The current environment has sent carriers into a struggle to keep some of their profit by cutting capacity and routes, however, AirAsia X, a long-haul budget airline, is doing the opposite. Now that the carrier has announced and began their most recent Melbourne route, they are now working with plans for flying to north India, Japan, and South Korea. Azran Osman-Rani, the Chief Executive Officer of AirAsia X, said that as soon as they have more new aircrafts, they will begin to expand their routes for these countries. The airline is planning to have 2 new aircrafts this year, and next year they expect to gain 3 more. Right now they only have one.

To rationalize their plans for expanding, Azran said that there is clearly a rush now. The carriers that have been cutting on their routes are legacy carriers, of which have routes that are non-profitable to cut. For AirAsia, he continued, they only have one aircraft, so they don’t have anything to cut. He also said that the strategy of the company is to get sales and size, growing from that point on. Chris Eng, the Associate Director of OSK Research Sdn Bhd, said that it is a good thing that AirAsia X is flying to Tullamarine Airport in Melbourne instead of to Avalon Airport, of which is farther away. Azran commented that while other carriers are increasing prices and cutting capacity, they would rather keep their fares low and grow their volume.

Get more information at: www.airasia.com