Tourism NZ spent RM2.4m on cancelled route
Malaysia - Tourism New Zealand is said to have spent NZ$950,000 (RM2.4 million) to promote AirAsia X's recently axed Christchurch route.
A New Zealand-based news site Stuff.co.nz, quoted Tourism NZ spokesperson Suzanne Carter, saying that it made a NZ$950,000 marketing investment for the AirAsia X service.
The report also stated that as a part of its promotions, Tourism NZ had funded a marketing manager solely to promote the AirAsia X service.
Carter said in the report that it was common for Tourism NZ to support a new airline service, often by matching the spend of the airline.
AirAsia recently announced it would axe flights to New Zealand to focus on its core Asian markets namely Australia, China, Taiwan, Japan, Korea and Iran.
AirAsia X, CEO Azran Osman-Rani said that the rise in jet fuel prices, having gone up 30% since its Christchurch routes began in April 2011 compromised the airlines' ability to offer its low fairs.
Upon the start of the Christchurch route, AirAsia was said to have made a two-year joint marketing agreement with Christchurch International Airport for an undisclosed amount .
When contacted by A+M on the report, AirAsia X responded:
"AirAsia X entered into a commercial agreement with Christchurch Airport in April last year. We are unable to reveal the content of the agreement but will honour the commitments that are due from our withdrawal."
At the beginning of this year, AirAsia X announced it would stop its London, Paris and Delhi and Mumbai routes.
On a positive note for the airline, it announced yesterday it would be increasing its flights to Taipei and Perth as part of the ‘network realignment strategy' and due to the strong demand of travel to those areas.
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