A new low cost airline will service flights between Kuala Lumpur and Perth, with projections it may inject up to $100 million into the Western Australian economy in its first year, Tourism Minister Sheila McHale said.
AirAsia X is expected to start six flights a week between Perth and Kuala Lumpur from November 2, with an aim to increase to daily services by March 2009.
The new deal, between Tourism WA, AirAsia X and Westralia Airports Corporation, will see fares between Perth and Kuala Lumpur start at $99 one way.
Tourism Minister Sheila McHale says the new deal will see visitor numbers and spending increase significantly, with holiday makers taking advantage of low prices.
"Malaysia is already one of WA's top tourism markets, with nearly 40,000 visitors every year spending $157 million," Ms McHale said.
AirAsia X chief executive officer Azran Osman believes the service will provide a link between WA and South East Asia.
"In 2007, we carried 18.5 million passengers around our network of 90 routes across South East Asia and China.
"AirAsia X will feed passengers from its extensive network into Perth, effectively creating a low-cost link from South East Asia and China to WA," Mr Rani said.