Fernandes: AirAsia X is successful because of AirAsia

AirAsia Group CEO Tony Fernandes, speaking at the CAPA-ACTE Global Summit, stated (27-Oct-2016) that medium/long haul LCC affiliate AirAsia X had to be created because in Asia Pacific routes can be up to 10 or 12 hours long compared to up to four hours for routes within Europe. "In order to serve Asia we had to come up with another model," he said. "AirAsia X is AirAsia on steroids, good steroids. We've taken it pumped it up with a few drugs and put up front a few nice seats," Mr Fernandes said. But he added AirAsia X is still focused on the same basic LCC characteristics including quick turnarounds, high utilisation rates and ancillaries. AirAsia and AirAsia X are separate companies but both have the lowest costs in their segments and are now profitable. While Mr Fernandes maintains it is necessary to keep the two airlines separate AirAsia X is only successful because of AirAsia. "If AirAsia wasn't around then it wouldn't work full stop," he said.