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AirAsia X is committed to opening Bahrain hub despite Middle East Conflict

'Budget carrier AirAsia X' said on Monday it remained committed to opening a planned Bahrain hub in 'June. However, the airline’s?chief exec was non-committal about if?the plans will go ahead if?the Middle East conflict continues. AirAsia X announced in February that it would resume flights between Kuala Lumpur and London via its Bahrain hub. This was the airline's first flight outside Asia. Services were due to start on June 26. This announcement was made before the U.S.-Israeli airstrikes against Iran that took place later in the month. These airstrikes disrupted air travel across the Middle East and many airlines cancelled routes to avoid the airspace. Bo Lingam, AirAsia's X chief executive, told a news conference that the Bahrain service will definitely be offered if the conflict ends before June. However he declined to confirm if they would continue in the event of a prolonged conflict. When asked if AirAsia?X would explore alternative routes to Europe via existing flights in Turkey, he replied, "Anything is possible." Jet fuel prices have soared during the conflict and the airline, which took over the short-haul business in January from its former parent Capital A, has been?hit hard. Bo stated that fuel shortages in Asia led to some countries - including Thailand and Vietnam - limiting plane refuelling. Tony Fernandes, a Capital A CEO and AirAsiaX co-founder, said that the airline would need to increase fares in areas where it cannot cover fuel costs. Jet?fuel is now up to $300 a barrel in certain markets.

Fernandes, however, said that demand for flights was still 'high' and he felt confident that?the airline will return stronger once the crisis is over. Fuel surcharges have been raised by around 20% and fares increased between 31% to 40%.

(source: Reuters)