Europeans Puzzle At Viability Of AirAsia's Budget Fare For Long Haul

[Naim 6]

January 27, 2007 13:06 PM

 

Europeans Puzzle At Viability Of AirAsia's Budget Fare For Long Haul

 

By Manik Mehta

 

FRANFFURT, Jan 27 (Bernama) -- Not that there have been no low-cost airlines in the past. America, Europe and Asia have had their share of budget airlines who have given the big, established ones the run for their money.

 

But the recent announcement by AirAsia Bhd, Malaysia's leading low-cost carrier, to start a regular service between Asia and the United Kingdom from July will mean that it will be the first low-cost airline to serve a long-haul route.

 

The undertaking has also led to a vibrant debate in both Europe and America over the viability of such a service.

 

German experts say that the undertaking is inherent with high risks.

 

...

 

CONTINUE READING at: http://www.bernama.com.my/bernama/v3/news_lite.php?id=243669

[Guest Fendy]

AirAsia Bhd, Malaysia's leading low-cost carrier

they are leading cos they are the only one.

 

[Edwin P K 0]

I think they meant Asia's leading low-cost cariier

[Md. Rudy 0]

AirAsia is not the first low-cost carier to launch long-haul flight. Oasis Hong Kong has been in operation for months flying HKG-Gatwick using ex- SQ B744. However, I'm sure if they are profitable with that type of business model.

 

For a long haul flight without proper inflight entertainment & meals is going to be a boring flight, unlike short-haul flight currently operated by Air Asia.

 

It will be very interesting to see how AirAsiaX gonna operate & what kind of inflight entertainment thay gonna have, given their low cost fare.

 

 

[Keith T 2]

It will be very interesting to see how AirAsiaX gonna operate & what kind of inflight entertainment thay gonna have, given their low cost fare.

 

They might use the Jetstar long haul model. The economy fares, either 'Jetsaver' or 'Jetflex' only get you the seat on the plane. Extras like blankets, personal IFE systems, food (AUD15/tray according to a friend who just flew JQ to Hawaii), amenities kit etc will have to be paid for separately. Your BP will reflect whether or not you've paid for the extras, so do not lose your BP stub if you've paid or you might not get fed. Their premium economy fare, 'Star Class' is pretty good value too. Covers all the add-ons. Basically the same as premium economy on BA, NZ, VS etc but you also get Qantas Club access, priority boarding, mileage accrual at business class level, inseat power, and a 30kg baggage allowance. The Star Class seats come with 38" pitch and 20" width (same as QF domestic J, and much nicer than BA WTP).

Edited January 29, 2007 by Keith T

[Pieter C. 5]

Where the heck is Franffurt ?

 

I've said it before, and I'll say it again: AK is expanding too fast hopefully this will work out well for them...

 

Many airlines have bitten the dust by overexpanding; low-fare longhaul is a complete different business as domestic/regional !!!

[Radzi 2]

There is reason to believe that X will fly A330. And look at destinations flown by MH A330; the pattern is such that some commanders could jump ship. MH B777 crew are generally happier with their job compared to MH A330 crew.

 

Anyway, just a prediction.

 

[H Azmal 0]

Pardon my ignorance, but didn't long haul budget carriers of the past went bust with the same biz model? e.g. Laker Airways, People Express?

[Teoh Z Yao 0]

There is reason to believe that X will fly A330. And look at destinations flown by MH A330; the pattern is such that some commanders could jump ship. MH B777 crew are generally happier with their job compared to MH A330 crew.

 

Anyway, just a prediction.

 

I have the same feeling. I don't know the inside story, but look at AK's current fleet and what they're doing with the 733s.

 

[Pieter C. 5]

Pardon my ignorance, but didn't long haul budget carriers of the past went bust with the same biz model? e.g. Laker Airways, People Express?

 

Exactly the airlines I was thinking of with my previous 'reply'

 

BTW, how's Oasis doing financially since they started their HKG-LGW routing ? profitable or not ?

[Sing Yew 1]

In today's Star newspapers, it's mentioned that Tony Fernandes is venturing into the financial services business as well, Tune Money. It's in the Business section of the papers.

 

Weblink

 

Sorry for going OT.

 

And yes, Pieter, I have to agree with you about their overexpansion.

 

[Naim 6]

In today's Star newspapers, it's mentioned that Tony Fernandes is venturing into the financial services business as well, Tune Money. It's in the Business section of the papers.

 

Weblink

 

Sorry for going OT.

 

And yes, Pieter, I have to agree with you about their overexpansion.

 

Yes, too fast. Want to diversify some more. Many start-ups went belly-up because of this (just look at local companies which sprouted like mushrooms in the 90s, now gone). Should consolidate and improve on existing portfolio first, to retain consumers.

 

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