New Long-Haul Budget Airline Debuts in Malaysia

Kuala Lumpur: Malaysian aviation tycoon Tony Fernandes Friday launched a new long-haul budget airline named AirAsia X, which will start flying to destinations in China and Britain in July.
The new carrier is owned by Fly Asian Express, or FAX, a small airline serving rural routes in Malaysia, and will collaborate with AirAsia, which Fernandes, 42, rescued from bankruptcy in 2001 and turned into the region's biggest low-cost carrier. He owns part of both airlines.
Fernandes said AirAsia X expects 500,000 passengers in first year of operations, which will ultimately cover China, India, Europe and Australia.
Average ticket prices will be about half the price of full service airlines, he said.
Fernandes said AirAsia X is expected to buy 20 aircraft, either Boeing 777-300ER or Airbus 330-300, with shareholders' money. A decision on the type of aircraft will be taken by the end of the month.
04/01/07 Eileen NG/Associated Press/Houston Chronicle, US

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