AirAsia X Gets Approval to Launch US Flights
In May 2013, Norwegian Air Shuttle, an unknown low-cost carrier at the time, began flights between the US and Europe. Before Norwegian's entry, flights to Europe were cheap when they dipped under $800, and you needed an "amazing" error fare to get flights in the mid-$300s. The airline has helped usher in much cheaper transatlantic travel for people based both in the US and Europe. Not only does Norwegian continue to offer jaw-dropping fares, but it's also put pressure on the legacy carriers to drastically drop their prices to compete.
While the transpacific market has its share of low-price mainland Chinese airlines, there isn't a true low-cost carrier competing in the transpacific market. However, we may be closer to seeing that change, as AirAsia X announced that it's received the green light to start flying routes to the US.
For now, the initial route chatter is only about flights from AirAsia X's hub in Kuala Lumpur (KUL) to Honolulu (HNL). While this route won't help most of us get to Asia for cheap, this approval opens the door for AirAsia X to launch routes anywhere in the US.
That is, any city that AirAsia X will be able to reach. There's a reason that Honolulu is the only city mentioned for now. AirAsia X's fleet solely consists of Airbus A330-300s, for which Airbus lists 6,350 nautical miles as the operating range. So, Hawaii and Alaska are the only current route options to the US from the airline's KUL hub.
If you're looking for cheap mostly-lie-flats to Asia, start getting excited about AirAsia X's launch. Just like Norwegian's Premium class, AirAsia X's "Premium Flatbed" product currently offers long-haul intra-Asia flyers a chance to get out of the tight squeeze in the back for a modest cost. We're optimistic that the airline will offer the same product on flights to/from the US. If you want to get an idea what you could expect, TPG Contributor Richard Kerr had a pleasant experience flying this product in 2015 from Tokyo (NRT) to Kuala Lumpur (KUL).
Bottom Line
There's still plenty of work to come before AirAsia X will start flying routes in the US. But, today's approval is a huge step in the right direction in bringing an Asian low-cost carrier to the US market. Hopefully this will spark further competition among legacy airlines, leading to a similar price war we've seen with transatlantic flights recently.
H/T: Routes Online
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The Capital One Venture X Business Card has all the Capital One Venture X Rewards Credit Card has to offer and more. It offers an incredible welcome bonus and requires an equally impressive spend to qualify. In addition, the card comes with premium travel perks like annual travel credit. (Partner offer)Pros
- The Capital One Venture X business card has a very lucrative welcome offer.
- In addition, the card comes with many premium travel perks such as an annual $300 credit for bookings through Capital One Business Travel.
- Business owners are also able to add employee cards for free.
Cons
- The card requires significant spending to earn the welcome offer.
- Another drawback is that the annual travel credit can only be used on bookings made through Capital One Business Travel.
- LIMITED-TIME OFFER: Earn up to 400K bonus miles: 200K miles when you spend $30K in the first 3 months, and an additional 200k miles when you spend $150k in the first 6 months
- Earn unlimited 2X miles on every purchase, everywhere—with no limits or category restrictions
- Earn 10X miles on hotels and rental cars and 5X miles on flights and vacation rentals booked through Capital One Business Travel
- With no preset spending limit, enjoy big purchasing power that adapts so you can spend more and earn more rewards
- Empower your teams to make business purchases while earning rewards on their transactions, with free employee and virtual cards. Plus, automatically sync your transaction data with your accounting software and pay your vendors with ease
- Redeem your miles on flights, hotels and more. Plus, transfer your miles to any of the 15+ travel loyalty programs
- Every year, you'll get 10,000 bonus miles after your account anniversary date. Plus, receive an annual $300 credit for bookings made through Capital One Business Travel
- Receive up to a $120 credit for Global Entry or TSA PreCheck®. Enjoy access to 1,300+ airport lounges worldwide, including Capital One Lounge locations and Priority Pass™ lounges, after enrollment
- Enjoy a $100 experience credit and other premium benefits with every hotel and vacation rental booked from the Premier Collection
- This is a pay-in-full card, so your balance is due in full every month