AirAsia X Lauds 50 Pct Rebate For Landing Charges - Azran Osman

KUALA LUMPUR -- AirAsia X, Malaysia's long-haul budget carrier, sees the 50 percent rebate for landing charges as an opportunity to lower cost and lower fares to passengers, chief executive officer Azran Osman-Rani said today.

"As cost comes lower, we will be passing through in terms of lower fares to our passengers. When we offer low fare, more people will fly," he said when asked to comment on the 50 percent rebate for landing charges.

Under the RM60 billion second stimulus package announced by the government yesterday, rebates will be given for two years, effective April 1, to all airlines that operate from Malaysia.

"We are not afraid of competition because when we have the low-cost structure, you are the best place to offer low fares," he told reporters at the launch of AirAsia's inaugural KL-London flight that took off from the Low Cost Carrier Terminal in Sepang today.

London is AirAsia-X's fifth international destination after Gold Coast, Perth and Melbourne in Australia and Hangzhou in China.

AirAsia X will be launching a new route from Kuala Lumpur to Tianjin, China, on April 2.

Tianjin, located in northern China and 120km from Beijing, is connected to the Chinese capital via a 30-minute high-speed Beijing-Tianjin Intercity Rail service.

"We are looking at expanding further to Asia-Pacific, more destinations in China and Australia. India is also very interested and the Middle East," he said.

AirAsia X, an associate of AirAsia with shareholders including the Virgin Group and AirAsia Bhd, is a low-cost long-haul airline launched in January 2007. It commenced commercial services in November 2007.