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PussyLover 69
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Report from Bangkok Post dated Monday 12 November 2007 :-
AirAsia X confident long-haul routes will thrive - Well-funded venture has big-budget plans
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AirAsia X of Malaysia is taking a gamble on a barely tested business model by buying 25 brand new wide-bodied airplanes worth US$3.5 billion.
The carrier placed the bet on Nov 2 when it took off for its maiden flight from Kuala Lumpur International Airport to Gold Coast, Australia, that marked the beginning of Southeast Asia's first long-distance budget carrier service.
AirAsia X took to the skies just 15 months after the idea of setting a long-haul no-frills service was first floated.
Industry critics are now watching to see whether long-haul no-frills flights will succeed in the market, as perceived by AirAsia X's investors, including Virgin Group and AirAsia, the region's largest low-cost carrier (LCC). Senior executives of AirAsia acknowledge that AirAsia X is indeed a gamble, albeit a calculated one with potential to win.
''Life is a gamble. We live one life, we maximise that life,'' said Tony Fernandes, chief executive of AirAsia, which has revolutionised Asian aviation since pioneering the LCC model in Southeast Asia five years ago. But he quipped: ''There's no such thing as 'if not'. We have not made anything not work.''
Azran Osman-Rani, AirAsia X's CEO, said: ''We are here to challenge industry norms and pioneer new models to enable everyone to fly - extra long.
''We believe that air travellers should not have to shoulder the burden of legacy airlines that are based on complex multiple aircraft type fleets with costly technology systems and inefficient organisation structure and process.
''We believe that up to 50% of these legacy costs can be extracted by applying the same proven focused and disciplined LCC business model.''
AirAsia X is among a handful of airlines attempting to adapt the LCC model to long-distance routes. LCCs normally keep costs low by flying as frequently as possible over short distances, a maximum of four hours, and with a minimum turnaround time. AirAsia X's Gold Coast flight takes more than eight hours.
As long-haul flights cross many time zones, an airline can have trouble scheduling flights to make the most efficient use of each plane, industry critics say.
But the two other long-haul budget operators, Qantas's Jetstar and Oasis Hong Kong Airlines, made relatively good starts a year ago with the former flying from Australia to Asia and the latter from Hong Kong to London and Vancouver.
Read more at :-
http://www.bangkokpost.com/Business/12Nov2007_biz39.php
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