Read more: http://www.btimes.com.my/articles/20120113003049/Article/
The long-haul budget carrier yesterday announced that it would be withdrawing its services to Mumbai by next month, while flights to New Delhi, London and Paris will all stop in late March. The announcement confirms a Business Times report last month that AirAsia X had written to the Transport Ministry of its intention to withdraw from London, Paris, Mumbai and Delhi. According to sources as of October last year, all four routes have been running losses. The Kuala Lumpur-London route lost RM56.9 million, KL-Paris RM43.5 million, the KL-Delhi RM29.1 million and the KL-Mumbai route RM21.3 million since it started. According to media reports, the route cuts announced are by no means all that can be expected from AirAsia X. Its KL-Christchurch route is also under review. It is understood that these initiatives are part of a plan to limit the flying radius of the long-haul budget airline to below 10 hours. This change in business model is deemed especially necessary with the expected entry of Singapore Airlines' long-haul low-cost budget carrier, Scoot, by the middle of this year. Scoot has stated its intention to fly to destinations that are five to 10 hours from its base at Singapore's Changi International Airport. "We intend to concentrate capacity in our core markets of Australasia, China, Taiwan, Japan and South Korea, where we have built stable, profitable routes within an infrastructure that supports low-cost services," AirAsia X chief executive officer Azran Osman-Rani said in the statement. "We intend to open new routes within these markets, as well as add frequencies on existing routes. Announcements of our future expansion plans will be made soon." All passengers affected by the route cuts will be given the option of either flying on an alternative airline, obtain a full refund or be re-routed to another AirAsia X destination. It is understood that passengers opting for an alternative airline will be transferred to Malaysia Airlines.
The long-haul budget carrier yesterday announced that it would be withdrawing its services to Mumbai by next month, while flights to New Delhi, London and Paris will all stop in late March. The announcement confirms a Business Times report last month that AirAsia X had written to the Transport Ministry of its intention to withdraw from London, Paris, Mumbai and Delhi. According to sources as of October last year, all four routes have been running losses. The Kuala Lumpur-London route lost RM56.9 million, KL-Paris RM43.5 million, the KL-Delhi RM29.1 million and the KL-Mumbai route RM21.3 million since it started. According to media reports, the route cuts announced are by no means all that can be expected from AirAsia X. Its KL-Christchurch route is also under review. It is understood that these initiatives are part of a plan to limit the flying radius of the long-haul budget airline to below 10 hours. This change in business model is deemed especially necessary with the expected entry of Singapore Airlines' long-haul low-cost budget carrier, Scoot, by the middle of this year. Scoot has stated its intention to fly to destinations that are five to 10 hours from its base at Singapore's Changi International Airport. "We intend to concentrate capacity in our core markets of Australasia, China, Taiwan, Japan and South Korea, where we have built stable, profitable routes within an infrastructure that supports low-cost services," AirAsia X chief executive officer Azran Osman-Rani said in the statement. "We intend to open new routes within these markets, as well as add frequencies on existing routes. Announcements of our future expansion plans will be made soon." All passengers affected by the route cuts will be given the option of either flying on an alternative airline, obtain a full refund or be re-routed to another AirAsia X destination. It is understood that passengers opting for an alternative airline will be transferred to Malaysia Airlines.
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