$10 from KL to London: Air Asia X looks at India too

New long-distance budget airline Air Asia X (AAX) wants to fly to India, but says it will announce its first Australian destination within days. The carrier, an offshoot of Asia's biggest low cost airline Air Asia, has unofficially declared a price war by announcing that its promotional fares to London will start from $10!

AAX hopes to fly to Australia for its inaugural flight from its Kuala Lumpur base as early as September, and will offer Australians fares to the Malaysian capital that are 30 to 50 per cent cheaper than the competition. A host of far flung places, including the UK, Middle East, India and China, are next on the itinerary. Air Asia X's new chief executive Azran Osman-Rani was in Australia earlier this week, holding talks with airports around the country.

Air Asia X has leased one plane and is looking for a second, while it awaits 15 new Airbus 330s it has ordered, for which deliveries will start late next year. Discussions are also underway with two cities in China and one in India. Promotional fares would include $10 (A$11.30) tickets to London on selected flights, but regular fares would still be significantly cheaper than full service carriers, Osman-Rani said.