AirAsia pushes new regional schedules, secondary hub growth

1 min readUpdated May 28, 2025Dec 3, 201511:13 PM

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Malaysia-based low cost carrier AirAsia Berhad plans to launch its latest direct flight between tier-two Chinese city Guangzhou and Langkawi, Malaysia at the end of January 2016.

The choice of tourist destination Langkawi for the group’s latest international route underlines the company’s strategy to develop services on less heavily serviced routes. The schedule will see 4X-weekly Airbus A320 departures.

AirAsia CEO Aireen Omar said the airline is focused on expanding its connectivity into China, especially second-tier cities such as the recently launched Changsha-Kuala Lumpur service.

This secondary city approach is echoed by the AirAsia Group’s introduction of flights from Changsha-Bangkok operated by Thai AirAsia; a Krabi (Malaysia)-Guangzhou (China) service by AirAsia; and a Wuhan (China)-Kota Kinabalu (Malaysia) service, also by AirAsia.

Additionally, the Thai subsidiary has introduced new international schedules from its newest regional hub at Thailand’s U-Tapao International Airport to Macau, Singapore, and is reportedly looking at new routes to India.

“We will continue to add more aircraft orders as we go further because we are not only growing in Malaysia, but also in Thailand, Indonesia, the Philippines, India and hopefully in Japan,” Omar said.

AirAsia is scheduled to take delivery of its first Airbus A320 neo aircraft from the 2016 second half, which Omar said will be used to expand existing regional business as well as act as fleet replacements.

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What this means

AirAsia's aggressive focus on connecting tier-two Chinese cities with new regional hubs like U-Tapao, building on its Changsha-Kuala Lumpur success, represents a shrewd land-grab. This strategy, akin to Panpuri's targeted Asian expansion, pressures full-service carriers and established low-cost rivals by developing previously underserviced routes. While the move uses AirAsia's low-cost model effectively, its rapid multi-country expansion across Thailand, Malaysia, and soon India, carries inherent operational complexities. However, the consistent addition of new aircraft orders suggests a firm commitment to this growth. The airline’s success hinges on maintaining competitive pricing and high load factors on these new routes. We should monitor AirAsia's passenger numbers for its U-Tapao routes over the next year.

Aiko Tanaka

Questions & Answers

What is AirAsia's main strategy for expanding its international flight routes?

AirAsia's strategy is to develop services on less heavily serviced routes, particularly by expanding connectivity into second-tier Chinese cities. This includes new flights from locations like Guangzhou and Changsha.

Which subsidiary of AirAsia is expanding its services from a new regional hub in Thailand?

Thai AirAsia, the Thai subsidiary, has introduced new international schedules from its newest regional hub at U-Tapao International Airport. These new routes currently include Macau and Singapore.

When does AirAsia expect to receive its first new Airbus A320 neo aircraft?

AirAsia is scheduled to take delivery of its first Airbus A320 neo aircraft from the second half of 2016. These planes will be used for both expanding existing regional business and replacing older fleet models.

Which countries is AirAsia planning to expand its operations into, according to the CEO?

The CEO stated that AirAsia plans to grow not only in Malaysia but also in Thailand, Indonesia, the Philippines, and India. There are also hopes for expansion into Japan.

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