Indonesia AirAsia plans to launch four times weekly Jakarta-Ho Chi Minh City service on 18-Sep-09, the carrier’s first service to Vietnam – see Route Changes Table for more information. (SGGP, 31-Aug-09)
Indonesia AirAsia to launch Jakarta-Ho Chi Minh City service
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AirAsia up-gauges with a 100 A321neo order; outlook improves and China in its sights
AirAsia has joined other leading LCC groups in Southeast Asia by deciding to add higher density narrowbody aircraft. The 100 A321neos ordered by AirAsia at the 2016 Farnborough Air Show will enable the group to maximise slots at infrastructure constrained airports and further reduce unit costs.
The new order also enables the AirAsia Group to meet a requirement for additional aircraft that has surfaced due to the establishment of a leasing subsidiary which is looking at potentially placing some of the group’s future aircraft with third party customers. AirAsia joins rival Lion Group and VietJet Air in pursuing potential opportunities to lease out some of 1,150 aircraft the three Southeast Asian groups have on order – a staggering number of aircraft that likely cannot be absorbed entirely by their own airline subsidiaries or affiliates - but which they need to have available in case high forecasts materialise.
The new deal lifts AirAsia’s narrowbody order book to 404 aircraft, including 304 A320neos to be delivered from 2H2016 through 2028 and 100 A321neos slated for delivery from 2019 to 2028. The group took its last A320ceo in 2Q2015 and currently operates 171 of the type from bases in five countries.
Lion Group and Turkish Airlines could fill the void in Australia-Bali market as AirAsia X withdraws
Competition could again intensify on Australia-Bali routes, despite the upcoming withdrawal of AirAsia X. The long haul low cost group drove 7% growth in the Australia-Bali market in 2015 but is suspending services to Bali from Melbourne and Sydney at the end of Aug-2016.
The Lion Group and Turkish Airlines are both looking to launch services between Bali and Australia, which could potentially fill the void left by AirAsia X in the Bali to Melbourne and Sydney markets. The Lion Group could also fill the void in the Bali-Brisbane market left by Garuda Indonesia, which suspended services to Brisbane in early 2015.
The Australia-Bali market has grown steadily and nearly quadrupled in size over the last decade. However competition is intense, making it difficult for any new entrant – as AirAsia X discovered.