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KarelXWB
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AirAsia X ditches European expansions plans

Mon Jun 19, 2017 4:44 pm

After months of speculation AirAsia X has cancelled plans to restart European operations.

U.S. West Coast plans are off the table as well.

AirAsia X, Asia’s leading low cost long-haul airline, will not return to Europe nor will it fly to the U.S. West Coast soon, but will instead focus on Asia, its founder and CEO said Monday in a series of Tweets.

The announcement comes as a surprise, as top airline executives had strongly hinted for months they wanted to fly ultra long-haul routes — both to Europe and the United States. Western Europe probably would have come first, while expanding to the Continental U.S. was more of a long-term plan, executives had said.


Article
https://skift.com/2017/06/19/airasia-x- ... alifornia/
What we leave behind is not as important as how we've lived.
 
TheGeordielad
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Re: AirAsia X ditches European expansions plans

Mon Jun 19, 2017 5:37 pm

So does that mean they dropped plans for LGW&Temp B77Ws
 
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KarelXWB
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Re: AirAsia X ditches European expansions plans

Mon Jun 19, 2017 5:41 pm

TheGeordielad wrote:
So does that mean they dropped plans for LGW&Temp B77Ws


Correct, there will be no 777s on lease.
What we leave behind is not as important as how we've lived.
 
c933103
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Re: AirAsia X ditches European expansions plans

Mon Jun 19, 2017 5:42 pm

So, how about their plan to add fifth freedom route to Conntinental US? I originally thought that is about to be materialized?
 
NichCage
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Re: AirAsia X ditches European expansions plans

Mon Jun 19, 2017 5:44 pm

AirAsia X had Istanbul and Barcelona in reservations for a little bit before it was taken out.
 
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mercure1
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Re: AirAsia X ditches European expansions plans

Mon Jun 19, 2017 5:52 pm

Smart move.

As CEO of Scoot recently also stated, up to 8-hours flight time seems to be sweet spot for longhaul low-cost model.

With 50 percent of globes population within 7-hour flight time of KUL, there is so much potential to not bother with risky adventures to Europe or Americas for AAX.
 
mffoda
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Re: AirAsia X ditches European expansions plans

Mon Jun 19, 2017 6:30 pm

Doesn't look good for those 66 A330neo's order... :spin:
harder than woodpecker lips...
 
phxa340
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Re: AirAsia X ditches European expansions plans

Mon Jun 19, 2017 6:41 pm

KarelXWB wrote:
After months of speculation AirAsia X has cancelled plans to restart European operations.

U.S. West Coast plans are off the table as well.

AirAsia X, Asia’s leading low cost long-haul airline, will not return to Europe nor will it fly to the U.S. West Coast soon, but will instead focus on Asia, its founder and CEO said Monday in a series of Tweets.

The announcement comes as a surprise, as top airline executives had strongly hinted for months they wanted to fly ultra long-haul routes — both to Europe and the United States. Western Europe probably would have come first, while expanding to the Continental U.S. was more of a long-term plan, executives had said.


Article
https://skift.com/2017/06/19/airasia-x- ... alifornia/


So where exactly are they going to deploy all of their A330neo/ceo capacity? Seemingly they over ordered by 30ish even if they use quite a few as CEO replacements.
 
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Polot
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Re: AirAsia X ditches European expansions plans

Mon Jun 19, 2017 6:44 pm

phxa340 wrote:

So where exactly are they going to deploy all of their A330neo/ceo capacity? Seemingly they over ordered by 30ish even if they use quite a few as CEO replacements.

AirAsia X's A330neo delivery schedule (no more A330ceos on order) is stretched out over ~9 years starting from late next year (or very early 2019, not sure how much A330neo delays have effected them). On average AirAsia is only getting 7 or 8 a year, to be dispersed across all their AirAsiaX franchises.
 
Carfield
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Re: AirAsia X ditches European expansions plans

Mon Jun 19, 2017 7:10 pm

Now it makes sense on why the Air Asia X's new A330 NEO won't have the Premium flatbed products!
However I respect Fernandez's decision, as the fares between Asia and Europe are already low because of the ME3. Norwegian perhaps will sigh a relief for now.

But I still hope Air Asia X will have retain two rows of Premium Flatbed on its A330 Neos.

Carfield
 
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PatrickZ80
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Re: AirAsia X ditches European expansions plans

Mon Jun 19, 2017 7:15 pm

mffoda wrote:
Doesn't look good for those 66 A330neo's order... :spin:


Sure they'll find a place for them. Plenty of destinations in China, South Korea, Japan, the Middle East, Australia and New Zealand that can use service by Air Asia. Besides, they won't all be based in Kuala Lumpur. Some will be placed in Bangkok (Don Mueang) or other bases in Asia. Then they can serve the same destinations, only from different hubs.

Smart move of Air Asia by the way. With both Scoot, EuroWings and Norwegian offering low cost between Europe and Asia there wouldn't be much place for them. Besides, they were too focussed on London forgetting about the rest of Europe. Scoot now flies to Athens which is about the first city in Europe coming from Asia and very reachable from everywhere in Europe. People from all over Europe (including London) fly to Athens to catch the Scoot flights to Singapore. Other way around, Asians use Athens as their entry point to Europe and from there fly on to wherevery they want to be in Europe and all this without Scoot flying an inch too far. This is actually much more succesful than what Air Asia had in mind. I'd say Air Asia has admit defeat by Scoot.
 
TheGeordielad
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Re: AirAsia X ditches European expansions plans

Mon Jun 19, 2017 8:24 pm

mffoda wrote:
Doesn't look good for those 66 A330neo's order... :spin:

Not really.Its sort of good because they will be maximised in Asia and Oceania and will have be able to fill the cabins as they are going full economy and apparently A339NEO from KUL wouldn't been able to fly their without weight restrictions on the A339NEO.
Plus there's lots of demand within Asian routes therefore the reason for all economy as well as routes to Australia are mostly tourists which normally only go in economy and anyother person that what's business class goes with Malaysia airlines or Thai or anyother airline with business.
 
TC957
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Re: AirAsia X ditches European expansions plans

Mon Jun 19, 2017 9:15 pm

This news must come as a relief for MH and their LHR flights.
 
MaverickM11
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Re: AirAsia X ditches European expansions plans

Mon Jun 19, 2017 9:43 pm

Yep. Longhaul LCC still doesn't work.
E pur si muove -Galileo
 
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jnev3289
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Re: AirAsia X ditches European expansions plans

Mon Jun 19, 2017 9:59 pm

MaverickM11 wrote:
Yep. Longhaul LCC still doesn't work.

*Ultra Longhaul LCC
 
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flee
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Re: AirAsia X ditches European expansions plans

Tue Jun 20, 2017 12:59 am

Carfield wrote:
Now it makes sense on why the Air Asia X's new A330 NEO won't have the Premium flatbed products!
However I respect Fernandez's decision, as the fares between Asia and Europe are already low because of the ME3. Norwegian perhaps will sigh a relief for now.

But I still hope Air Asia X will have retain two rows of Premium Flatbed on its A330 Neos.

Carfield
Their fleet has reached a size whereby they can have different configurations for different markets. Although the premium flatbeds sell out quickly, their yields may not be as good as that of 60+ more seats! With the Airbus Airspace cabin in the A330 Neo, the new seats may not be as uncomfortable as it sounds on flights of 7-8 hours.

It should be noted that D7 was only looking to return to London as this seems to be the only market where there is sufficient demand from Malaysia. I would have thought that a destination in continental Europe is more viable due to the good connections to the rest of Europe. With BREXIT uncertainties, Europe is certainly still a high risk venture for D7.

Equipment wise, it does not make sense to use the A339 Neo to London as the A350 is probably more up to the task. However, there is the other question of economics - the A350 costs a lot more and it may also be marginal as far as the bean counters are concerned. So it is a high risk venture, whichever way we look at it....
 
Newbiepilot
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Re: AirAsia X ditches European expansions plans

Tue Jun 20, 2017 1:17 am

Air Asia X seems to switch strategies and add and cancel routes more frequently than any other airline that I can think of.

http://www.thestar.com.my/business/busi ... -expenses/

Revenue per available seat kilometer (RASK) was down 6% year-on-year from 15.11 sen to 14.20 sen during the quarter under review.

AAX said the marginal drop was due to the expected increase in capacity on core existing routes as per its strategy to grow market share and therefore pressuring yields.

In a press statement, it said Malaysia AirAsia X (MAAX) registered a healthy load factor of 84%, up 2 percentage points (ppts).
 
PayaLebar
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Re: AirAsia X ditches European expansions plans

Tue Jun 20, 2017 5:00 am

TC957 wrote:
This news must come as a relief for MH and their LHR flights.


MH Business Class Promotional Fares are more attractive that those offered by Air Asia X's Premium Flatbed.
 
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Spiderguy252
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Re: AirAsia X ditches European expansions plans

Tue Jun 20, 2017 5:40 am

PatrickZ80 wrote:
Scoot now flies to Athens which is about the first city in Europe coming from Asia and very reachable from everywhere in Europe. People from all over Europe (including London) fly to Athens to catch the Scoot flights to Singapore. Other way around, Asians use Athens as their entry point to Europe and from there fly on to wherevery they want to be in Europe and all this without Scoot flying an inch too far. This is actually much more succesful than what Air Asia had in mind. I'd say Air Asia has admit defeat by Scoot.


Doesn't sound any more than 5-7% pax on the plane who would do that to be honest.
Vahroone
 
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KarelXWB
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Re: AirAsia X ditches European expansions plans

Tue Jun 20, 2017 10:00 am

mffoda wrote:
Doesn't look good for those 66 A330neo's order... :spin:


Only a handful A330neo aircraft were intended for European operations, the bulk will fly within Asia.
What we leave behind is not as important as how we've lived.
 
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huaiwei
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Re: AirAsia X ditches European expansions plans

Tue Jun 20, 2017 5:27 pm

Interesting that this news emerged just as Scoot commenced its Athens flights.

They will still be competing on Osaka-Honolulu though, if both airlines confirm the route.
It's huaiwei...not huawei. I have nothing to do with the PRC! :)
 
MaverickM11
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Re: AirAsia X ditches European expansions plans

Wed Jun 21, 2017 1:34 am

jnev3289 wrote:
MaverickM11 wrote:
Yep. Longhaul LCC still doesn't work.

*Ultra Longhaul LCC

Nope, longhaul, but of course ultra longhaul is out of the question.
E pur si muove -Galileo
 
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jnev3289
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Re: AirAsia X ditches European expansions plans

Wed Jun 21, 2017 3:33 am

MaverickM11 wrote:
jnev3289 wrote:
MaverickM11 wrote:
Yep. Longhaul LCC still doesn't work.

*Ultra Longhaul LCC

Nope, longhaul, but of course ultra longhaul is out of the question.

Ahhhhh that must be why the majors are introducing Basic Economy on Int'l flights... and why WOW has been so successful... and why IAG introduced Level... Should I go on?
 
c933103
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Re: AirAsia X ditches European expansions plans

Wed Jun 21, 2017 3:51 am

http://www.hindustantimes.com/business- ... Q01YO.html
“We looked at every aircraft, every configuration, it’s coming, but for the moment they’re all killing each other so we’ll wait,” he told Reuters at the Paris Airshow.

So (one of?) the reason they are ditching the European/America expansion plan for now, is to wait to see which aircraft would be better for them?
 
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juliuswong
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Re: AirAsia X ditches European expansions plans

Wed Jun 21, 2017 4:02 am

huaiwei wrote:
Interesting that this news emerged just as Scoot commenced its Athens flights.

They will still be competing on Osaka-Honolulu though, if both airlines confirm the route.

AirAsia X is definitely flying KIX-HNL, heavily promoting it now all over Malaysia. Not sure about in Japan. We registered strong booking since booking was launched.
 
Aither
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Re: AirAsia X ditches European expansions plans

Wed Jun 21, 2017 5:39 am

MaverickM11 wrote:
Yep. Longhaul LCC still doesn't work.


It works. That's the 200 back seats of Emirates A380s... no long haul LCC can compete against that. They better try fighting against the Japanese carriers.
Never trust the obvious
 
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flee
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Re: AirAsia X ditches European expansions plans

Wed Jun 21, 2017 6:30 am

According to D7, the KUL-KUX-HNL are more or less sold out for the first three months and they are looking into the possibility of adding frequencies.

It would be a good move for them to focus on strengthening their Asian network as the ME3 are not as strong there. Fortify your home turf before taking forays into faraway places!
 
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flee
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Re: AirAsia X ditches European expansions plans

Wed Jun 21, 2017 6:31 am

PatrickZ80 wrote:
This is actually much more succesful than what Air Asia had in mind. I'd say Air Asia has admit defeat by Scoot.

Scoot is actually taking over the Singapore Airlines route to Athens - so it is delivered to them on a plate!
 
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juliuswong
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Re: AirAsia X ditches European expansions plans

Wed Jun 21, 2017 7:00 am

[twoid][/twoid]
flee wrote:
PatrickZ80 wrote:
This is actually much more succesful than what Air Asia had in mind. I'd say Air Asia has admit defeat by Scoot.

Scoot is actually taking over the Singapore Airlines route to Athens - so it is delivered to them on a plate!

Expect more SQ's leisure heavy route, Barcelona, Orly or other similar sister cities to be launched by Scoot soon. They are planning to launch seven new routes in next 12 months, six regional and one long haul. http://www.straitstimes.com/singapore/s ... -to-athens
 
c933103
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Re: AirAsia X ditches European expansions plans

Wed Jun 21, 2017 7:14 am

flee wrote:
According to D7, the KUL-KUX-HNL are more or less sold out for the first three months and they are looking into the possibility of adding frequencies.

It would be a good move for them to focus on strengthening their Asian network as the ME3 are not as strong there. Fortify your home turf before taking forays into faraway places!

But on the other hand - what's happening to AirAsia Japan? I thoought it's supposed to launch months ago, and they would also provide feed to AirAsia X's fifth freedom routes, but it seems like they are still not ready?
 
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ernestxwb
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Re: AirAsia X ditches European expansions plans

Wed Jun 21, 2017 10:50 am

jnev3289 wrote:
MaverickM11 wrote:
jnev3289 wrote:
*Ultra Longhaul LCC

Nope, longhaul, but of course ultra longhaul is out of the question.

Ahhhhh that must be why the majors are introducing Basic Economy on Int'l flights... and why WOW has been so successful... and why IAG introduced Level... Should I go on?


Please go on. How does the introduction of Level have relevance to the successfulness of 'Ultra longhaul' LCC service? The longest route WOW air operates is KEF to LAX which is only 9 hours.. KUL to London is 13 hours + Norwegian is the only comparable airline and they just posted a $173.9 million loss...
 
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juliuswong
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Re: AirAsia X ditches European expansions plans

Wed Jun 21, 2017 11:07 am

c933103 wrote:
flee wrote:
According to D7, the KUL-KUX-HNL are more or less sold out for the first three months and they are looking into the possibility of adding frequencies.

It would be a good move for them to focus on strengthening their Asian network as the ME3 are not as strong there. Fortify your home turf before taking forays into faraway places!

But on the other hand - what's happening to AirAsia Japan? I thoought it's supposed to launch months ago, and they would also provide feed to AirAsia X's fifth freedom routes, but it seems like they are still not ready?

AirAsia Japan Mark II is heavily delayed since its initial launching target was April 2016 and Japan Government is not keen in giving the approval anytime soon. Here is a good read:
https://centreforaviation.com/insights/ ... its-351498
 
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jnev3289
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Re: AirAsia X ditches European expansions plans

Wed Jun 21, 2017 12:49 pm

ernestxwb wrote:
jnev3289 wrote:
MaverickM11 wrote:
Nope, longhaul, but of course ultra longhaul is out of the question.

Ahhhhh that must be why the majors are introducing Basic Economy on Int'l flights... and why WOW has been so successful... and why IAG introduced Level... Should I go on?


Please go on. How does the introduction of Level have relevance to the successfulness of 'Ultra longhaul' LCC service? The longest route WOW air operates is KEF to LAX which is only 9 hours.. KUL to London is 13 hours + Norwegian is the only comparable airline and they just posted a $173.9 million loss...

That's new to me. A 9 hour "short haul" flight. How does Level have relevance to the success of LHLC? Well if it was a bad idea then why would IAG find it prudent to go through with starting it?
 
Newbiepilot
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Re: AirAsia X ditches European expansions plans

Wed Jun 21, 2017 1:21 pm

flee wrote:
According to D7, the KUL-KUX-HNL are more or less sold out for the first three months and they are looking into the possibility of adding frequencies.

It would be a good move for them to focus on strengthening their Asian network as the ME3 are not as strong there. Fortify your home turf before taking forays into faraway places!



$99 one way fares will do that. Air Asia X is seeing RASM decline according to the article I posted earlier. Filling up planes with more than 80% load factors isn't hard when the airline is willing to sacrifice revenue.
 
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ernestxwb
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Re: AirAsia X ditches European expansions plans

Wed Jun 21, 2017 1:29 pm

jnev3289 wrote:
ernestxwb wrote:
jnev3289 wrote:
Ahhhhh that must be why the majors are introducing Basic Economy on Int'l flights... and why WOW has been so successful... and why IAG introduced Level... Should I go on?


Please go on. How does the introduction of Level have relevance to the successfulness of 'Ultra longhaul' LCC service? The longest route WOW air operates is KEF to LAX which is only 9 hours.. KUL to London is 13 hours + Norwegian is the only comparable airline and they just posted a $173.9 million loss...

That's new to me. A 9 hour "short haul" flight. How does Level have relevance to the success of LHLC? Well if it was a bad idea then why would IAG find it prudent to go through with starting it?

Not long haul, it's medium haul and it's what Airasia has been calling their flights that are under 10 hours. Launching Level doesn't mean the model has succeeded... You have yet to list a single example of a long haul LCC. Airasia already operates your so called 'longhaul' 8-9 hour flights.
 
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jnev3289
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Re: AirAsia X ditches European expansions plans

Wed Jun 21, 2017 1:32 pm

ernestxwb wrote:
jnev3289 wrote:
ernestxwb wrote:

Please go on. How does the introduction of Level have relevance to the successfulness of 'Ultra longhaul' LCC service? The longest route WOW air operates is KEF to LAX which is only 9 hours.. KUL to London is 13 hours + Norwegian is the only comparable airline and they just posted a $173.9 million loss...

That's new to me. A 9 hour "short haul" flight. How does Level have relevance to the success of LHLC? Well if it was a bad idea then why would IAG find it prudent to go through with starting it?

Not long haul, it's medium haul and it's what Airasia has been calling their flights that are under 10 hours. Launching Level doesn't mean the model has succeeded... You have yet to list a single example of a long haul LCC. Airasia already operates your so called 'longhaul' 8-9 hour flights.

The model is in it's infancy still, I hope you realize that. Launching Level means that informed airline executives see the merit in the model
 
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juliuswong
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Re: AirAsia X ditches European expansions plans

Wed Jun 21, 2017 1:39 pm

ernestxwb wrote:
jnev3289 wrote:
ernestxwb wrote:

Please go on. How does the introduction of Level have relevance to the successfulness of 'Ultra longhaul' LCC service? The longest route WOW air operates is KEF to LAX which is only 9 hours.. KUL to London is 13 hours + Norwegian is the only comparable airline and they just posted a $173.9 million loss...

That's new to me. A 9 hour "short haul" flight. How does Level have relevance to the success of LHLC? Well if it was a bad idea then why would IAG find it prudent to go through with starting it?

Not long haul, it's medium haul and it's what Airasia has been calling their flights that are under 10 hours. Launching Level doesn't mean the model has succeeded... You have yet to list a single example of a long haul LCC. Airasia already operates your so called 'longhaul' 8-9 hour flights.

You do know that AirAsia X is currently doing KUL-OOL-AKL in 12 hr 10mins right? Amd it is packed to the brim.
 
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flee
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Re: AirAsia X ditches European expansions plans

Wed Jun 21, 2017 2:39 pm

Newbiepilot wrote:
flee wrote:
According to D7, the KUL-KUX-HNL are more or less sold out for the first three months and they are looking into the possibility of adding frequencies.
It would be a good move for them to focus on strengthening their Asian network as the ME3 are not as strong there. Fortify your home turf before taking forays into faraway places!

$99 one way fares will do that. Air Asia X is seeing RASM decline according to the article I posted earlier. Filling up planes with more than 80% load factors isn't hard when the airline is willing to sacrifice revenue.

Those launch fares are very limited per flight - those who managed to snag those tickets will end up paying around MYR 1,400/USD 325 (one way) after luggage, meals, seat selection and all the other fees are included.

If you tried to book these days, the lowest base fare is now MYR 799 and not the MYR 499 at launch. Fares ex-KIX are also higher, based on the competition in that market.
 
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ernestxwb
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Re: AirAsia X ditches European expansions plans

Wed Jun 21, 2017 8:09 pm

juliuswong wrote:
ernestxwb wrote:
jnev3289 wrote:
That's new to me. A 9 hour "short haul" flight. How does Level have relevance to the success of LHLC? Well if it was a bad idea then why would IAG find it prudent to go through with starting it?

Not long haul, it's medium haul and it's what Airasia has been calling their flights that are under 10 hours. Launching Level doesn't mean the model has succeeded... You have yet to list a single example of a long haul LCC. Airasia already operates your so called 'longhaul' 8-9 hour flights.

You do know that AirAsia X is currently doing KUL-OOL-AKL in 12 hr 10mins right? Amd it is packed to the brim.[/quotei
I have flown that route myself twice, I hope you are aware they carry a lot of fifth freedom traffic?
 
Newbiepilot
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Re: AirAsia X ditches European expansions plans

Wed Jun 21, 2017 8:22 pm

flee wrote:
Newbiepilot wrote:
flee wrote:
According to D7, the KUL-KUX-HNL are more or less sold out for the first three months and they are looking into the possibility of adding frequencies.
It would be a good move for them to focus on strengthening their Asian network as the ME3 are not as strong there. Fortify your home turf before taking forays into faraway places!

$99 one way fares will do that. Air Asia X is seeing RASM decline according to the article I posted earlier. Filling up planes with more than 80% load factors isn't hard when the airline is willing to sacrifice revenue.

Those launch fares are very limited per flight - those who managed to snag those tickets will end up paying around MYR 1,400/USD 325 (one way) after luggage, meals, seat selection and all the other fees are included.

If you tried to book these days, the lowest base fare is now MYR 799 and not the MYR 499 at launch. Fares ex-KIX are also higher, based on the competition in that market.


Air Asia X is selling tickets for $400-500 rountrip compared to $850-900 on Hawaiian and Delta out of KIX. That is a big fare difference even before the ancillary fees on Air Asia X.
 
MaverickM11
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Re: AirAsia X ditches European expansions plans

Wed Jun 21, 2017 8:28 pm

Aither wrote:
MaverickM11 wrote:
Yep. Longhaul LCC still doesn't work.


It works. That's the 200 back seats of Emirates A380s... no long haul LCC can compete against that. They better try fighting against the Japanese carriers.

Well yes, that's my point.

jnev3289 wrote:
MaverickM11 wrote:
jnev3289 wrote:
*Ultra Longhaul LCC

Nope, longhaul, but of course ultra longhaul is out of the question.

Ahhhhh that must be why the majors are introducing Basic Economy on Int'l flights... and why WOW has been so successful... and why IAG introduced Level... Should I go on?

Basic economy does not an LCC make. WOW's average stage has to be around 4-5 hours, and Level has *just* started. When it's spinning money (broken out separately from IAG siblings) then we can talk.

juliuswong wrote:
You do know that AirAsia X is currently doing KUL-OOL-AKL in 12 hr 10mins right? Amd it is packed to the brim.

Packed to the brim is not the problem--making money is. And just about every other long haul route D7 has launched has been binned.
E pur si muove -Galileo
 
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ernestxwb
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Re: AirAsia X ditches European expansions plans

Wed Jun 21, 2017 9:33 pm

MaverickM11 wrote:
Aither wrote:
MaverickM11 wrote:
Yep. Longhaul LCC still doesn't work.


It works. That's the 200 back seats of Emirates A380s... no long haul LCC can compete against that. They better try fighting against the Japanese carriers.

Well yes, that's my point.

jnev3289 wrote:
MaverickM11 wrote:
Nope, longhaul, but of course ultra longhaul is out of the question.

Ahhhhh that must be why the majors are introducing Basic Economy on Int'l flights... and why WOW has been so successful... and why IAG introduced Level... Should I go on?

Basic economy does not an LCC make. WOW's average stage has to be around 4-5 hours, and Level has *just* started. When it's spinning money (broken out separately from IAG siblings) then we can talk.

juliuswong wrote:
You do know that AirAsia X is currently doing KUL-OOL-AKL in 12 hr 10mins right? Amd it is packed to the brim.

Packed to the brim is not the problem--making money is. And just about every other long haul route D7 has launched has been binned.


Tehran and Mauritius were successful. Mauritius was only binned because the Mauritian local lobby didn't want them anymore.
 
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ernestxwb
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Re: AirAsia X ditches European expansions plans

Wed Jun 21, 2017 9:38 pm

jnev3289 wrote:
ernestxwb wrote:
jnev3289 wrote:
That's new to me. A 9 hour "short haul" flight. How does Level have relevance to the success of LHLC? Well if it was a bad idea then why would IAG find it prudent to go through with starting it?

Not long haul, it's medium haul and it's what Airasia has been calling their flights that are under 10 hours. Launching Level doesn't mean the model has succeeded... You have yet to list a single example of a long haul LCC. Airasia already operates your so called 'longhaul' 8-9 hour flights.

The model is in it's infancy still, I hope you realize that. Launching Level means that informed airline executives see the merit in the model

Launching it means they see potential in the model, it doesn't mean it's successful. Looking at Norwegians (the only big player that flies 11+ hour routes) Q1 results and previous results itsuggests that its not successful.
 
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flee
Posts: 243
Joined: Mon Oct 12, 2009 8:14 am

Re: AirAsia X ditches European expansions plans

Wed Jun 21, 2017 11:54 pm

Newbiepilot wrote:
flee wrote:
Newbiepilot wrote:
$99 one way fares will do that. Air Asia X is seeing RASM decline according to the article I posted earlier. Filling up planes with more than 80% load factors isn't hard when the airline is willing to sacrifice revenue.

Those launch fares are very limited per flight - those who managed to snag those tickets will end up paying around MYR 1,400/USD 325 (one way) after luggage, meals, seat selection and all the other fees are included.

If you tried to book these days, the lowest base fare is now MYR 799 and not the MYR 499 at launch. Fares ex-KIX are also higher, based on the competition in that market.

Air Asia X is selling tickets for $400-500 rountrip compared to $850-900 on Hawaiian and Delta out of KIX. That is a big fare difference even before the ancillary fees on Air Asia X.

D7's financial statements show that it makes healthy operating profits - it is usually paper losses on FOREX translation that drag net profits down. However, in 2Q 2017, the MYR is recovered and you can see net profits improve. With oil prices staying low, you can expect full year results to be pretty good. They have also taken steps to reduce gearing - so the FOREX impact of USD loans is also lowered.
 
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juliuswong
Posts: 188
Joined: Wed Dec 14, 2016 3:22 am

Re: AirAsia X ditches European expansions plans

Thu Jun 22, 2017 12:45 am

MaverickM11 wrote:
Aither wrote:
MaverickM11 wrote:
Yep. Longhaul LCC still doesn't work.


juliuswong wrote:
You do know that AirAsia X is currently doing KUL-OOL-AKL in 12 hr 10mins right? Amd it is packed to the brim.

Packed to the brim is not the problem--making money is. And just about every other long haul route D7 has launched has been binned.

I think you need to read their quarterly and annual report (http://www.airasiax.com/). They having been making money after a loss during last financial year, and the loss is mainly paper loss due to forex as mentioned by flee. Just which destinations you've mentioned that "every other long haul they launched have been binned"? Here is a list of route they terminated thus far and their reasons in doing so:
- Abu Dhabi- Suspended due to ME3 and wrong aircraft was in place
- Christchurch- Earthquake diminished the demand greatly and high oil price back then, replaced with Auckland
- Adelaide- Lack of demand and frequency
- London Gatwick- Suspended due to high oil price and not having right aircraft
- Mauritius- Ousted due to local lobbying
- Paris- Suspended due to high oil price and not having right aircraft
- Tianjin- Precursor to Beijing, dropped as they shifted to Beijing

From the list, at the same time they launched many new routes and adding frequency to current routes, so please explain what do you mean by every other route being dropped. From the list, you can argue for LGW, and ORY due being ULHCC or not having the right aircraft but the rest of terminated route are beyond their control.
 
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juliuswong
Posts: 188
Joined: Wed Dec 14, 2016 3:22 am

Re: AirAsia X ditches European expansions plans

Thu Jun 22, 2017 12:54 am

ernestxwb wrote:
juliuswong wrote:
ernestxwb wrote:
Not long haul, it's medium haul and it's what Airasia has been calling their flights that are under 10 hours. Launching Level doesn't mean the model has succeeded... You have yet to list a single example of a long haul LCC. Airasia already operates your so called 'longhaul' 8-9 hour flights.

You do know that AirAsia X is currently doing KUL-OOL-AKL in 12 hr 10mins right? Amd it is packed to the brim.[/quotei
I have flown that route myself twice, I hope you are aware they carry a lot of fifth freedom traffic?

So what is your point? Previously you have mentioned long haul doesn't work and now you are stating lots of fifth freedom traffic for a route that is more than 10 hours. Surely all these airlines are not dumping money into the pool if all these mid or long haul, with or without fifth freedom, doesn't workout? And AirAsia X has been in the market for a decade, a testament that long haul LCC does work, provided major factors are on your side. If they don't, tweak your business model to make it work.
 
masA380
Posts: 4
Joined: Thu Jun 03, 2004 12:54 pm

Re: AirAsia X ditches European expansions plans

Thu Jun 22, 2017 2:05 am

So many negative views on D7. Q1 results are bad some say. What about SQ and CX? On a side note, I wonder how Scoot does financially.
 
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juliuswong
Posts: 188
Joined: Wed Dec 14, 2016 3:22 am

Re: AirAsia X ditches European expansions plans

Thu Jun 22, 2017 4:31 am

masA380 wrote:
So many negative views on D7. Q1 results are bad some say. What about SQ and CX? On a side note, I wonder how Scoot does financially.

I was also skeptical when AirAsia X first took off to OOL back in 2007. Ten years on, they are just getting better and better. I must admit I was wrong initially, but the Allstars have proven many pundits and naysayers wrong. Even premium carriers like Singapore Airlines, Korean Air, and Qantas set up separate subsidiaries to get into the crowd. If the market is that bad as illustrated by some here, these premium carriers would not be that stupid to throw away their money. Q1 results is mostly bad for most airlines, be it FSC and LCC. Some individuals need to see business in long term perspective. Scoot finally registered register full first year profit after five years service commencement and is now merging with Tigerair to take on Jetstar Group and AirAsia Group. http://www.straitstimes.com/singapore/t ... s-says-sia
 
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huaiwei
Posts: 278
Joined: Fri Oct 03, 2008 4:36 am

Re: AirAsia X ditches European expansions plans

Thu Jun 22, 2017 4:57 am

juliuswong wrote:
huaiwei wrote:
Interesting that this news emerged just as Scoot commenced its Athens flights.

They will still be competing on Osaka-Honolulu though, if both airlines confirm the route.

AirAsia X is definitely flying KIX-HNL, heavily promoting it now all over Malaysia. Not sure about in Japan. We registered strong booking since booking was launched.

Excellent! It is a wonder why both MH and SQ are not bothering with HNL even if it is mainly leisure.
It's huaiwei...not huawei. I have nothing to do with the PRC! :)
 
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juliuswong
Posts: 188
Joined: Wed Dec 14, 2016 3:22 am

Re: AirAsia X ditches European expansions plans

Thu Jun 22, 2017 5:28 am

huaiwei wrote:
juliuswong wrote:
huaiwei wrote:
Interesting that this news emerged just as Scoot commenced its Athens flights.

They will still be competing on Osaka-Honolulu though, if both airlines confirm the route.

AirAsia X is definitely flying KIX-HNL, heavily promoting it now all over Malaysia. Not sure about in Japan. We registered strong booking since booking was launched.

Excellent! It is a wonder why both MH and SQ are not bothering with HNL even if it is mainly leisure.

Historically, both airlines used to fly there during the 80s and 90s era when B747 Classics/DC-10 did not have the range to do non-stop flight. Both airlines dropped HNL with 744 /777 introduction. Scoot is rumored to be flying to HHL via KIX, same as AirAsia X. http://www.straitstimes.com/singapore/s ... -to-athens It will be interesting if they do so.

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