Branson’s new challenge
A report in the Herald Sun says that Richard Branson is about to challenge Qantas’s dominance of Australia’s travel market on three fronts.
Sir Richard last week bought a 20 per cent stake in a new Malaysian discount airline which plans to use Coolangatta and Avalon airports to fly from Australia to London via Kuala Lumpur.
The new carrier, AirAsiaX, has indicated that passengers will be able to travel from Australia to Kuala Lumpur for less than $500.
It will have 15 aircraft and plans to launch late next month, after gaining regulatory and safety approval from Australia.
British-based long-haul airline Virgin Atlantic and domestic carrier Virgin Blue, in which Sir Richard holds major stakes, already compete with Qantas on the Britain-Australia route and on routes around Australia.
The AirAsiaX deal was sealed at a ceremony in Kuala Lumpur with Sir Richard saying he was “thrilled” to support the team at AirAsiaX to open up low-cost travel from Malaysia.
AirAsiaX will launch its Australian operation from Coolangatta airport on the Gold Coast, and follow up later with flights from Avalon.
The Avalon operation, which was to have begun first, has been stalled until a new international terminal is built to accommodate Customs, immigration, police and other emergency services.
AirAsiaX chairman Seri Kalimullah Hassan said the airline expected to begin flights from Malaysia to Australia at the end of September or early October.
But Mr Hassan’s flight plans could be premature, with the Civil Aviation Safety Authority in Canberra yet to sign off on operating and safety approvals for Australian airspace.
AirAsiaX, launched earlier this year by Malaysian businessman Tony Fernandes, has only one plane, however, it has confirmed orders for 15 new Airbus A330-300s.
Sir Richard’s investment will underwrite the venture and partly pay for the new aircraft.
His decision to back AirAsiaX appears to be part of a much wider strategy to win a major share of Qantas ticket sales.
The investment in AirAsiaX comes when Qantas offshoot Jetstar is about to begin its own discount flights from Australia to Kuala Lumpur.
Report by The Mole
John Alwyn-Jones
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Phocuswright reveals the world's largest travel markets in volume in 2025
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Higher departure tax and visa cost, e-arrival card: Japan unleashes the fiscal weapon against tourists
Singapore to forbid entry to undesirable travelers with new no-boarding directive
In Italy, the Meloni government congratulates itself for its tourism achievements