AirAsia X CEO Azran Osman-Rani, speaking at CAPA's LCCs & New Age Airlines in North Asia Conference in Macau, stated (06-Sep-2012) Japan point of sales for its Kuala Lumpur-Tokyo Haneda service has expanded significantly in the two years since it launched the route, growing from initially 25% to "well over 40%" currently. AirAsia X sales in Japan are expected to increase further following the Aug-2012 launch of new sister short-haul carrier AirAsia Japan, which has significantly expanded the exposure of the AirAsia brand in the Japanese market. Mr Osman-Rani says AirAsia X has been able to successfully penetrate the Japanese market using its preferred online channel as travel agents, which are by far the most popular distribution mode in Japan, now accounting for less than 10% of AirAsia X's bookings in Japan.
AirAsia X Japanese sales grow: CEO
You may also be interested in the following articles...
AirAsia X to become the ninth Asia Pacific low cost airline serving the US, and the third in Hawaii
Malaysia’s AirAsia X is launching services from Osaka to Honolulu in Jun-2017, making it the second LCC to operate from North Asia to Hawaii and the third LCC from Asia-Pacific. The route is made possible by a combination of liberal air service agreements, providing fifth freedom rights to the Malaysian airline. The Korean Air LCC subsidiary Jin Air and Qantas subsidiary Jetstar Airways are currently the only LCCs from Asia Pacific with service to Hawaii – or any of the 50 US states.
AirAsia X secured US FAA approval in Feb-2017, ending a tedious two year process. AirAsia X ibecomes the ninth Asia Pacific LCC to secure US FAA approval and the second from Southeast Asia, after Cebu Pacific. Six Asian LCCs currently serve Guam and five serve Saipan.
Asian LCCs will inevitably also serve the mainland US. Both AirAsia X and Cebu Pacific, along with new Chinese LCCs, have the US west coast in their business plans. Cebu Pacific is the only likely low cost operator of nonstop flights from Southeast Asia to the continental US.
Korea-Japan: LCCs are poised to overtake full service airlines for first time in Northeast Asia
For the first time in Northeast Asian aviation, low cost airlines are poised to overtake full service airlines in a significant way. The market concerned is that between Japan and Korea, where LCCs are rapidly growing, while full service airlines are decreasing capacity. Overall market size and visitor figures are at record highs. This refutes any legacy airline thinking that LCCs "steal" market share; LCCs are growing the market and becoming the future – as they already are in other parts in the world.
LCCs accounted for 1% of available seats between Japan and Korea in 2009, reached 37% in 2016, and so far in 2017 will account for 49% of the market. Limited airport data indicates that LCCs, operating at higher load factors, already transport more passengers than full service airlines, and by the end of 2017 LCCs should easily account for the majority of capacity.
LCCs already fly more airport pairs than their full service counterparts. The LCC development between Japan and Korea illustrates underlying LCC opportunity in Northeast Asia but also reflects on the importance of liberalisation, and for full service airlines to have efficient cost bases.