Air Asia X sees regional budget airlines as allies

Local low-cost carriers such as Air Arabia and flydubai can supply AirAsia X with passenger traffic from cities they serve in the region. In turn, AirAsia X can provide traffic to these UAE-based carriers from the long-haul flights it plans to operate to Abu Dhabi International Airport, said AirAsia X Chief Executive Officer Azran Osman-Rani, reported the Khaleej Times.

After starting services to Abu Dhabi from Kuala Lumpur in October, AirAsia X plans next year to make Abu Dhabi a regional hub for onward flights to cities in Europe, Africa, and central Asia. Tony Fernandes, Chief Executive Officer of AirAsia Bhd., which owns part of AirAsia X, confirmed these plans on Tuesday.

“We welcome them,” said Mohammed Al Bulooki, Vice President for airline marketing and aeronautical revenue at Abu Dhabi Airport Company. Al Balooki added that his company, which operates the Abu Dhabi International Airport, had yet to receive a formal letter of intent from AirAsia X.

Osman-Rani believes that Sharjah-based Air Arabia and Dubai’s flydubai can be de facto feeder airlines for AirAsia X in Abu Dhabi, just as Europe’s no-frills Ryanair and easyjet fill this role for AirAsia X’s flights to and from London. Without such complimentary traffic in the Middle East, AirAsia X would be unable to tap markets in Egypt, Jordan and other countries in the region, he said.

AirAsia X selected Abu Dhabi as a destination and a hub partly because of the emirate’s commitment to develop its airport as an international gateway. Abu Dhabi also offers a better customer catchment area than Sharjah, and airline competition in Abu Dhabi is less intensive than in Dubai, Osman-Rani said.

Both Emirates Airline and Malaysia Airlines fly between Dubai and KualaLumpur, whereas in Abu Dhabi, AirAsia X will have to compete only with Etihad Airways, he said.