AirAsia to launch low-cost Europe-Asia carrier

London: Tony Fernandes, chief executive of AirAsia, the leading Asian low cost airline, is planning return fares for routes between Europe and Malaysia in the range of £130 to £170, when he launches the world's first low cost long-haul scheduled carrier since Freddie Laker's ill-fated Skytrain in the late 1970s.
The pioneering venture, which will be followed closely by the global network carriers fearful of the threat such start-ups could pose to their traditional businesses, was aiming to be 50 to 60 per cent below the lowest fares offered by other airlines, Mr Fernandes said in an interview with the FT.
The airline, which will be based in the Malaysian capital, would develop a network of medium and long-haul routes to China, India, the Middle East, Australia, Japan, Korea and Europe including London Stansted, Europe's biggest centre for low cost operations.
The duration of flights would be in the range of four to 12 hours with an average of around 7 hours. "Medium-haul in Asia is the sweet spot," said Mr Fernandes. The launch route is expected to be to Australia with Europe to follow within six months.
20/04/07 Kevin Done/Euro2day, Greece

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Categories: Foreign Apr 2007, Low Cost General Apr 2007, New Apr 2007