Air Asia X: Now Everyone Can Profit

Watch Air Asia X’s imminent listing on the Malaysian stock exchange! Air Asia X is the long-haul subsidiary of Air Asia Bhd. They are one of Air Asia’s most promising subsidiaries in the coming months. As part of Air Asia, Air Asia X will benefit from its strong brand recognition. Investors looking for growth opportunities are also increasingly likely to look towards Asia.

Air Asia X are taking delivery of 7 new airplanes in 2013 plus another 7 aircraft in 2014. These deliveries will more than double its current fleet size of 20 aircraft. The new aircraft will service existing routes, new cities and new hubs. As the market leader for long-haul flights in Asia, Air Asia X’s new aircraft will boost their financials. Air Asia X has no plans to resume its flights to India and London, but is expecting growth to come from its core markets such as Australia, China, South Korea and Japan over the next two years. Since they consolidated their route network, the second half of last year and first quarter of 2013 have been much stronger due to a more focused route network.

The discounted flight market in Asia is roughly 25% of the air travel market. This is a market segment that Air Asia dominates with a strategy of:

·         Offering special discounted prices for passengers booking early;

·         Charging for almost everything on board including luggage, meals, blankets, entertainment;

·         Providing package deals for frequent travellers which offer fares 35% lower than those of rival airlines;

·         Operating above 80% capacity on most routes to keep unit costs low for profitability.