AirAsia X to launch Perth service amidst fare wars

KUALA LUMPUR – Malaysia’s long-haul budget carrier AirAsia X yesterday announced that it will expand its Australian operations amid fears that a fare battle with Malaysia Airlines (MAS) could lead to its demise.

The announcement of the new service comes in the wake of MAS’ Everyday Low Fares promo that would give away airfares to 20 regional destinations, one week after AirAsia revealed similar offers for its flights.

AirAsia chief Tony Fernandes criticised MAS for copying the budget carrier's everyday low fares policy, saying it was unclear how badly AirAsia would be hit by it, a local broadsheet reported.

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’s sister company, AirAsia X, will offer six return flights per week between Perth and Kuala Lumpur starting November 2.

Perth will be the airline's second destination in Australia after the Gold Coast.