Budget airline passengers are extremely price sensitive. So which sensible traveller would pay a substantial premium over a full service carrier in order to take a no-frills one?
I ask, because that is the situation which Air Asia X fans now find themselves in should they be planning to book a flight to Kuala Lumpur on or after April 1.
That is the date when the Malaysian low-cost carrier will substantially hike fares on its five times a week service from London Gatwick.
Instead of pricing according to demand (as do other budget carriers), Air Asia X will charge a flat price of £340 one-way or £640 return. It means by the time you have added on taxes (£112), fuel surcharges (£40) and carbon offset fees (£18) the passenger will be paying a hefty £850.
If that was not enough, Air Asia X then charges extra for baggage check, onboard meals and inflight entertainment.
All this is a far cry from the days when Air Asia X launched its London route back in 2009 with an all-inclusive fare of £99 one-way or £198 return.
Also surprising is the revelation that flying to Kuala Lumpur with Air Asia X now costs more than taking a full-service carrier like Malaysia Airlines who flies more frequently (14 services a week compared with Air Asia X’s five flights) and provides more comfortable seating.
A return midweek flight from Gatwick to the Malaysian capital with Air Asia X costs £850 (before ancillary fees) compared to £821 with Malaysia Airlines from Heathrow.
The contrast in pricing is even starker if you plan on travelling in May. A midweek return costs £573 with Malaysia Airlines and £850 with Air Asia X. (Comparisons are based on tickets with similar booking conditions).
So what are we to make of all this? As Business Traveller revealed late last year (see online news December 21), there are rumours circulating within the Malaysian media that Air Asia X is poised to axe its European routes (London and Paris) because they are losing money.
If this were to happen then Air Asia X could bow out gracefully by transferring its passengers to Malaysia Airlines with whom it has a cross-shareholding. The move would boost the latter’s revenues and provide Malaysia Airlines with a Kuala Lumpur monopoly from both London and Paris.
So by Air Asia X charging more for its tickets, Malaysia Airlines will not lose out financially. Moreover the higher fares will discourage passengers from making new bookings with Air Asia X so, if there is a change, there will be fewer passengers to be switched.
At this stage, it must be stressed that Air Asia X’s website is accepting bookings as usual. No official announcement has been made and, at the time of writing, we could not elicit a comment from the airline.
For more information visit airasia.com.
Report by Alex McWhirter
