Air Asia losses increase, reducing Australia capacity

[markis10]

Air Asia have announced an increased loss for Q3 and have reportedly said they will significantly reduce Australian flights.

Australian flights resulted in a AUD10M loss for the quarter.

 

[kpc]

Air Asia have announced an increased loss for Q3 and have reportedly said they will significantly reduce Australian flights.

Australian flights resulted in a AUD10M loss for the quarter.

Hope the Syd flights are not affected. Have a (cheapish) family trip, Syd-Kul rtn in July next year booked!

 

[travelislife]

Has any airline actually been able to make LCC long haul work an make money, I am struggling to think of one. The economics seem to work on short haul but not on anything over about 4 hours. The problem I reckon is the ancillary services and up selling probably doesn't increase in line with the length of flight on a linear scale.

 

[markis10]

Hmm, having problems paying staff:

In a circular seen by The Edge Financial Daily, AirAsia X staff were informed that payment of their wages and allowances would be on a staggered basis for the month of October. Describing the unprecedented payment issue as a "temporary setback", the management of AirAsia X blamed the payment delay to the "late arrival of incoming funds".


A source told The Edge Financial Daily that apart from the staff payment issue, AirAsia X is also having difficulty seeking aircraft loans from financial institutions due to its current financial position. "Operating costs of AirAsia X are high and yet, it hasn't done anything to review its operations and look for ways to cut its costs. It is still taking delivery of new aircraft and maintaining its route network," said the source.


- See more at: AirAsia X facing trouble paying staff salaries, News, News, AsiaOne Business News

 

[anat0l]

Has any airline actually been able to make LCC long haul work an make money, I am struggling to think of one. The economics seem to work on short haul but not on anything over about 4 hours. The problem I reckon is the ancillary services and up selling probably doesn't increase in line with the length of flight on a linear scale.

Jetstar?

Then again, we don't know the situation on a sector by sector basis. Plus, if I'm not mistaken, Jetstar group recorded a loss last FY anyway.

EDIT: I guess we should add, on the premise that nothing really adverse is coming out plus a promising order book in hand, Scoot is looking rather successful.

 

[Aussie_flyer]

Thats very worrying if they cant pay staff then they might be missing payments elsewhere. Interesting since both thai and Indonesia air asia x are just getting started but are run as separate entities afaik.

 

[Clivem]

Won't forward booking drop like a brick once word of this hits the main stream .....at least until the keel evens .....or sinks?

 

[markis10]

EDIT: I guess we should add, on the premise that nothing really adverse is coming out plus a promising order book in hand, Scoot is looking rather successful.

I am not sure Scoots 65M loss is a positive.

 

[anat0l]

I am not sure Scoots 65M loss is a positive.

Whoops, I must have been in the WC when that slipped out.

Still - they've got a huge bankroll behind them. Suppose their participation in the same market(s) has not been any comfort for AirAsia X.

 

[dajop]

Wonder if MH's woes this year are also having an impact on Air Asia X? (As MH have been heavily discounting to sub-LCC levels).

 

[clifford]

The problem with D7 is, IMO, its Y class presentation. The seats are woeful for an 8 hour flight and everything else is on the cheap. But AK is making fabulous profits, so not paying D7 staff properly is just one of those evil things that Malaysians can get away with (let's not mention Tim Clark).

Certainly JQ murders D7 (from my own experience) and Scoot is better too (not that I would ever fly them again).

 

[MH_fan]

Looks like they've reduced their KUL-SYD schedule back down to a daily service for next year already.

 

[kpc]

Looks like they've reduced their KUL-SYD schedule back down to a daily service for next year already.

Great...our day flight from Kul to Syd is no more...looks like we will be shifted to an overnight flight!!! Yet to formally receive any notification from Air Asia:evil:

 

[MH_fan]

Great...our day flight from Kul to Syd is no more...looks like we will be shifted to an overnight flight!!! Yet to formally receive any notification from Air Asia:evil:

Yuk. Hopefully, you're not in Y. Narrow seats, minimal recline. Not conducive for a good night's sleep.

 

[kpc]

Yuk. Hopefully, you're not in Y. Narrow seats, minimal recline. Not conducive for a good night's sleep.

What do you think??:evil::evil: We are a party of 5....I paid $515 x5 for Syd-Kul-Syd in Y (so not too painful for bank account), which was JUST doable on day time flights both ways...now coming back will be an overnighter........:evil::evil::evil:

 

[kpc]

To rub salt into the wound,,,even though our day flight from Kul to Syd is now cancelled, it is not reflected in our bookings yet so we can't even change the flights as yet:evil:. The call centre said I had to wait for email confirmation that our flight is cancelled before we can change...and that email notification may not even come till next year sometime as the flight is not till July!!:evil::evil::evil:

 

[Clivem]

:evil::evil: Punters who book LCC (for whatever reason) but and then whinge when things go pear shape about the resulting service / access etc. :evil::evil:

 

[Aussie_flyer]

:evil::evil: Punters who book LCC (for whatever reason) but and then whinge when things go pear shape about the resulting service / access etc. :evil::evil:

Not fair . Anyone would be annoyed their flight is canceled. LCC or not.

 

[kpc]

Clivem....Thank you for your ever so helpful comments ... I'm sure you have never whinged here:thumbdown::thumbdown:

 

[Cruiser Elite]

:evil::evil: Punters who book LCC (for whatever reason) but and then whinge when things go pear shape about the resulting service / access etc. :evil::evil:

So are you suggesting only those who book QF J have the right to whinge when they get booted / shafted down into Y whereas the battlers who can never afford prem cabins have no right whatsoever? Yeah I can see the equity there.