Air AsiaX's Long Haul Exit. Postscript - A warning to (European) Governments.

Further to our item last week about AirAsiaX's exit from its low fare long haul routes to Europe, the company's CEO has added a sobering warning about the effects of governmental greed on the ability of the low cost/low fare sector to operate profitably.

Very simply, he blames governments for "exorbitant" taxes and mentions in particular the new inclusion of airlines in the EU's Emissions Trading Scheme (ETS) and the UK's ever rising and punitive Air Passenger Duty (APD).

The sums are obvious. The greater the proportion of government taxes and charges to the total fare, the smaller the remaining proportion for the airline in which there is the opportunity and flexibility for lower cost carriers to undercut the high cost/high fare establishment, so the less powerful the numbers-driving price differentiator. In effect the governments are throwing the legacy carriers a lifeline they don't deserve,- and the travelling public are paying.

We have said before and will say again,-the notion that only the rich should be able to travel is so old fashioned that it's almost feudal. Outside the green lobby who don't seem to believe that anyone should be able or need to travel beyond their own town or village boundaries and the technco-lunatics who say travel is out of date in the brave new "Never leave your bedroom" video and IT world , the ability to roam the globe at will which aviation has progressively brought over the last 50 or so years with enormous benefits to people everywhere is now seen pretty much as a right. As well as being the source of great pleasure and new experiences to many, it is a necessity to many in less developed countries who have been economically liberated by the ability to go to wherever in the world the jobs and money are or to bring much needed foreign tourists and their spending power in to them.

Politically and socially, governmental strangulation of air travel by taxation is an unsustainable proposition. Ironically the first big losers could be the people who opened the doors of the recent travel boom,-the bright, innovative low cost carriers, starting with those who who have put a toe in the long haul water and found hungry, salivating crocodiles in there. The UK and European variety are the most voracious.It's tragic enough to make you weep real tears. Thankyou for trying though, Air Asia X, and good luck elsewhere.