KUALA LUMPUR (Jan 12): This year is set to be the strongest year for AirAsia X Bhd, as co-group chief executive officer (CEO) Tan Sri Tony Fernandes indicated several growth strategies of the group in a series of tweets earlier today.

Firstly, reallocation plans for routes are in place, Fernandes said. He added the strategy would translate into reduction in costs. This involves transfer of more-than-four-hour-long routes from AirAsia Bhd to AirAsia X.

“AirAsia will be transferring routes that are over 4 hours to AirAsia X, as they have matured and [we're] using that capacity for the more profitable, shorter haul routes. Win win,” he said in one tweet.

For now, AirAsia X “does not feel the long haul market is ready”, and is not looking to fly long-distance to cities such as Berlin and London, Fernandes added.

“[Firmly focused] on medium haul routes,” another tweet read.

AirAsia X currently serves 26 destinations across Asia, Australia, New Zealand, the Middle East and the US.

“Predicting this will be a record year for AirAsia X. Further route reallocation and a reduction in costs. Thai AirAsia growing from strength to strength,”Fernandes added in his tweet.

In a statement complementing its 3QFY17 (third quarter ended Sept 30, 2017), AirAsia X had specifically said Thai AirAsia had carried 359,941 passengers during the quarter under review, which was a growth of 3.2% year-on-year. 

“There was no new route added into AirAsia X Thailand’s network in 3Q17, as management remains concentrated on fine-tuning AirAsia X Thailand’s forward strategy, following the successful recertification of its Air Operator Certificate back in June 2017,” the statement read.

“Cleaning up balance sheet in AirAsia X as we started in the 4th quarter. 2018 looking good.”

In 3QFY17, AirAsia X made a net loss of RM43.3 million versus a net profit of RM11.03 million a year earlier, while revenue grew 14.5% y-o-y to RM1.12 billion from RM982.4 million.

AirAsia X blamed its weaker performance on higher operating expenses which increased by 25.1% to RM1.17 billion in 3QFY17, from RM934.13 million a year ago. The jump in operating costs was due to on a one-off provision of doubtful debt of RM50.2 million, which was classified under the "other operating expenses" category.