AirAsia X rationalizes routes, grand strategy, says Frost
Posted by- Neelam Mathews Jan 19, 2012 The recent decision of AirAsia X to stop flying to Mumbai and London raised many eyebrows about the sustainability of long haul low cost services. Though the immediate concerns point towards high jet fuel prices, immigration concerns as well as high airport taxes have also impacted the overall grand strategy to increase yields, rationalization and allocation of aircraft fleet to more profitable routes, says consultancy Frost & Sullivan. “These routes (Delhi and Mumbai and Paris and London) were bleeding on a low cost model and with the MAS-AirAsia collaboration, cutting off duplicate capacities makes sense,” says Amartya De, Frost & Sullivan Senior Consultant for Aerospace & Defense. “Part of the network rationalisation process is also to bring passengers from European destinations on MAS up to Kuala Lumpur and then giving the...