Europeans Puzzle At Viability Of AirAsia's Budget Fare Long Haul

Frankfurt: The recent announcement by AirAsia Bhd, Malaysia's leading low-cost carrier, to start a regular service between Asia and the United Kingdom from July will mean that it will be the first low-cost airline to serve a long-haul route.
The undertaking has also led to a vibrant debate in both Europe and America over the viability of such a service.
German experts say that the undertaking is inherent with high risks.
Quite a few analysts in Europe are scratching their heads over how he would sustain the low fares on AirAsia X for long-haul flights from Malaysia to Europe, China and India.
European analysts point out that such an undertaking for routes from Asia to Europe are replete with some risks for the five-year old airline in which Fernandes controls half of the equity capital of the parent company Fly Asia Xpress (Fax).
As a result, rumours were flying that Fernandes was also going to enter into cooperation with low-cost European airlines. But the British low-cost airline Easyjet and Virgin Atlantic, whose names have often cropped up as a potential partner of AirAsia X, have dismissed reports about the creation of a worldwide alliance with AirAsia.
Easyjet's spokesperson stated categorically that the airline was not interested in becoming part of any alliance.
But many Europeans and Americans have been closely monitoring the development of AirAsia from its birth to what may now seem to be a phase of maturity.
27/01/07 Bernama, Malaysia

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