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AirAsia X-ing services to 5 cities

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Inform us before slashing routes, Transport Ministry tells airlines

 

By Clara Chooi

March 13, 2012

 

KUALA LUMPUR, March 13 — The Transport Ministry today told local airlines to inform them of any route cancellations or additions to their services before enforcing the decision on travellers.

 

Minister Datuk Seri Kong Cho Ha added that apart from notifying the ministry, the carriers must ensure all matters must be resolved first, such as ticket sales, before any decision is implemented.

“Where they want to fly and how many times, additional destinations and routes cancellation, is a business decision of an airline. But each time they stop or add any routes, they have to inform us,” he was quoted as saying by Bernama Online today.

Ailing flag carrier Malaysia Airlines (MAS) recently put a stop to eight routes deemed unprofitable beginning January, including those from here to Surabaya, Johannesburg and Rome, as a part of efforts to stem losses.

The Malaysian Insider reported last December plans by AirAsia X to stop its popular budget flights to London, Paris, Delhi and Mumbai due to mounting losses. The long-haul affiliate of AirAsia also announced yesterday that it would stop flights to and from New Zealand by the end of May.

 

http://www.themalaysianinsider.com/malaysia/article/tell-us-before-slashing-routes-transport-ministry-tells-airlines/

 

 

Really ? :rolleyes:

(he forgot to say please !) :D

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D7 is already planning to use the spare capacity wisely. I just did a quick scan of their KUL-TPE and KUL-PER flights. They are adding up to 4 flights per week for these two destinations.

 

While PER may be the usual Aussie summer seasonal add-on, I think the additional TPE frequencies may become permanent, maybe to soak up the demand left behind when MH moves to NRT for their LAX flights.

 

They have earlier announced an additional 4 frequencies per week to HND, making it a daily service.

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D7 is already planning to use the spare capacity wisely. I just did a quick scan of their KUL-TPE and KUL-PER flights. They are adding up to 4 flights per week for these two destinations.

They deploying the 340's to TPE and PER ?

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They deploying the 340's to TPE and PER ?

Don't think so - the A333s will be from those taken off the India and NZ routes. They have mentioned that they are going to use the A343s for charters or wet lease agreements.

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Christchurch airport says AirAsia X has to refund monies

 

KUALA LUMPUR: Long-haul budget airline AirAsia X will have to refund monies forwarded to it under a joint marketing plan with Christchurch International Airport Ltd (CIAL).

 

CIAL chief executive officer Jim Boult confirmed this yesterday when contacted via email.

 

According to him, the fund provided to AirAsia X covers a variety of marketing initiatives tailored to suit its specific circumstance. Boult did not elaborate, citing confidentiality clauses.

 

AirAsia X announced on Monday that it would cease flights to Christchurch out of Kuala Lumpur from May 30.

 

AirAsia X entered into a commercial agreement with Christchurch Airport in April upon the launch of the route on April 1 2011.

 

In an earlier report, CIAL had said it invested years of work into attracting the carrier to Christchurch and had hoped that work can be banked as an investment in a future service.

 

According to Boult, AirAsia X is working with Air New Zealand on proposals to offer travellers who had already booked beyond the end of May flights to Christchurch via Australia.

 

AirAsia X will offer guests who hold bookings after May 30 an option of a full refund, a re-route to another AirAsia X destination (e.g. Australia to Kuala Lumpur or Kuala Lumpur to North Asia), or a rebook of a return flight prior to May 31.

 

All changes will be made at no additional cost to mitigate the inconvenience caused as a result of the withdrawal.

 

All those affected will receive an email stating the available options.

 

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

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D7 is already planning to use the spare capacity wisely. I just did a quick scan of their KUL-TPE and KUL-PER flights.

 

 

AirAsia X Ups Flight Frequency To Australia, Taiwan

 

SEPANG, March 14 (Bernama) -- AirAsia X, the long-haul and low-fare unit of AirAsia Bhd, will increase its flight frequency from Kuala Lumpur to Taipei and Perth as part of its network realignment strategy announced earlier this year.

 

It said the additional frequencies would see current daily flights to Taipei increasing to 11 a week from June 22 and to Perth to nine flights a week effective June 24.

 

"AirAsia X remains focused in strengthening its core market network in Australia, Japan, South Korea, China, Taiwan and Iran where it can build a leadership position in the long-haul and low-cost aviation sector this year," it said in a statement.

 

AirAsia X Chief Executive Officer Azran Osman-Rani said they are responding to the strong and growing travel demand to and from Australia and Taiwan.

 

"The demand for travel to Perth and Taipei recorded strong average passenger loads in excess of 85 per cent last year," he said.

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look, stop calling it 'long haul' - its called medium haul. it is clear you have failed at long haul low cost so stop giving so much spin.

Edited by Izanee

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Was KL-Christchurch a direct route or just an offshoot from KUL-OOL (Goldcoast)? It is reported that the flight is around 11 hours which indicates a direct flight between KUL-CHC.

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Christchurch is now a sad city after the earthquake, not many would go there. Even before that I pretty much doubt it can sustain the direct flight. Offshoot of OOL might be.

 

Only SQ flies there non-stop initially with their A340-300 and nowadays B777-200ER. The preferred destination out of NZ has always been AKL. I remember EK had to cut their MEL-CHC and BNE-CHC route because of low load.

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D7 does not have the capability to do that and it does not fit in with their business model. It will be too expensive to operate that way.

 

D7 has already said that their problem is not with demand (loads are over 80% in 2011). The problem is that the costs are too high for them to be able to offer bargain fares.

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Difficult balancing act - if fares are too high, demand will definitely drop. That is why D7 gave up, increasing fares may mean that the 80% load factor drops. When that happens, profitability suffers. Also remember that a lot of D7's forward bookings had lower fares than those booked nowadays. So the revenue and cost mismatch is even more acute.

 

Not easy to get it right, and with jet fuel going up and up, they have to do that calculation very often!

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Not easy to get it right, and with jet fuel going up and up, they have to do that calculation very often!

Even that is a difficult balancing act

If they keep dropping routes every now and then, citing costs all the time, credibility as a carrier that is serious about getting you from point A to point B will be impacted, unfavourably

Like it or not, should D7 decide to reinstate LGW, ORY etc for whatever reason, it will be a struggle to regain customers' confidence

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Even that is a difficult balancing act

If they keep dropping routes every now and then, citing costs all the time, credibility as a carrier that is serious about getting you from point A to point B will be impacted, unfavourably

Like it or not, should D7 decide to reinstate LGW, ORY etc for whatever reason, it will be a struggle to regain customers' confidence

 

Such approach still better than Qantas suspending flight in the very last minute!

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Even that is a difficult balancing act

If they keep dropping routes every now and then, citing costs all the time, credibility as a carrier that is serious about getting you from point A to point B will be impacted, unfavourably

Like it or not, should D7 decide to reinstate LGW, ORY etc for whatever reason, it will be a struggle to regain customers' confidence

Air travellers usually have short memories. So I don't think it is a problem. Price is more important to them.

 

I do not think D7 will revisit those destinations unless jetfuel prices drop well below US$ 100, the airport charges/APD/ETS are more reasonable, and closer to the date they will have their new A350s.

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Such approach still better than Qantas suspending flight in the very last minute!

Qantas' case was a cleverly calculated manoeuvre by management to thwart union's action

Comparing with D7's recent cuts is like ..... well, the proverbial apples and pears, but D7's approach still 'better' if it suits one's agenda

Certainly no brownie points earned in either case :)

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on A333- that's quite long on 3-3-3 abreast.

Yes, if you are over 175 cm tall and weigh over 90 kg, space will be very cramped. But it is ok for average asian sizes, even on those long 12 hour flights.

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Air travellers usually have short memories. So I don't think it is a problem. Price is more important to them.

I will beg to differ :)

There has to be a certain level of confidence in an airline that goes beyond the 'cheap' tagging :)

I'm not saying D7/AK has breached that fine line yet, but it could happen :)

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I will beg to differ :)

There has to be a certain level of confidence in an airline that goes beyond the 'cheap' tagging :)

I'm not saying D7/AK has breached that fine line yet, but it could happen :)

Of course, everything has its breaking point.

 

A lot of people understand that D7 is very much experimenting with things. Some may work, others may not. And D7 is not the only one. AK has also chopped many routes too. And for that matter, MH. People realise that it is better for an airline to cut losses than to get into serious problem that will impact ALL routes, i.e. it closes shop.

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BC tam: agreed, not difficult to remember bad customer service and money pinching

Flee: do u work for D7? U r like Their spokesman!

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