New long-distance budget airline Air Asia X has said that it will announce its first Indian and Australian destination in the coming days.

The carrier - an offshoot of Asia's biggest low cost airline Air Asia - hopes to fly to Australia for its inaugural flight from its Kuala Lumpur base in September.

It expects to offer Australians standard fares 30 to 50 per cent cheaper than its competitors, to the Malaysian capital, and then a host of far flung places, including the UK, Middle East, India and China.

Promotional fares would include US10 dollars flights to London on selected flights, but regular fares would still be significantly cheaper than full service carriers, he said.

According to news.com.au, Air Asia X's new CEO, Azran Osman-Rani is in Australia this week holding final talks with airports around the country.

Air Asia X is eyeing Avalon, in Victoria, Adelaide, the Gold Coast and Newcastle for its first Australian destination, he said, adding the airline could expand to service 'two or three' other destinations soon after its launch.

Air Asia X has leased one plane and is looking for a second, while it awaits its order of 15 new Airbus 330s, due to come on line late next year.

Osman-Rani, who has been in the top job for just a few weeks, said the airline was trying to attract passengers who had never flown before with its low prices.