AirAsia delivers blow to Darwin: Flights to two popular overseas holiday destinations are axed
- The routes will be suspended from April 28
- The Northern Territory government isn't happy
- Read also: Qantas slammed for selling flights to Middle East
AirAsia has revealed plans to drop flights between Darwin and two popular overseas holiday destinations.
The airline announced it would be stopping services to Kuala Lumpur and Bali from April 28.
'Despite operating the routes for close to 12 months in the hope that demand would grow to a sustainable level, passenger numbers have remained commercially unsustainable,' AirAsia said in a statement.
'This decision was reached in a spirit of transparency and mutual respect, and AirAsia remains open to returning to Darwin should market conditions change.'
The move comes as part of AirAsia's initiative to have more of a presence 'across major Australian gateways with a series of network enhancements'.
AirAsia X chief commercial officer Amanda Woo apologised to those affected, but reiterated it was part of its business plan, as the airline adds a new service in Melbourne and expands the number of flights in Adelaide.
'We understand that the suspension of our Darwin routes impacts travel plans and we apologise for any inconvenience caused,' Ms Woo said.
'The capacity will be redeployed to other Australian destinations, further strengthening AirAsia's commitment to the market.'
AirAsia has unexpectedly suspended two of Darwin's most prominent air services, severely damaging its relationship with the Northern Territory government
The airline announced it would suspend its flights for the Darwin to Kuala Lumpur and Darwin to Bali routes from April 28, just over a year since the introduction of the latter service (stock image)
This wasn't the first time the airline pulled a similar ploy, with the Denpasar-Darwin route terminated eight years ago.
NT Trade, Business and Asian Relations Minister Robyn Cahill did not take the news well, telling the NT News she would think twice about working with the airline again.
'It's incredibly disappointing,' Ms Cahill said.
'I know it's a commercial decision, but feedback from travellers is strong, the service is great and this is just a really disappointing decision AirAsia has made.
She said she felt the airline pulled the plug too early.
'AirAsia hasn't even given it a year, and everybody tells me it takes two years to bed in a new route like this one and you need at least one year to gauge how things are going,' she said.
'I'd be so cautious about ever doing business with AirAsia again.'
To make matters worse, the NT's Territory Aviation Attraction Scheme helped fund the suspended Kuala Lumpur route.
AirAsia has axed its flights from Bali to Darwin (stock image)
'When you enter into a partnership like this, you at least hope they'll give it time and create that demand,' she said.
'You have to change peoples' behaviours.
'This was a particularly exciting opportunity for our international students who could fly home directly to Kuala Lumpur.'
Tourism Top End was also among the disgruntled parties, especially since the new routes had promised greater access for international tourists to the region.
'Airlines make decisions based on profitability and demand, and if the demand's not there, there's no point in staying,' Tourism Top End's Samantha Bennett said.
'This is what happens when we cry out for more seats, when what we need to concentrate on is improving capacity.
'We see 80,000 visitors who come here mainly for the nature and the wildlife and who need better infrastructure in our parks.
'We need more camping grounds, better signage, better facilities and the industry has to be focused on new product development because there is a need for more things for people to do.'
AirAsia is contacting customers directly affected by the suspensions and promised refunds would be received within 14 days.
AirAsia will launch a new flight service between Melbourne (Tullamarine) and Denpasar on March 21.
The airline will increase weekly services between Adelaide and Bali from four to seven flights.
