Air Asia & Kingfisher cutting flights.

sportsman

Sidecar racers have the biggest cojones
Contributor
Maybe nothing more than sound business practice.Could also indicate some financial problems looming.
I wonder if this will have any impact on Caterham team.
Australians who have booked flights to Europe with budget carrier AirAsia X after March will be affected by the airline's decision to suspend the flights in a cost-cutting move.
The long-haul unit of budget carrier AirAsia said yesterday it would suspend services to Paris and London and cut India flights in a bid to rein in costs.
The Malaysia-based airline cited global economic uncertainty, soaring taxes and higher jet fuel prices for the move, adding it would redeploy its fleet to profitable Asian and Australian routes.
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AirAsia X, a unit of AirAsia, will cease services to Mumbai and Delhi from January 31 and March 22, respectively while routes to London and Paris will end on March 30 and March 31 respectively.
 

RasputinLives

Leave me alone I'm on Smoko
Contributor
Hmm be interesting to watch, especially after Fernandez has told the team to become financially independent. If you look at their GP2 team its nothing more than a piggy bank of funds for the main team with 2 pay drivers - add to that the big bucks for Petrov being there as well and its not hard to argue Fernandez has obviously tightened his purse strings.

Having said though with the state of the economy as it is all airlines are floundering at the min so it could be just a sign of good business management like you said. Be interesting to see.
 

canis

Race Winner
Valued Member
Not much to tell really, the routes are currently loosing money due to cost of fuel and taxes for the flights through the stop overs. By not running the flights his profit levels go up, by putting the planes on routes that do make a profit then more profit again. Simple business decision and good it is taken now rather than when it is too late like a lot of other airlines that have run into major financial problems in the past few years...
 

canis

Race Winner
Valued Member
Not odd at all, all that is happening is that they are directing their existing fleet to profitable routes to maximise income. The new planes will be to cover the proposed expansion of routes into new territories. Simple rule of business, if something makes you profit, take advantage of it, if something looses you money stop doing it...
 

HammydiRestarules

Di Resta fan :).
Contributor
Reckon over the years Fernandez has earned a bit of money so i'm sure with that he'll continue to fund the team. Besides it's only a few flights he's cutting for routes that weren't taking much people aboard. Nothing to worry about really just another tabloid scare munger.
 

FB

Not my cup of cake
Valued Member
Sort of related, the Indian air transport regulators were threatening to pull Kingfishers licence as they were cancelling too many flights. Doesn't bode well for Vijay.
 

jez101

Bookies drive nice cars because of people like me
Contributor
Seems rather odd shortly after ordering 200 new planes.
Not odd at all, all that is happening is that they are directing their existing fleet to profitable routes to maximise income. The new planes will be to cover the proposed expansion of routes into new territories. Simple rule of business, if something makes you profit, take advantage of it, if something looses you money stop doing it...
It takes a long time for that many planes to get made, so I think that is for the long term while the route changes are much shorter term reasons.
 
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