Air Asia drops SYD-KUL

[LionKing]

The plot thickens
And will Air Asia take delivery of the A220?

View attachment 521439

I hope Malaysia Airlines can absorb most of Air Asia's medium haul and regional operations, such as launching HND.
As Qantas PT, I am disappointed if I need to fly from Malaysia to Japan there's no HND option even I am flying between OneWorld hubs!

 

[moa999]

just don't understand the rationale behind the AirAsia website.

Was part of the whole super app strategy with AirAsia Move which I don't think has been particularly successful.

 

[Quickstatus]

I hope Malaysia Airlines can absorb most of Air Asia's medium haul and regional operations, such as launching HND.

MH should be wary of picking up routes during volatile and high jet fuel prices.
We can't assume that Mh can operate any route more profitably than Air Asia
The problem is that a lot of Air Asia demand is the low cost demand. Make the prices higher and the demand would disappear.

Dont forget that MH gave up the HND slots in preference for NRT.
I think one reason is that the NRT fees are more attractive.

At various times MH also operated BKI-HND

 

[Saab34]

Tony had an investor briefing today and basically tried to downplay all the rumours. He was very to the point, they don’t have a cash issue, they are trying to refinance and reduce cost.

They only have a few hundred million bucks on hand so they definitely have a cash issue. They also are looking for money on the debt markets, no doubt all that became harder with the commentary out this week.

 

[kpc]

Tony had an investor briefing today and basically tried to downplay all the rumours. He was very to the point, they don’t have a cash issue, they are trying to refinance and reduce cost.

They only have a few hundred million bucks on hand so they definitely have a cash issue. They also are looking for money on the debt markets, no doubt all that became harder with the commentary out this week.

Hopefully the link works:

‘Ludicrous statement’: AirAsia co-founder Tony Fernandes refutes report claiming it needs government bailout

Addressing reporters during an online briefing on Friday (Sep 18), he said “no such conversations happened”.

www.channelnewsasia.com

 

[LionKing]

MH should be wary of picking up routes during volatile and high jet fuel prices.
We can't assume that Mh can operate any route more profitably than Air Asia
The problem is that a lot of Air Asia demand is the low cost demand. Make the prices higher and the demand would disappear.

Dont forget that MH gave up the HND slots in preference for NRT.
I think one reason is that the NRT fees are more attractive.

At various times MH also operated BKI-HND

My argument is MH has Business Class, and they can charge passengers A$3000 for KUL-HND whilst AK cannot. So why it is not profitable?

 

[Chatswood]

My argument is MH has Business Class, and they can charge passengers A$3000 for KUL-HND whilst AK cannot. So why it is not profitable?

If simply relying on high ticket prices in premium classes maintain profitability, why did MH/TG enter bankruptcy proceedings multiple times despite them charging high regional airfares?

What AK has done was to unlock the price-conscious cohort to flying further afield. How many passengers already choosing AK are likely to switch over to MH business class for about 10x the price each way, and how many will simply switch over to cheaper destinations or not choose to fly at all.