Air Asia X, which launched its Kuala Lumpur-Sydney direct flight today, is already looking at Adelaide as the next city for its expansion in Australia.
Air Asia X chief executive officer, Azran Osman-Rani said talks on this are only at the preliminary stage and it will not happen this year but in 2013.
He was speaking to Malaysian journalists following the launch of the airline's Kuala Lumpur-Sydney route at the Museum of Contemporary Art Centre in Sydney.
The inaugural Kuala Lumpur-Sydney flight, which takes off on April 1, will be offered at a one-way fare of RM199. This is the lowest fare ever offered to this city by air from the Malaysian capital.
Fares for Australians flying into Kuala Lumpur will start from A$99.
Azran said the low-cost long-haul airline expects to see a revenue of RM16 million in its first year of operations into the Kuala Lumpur-Sydney route.
He also reiterated that while there was much speculation on the reasons for Air Asia X to recently suspend flights to four cities, namely Paris, London, New Delhi and Mumbai, it was purely a business decision.
Despite passenger traffic being high, the high fuel cost, introduction of a carbon tax in Europe (effective) and tax issues in India, were really the reasons for the pullout, he said.
Azran also said the withdrawal from the four cities had nothing to do with its collaboration with Malaysia Airlines (MAS).
The review of the sectors had started in 2010 and even before AirAsia's collaboration with MAS.
"This was really an Air Asia X decision. We decided that rather than go into many markets and stretch ourselves thin, we would focus on the core markets, where potential for growth was high.
"There are immense opportunities in the Asia Pacific. The strategy is for few countries, multiple cities and economies of scale. We are looking at Australia, Japan, China, Taiwan, and also Tehran," he said.
On whether Air Asia X would still be competing with MAS, Azran said that would be the case as with all the cities it was flying to.Air Asia X currently flies to the Gold Coast, Melbourne and Perth in Australia.
However, he said it is clear that the workable model for MAS, is in it being a premier airline offering premier products and services, and its real competitor would be other premier airlines.
Meanwhile, the Air Asia X Kuala Lumpur-Sydney flight has been lauded as a significant development for both the Australian and Malaysian tourism industries.
Sandra Chipchase, the chief executive officer of Destination NSW (New South Wales), said the new service would eventually generate around 55,000 more international visitors to the state annually.
She also said at the end of September last year, NSW welcomed 46,000 visitors from Malaysia.
"Visitor expenditure to NSW from Malaysia totalled A$142 million, an increase of over 75 per cent from the previously," she added.
Chipchase said the new AirAsia X service is expected to increase this income further.--BERNAMA
