March 8 (Bloomberg) -- Fly Asian Xpress, a Malaysian airline that's starting a new long-haul budget carrier, plans to order 15 twin-aisle aircraft from Airbus SAS or Boeing Co., valued at as much as $2.9 billion at list prices.

AirAsia X, the new airline, will pick Boeing's 777-200 or Airbus's A330-300 aircraft, Fly Asian Xpress shareholder Tony Fernandes said today. A shortage of planes will force the carrier to postpone services for as long as a year, he said.

``We can't find the planes,'' Fernandes, who owns 10 percent of Fly Asian Xpress, said in an interview in Singapore. ``AirAsia X will definitely start at the latest in August 2008. If they can find planes before, then they will start. Otherwise they won't.''

AirAsia X is adding to competition for long-haul services, betting that cost-conscious travelers are prepared to forgo the comforts offered by full-service airlines such as Malaysian Airline System Bhd. and Singapore Airlines Ltd. The delay may set back Malaysia's plan to attract more visitors and become a hub for budget carriers.

``The growth in tourism will be pushed back,'' said Raymond Yap, an analyst at CIMB Bhd. in Kuala Lumpur. When AirAsia X does begin flying ``it will be big,'' he said. ``It will be something that the full-service carriers will have to pay attention to.''

Flights were initially scheduled to start in July after Fly Asian Xpress won government approval in January to begin services. AirAsia X had planned to lease two or three planes this year and purchase more for delivery in 2008.

Aircraft Shortage

AirAsia X is starting at a time when a pickup in travel demand and delays in the delivery of the A380 superjumbo by Airbus are causing a shortage of long-haul aircraft.

Asia-Pacific passenger traffic is estimated to grow at a 5.7 percent annual rate between 2006 and 2010, outpacing the global average, according to estimates by the International Air Transport Association, which represents 250 carriers worldwide.

Dubai, United Arab Emirates-based Emirates this month agreed to lease five Boeing 777-300ER planes from GE Commercial Aviation Service to help fill a shortfall in capacity caused by two-year delays in the delivery of the A380 aircraft.

There are fewer than 20 new A330-200s and only a ``handful'' of A330-300s and 777-200ERs that are being delivered to leasing companies between now and 2008, said Sean Lee, a spokesman at Singapore Aircraft Leasing Enterprise, Asia's biggest plane lessor. Of those, almost all have been placed with airlines, he added.

AirAsia X Routes

AirAsia X is close to an agreement for the 15 planes and has already picked the model, Fernandes said today, declining to say which aircraft was chosen.

An A330-300 aircraft can seat as many as 335 passengers, reach a maximum distance of 5,500 nautical miles (10,186 kilometers) and cost $180 million each, based on catalog prices. Boeing's 777-200, which costs $195 million, can carry as many as 400 people and fly as far as 5,210 nautical miles.

AirAsia X had planned to fly to Birmingham or Manchester in the U.K., Tianjin and Hangzhou in China, India, the Middle East, Australia and the U.S. It may also fly the same long-haul routes as Malaysian Airline, the national carrier, Transport Minister Chan Kong Choy said in January.

A return flight on AirAsia X to the U.K. from Kuala Lumpur may cost as low as 9.99 ringgit ($2.85), according to the carrier. Oasis Hong Kong Airlines Ltd., which became the first low-cost Asian carrier to fly to London last year, is selling one-way tickets to London from 75 pounds ($144) for travel this month, excluding taxes and surcharges, its Web site said.

AirAsia Bhd.

AirAsia Bhd., Southeast Asia's largest budget carrier, which is headed by Fernandes, in January made a preliminary agreement to buy 20 percent of Fly Asian Xpress, which operates rural services in Malaysia.

Even with the stake, Fernandes reiterated today that AirAsia is ``firmly'' focused on short-haul services. The carrier, which has placed orders for 150 Airbus A320 single- aisle aircraft since March 2005, wants to tap demand from the region. It has 34 Boeing 737-300 aircraft and 17 A320s in its fleet, according to its Web site.

AirAsia will hedge 100 percent of its fuel needs this year, up from 80 percent this quarter, Fernandes said today.

To contact the reporter on this story: Chan Sue Ling in Singapore slchan@bloomberg.netHaslinda Amin in Singapore at hamin1@bloomberg.net

Last Updated: March 8, 2007 02:25 EST