AirAsia X Confirms New Osaka Route

Long-haul, low-cost operator AirAsia X has confirmed that it will inaugurate flights from Kuala Lumpur to Osaka Kansai International from November 30, its second destination in Japan. The airline will offer four flights a week to the city, the commercial centre of Japan and popular gateway to the historical cities of Kyoto and Kobe. It will use an Airbus A330-300 configured with 12 Premium and 365 Economy seats.

The new route is the first of a number of destinations that are expected to be added to the AirAsia X network over the next six months and follows the Malaysian Transport Ministry approving an application for new licences. These include services to Jeddah, Shanghai and Beijing, the latter set to be confirmed later this month subject to Chinese regulatory approval.

The Kuala Lumpur – Osaka Kansai International route is already served six times weekly by Malaysia Airlines. An estimated 88,000 O&D passengers travelled on the route in the past year, slightly down on the previous 12 months, due to Japan Airlines (JAL) suspending its own services on the route as part of its business restructuring. This has meant Malaysia Airlines has strengthened its own position in the market boosting its market share from 74 to 79 per cent and increasing average fares one-way fares from $856 to $915.

AirAsia X’s arrival, albeit on a reduced frequency will impact these statistics but following this week’s collaboration agreement between Malaysia Airlines and the wider AirAsia group there will certainly be efforts taken to maintain strong yields, although AirAsia X expects to stimulate the market more than simply taken custom away from its partner.

“We estimate that more than 60 per cent of AirAsia X passengers to and from Osaka will be first time visitors, which will contribute significantly to tourism growth, allowing AirAsia X the opportunity to open up new market segments from Osaka,” said Azran Osman-Rani, Chief Executive Officer, AirAsia X. “With more than a three million population, Osaka comprises the largest segment of the Keihanshin area, which also includes Kyoto, and Kobe, Nara and is Japan’s second most populous area with more than 18 million residents.

Images: Airbus, AirAsia X