International Finance

AirAsia X seeks market expansion; considers re-entering Europe

AirAsia X
Chairman Tan Sri Rafidah Aziz said that the company should consider factors including operational costs and projected revenue

Malaysia’s AirAsia X’s market expansion includes the possibility of re-entering the European region, The Star reported. AirAsia X Chairman Tan Sri Rafidah Aziz said that it’s important for the aviation giant to also factor in the operational costs and the projected revenue while considering expansion into other markets.

“We must also look at the total picture whether it can meet the challenges such the changes in oil prices, the various taxes in Europe airports and so on.

“For example, the planes that were flying to London and Paris previously were not the right plane. The cost factor was the one that literally killed us from the market,” she told the Star.

The new airplanes would allow the company to give better returns to its shareholders. However, that would be decided by the board of directors based on the management’s proposal once the aircraft is in operation. Keeping in mind AirAsia X’s market expansion, “we have to be realistic in making our decisions for the long-term,” she added.

According to AirAsia X Group Chief Executive Nadda Buranasiri, the delivered A330neo aircraft will be launched in gradual phases. “We expect that Airbus would probably be able to provide us with six aircraft a year,” he said.

The first aircraft would be launched next month and the second batch is expected to arrive in August. The aircraft will be based in Don Mueang International Airport in Bangkok.

But the company has not decided on the flying routes for the new fleet. They are still exploring markets to understand the demand and how it can be used to their advantage. “We are working it out to ensure that it will be profitable to us, while at the same time, make our shareholders and passengers happy,” he concluded.

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