AirAsia X cools expansion, continues cost-reduction

21 Nov 2014 01:35:20

thestar.com.my

AirAsia X Bhd, AirAsia's long-haul affiliate, is planning to slow down on its expansion and continue with its cost- reduction initiatives.

In a statement yesterday, the long-haul, low-cost airline said it would sell off two planes, trim its flight frequencies and delay the delivery of aircraft for the next three years.

It said eight aircraft scheduled for delivery next year would be reduced to six, as two planes were to be sold off.

"œMost of the six aircraft will be allocated to associates in Thailand and Indonesia, which are generating positive cash flow and have more growth upside," said AirAsia X CEO Azran Osman-Rani in the statement.

He said the capacity allocation for next year would see a decline in the number of flights to Australia.

For 2016, AirAsia X said it would halve its eight aircraft delivery to four, while for the 2017 delivery, the group would cut to five from eight aircraft. All nine planes that have been cut would be delivered from 2018 onwards.

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