AirAsia X also benefits from a strong distribution network in Thailand. Competition currently occurs on the Bangkok to Sydney and Bangkok to Melbourne routes and will likely extend to key routes such as Denpasar to Melbourne and Denpasar to Sydney. AirAsia X has stated that it wants to make Bali a hub by the end of 2014, which means that soon Air Asia X’s A330-300s will be up against Jetstar’s new Boeing 787 Dreamliners in competition for passengers and their money. New direct services from Melbourne could reduce AirAsia X’s costs by up to 25 percent. Jetstar operates three flights per week to Melbourne from Bangkok’s Suvarnabhumi Airport, whereas Air Asia X, which currently flies twice daily from Mlebourne and 12 times a week from Sydney, is set to start flying direct to Bangkok. The competition shows the start of low cost carriers competing with each other, whereas normally low cost carriers have tried to pick up capacity from high cost carriers. AirAsia and Jetstar will soon be slugging it out on the Bali to Sydney and Bali to Melbourne routes. Source = ETB News: T.N.