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KUALA LUMPUR: Malaysia's long-haul budget carrier AirAsia X Thursday announced an expansion of its Australian operations amid fears that a fare battle with the national carrier could lead to its demise.
The launch comes as national carrier Malaysian Airlines (MAS) Wednesday announced it would give-away airfares to 20 regional destinations a week after AirAsia airline revealed similar offers for domestic flights.
AirAsia's group chief executive Tony Fernandes criticised MAS for copying the budget carrier's everyday low fares policy, saying it was unclear how badly Air Asia would be hit by it, the New Straits Times reported.
"The government will never allow MAS to fail but a private company? Who is going to save us," Fernandes told the daily.
"I'm not against competition but it has to be a level playing field. You can't send me into a boxing match with one hand tied behind my back," he said referring to a subsidy the government provides only to MAS for some of its international flights.
AirAsia also wants to be given equal rights to fly the Singapore-Kuala Lumpur air route, one of the region's most lucrative routes.
At present, MAS has 69 flights per week between the two neighbours while AirAsia is only allowed to mount 14 weekly flights.
AirAsia X, a sister company of budget-carrier Air Asia, will offer six return flights per week between Perth and Kuala Lumpur starting November 2, the airline said in a statement.
Perth will be the airline's second destination in Australia after its four-weekly return flight to the Gold Coast which began in November last year.
"Looking at what we've done with these two routes, we are confident of creating a bigger market in Western Australia," Fernandes said.
The airline said it plans to launch flights to Britain in the fourth quarter of 2008, with London and Manchester being considered. It is also eyeing more destinations in China as it expands its network. - AFP/ac
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