AirAsia X places largest aircraft order
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AirAsia X has placed its largest-ever order for a single aircraft type, buying 25 A330-300s from Airbus.
The deal, which is valued at almost US$6 billion at current list prices, adds to AirAsia X’s outstanding orders for the A330 and A350 twin-aisle jets, and will allow the long-haul low-cost carrier’s fleet to expand to 57 wide-body aircraft by 2019. Deliveries of the latest order will commence in 2015.
The airline currently equips its A330-300s with 377 seats in a two-class configuration, including 12 flat-bed seats in business class.
The agreement was signed in Paris this week by Azran Osman-Rani, CEO of AirAsia X, and Fabrice Bregier, president & CEO of Airbus, and witnessed by Tony Fernandes, co-founder and director of AirAsia X.
“This order stamps our firm intent to dominate the long-haul, low-cost carrier space and marks the next phase in our development to be the undisputed global market leader,” said Fernandes, who was recently awarded France’s Legion d’Honneur for his Airbus purchases.
“We foresee strong market potential based on a low penetration rate of under 10% for low-cost carriers in the beyond four-hour market across Asia Pacific. Hence, we estimate a market size of about 100 low-cost carrier wide-bodies in the region if it grew to 35% over the next five years.”
AirAsia X currently operates 15 A330-300s on services from Kuala Lumpur to 18 destinations in the Asia Pacific region and Saudi Arabia. It will also launch a new Bangkok-based subsidiary, Thai AirAsia X, and these new aircraft will support the growth of this new venture.
“The aircraft orders would further cater to our expansion plans in Malaysia, and the proposed new Thai AirAsia X hub as well as other long-haul ventures planned across Asia. The developments will complement the AirAsia Group’s long-term vision of developing its presence in key markets in Asia and strengthen the connectivity between long-haul and short-haul low-cost network,” Fernandes added.
For several years AirAsia X was the only long-haul low-cost carrier operating in Asia. But it is now facing stiffer competition in the form of Lion Air’s recent Thai and Malaysian start-ups, Malindo Air and Thai Lion Air, plus Singapore’s Scoot, which will also launch a new Bangkok-based airline next year.
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