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Why Bangkok and Bali fares are set to get even cheaper

February 4, 2014 Aviation, Headline News No Comments Email Email

egtmedia59This year and early next could see the advent of exceptionally cheap fares to Bali and Bangkok, as Jetstar and AirAsia X go head-to-head competing on the routes.

AirAsia X’s new Thai subsidiary Thai AirAsia is set to launch services sometime this year between Bangkok’s Don Muang airport and AirAsia X’s existing Australian destinations, Clive Dorman reports in his aviation column in the Age. This would set it against Jetstar’s flights between Bangkok’s Suvarnabhumi airport and Australian destinations.

Thai AirAsia is a joint venture between Malaysian low-cost carrier AirAsia and Thailand’s Asia Aviation. It serves AirAsia’s regularly scheduled domestic and international flights from Bangkok and other cities in Thailand.Coles-Training_250X250px

AirAsia X is also pressing ahead with plans to establish a hub in the resort island of Bali by the end of this year. The group recently signed an agreement with a local partner to establish Indonesia AirAsia X (IAAX) and has already secured an Indonesian air service licence.

IAAX is likely to launch services by the end of this year, using 377-seat A330-300s. The new carrier plans to serve Australia and North Asia..

If AirAsia X and AirAsia use Bali to link to Australian cities, it will have major ramifications for Qantas/Jetstar and Virgin Australia.

AirAsia X’s multi-hub strategy is advancing at such speed that the possibility of head-to-head competition between Jetstar and AirAsiaX over Bali “is now a certainty”, Dorman writes.

This could bring the prospect in about a year’s time of cut-price carriers, using highly fuel-efficient aircraft, slashing prices to the bone for travel to some of Australia’s most popular holiday destinations. AirAsia X’s 377-seat A330-300s may face Jetstar’s new 335-seat Boeing 787 Dreamliners on popular Aussie holiday routes like Denpasar-Sydney and Denpasar-Melbourne.

Meanwhile, the Bangkok Post carries the news that low-cost carrier Thai AirAsia has excluded Bangkok from its latest destination promotion campaign. The campaign now focuses on other Thai cities instead – and on services that transit the Thai capital.

The airline’s action is of course short-term, in response to the current unrest in Bangkok, which everyone hopes will be well and truly over before long.

Written by : Peter Needham

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