Aviation: AirAsiaX to "suspend" London, Paris, Delhi and Mumbai flights

Technically, the routes between AirAsia X's hub at Kuala Lumpur and London, Paris, Mumbai and New Delhi are not formally withdrawn - the airport slots are therefore not surrendered although some airports may demand their surrender if they are not used for a pre-determined period.

But the company intends to focus on its core markets in Asia Pacific and

The cancellations between KUL and India are the most surprising. Near neighbour Singapore Airlines has increased its flights to India in recent months and their aircraft run at near capacity on most flights.

That leads to a question as to why more passengers would prefer to fly with a full-service carrier at significantly higher prices than with a much cheaper option.

Tony Fernandes vehemently denied that the suspension of, in particular, the London and Paris routes was part of a deal with Malaysia Airlines that resulted in the approval of the KUL-Sydney route. He says that the business model works best on flights of up to eight hours. Paris and London are outside that threshold.

But Mumbai and New Delhi are not. Malaysia has a significant Indian population and those routes would seem to be a natural fit. AirAsia X CEO Azran Osman-Rani says that the main issue here has been strict visa restrictions for Indians entering Malaysia. Malaysia says that many Indians disappeared and assimilated into the population when visa restrictions were lighter. It is not the only country that has tightened visa conditions for Indians. The UK is another example. But, says Osman, there is another problem: airport and handling charges have added to the burden on airlines and that is "not conducive to the low-cost model."

But, says Osman, if the issues can be resolved, the company hopes to restore services to India.

Those familiar with SIA's passenger patterns say that many of the SIA passengers from India transit in Singapore. Indeed, Singapore's Tourism authority works hard, in conjunction with SIA, to persuade transit passengers to get out of the airport and into the city.

But the AirAsia group does not provide long-haul flights with true hubbing: bags cannot be checked through, there is no compensation or (at least not on paper) re-booking on the next flight if an inbound flight is cancelled or delayed and a linked flight missed. Indeed, it is not possible to book a through flight - all flights have to be booked individually or as a return.

Fernandes said that AirAsia X had been the first low cost carrier to make long-haul flights to London. That's not so: ill-fated Oasis launched a low-cost service from Hong Kong to London in 2006. By 2008, having added Vancouver (a major destination from Hong Kong and basically a family-shuttle service) it was out of business. Its failure has been blamed on, in particular, the choice of aircraft and rapidly rising fuel prices. Oasis leased ageing Boeing 747s with high-consumption engines.

AirAsia X, on the other hand, operates new Airbus 300 series aircraft.

The last Mumbai flight will be on 31 January 2012

The last New Delhi flight will be on 22 March and, in March, the frequency will be reduced to four per week.

For London and Paris, the last flights will be on 31 and 30 March respectively.This despite the airline reporting average load factors on those routes of more than 80% for 2011.

AirAsia X is offering passengers due to fly after these dates a full refund, a change of destination within the AirAsia X network or a change to alternative carrier, where it has been able to make such arrangements.

In Malaysia, a local newspaper, The Star, reported that the decision to suspend the London flights would affect some 14,000 students

The UK's airport tax is penal: indeed, it is a huge disincentive to travel for many, especially those from outside the UK. The tax is to be increased yet again as from 1 April.

For a carrier such as AirAsia X, the taxes often form the major part of the overall ticket price. But it is not only the airport tax that is causing concern: AirAsia X flies one of the world's most fuel efficient fleets but even so it will be hard hit by the European Emissions Scheme that is due to come into force later this year.

The decision might appear to call into question the airline's sponsorship of London soccer club Queens Park Rangers, owned by Tony Fernandes. But the wall-to-wall TV coverage of UK soccer means that the benefits are probably felt at least as strongly across South East Asia as in the UK itself.