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Friday, January 13, 2012

Now, NOT Everyone Can Fly?

AirAsia X Re-aligns Network To Focus On Core Markets
Developments in Global Economy, Soaring Taxes and Higher Jet Fuel Prices leads long haul low-cost carrier to increase focus on core markets
Kuala Lumpur, 12 January 2012

AirAsia X, the long haul, low fare affiliate of AirAsia, today announced a realignment of its network with a focus on its core markets.

The move will see AirAsia X withdrawing services to India (Mumbai and Delhi) and Europe (Paris, London) from its Kuala Lumpur hub as follows:
•     Mumbai- Four weekly services will be suspended with the last flight on 31 January, 2012
•     New Delhi- Daily services will be suspended with the last flight on 22 March, 2012. Flights in March will be reduced to four weekly services.
•     London- Six weekly services will be suspended with the last flight on 31 March, 2012
•     Paris- Four weekly services will be suspended with the last flight on 30 March, 2012

AirAsia X will offer guests who hold bookings after these dates an alternative travel option at no additional cost to mitigate the inconvenience caused as a result of these route withdrawals.

All affected guests will receive an e-mail stating options that are available to them, including a full refund, a reroute to another AirAsia X destination (e.g, in Australia and North Asia), or a move to an alternative carrier where available.

These changes will improve operating cost efficiencies and consolidate its network to focus on markets where it can build a leadership position in 2012.

Azran Osman-Rani, CEO of AirAsia X said “AirAsia X remains focused on maintaining its global leadership position in the low cost, long-haul segment. We intend to concentrate capacity in our core markets of Australasia, China, Taiwan, Japan, and Korea where we have built up stable, profitable routes within an infrastructure that supports low cost services. We intend to open up new routes within these markets, as well as add frequencies on existing routes. Announcements of our future expansion plans will be made soon.”

“The continued high jet fuel prices and the weakening demand for air travel from Europe, brought about by the current economic situation together with exorbitant government taxes, have placed cost pressures on operating long-haul low cost flights between Asia and Europe, compromising our ability to offer the low fares AirAsia X is known for.”

He adds, “The implementation of the Emissions Trading Scheme and the escalating Air Passenger Duty taxes in UK, which will rise yet again in April 2012  has forced our decision to withdraw our services to Europe.”

“As for Delhi and Mumbai, the continued visa restrictions for travel between India and Malaysia, and the increase in airport and handling charges have resulted in a structure not conducive to the low cost model.”

Azran concluded that, "The airline is hopeful in reinstating services to India once these structural issues can be resolved."

Note: Further details on AirAsia X's withdrawal of Europe and India destinations:

Europe (London and Paris)

AirAsia X started flights to London in March 2009. At that time, oil prices were less than US$40/barrel, and have since tripled. With the Arab Spring unrest of 2011 spilling over to the unrests in Syria and Iranian oil embargo this year, oil prices are expected to remain high and crippling the economics of long-haul flights, where fuel represents over 50% of operating cost.

Moreover, the European situation is also compounded by a very weak economy and depressed consumer demand, which has resulted in a reduction in the number of passengers from Europe on the flights over the past several months. Flights to Europe have also been burdened by exorbitant government taxes such as the UK Air Passenger Duty which will be increased to £92 per departing economy passenger and £184 per departing Premium passenger from 1 April 2012. From 1 January 2012, the European Governments have also imposed an additional carbon tax under their Emissions Trading Scheme, which further adds to an already high cost.

The confluence of macro-factors, including high fuel prices, depressed European economy and exorbitant taxes have made it economically impossible to sustain these flights, despite AirAsia X recording load factors of over 80% for its London and Paris flights in 2011. Attempts to increase fares to reflect the higher operating cost recently have shown the price elasticity of travel, with demand falling down adversely.

India (Mumbai and New Delhi)

AirAsia X launched flights to Mumbai and Delhi in 2010. Structural issues in the Indian aviation market have made it difficult to operate economically viable flights. The airport and handling costs in New Delhi and Mumbai are already more expensive than even airports in Australia, and the authorities have just approved a massive 280% increase in airport fees effective April 2012.

The Indian routes have also been under-pressure when the Malaysian Government removed Visa-on-Arrival facilities in August 2010, soon after the routes were launched. This places Malaysia at a significant disadvantage versus Thailand and Singapore who offer Indian tourists convenient Visa-on-Arrival facilities.
Source :

There goes everyone's dream...I mean, for middle/lower middle class like me and most of my friends. We are now, indirectly, forced to play along with Tony and his team's diversion. Man…I should have seen it coming the moment Tony put his ass on MAS board’s chair.

Four major routes, Delhi, Mumbai, London, and Paris are taken away from our wish list! And I only managed to experience Delhi. How about other three destinations? Dang! Europe tuuuuu! Pfftt! Gotta work my ass even harder for other airlines…


What’s next, Tony? You've started the war with "these travelholics" (me, him, her, them, you, you, you, you, you, you, you and you). Bring it onnnnn! Here's your new header :D

"No! No Tony, sit! SIT!"


Fatt said...

licik kan? now lets move to Scoot!!! aku hrap dorg launch route ke Europe...pastu kita boikot AA. dulu aku penah baca twit Tony, dia ckp Scoot ni nak copy route & modus dorg..ala2 cam menghanjing la kan...bila baca twit dia tu aku cam eh camni ke thinking si Tony, patutnya dia welcome la rival dia & compete dgn cara i rite?

so my hope now goes to Scoot...wlpun tu hakmilik Spore i dont care. as long as it gives me benefit, i will support. boooo AA!!!

Biqque said...

aminkan ajer kalo scoot tu launch! :D yg penting, aku TETEP nak ke luar negara! cis! cis!

babyarisha said...

gila pangkah la banner tuh. hahaha.. jgn kan yg rantau asia ni dia nak tarik jugak jwb nye aku naik tongkang je lah p travel. hahaha...

Liz said...

terbaik la banner khas ko! sempat tu!

dah la sibuk je tayang program travel AA kat TV3 tu. ala, yg jemput artis tu.. maya karin gi paris, sape ntah gi london.

sekarang gelak aje

Cik-Anne said...

hope flyScoot will help us to realize our dream...iols x penah pi London...sempat go Paris je dgn AAX.

just.HY said...

next week kan kuar sydney? wlpn aku dh nak pegi this year, tp xtau laaa kan kalo tertekan button beli. ngeh ngeh ngeh..

papepun, plan europe aku next year tergendala laaa biq sbb aku plan nk naik AAX je. tp bila dh jadik mcm ni, kene keje keras lagi nk nk save duit. huwaaaa!!!!

Biqque said...

lin, yg dekat2 dia dah "janji" tak kacau hahaha!

liz, kena send kat AA la banner tu hahaha!

cik anne, dpt gak pegi, i tak pegi lagi nih!

john, cis! aku tak gi lagi sydney tauuuu...hmm, mmg europe tergendala la gamaknyer...ko mampu? AKU TAK MAMPU D'OH! hahaha!

Mie said...

Memang frust bebenor dg AA ni... Lebih2 lagi aku dah booking trip ke London tu... huwa

Unknown said...

John: Hahaha aku pun takut tertekan utk Sydney tu..aku dah nampak ada sinar lain dari Sydney tu.. *mentol diatas kepala*..

Tapi again, tertakluk pada travel period Sydney tu...

Unknown said...

Biq, nampak gayanya, kite semua kena kerja keras kalau nk ke europe pas ni..usah mimpi la cam dulu nak tiket 1.5k huhuhuhuh

just.HY said...

owh ya...ko tak pegi lagi sana. tula kan., harus laa grab the chances kalo dh depan mata.

aku rse mcm x mampu, tp aku kene carik sugar mummy laaa nmpknya. mak biq mampu x nak support anak ikan ni??? huhuhuhu.

gadisBunga™ said...

kelasss banner. mmg pakcik tony patut baca rintihan2 hati ni.

masMZ KaKiJaLaN said...

*jari ketuk2 meja

Anash said...

tatau nak komen tapi menyibuk...(berlalu sambil sibuk cari beg utk ke USS)

Biqque said...

na, i tak pegi lagi sydney :D

john, sila jambu2kan diri semoga title anak ikan ko tak terlepas hahahaha!

gb, pi bgtau pakcik tony :D

masmz *duk sebelah, tlg ketuk sama*

anash, uih melampau sume orang beli barang baru nihhhhh! (tadi dah sambar sekeping baju)

Ren said...

Wahhhhh terbaik la header baru AAX tu! Aku sokong! Nyampah la dengan Tony ni, suka suki je tau.....

Biqque said...

love-hate relationship ye janggel :)

Ely Hasrul said...

patut gaji pekerja O&G naik la kan sbb minyak dh naik (konon).. seb beik la dua pilihan old trafford dgn ultramanland salah satu leh pilih lagik.. sigh.. tahun nih aku ketepikan la sume angan2 tu..

mikamusz said...

Patutlah tangan aku keras kejung nak booking ticket AA ke europe n aus taun ni... Kalau tidak.. Nak bakoooorrr je kepak airplane tu, biar semua org x leh terbang

Unknown said...

yeah, there goes everyone's dream esp to Europe. Right after this news, Tony twit psl bonus utk AA, aduhai tension je dgr.

Well, as a traveholic don't be affected with this kinda change, we will strive to find the most cheapest airline. Sape murah kite sokong!

Biqque said...

Exactly byya!

Fatt said...

aku baru pasan banner ni...hahaha...pasni jom kita predict apa bakal timbul dan tenggelam...beb, informer aku ckp pasni chch....gulp!

Biqque said...

haah aritu na cakap chch gak...abis la, aku dah la tak abih cover abih lagi roadtrip nih!

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