AirAsia X foced into holding pattern
KUALA LUMPUR: The runaway success of AirAsia chief Tony Fernandes has been stalled by the news that Fly Asian Xpress (FAX) has postponed its long-haul budget services, possibly until next August.
Fernandes is blaming the lack of suitable aircraft for delaying services to the UK, Europe and China with fares starting as low as US$80 return.
There was a lot of fanfare in January when Fernandes announced the new low cost, long haul carrier to international media flown to Malaysia for the launch.
The new airline – a tie-up between Malaysia’s very successful no frills carrier, AirAsia, and Fly Asian Express (FAX) – aims to carry half a million passengers in its first year.
Now AirAsia says it cannot get the aircraft it needs to start operations as planned in July this year.
“We can’t find the planes. AirAsia X will definitely start at the latest in August 2008. If they can find planes before then, they will start, otherwise they won’t,” Fernandes, who owns 10 per cent of FAX, told Bloomberg in Singapore.
Reports indicate that AirAsia X is seeking up to 15 Boeing 777-200s or Airbus A330-300s but the current cost of leasing those aircraft is higher than then new airline anticipated.
In a separate issue, AirAsia subsidiary Thai AirAsia has refused to comment on reports that its parent company may buy the 25 per cent stake in the airline held by Shin Corp.
Shin Corp. the family company of then prime minister Thaksin Shinawatra, was taken over a year ago by Singapore state investment company Temasek Holdings.
The tax-free sale caused political turmoil, which led to the military coup against Thaksin in September.
Phil Davies
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