By Luke Voogt
Almost 1400 extra passengers will use Avalon daily when the airport’s first international service takes off this year, according to the airline operating the flight.
AirAsia on Sunday announced it would relocate its twice-daily return service from Melbourne to Kuala Lumpur, to Avalon Airport by late 2018.
AirAsia X chief executive officer Benyamin Ismail said passengers filled an average of 92 per cent of seats on the service.
“This is one of the best performers for us,” he said.
Mr Ismail was confident the airline would maintain or exceed the percentage at Avalon, due to cheaper fares and simpler facilities.
“I was in immigration (at Tullamarine Airport) for two hours,” he said about his most recent flight to Melbourne.
“That would not be an issue here.”
AirAsia would need to fill at least 80 per cent of seats to make the service viable, he said.
The airline’s A330-300s carry 377 passengers each. Four flights at 92 per cent capacity would mean 1387 people travelling through Avalon daily and 511,000 per year.
AirAsia cofounder and CEO Tony Fernandes shared Mr Ismail’s optimism, saying the airline would offer average fares of 500 Malaysian ringgit (roughly $50).
“I really think door-to-door you’ll save time, because you’ll get in and out of this airport really quick,” he said.
The airline would eventually relocate other flights from Tullamarine to Avalon, beginning with its service to Thailand, Mr Fernandes said.
Other “animal-based” airlines such as Tiger Airways would follow AirAsia’s example, he said.
“(Avalon) is going to be a thriving airport very, very soon.”
The Malaysian-based low-cost carrier flies to 130 destinations from Kuala Lumpur.
“We’re a huge brand in terms of South East Asia and it’s going to put Avalon on the map,” Mr Fernandes said.
The move to Avalon follows a trend of budget airlines choosing secondary airports at key destinations to lower prices, according to Swinburne University aviation expert Chrystal Zhang.
“Strategically it is a win-win situation for the airport and the airline,” she said.
Lower terminal taxes and rebates could help reduce fares for flights to Avalon, which would land in the “catchment area” of the primary airport, Tullamarine, she said.
“What they are aiming at is cost reduction – AirAsia suffered huge financial losses in the last quarter of 2017.”
AirAsia would likely market the flight as “to Melbourne” rather than Geelong, Ms Zhang said.
“I don’t think people know that much about Geelong.
“They know the Great Ocean Road and other areas of interest and they would relate that to Victoria and Melbourne.”
