Growth and expansion of air asia

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Growth and expansion of air asia

AirAsia X to spike new growth phase Melbourne Avalon Airport has offered airlines, particularly LCCs, an alternative option to Melbourne Tullamarine since it was privatised two decades ago.

However Avalon has, until now, struggled to carve out a significant role in the Australian market. In Feb Avalon secured the breakthrough it had been seeking for several years by gaining AirAsia X as its first international airline.

AirAsia X will move its two daily Melbourne flights from Tullamarine to Avalon later this year, as Growth and expansion of air asia as Avalon completes construction of a new international terminal.

Growth and expansion of air asia

Avalon Airport has attracted its first international airline, AirAsia Xwhich will launch services from Kuala Lumpur later this year.

Avalon Airport has only handled domestic passengers since Jetstar launched operations in Avalon Airport is keen to grow domestic traffic by attracting other domestic airlines, such as Tigerair Australia.

Avalon Airport CEO Justin Giddings discusses the launch of AirAsia X service, the rapid construction of an international terminal, and opportunities to attract other new international and domestic routes Source: Jetstar was the first airline to operate scheduled passenger services from Avalon Airport, which was purchased by Linfox from the Australian government inand has been the primary tenant of the domestic passenger terminal since it opened.

Avalon has been served by other airlines in the past. Tigerair Australia served Avalon in and and, most recently, the regional airline Jetgo Australia briefly operated a service to Avalon in AirAsia X finally gives Avalon an international airline Avalon Airport has tried for several years to attract another significant airline tenant as well as an international service.

For years Avalon has had several designs for an international terminal on the shelf, ready to be implemented as soon as it secured a tenant. AirAsia X has selected a design that Avalon initially did for another airline, for a small terminal that can be constructed in approximately only six months.

Ironically the move to Avalon will come at about the time AirAsia X marks its tenth anniversary of serving Melbourne.

Growth and expansion of air asia

Sydney was added in They have had their ups and downs a little bit but I was able to convince them that coming into Avalon will give them a really high brand profile, which is something I think they needed at this time. Sep to May Source: More flights from Melbourne beyond the initial two daily frequencies are also possible.

AirAsia X intends to pass on to passengers the cost savings generated from moving airports, which should in turn stimulate demand. AirAsia X will also benefit from using a small terminal designed to facilitate a very efficient flow of passengers. Avalon does not expect that there will be a significant change in the mix of passengers AirAsia X now has on the Kuala Lumpur-Melbourne route.

Essentially AirAsia X will carry the sameannual passengers, with a similar point of sale split for VictoriaKuala Lumpur and beyond destinations. Most passengers arriving at Avalon will make their way immediately to Melbourne. The private coach company SkyBus, which has provided a shuttle service linking Avalon with Melbourne since earlyis adding capacity at Avalon with new double decker buses to meet an anticipated increase in demand.

Avalon will try to encourage visitors arriving on the new AirAsia X flight to head straight to Geelong or the beach communities along the Great Ocean Road.

Mr Giddings pointed out that the Great Ocean Road attracts over 5 million visitors per year. However, the airport recognises that most visitors to Victoria also want to experience Melbourne.

A large proportion of Great Ocean Road visitors are day trippers to Melbourne, although the beachside communities along the road which is over km long also attract overnight visitors. AirAsia X also carries on its Australia flights significant traffic from China and Indiaboth of which are fast-growing source markets for Australia.

Some of the Southeast Asian destinations served beyond Kuala Lumpur attract significant visitor traffic to Australia, while some of the markets are attractive to Australians heading abroad for holidays.

Avalon Airport believes that over time it can attract services to several popular outbound international tourist destinations: FijiHawaii and New Zealand are high on its list, as well as Thailand. Qatar Airways recently launched services to Canberra with a stop in Sydney, which enabled it to increase capacity to Sydney without needing more traffic rights.

However, flights to any secondary destination, even if they are tagged with one of the main gateways, do not count towards the cap. Fiji Airways could also be attracted to Avalon by its open skies status.

The firm, which had exited South Africa in August, now is quite bullish about Africa as a market

Fiji Airways is not advocating for an expanded bilateral, which could lead to more LCC competition in the Australia-Fiji market. Avalon therefore potentially provides an option for expanding in the Melbourne market without opening up the risk of new LCC competition on the Melbourne- Nadi route.

Jetstar not likely to launch international services from Avalon Jetstar could also launch services from Avalon to Fiji. Jetstar currently serves Sydney-Fiji and plans to add a small number of frequencies on this route in late using the last available seats for Australian airlines in the Australia-Fiji air services agreement.

There is no spare capacity in the bilateral to support a Jetstar service from Melbourne to Fiji — a route now currently only served by Fiji Airways and Virgin Australia.

China, Thailand, air transport, low cost airlines

Avalon-Fiji would be an available option for Jetstar, but at this stage Jetstar is not interested in launching international services from Avalon.

Capacity on the core Avalon-Sydney route has increased only slightly sincewhen Jetstar introduced a fifth daily flight.Batik Air and Thai Lion have have slowed their rate of fleet expansion in , but are still growing, while Lion Air and Wings Air have barely expanded.

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Exclusive HD video interviews, photography and plenty more. Most of the domestic growth at Krabi has been driven by the launch of services in the main Krabi-Bangkok market by Bangkok Airways and Nok Air. Bangkok Airways, which previously only served Krabi from Samui, began serving the Bangkok-Krabi route at the end of Mar and Nok entered the Krabi market in early Jan © Freight Concept Limited.

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