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Home / Business / Companies / Airlines

AirAsia X returns to New Zealand - how far can it push down fares on the Tasman?

Grant Bradley
By Grant Bradley
Deputy Editor - Business·NZ Herald·
17 Jul, 2022 05:27 AM4 mins to read

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Malaysia's AirAsia X is returning to New Zealand via Sydney after starting here twice before. Photo / Supplied

Malaysia's AirAsia X is returning to New Zealand via Sydney after starting here twice before. Photo / Supplied

Low-cost carrier AirAsia X is returning to New Zealand with flights between Malaysia and Auckland via Sydney later this year, bringing much-needed competition on the Tasman.

The three-times-a-week service will use a widebody Airbus A330 and marks a return of the airline which pulled out of this country early in 2019 (well before the pandemic) as part of network restructuring.

It will resume flights in November as part its global rebuild and promises low lead in fares between Sydney and Auckland where some one-way flights on other airlines have been topping $1000 at busy times this year.

AirAsia X is selling one-way seats between Auckland and Sydney for as low as $169 one way. Premium flatbed fares start at $499 on the Tasman.

One-way economy fares from Auckland to Kuala Lumpur start at $499 and premium at $1999.

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On the Tasman, Air New Zealand and Qantas now have a bigger share of traffic than they had before the pandemic and aren't yet flying at pre-Covid capacity. Virgin Australia was the third player on the Tasman before Covid but is concentrating on the more lucrative Australian domestic market and is yet to announce a return to the Tasman. Latam flies between Sydney and Auckland on its Santiago route and Qatar flies via Adelaide to Doha but the airlines don't promote their five times a week transtasman legs heavily.

AirAsia X has 12 lie-flat premium class seats, and also has a child-free "Quiet Zone" on its A330-300s.

The area is reserved for passengers aged above 10 and comprises the first seven economy class rows immediately after the premium cabin. In all there are 365 economy seats.

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AirAsia X is the long-haul arm of Air Asia and both are part of a wider group with the new name, Capital A, reflecting its increasingly broad business beyond airlines.

Air Asia X suffered badly when Covid hit because it was a long-haul carrier when borders were shut. It has had to re-negotiate debt last year but is building back aggressively.

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Today it has announced services to Melbourne and Perth in Australia as well as Auckland.

''These three key routes boost the airline's robust growth plans with 13-routes set to be operating this year, including Sydney, New Delhi, Seoul, Tokyo, Sapporo, Osaka and Honolulu as well as London, Dubai and Istanbul,'' said chief executive Benyamin Ismail.

An AirAsia X Airbus A330 aircraft will be used on Kuala Lumpur-Sydney-Auckland route.  Photo / Supplied
An AirAsia X Airbus A330 aircraft will be used on Kuala Lumpur-Sydney-Auckland route. Photo / Supplied

The airline wanted to increase the frequency to daily flights by the first quarter of next year.

"We are thrilled to recommence our services to Australia and New Zealand as a core part of our expansion strategy,'' said Ismail.

''After a two-year hiatus we are back stronger than ever and proud to renew our commitment to making medium to long-haul air travel affordable once again for everyone in this region as well as across Asean.''

Auckland Airport general manager customer and aeronautical Commercial Scott Tasker said AirAsia X would be very welcome.

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''The new service will not only provide more choice for transtasman travellers looking for competitive fares on the popular route between Sydney and Auckland but is a great option for those wanting to connect through to AirAsia's extensive Asian network.''

The widebody A330 added substantial cargo capacity, which is great news for freight operators and exporters looking for options through to Sydney and beyond into Asia, said Tasker.

The airline previously operated flights to Auckland via Gold Coast Airport in Queensland but cut the Auckland leg of this service in February 2019

When it started those flights, in 2016, it offered $99 one-way fares.

The airline flew to Christchurch from Malaysia for a short time but quit the service as demand dropped following the 2011 earthquakes.

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