AirAsia X, the long-haul budget airline set up by low-cost aviation pioneer Tony Fernandes, has delayed its takeoff, possibly until next year.

At its launch in January the carrier promised budget flights to Britain beginning in July.

But The Edge , a business and investment weekly, quoted a top company executive as saying a delay has resulted from higher leasing costs.

"We are looking at the cost structure, the right aircraft ... we want to start on the right path. It is an important element as AirAsia X is going on a low-cost model," chief executive officer Raja Mohamad Azmi said in the report.

Amzi is CEO of Fly Asian Express (FAX), which Fernandes also founded and which currently operates rural air services on Borneo island. It will run the long-haul operations.

Last month Azmi told AFP the carrier had evaluated the Airbus 330-300 and Boeing 777 for use on its new long-haul routes, "and an announcement will be made in March."

But he told The Edge , they have not yet decided on the type of aircraft and the firm does not want to get caught leasing planes at current high prices in a market with tight supply.

fares as low as RM9.99

Azmi was quoted as saying delays in delivery of the Airbus super jumbo, the A380, to other carriers has led many airlines to acquire the A330 and caused excess demand.

He said AirAsia X hopes to now start operations by year's end or at the latest, by August 2008.

When it announced plans for Air Asia X in January, the airline said seats on flights to Britain would be available on the Internet from February with fares as low as RM9.99.

Fernandes launched AirAsia as a regional budget carrier in December 2001 with two aircraft. It now has 50 planes flying to Malaysia, Thailand, Indonesia, Singapore, Cambodia, Vietnam and the Philippines.

He is not the first to try budget long-haul travel but analysts say the model remains to be proven despite its success on short-haul flights.