AirAsia plans to launch world’s first low-cost network carrier

AirAsia has unveiled its plans to launch the world’s first low-cost network carrier, drawing on 22 years of its multi-hub strategy through its subsidiaries in Malaysia, Thailand, Indonesia, the Philippines, and soon Cambodia. The announcement was made during a welcoming ceremony of Christian Scherer, recently appointed CEO of the commercial aircraft business of Airbus, to AirAsia’s corporate headquarters in Malaysia. “All of our achievements, including becoming one of the largest and most popular airlines in the world, have been possible with our great partnership with Airbus” explained Tony Fernandes, CEO of Capital A (the umbrella company for the AirAsia group of airlines). The proposed low-cost network carrier will follow a hub-and-spoke model with a number of additional virtual hubs to span Asia, Europe, Africa and the US in the future. AirAsia currently has an orderbook of 647 aircraft with Airbus to be delivered over the next decade. The introduction of the A321XLR (and potentially A321LR) will “gradually replace our workhorse A320 predecessor over the coming years from our key hubs including Kuala Lumpur, Bangkok, Jakarta, Manila and more,” added Fernandes.