Malaysian long haul budget airline AirAsia X has decided to end its services to Europe and India, citing sluggish demand and rising cost of operations.
AirAsia X, a budget carrier renowned for doling out cheap flight tickets, has decided to cease its operations to London Gatwick and Paris in Europe and Delhi and Mumbai in India.
Azran Osman-Rani, CEO of AirAsia X said the move will assist the airline in concentrating on the carrier"s core markets.
"AirAsia X remains focused on maintaining its global leadership position in the low cost, long-haul segment. We intend to concentrate capacity in our core markets of Australasia, China, Taiwan, Japan, and Korea where we have built up stable, profitable routes within an infrastructure that supports low cost services," Azran Osman-Rani said in a statement posted on the company"s website.
"We intend to open up new routes within these markets, as well as add frequencies on existing routes. Announcements of our future expansion plans will be made soon," he continued.
AirAsia X will operate its final flight from Gatwick on March 31, while on the Paris-Kuala Lumpur route the last flight will operate on March 30. The final flight to Delhi will take off on 22 March and the final service to Mumbai will take place on 31 January. Also, the airline plans to trim down its daily services to Delhi to four in a week in the month of March.
Affected travellers will be offered alternative travel options at no additional cost.
Europe
AirAsia X said mounting taxes in Europe has made it highly difficult for the budget carrier to keep rolling out cheap flight tickets for its travellers. The Malaysian carrier also held responsible the weakening European economy.
Azran Osman-Rani said in the statement: "The 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, have placed cost pressures on operating long-haul low cost flights between Asia and Europe, compromising our ability to offer the low fares AirAsia X is known for."
India
Visa restrictions between India and Malaysia, increase in costs at Delhi and Mumbai airports and baggage handling charges are the reasons that have caused the budget carrier to discontinue
flights to India Destinations.
"As for Delhi and Mumbai, the continued visa restrictions for travel between India and Malaysia, and the increase in airport and handling charges have resulted in a structure not conducive to the low-cost model," Azran Osman-Rani said.
According to industry experts in India, the pulling out of low cost carrier can hit tourism as a huge segment of Indian tourists look to book cheap tickets for their holidays in Malaysia.
