AirAsia X realigns routes, focuses on core markets

PETALING JAYA: AirAsia X, the long-haul, low fare affiliate of AirAsia Bhd has realigned its routes by focusing on its core markets. As part of the plans will be the suspension of its KL-Christchurch-KL route, with the last flight on May 30.

“The decision to withdraw from Christchurch was a difficult one, but was made taking into account our strategic focus in consolidating our network on markets where we have built up stable, profitable routes. We have, since the suspension of our flights to Europe and India, increased flight frequencies to Tokyo, and opened up a new route to Sydney,” said chief executive officer Azran Osman-Rani in a statement released by the long-haul carrier. When contacted by StarBiz, the company said AirAsia X entered into a commercial agreement with Christchurch Airport in April last year. “We are unable to reveal the content of the agreement but will honour the commitments that are due from our withdrawal,” said Azran.

The suspension of four times weekly Christchurch, New Zealand route follows the airline's move to axe four of its key destinations namely London, Paris, New Delhi and Mumbai in January. In operation barely a year, the route has been operating amid rising jet fuel prices which escalated in excess of 30% and is still hovering at high levels. The airline said the high fuel cost has compromised its ability to offer low fares to customers. Customers who hold bookings after May 30 will be given an option of a full refund, a re-route to another AirAsia X destination, or a re-book of a return flight prior to May 31 at no additional cost.

Christchurch International Airport also expressed its dismay over AirAsia X route suspension with chief executive officer Jim Boult expressing his unhappiness that the airport will lose its direct link to Kuala Lumpur. “We are bitterly disappointed at the airline's decision to end the Kuala Lumpur to Christchurch direct flights, but understand the situation AirAsia X finds itself in,” he said in a statement. “We are very sorry to see AirAsia X depart, but sincerely hope we can welcome it back in the future. The airport had invested years of work into attracting the carrier to Christchurch and we hope that work can be banked as an investment in a future service,” he said.

Meanwhile, analysts believe that AirAsia X will incur some form of financial penalty after the airline reneged on its promise to operate its Christchurch-Kuala Lumpur route for a minimum two years. “It is unclear how much the penalty would be. But we believe that it will be for the marketing expenses already committed to Christchurch International Airport under a joint marketing plan,” said an analyst. He said the one-hit penalty would be better compared to running a largely loss-making route amid high fuel cost.
-thestar online.