AirAsia to subcontract domestic Malaysian turboprop services.
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Southeast Asia,
AirAsia
AirAsia announced (30-May-06) plans to subcontract operations of the domestic Malaysian turboprop services (Rural Air Services) to a new airline, FAX (Fly Asian Xpress)
FAX is presently obtaining the necessary regulatory approvals to commence operations on 01-Aug-06, following domestic rationalisation and Malaysia Airlines withdrawal from these routes. AirAsia would transfer operations of six Fokker 50s and five Twin Otters services to FAX and monitor the performance of this new arrangement.
AirAsia is analysing the viability of operating routes such as Kuala LumpurIpoh and PenangLangkawi. Ultimately, the aim is to reduce losses and lessen subsidies borne by the Government.
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AirAsia to subcontract domestic Malaysian turboprop services. 
