AirAsia X blames 'exorbitant' taxes for decision to pull out of London

AirAsia X blames ‘exorbitant’ taxes for decision to pull out of London

Monday, 12 Jan, 2012 0

Malaysian airline AirAsia X is to withdraw its services from London Gatwick and Paris to Kuala Lumpur at the end of March.

CEO Azran Osman-Rani said the decision was down to continued high fuel prices, weakening demand and "exorbitant government taxes".

“The implementation of the Emissions Trading Scheme and the escalating Air Passenger Duty taxes in UK, which will rise yet again in April 2012, has forced our decision to withdraw our services to Europe," he said.

Gatwick Airport issued a statement this morning saying: "We are very disappointed to be losing AirAsia X, which has been operating a direct route from Gatwick to Kuala Lumpar since October last year."

The airport said the airline's decision is "clear evidence that the burden of additional taxation in all its forms is a material consideration for long haul airlines flying to the UK".

Air Asia X is also stopping flights from KL to Mumbai and Delhi, blaming visa restrictions and baggage handling charges.

It is offering passengers a full refund or the chance to reroute to another AirAsia X destination, or move to an alternative carrier where available.

by Bev Fearis

Bev

Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.