Budget airline AirAsia cuts popular tourist route to Bali leaving travellers stranded

Australia Broadcast Center

20 hours ago

Pressure is mounting on the federal government to strengthen consumer protections in the aviation sector after a budget airline left travellers stranded and out of pocket when it abruptly cancelled services to a popular holiday destination.
Indonesia AirAsia, part of the AirAsia Group, told passengers via email and text this week that flights between Denpasar and Cairns will be suspended from next month, citing a "network optimisation initiative."
Just a week before the route was cancelled, the airline was selling one-way flights for more than $800 — at least three times the fare other passengers had paid in recent months.
Queensland couple Sandy Henny and Ned Kelly booked their Indonesia AirAsia flights to Bali to celebrate her birthday in November. The couple from Airlie Beach is yet to receive a refund.
"We got an email saying our flights are cancelled. No real explanation, just that they're optimising their network," Ms Henny said.
"There's no empathy."
Social media has been flooded with complaints, with travellers struggling to re-book or claim refunds. Return flights from Cairns to Bali will continue until next month but some customers say they'll need to fly home with another airline because the route cancellation takes effect during their holiday.
Indonesia AirAsia only began operating the three-weekly flights between Bali and Cairns a year ago, a service welcomed by Far North Queensland tourism operators as a direct link to a key holiday market.
In a statement, CEO of AirAsia Indonesia, Achmad Sadikin Abdurachman said the decision to cut flights from September 19 "follows a thorough analysis of demand trends and route performance, ensuring that we focus our resources on the most sustainable and high-demand operations."
He said the company had contacted travellers, offering full refunds, credit and offered flight changes to an earlier travel date.
The company introduced a direct service between Adelaide and Bali in June.
Aviation expert Justin Wastnage, an adjunct industry fellow at Griffith University's Institute of Tourism, said the abrupt cancellation reflects the business model of low-cost carriers.
He said overseas-based budget airline carriers often take decisions on routes "ruthlessly and quickly and just kill routes when they're not making enough money".
He said the risks for passengers are heightened in Australia because there is no automatic compensation in the event of cancellations, like Europe.
"Consumers have to take out their own travel insurance, which leaves those without adequate cover in the lurch," Mr Wastnage said.
He said low-cost carriers don't offer the same protections or services as larger airlines.
"You pay your money and you take your choices. The advertised fare might be low, but the extras add up — baggage, seats, protection — and if a flight is cancelled, you have very little recourse."
Unlike many other countries, Australia currently has no specific consumer protection laws for airline travellers.
The federal government's Aviation White Paper, released in August last year, set out plans for an independent Aviation Industry Ombuds Scheme and a Charter of Customer Rights, designed to establish national standards for the "fair and appropriate treatment of customers by airlines and airports."
The scheme is expected to start operating next year.
The Coalition's Airline Passenger Protections (Pay on Delay) Bill, seeks to introduce an Australian version of a scheme already in place in the European Union. If passed, it would require airlines to provide refunds or compensation for cancelled or delayed flights, giving travellers clearer rights.
At a senate committee hearing in March this year, Qantas Domestic CEO Markus Svensson said compensation-based schemes in Europe and Canada "do not deliver better outcomes for consumers".
"The potential effect on fares, implications for low-cost carriers and the likely negative effect on economically marginal routes, particularly on Australia's regional network, should all be closely considered," Mr Svensson said.
But Mr Wastnage disagreed and said the European scheme worked well.
"In Europe, the big network carriers were against it when it was first introduced but it does reduce delays and reduce cancellations because airlines factor in they will have to pay compensation if they cancel flights," he said.