One of Asia’s fastest-growing budget airlines plans to expand its services to meet the needs of the growing Southeast Asian market. AirAsia X, the Malaysian carrier’s long haul airline, will attempt to raise over $370 million to expand its operations in one of the world’s fastest-growing regions for air travel.
Launched in 2001, AirAsia is one of Asia’s largest low-cost airlines. Based in Kuala Lumpur, the budget airline flies to over 20 destinations in the region, including far afield countries such as India and Japan. The company has grown tremendously due to extreme growth in the short haul air travel sector in Malaysia and its neighbours.
Boasting its own fleet of 11 aircraft, AirAsia X was launched in 2007 to capitalise on the growing demand for inexpensive long-distance flights to and from Asia. AirAsia X currently flies from Malaysia to a variety of destinations, including Australia and Japan. The airline previously flew to London and Paris, as well as New Zealand.
Many of AirAsia X’s routes were closed over the past two years, largely due to high taxes and rising fuel costs. The company closed its routes to India and New Zealand after just one year of operations, but now believes that many of its previous routes could be reopened due to improved demand and increased funding from investors.
Tony Fernandes, the company’s chief executive, claimed that India was one of Air Asia’s highest priorities. The large country, which boasts a population of over 1.2 billion, lacks a competitive low-cost air carrier sector, with many routes operated primarily by high-end international airlines and state-owned domestic carriers.
Given the company’s immense success on short haul routes in Asia, it seems that Air Asia X’s fundraising plans will go fairly smoothly. The company’s low-cost, no-frills approach to air travel has been a hit with Malaysians, leading many to believe that its international expansion will be another lasting success.
