it right”.
Meanwhile, he claimed that load factors for its Honolulu services, which took to the skies last week, were averaging 92%.
“For such a young start-up to have such high loads shows that we are doing the right things,” he said.
The airline will increase frequencies to Honolulu and Phuket from March 25 to three weekly services from both Melbourne and Brisbane.