Cheaper flights to Australia on the horizon

Malaysian low-cost carrier Air Asia X will begin Australia-Kuala Lumpur-London flights from November 2008, with fairs that could be as low as £400.

The Richard Branson-backed airline will link up its existing route from Queensland's Gold Coast to Kuala Lumpur with a new service to London's Stansted airport.

There is also talk of two more Australian destinations being launched in late 2008 and early 2009, with two leased A340s operating the new route.

Air Asia X founding shareholder Robert Milton commented: "I believe AirAsia X has great potential as the first truly low-cost long haul carrier in a region which will see significant future traffic growth."

Regular fares could be as low as A$1,000 (£400) return plus taxes and charges, according to the Centre for Asia Pacific Aviation (Capa).