AirAsia to discontinue Manado-KL flights, trade bemoan decision

AirAsia will cease its loss-making Manado-Kuala Lumpur service on February 25, almost one-and-a-half years after it first started plying the route.

Though traffic to Manado was growing, load factors from Manado was low, reaching 50 to 60 per cent on an average ticket price of 600,000 rupiah (US$64.50). AirAsia then increased ticket prices to cover the losses but this had an adverse impact on loads.

Indonesia AirAsia director of marketing and distribution Indonesia, Widijastono Nugroho, was quoted by Bisnis Indonesia as saying: ?The decision is final as we have been running losses for one year.?

North Sulawesi tourism stakeholders regretted the decision, which would dampen efforts to make Manado a MICE destination and a tourism gateway to the province. TTG Asia e-Daily also understands Manado is keen to provide the venue for the ASEAN Tourism Forum 2012 in Indonesia.

Mapanget Megah Wisata Tours and Travel managing director Reenaldo Wangkar said: ?We are losing both inbound and outbound groups with this closure. It is a big loss for us and for the destination.?

Local tourism stakeholders intend to lobby AirAsia to consider options such as a Kuala Lumpur-Manado-Makassar (South Sulawesi) service, a move some trade members consider too late.

Sourced = The TTG TravelHub