AirAsia suspends Sydney flights amid network realignment and fleet downsizing
AirAsia is to suspend operations to Sydney as part of a wider network "recalibration", and as it cuts its widebody fleet. The low-cost operator on 20 August said it is "repositioning" its presence in Australia, focusing instead on routes with stronger demand, including Kuala Lumpur-Melbourne and Perth, where it will be increasing frequencies from December. "The decision reflects a combination of increased cost pressures, softer demand and the need to strategically align the airline's network and fleet," it states. AirAsia adds: "The suspension of the Sydney service will enable AirAsia to focus its available fleet and resources on destinations where it can operate sustainably and efficiently, while ensuring its network and market demand align." The airline flies four times weekly between Sydney and Kuala Lumpur, operated by medium-haul unit AirAsia X on Airbus A330-300s. AirAsia X launched flights between Kuala Lumpur and Sydney in 2012. Its exit now means the route is only operated by compatriots Malaysia Airlines (20 flights a week) and Batik Air Malaysia (five flights weekly). In its second-quarter earnings, AirAsia Group says it will remove 25 older aircraft from its fleet – including 17 early lease returns – this year, as it restructures its operations to mitigate the spike in fuel prices. The airline had also previously disclosed that the A330s would eventually exit its fleet as moves to an all-narrowbody fleet. As part of its network "reset", the group has made significant capacity cuts, with capacity for the July-September period expected to decline 20-25% year on year. It permanently axed 33 "unviable" routes operated by its Indonesia and Philippines units, while further suspending 17 routes across the group. AirAsia X general manager Benyamin Ismail says: "The current operating environment requires us to make some tough choices. By accelerating the retirement of older, less fuel-efficient widebody aircraft and adjusting our network, we are taking the necessary steps to build a more resilient and commercially sustainable operation for the future."
