I pulled my previous post Air Asia is pulling out of Trichy…..Thanx to A. Kumar and Subash in letting me know that AirAsia is not pulling out of Trichy but from Trivandrum. It was a mistake from my source of this information.  I stand corrected and modified this entry with the correct information. Thanx for making this right.

http://www.airasia.com/in/en/latestnews/reducedfrequenciesindia.html

AirAsia is also suspending service from Chennai to Penang, starting Jan. 21, although it is increasing frequencies on other sectors.

The reason cited by Air Asia is higher Airport taxes.

From Aviation week :

High airport taxes are hurting. “We are a commercial airline getting into a new market. If we have to pay half the ticket price in taxes on an average $100 fare, it doesn’t make commercial sense,” says Suresh Nair, AirAsia’s regional manager for South Asia.

Another telling quote from the same source above on the state of Indian Airports :

Indian airports are of two types. [There are] the private parasites who are doing a job. They put in money and want a return. But the danger is nobody is regulating their return. They look for short-term profits as opposed to long-term development. Then there are the government airports, where people get paid a salary [but] they do not do much work. Airports are always a problem in Asia.”

Too much growth too fast ?

or

Fast growth and no Planning ?