Loading

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

Analysis

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.

Read More

This CAPA Analysis Report is 3,435 words.

You must log in to read the rest of this article.

Got an account? Log In

Create a CAPA Account

Get a taste of our expert analysis and research publications by signing up to CAPA Content Lite for free, or unlock full access with CAPA Membership.

InclusionsContent Lite UserCAPA Member
News
Non-Premium Analysis
Premium Analysis
Data Centre
Selected Research Publications

Want More Analysis Like This?

CAPA Membership provides access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out More