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Alif A. F.

Malaysia’s Kota Kinabalu Airport poised for renewed growth as Sabah-China market booms

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But I don't see why they should cut back capacity because they are moving to a bigger terminal. They cut back a lot on Australian services because of oversupply (along with MH). im not sure what their rationale was for doing so but surely they can't blame being in a bigger terminal with more parking/apron space...

Australian capacity is operated by long haul operator, Airasia X. They report their operating statistics separately from the short haul Airasia Malaysia.

 

Airasia did not grow as much as before in 2014 and 2015 as they adjusted to operating from klia2. That was why they are changing strategy to grow from secondary hubs like BKI, JHB, LGK, PEN, KBR, etc. If BKI growth is also slowing down, it will make that strategy a bit more challenging.

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Of course it's more challenging nowadays

Back then the competition was fron the ever inept national carrier, and that was about it

Nowadays, there is also Malindo to contend with, and with said national carrier's sugar daddy lifeline under closer scrutiny, they seem keener too

 

On top of it all, I reckon consumers are nowadays more wary of the price fluctuations and tend to shop around a bit more for best deals instead

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Well, the national carrier has significantly cut its capacity - and that has allowed Malindo to get its foothold in the market. I am not sure if Airasia would have benefited that much from MH's consolidation as there will be some people who will never fly with Airasia because they are used to being pampered all the way. This was more or less proven on the Australian routes as Airasia X did not really benefit that much from MH's capacity reduction because the demand simply wasn't there in the first place.

 

Airasia published their Q1 2016 operating statistics yesterday and it would seem that they are on the way back on the high growth curve. However, this time, they seem to have gained more from efficiency than from massive capacity increases.

 

As the environment becomes more challenging, I think they have to really comb the floor for any cost savings (no matter how small) to optimise their business model. That is why even a 3X weekly route is not spared from the big picture. Afterall, little things do add up!

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