Virgin Group Invests 20% in AirAsia X

The world’s latest long haul budget airline, AirAsia X, announced a £7 million investment by Virgin Group during a special event at the Putrajaya International Convention Centre in Kuala Lumpur.

As one of the world’s leading brands, Virgin will prove to be an exceptional marketing tool, placing the low cost carrier clearly on the map. The majority of AirAsia X, which launched in January this year, is owned by AirAsia. The parent company is the region's largest budget airline, carrying an expected 18 million passengers this year with a target of 50 million by 2013.

The success of AirAsia, Virgin’s investment news and the launch of new destinations and connections should put AirAsia X in a very good position for the future. AirAsia X will also have a positive impact on property investment opening doors for increased tourism and business travel, by providing affordable, cost effective air travel to and from Europe and the company’s home continent.

Dato’ Seri Kalimullah Hassan, Chairman of AirAsia X, said, ‘The Virgin stamp of approval on the AirAsia X business model from Sir Richard Branson, one of the world’s most successful entrepreneurs in pioneering new business models, is a great start for AirAsia X.

Building on AirAsia’s lead, AirAsia X is uniquely positioned to be a first in ‘truly low cost, long haul’ service and

to revolutionize the global aviation industry. We believe AirAsia X will help consolidate Kuala Lumpur’s position as the region’s low cost carrier hub and as such, we continue to be grateful to the Malaysian Government for its continued support.’ Having leased an Airbus 330 and confirmed orders for 15 new A330-300s, AirAsia X is well on its way to commence its operations in the fourth quarter of 2007 with non-stop services from its Low Cost Carrier Terminal hub in Kuala Lumpur to points in Asia Pacific which we will announce in due course,’ added Dato Seri Kallimulah.

The Virgin boss commented, ‘Tony Fernandes and his team have had phenomenal success with Air Asia on the short haul and we believe they will have the same success with AirAsia X on the long haul. I am thrilled to be able to support them in this venture and look forward to seeing low cost long haul travel being opened up from their base in Malaysia. I wish Tony and his team every success and cannot wait to join them on