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AirAsia-X mulling route changes?

by on February 27, 2015
 

After a rocky results quarter where oil prices have plunged and the value of the ringgit has dropped, AirAsia-X is apparently re-evaluating some of their routes after the large expansion of capacity in 2014. Word is that the airline intends to refocus attention on those which are more profitable, as well as introducing some exciting new options, particularly for their AirAsia-X subsidiary.

Citing timing as a large contributor to the financial issues, Group chief executive officer Kamarudin Meranun said on Wednesday that the company will cut some routes so they can handle that growth in capacity.

Mr Kamarudin also indicated that there are plans to fly to “exotic” destinations including Hawaii and AirAsia-X are currently working toward a process for the necessary approvals, while dropping unprofitable routes to meet its forecast of returning to profit this year. Flights to Adelaide and Nagoya will be removed and Sydney trips will be reduced as the airline slows its expansion to attain profit in 2015.

With a current fleet of twenty-five A330 planes and a scheduled delivery of another six aircraft this year, followed by four in 2016, AirAsiaX acting CEO Benyamin Ismail says the carrier is exploring options to sell some planes and delivery slots, or defer deliveries.

Watch this space!  Some of the first offerings!

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