Thursday, September 15, 2011

AirAsia dismisses London rumours

The budget airline group AirAsia yesterday denied that it would launch its first intercontinental non-stop service out of Bangkok, to London, through its long-haul affiliate AirAsia X.

Tassapon Bijleveld, chief executive of Thai AirAsia (TAA), part of the Malaysia-based AirAsia Group, disavowed any knowledge of such a move as reported by Thai newspapers earlier this week.

''No, I'm not aware of such a plan, not thinking about it now,'' Mr Tassapon said, adding that as far as TAA was concerned, ''we are hammering on consolidating our regional and Asean network.''

Industry analysts said AirAsia X would be keen to start long-haul flights out of the Thai capital if given the rights _ something the Thai authorities would zealously reserve for the country's flag carrier, Thai Airways International (THAI).

AirAsia is already viewed as a threat to Thai airlines on both domestic and regional routes, but the launch of long-haul flights out of Bangkok by AirAsia X would have a particularly adverse impact on THAI, especially its lucrative Bangkok-London sector.

Analysts said AirAsia X had been looking at Bangkok for some time but had been unable to gain entry to the market.

AirAsia X fares are 30% cheaper on average than those of conventional airlines. Its new aircraft offer business class with flat-bed seats and other key features that legacy operators are finding difficult to match.

From its hub at Kuala Lumpur International Airport, AirAsia X flies to destinations in India, China, Australia, Taiwan, Iran, South Korea, the UK, Japan, France and New Zealand.

The carrier operates nine Airbus A330s and two Airbus A340s. In all, the airline has ordered 28 A330-200s.

AirAsia Group, including AirAsia X, has flown more than 120 million passengers from its hubs in Malaysia, Indonesia and Thailand to some 160 destinations.

http://www.bangkokpost.com

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