Big news today as Air Asia X has decided to cancel a few of their routes. And they’re big ones too.
Indian Routes:
- Kuala Lumpur <> Mumbai, CANCELLED from 1st February 2012
- Kuala Lumpur <> Delhi, CANCELLED from 23rd March 2012
European Routes:
- Kuala Lumpur <> Paris Orly, CANCELLED from 31st March 2012
- Kuala Lumpur – London Gatwick, CANCELLED from 1st April 2012
Air Asia are blaming these cancellations on various reason such as:
- Higher and increasing airport charges in India
- Indian Visa Restrictions
- The dreaded EU ETS (Emission Trading Scheme)
- Air Passenger Duty being hiked upwards in the United Kingdom
Air Asia will continue to serve parts of India through it’s mainline branch as opposed to it’s “X” Long-haul branch.
Some of Air Asia X’s pricing has been wild recently – at some points going over Malaysian Airlines own fares by a fair amount. Since companies like Air Asia start at a low price point and work from a Low Cost proposition, increasing fares and charges are one way to drive them out.
Sadly, it proves that Long Haul Asia to Europe “Low Cost Carrier” experiences just aren’t working (although it hasn’t taken the entire company with it – in the case of Oasis Hong Kong Airlines). It also shows the damaging effect of Air Passenger Duty from the United Kingdom – an increasing burden that will go up on the 2nd April 2012…