Air Asia X’s boss has big hopes for the airline’s new supplier deal with Flight Centre, with expectations it will generate millions in profits & raise visibility around the country.
Signed last week, the commercial agreement is the first for the airline in Australia.
It comes after Air Asia X founder Tony Fernandes revealed in March this year that he expects last year’s Australian operations to have racked up millions in lost profits.
Hoping to reverse this, the airline has signed an agreement with Flight Centre, which will see the travel group promote Air Asia X products to clients travelling to and from Australia.
Products include the airline’s daily flights to Sydney; 11 times weekly to Melbourne; 12 times weekly to Perth; and five times weekly to the Gold Coast.
Speaking at the announcement, CEO Benyamin Ismail said he expects the deal will generate around $30 million in annual benefits, while further stimulating growth in the country, The Australian reported.
Although the airline signed up with Travelport earlier this year to distribute its flights through the GDS, Mr Ismail said the new agreement will see the airline limit its dealings with other big operators to focus on working with Flight Centre.
“It’ll be massive for us.’’
Benyamin Ismail, Air Asia X CEO
“It’s beneficial for both, so my short-term plan to try and build this market quickly should pay off, I hope, in the next five or six months.”
In addition to the Flight Centre and Travelport distribution, the airline is also hoping to increase its services in Australia to double daily seasonal flights from Sydney, Melbourne and Perth from November.
Mr Ismail said planes have been operating ‘quite full’ over the last few months.
“So I’m quite happy, and we should be in line at year-end to be potentially looking at double dailies and things like that.”
Benyamin Ismail, Air Asia X CEO
