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Malaysia AirAsia to focus growth from secondary hubs as Langkawi-Hong Kong, Guangzhou are launched

Analysis

AirAsia is preparing to establish a hub on the Malaysian island of Langkawi following a landmark deal which has resulted in a 70% reduction in charges - an indicator of the high importance placed on charges by the AirAsia Group. Langkawi will become Malaysia AirAsia's sixth hub as services to Guangzhou and Hong Kong are launched.

Several other new international destinations are expected including Bangkok under a plan which will see at least five A320s based in Langkawi by 2020. Langkawi currently only has regular international services to Singapore.

The new Langkawi hub is part of an overall strategy by the AirAsia Group to focus growth on secondary airports. At the group's original Malaysian subsidiary several new domestic and international routes from secondary hubs are planned for the next year despite a significant slowdown in fleet growth.

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