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AirAsia and AirAsia X to exceed 3 million Fly-Thru transit passengers in 2014 as model evolves

Analysis

AirAsia should see a surge in transfer traffic over the next several months as it introduces and expands its Fly-Thru transit product at additional hubs. AirAsia is evolving to become more like a network carrier, following other Asian LCC groups which have been promoting and selling connections for several years.

Bangkok Don Mueang in late 2013 became the second hub for AirAsia's Fly-Thru product, which was initially introduced at Kuala Lumpur in 2010.

AirAsia introduced the transit product at Jakarta in Sep-2014 and is planning to extend Fly-Thru to Bali and Kota Kinabalu by the end of 2014.

The launch of long-haul affiliates in Indonesia and Thailand is driving much of the growth. But there is also growing demand for short-haul to short-haul connections.

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