At a time when airlines are keeping a close eye on costs amid soaring jet fuel prices, AirAsia co-founder Tony Fernandes is preparing to unveil a new carrier.
The aviation mogul has teased a launch before, but speaking to Bloomberg TV this week, Fernandes said the new airline would be announced within the next two months.
While not providing any other details, he said the AirAsia group would move some of its aircraft to the new operation. AirAsia could not comment further.
The update comes as AirAsia Group announced a record order for 150 Airbus A220s, with an option for a further 150 jets to meet demand.
AirAsia says the order completes its fleet strategy to become the first “narrowbody global low-cost carrier”, as it looks to phase out its A330 fleet in favour of a “high-utilisation” operational model.
With a range of around seven hours, the new aircraft will likely be utilised only within Asia, especially on Southeast Asian trunk routes.
But the airline told Karryon it could potentially fly to Australia’s northern ports, like Darwin and Cairns, if it were to restart those routes.
The new jets will also free up the group’s larger A330s and its future A321XLRs to focus on longer-haul routes to Europe and eventually North America.
Worth around US$19 billion (approximately AU$26 billion), the Airbus deal is the single largest order for the A220 type placed by any airline, AirAsia says.
Announced at a ceremony at the Airbus facility in Mirabel, Canada, attended by Fernandes, Airbus Commercial Aircraft CEO Lars Wagner and Canadian Prime Minister Mark Carney, the new deal also sees AirAsia become the launch customer for the plane’s high-density, 160-seat configuration.
According to the Malaysia-based airline, the new A220 is around 20 per cent more fuel-efficient and produces about 20 per cent less emissions than the A320ceo, balancing range and capacity.
“This aircraft materially improves our fuel burn and trip costs, strengthening our resilience regardless of where the cycle goes,” Fernandes stated.
“We never waste a crisis at AirAsia – we make bold decisions at the right moment, not the easiest moment.
“This order reflects our long-term discipline and the scale of our ambitions. The A220 is the perfect tool for our next phase of growth, allowing us to build the world’s first true low-cost network carrier.”
Group CEO of AirAsia Group, Bo Lingam, said the new plane’s range “opens up entirely new possibilities, and allows us to match right-sized capacity to demand”.
“We have democratised travel in Asia by opening up routes that were never feasible before, and now we are going to do it for the world,” he remarked.
KARRYON UNPACKS: AirAsia’s bold expansion plans show low-cost aviation isn’t slowing despite fuel volatility. For Aussie travellers and travel advisors, new aircraft and routes could eventually mean even more affordable Asia connections.
