30 Jul '11, 12pm

SQ aja nyaris mampus dihantam kenaikan fuel, BI apalagi -_- Royal Brunei Airlines to cut routes

SQ aja nyaris mampus dihantam kenaikan fuel, BI apalagi -_- Royal Brunei Airlines to cut routes

ROYAL Brunei Airlines (RBA) had to decide to suspend a number of routes this year "to ensure the very survival" of the flag carrier. The airline's financial performance particularly on long haul "has deteriorated to a point where the existing network is simply not sustainable in its current form", RBA said in a statement released yesterday. "Change is unavoidable." In June this year, the airline said it was suspending routes to Auckland, Brisbane, Perth and Asian cities Ho Chi Minh and Kuching. Addressing for the first time the termination of these routes, RBA said it has been "heavily subsidising" long-haul traffic. No more than nine per cent of traffic on long-haul routes originates or ends in Brunei, it said. "RBA has been effectively providing subsidies to over 90 per cent of the traffic that doesn't contribute to Brunei or the airline's economy," the airline said. "Co...

Full article: http://www.asiaone.com/Business/News/Story/A1Story2011073...

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