AirAsia X CEO Azran Osman-Rani told (06-Sep-2012) CAPA's LCCs & New Age Airlines in North Asia conference in Macau, cargo now accounts for over 5% of revenues at the low-cost, long-haul carrier. Mr Osman-Rani said, "cargo is a booming sector for us. It's grown from 2% of our revenue to over 5%. (Cargo) load factors are now well above 50%. It's a significant margin contributor to our business. It continues to grow." Association of Asia Pacific Airlines director general Andrew Herdman added there should be opportunity for AirAsia X to further grow its cargo revenues, pointing out at full service carriers in Asia cargo typically accounts for "close to 10%" of revenues on passenger flights.
Cargo now accounts for over 5% of revenues at AirAsia X: CEO
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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.