AirAsia potentially back on board at Avalon Airport
Budget Malaysian airline AirAsia appears to have backtracked on an earlier decision to depart Avalon Airport, citing a “strong ongoing relationship” with the facility.
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AirAsia appears to have backtracked on its decision to pull out of Avalon Airport.
The budget Malaysian airline said on Wednesday that it had a “strong ongoing relationship” with Avalon Airport after previously failing to directly comment on the status of flights in the region.
It comes after Melbourne Airport this week snatched Malaysian flights from Avalon less than four years into a 10-year deal Avalon had with AirAsia to fly to and from Kuala Lumpur.
The decision led to widespread backlash, with Tourism Greater Geelong and The Bellarine executive director Brett Ince saying it was a “disappointing” move that would slow the region’s recovery in the international travel market.
Geelong-based Liberal Senator Sarah Henderson urged AirAsia to reverse its decision and return to Avalon.
On Wednesday, AirAsiaX chief executive officer Benyamin Ismail said Avalon Airport had been a “solid supporter of AirAsia X services”.
“The low cost airport is very much in sync with our low cost model,” Mr Ismail said.
“We have a strong ongoing relationship with all of our airport partners including Avalon Airport and we will review opportunities to expand our services to Victoria in the future.
“Any further announcements will be made in due course.”
Mr Ismail said he could not provide any further details about possible future deals.
Avalon Airport acting chief executive officer David Crawford said the airport was in constant communication with AirAsia.
“We understand the industry is dealing with many issues since the pandemic,” he said.
“Avalon Airport is ready to support Air Asia and any airline that wishes to use our domestic and international terminals.
“We have invested significantly in the airport during covid and have a world-class facility with incredible technology to make travel easier and stress free.”
Mr Crawford said the airport team was “working extremely hard” to bring more flights in and out of Avalon.
“We look forward to making an announcement soon,” he said.
Meanwhile, Jetstar would not say if it was looking to expand its domestic offering at Avalon to include international flights.
“Jetstar has been flying out of Avalon for 18 years, and we’re committed to maintaining this important connection in our network into the future,” a spokeswoman said.
“Jetstar will continue to work closely with Avalon Airport to support local businesses and tourism, but we have no updates on international services at this stage.”
Avalon’s glimmer of hope after AirAsia setback
Avalon Airport is working on commercial terms to start flights to and from Vietnam but will face stiff competition from other Australian airports.
It comes after Melbourne Airport this week snatched Malaysian flights from Avalon less than four years into a 10-year deal Avalon had with AirAsia to fly to and from Kuala Lumpur.
Avalon Airport’s acting chief executive David Crawford travelled to Vietnam last month to meet with management of budget carrier Vietjet Air which in 2019 showed interest in flying between Avalon and Ho Chi Minh City.
“I was out meeting Vietjet again. Now it’s getting to the pointy end,” Mr Crawford said.
“I was there for five days meeting them everyday and discussing how we can preserve this.
“Vietjet need the commercial terms to stack up and we’re working with them to make sure it does.
“They will be coming to Australia at some point. They have the A330, the wide-body aircraft ready to go.
“It just depends what we can do to make sure they can come to Avalon and not necessarily Tullamarine (airport) or Brisbane or other airports.”
Tourism Greater Geelong and The Bellarine executive director Brett Ince said AirAsia’s decision to withdraw from Avalon was “disappointing” and would slow the region’s recovery in the international travel market.
“Avalon Airport achieved an incredible feat bringing an international airline to the Geelong region in 2018 and we’re confident it will be able to accomplish this a second time,” he said.
Committee for Geelong chief executive officer Jennifer Cromarty said the airport was a “vital asset” for the region and said government support was needed build a train station at Avalon to create a level playing field with Tullamarine airport.
“Our international airport status is a significant positive that will yield economic benefits for decades to come,” she said.
Geelong-based Liberal Senator Sarah Henderson urged AirAsia to reverse its decision and return to Avalon.
The previous Coalition government contributed $20m towards the airport’s international terminal when it was in power.
Mr Crawford said despite AirAsia leaving Avalon it wasn’t “panic stations” for the airport due to the revenue it generates from commercial tenancies, and from income gained from housing about 40 aircraft when air travel ground to a halt in 2020.
Mr Crawford said Avalon Airport would ideally like a “five to six month” lead in time to the beginning of a fresh long-term international route to ensure the flights could be marketed effectively.
Avalon Airport would not elaborate on why it lost AirAsia flights although a spokeswoman said it would “welcome flights back at any time.”
“Avalon will be in a position to announce new partnerships in the near future… watch this space,” the spokesman said.
A Victorian government spokesman said it would offer support to Avalon Airport to secure more domestic and international flights.
“The pandemic caused significant disruptions to the aviation industry and airlines continue to face challenges such increasing fuel costs,” the spokesman said.
The federal government did not respond to request for comment before deadline.
Avalon Airport appears to suffer major blow
Avalon Airport appears to have lost its only international carrier, with AirAsia scheduling all Victorian flights from Melbourne Airport.
AirAsia announced on Monday that it would resume “four key routes” to Australia and New Zealand from November.
The budget carrier announced flights to Melbourne, Perth, Sydney and Auckland. No flights to and from Avalon were included in the schedule.
A spokeswoman would not comment on the airline’s future relationship with Avalon, instead saying: “Any further announcements about expansion plans for Victoria will be announced in due course”.
AirAsia X chief executive officer Benyamin Ismail said Melbourne Airport offered greater “flexibility”.
“We are also pleased to announce our return to Melbourne Airport, which offers more flexibility and connectivity for our guests travelling to and from the state of Victoria.”
Avalon Airport was contacted for comment and did not immediately respond.
AirAsia was the first international airline to partner with the airport, with the first flight departing in 2018.
At the time the Geelong Advertiser reported the airline and the airport had signed a 10 year deal following more than $48m in investment from state and federal governments.
The airport quickly inked deals with two other airlines – Citilink and Vietjet – both which fell through following the Covid-19 pandemic.
AirAsia last flew from Tullamarine in 2018, before moving its operations to Avalon.
The airline’s decision to move back to Tullamarine will be another blow for Avalon airport, which recently lost domestic flights.
Last month the airport’s chief of aviation, Andrew Elliott, said Avalon was operating at less than half its capacity.
Originally published as AirAsia potentially back on board at Avalon Airport
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