Air Asia X offers Dh99 ticket to Malaysia
Ivan Gale
- Last Updated: August 19. 2009 10:50PM UAE / August 19. 2009 6:50PM GMT
Air Asia, one of the world’s fastest-growing low-cost airlines, gave Abu Dhabi’s tourism drive a boost on Wednesday by announcing the start of flights from its hub in Kuala Lumpur to the capital in November, cementing its status as an emerging aviation hub.
Air Asia officials said they would also seek funding from UAE investors to finance new aircraft, as it builds a strategic relationship with the emirate, including eventually using it as a stopover base for flights to Europe and Africa.
“We see an untapped market which has strong economic potential,” said Azran Osman Rani, the chief executive of Air Asia X, the long-haul affiliate of Air Asia, during a press conference on Wednesday announcing the new service. “This is part of our overall strategy in expanding into the Middle East.”
The new service will offer UAE residents a wealth of new opportunities to travel to Asia, with Air Asia and its Air Asia X affiliate flying to more than 130 destinations in China, South East Asia and Australia from its Malaysian hub. Through its no-frills business model, Air Asia said it typically offered fares up to 60 per cent lower than its competition.
Air Asia X is scheduled on Wednesday night to begin selling a limited number of promotional fares for the route on its website for Dh99 (US$26.95) one-way including taxes, and return flights for 99 Malaysian ringgit (Dh102.56).
“This is great news for the Abu Dhabi market,” said Jimmy el Murr, the general manager of Salem Travel, one of the largest travel agencies in the capital. “Even for people who normally travel once a year, their low fares mean people will be able to travel more often.”
Air Asia X will serve the route with five flights a week initially, but may expand as it begins using Abu Dhabi as a refuelling base and stopover hub.
From Abu Dhabi, it plans to serve destinations not covered extensively by existing Gulf airlines, such as Spain and Scandinavia, steering clear of Middle East cities already well-served by existing carriers, Mr Rani said.
After receiving start-up financing two years ago from Virgin Group of Britain, Manara Consortium of Bahrain and Orix Corporation of Japan, Air Asia X plans to court Abu Dhabi investors when it embarks on another fund-raising drive next year.
“We need a stronger equity base after 2010,” Mr Rani said, adding that sovereign wealth funds had expressed interest in previous private placements, but did not end up participating.
Air Asia X is the largest airline to start services to Abu Dhabi in the past few years, representing a coup for Abu Dhabi Airports Company (ADAC), which beat out rival bids from Dubai and Bahrain to host the budget airline, voted the world’s best by Skytrax, the UK-based consultancy.
ADAC has lobbied extensively to bring new carriers to the capital and fulfil its mandate under the Plan Abu Dhabi 2030, which calls for a rapid increase in tourist numbers.
The airline had originally planned to launch flights to India this year, leaving Abu Dhabi until next year. But those plans were reversed after learning of the massive investment Abu Dhabi was putting into its tourism drive, Mr Rani said. “We decided to be here in the early stages as Abu Dhabi gains global prominence.”
With the addition of Air Asia X, Abu Dhabi airport is becoming a budding hub for budget travel, complementing services into Saudi Arabia via Nas Air and Sama. Air Asia X officials said they expected to carry as many as 100,000 pilgrims transferring to these Saudi budget airlines in Abu Dhabi, as well as on a proposed direct flight on Air Asia X from Kuala Lumpur to Jeddah.
The focus on budget travel in Abu Dhabi puts a new face on the emirate’s tourism strategy. The Abu Dhabi Tourism Authority had positioned the capital as a developing hub for upmarket travellers with plans including a Louvre museum and hosting the Formula One Grand Prix. However, the downturn had encouraged Abu Dhabi to broaden its target audience, said Mr Rani.
igale@thenational.ae
Air Asia officials said they would also seek funding from UAE investors to finance new aircraft, as it builds a strategic relationship with the emirate, including eventually using it as a stopover base for flights to Europe and Africa.
“We see an untapped market which has strong economic potential,” said Azran Osman Rani, the chief executive of Air Asia X, the long-haul affiliate of Air Asia, during a press conference on Wednesday announcing the new service. “This is part of our overall strategy in expanding into the Middle East.”
The new service will offer UAE residents a wealth of new opportunities to travel to Asia, with Air Asia and its Air Asia X affiliate flying to more than 130 destinations in China, South East Asia and Australia from its Malaysian hub. Through its no-frills business model, Air Asia said it typically offered fares up to 60 per cent lower than its competition.
Air Asia X is scheduled on Wednesday night to begin selling a limited number of promotional fares for the route on its website for Dh99 (US$26.95) one-way including taxes, and return flights for 99 Malaysian ringgit (Dh102.56).
“This is great news for the Abu Dhabi market,” said Jimmy el Murr, the general manager of Salem Travel, one of the largest travel agencies in the capital. “Even for people who normally travel once a year, their low fares mean people will be able to travel more often.”
Air Asia X will serve the route with five flights a week initially, but may expand as it begins using Abu Dhabi as a refuelling base and stopover hub.
From Abu Dhabi, it plans to serve destinations not covered extensively by existing Gulf airlines, such as Spain and Scandinavia, steering clear of Middle East cities already well-served by existing carriers, Mr Rani said.
After receiving start-up financing two years ago from Virgin Group of Britain, Manara Consortium of Bahrain and Orix Corporation of Japan, Air Asia X plans to court Abu Dhabi investors when it embarks on another fund-raising drive next year.
“We need a stronger equity base after 2010,” Mr Rani said, adding that sovereign wealth funds had expressed interest in previous private placements, but did not end up participating.
Air Asia X is the largest airline to start services to Abu Dhabi in the past few years, representing a coup for Abu Dhabi Airports Company (ADAC), which beat out rival bids from Dubai and Bahrain to host the budget airline, voted the world’s best by Skytrax, the UK-based consultancy.
ADAC has lobbied extensively to bring new carriers to the capital and fulfil its mandate under the Plan Abu Dhabi 2030, which calls for a rapid increase in tourist numbers.
The airline had originally planned to launch flights to India this year, leaving Abu Dhabi until next year. But those plans were reversed after learning of the massive investment Abu Dhabi was putting into its tourism drive, Mr Rani said. “We decided to be here in the early stages as Abu Dhabi gains global prominence.”
With the addition of Air Asia X, Abu Dhabi airport is becoming a budding hub for budget travel, complementing services into Saudi Arabia via Nas Air and Sama. Air Asia X officials said they expected to carry as many as 100,000 pilgrims transferring to these Saudi budget airlines in Abu Dhabi, as well as on a proposed direct flight on Air Asia X from Kuala Lumpur to Jeddah.
The focus on budget travel in Abu Dhabi puts a new face on the emirate’s tourism strategy. The Abu Dhabi Tourism Authority had positioned the capital as a developing hub for upmarket travellers with plans including a Louvre museum and hosting the Formula One Grand Prix. However, the downturn had encouraged Abu Dhabi to broaden its target audience, said Mr Rani.
igale@thenational.ae