AirAsia X, the long haul low cost affiliate of Malaysia’s AirAsia Group, has placed a firm order with Airbus for 10 A350-900 XWB aircraft. The airline will use the aircraft on a network linking its Asian hub in Kuala Lumpur with destinations worldwide, especially in Europe and Australia.

“Business is all about timing and long-term strategy,” said Tony Fernandes, director and founder of AirAsia X. “At AirAsia we have always planned for the long-term. By buying the A350 XWB the strategy of AirAsia and AirAsia X is now fixed all the way to 2020. The vision of creating the world’s first long haul and short haul low-cost airline is completeand we are all very excited.”

MALAYSIA:MAS in red but eyes full-year profit Malaysia Airlines (MAS) has posted a first-quarter loss of MYR694.8 million (US$196.8 million) compared to a MYR120.5 million profit in the first three months of 2008 on the back of the “collapse in demand”.

The cargo division, MASkargo sunk MYR85 million in the red while its passenger counterpart unit suffered a MYR42.5 million loss. The group’s first loss since the 2006 third quarter was a result of a “triple squeeze – over capacity, extreme fuel volatility and a global slump which hit passenger and cargo demand,” MAS said.

Revenue plunged 26.2 per cent yearon- year to MYR2.7 billion while expenses were cut 20.5 per cent to MYR2.88 billion as MAS reduced capacity 11 per cent and fuel prices decreased.

Second-quarter demand “is expected to remain soft” but forward booking trends, especially long-haul, are “expected to stabilize into the second half of the year with the various sales incentives planned,” MAS said. It now expects a fullyear net result ranging from a MYR499million loss to a MYR50 million profit.