After AirAsia and AirAsia X, low-cost carrier, Thai AirAsia recently announced that it would stop its Bangkok-New Delhi services from March 24. An AirAsia executive in India said that the subsidiary of the AirAsia Group had announced the withdrawal owing to high operating costs that include high airport and fuel charges.
Thai AirAsia operates a daily flight between the Indian and Thai capitals, besides a weekly flight between Kolkata and Bangkok. The Kolkata flight will continue to operate, the executive added.
Withdrawal of the Bangkok-New Delhi service will begin with the airline lowering its frequency on the route to four flights-a-week on February 14. On March 24, it would come to a complete suspension, according to a report by Business Standard. Recently, AirAsia X, a long-haul subsidiary of AirAsia that operated flights from Delhi and Mumbai, also announced cancellation of flights from India, also owing to high operating costs. AirAsia, too, had announced it was pulling out flights from Hyderabad, owing to high user development fees at the Hyderabad airport. High sales tax on aviation turbine fuel (ATF) and high airport charges, which are proposed to be increased further, make India a high-cost market for airlines. The sales tax on ATF in the country is one of the world’s highest at 24 per cent. Fuel is almost half the total cost of domestic airlines. Airport charges are also set to increase. The Airports Economic Regulatory Authority has proposed an increase of 280 per cent in landing and parking charges at Delhi airport. The airport operator had asked for a 774 per cent increase in charges.
Click here to see the original article>Withdrawal of the Bangkok-New Delhi service will begin with the airline lowering its frequency on the route to four flights-a-week on February 14. On March 24, it would come to a complete suspension, according to a report by Business Standard. Recently, AirAsia X, a long-haul subsidiary of AirAsia that operated flights from Delhi and Mumbai, also announced cancellation of flights from India, also owing to high operating costs. AirAsia, too, had announced it was pulling out flights from Hyderabad, owing to high user development fees at the Hyderabad airport. High sales tax on aviation turbine fuel (ATF) and high airport charges, which are proposed to be increased further, make India a high-cost market for airlines. The sales tax on ATF in the country is one of the world’s highest at 24 per cent. Fuel is almost half the total cost of domestic airlines. Airport charges are also set to increase. The Airports Economic Regulatory Authority has proposed an increase of 280 per cent in landing and parking charges at Delhi airport. The airport operator had asked for a 774 per cent increase in charges.