Longhaul low-cost carrier, AirAsia X will
suspend services to India
and Europe by the end of March in response to
the combined impact from a weak global economy, rising jet fuel prices and
soaring taxes, and instead, focus on developing its core markets.
The network realignment will see the suspension
of AirAsia X’s four-weekly services to Mumbai after January 31, four-weekly
services to Paris after March 30 and six-weekly
services to London
after March 31. The carrier's New
Delhi’s daily links will be reduced to four-weekly in
March, and will be suspended after March 22.
Despite enjoying healthy load factors of over 80
per cent on the carrier’s London and Paris services in 2011, CEO Azran
Osman-Rani explained that the changes were necessitated by “continued high jet
fuel prices and the weakening demand for air travel from Europe, brought about
by the current economic situation together with exorbitant government taxes,
(which) have placed cost pressures on operating long-haul low cost flights
between Asia and Europe”.
He added: “The implementation of the Emissions
Trading Scheme and the escalating Air Passenger Duty taxes in the UK, which will rise yet again in April, has
forced our decision to withdraw our services to Europe."
While flights to New Delhi
and Mumbai were amended due to “continued visa restrictions for travel between India and Malaysia, and the increase in
airport and handling charges (a 280 per cent increase in airport fees will take
effect in April)”, Azran said services could be reinstated “once these
structural issues can be resolved”.
Passengers booked on these flights will be
offered a full refund or an alternative travel option on another AirAsia X
route or another carrier where available.
Meanwhile, the carrier would continue to hold
firm in its core markets of Australasia, China, Taiwan,
Japan and South Korea,
said Azran, who added that plans to launch new routes within these markets and
additional frequencies were on the horizon.
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