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Air Asia to serve the US West Coast via Japan by 2020
For him, Japan is a crossroads between Asia and the Western world. AirAsia's ambition will intensify regional competitiveness, especially with Japan's full-service airlines, which have long been dominating long-haul services to the Western markets and further increasing price pressures. "For us, Japan is a great place to go, as it only needs 12 hrs to L.A. or San Francisco and 10 hrs to Europe," says Fernandes. 2.
Some of the new Airbus A330neo wide-body aircraft will be used for long-haul missions. The Group' s long-haul AirAsia X will operate services to the western part of the country via Japan either from Malaysia or Thailand. In June 2017, AirAsia X took off from Kuala Lumpur for Hawaii with a stop-over in Osaka, making it the first low-cost airline to operate this flight, which was monopolised by full-service airlines such as the national ANA Holdings and Japan Airlines.
In May, she said she would offer a special price of only 12,900yen a day ($116) on each flight, starting four weekly departures. In spite of its successful track record, the business has not yet received Nagoya marketing authorisation.
In his speech, he lamented that "regulatory authorizations in Japan are so slow" and that "the regulator should make it easier to do business". "The AirAsia Group has grown strongly in Japan. Thailand AirAsia X took off on Bangkok-Sapporo in April and Bangkok-Nagoya starts in October. The group will, however, discontinue the Tokyo-Jakarta flight at the end of September.
It was only opened in May, but full-service airlines predominate in the industry, which is often used by corporate travellers. There is plenty of room for expansion in Japan in comparison to Southeast Asia, where there are many low-cost airlines. Ryu Tanji, Professor of Airline Economics at J.F. Oberlin University, says that in 2017 50% of Malaysia's and 38% of Indonesia's foreign air traffic was operated, but only 23% from Japan, underlining the company's upside.
Recently ANA recently announces that it will be consolidating its low-cost carriers to begin operations to Southeast Asia, while JAL said that it intends to start a low-cost airlines from Japan to Europe, and the new US-AirAsia plan to service the West is marking its second try. In 2012, it retired from Europe and reduced the number of services from Kuala Lumpur to London and Paris due to the high expenses associated with the increase in the price of gas.
She is now hoping that the new development will make the long-term flight budgets with better gasoline economy and higher seating capacities viable. The MIDF Investors bench has concluded that AirAsia X's new order for the two-aisle Airbus A330neo will cut aviation propellant by 25% in comparison to similar sized airplanes.