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AirAsia charts path from regional to global airline network
Gracia Chiang, reporting from EyeforTravel's Travel Distribution Summit Asia, Singapore, May 10, 2012

LOW-cost brand AirAsia is morphing into a global player by connecting its shorthaul and longhaul networks, and entering into joint ventures to establish multiple hubs in key cities.


Giving the conference’s opening keynote yesterday on the changing travel landscape, AirAsia X CEO, Azran Osman Rani, said: “Traditionally LCCs said we’re just these simple regional networks; we fly people from point to point…With AirAsia X, we found there were tremendous advantages in linking up the longhaul to the shorthaul model.”


He added that a huge percentage of Australian passengers flying AirAsia X into Kuala Lumpur were taking connecting flights on AirAsia to nearby destinations such as Bangkok, and even farther north to China, South Korea and Japan.


“An LCC that doesn’t have a longhaul component will suddenly find itself at a significant disadvantage. For example, in South-east Asia, how does a standalone LCC compare to an AirAsia network which is not only capturing the market within South-east Asia but able to tap markets from Australia, North Asia and the Middle East who are also flying within the South-east Asia network.”


Closely related is AirAsia’s strategy of adopting a multi-hub model in cities across Asia, with its longhaul arm acting as a feeder. Azran said this would involve “using joint ventures as a way of bringing in partners and dealing with a lot of the regulatory issues on foreign ownership”.


- Read more in TTG Asia May 18, 2012


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Just another example of Air Asia what happened to all their \'longhaul\' plans for London , Paris and Middle East.. They let down many thousands of people who had booked flights to and from London and Paris. They also damaged tourism into Malaysia by withdrawing their European flights..
Posted by: john eyton
10-05-2012 17:54:50
New Zealand also didn\'t seem to work out for them. And passengers from here weren\'t even given the option to fly on an alternative carrrier- we have the option of grabbing an Air Asia flight from Australia or a refund. Yes, because Australia is right next door...
Posted by: Leo
10-05-2012 19:06:16
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