Air Asia X eyes offshore Bali hub for Australia (travelmole.com)

February 4, 2014

News that budget long haul operator Air Asia X plans to set up a hub in Bali signals significant change is coming to airline operations, not just in Indonesia but in the wider region.

A Centre for Asia Pacific Aviation (CAPA) analysis of Air Asia’s Bali strategy “has profound implications for Australia’s carriers”, according to aviation commentator, Ben Sandilands.

He believes AirAsia, the group, is doing what Jetstar was clearly intending to do for Qantas, by setting up offshore ventures to fly to and from Australia from a lower cost base, “rather than serve the market by flying from a higher cost base in Australia and then coming back”.

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Tags: Air Asia X, AirAsia, budget airlines, low cost, Qantas