AirAsia X Drops Auckland But Will Relook At Resuming Expansion To Australia/New Zealand

AirAsia X CEO Benyamin Ismail discusses the upcoming suspension of services to Auckland and how the Australia market is performing. Mr Ismail cites intense competition and low yields on the Gold Coast-Auckland sector in deciding to drop its only New Zealand route in Feb-2019 (see related analysis report from CAPA). AirAsia X will continue to serve Gold Coast with a daily turnaround service from Auckland, which Mr Ismail says is performing well. Elsewhere in Australia, AirAsia X has just moved its double daily Melbourne service to Avalon and Mr Ismail is encouraged by the initial bookings. Sydney is currently served 11 times per week, increasing to 14 during peak summer weeks, and Perth is served seven times per week, increasing to 11 during peak periods. AirAsia X’s previously operated more flights to Perth and Sydney and also served Adelaide, but Mr Ismail is satisfied with the current reduced scheduled for most of the year and offering extra peak season flights. A relaunch of Adelaide is no longer being considered because the airport is not receptive to LCCs (see related report from Blue Swan).