KUALA LUMPUR, Malaysia-
Malaysian aviation tycoon Tony Fernandes on Friday launched a new long-haul budget airline named AirAsia X, which will start flying to destinations in China and Britain in July.
The new carrier is owned by Fly Asian Express, or FAX, a small airline serving rural routes in Malaysia, and will collaborate with AirAsia, which Fernandes, 42, rescued from bankruptcy in 2001 and turned into the region’s biggest low-cost carrier. He owns part of both airlines.
“We are proud in being able to continue to lead and revolutionize aviation industry in Asia, just as we did with AirAsia,” Fernandes said at the launching ceremony.
He told a news conference that AirAsia X expects 500,000 passengers in its first year of operations, which will ultimately cover China, India, Europe, Australia, Asia and the Middle East.
Average ticket prices will be about half the price of full service airlines, he said.
Online sale of tickets will begin next month for initial service to Tianjin and Hangzhou in China, and to either Manchester or London in the United Kingdom. If AirAsia X ends up flying to London, it will operate from Stansted airport, said Fernandes, who is the majority owner of FAX with a 50 percent stake.
At the same news conference, AirAsia’s executive director, Kamarudin Meranun, told reporters AirAsia may buy another 100 Airbus 320 planes for its long-term needs and hopes to conclude talks on pricing and delivery by the end of the month.
That would double the existing order for AirAsia, which has already committed to buy 100 single-aisle A320s from the European jet maker.
Based on list prices, the order would be valued at $6.7 billion, but aircraft suppliers usually give discounts to their customers for large orders.
“We are looking at a maximum 200 planes, including the 100 firm orders,” Kamarudin told reporters. “We are still talking. … We hope to finalize before the end of the month.”
AirAsia has about 40 jets now, and expects passenger volume to hit 18 million in 2007, up from around 15 million in 2006.
