AirAsia X reducing Australia flights

[moojar]

For the airline geeks and / or bargain hunters - two groups I am a member of.

There has been reports this week AirAsia X is losing a lot of money, even staggering their staff salary and allowances payments which suggests the bank balance is a bit low. And where they are losing most money is on their Australia routes.

I expect their troubles are partly due to competition from Scoot - better product, better destination (Singapore Vs. KL) - , and partly due to full-service airlines reducing fares to try and force AirAsia X out. But whatever the cause, Air Asia X will reduce flights to Australia and fares will no doubt rise and planes get more crowded.

This article is the first I have seen that reports where the cuts will be made: http://centreforaviation.com/analysis/airasia-x-joins-airasia-in-slowing-expansion-in-challenging-malaysia-market-cuts-australia-capacity-197766

The interesting bit is this:

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AirAsia X to cut capacity to Australia by 15% to 20% in 2015

Yields have particularly been weak on its Australian routes as overcapacity in the Malaysia-Australia and broader Southeast Asia-Australia market has led to aggressive pricing. AirAsia X plans to cut ASKs to Australia by 15% to 20% in 2015 with nearly all the reductions only taking place during the second and third quarters when demand is relatively weak.

For example Kuala Lumpur-Sydney will be cut from two to one daily flight for most of 2Q2015 and 3Q2015. AirAsia X is also expected to cut a smaller number of frequencies to its other four Australian destinations. The carrier is confident the reductions will better align capacity with demand, enabling higher yields and hence an improved financial performance.

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I am hoping Thai AirAsia X and / or Nok Scoot start flying to Oz in 2015, as they both have several new aircraft coming online next year. But the above article makes that seem less likely eh?

[kingalfred]

Airasia has cut many of it routes out of Bangkok to countries not bordering or close to Thailand .I used to fly Sri Lanka but that stopped a year or so ago. It's concentrating on shorter flight/distances 1-2 hours,and then it can fly this Bkk route 4 or 5 times a day.Furthermore these flights are far more expensive than a couple years ago.When there is no low season promotion the prices are no longer "budget",and you often pay this"premium" price for a lousy service.

[David48]

Mate ... thanks for the heads up ...