AirAsia X

2006–2007: Early operations

In 2006, FlyAsianXpress (FAX) was established as a subsidiary of AirAsia to operate Malaysia's Rural Air Service (RAS) routes, primarily serving destinations in Malaysian Borneo. The airline operated turboprop services on routes previously managed by Malaysia Airlines.

FAX faced several operational challenges, including low passenger demand on some routes, maintenance issues and flight disruptions. In April 2007, AirAsia chief executive officer Tony Fernandes proposed transferring the RAS operations to Firefly, a subsidiary of Malaysia Airlines, which had greater experience in regional turboprop operations. Following government approval, the transfer was completed on 26 April 2007, with the RAS network subsequently transferred to MASwings, a new subsidiary of Malaysia Airlines established to operate rural services in East Malaysia.

Following its withdrawal from the RAS network, FAX shifted its focus towards long-haul, low-cost operations. The airline was rebranded as AirAsia X in September 2007, marking its transition into a long-haul affiliate of the AirAsia network. The name was reportedly inspired by Yoshiki, the leader of Japanese rock band X Japan. To support its establishment, the airline secured investment from Virgin Group, which acquired a 20% stake in AirAsia X to support aircraft acquisition and operational expansion.

2007–2010: Launch of AirAsia X and early expansion

Following its transition from FlyAsianXpress, the airline was rebranded as AirAsia X in September 2007, adopting a long-haul, low-cost carrier model within the AirAsia network. On 15 September 2007, the airline received its first aircraft at Kuala Lumpur International Airport. The aircraft, an Airbus A330, was named "Semangat Sir Freddie" ("Spirit of Sir Freddie") in honour of Sir Freddie Laker, a pioneer of low-cost aviation and founder of the Skytrain service.