AirAsia X


AirAsia X Berhad, operating as AirAsia X, is a Malaysian long-haul, low-cost airline and a subsidiary of the AirAsia Group. The airline was initially established in 2006 as FlyAsian Express and began by operating regional routes under Malaysia’s Rural Air Service. After encountering operational challenges, FAX transitioned to a long-haul, low-cost carrier model and rebranded as AirAsia X in 2007. It launched its first international flight in November 2007, connecting Kuala Lumpur to Gold Coast, Australia.
AirAsia X expanded its network over the following years, establishing routes to various destinations across Australia, Europe and Asia. Despite challenges such as fluctuating fuel prices and increased competition, the airline focused on strategic growth through fleet expansion and operational improvements. In 2013, AirAsia X went public with an initial public offering on the Bursa Malaysia stock exchange.
The COVID-19 pandemic in 2020 led to a suspension of operations and the airline underwent a debt restructuring process. By 2022, AirAsia X had repositioned itself for recovery and by 2023, it experienced growth, particularly in passenger numbers and route expansion. In 2024, the airline continued its recovery with a focus on international expansion, including launching flights Nairobi, Kenya and Almaty, Kazakhstan, marking its entry into the African and Central Asian markets.
In 2024, AirAsia X and AirAsia announced plans to merge under a single unified brand, AirAsia Group. This strategic move aims to streamline operations, improve efficiency and strengthen the airline's competitive position in the global market.

History

FlyAsianXpress

2006–2007: Early operations and strategic realignment

AirAsia X traces its origins to FlyAsianExpress, a regional airline established in 2006 as a subsidiary of AirAsia. The airline was tasked with operating Malaysia's Rural Air Service routes, focusing on providing affordable air travel to underserved areas, particularly in Malaysian Borneo. This initiative aimed to enhance regional connectivity and align with AirAsia's mission of making air travel accessible to everyone.
Despite its ambitions, FAX encountered operational difficulties, such as low passenger demand on certain routes, maintenance issues and occasional flight cancellations. These issues affected the airline’s ability to maintain consistent service and raised concerns about its sustainability.
By early 2007, the mounting challenges prompted calls for a more experienced operator to take over the RAS routes. On April 11, 2007, Tony Fernandes, CEO of AirAsia, proposed transferring the operations to Firefly, a subsidiary of Malaysia Airlines with greater expertise in turboprop services. After receiving government approval, the transfer was completed on April 26, 2007, ending FAX's involvement in the RAS network. The RAS flights in Malaysian Borneo were subsequently managed by a newly created airline, MASwings, owned by Malaysia Airlines.

AirAsia X

2007: Launch and rebranding of AirAsia X

The airline shifted its focus to long-haul, low-cost operations in 2007, marking a significant turning point. This transition led to its rebranding as AirAsia X in September of the same year. The name "AirAsia X" was inspired by Yoshiki, the leader of the Japanese rock band X Japan, as revealed by Tony Fernandes.
To support its launch, Richard Branson's Virgin Group acquired a 20% stake in AirAsia X to finance aircraft purchases and operations. Branson also highlighted opportunities for collaboration with Virgin Blue, including codeshare agreements and loyalty programs, to improve connectivity and passenger benefits.
On September 15, 2007, the airline took delivery of its first aircraft at Kuala Lumpur International Airport. The aircraft was named "Semangat Sir Freddie" in tribute to Sir Freddie Laker, a pioneer of low-cost aviation and founder of the Skytrain service.
The airline's inaugural long-haul flight departed from Kuala Lumpur to Gold Coast Airport in Australia on November 2, 2007, offering promotional fares as low as MYR 50. This flight marked a significant milestone in the airline's expansion into international markets.

2008–2009: Long-haul expansions to Australia, China, and Europe

Following its rebranding, AirAsia X rapidly expanded its network, starting with destinations in Australia, including Melbourne and Perth, as well as Hangzhou, China. To maintain its cost-effective model, the airline avoided high-cost airports like Sydney, focusing instead on more economical hubs to enhance operational efficiency and sustain competitive pricing.
In 2009, AirAsia X expanded its operations to Europe with the launch of direct flights from Kuala Lumpur to London-Stansted, marking its entry into the intercontinental market, later shifting the service to London-Gatwick in 2011. The airline expanded further in 2010 by adding Paris-Orly Airport to its network. This growth made AirAsia X the first budget carrier to serve the Kangaroo Route, connecting long-haul travel between Australia, Southeast Asia and Europe.
File:Air Asia X Airbus A340-300.jpg|thumb|An AirAsia X Airbus A340-300 approaching London Stansted Airport in 2009

2010–2012: Balancing growth and sustainability

After experiencing early success, AirAsia X faced significant challenges starting in 2010. Rising fuel costs and intensified competition in the long-haul sector pressured the airline’s profitability and cost management. In response, the airline reassessed its network, focusing on optimizing its routes and operations. This period marked the beginning of various adjustments aimed at maintaining its low-cost business model.
By 2012, AirAsia X had to withdraw from several unprofitable routes, such as Delhi, Mumbai, Paris and London, citing high operational costs and insufficient demand. Despite these setbacks, the airline continued to seek new growth opportunities, launching flights to Sydney in April and Beijing in June. However, it had to suspend services to Tianjin and Tehran due to economic and operational challenges. This phase of trial and error highlighted AirAsia X’s ongoing efforts to balance expansion with long-term sustainability in a highly competitive market.

2013–2018: Strengthening operations and expanding global footprint

AirAsia X made a significant move in 2013 by launching an initial public offering on the Bursa Malaysia stock exchange, raising MYR 988 million. These funds were allocated towards expanding its fleet and enhancing operations, supporting the airline’s long-term growth plans. That same year, the airline intensified its focus on the Asia-Pacific region, capitalizing on the increasing demand for affordable travel within the area.
Fleet expansion became a key priority, with AirAsia X acquiring more Airbus A330 aircraft to strengthen its long-haul network. By 2015, the airline had introduced new destinations, including Sapporo, Japan, further extending its global reach. Despite these successes, fluctuating fuel prices and heightened competition presented ongoing challenges, requiring continual adjustments to its strategies.
In response to growing demand, the airline increased frequencies on popular routes and, by 2016, placed greater emphasis on operational efficiency. This included optimizing schedules, reducing costs, and improving load factors. The introduction of new technology solutions also helped streamline operations and enhance customer engagement.
The expansion continued into 2017, with AirAsia X launching flights to Honolulu, Hawaii, in June and Jeju, South Korea, in December. In 2018, the airline moved its Melbourne operations to Avalon Airport to reduce costs while maintaining service quality. 2019, the airline had added several new international routes from Kuala Lumpur, including services to Fukuoka, Lanzhou, Taipei, Osaka, Tokyo and Singapore.

2020–2022: Navigating the pandemic and operational recovery

The COVID-19 pandemic in 2020 caused major disruptions to global travel, forcing AirAsia X to suspend its operations in March. The halt in services resulted in significant financial strain, leading the airline to begin a debt restructuring process in October 2020. In 2021, AirAsia X entered a hibernation phase, conserving its resources while preparing for a phased recovery. During this period, the airline worked on revamping its business model to ensure long-term sustainability in the post-pandemic landscape.
By March 2022, AirAsia X successfully completed its debt restructuring with court approval. The airline then began to gradually resume services, prioritizing profitable routes such as Seoul and Delhi, starting in April. This restructuring allowed AirAsia X to streamline its operations and reposition itself strategically for recovery in the evolving travel market.

2023–present: Rebuilding and the path to unification

AirAsia X’s recovery efforts gained momentum in 2023, with the airline carrying over 2.8 million passengers, a remarkable 6.8-fold increase compared to the previous year. The airline achieved a passenger load factor of 80%, driven by increased frequencies on key routes such as Seoul, Sydney and Melbourne. In Q4 2023, AirAsia X saw a 2.6-fold year-on-year growth, carrying 890,289 passengers and achieving a PLF of 82%.
The airline continued its recovery trajectory by expanding its global reach, launching its first flight to Nairobi, Kenya in November 2024, marking its entry into the African market. However, its flight path to Nairobi was cancelled after less than one year of operation due to low travel demand starting 1 September 2025. Additionally, it introduced flights to Almaty, Kazakhstan, reflecting a strategic focus on exploring underserved regions. As of 2024, the airline operates 22 destinations from Kuala Lumpur International Airport as part of its continued recovery and growth strategy.
In December 2024, Tony Fernandes, the CEO of Capital A, confirmed that AirAsia X and AirAsia would merge under a single unified brand, AirAsia Group. This strategic initiative aimed to simplify the airline's operational structure and consolidate its market presence. By uniting the long-haul and short-haul operations under one brand, the airline group sought to enhance efficiency and strengthen its position within the aviation industry.
On January 14, 2026, it was announced that AirAsia X will be simply rebranded as AirAsia from January 19, as part of the final stages of restructuring of its parent company, Capital A Berhad. From that date, AirAsia would be a unified airline brand and company. However, the airline said it has no decision yet to rename to AirAsia, but instead it is currently exploring another possible name change.