Air Asia X: Next stop, USA

Air Asia X A340 - courtesy of T.Y. Bob Lee (Airliners.net) 

 

Air Asia X A340 - courtesy of T.Y. Bob Lee (Airliners.net)

In an interview today, the CEO of Air Asia X announced that the airline is planning to fly to the USA from Kuala Lumpur and/or London, possibly by the end of this year. Air Asia X launched its first long-haul low cost service to London from Kuala Lumpur earlier this month. More than 50,000 tickets were snapped up with prices as low as GBP 199 for the route. Los Angeles and New York are two destinations the airline is looking into. One interesting detail: the CEO said that they were considering extending their Kuala Lumpur – London service across the North Atlantic to New York. If they win rights to carry passengers from the UK to the US and vice-versa (and I’m sure they’re working on it right this minute), this would stack them up against the likes of BA, Air France KLM, Lufthansa and the American heavyweights United, AA and Delta. Oh, and Virgin Atlantic as well; interesting considering that Sir Richard Branson is one of Air Asia X’s major shareholders.

The North Atlantic sector was the birthplace of intercontinental low-cost flights when Sir Freddy Laker launched the infamous ‘SkyTrain’ London – New York service in the 1970′s. It is no secret that Sir Freddy is the biggest source of inspiration for Tony Fernandes, Air Asia’s founder. Air Asia X even named its first A330 plane after the late Sir Freddy. Laker Airways went bust in the early-1980′s under a pile of debt due to falling demand, rapid overexpansion and competition from legacy airlines. Is it Mr. Fernandes’ dream to breathe new life into Sir Freddy’s failed venture? Air Asia X is in a very confident mood after the successful launch of the London route and I imagine they feel that they can now take on the world. However, competing directly against Malaysia Airlines on the London or Australia routes out of Kuala Lumpur is one thing, flying the ultra-competitive transatlantic sector and exposing yourself to the full weight of some of the world’s biggest airlines is another. I recognise that the risks involved in attempting to resurrect the low-cost transatlantic service are relatively smaller compared to those faced by Laker Airways – unlike its transatlantic predecessor, Air Asia already has a firmly established network elsewhere (in Asia and Australia). Nevertheless, at the risk of sounding like a (premature) doomsayer, it would be worthwhile to consider the knock-on effects of a failure (for instance, the psychological impact on the airline staff and the general public) on the high-profile London – New York sector. 

I’m sure Mr. Fernandes is fully aware of the history of Laker Airways. I hope the jubilant mood at Air Asia doesn’t cloud the lessons that can be learnt.

What do you think of Air Asia X’s new plans?

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4 Responses to “Air Asia X: Next stop, USA”

  1. PaulK 08/07/2010 3:21 am
    #

    PhillipH…I too am an experienced AirAsia flyer with numerous flights over a 6 year period. I have also worked for an international airline, plus one of the biggest travel agencies on the internet (Travelocity.com). Therefore, I have some understanding about the risks involved with saving money on low-cost airlines. My gripe had nothing to do with the cost of the ticket. It had a lot to do with corporate behavior.

    Are you telling us it’s ok for AirAsiaX to strand it’s customers on anther continent (without proper notice) because they didn’t pay top dollar for the ticket? Are you also telling me it’s OK for AirAsiaX to ignore the customers they have harmed because the flight was cheap?

    Do you work for AirAsia?

  2. PhilipH 07/07/2010 6:10 pm
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    I have flown Air Asia and Air Asia X about 50 times now.
    Unlike PaulK. no problems with Air Asia X flights to Stansted and Perth.
    Besides PaulK, there is always a risk flying low cost carrier, I flew Oasis HongKong and Compass and I has run ins with Ryanair and Southwest. So far Asian carriers are better in terms of ‘service’.
    TheiryM, I did get back my tax on a flight which I did not take cause I was 5 mins late, counter closed. You need to apply for it online and make sure you have your ‘confirmation code i.e. the 6 character code which identifies your original booking. Don’t bother calling they don’t employ people to talk on phones. Send one email don’t send numerous, they think you are double claiming!

  3. ThierryM 20/06/2010 10:11 pm
    #

    We booked a flight Melbourne – kl back in January 2010
    Flight that we did not take.
    According to Airasia policies and website , airport tax should have been reimbursed,
    As far as today June 20 2010 and after numerous emails sent to them
    Nobody replied to us useless to mention that no money has been paid back to us .

    Disappointing….

  4. PaulK 06/03/2010 9:24 am
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    Most recently, my wife and I were stranded in Abu Dhabi when AirAsiaX announced they were canceling service to/from Abu Dhabi in January this year. They didn’t notify us (their stranded passengers), until Feb 10th. Neither did they offer any accommodation nor answer our emails asking for help. We had to get back to Malaysia on our own. They won’t reimburse our additional expenses either.

    They said they would refund the Abu Dhabi/Kuala Lumpur portion of our trip, but it will take them 30-50 days to process the refund. Such an attitude!

    Watch out for these guys. If you are considering using AirAsiaX, It might be a good idea to develop a plan B… just in case.

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