“One of the region’s greatest airline success stories, AirAsia offers outstanding value for money to its customers and access to the Air Asia group network which is one of the best in south-east Asia.”

AirAsia X will commence services with six return flights per week between Perth and Kuala Lumpur. This will increase to daily return services in March 2009. The service will operate using a new wide bodied Airbus A330 aircraft, giving passengers a level of service not normally expected from low cost airlines.

Mr Geatches said the decision of AirAsia X to make Perth its second Australian destination was a strong vote of confidence in the inbound and outbound Western Australian tourism markets.

“The low cost fares offered by AirAsia X will make Western Australia a much more affordable destination for the hundreds of millions of people living in destinations throughout Asia served by the AirAsia group."

“For Western Australian travellers, the arrival of AirAsia X provides an outstanding opportunity to take advantage of low fares to Malaysia and to use the expansive AirAsia group network to visit great holiday, shopping and adventure travel destinations throughout south-east Asia.”

The arrival of AirAsia X also highlights the unrealised potential of the low cost carrier model in the Western Australian market.

“Perth has the lowest exposure to the low cost carrier airline model of all the major airport destinations in Australia. The decision by AirAsia X to make Perth its second destination in Australia sends a strong signal that the time has come for Perth to receive its fair share of low cost air fares.”

Mr Geatches emphasised that the south-east Asian market was very important to Perth Airport.

“More than half of the forecast 2.5 million international passenger arrivals and departures for Perth Airport during 2008-09 are expected to be to and from south-east Asian destinations.”

“The arrival of another south-east Asian carrier at Perth Airport will also naturally strengthen the strong economic and cultural ties which exist between Western Australia as the nation’s economic powerhouse and our high growth Asian neighbours.”

Perth Airport has recently announced a $1 billion vision for the future, with new regional, domestic and international terminal facilities to be built in the location of the existing international terminal.

“Perth Airport’s partnership with growing airlines such as AirAsia X sends a strong signal of continued high levels of passenger growth. This makes the new Perth Airport investment absolutely essential”, Mr Geatches said.