Thursday, 12 January 2012

Escalating costs force AirAsia X to stop flights to Europe, Mumbai

KUALA LUMPUR- AirAsia X will be discontinuing several of its flights to India and Europe from its Kuala Lumpur hub. Four weekly services to Mumbai will be stopped, with the last flight on Jan 31. For New Delhi, daily services will be suspended, with the last flight on March 22 and flights there in March will be reduced to four weekly services.

For Europe, six weekly services to London will be suspended, with the last flight on March 31, as well as four weekly services to Paris, with the last flight there on March 30. AirAsia X CEO Azran Osman-Rani, in a press release Thursday, said these changes were to improve operating cost efficiencies and consolidate its network to focus on markets where it could build a leadership position.

He reassured guests that AirAsia X would offer those with bookings after the last flight dates an alternative travel option at no additional cost. According to Azran, continued high jet fuel prices and weakening demand for air travel from Europe, due to the current economic situation and exorbitant government taxes, had placed cost pressures on operating long-haul low cost flights between Asia and 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 said. "The airline is hopeful in reinstating services to India once these structural issues can be resolved."

-thestar online.

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