I think D7 remembers what a cheap airport with a cow shed can do for passenger volumes - the LCCT virtually helped make Airasia Group what it is today.
LCCT also helped KLIA grow from a sleepy airport to become a bustling 40m pax per annum airport.
Apples and oranges. AK/D7 had the ability to grow at that cow shed. Unless Air Asia Group secures an Australian AOC, AVV will just be the origin or destination for all pax (with very minimal non-interline transfers to OOL, ADL, and SYD on JQ but D7 already flies to OOL/SYD).
AVV is also much further away from Melbourne's CBD than MEL where as KUL's former LCCT and KUL T1 is almost equidistance to KL's city center (and AK/D7 gets the benefit of transferring to/from other airlines operating at KUL even though it's a non-interline transfer).
And the Aussie PSC (WY) for MEL is AUD $21 where as at AVV is AUD $20! Score! Btw, did Air Asia removed the ability to see the breakdown of taxes?
Edited by Craig, 18 February 2019 - 03:14 PM.