AirAsia X: "One of the most important and compelling insights we've been able to derive over the past two years is that when you fly long-haul you have to use these big, widebodied jets. So it means to fill up those planes every day you cannot just rely on point-to-point traffic, you have to rely on the connection feed. And what we've realised is that you don't need all these sophisticated codesharing, inter-aligning alliances, getting computer systems to talk to each other and payment settlement systems that just add so much complexity and cost. We realised that people today can buy two tickets on the internet. They can buy separate tickets from Germany to Stansted in the UK and from Stansted to Kuala Lampur very easily and still connect," Azran Osman-Rani, CEO. Source: Emirates Business 24/7, 28-Aug-09.
AirAsia X sees no need for codesharing or complex distribution
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London-Singapore becomes world's longest LCC route as Norwegian enters: Long haul low cost, Part 1
European LCC group Norwegian is to launch service from London Gatwick to Singapore on 28-Sep-2017. London-Singapore will become the longest route in Norwegian’s network – and the longest route by any LCC globally.
London-Singapore is a large market but is currently only served nonstop in both directions by Singapore Airlines (SIA) and British Airways. Norwegian should be able to stimulate new demand and attract passengers who are now flying on competitively priced one stop products.
There will also be opportunities to carry passengers beyond London and Singapore. However, Norwegian will need to rely mainly on end to end traffic.
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.