AirAsiaX, which committed to the A330-300 at the Paris Air Show, is preparing for a September launch and positioning itself as the planet's lowest-cost long-haul carrier.

It will begin taking delivery of its A330s during the 2008 third quarter in a 396-seat configuration. "We even looked if we could put seats in the belly," AirAsia CEO Tony Fernandes joked. "We're very much of an LCC," he said. "I know people are skeptical about this product, but they were also skeptical when we launched AirAsia five years ago. Now we operate 55 aircraft and have 150 aircraft on order." He added that another order may be coming shortly.

AirAsiaX will launch with leased A330s. The new aircraft will give the carrier unit costs of 1.9 cents, Fernandes said. "[Airbus CEO Louis] Gallois has gone out of his way to give us this product," he said, explaining that the new airline asked for higher seat density, an altered galley design and a new IFE product. Cabin configuration will include 28 premium seats in a 2-2-2 alignment. Economy seating will be nine across with a 31-in. pitch.

Future orders may include the A350XWB, a program that Fernandes said he supports. "We are a firm believer in the A350 product," he stated, although he would not commit to an order. "We believe that the A330 has lots of legs left. It's a hard aircraft to beat on the sector length we will be flying. The A350 would allow us to fly direct, without the need for a technical stop."

AirAsiaX is considering three Middle East airports for technical stops on European flights, including Bahrain. "We are staying away from Etihad, Qatar [Airways] and Emirates," he laughed. He said the 787 is "a bit too small" and that if it opted for the A350 it would be in a 10-abreast configuration.

The new LCC currently is narrowing the list of initial destinations, which may include London Stansted or Manchester, Australia and two cities in China. Fernandes said he also is considering destinations in Central and Eastern Europe such as Dusseldorf, Frankfurt Hahn, Cologne, Prague and Budapest. The lowest introductory fare for a return Kuala Lumpur-UK flight would be US$20, he said. Average fare will be US$300, excluding taxes.