Commenting on the cancellation of the Jakarta-Singapore route, Bo said the airport tax levied at Changi Airport in Singapore, which costs more than the airfare itself, has rendered the route unsustainable.

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The Jakarta-Singapore Route Was Cancelled Due to Unsustainable Airport Taxes at Changi Airport

AirAsia Group has cited the airport tax at Singapore's Changi Airport as the primary reason for the cancellation of the Jakarta-Singapore route, stating that the tax exceeds the airfare itself. This significant cost imbalance has rendered the route economically unviable for the airline.
High Airport Tax Exceeds Airfare

The airport tax imposed at Changi Airport has been identified as a critical factor making the Jakarta-Singapore route unsustainable. According to AirAsia Group chief executive officer Bo Lingam, the cost of this tax surpasses the actual airfare charged for the journey. This situation makes it impossible for the airline to operate the route profitably.
Impact on Route Viability

The discrepancy between the high airport tax and the airfare has directly led to the route's cancellation. Operating under such conditions would result in substantial losses for AirAsia, making the route an unsustainable business proposition. The airline has therefore made the decision to cease operations on this particular service.
Potential for Alternative Routes

While the Jakarta-Singapore route has been discontinued, there is a possibility of reinstating a Jakarta-Thailand route. However, concerns remain regarding operational costs, particularly after a recent increase in airport tax in Thailand. This highlights a broader challenge for airlines in navigating varying airport charges across different destinations in the region.

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Commenting on the cancellation of the Jakarta-Singapore route, Bo said the airport tax levied at Changi Airport in Singapore, which costs more than the airfare itself, has rendered the route unsustainable.

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