Air Asia X reveals its second Australian base

[futaris]

Air Asia X reveals its second Australian base

After successfully launching the Kuala-Lumpur – Gold Coast service with $99 fares, Air Asia X is looking at expanding its operations in Australia by flying into Melbourne, the HeraldSun reported on Monday.
According to Air Asia X chief executive Azran Osman-Rani, the large Malaysian student population in Melbourne was one of the reasons for developing the base there. Although the airline is currently in talks with Avalon and Tullamarine airports, Avalon has been tipped as the most likely home for the budget carrier.
Air Asia X has enjoyed 80 percent capacity on its Gold Coast route and expects similar rates for the new Melbourne service. Despite this, maintaining its on-time performance will be important for Air Asia X, especially given that more than half of its Australian passengers use the Gold Coast-Kuala Lumpur flight as a jumping point for travel elsewhere.
Services are expected to commence once Air Asia X receives its second aircraft in September.

 

[lovetravellingoz]

" especially given that more than half of its Australian passengers use the Gold Coast-Kuala Lumpur flight as a jumping point for travel elsewhere."


You would think that they might prefer Melbourne To Avalon as well then as jumping off on other airlines will be a lot easier and cheaper for passengers.

Though a lot more Malaysian Students and business people may find Melbourne attractive asa destination in its own right.

 

[serfty]

...
You would think that they might prefer Melbourne To Avalon as well then as jumping off on other airlines will be a lot easier and cheaper for passengers. ...

I'm sure they would prefer MEL to AVV.

I guess it's down to a matter of cost.

 

[dajop]

I'm sure they would prefer MEL to AVV.
.

Not necessarily, Air Asia goes from the LCCT at KLIA and it takes about 60 minutes to reach there from KL via coach (or about 50 mins using KL express train + bus from main terminal if connection is good). Compare with the 30 mins it takes to get the main terminal at KLIA via express train, yet Air Asia are quite successful. MEL/AVV not dissimilar - 20-30 minutes on Skybus to MEL, 50mins to AVV. The $$ on the fare seem to count more than the time/inconvenience factor at this end of the market.

 

[serfty]

... I guess it's down to a matter of cost.

... The $$ on the fare seem to count more than the time/inconvenience factor at this end of the market.

Exactly, I have no doubt AVV mgmt are falling over backwards to try to get their business. One of the ways do to this is to be significantly less expensive to operate from AVV than MEL.

This to offset the reduced PAX bookings and general inconvenience of operating from AVV.

 

[oz_mark]

What sort of immigration and customs facilities do the have at AVV?

 

[N860CR]

There's none at the moment, however its been spoken of before. I dare say if Air Asia are able to convince Linfox to (at least partially) fund Intl facilities at AVV, we'll probably see JQ launch some Intl flights from there too (save connecting interstate pax on QF flights)

 

[lovetravellingoz]

I'm sure they would prefer MEL to AVV.

I guess it's down to a matter of cost.

Yes I understand that...but my point was that IF they believe that they will be reliant on a large % of passenges who want to connect. that they may have to consider connecting costs as well.

I agree that the time lots is less of a factor...but large ground costs AVV-MEL could deter.


Given the distance and lack of flights to AVV I would imagine that the ground cost of transferring to MEL would more than offset the cost of less airport costs at AVV. lack of traffic may prevent fora whilea low cost connection between the two to meet each and every flight leaving connectors to bus into the city...and then onto MEL.



Now part of Air Asia' streagy may well be to use AV asa hub for its operations and not just asa destination connecting to other airlines at MEL.

Or the intent may be that AVV be upgraded with more LCC flights from various operators...so that it becomes a low cost hub.

 

[JohnK]

To me AVV would not be a viable alternative especially if the majority of travellers are going to be connecting to other flights through MEL. What you will save in airfares you will end up spending on taxi fares.

Isn't this one of the issues with Ryanair and Easyjet in Europe? Their airfares are dirt cheap but they fly to remote airports where the taxi fares are astronomical if you want to get back to civilisation....

 

[dajop]

What you will save in airfares you will end up spending on taxi fares.

Somehow I think Air Asia's target market is not the group of people who are going to jump in a taxi at the first opportunity. Whether at MEL or AVV taxi's are going to be greater than $50 for most. I think Air Asia's market is more the bus or drive and park type (and AVV's parking is lower than MEL's). And as for connecting pax, again LCC's aren't famous for their consideration of connecting pax, I wonder how many have considered flying to OOL to access Air Asia services from there? (I bet though, many have considered driving there from Brisbane, which is further than AVV is from Melbourne).