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FEBRUARY 2017

Week 7

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Malindo goes long-haul as AirAsia X reshapes its network

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February 17th 2017

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Malindo Air, a subsidiary of Indonesia’s Lion Air Group, will launch its first long-haul route next Tuesday, from Kuala Lumpur to Jeddah, building from a twice a week service to daily from March 25 with a B737-900ER. Read More » The service will include a technical stop in Ahmedabad. Malindo plans to acquire A330-300s but has not specified delivery dates.

 “We are delighted to provide another traveling option at affordable prices for our Muslim guests from Malaysia and throughout the region to Jeddah, which is the main gateway to the holy cities of Makkah and Madinah for their holy pilgrimage of Hajj and Umrah," said Chandran Rama Muthy, CEO of Malindo. "At the same time, Malindo Air will provide KLIA as a hub for Saudi tourists to visit Malaysia and the Far East," he added.

Malindo will be going head-to-head with AirAsia X, Malaysia Airlines (MAB) and SAUDIA on the route. AirAsia X has an approximate 23% market share, MAB holds about 26% and the remainder is taken by SAUDIA.

In separate news, AirAsia X has announced its withdrawal from its three a week Kuala Lumpur-Mauritius route from March 25, five months after launching the destination. “The suspension of the Mauritius route is part of the company’s network restructuring aimed at improving operational efficiencies in terms of aircraft utilizations," it said. "It is also to accelerate capacity growth in AirAsia X key markets of Australia, China, Taiwan, Japan and Korea."

A pioneer in the long-haul budget market, AirAsia X has had a few setbacks. Its A330 flights to Christchurch, Tianjin, Abu Dhabi, Adelaide, Nagoya and Haneda failed to deliver good numbers and have been terminated, usually within a year of launching.

In the interim, AirAsia X has officially confirmed June 28 as the launch date of a four-weekly Kuala Lumpur-Osaka-Hawaii service. "This is the game-changing destination we have all been waiting for," said AirAsia Group CEO, Kamarudin Meranun.

"We wish to thank all relevant authorities and governments for their support. Their vote of confidence made today's unique route launch possible. We will continue to work closely with all parties to ensure we can connect more people through this flagship intercontinental route."

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