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AirAsia X Part 1: Australia-Malaysia expansion resumes, while competitor Malaysia Airlines steadies

Premium Analysis

AirAsia X is resuming expansion in the Australia-Malaysia market, offsetting cuts which were implemented in early 2015 as part of a restructuring. The long haul low cost airline will operate 56 weekly flights between Australia and Malaysia in late 2016, matching its previous high of 56 weekly flights in late 2014.

AirAsia X is now looking at further expanding its network in Australia with several potential new destinations. Additional capacity to its four existing destinations - Gold Coast, Melbourne, Perth and Sydney - is also under consideration.

Cuts at Malaysia Airlines have opened up a potential opportunity for AirAsia X to add more capacity to Australia's four primary cities - where Malaysia Airlines has relinquished traffic rights. AirAsia X has already added capacity from Jul-2016 to the Gold Coast, where there are no bilateral restrictions, and is adding three seasonal weekly frequencies to Melbourne from early Dec-2016.

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