Air Asia X To Serve Iran

From its base in Kuala Lumpur, AirAsia X currently serves ten destinations with wide-bodied equipment:

Source: Flightbase, 14-20 Sep 2010

On August 2, Air Asia X announced a new daily direct service linking Kuala Lumpur with Seoul Incheon. The route will be its 12^th destination in the network (after Tehran), starting on November 1.

On the Kuala Lumpur-Tehran sector, Iran Air currently offers the route on a four-times weekly basis with B747s.

The only other service from Malaysia to Iran is operated by Mahan Air, which flies from Mashad to Kuala Lumpur once a week with A310s. Mahan Air is currently restricted by the existing air service agreement between Malaysia and Iran.

According to IATA BSP data, over 90,000 O&D passengers flew between Tehran and Kuala Lumpur from May 2009-2010 and Iran Air currently has an 88% share of this market. While Emirates is the leading indirect carrier, capturing 8% of the O&D market via its Dubai hub.

Why has Air Asia X Chosen To Serve Iran?

Business links between Iran and Malaysia were recently strengthened as Iran has reached a deal with a Malaysian firm concerning a $1bn investment to develop Iran's Resalat oilfield in the Persian Gulf. Plans are also underway to link the Stock Exchanges of Iran and Malaysia whilst Iran has indicated that it is ready to provide opportunities for Malaysian companies to invest in Iran.

Malaysia is a growing holiday destination and there is high demand for flights from the major Iranian tour operators. Malaysia is a very popular holiday spot for Iranians and in return many Malaysians visit Iran for Islamic tourism.

Air Asia X's Senthil Balan, head of strategy, airports and planning spoke to Routes News about the strategy behind its decision to serve Iran: "AirAsia X intends to develop strong inroads in the Middle East. There is tremendous demand for travel between Iran and South East Asia - from a trade, tourism and education perspective. And we expect demand for travel from South East Asia to be equally strong."

"Tourist arrivals from Iran was one of Malaysia's highest source growth markets in 2009. We expect our competitive pricing and innovative service offering to complement existing flights on offer as we grow the overall Malaysia-Iran market."