Indonesia AirAsia X (IDX, Jakarta Soekarno-Hatta) is pulling out of the Australian market as part of a network restructuring exercise aimed at increasing its operational efficiency.

The longhaul budget carrier will have operated its last regular flights from Denpasar to each of Melbourne Tullamarine and Sydney Kingsford Smith by September 1 of this year following a two year stint in the market.

Local media reports state Indonesia AirAsia X has faced stiff competition from the likes of Garuda Indonesia (GA, Jakarta Soekarno-Hatta), Tigerair Australia (Melbourne Tullamarine), and Jetstar Airways (JQ, Melbourne Tullamarine).

Indonesia AirAsia X operates five A320-200s and two A330-300s on regular flights to Jakarta Soekarno-Hatta, Solo City, Surabaya, and Yogyakarta Adisutjipto domestically and Kuala Lumpur International, Penang, Bangkok Don Mueang, and Jeddah International internationally. It is expected to be merged with sister carrier Indonesia AirAsia (QZ, Jakarta Soekarno-Hatta) later this year.