Air Transport World


The Malaysian carrier continues its stellar rise as the region's premier LCC, posting increased profits despite fuel hikes and soon to take over most of Malaysia Airlines' domestic network. Under a rationalization program, AirAsia will operate up to 96 routes with MAS handling only 19. The belief is that with a unit cost of 2.42 cents per ASK it can succeed on the social obligation routes that long have been money-losers for higher-cost MAS. The handover is due to begin in August. Meanwhile, it is in the process of absorbing 60 A320s that are replacing its current fleet of 737-300s.

In the second quarter to Dec. 31, 2005, AirAsia was able to boost its profit by 20.3% to MYR53.4 million ($14. …

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