AirAsiaX takes a fresh look at Sydney
An aviation analyst believes that Malaysian low-cost carrier AirAsiaX will beat Singapore’s new budget airline, Scoot, into Sydney next year.
Scoot, backed by Singapore Airlines, is due to launch low-cost Singapore-Sydney flights in the first half of 2012.
But Brendan Sobie, an analyst with the Centre for Asia Pacific Aviation, expects AirAsia X to launch the Kuala Lumpur-Sydney route before Scoot launches the Singapore-Sydney route.
His argument, reported by The Star in Kuala Lumpur, is based on the fact that AirAsia group boss Tony Fernandes is now on the Malaysia Airlines (MAS) board and that could have changed things for AAX.
The low-cost long-haul airline AAX now flies to three cities in Australia: Perth, Gold Coast and Melbourne.
Sobie said AAX had long wanted to serve Sydney but for years did not receive approval from the Malaysian government.
National flag carrier MAS was not keen to be in competition with AAX’s low fares and lobbied the government to keep AAX out of Sydney.
However, the August equity swap between AirAsia and MAS, which led to Fernandes gaining a seat on the MAS board, has alleviated the tension.
Asked whether Sydney was on the cards, AAX chief executive Azran Osman-Rani said, “We have done a lot to pioneer a new innovative business model that gives Malaysia a rare global industry leadership position.
“Are we going to let the Singaporeans overtake us because we are slow and unresponsive?”
Ian Jarrett
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