AirAsia X, accelerating growth in response to Scoot, looks to capture Asian market once and for all

Low-cost long-haul leader AirAsia X was relatively quiet throughout the announcement of low-cost long-haul operations from Singapore Airlines (in the form of Scoot) and Cebu Pacific but has delivered a sharp competitive response by unveiling plans to nearly double its growth over the next two years. AirAsia X plans to add seven Airbus A330-300s in 2013 and another seven A330-300s in 2014, allowing the carrier each year to potentially add 10 daily roundtrip services and more than double its current A330 fleet of nine. Some AirAsia X A330s for the first time will be based outside of its present Kuala Lumpur hub.

This growth is not merely one-upping but an opportunity for the larger AirAsia Group to permanently set itself on a different level from competitors as it fully realises the long-aspired dream of a pan-Asian network. The Asian budget market could be re-defined, with future competition only over who gets second place. While the spotlight may be on new competitor Scoot, the greatest implications are on the Jetstar Group, whose parent company Qantas is fighting an aggressive domestic battle in Australia, a casualty of which could be Jetstar's growth potential.