Jump to content
MalaysianWings - Malaysia's Premier Aviation Portal
flee

AirAsia X-ing services to 5 cities

Recommended Posts

One thing we have to bear in mind, a lot of rumours that are reported in the Malaysian media do eventually come true... ;)

Either that or things can be twisted and spun to extract some measure of truth, according to one's requirement :)

The current 'we received money we never asked for' episode comes to mind ;)

Share this post


Link to post
Share on other sites

Looks like BT is not withdrawing the story despite D7's denials. It is adding more fire to it. This kind of rumour mill is to be expected in view of the share swap and CCF. Remember FY had to stop jet services due to "losses" and now D7 is also said to be making "losses" on the reported routes. Coincidence?

 

However, I think it makes sense for D7 to pull out of LGW because APD and ETS fees account for a large chunk of the ticket price, e.g. a return ticket to LGW (for March 2012 travel) costs RM 2,107, of which RM 639 is for taxes and other fees. That is about 30% of the fare charged!

 

Maybe they can increase their ORY frequencies or take over MH's FCO route in exchange for handing back the UK route so that it can fill its A380s.

 

 

OSK: MAS to benefit if AirAsia X scraps services to 4 cities

 

OSK Research says MAS will benefit from higher air fares fetched with the exit of its direct long-haul low-cost competitor.

 

 

KUALA LUMPUR: Malaysia Airlines stands to benefit if AirAsia X cancels its services to four cities, including London and Paris, a research house said.

 

OSK Research said MAS will benefit from higher air fares fetched with the exit of its direct long-haul low-cost competitor.

 

"While we understand that MAS' London route is already profitable, we reckon yields are not as high as it used to be before AirAsia X came into the picture," the firm said.

 

It was commenting on Business Times' report yesterday that AirAsia X had written in to the Ministry of Transport to withdraw its services to Paris, London, Mumbai and Delhi as early as February next year.

 

OSK Research noted that both AirAsia's London and Paris routes are loss-making or only breaking even at the very least.

 

The firm, however, said it was surprised with the reports as it understood that AirAsia intends to maintain its market and branding exposure in Europe for future expansion possibilities.

 

"This applies also to the New Delhi and Mumbai routes, which we reckon are seeing better demand relative to its London and Paris flights," it added.

 

Meanwhile, OSK Research said rumours are rife that AirAsia X supposedly had its Sydney route application approved by the MoT yesterday.

 

OSK Research has an "overweight" call on the aviation sector, with AirAsia Bhd being its top pick with a fair value of RM4.57.

 

The research house reaffirmed its "sell" call on MAS on concerns whether the carrier can implement a timely turnaround amid a high cash burn rate that is fast depleting its cash hoard.

 

Source

Edited by flee

Share this post


Link to post
Share on other sites

One thing we have to bear in mind, a lot of rumours that are reported in the Malaysian media do eventually come true... ;)

 

That's so true. They are "rumors" after all. Remember the denial about the previous election date? Haa...

Share this post


Link to post
Share on other sites

Until the time they get more efficient aircraft I think it's just prudent to chop the flights. LCC fares and A340s don't really gel.

Share this post


Link to post
Share on other sites

Until the time they get more efficient aircraft I think it's just prudent to chop the flights. LCC fares and A340s don't really gel.

Their new A332s will only arrive in the second half of 2012. If what they say about losses is true, I guess when they chop the A343s will depend very much on the price of aviation fuel.

Share this post


Link to post
Share on other sites

Their new A332s will only arrive in the second half of 2012. If what they say about losses is true, I guess when they chop the A343s will depend very much on the price of aviation fuel.

 

Initially I thought A332 doesn't have the range to do KL - London but looks like it does!

Share this post


Link to post
Share on other sites

At the expense of carrying more passengers, same case as CHC.

Share this post


Link to post
Share on other sites

A332 pax capacity should be approximately similar to the A343's.

Edited by flee

Share this post


Link to post
Share on other sites

I'm not really surprised if they really do drop DEL and BOM. Many people over at A.net who have taken their flights from KUL to either DEL or BOM said that their flights were virtually empty and highly unlikely for a low cost carrier to make money as yield is already very low. I guess D7 is better off just focusing on China and Australia for the time being. And it may be a good idea to let D7 to take over the KUL/HKG sector from AK. Demand clearly is big and their 333 fits the mission right :)

Edited by Isaac

Share this post


Link to post
Share on other sites

aiyo, no smoke without fire lah. <_>

 

we shall see what emerges in the near future. maybe tony realised that his D7 is not all he made it out to be and that's why he wants closer collaboration with MH. finger in all the pies, i think. :finger:

Share this post


Link to post
Share on other sites

Air Asia group (AAG) needs all routes under the sky and starts blaming everyone else when they don't get one or making money on that given routes........ However, with the slightest 'fart', they will axe those given routes and asking for more, be it at the expense of everyone else ....... 'Gaduh' with MAHB, shouted the loudest with regard to aerobridge services but kneeling down to airports authority such as SIN, HKG, BKK and TPE .......... :finger:

 

I have enough of AAG saga, boycotted them more than 5 years ago and FFS, I will open a bottle of champagne if they 'bungkus' tomorrow ......... :rofl:

 

 

:hi:

Edited by Lock SH

Share this post


Link to post
Share on other sites

In the A.Net version of the topic, it was reported that D7 posted a net profit of US$34.61m in 2010 and a net profit margin of 8.53%, which is outstanding. Which led me to question on the news since it does not supported by the corresponding facts and figures. I don't think this news will bode well for D7 in view of its listing soon.

Share this post


Link to post
Share on other sites

I think that it is smart of Azran to just shut up on this issue and let the rumours die. Perhaps there are anti-share swap and CCF parties who are trying to spoil D7's business climate by spreading some FUD. Note that it is BT who published the "news" - we seldom see sccops or good journalism from this newspaper.

 

To me, D7's biggest worry now is the very, very late completion of the new LCCT. They are more badly affected than AK. As such they should really be thinking of Plan B, should MAHB further delay the completion of the new airport.

Share this post


Link to post
Share on other sites

To me, D7's biggest worry now is the very, very late completion of the new LCCT. They are more badly affected than AK. As such they should really be thinking of Plan B, should MAHB further delay the completion of the new airport.

 

To me, Plan B is to screw KUL and expand in BKK / CGK!

Share this post


Link to post
Share on other sites

From what my insider in the engineering side said, the A340's are most probably going to be based with Air Asia Japan to fly to Hawaii and another American destination. Lets just wait and see. BOM and DEL are going very soon, its just a matter of time. Loads are like s#1t. MAS is doing a lot better in terms of pax. Indian's have money to spend and more or likely not prefer to travel on MAS.

Share this post


Link to post
Share on other sites

Air Asia group (AAG) needs all routes under the sky and starts blaming everyone else when they don't get one or making money on that given routes........ However, with the slightest 'fart', they will axe those given routes and asking for more, be it at the expense of everyone else ....... 'Gaduh' with MAHB, shouted the loudest with regard to aerobridge services but kneeling down to airports authority such as SIN, HKG, BKK and TPE .......... :finger:

 

I have enough of AAG saga, boycotted them more than 5 years ago and FFS, I will open a bottle of champagne if they 'bungkus' tomorrow ......... :rofl:

 

 

:hi:

I'm with you on that one! :drinks:

Share this post


Link to post
Share on other sites

Lol~ That's an A380 in that picture.. I don't think AK or D7 will ever fly an A380 :)

Neither AK nor D7 perhaps, but look closely and you'll notice that is probably the British subsidiary :D

Sir RB already has an interest in D7 and good buddy of T/S TF - why not build on that ?

And those two did not get to what they are today by being conventional :D

Edited by BC Tam

Share this post


Link to post
Share on other sites

Lol~ That's an A380 in that picture.. I don't think AK or D7 will ever fly an A380 :)

 

Never say never - they might one day take over MH's A380s just like they once did with their F50s and Twin Otters, along with the Kangaroo Route, and fit 800+ seats on those. :p

 

BTW looks like the magazine stole the pic from here: http://www.cardatabase.net/modifiedairlinerphotos/search/photo_search.php?id=00011583

Share this post


Link to post
Share on other sites

×
×
  • Create New...