AirAsia X confirms 20 percent investment by Virgin Group

Virgin Group has decided to acquire 20 percent stake in new low-cost long-haul airline AirAsia X, which aims to cover destinations more than four hours in flight duration from Kuala Lumpur.

Financial details weren’t disclosed.

The new airline has franchised the AirAsia brand from AirAsia Berhad and it intends to complement the existing AirAsia network.

Founder and Director of AirAsia X, Tony Fernandes, said, “AirAsia X aims to dramatically expand the market for long-haul, value-based travel – both leisure and business related, and reinforce Malaysia’s status as a low cost aviation pioneer, through achieving an industry leading Cost per ASK (available seat kilometre) of less than 2.0 US cents.”

He added, “AirAsia X will simplify the current long-haul product and provide highly affordable, value-for-money travel without sacrificing core passenger comforts essential over longer flight times.”

Having leased an Airbus 330 and confirmed orders for 15 new A330-300s, AirAsia X is well on its way to commence its operations in the fourth quarter of 2007 with non-stop services from its Low Cost Carrier Terminal hub in Kuala Lumpur to points in Asia Pacific which will be announced in due course.