AirAsia X may resume European flights

AirAsia X Sdn Bhd, the long-haul arm of Asia's biggest discount
carrier, said a planned order for Airbus SAS's revamped A330 may let it
revive European routes that were unsuccessful with older planes.

"Europe
would be much more accessible" with the new aircraft, Chief Executive
Officer Azran Osman Rani said in an interview in Sydney yesterday. He
declined to say how many A330s the Malaysian carrier will order or when
European flights could resume.

The new A330 may be profitable on
European services because of its better fuel efficiency and greater
capacity, Azran said. The budget carrier ended services to the
continent earlier this year because of fuel costs, slowing demand and
the introduction of a carbon-emissions levy.

Airbus announced
plans to update the twin-engine A330 earlier this month to help compete
with Boeing's 787 and 777 aircraft. The new plane, due to enter service
in 2015, will use technologies from the A350 to increase its range and
capacity.

AirAsia X, which is focusing services on Asia and
Australia, also plans to sell a stake of about 25 per cent to 30 per
cent in an initial public offering, Azran said. AirAsia Bhd and other
existing shareholders' stakes will be diluted in the sale, he said.
AirAsia Bhd has no plans to sell its entire 18.5 per cent holding, he
said.

The timing of the offering will depend on the appetite in
the Malaysian share market, where several large IPOs are expected, he
said. -- Bloomberg

they shouldn't have stopped it!