The evolving long-haul low-cost network airline model: AirAsia X and the new LCC connectivity

At the Farnborough Airshow on 15-Jul-2014, AirAsia X became the launch airline customer for the new A330-900neo, with 50 commitments. That is an important order - but it is made doubly special because AirAsia X is a long-haul low-cost airline, a model that is consistently written off by industry experts.

What makes the story most significant for the purposes of this discussion about airline business models - and more challenging as the industry goes through its gentle process of disruption - is that AirAsia X has also very quickly become a network airline.

Nearly half of its passengers through its Kuala Lumpur hub are transfer traffic; and that percentage is growing steadily. Many full service hub operators do not manage that level of connectivity.

This is a slightly amended version of a report that first appeared in CAPA's Airline Leader, Issue 23, 2014.