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AirAsia X-ing services to 5 cities

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Now that D7 is considering to pull CHC out of its route, and rumour has it that MH is looking into giving AKL the boot (rumour sahaja, mind you), probably it is high time for NZ to consider KUL for their ASEAN hub? I'd take NZ anytime over MH/D7 or JQ (KUL-SIN-AKL)

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Now that D7 is considering to pull CHC out of its route, and rumour has it that MH is looking into giving AKL the boot (rumour sahaja, mind you), probably it is high time for NZ to consider KUL for their ASEAN hub? I'd take NZ anytime over MH/D7 or JQ (KUL-SIN-AKL)

 

NZ is a star alliance, other than choosing SIN or BKK as their hub, they wont choose KUL.

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NZ was awarded airline of the year (again) recently. Would have been nice to see their All-Black B777-300ER landing @ KLIA.

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now that D7 long haul budget routes are not that profitable - what would they do with its future A350s? - as their changed strategy now is more medium haul flights less than 8 hrs which enables them to fly its aircrafts more efficiently and more places than using one aircraft flying 14 hrs to just one place. Hence their current A333s are more efficient for sectors less than 8 hrs.

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now that D7 long haul budget routes are not that profitable - what would they do with its future A350s? - as their changed strategy now is more medium haul flights less than 8 hrs which enables them to fly its aircrafts more efficiently and more places than using one aircraft flying 14 hrs to just one place. Hence their current A333s are more efficient for sectors less than 8 hrs.

 

Perhaps they will lease their A350s it to MAS ? :pardon:

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Well D7 is not scheduled to receive its A350s until 2017 - a lot can happen in the next 5 years. So lets wait and see...

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This news is not related to D7, it's about QZ. Sorry if this posted on the wrong thread.

 

Air Asia has confirmed QZ will suspend its Darwin - Bali/Denpasar services from April 2012. The last service is currently slated for Sunday 29 April 2012 (according to the online booking engine)

 

http://www.abc.net.au/news/2012-03-02/air-asia-terminates-darwin-services/3865416?section=nt

 

Compare to other Australian airports, I think Darwin is the weakest link. Dunno why Darwin having a hard time sustaining foreign airlines. There are a number of international airlines who pulled out from DRW in the past - BI, GA, MH, SQ, MZ etc. and now QZ

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Compare to other Australian airports, I think Darwin is the weakest link. Dunno why Darwin having a hard time sustaining foreign airlines. There are a number of international airlines who pulled out from DRW in the past - BI, GA, MH, SQ, MZ etc. and now QZ

 

Actually, what is there in Darwin? Whenever I think of AU, my mind automatically goes to Sydney & Melbourne - and to a lesser extent Perth & Brisbane. Never even thought about Darwin.

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I hope D7 doesn't axe MEL ! What are the strongest markets/routes on D7's route map ? Atleast these would keep D7 going in the foreseeable future.

 

Talking about DRW, the city itself is small, but is trying to create a "HUB" for short hops within ASEAN from ports such as CNS, OOL, BNE, SYD, MEL & ADL. JQ is trying to make DRW a HUB for shot hops with already flights to MNL, SIN & DPS but recently have dropped SGN. It's true Darwin doesn't really have a tourism appeal, why go to a place where its x5 expensive when you can holiday in a much cheaper place just 1-2 hours away?

Edited by soorox

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KUALA LUMPUR, March 2 (Bernama) -- AirAsia X is reviewing all its long haul networks in view of increasing fuel price and airport charges, Chairman Tan Sri Rafidah Aziz says.

 

She said some routes were no longer viable as charges and costs had been raised in all overseas airports it was flying to.

 

The most effective operations for the company were seven and eight-hour flights in order to keep up the profitability, she said in reply to a question whether AirAsia X will withdraw its Kuala Lumpur-Christchurch-Kuala Lumpur route.

 

Speaking to reporters at the National Association of Women Entrepreneurs of Malaysia Lecture Series here today, she said: "You can fill up the flights but it is still not making money if the cost keep on increasing like petroleum.

 

"Every airline is facing this problem and AirAsia X is no different," Rafidah said.

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Speaking to reporters at the National Association of Women Entrepreneurs of Malaysia Lecture Series here today, she said: "You can fill up the flights but it is still not making money if the cost keep on increasing like petroleum.

What is it with Malaysians that every little ill has to be linked to hike in fuel costs ?! :wacko:

Edited by BC Tam

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I think for D7, fuel cost will be a larger proportion of total costs. This is because it has already cut all the other costs that are within its control. Airport fees and taxes and fuel costs are out of their control.

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Re-accommodation Arrangements for AirAsia X Passengers

 

Arising from the suspension of four AirAsia X routes between Malaysia and two cities in India and Europe respectively, Malaysia Airlines would like to clarify its role in the re-accommodation arrangements for AirAsia X passengers impacted by this situation.

 

a) AirAsia X has negotiated with Malaysia Airlines for passenger re-accommodation arrangements, whereby AirAsia X would purchase seats on Malaysia Airlines to transfer passengers impacted by the recent suspension of its flights between Kuala Lumpur and London Gatwick, Paris Orly, Mumbai and Delhi.

 

B) AirAsia X is expected to communicate and confirm directly with the affected passengers if they actually fly on alternative Malaysia Airlines flights to or from London Heathrow, Paris Charles De Gaulle, Delhi and Mumbai airports. Consequently, once AirAsia X has offered alternative flights on Malaysia Airlines to affected passengers, the offer should be treated as a confirmed booking and new e-tickets will be issued separately.

 

c) Due to the volume of bookings involved, AirAsia X is working with Malaysia Airlines to process the various passenger bookings in batches for the issuance of fresh e-tickets and priority is given to bookings with earlier travel period. AirAsia X is then expected to transmit these Malaysia Airlines e-tickets to the passengers concerned.

 

d) Where passengers have already been told by AirAsia X that they are flying on Malaysia Airlines, and have yet to receive their new e-tickets, please be assured we are working with AirAsia X for the issuance of these tickets. If there any specific enquiries with regards to these e-tickets, kindly contact AirAsia X direct.

http://www.malaysiaairlines.com/hq/en/highlights/reaccomodation.html

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AirAsia seen riding out rough patch

 

3282l.jpg

An AirAsia Airbus A320 (foreground) sitting on the tarmac while another Air Asia aircraft taxis at the low-cost air carrier terminal of the Kuala Lumpur International Airport. Picture: AFP

 

(KUALA LUMPUR)- Thursday, March 8, 2012

 

AFTER a decade of unbroken success, expansion and accolades, recent events have brought budget airline pioneer AirAsia and its flamboyant boss Tony Fernandes down a little closer to earth.

 

Fernandes, who built AirAsia into one of aviation's biggest successes, will this month cease unprofitable London and Paris routes served by long-haul unit AirAsia X in the first step back for his fast-growing low-cost network.

 

Malaysia-based AirAsia's 2011 profits were halved to US$186 million due to rising fuel costs and global uncertainty, competitors are proliferating, and the company faces allegations of poor service and deceptive practices.

 

But despite the unfamiliar negative news, the route pullback and a resulting refocusing on Asia could leave Fernandes's empire even stronger, more focused, and still a step ahead of its competition, analysts said.

 

"Their prospects remain very strong," said Shukor Yusof, an aviation analyst with Standard & Poor's in Singapore, citing continued healthy forward bookings and effective management. "It is still the leading low-cost carrier in this part of the world and will be for some time yet."

 

Fernandes, 47, took over near-dead AirAsia in 2001 and, with his motto "Now everyone can fly," built it into Asia's largest no-frills carrier, tapping into the wanderlust of the region's emerging middle class.

 

Routes spread quickly in Southeast Asia and the 2007 launch of AirAsia X extended the reach to China, India and later Europe.

 

But the days of global expansion seem over, for now. Besides London and Paris, Mumbai routes were chopped in January and Delhi flights stop this month.

 

Analysts said the group, which currently serves about 80 cities worldwide in more than 20 countries, appeared to have discovered the limits of the budget airline model.

 

"What AirAsia X has found out is that once flights get up to nine, ten hours or more, you struggle to make money with the low-cost model (due to fuel costs and the need for enhanced passenger services)," said Brendan Sobie of the Centre for Asia Pacific Aviation.

 

The European foray was useful for marketing. Fernandes, who already owned the Lotus now renamed Caterham Formula One team, bought English Premier League team Queens Park Rangers last year, allowing him to emblazon AirAsia's logo across player jerseys.

 

AFP

 

Source: http://www.bt.com.bn...out-rough-patch

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AirAsia X's flights to Christchurch are under review by the Malaysian-based airline less than a year after it launched into the city with much fanfare.

 

AirAsia X has operated four services a week out of New Zealand on a Christchurch-Kuala Lumpur route since its launch in April, but those long-haul routes were being reviewed, Christchurch International Airport chief executive Jim Boult confirmed yesterday.

 

Passenger numbers out of the Malaysian hub were hit significantly by the 6.0 and 5.85 magnitude earthquakes on December 23.

AirAsia X chief executive Azran Osman-Rani said it was too early to say what would happen with the Christchurch to Kuala Lumpur route.

 

"It's still very premature ... we're obviously studying it, working hard to keep the route going because the earthquakes, especially the ones in December, have slowed down some demand.

 

"But we're still pushing hard on all cylinders to keep it going. We've not made any decisions to that effect [of a withdrawal from that route]."

 

Osman-Rani downplayed a report in The Star, a large circulation Malaysian newspaper, suggesting the route might be withdrawn.

Last month the newspaper reported: "Those in the know claim that AirAsia X is close to finalising details on whether to exit from the Indian (New Delhi, Mumbai), European (London and Paris) and Christchurch routes."

 

Less than a week later AirAsia X canned services to those destinations, except Christchurch, affecting hundreds of Kiwi travellers.

 

The company blamed high jet-fuel prices, soaring taxes and a poor global economy for the withdrawal. Industry insiders said the airline was looking at whether it should continue the longer haul flights.

 

Osman-Rani said: "Don't believe everyone who claims they're 'in the know'."

 

He confirmed he and AirAsia X managers had met a group including Christchurch Mayor Bob Parker that travelled to Asia recently.

 

"Yes, it was good to catch up with [Parker]. He showed us the plans on the whole rebuilding of Christchurch - it was a very impressive plan."

 

Parker was credited in helping win Christchurch the routes, having met with the kingpin stakeholder in AirAsia X - Tony Fernandes.

 

Parker yesterday said recent news that Air New Zealand was struggling showed a tough global airline environment, within which AirAsia X was looking at the Christchurch route.

 

"There's a lot of rethinking and chopping of routes going on.

 

"AirAsia X is a major contributor to the South Island tourism economy," Parker said.

 

"Obviously, we would like to see that route maintained."

 

The route is worth up to $80 million of annual economic benefit to the city and could stimulate hundreds of jobs, according to one study.

 

Boult said he had met Osman-Rani to discuss how the route was performing but could not guess AirAsia X's plans.

 

Fuel prices for airlines were the biggest issue, having gone up about 30 per cent in the last 12 months or so.

 

Airport representatives had talked to several companies on the trip to Asia, with two well-established airlines in particular being interested in introducing new services into Christchurch.

 

"I would be disappointed if we didn't have one of them over the line in the next two years."

 

Christchurch & Canterbury Tourism chief executive Tim Hunter said the organisation was putting extra marketing efforts into Malaysia via a $300,000 campaign to help boost capacity aboard the AirAsia X aircraft.

 

Source: http://www.stuff.co.nz/the-press/business/6496732/AirAsia-X-may-ditch-flights-to-city

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AirAsia X may face penalty if it ends flights to Christchurch

 

KUALA LUMPUR: A New Zealand-based online news portal reported that budget long-haul carrier AirAsia X could be slapped with a penalty should it pull out of the KL-Christchurch-KL route.

 

The Press reported that Christ-church International Airport chief executive Jim Boult said the airline would have to make a refund to the airport on a joint marketing plan it had agreed to to win AirAsia X's business.

 

According to Boult, part of the deal was for AirAsia X to refund on a pro-rata basis some of that marketing input if it pulls out within two years. It started flights on the KL-Christchurch route on April 1 2011.

 

The online news portal quoted sources as saying that the airline has started preparations, including talks with Air New Zealand, for pulling out of Christchurch.

 

AirAsia X chief executive Azran Osman-Rani did not respond to e-mailed questions.

 

Boult did not tell The Press the budget of the joint marketing plan or other details of the agreement between the airport and the airline.

 

Last June, AirAsia X chief executive Azran Osman-Rani said the airline was "absolutely" committed to Christchurch for at least two years despite higher fuel prices hitting profitability on longer-haul flights.

 

The KL-Christchurch route is about 11 hours long.

 

According to Christchurch & Canterbury Tourism chief executive Tim Hunter, AirAsia X would have delivered 25,000 extra Asian visitors into Christchurch in a full 12 months.

 

Source: http://www.btimes.com.my/Current_News/BTIMES/articles/ppress/Article/index_html

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The news of D7 axing Christchurch is gathering pace. It is sad that whatever from the rumour mill in Malaysia will turn out to be true, just a matter of time.

 

Sadly Azran Osman Rani, initially, insisted that they were not chopping any route, rather labelling it as 'under review'. D7 is trying to avoid double embarrassment and double whammy from the public by axing so many route at the same time. Of course, I agree economy sensitive airlines like A7, AK has every right to drop loss-making route; in public perception it is a total different story for them.

 

D7 has finally realised that long haul low cost doesn't work. Why would one want to be cramped in tight seat pitch and narrow seats when you can travel with full fare carriers with around the same price after all the add-ons?? Jetstar has been pretty careful when planning, sticking to Asia Pacific Rim only. Perhaps D7 should use bundled pricing system to attract more customers like what Jetstar is doing. Scoot is about their bundled fares as well.

Edited by JuliusWong

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Oil price hikes was what killed the long hauls - the A340-300 was not economical enough. I am not sure if using a B77W would make the economics work better as those aircraft will cost more to buy or lease. The bottom line may still be similar, if they cannot increase their load factor.

 

I think D7's fares are OK if you are an experienced LCC traveller (i.e. those who are able to plan and book well in advance). The Australians are particularly fond of a jaunt up to the UK at 50% discount from (non Middle East) full fare airlines. That is why most of D7's flights are full.

 

I think that the state owned Middle East airlines are one of the causes of low profitability for airlines like MH/SQ/D7. They are subsidised and can take losses just to gain market share. Once the competition is eliminated, they have a huge market all to themselves and then can charge anything they like. Some govts (e.g. Canada) have restricted their market access to protect their national carriers. I don't think Malaysia will do that - MAS/D7 has shown that they prefer with withdraw from the market.

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This is like.... "padan muka" to Air Asia X!

 

Setinggi-tinggi tupai melompat, akhirnya jatuh juga !

 

"up there" shod hv learnt from the failure of FAX n b more diligent n careful

Edited by Ruiz Razy

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They axe STN & ORY due to carbon emission tax, now they axe CHC due to fuel price. I thought fuel price should affect all D7's long haul routes?

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It's official - someone should change the topic from 4 cities to 5 cities!

 

AirAsia X: To Suspend Services To Christchurch, New Zealand

 

Published March 12, 2012

Dow Jones Newswires

 

KUALA LUMPUR – AirAsia X, the long-haul low-cost affiliate of AirAsia Bhd. (5099.KU), said Monday it would suspend its services to Christchurch, New Zealand to focus on its core markets.

 

The four flights a week between Kuala Lumpur and Christchurch will be suspended in late May, with the last flights scheduled for May 30 from Kuala Lumpur and May 31 from Christchurch, AirAsia X said in a statement. The move follows its suspension of European and some Indian routes early this year to concentrate capacity in core markets including Australia,

China

and Japan.

 

Although the Kuala Lumpur-Christchurch route has recorded "close to 80% loads" in 2011, it has been affected by the spiraling cost of jet fuel, the firm said. "Since the launch of the route, jet fuel prices have increased in excess of 30%, and are currently still at very high levels," said AirAsia X Chief Executive Officer Azran Osman-Rani.

 

Copyright © 2012

Dow Jones Newswires

 

 

Source: http://www.foxbusine...ch-new-zealand/

Edited by Mohd Suhaimi Fariz

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====

 

Dear Guest,

 

Please be informed that effective from 1st June 2012, AirAsia X will be suspending our flights to/from Christchurch.

 

We will be sending individual notifications to all guests affected by this suspension, in stages, based on your respective flight dates, via email and SMS.

 

The email notices will also outline the various service recovery options offered which are:

 

i. cancel your reservation and opt for Full Refund/Credit Shell; or

 

ii. move to any of our other operating flights from/to Christchurch, before the 1st June 2012*; or

 

iii. reroute your flights from/to Christchurch to/from an AirAsia X port in Australia (Sydney, Gold Coast or Melbourne) to Kuala Lumpur# or any other AirAsia X destinations.

 

Please take note alternative arrangements has to be made on your own for the trans-Tasman travel.

 

*at no cost, subject to availability

 

# at no cost

 

In order to avoid undue congestion and delays in replying to your queries, we request that you contact us in relation to any queries you may have, only after you have received your individual notice.

 

For further explanation on the reasons for our flight suspensions, please refer to our Press Release on 12th March 2012.

 

***Important Notice:***

 

For Option iii)

 

Guest who choose to transfer their Christchurch-Kuala Lumpur flights to an AirAsia X service Australia-Kuala Lumpur (Sydney, Melbourne or Gold Coast)or vice versa will need to make their own arrangements and payments for trans-Tasman travel.

 

For guests who have purchased domestic flights within New Zealand to connect with AirAsia X’s suspended Christchurch services, Air New Zealand and Jetstar will allow AirAsia X guests to transfer the payment made for the domestic flight to a trans-Tasman fare. There will be a call centre fee per person per segment for this service and fare difference if applicable.

 

(Example: A guest who paid for a return domestic flight from Auckland to Christchurch to fly with AirAsia X, who transfers their AirAsia X ticket to the Sydney-Kuala Lumpur service, can transfer the domestic payment towards a flight from Auckland to Sydney to connect to the AirAsia X service.)

 

To arrange this transfer, guest will need to contact the Air New Zealand or Jetstar call centre, verify connecting travel on AirAsia X, and arrange for their domestic flight to be transferred to a trans-Tasman flight (and pay any fare difference and the contact service fee).

 

Guests opting for Jetstar will need to contact Jetstar before 26 March, 2012 with the above details.

 

Call centre details:

 

- Air New Zealand: 0800 737 000

 

- Jetstar: 0800 800 995

 

 

Before booking trans-Tasman travel please consult airline timetables to ensure your flight to Australia provides time to complete customs and immigration, pick up any bags and check-in at AirAsia X for your flight to Kuala Lumpur (and vice-versa for the return flight from Kuala Lumpur to Australia and returning to New Zealand). A transfer time of at least 4 hours is recommended but please note that neither AirAsia X nor the trans-Tasman carrier can be held accountable for any missed connections.

 

 

 

Sincerely,

 

AirAsia X Sdn Bhd

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AirAsia X drops Christchurch - KL service

 

AirAsia X will stop flying between Kuala Lumpur and Christchurch at the end of May, just over a year after the service started.

 

The low fare affiliate of AirAsia has announced the suspension of its services to Christchurch as part of a realignment of its network to focus on its core markets.

 

The current four times weekly flights between Kuala Lumpur and Christchurch will be suspended with the last flights on May 30 from Kuala Lumpur and the return next day.

 

AirAsia X will offer passengers who hold bookings after these dates 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, all at no extra charge.

 

The decision follows the airline stopping its European and Indian routes early this year to improve operating cost efficiencies and concentrate capacity in AirAsia X core markets of Australia, China, Taiwan, Japan, Korea and Iran.

 

CEO of AirAsia X Azran Osman-Rani said 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".

 

Osman-Rani said the Kuala Lumpur - Christchurch route has performed strongly in terms of demand since its launch in April 2011, recording close to 80% loads in 2011.

 

However, the Christchurch route has been impacted by the spiraling cost of jet fuel which has increased by more than 30% since the launch, he said.

 

"The high cost of fuel has compromised our ability to offer our renowned low fares."

 

Dismay at Christchurch Airport

Christchurch International Airport CEO Jim Boult says he is very unhappy 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," Boult said.

 

AirAsia X began planning the Christchurch-Kuala Lumpur service in early 2010.

 

Boult said the increase in fuel prices since that time has put huge pressure on the airline's low cost model, and, combined with the length of the Kuala Lumpur to Christchurch sector, has made the service unprofitable for the airline, which has been offering fares as low as $99.

 

He said forward bookings for the next couple of months are promising, despite the airline recently withdrawing its connecting flights to Europe on which many travellers relied.

 

"We are very sorry to see AirAsia X depart, but sincerely hope we can welcome it back in the future."

 

Boult said he feels greatly for the tourism industry in the South Island.

 

"Many operators have told us how much the AAX service has delivered in direct new business, so this loss will be felt through the entire industry".

 

Source: http://tvnz.co.nz/travel-news/airasia-x-drops-christchurch-kl-service-4772833

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