Give us Sydney, not Pyongyang, says AirAsia X

[Ahmad M 1]

When they stopped making money.

[Josh T 0]

Oh, I doubt they'll axe this route. They've been fighting for this one for such a long time, it wouldn't look good at all if they axed the route too soon.

[flee 5]

Oh, I doubt they'll axe this route. They've been fighting for this one for such a long time, it wouldn't look good at all if they axed the route too soon.

AirAsia X does not really care about looking good. To them, "you only look good if you make profits."

 

Just remember - even the prestigious London route was dumped because it did not make profits. So don't be surprised if Sydney (like Christchurch) is also dumped if it fails to perform.

[Waiping 12]

AirAsia X does not really care about looking good. To them, "you only look good if you make profits."

 

Just remember - even the prestigious London route was dumped because it did not make profits. So don't be surprised if Sydney (like Christchurch) is also dumped if it fails to perform.

 

I agree! London and Paris for example. Seems like D7's business model does not allow them to compete in some long haul flights.

[flee 5]

I agree! London and Paris for example. Seems like D7's business model does not allow them to compete in some long haul flights.

 

I think that many of us who criticised AirAsia X for cancelling the flights might not understand that they did it because they are no longer able to offer low fares to passengers AND profits to AirAsia X. As such there is no business case to fly to that destination any more.

 

Super long haul flights are very sensitive to fuel costs because fuel comprises a bigger portion of the total costs of operating those routes. With Airport Taxes, Duties and the ETS, they all add up. So I think D7 made the right call to stop EU flights before they become such a big problem as to threaten the viability of the airline as a whole.

[Waiping 12]

I think that many of us who criticised AirAsia X for cancelling the flights might not understand that they did it because they are no longer able to offer low fares to passengers AND profits to AirAsia X. As such there is no business case to fly to that destination any more.

 

Super long haul flights are very sensitive to fuel costs because fuel comprises a bigger portion of the total costs of operating those routes. With Airport Taxes, Duties and the ETS, they all add up. So I think D7 made the right call to stop EU flights before they become such a big problem as to threaten the viability of the airline as a whole.

 

Wonder why D7 did not build on their LCC model up towards FCC to continue doing business there. Lack of know-how? They are definitely not short of aircraft, though.

[Mohd Suhaimi Fariz 2]

Wonder why D7 did not build on their LCC model up towards FCC to continue doing business there. Lack of know-how? They are definitely not short of aircraft, though.

 

Then what's the point of flying with them? The only reason people choose D7 is because they're cheap.

[BC Tam 2]

Then what's the point of flying with them? The only reason people choose D7 is because they're cheap.

Something like moving up the food chain ?

Successful business models cannot remain static

An example may be Virgin Atlantic I reckon, started off as a fun loving LCC'ish thing - look at what it is today

[Waiping 12]

Then what's the point of flying with them? The only reason people choose D7 is because they're cheap.

 

I don't 100% agree that they are cheap. Serious. I have bought MH tickets that are cheaper than AK. Plus other FCC also run their own promo and if you add up sometimes it's pretty close to what you pay for on AK/D7. When the cost is the same you'll definitely not flying AK/D7, or low cost for that matter. The smart money is on checking all available flights from all airlines for that particular route.

 

My point is perhaps AK/D7 can improve on their service offering and charge slightly higher for services to these route. It seems like they just want to stick to low cost, but not necessary always charge this way.

 

Something like moving up the food chain ?

Successful business models cannot remain static

An example may be Virgin Atlantic I reckon, started off as a fun loving LCC'ish thing - look at what it is today

 

Exactly my point.

[Naim 6]

As a traveller, I find this LCC/FCC/whateverCC thing irrelevant. I have no prefered airlines as long as I like the price. Last Oct, I did KL - Oslo with Qatar for RM1.2k, this weekend I'm doing KL - St Petersburg with Emirates for RM2.4k. In June I'm on for Manila-Davao at RM50 with AirAsia PH.

 

===

[Waiping 12]

As a traveller, I find this LCC/FCC/whateverCC thing irrelevant. I have no prefered airlines as long as I like the price. Last Oct, I did KL - Oslo with Qatar for RM1.2k, this weekend I'm doing KL - St Petersburg with Emirates for RM2.4k. In June I'm on for Manila-Davao at RM50 with AirAsia PH.

 

===

 

Of course some LCC will tell you that they are LCC, but they would like to charge FCC fare.

[Mohd Suhaimi Fariz 2]

Something like moving up the food chain ?

Successful business models cannot remain static

An example may be Virgin Atlantic I reckon, started off as a fun loving LCC'ish thing - look at what it is today

 

I thought VS is not highly regarded now as it was before? At least that's the impression I got browsing through Airliners.net

[BC Tam 2]

I thought VS is not highly regarded now as it was before? At least that's the impression I got browsing through Airliners.net

Probably at a trough of these hi-low cycles that airlines are so partial to

[Mohd Azizul Ramli 2]

The official inaugural flight album. http://www.facebook.com/media/set/?set=a.10150770465882387.466301.18801397386&type=1

[Josh T 0]

As a traveller, I find this LCC/FCC/whateverCC thing irrelevant. I have no prefered airlines as long as I like the price. Last Oct, I did KL - Oslo with Qatar for RM1.2k, this weekend I'm doing KL - St Petersburg with Emirates for RM2.4k. In June I'm on for Manila-Davao at RM50 with AirAsia PH.

 

===

Completely agree! I'll choose to fly D7 instead of MH if the price is right for me.

[KC Sim 2]

While AirAsia X's attractive fares is going to slaughter MAS - insofar as budget-conscious travellers such as backpackers, students and even well-heeled informed travellers - it is likely also a nail in the coffin for those who were hoping that Qantas would return to KUL.

 

When Qantas and British Airways left Kuala Lumpur, their chief miff was the low yield (at that time, MH's fares were pressuring them to match or walk away) on the KUL route.

 

Would be interesting to see what IAG's interest in MH would turn out to be.

 

KC Sim

[Josh T 0]

What I foresee is QF code-sharing on MH metal on the KUL-SYD/MEL/BNE/PER/ADL routes and BA code-sharing on MH metal on the KUL-LHR route. I also think JQ might possibly make a comeback to KUL to compete with D7.

[Kee Hooi Yen 0]

A quick search on AK's website shows booking available for D7 second daily KUL-SYD in July 2013

[Mohd Suhaimi Fariz 2]

A quick search on AK's website shows booking available for D7 second daily KUL-SYD in July 2013

 

And this is why MH's not deploying the A380 to SYD or any other AU destination. D7 taking up the capacity and pushing the number of seats available on MY-AU routes to the limit set by bilateral agreements.

[amanairways 0]

Wahhhh air Asia , so powerful ah !!

Prefer MH any day ....

[flee 5]

A quick search on AK's website shows booking available for D7 second daily KUL-SYD in July 2013

Due to the lack of space at LCCT (only 3 parking slots) D7 has not taken delivery of new aircraft since its last delivery in November 2010 (9M-XXH).

 

They are planning to take quite a lot of new aircraft next year, in conjunction with the opening of KLIA2 - both from their own order book and from ILFC. So they got to send them somewhere!

[Mike P 0]

Do I expect the revival of European routes?

[flee 5]

Do I expect the revival of European routes?

I think it will be another few years before they relook the European routes. Until they get the A350 (or the oil prices fall), the economics will not work out favourably. They also have issues with the EU carbon taxes and the UK Air Passenger Duty.

[Mike P 0]

I think it will be another few years before they relook the European routes. Until they get the A350 (or the oil prices fall), the economics will not work out favourably. They also have issues with the EU carbon taxes and the UK Air Passenger Duty.

 

Ever recall Uncle Tony mentioned USA is another piece of cake that cannot be missed. I supposed USA will not be looked into as long as European routes remained KIV.

[flee 5]

Ever recall Uncle Tony mentioned USA is another piece of cake that cannot be missed. I supposed USA will not be looked into as long as European routes remained KIV.

Yes, Asia Pacific will be their focus in the near term as this is the area of economic growth and huge populations.

Edited November 1, 2012 by flee