Financial Issues for AirAsia as It Cuts Flights to Australia

neil on 20/11/2014 - 15:09

The Age

Budget airline AirAsia X will drop some of its flights to Australia from its Kuala Lumpur hub next year after losses from its Australian operations quadrupled to 121.4 million ringgit ($42 million) in the September quarter.

Wonder if this is the beginning of the end of epic AirAsia flights to KL?

This is a bit worrying:

Malaysia's The Edge Financial Daily this week reported AirAsia X had in October informed staff their wages and allowances would be paid on a staggered basis because of the "late arrival of incoming funds".

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Comments

  • noyesmaybeok on 20/11/2014 - 15:48

    Well they are insanely cheap so… party can't last forever.
    Book now while you can perhaps.

  • stargalaxy on 20/11/2014 - 16:48

    Hope Gold Coast to KL route still be maintained to have competition with Scoot Airline.

  • Davros on 20/11/2014 - 16:52

    Already have tickets booked for next year, better get travel insurance now just incase they cancel

    • ilikeradiohead on 20/11/2014 - 17:50
      -2

      I think I read somewhere that you need the insurance before you purchase the tickets? I might have got it mixed up with something else though. I'd read the T&Cs very closely though to see if you would be covered.

      • Davros on 20/11/2014 - 18:03

        And how the hell would that be possible when buying tickets on sale?
        You find the prices and dates and buy them, I don't buy insurance and then try and find tickets to suit that.

      • Letrico on 08/12/2014 - 18:37
        +1

        Not why you got negged. You are asking something that you don't understand and people should either answer or ignore you if they don't know as well.

    • jackofspade on 20/11/2014 - 18:52

      Me too but I have free insurance with my CC. I hope they don't change my flight otherwise I'll miss my connecting flight.

  • CyberMurning on 20/11/2014 - 17:18
    -1

    how about the parent MAS, how much are their losses after those misfortune accidents?

    • stargalaxy on 20/11/2014 - 17:55
      +3

      MAS is not their parent company, Air Asia is owned by individuals, founder is Tony who started with 1 or 2 planes about 10 years ago. They are a public listed company now.

      • terlalu on 03/12/2014 - 10:07

        This is actually Air Asia X (international flights branch), which Air Asia owns a percentage of, and not Air Asia (mainly domestic and asia)

  • SirFlibbled on 21/11/2014 - 10:49

    They'll probably just drop a few routes (like Adelaide) and probably just lessen the frequency of other routes.

    • wako on 23/11/2014 - 04:08

      NOooooooooo Not Adelaide………

      But I agree they probally will, I have caught it 4 times since started, And always been 50% full, Good in the aspect I always got 3 seats to myself as well as my other traveling companions

      • SirFlibbled on 23/11/2014 - 08:54
        +2

        Adelaidians generally just are hard to get OS. I have a lot of Adelaidian friends and every time I want to go on a trip, the excuses come out. They'd rather spend three times the amount and go to the Gold Coast then go to Thailand for a week.

  • onlyletters on 01/12/2014 - 13:53

    Considering Sydney is one of the most expensive airports to fly to, it will probably be Sydney to drop off..

    • SirFlibbled on 02/12/2014 - 15:00

      Not if the numbers are there. First and foremost it's about revenue. I'm pretty sure a full plane from Sydney would be worth more than a half filled plane from OOL or Adelaide even with the higher gate fees.

  • Iceyhusky on 04/12/2014 - 22:34

    Please don't buy flights with this scumbag company. They cancelled my flight from perth to kl in August and to this day I am still waiting for my refund. I received an email in sept saying it would be in my bank account in 30 days but nope nothing! I have in about 4 eforms, msged them on Twitter and fb and tried speaking to them online at least 3 times. The last time I tried I waited over an hr to speak to someone but after I gave them my case number they disconnected me. If you Google this problem you can see that they have been cancelling people's flights and withholding people's refunda for years now with many people never seeing their money again. Do yourself a favour and avoid like the black plague.

  • jackofspade on 07/12/2014 - 22:09
    +1

    Looks like they are cutting flight D7221 SYD to KUL from 1 Feb 2015. It no longer appears in the search result.

    • Peck on 09/12/2014 - 00:22

      And also the outgoing leg D7220. Their Syd - Kul - Syd flights have always seemed well patronized to me. Maybe they will no longer offer the outstanding deals to/from Sydney. I certainly will not bother doing an Optiontown on my bookings to/from Sydney D7222 / D7223 for next year. Doing the long walks thru KLIA2 airport for connections is a big disadvantage of flying with them.

  • clowfine on 08/12/2014 - 01:38

    Yep, they just cancelled my return flight from KUL to ADL in January, and put me on a flight a few days later. And the only possible compensation is a refund? Funny when there's no way to buy a ticket now for the same price, considering it was a budget ticket bought months ago. Luckily having my holiday extended by a few days doesn't affect me, but I can see how it might screw over some people.

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