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Fernandes adamant that Air Asia X will not fail

 
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attitudetravel



Joined: 15 Nov 2007
Posts: 401
Location: London, UK

PostPosted: Thu Sep 25, 2008 3:57 pm    Post subject: Fernandes adamant that Air Asia X will not fail If a post contains some illegal issues you may abuse on it - just click Abuse and fill the form Reply with quote

The recent failures of two out of three existing scheduled long-haul budget carriers - Oasis in April 2008 and Zoom in August 2008 - raises questions over whether low cost long-haul airlines can survive.

Air Asia CEO, Tony Fernandes, is positive that his long-haul low cost airline, Air Asia X will succeed where others have failed.

Speaking on the first morning of the World Low Cost Airlines Congress 2008, Fernandes explained the advantage of AAX was having a short-haul sister-airline to offer connections across Southeast Asia for long-haul passengers arriving in Kuala Lumpur. "With Air Asia there providing connectivity it seems to work," he said.

Fernandes commented that high oil prices were just another obstacle for Air Asia and Air Asia X in a series of obstacles which had already included SARS, the 2004 Tsunami and terrorist bombings in Southeast Asia.

With regard to the Bali bombing, Fernandes commented that while other airlines began pulling their advertising and cancelling flights to Bali after the atrocity, Air Asia made available 10,000 free seats to Denpasar and saw them all picked up within one hour.

"I know Malaysians very well," he joked. "If you put a fare low enough, they'll risk their lives."
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attitudetravel



Joined: 15 Nov 2007
Posts: 401
Location: London, UK

PostPosted: Thu Sep 25, 2008 4:03 pm    Post subject: If a post contains some illegal issues you may abuse on it - just click Abuse and fill the form Reply with quote

All very well, but using low fares to encourage people to fly again when they are in two minds about it and not being able to lower your fares because the high oil price doesn't allow that possibility are, arguably, obstacles of two different orders.

Nevertheless, Fernandes makes a good point about regional connectivity - by combining Air Asia X and then Air Asia, passengers from China, Australia and Europe will be able to fly low cost from their departure airport to almost anywhere in Southeast Asia.

That's the kind of proposition which neither Oasis nor Zoom could ever offer.
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MHG



Joined: 23 Feb 2008
Age: 51
Posts: 31
Location: Schwetzingen (Heidelberg), Germany

PostPosted: Sun Sep 28, 2008 3:05 pm    Post subject: If a post contains some illegal issues you may abuse on it - just click Abuse and fill the form Reply with quote

Especially OASIS was suffering from that problem despite HKG-LON point-to-point demand is relatively high. It was still not viabl and forced them to put fares as low as they did (resulting in too low yield to cover their expenses)
Also LGW was not a good choice ("feeder" wise)
STN - although very crowded at times would have been far better.
So, D7 to select STN is nothing that happened accidently ! ! !

My sources are telling me that next to STN Air AsiaX is focusing also on CGN to serve the continent.
They already had "presentations" at MUC and CGN with the resp. airport operators ... and i know that realistic chances are in favor of CGN over MUC due to the fact that CGN is Germany´s biggest LCC hub and still has no serious slot problems (plus it´s one out of very few german airports without night curfew.

Oasis had CGN already on the focus but ran out of funds before these plans came to fruition!

We´ll see what happens but i´m quite optimistic
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Konangrit



Joined: 27 Nov 2007
Posts: 137


PostPosted: Mon Sep 29, 2008 2:40 am    Post subject: If a post contains some illegal issues you may abuse on it - just click Abuse and fill the form Reply with quote

AirAsia X is also better funded than Oasis. Richard Branson has a significant stake, which inspires confidence aswell.
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