AirAsia cements leading position in Indonesia international market with new AirAsia X Bali base

Malaysia-based long-haul low-cost airline group AirAsia X is moving forward with plans to establish its second affiliate in Indonesia with a base from the resort island of Bali. The group recently signed an agreement with a local partner to establish Indonesia AirAsia X (IAAX) and has already secured an air service licence from Indonesian authorities.

IAAX will likely launch services by the end 2014, sourcing 377-seat A330-300s from the group's recently expanded order book. The new carrier plans to serve destinations in Australia and North Asia, connecting dots which are already served by AirAsia X from Kuala Lumpur and soon by Thai AirAsia X from Bangkok.

Indonesia's LCC sector is fiercely competitive, with a fleet of nearly 200 aircraft which is slated to expand by another 20% in 2014. But IAAX will be Indonesia's first long-haul low-cost carrier, giving it important first mover advantage in several relatively underserved markets.