Page 7 - AAA JANUARY-FEBRUARY 2012 Online Magazine

Headline News

AirAsia X cuts routes

AirAsia X has decided to tend to concentrate capac- in airport and handling a transfer programme, with
cut its routes to London and ity in our core markets of charges have resulted in a the construction of KLIA 2.”
Paris, dealing a blow to the Australasia, China, Taiwan, structure not conducive to One possibility is closer
ultra-long-haul low-cost Japan, and Korea where we the low cost model.” Azran cooperation between the
model and giving some have built up stable, profit- concluded that, “The air- two AirAsia and Oneworld.
clues as the possible role able routes within an infra- line is hopeful in reinstat- MAS is a recent member
of Malaysia Airlines under structure that supports low ing services to India once of Oneworld, as is Qantas
Tony Fernandes. cost services. We intend to these structural issues can (which also owns Jetstar)
AirAsia X is also sus- open up new routes within be resolved.” and IAG (the parent of Brit-
pending flights to Mumbai these markets, as well as The cutbacks may open ish Airways), said Amartya.
and cutting back its New add frequencies on existing up opportunities for MAS “This new development,
Delhi route to four times routes. Announcements of - where AirAsia Group along with the SIA-Virgin

a week from daily service. our future expansion plans chairman Tony Fernandes partnership, will intensify
The carrier says it hopes to will be made soon.” now has effective manage- the Kuala Lumpur-Singa-
reinstate these once struc- Azran balmed the “con- ment control after taking a pore rivalry. A similar pat-
tural issues have been re- tinued high jet fuel price”s significant minority stake tern is emerging at Changi
solved, however. and the weakening demand last year. with Jetstar having started
The London and Paris for air travel from Europe, Amartya De, Frost & Sul- flights between Singapore
services will be cut from the brought about by the current livan Senior Consultant for and Beijing while SIA add-
end of March. The carrier economic situation. This, “to- Aerospace & Defense, says ed another daily frequency
had been flying daily to Lon- gether with exorbitant gov- that, “Part of the network only to be passed onto Scoot
don Gatwick and four times ernment taxes, have placed rationalisation process is later,” said Amartya.
a week to Paris Orly. “These cost pressures on operating also to bring passengers “The overall grand strat-
changes will improve op- long-haul low cost flights from European destinations egy sets up parallel routes
erating cost efficiencies and between Asia and Europe, on MAS up to Kuala Lum- from Europe and South Asia
consolidate its network to fo- compromising our ability to pur and then giving them through Singapore and Kua-
cus on markets where it can offer the low fares AirAsia a choice to scout South East la Lumpur reaching the far
build a leadership position X is known for,” he said. He Asia and move further to end of the world terminat-
in 2012,” says AirAsia. also blamed taxes and the Australia either on Qantas ing in Australia and New
Azran Osman-Rani, CEO emission trading seheme. or on a low cost model. Key Zealand each serving its
of AirAsia X said “AirAsia On India, he said, “As for to the rationalisation and op- own market and earmarked
X remains focused on main- Delhi and Mumbai, the con- timisation is improving how segment of passengers and
taining its global leadership tinued visa restrictions for the airlines interface at their each giving an opportunity
position in the low cost, travel between India and Kuala Lumpur hub. MAS to switch to a low cost net-
long-haul segment. We in- Malaysia, and the increase and AirAsia might develop work,” said Amartya.

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www.AsianAirlines-Airports.com January/February 2012 ASIAN AIRLINES & AIRPORTS