AirAsia diversifies its Australia operation & regains New Zealand presence with Gold Coast-Auckland

The AirAsia branded airlines, through their various entities, are resuming expansion in Australia and re-entering New Zealand with a new fifth freedom route connecting the Gold Coast with Auckland. Gold Coast-Auckland is a much bigger market, and less risky option, than the Kuala Lumpur-Christchurch route that AirAsia dropped in 2012, ending a highly unprofitable one year foray in the New Zealand market.

AirAsia cut back significantly in Australia in early 2015, erasing an earlier nearly 100% increase in seat capacity in the Malaysia-Australia market, which led to yield declines and heavy losses. Following the Gold Coast-Auckland launch, AirAsia will again be close to 2014 capacity levels in Australia, but with a much more rational approach, relying less on Malaysia.

AirAsia's new, more balanced Australia operation with four routes from Australia to Malaysia, four to Indonesia, and one to New Zealand, gives the LCC group a stronger and more viable position in a strategically important market. Australia could potentially be subject to further expansion from AirAsia, but this is not likely to be in the Malaysia-Australia market.