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AirAsia X-ing services to 5 cities

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Who would want to fly them if they keep launching new routes and pulling them out at a short notice.

Bargain hunters ? :pardon:

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So? What what happened to the 'Richard Branson becoming a stewardess' flight?

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I was thinking, since D7 has the gut to announce the cut on these routes in one go, they must have reached an agreement to let them transfer the affected passengers to MAS (as Option 3 in their press release). Otherwise it will be a huge blow to their reputation. Who would want to fly them if they keep launching new routes and pulling them out at a short notice.

Everyone is learning the LCC business. I must say that, compared to the AUH cancellation, D7 is dealing with these in a much better way. The only people who need to worry are those who have connecting flights that are 3 or 4 hours from the D7 flights.

 

When I travelled on D7 last year, I made sure that my other travel arrangements (e.g. trains, flights) were at least one day from the D7 flights. I don't trust D7 to keep their schedules!

 

D7 also does not start a new route with the intention of cancelling it later. The success or failure of a route really depends on how well the costs are managed and the yields from it. The OOL route was D7's first and it is still being operated. Just remember that D7 is not state subsidised and it is a commercial operation. So it lives or dies by the laws of economics.

Edited by flee

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So? What what happened to the 'Richard Branson becoming a stewardess' flight?

 

Maybe SRB can trade the red uniform for kebaya on MH's 1st A380 flight to LHR :rofl:

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Yup, opportunists like me. :D

Watch out for SYD launch!

 

Launch offers are usually the best deals - no sale offers can beat them (for return fares)! :)

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Axing Of Routes Is Pure Business Decision, Says Tony

 

KUALA LUMPUR, Jan 14 (Bernama) -- The decision by AirAsia X to suspend four of its loss making international routes, is purely a business decision and must be viewed positively by Malaysians, says co-founder and chief executive officer of AirAsia, Tan Sri Tony Fernandes.

 

He said allegations that the move by AirAsia's sister company to drop the Kuala Lumpur - Mumbai, New Delhi, Paris and London routes, was a move to accommodate and establish a business strategy with Malaysia Airlines, was totally untrue and "irritating".

 

"Azran Osman Rani (AirAsia X's CEO) made a business decision. We were the first to introduce a low-cost long-haul airline model and now the Singaporeans are following suit.

 

"In this case, he discovered that the best profitability is to have between four to eight hour (routes), with one type of engine and aircraft, which is the Airbus 330.

 

"So, this has nothing to do with MAS or AirAsia. On the flip side, Malaysia Airlines CEO, Ahmad Jauhari, is hearing that the routes suspension is to accommodate AirAsia," he added.

 

Tony was speaking to reporters after delivering a keynote address at the 2012 Retail Strategy Series, organised by Maybank Investment Bank and Maybank Kim Eng, here today.

 

He said that it was good that MAS and AirAsia can collaborate in certain areas, but wrong to say, this would destroy competition.

 

Asked about his aspirations for 2012, Tony said AirAsia had a positive start to the year, with January sales expected to be a record, when compared to the corresponding months of previous years.

 

"I think we will have a record January. I was looking at the tremendous sales coming from the North Asian region and was very delighted with the level of demand.

 

"We will continue to grow every year. Last year, we recorded 32 million passengers, an increase from 2010.

 

"Thus, I am bullish on the growth of AirAsia this year and in fact, for the next ten years," he added.

 

He said the low-cost airline had just finished its ten-year plan with its 70 managers.

 

"To date, the future looks very good. Its up to us to keep our costs down, make airports play a part as it is critical to the growth of an airline, and keep fares down.

 

"We cannot grow if we increase our fares. In fact it is against my philosophy," Tony said.

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believed the MH A380 is too big for MH to sell its seats without some heavy discounting - but perhaps since ak-mh swap, MH can have say a section of the back of the aircraft to be designated as AK/D7 with the section for abt 150 seats in the typical D7 layout and colors and have even D7 flight attendants selling inflight meals n amenities.

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believed the MH A380 is too big for MH to sell its seats without some heavy discounting - but perhaps since ak-mh swap, MH can have say a section of the back of the aircraft to be designated as AK/D7 with the section for abt 150 seats in the typical D7 layout and colors and have even D7 flight attendants selling inflight meals n amenities.

 

That's definitely not going to happen since they're already set on the layout - it's been advertised in Going Places.

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..... - but perhaps since ak-mh swap, MH can have say a section of the back of the aircraft to be designated as AK/D7 with the section for abt 150 seats in the typical D7 layout and colors and have even D7 flight attendants selling inflight meals n amenities.

Innovative, thinking outside the box concept :good:

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AirAsia X Making Arrangements For 30,000 Cancelled Online Bookings

 

LONDON, Jan 30 (Bernama) -- AirAsia X is making arrangements for at least 30,000 cancelled online bookings following the low-cost carrier's withdrawal from London, Paris and India, its chairman, Tan Sri Rafidah Aziz, said.

 

Though the costs for this exercise have not been disclosed, Rafidah said the withdrawals have curtailed the dimensions of losses already felt by AirAsia X long-haul routes following escalating oil prices and government taxes.

 

As promised, the budget airline announced that all passengers, who hold bookings to the destinations, will be offered an alternative travel option at no additional cost to mitigate the inconvenience caused from the route withdrawals.

 

An e-mail stating available options will be sent to the affected passengers, including a full refund, a re-route to another AirAsia X destination (in Australia and North Asia) or move to an alternative carrier where available.

 

Rafidah also said any possibility for AirAsia X's return in the future has not been written off as the budget airline's strategy for Europe in the future remains open as she said nobody had expected for the frills-free airline to fly long-haul in the first place.

 

"Having said that, what happens in the distant time to come, we cannot tell, but what we can say is in the foreseeable future is as what it has been announced," she told a media conference after delivering a keynote address at the 2012 United Kingdom and Eire Council of Malaysian Students' Annual Summit at Marble Arch.

 

Despite the cancellations, the former international trade and industry minister said AirAsia still remained as the away jersey kit sponsor for the London football club, Queens Park Rangers, owned by the airline's founder Tan Sri Tony Fernandes.

 

The sponsorship deal is until the end of the 2012/2013 football season.

 

"When our sponsorship ends, the board will have to make a decision," the former International Trade and Industry Minister said.

Commenting on reports highlighting the disappointment of Malaysian students and frequent AirAsia travellers to Europe, Rafidah said what happened was unfortunate and what was done was in the business best interest.

 

"When a business strategy is not working, we've to resolve it, which we did with many early warnings," she added.

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30, 000 bookings are a lot to be covered....Guess some AirAsia staff is working overnight, burning mid night oil.

 

I pity those who had arranged for holiday months if not years back, to go on holiday. Connecting flights, car rental, hotel rental, sightseeing trip etc a lot of travel itinerary must have been jumbled up.......:(

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AAX to axe Christchurch route next?

 

PETALING JAYA: After announcing its withdrawal from popular European and Indian cities earlier this year, AirAsia X (AAX) is set to axe its KL-Christchurch-KL route, according to a source.

 

“It may announce the cut as early as this week and suspend flights within the next few months,” the source added.

 

Those in the know claimed that the airline was making losses on the route although it did stimulate demand for the twice weekly flights to New Zealand.

 

In January, AAX said it would stop flying to London, Paris, New Delhi and Mumbai. It is learnt that AAX is moving away from long-haul to medium-haul flights.

 

“We see this as a change in network strategy as it is moving away from the longer flights,” CAPA Centre for Aviation senior analyst Brendan Sobie said.

 

AAX seemed to be focusing on routes that were in the eight to nine-hour flying radius and it would take 13 hours to fly to London or Paris and 11 hours to Christchurch.

 

The only other Asean airline to fly into Christchurch is Singapore Airlines which operates on a daily basis.

 

Sobie said that the farther an airline flew, the higher its cost and for LCCs, cost management is a big part of its business. He added that the biggest cost advantage for LCCs was really shorter flights.

 

Source: http://biz.thestar.com.my/news/story.asp?file=/2012/2/29/business/10824456&sec=business

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So, basically, long-haul LCC operations don't really work.

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I think what D7 really needs is an aircraft like the B787 to fly thin and long routes. With aviation fuel prices hitting the roof, fuel burn on long haul routes is a big problem for LCCs. That is why Qantas is rushing its first B787s to JetStar to enable it to have a competitive advantage.

 

I think that D7 will have to wait for the A350 to be delivered before it takes on long haul routes again. They may be negotiating with Airbus for earlier delivery slots, should these become available.

 

CHC maybe out - but what about AKL? Thought there's a large Malaysian presence in NZ?

I am not sure how big the NZ market is. However, AirAsia X should consider acquiring some A320s and base them in MEL or OOL. Then they can operate some short haul flights to CHC/AKL from MEL and/or OOL. However, to do that will need Aussie govt. approval - so they must be damn sure that there is sustainable business for these NZ routes.

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High fuel costs , carbon footprint taxes , uncomfortable seats ( narrow n tight) ,, nightstop crew costs, stronger n better products by others ....etc. Makes difficult for long haul low cost .

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and now dropping NZ soon. Seems that long-haul budget does not work so well and D7 is changing strategy to servicing flights between 6 to 8 hrs - as then it is able to utilises its planes more efficiently n fling more.

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So, basically, long-haul LCC operations don't really work.

Seems that long-haul budget does not work so well and D7 is changing strategy to servicing flights between 6 to 8 hrs - as then it is able to utilises its planes more efficiently n fling more.

Agreed! D7 is better off deploying those 333 on high demand regional routes where AK is flying their 320 to such as HKG and BKK. And may be it is time to introduce a few more Chinese cities...

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Yes, even AK/FD is not so keen on routes over 3 hours. So HKG would be ideal to hand over to D7.

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