AirAsia on hiring spree, says group CEO
Published: 2009/03/27

LOW-cost carrier AirAsia Bhd is on a hiring spree and has no plans to reduce its work force, group chief executive officer Datuk Seri Tony Fernandes said today.

"We have about 6,000 employees, with the bulk from Malaysia and we expect the number to grow to 6,600 by end of this year," Fernandes said.

The carrier's staff strength when it was first established was only 200, he said after AirAsia Academy's graduation ceremony in Sepang.

On the Penang-Singapore route, Fernandes said the route was important for AirAsia but no approval has been received as yet and "it is a missing link for us".

Once secured, the route would have two daily flights, he said.

On financial performance, Fernandes said: "Looking at our passenger numbers, we are happy with our performance at the moment. Business remains quite strong."

At today's event, a total of 100 flight attendant trainees together with their representatives of guest services cadets and ramp agents received their graduation certifications.

Fernandes said AirAsia has invested about RM300 million in the academy, which is equipped with six flight simulators comprising four Airbus A320s, one Airbus A330, and one Boeing 737.

The academy also provides training for staff of 15 other airlines, he said.

"So, what was built for AirAsia's training has become a profit centre," he added.

AirAsia Academy, which is touted to have the most advanced aviation training facilities in Asia, is committed to developing homegrown pilots, he said. - Bernama

AirAsia X eyeing US market by year-end
Published: 2009/03/27

AirAsia X, the low-cost long-haul carrier, is eyeing the US market by year-end following its successful launch of the Kuala Lumpur-London route, chief executive officer Azran Osman Rani said today.

"There has been a lot of interest from the John F. Kennedy International Airport (in New York) and airports in California have also contacted us," he said.

Azran said the US airport operators realised that the air-travel traffic growth was coming from Asia and the premium airlines were also cutting back on their capacity to the West Coast and East Coast of the United States.

AirAsia X, which has already finalised the leasing of its second A340-300 from Air Canada, will either fly the Kuala Lumpur-Los Angeles route or Kuala Lumpur-London-New York route, he told reporters after AirAsia Academy's graduation ceremony in Sepang.

"If we have one plane, at most we can do is five times a week to Los Angeles. The challenge is to secure the rights from the governments," he said, adding that this would be a new market for AirAsia X.

On the Middle East, Azran said the possibility of the airline flying there could also materialise within this year. - Bernama

Hollywood, Big Apple now beckon
By Azlan Abu Bakar Published: 2009/03/28

http://www.btimes.com.my/Current_News/BTIMES/articles/BIGAP-2/Article/Current_News/BTIMES/Images/btgraph10/azran28.jpg

AirAsia X, the long-haul affiliate of budget carrier AirAsia Bhd (5099), may fly to the US by the year-end to expand its business.

Airports in Los Angeles and New York have asked the carrier whether it could make the longer trip to the US, after the launch of its Kuala Lumpur-London service, chief executive officer (CEO) Azran Osman Rani said yesterday.

London is AirAsia X's fifth destination after Gold Coast, Perth and Melbourne in Australia and Hangzhou in China.

"We received a lot of interest from airports such as the John F. Kennedy International Airport in New York and airports in California," he said.

Azran said US airport operators were starting to realise that most of the air travel growth was coming from Asia. At the same time, premium airlines were reducing flights to the West and East Coasts of the US.
The US would be a new market for AirAsia X.

"The US market has enormous tourism potential and people there will have a chance to come to Southeast Asia directly through AirAsia X," Azran told reporters after attending the graduation ceremony of 100 new flight attendants at the AirAsia Academy in Sepang, Selangor. Also present was AirAsia group CEO Datuk Seri Tony Fernandes.

Azran said the airline will most likely fly five times a week to Los Angeles using one aircraft.

"We have already finalised the leasing of our second A340-300 from Air Canada, which will start operating in July, and will either fly the Kuala Lumpur-Los Angeles route or Kuala Lumpur-London-New York route," he said.

More Airbus planes will be available next year, he added.

However, Azran said the real challenge for AirAsia X was to secure government rights to fly to more cities around the world.

On its expansion to the Middle East, he said the airline would most likely fly there this year.

Recently, AirAsia X was given approval to fly from Kuala Lumpur to Delhi and Mumbai in India. It will also service additional destinations in China, including Chengdu and Xian.

As for AirAsia, it will fly from Kuala Lumpur to Chennai, Hyderabad, Kolkatta and Bangalore in India.

AirAsia-OnAir inflight phone call pact
Published: 2009/03/28

AIRASIA Bhd has entered into a memorandum of understanding with OnAir Switzerland Sarl to work on in-flight phone call services.

The contract with OnAir forms part of the low-cost carrier’s effort to increase variety and improve the quality of its services.

AirAsia and OnAir will jointly market the service and both airlines have agreed on a revenue-sharing formula.

MAS chief receives Italian govt award
Published: 2009/03/28

http://www.btimes.com.my/articles/jala27/pix_topright

MALAYSIA Airlines' (MAS) (3786) managing director and chief executive officer Datuk Seri Idris Jala recently took home the Order of the Star of the Italian Solidarity (OSSI) award from the Italian Government.

The award was instituted in 1948 to honour Italian citizens or foreigners who have given special contributions to strengthen the relationship between their country and Italy.

In a statement issued yesterday, Jala attributed the award to his staff who have worked hard to turn around the airline.

"We are now embarking on a transformation journey in pursuit of our vision to become the world's five-star value carrier.
"Among our key business thrusts include winning coalitions and we are delighted to work closely with our Italian counterparts to pursue this goal," he said.

Presenting the award was Italian Ambassador to Malaysia, Alessandro Busacca, who said that this special award, the First Class OSSI, known as the Grande Ufficiale, is only given to a select group of people. This year, it was awarded to 29 recipients.

AirAsia Now "The New Girl" In Singapore
March 31, 2009 17:26 PM

SINGAPORE, March 31 (Bernama) -- "The new girl has finally arrived. She's twice the fun and half the price". Don't be mistaken and be easily excited about the cry. It is not about a girl coming to town and soliciting for customers.

It is actually the newly revived tagline of low-cost carrier AirAsia for its promotion drive to sell its inaugural air services departing from Singapore to four Indonesian cities of Jakarta, Bandung, Yogyakarta and Bali.

AirAsia group chief executive officer (CEO) Datuk Seri Tony Fernandes was here today together with AirAsia Indonesia CEO Dharmadi to reveal the suggestive catchphrase.

Speaking at the grand launch of the new routes, Fernandes said the tagline was first advertised in the local newspapers in 2004 to introduce AirAsia then, except that the old first phrase began with "There's a new girl in town", and he was thrilled by the long journey (seven years) he took to establish the airline's presence in the city state.

He said since the new air services began operation exactly a week ago (March 24), AirAsia managed to sell over 90,000 seats for the four Indonesian routes.

Fernandes said with the latest Indonesian flights, and flights from the Malaysian cities of Kuala Lumpur, Kuching, Kota Kinabalu, as well as Bangkok and Phuket in Thailand, AirAsia was now operating 20 flights daily into Singapore.

AirAsia hoped to more than double the number to 50 flights daily in next two years when the frequency of the existing routes were increased and more new air routes to the city-state were established, he said.

The new routes the airline is looking at are Penang and Langkawi in Malaysia as well as Medan and Surabaya in Indonesia.

Fernandes said AirAsia was expecting to carry a total of two million passengers to and from Singapore this year.

The AirAsia CEO was optimistic when asked whether the ongoing economic recession would eventually clip the wing of the airline, saying he was positive about the matter as the company's growth was not slowing down.

According to him, AirAsia was bucking the trend as the performance of the company for the first quarter of this year was good, and he expects the positive results to continue in the successive remaining quarters.

Fernandes said what mattered most was that AirAsia must continue "to provide better value, ease of travel with good connectivity and high quality of services" to its passengers as these were what they were looking for.

He said that "AirAsia's latest Indonesia-Singapore link forms the final piece of our network jigsaw puzzle as it resembles the importance of AirAsia network, making it the most powerful in Asia".

Fernandes said AirAsia also planned to operate into Japan either by the end of this year or in the first quarter of 2010, adding that the airline would sponsor a Japanese sports team to stamp its mark there.

The four direct scheduled flights from Singapore operate twice daily to Jakarta, and daily to Bali, Bandung and Yogyakarta.

-- BERNAMA

AirAsia plans more flights to Singapore
By Jeeva Arulampalam Published: 2009/04/01

SINGAPORE: Budget carrier AirAsia Bhd (5099) hopes to operate up to 50 daily flights to Singapore from Malaysia, Thailand and Indonesia within the next two years, almost double the daily flights it has now.

It plans to add flight frequencies to its existing routes, including to bump up its Kuala Lumpur-Singapore daily flights to 12 from the current seven, and introduce new routes between the island-city and the three countries.

AirAsia currently has 10 routes connecting Singapore and is looking to introduce at least three new routes this year, which include Penang and Langkawi in Malaysia and Medan and Surabaya in Indonesia.

"We expect to carry some two million passengers to and from Singapore in 2009, compared with 1.4 million in 2008," group chief executive officer Datuk Seri Tony Fernandes said after officially launching its latest four new routes between Indonesia and Singapore yesterday.

Inaugural flights between Singapore and Indonesian cities of Jakarta, Bandung, Yogyakarta and Bali started last week, recording forward bookings of 80,000 so far.
"These new routes signify our effort in realising the open-skies policy. Despite the economic uncertainties, Indonesia still recorded the largest number of tourist arrivals to Singapore among Asean countries," said Indonesia AirAsia chief executive officer Dharmadi.

Fernandes said many Singaporeans were keen to fly to Penang and Langkawi, and the airline would be able to ply those routes as soon as it gets the official green light from the authorities.

Business Times reported last week that the Cabinet had granted permission to AirAsia to fly to Singapore from Penang in addition to Langkawi, Sandakan and Tawau.

Fernandes also told Malaysian reporters later, that Singapore was seen more importantly as a contributor to enhancing its network.

"There was a time when Singapore would have been seen as a larger revenue contributor but because we have diversified our revenue streams by flying to China, India and Indonesia, it is not as big a contributor," he added.

Fernandes also said that its long-haul sister carrier AirAsia X will start flying to Japan by year-end or early next year and added that it will be sponsoring a Japanese sports team to make its mark there.

AirAsia plans to borrow RM3b next year
Published: 2009/04/01

AIRASIA Bhd, Southeast Asia’s largest low-cost carrier, plans to borrow RM3 billion (US$822 million) next year to help pay for 24 new planes.

The money is on top of the estimated RM2.1 billion already lined up for 14 planes this year, Mohshin Aziz, AirAsia’s head of investor relations, said by phone. The Wall Street Journal reported the plan earlier today.

AirAsia plans to expand its fleet as the region’s economic growth fuels travel demand. Air travel in the Asia-Pacific region, excluding within China, may grow 6.2 per cent a year on average until 2027, according to Boeing Co.

AirAsia is also negotiating with Malaysia Airports Holdings Bhd, which operates the country’s airports, for lower charges including landing fees at a planned new low-cost terminal at Kuala Lumpur International Airport, Aziz added. - Bloomberg

MAS wins 6th 'world's best cabin staff' award
Published: 2009/04/02

MALAYSIAN Airlines (MAS) has regained its position as having the "World''s Best Cabin Staff", findings of a latest global online survey by Skytrax reveal.

This is the sixth time the airline has been given the recognition since 2001, said MAS in a statement.

Managing Director and Chief Executive Officer Datuk Idris Jala said he was delighted and proud of his cabin crew.

"They have showcased Malaysian hospitality at its best, treating our customers as valued guests in our own home.

"This is really good news indeed especially amid the challenging time. It will put us in good stead as we move forward to achieve our vision of becoming the World's Five Star Value Carrier, offering customers the highest quality products and services at the most affordable price, he said. - Bernama

AirAsia named world’s best low-cost carrier by Skytrax

http://thestar.com.my/news/story.asp?file=/2009/4/4/nation/20090404163724&sec=nation

KUALA LUMPUR: AirAsia has been named the world’s best low-cost carrier by Skytrax, a Britain-based consultancy that rates commercial airlines.

AirAsia group chief executive officer Datuk Seri Tony Fernandes said he was thrilled as the company hard works and efforts had been rewarded.

“We have won numerous awards but this award is very special.

Even thought AirAsia is a low-cost carrier, it is a high quality product. We have again brought this Malaysian brand to the world.

“AirAsia can be an inspiration to other Malaysian companies that they can excel in anything that they chosen to be and also be the best on the world,” he said Saturday.

On April 1, Skytrax presented AirAsia the award in a ceremony held at the Aircraft Interiors Expo 2009 in Hamburg, Germany.

The award was conferred based on the final results of the annual World Airline Survey by Skytrax, conducted between August 2008 and March this year, from respondents of diverse nationalities, evaluating passenger satisfaction for an airline’s products and service standards.

Fernandes said the winner was not selected by the industry or any self-interested committee, but by actual passengers who flew the respective airlines and this made the award even more meaningful.

“We are very honoured to triumph over other low-cost carriers like Ryanair, easyJet and Southwest Airlines,” he said.

He said AirAsia stood among other low-cost carriers largely based on its amazing cabin crew, professional pilots and guest serving staff on the ground.

“We are also good in many ways including on-time schedule, web check-in, airbus and food. Our assigned seating system has pleased many passengers and our call centre has high performance in serving them,” he said.

He said AirAsia’s efforts to improve would not stop here as the ultimate aim was to be the best airline in the world.

He said the company would continue to improve customer experience and would bring in more technology to enhance its service.

AirAsia to fly Langkawi-Singapore route soon
Sunday April 5, 2009

SUNGAI PETANI: Direct flights between Langkawi and Singapore by AirAsia will take off soon.

Transport Minister Datuk Seri Ong Tee Keat announced yesterday that the Government had given approval to the low-cost carrier to operate the route.

He said the move would boost tourism and the economy in Langkawi.

“We will leave it to AirAsia to assess the situation and decide on the frequency of flights,” he told reporters after a dialogue with Chinese non-governmental organisations yesterday.

On March 7, 15 Chinese associations in Langkawi called on the Government to allow AirAsia to fly direct between the two destinations to help the resort island weather the current economic storm.

Langkawi MCA division chief Datuk Chen Liau Weng, who made the appeal to Ong, said direct flights were crucial as he claimed that the Kedah government had not been promoting tourism.

In Kuala Lumpur, AirAsia group chief executive officer Datuk Seri Tony Fernandes was elated that the airline had been voted the world’s best low-cost carrier by British-based consultancy group Skytrax.

He said the award was special as it had put a Malaysian brand on the world aviation map again.

“We have won numerous awards but this one is very special. Even though AirAsia is a low-cost carrier, it has high quality products.

“AirAsia can be an inspiration to other Malaysian companies that they, too, can excel in anything and be the best on the world,” Fernandes said yesterday.

Skytrax presented the award to AirAsia during the Aircraft Interiors Expo 2009 in Hamburg, Germany, earlier this month.

The award was conferred based on the results of the annual World Airline Survey by Skytrax, conducted between August 2008 and March this year from respondents of diverse nationalities.

“We are very honoured to triumph over other low-cost carriers like Ryanair, EasyJet and Southwest Airlines,” he said.

AirAsia stood out based on the good performances of its cabin crew, pilots and ground staff.

Air Asia is really great! I experienced it 3 times in Malaysia, and on KL - BKK route, amazing staff, new planes! I wish they could launch KL-Moscow route, i'd definitely use it :)

Air Asia, the aviation agency of Malaysia, may start flight service between Mangalore and Kaula Lumpur in the near future, said the outgoing director of Mangalore Airport M R Vasudeva.

Speaking after receiving felicitation from Kanara Chamber of Commerce and Industry (KCCI) at the Chamber hall here on Saturday, he said the Malaysia aviation agency is seriously mulling over initiating flights which may be helpful to the Malaysian students studying in the district to a great extent.

Vasudeva said some of the senior officials of the Air Asia have discussed with him the matter, and they have been convinced regarding the necessity.

source: mangalorean.com

AirAsia flies high in global arena
Published: 2009/04/06

AIRASIA Bhd group chief executive officer Datuk Seri Tony Fernandes is thrilled that the low-cost carrier has reached global heights as a Malaysian brand, with him receiving the Laureate Award recently.

Fernandes, who was the recipient of the Laureate Award in the Commercial Air Transport category, attributed the award to AirAsia's staff for their dedication.

"Fernandes was chosen for his tireless efforts to build the AirAsia brand into one of the most recognisable in Asia-Pacific, while always maintaining its successful low-cost model. We would also like to give a nod to Tony for being one of the more charismatic leaders in the airline industry," said Aviation Week deputy managing editor Jennifer Michels in a statement.

The Annual Laureate Awards recognises exceptional strategy, heroism and leadership in aviation, aerospace and defence.

Inside flight attendant school
February 24, 2009

http://images.brisbanetimes.com.au/2009/02/23/393524/Malaysia-Flight-Attendant-T-420x0.jpg

The flight stuff ... Malaysia Airlines cabin crew
outside a full-scale model plane cabin.

Craig Platt goes behind the curtain to discover what it takes to become a member of one of the world's top cabin crews.

You've got to get the walk right. Chin up, to project confidence, but not so high as to make you look arrogant. Make eye contact with the people you pass. Take moderate steps. The slit in your dress is long, and you don't want to expose your legs as you walk. You must appear graceful and gracious. When people see you walking through an airport, they will know who you are. Remember that you're an ambassador, not just for an airline, but for an entire country.

This is what Madam Choong Lee Fong, Malaysia Airlines' cabin crew training and standards manager, drills into her students at flight attendant school. Located in a huge concrete block in Kuala Lumpur, the training centre is home to up to 600 flight attendants at a time.

Madam Choong has a reputation to uphold. Malaysia Airlines cabin crews were voted the second-best in the world in last year's respected Skytrax survey of 15 million passengers worldwide (down from first place in 2007).

Learning how to walk elegantly is just a small component of a training regime that takes in areas such as flight safety procedures, emergency response, food service, grooming and even social etiquette.

"Staff might be invited to represent the airline at a dinner or event," explains Madam Choong, "so they need to know how to sit down properly at the table."

In the grooming class, a large group of male students are busy buffing their nails. Their hands need to look good when they're serving passengers food, Madam Choong says.

Meanwhile, the women in the class are getting lessons on doing their hair and make-up. There are mirrors on every wall of the classroom, so the students can keep as close an eye on themselves as the instructors do.

The men don't get the make-up lessons, but they are taught how to care for their skin - moisturising is important, we're told, when your working environment is so dry.

From day one the students are being observed, Madam Choong says. The school staff will monitor their progress closely to ensure that, at the end of the course, they not only know all the technical information and safety procedures they require, but that they look good too.

And they do look good. But, we're told, the airline isn't looking for Miss Universe candidates, they just want people who can look graceful in the uniform. The exhaustive interview process also provides the selectors an chance to examinethe presentability of the candidates.

But attitude is more important, Madam Choong says. "Are they presentable? Respectable? Do they make you feel comfortable? Do they seem approachable?"

Interpersonal skills and public speaking training also form part of the training. Voice training is also covered - while the flight attendants might generally speak softly to passengers, they need to be able to up the amplitude if they're issuing instructions in an emergency.

As for their looks, Madam Choong tells us that the training will transform them.

It is true that there are height and weight restrictions for the cabin crew. The flight attendants have to be tall enough to access the bags in the overhead compartments, with a minimum height of 165 centimetres for women and 176 centimetres for men. Their weight must be within the healthy range determined by the standard body mass index (BMI).

Like flight attendants everywhere, there's a perception in Malaysia that working for the airline is a glamorous gig. Madam Choong brings those views crashing back to earth as quickly as possible.

"We remind them that it is not so glamorous when you are on your knees in the aisle cleaning up the vomit of a drunk and still trying to look elegant," she says.

Drunks are one of the most common problems flight attendants must deal with, and the students must go through several `role play' situations where they are forced to deal with the type of problem passengers they are likely to encounter once they start flying. Often, the scenarios are taken directly from actual incidents on flights.

The attendants are also given first aid training, which they are required to take refresher courses in on a regular basis. Training includes the delivery of babies, and in the training room we see the (somewhat amusing) plastic model of a woman's genital area, complete with plastic baby peeking out. Births on planes do happen - at the start of the year a baby was born on a Northwest Airlines flight from the Netherlands to the US. In that case a doctor was on board, sparing the crew from the task of delivery.

Aside from having to cope with tough situations, Malaysia's flight attendants face other drawbacks to - particularly the women. One trainer reveals that female cabin crew are not allowed to have children in the first five years of service (they are not allowed to work while pregnant). In addition, they face retirement at age 45 - ten years earlier than the men.

In all, the course takes months, though different courses exist for different aircraft - safety procedures and cabin layouts vary, and the training varies accordingly.

As we leave, a group of flight attendants and pilots are going through ocean landing training. They jump from a full-scale model jet into an indoor pool, fully clothed, and practice how to draw the attention of search aircraft by forming a large circle and kicking up the water. It may be a serious subject but, as the crew splash about in the water, it makes at least some parts of being a flight attendant look kind of fun.

Craig Platt is online travel editor. He travelled to Kuala Lumpur as a guest of Malaysia Airlines.

Source: http://www.brisbanetimes.com.au/travel/inside-flight-attendant-school-20090210-82qs.html

Inside flight attendant school
February 24, 2009

http://images.brisbanetimes.com.au/2009/02/23/393524/Malaysia-Flight-Attendant-T-420x0.jpg

The flight stuff ... Malaysia Airlines cabin crew
outside a full-scale model plane cabin.


Madam Choong has a reputation to uphold. Malaysia Airlines cabin crews were voted the second-best in the world in last year's respected Skytrax survey of 15 million passengers worldwide (down from first place in 2007).



sorry Mr Platt, it's world's 1st!

and it is also MAS' 6th time to get the same title.

sorry Mr Platt, it's world's 1st!

and it is also MAS' 6th time to get the same title.

i think what he meant was last year Skytrax 2008, MH got 2nd in the world compared to the year 2007 (MH 1st in the world).

Yeah you are right hafidz jon, in 2008 MH got 2nd in the world which is lost to Asiana Airlines ! kadang kala kali itu China telah host Olympic Games pada tahun 2008! BTW MH 1st in the world since 2001!

PCawFW6Pp3w

WORLD'S BEST CABIN STAFF 2008

1.Asiana Airlines
2.Malaysia Airlines
3.Singapore Airlines
4.Thai Airways
5.Air New Zealand

© Skytrax

WORLD'S BEST CABIN STAFF 2009

1. Malaysia Airlines
2. Asiana Airlines
3. Thai Airways
4. Singapore Airlines
5. Cathay Pacific

http://img37.picoodle.com/img/img37/4/6/10/f_01m_9fb53c7.jpg

World's Best Cabin Staff 2007 (http://www.worldairlineawards.com/Awards_2007/CabinStaff.htm)
We Fly (Malaysia Airlines Theme - Original Version)

p7WKuRZ4R70

http://i102.photobucket.com/albums/m95/fdzy/MAS/kabin5.jpg http://i102.photobucket.com/albums/m95/fdzy/MAS/kabin8.jpg

http://i102.photobucket.com/albums/m95/fdzy/MAS/kabin11.jpg http://i102.photobucket.com/albums/m95/fdzy/MAS/kabin10.jpg

http://i102.photobucket.com/albums/m95/fdzy/MAS/kabin7.jpg http://i102.photobucket.com/albums/m95/fdzy/MAS/kabin4.jpg

Malaysia Airlines: (TVC) Beyond Expectations

-69yTWJW88k

http://i102.photobucket.com/albums/m95/fdzy/MAS/kabin9.jpg

An experience redefined!
by Lin.y.c
http://www.flickr.com/photos/linyc/1352298117/

http://farm2.static.flickr.com/1272/1352298117_7bbf596355_b.jpg

MAS gets five-star ranking for the fourth time
Published: Sunday April 12, 2009 MYT 12:47:00 PM
By YUEN MEIKENG

PETALING JAYA: Malaysia Airlines (MAS) has successfully retained its five-star airline ranking, making it the fourth year in a row.

The ranking recognises the highest product quality and consistently high standards of staff service delivery onboard and airport environments.

The national carrier was assessed by airline and airport industry research advisor Skytrax under its Quality-Cost-Value-Satisfaction audit from November to December last year.

“This award is a timely recognition of our employees’ continuous commitment to delivering the highest quality at affordable prices,” said MAS managing director and chief executive officer Datuk Seri Idris Jala in a statement on Sunday.

He added the airline’s value proposition was to treat its customers as how they would treat guests at their own homes.

“We now have over 700 customer-focused initiatives. These are aimed at improving our front liners’ interaction skills and service delivery as well as improving our physical product and service offerings,” Idris said.

Skytrax Group chief executive officer Edward Plaisted said the greatest attribute behind the five star status was an airline’s ability to deliver the combination of product and service.

“The airline industry is a people-business and we are highly focused on recognising those airlines whose staff deliver a true five-star standard of service delivery,” he said.

MasKargo waives charges for 6 months
by Tony Goh
Friday, 10 April 2009 19:16
THEEDGEDAILY

PETALING JAYA: Malaysian Airlines Cargo Sdn Bhd (MasKargo) is waiving its air-to-air and land-to-air cargo transshipment terminal charges for six months effective immediately.

It also reduced its schedule flight capacity by 30% to optimise efficiency due to a decline in cargo volume amid overcapacity.

"These measures are part of our efforts to assist the air cargo industry in these difficult times. We hope to offset the loss in revenue from the waiver of charges with improvement in volume," its managing director Shahari Sulaiman said during a media briefing on April 10.

Transhipment currently accounts for about 60% of MasKargo's business.

According to Shahari, there was a noticeable drop in air cargo volume, which fell by 28% in January from a year ago. However, there were signs of improvement with March volume up 24% from February.

MasKargo’s efficiency had also increased with mishandling down 50% so far this year from last year, while space utilisation improved by 15%.

"We are also increasing the CCTVs (closed circuit televisions) at the cargo warehouse by another 15% to enhance security," said Shahari.

MasKargo is expanding its chartered flights to new destinations, with Lagos in Nigeria and Malmo, Sweden being the next stops.

There was also upside for mail shipment, with revenue up 80% last year. "This would another area that we want to grow,” said Shahari.

He said the fall in jet fuel from the peak of US$170 per barrel in July last year to around US$70 now could help MasKargo ride out the current turbulence.

MAS offers 9 deals to get more people to fly
Updated: Wednesday April 15, 2009 MYT 2:02:52 PM
By YUEN MEIKING

PETALING JAYA: The global economic crisis has prompted Malaysia Airlines (MAS) to offer nine flights deals in a bid to lure passengers on board.

“Never waste a good crisis. While we cannot control the operating environment, we can control the way we run our business,” said MAS managing director and CEO Datuk Seri Idris Jala on Wednesday when unveiling the deals available from Wednesday to Dec 31, 2009.

The deals include heavy discounts and a ‘buy-one-get-one’ ticket to destinations in Malaysia and the Asean region.

Among the deals are a free ticket for a under-12 child for every two adult economy tickets under the ‘Kids Fly Free’ promotion and two economy tickets for the price of one under the ‘MHFlex 1+1’ deal.

“In times of crisis, products must be tailored to suit the wallets of consumers. People still intend to fly even during the economic crisis. We just have to provide them with options,” he added.

Other deals offered include the ‘Economy +’ package where travellers can enjoy business class privileges with economy class tickets.

Those who prefer to travel by business class can opt for the ‘Business Companion’ deal which offers a 50% discount on a second ticket for domestic, ASEAN and international travel.

For more information, visit the MAS website at www.malaysiaairlines.com.

No charge to reschedule flights
Wednesday April 15, 2009

KUALA LUMPUR: Passengers on Malaysia Airlines (MAS) flights can reschedule their flights from Kuala Lumpur to Thailand and vice versa for no charge until the end of the month. MAS network revenue management senior general manager Dr Amin Khan said that it had given this flexibility to passengers who are already booked with them due to the current situation in Thailand.

“This will help passengers get out of Thailand, and provide options to those travelling into the country,” he said.

To reschedule flights, call Malaysia Airlines ticketing offices at 1-300-88-3000.

MAS Launches Stimulus Package To Boost Revenue
April 15, 2009 12:15 PM

SUBANG, April 15 (Bernama) -- In efforts to boost passenger load and revenue, Malaysia Airlines (MAS) is offering nine deals covering first, business and economy class under "MAS Stimulus Package".

Managing Director and Chief Executive Officer Datuk Seri Idris Jala said the airline has been looking at everything it has been doing since last year, making radical changes to increase revenue and provide benefits to customers during the current difficult times.

"These deals have been tailored to meet what the customers want and stimulate travel demand," he told reporters at the new package launch.

Idris said the national carrier's online revenue grew by 150 per cent since the launch of the "Everyday Low Fares" programme in May last year.

During the recent Malaysian Association of Tour and Travel Agents (MATTA) Travel Fair, its revenue grew by about three fold to RM11.7 million from RM3.4 million, he said.

"The Malaysia Airlines Travel Fair in February recorded 36 per cent growth to RM95 million this year as compared to RM70 million last year," he said.

Earlier, in his speech, Idris said the package was in line with MAS' vision to transform the airline into "The World's Five Star Value Carrier."

MAS are offering seven deals for economy class travel, one each for business and first class from today till year-end.

The deals are Premium Match, Business Companion, Economy+, Balik Kampung, Weekend Getaway, Kids Fly Free, MHFlex 1+1, 80 Per Cent Discounts off Domestic & ASEAN and Grab-A-Deal.

For more information log on to www.malaysiaairlines.com.

-- BERNAMA

MAS: No qualms about change
By Jeeva Arulampalam
Published: 2009/04/16

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Malaysia Airlines (MAS) (3786) has no qualms about changing its business model to survive as long as it maintains its five-star value carrier brand, says its chief.

"It's absolutely necessary and you need to change it radically to survive and win in such a tough operating environment," said MAS chief executive officer Datuk Seri Idris Jala after launching the airline's latest initiative dubbed the "MAS Stimulus Package" yesterday in Petaling Jaya.

Idris said sales for MAS' international flights have fallen slightly in line with global trends.

It continues to roll out new deals to cope with falling global passenger demand and boost sales for its first and business class travel. Airlines typically make money on premium travel.

Under the "MAS Stimulus Package", there are nine deals available until December 31 2009 for first, business and economy class travel.
The "Premium Match" deal will see it match the price of a passenger's previous first or businessclass travel on another airline for flights above three hours, either for Asean or international travel.

It is also offering a 50 per cent discount for the second business- class ticket purchased for a domestic, Asean or international flight under its "Business Companion"deal.

Under the seven economy-class deals, a child below 12 years old can travel free for every two adult economy class tickets purchased, while one companion can travel free with the purchase of one economy class ticket. Both deals, "Kids Fly Free" and "MHFlex 1+1", are applicable for domestic and Asean travel only.

Other deals include the "Balik Kampung" fare for weekend domestic flights and "Weekend Getaway" special for Asean flights. The airline is also offering up to 80 per cent discount off domestic and Asean travel booked online.

Two of its deals, which are available since last month, have drawn in sales of more than RM17.5 million.

"This shows that if you give the public what they want, they will travel," Idris said. Seats under the "Balik Kampung" package are sold out for the next two months.

He added that the nine deals are tailored to the size of the customer's wallet and will help stimulate travel demand. "... People are now (also) purchasing their tickets later, as they wait for better deals and prices."

Meanwhile, MAS said its revenue tripled to RM11.7 million from RM3.4 million during the recent Matta Travel Fair, while the MAS Travel Fair in February posted 36 per cent growth to RM95 million in 2009 compared to a year ago.

MAS offers value deals
Thursday April 16, 2009

http://thestar.com.my/archives/2009/4/16/nation/n_08mas.jpg

Travel stimulus: MAS cabin crew holding up the logos of the nine new flight
deals at the launch of the airline’s stimulus package at the MAS training
academy in Petaling Jaya yesterday

PETALING JAYA: Malaysia Airlines has announced special travel plans for its customers who fly domestic and international destinations to help them weather the challenging economic situation.

Under the airline’s “MHFlex, 1+1” deal, customers who buy an adult economy class ticket will be able to get another one free while the “Kids Fly Free” package allows a child below 12 to fly for free with every purchase of two adult economy class tickets.

“In times of crisis, products must be tailored to suit the wallets of consumers. People still intend to fly even during the economic crisis. We just have to provide them with options,” MAS managing director and CEO Datuk Seri Idris Jala said when unveiling nine deals under the airline’s stimulus package here yesterday.

The packages, available until the end of the year, cater to travellers in the first, business and economy classes.

Other deals includes the “Economy +” package which allows travellers to enjoy business class privileges while paying for economy class tickets.

For more information, visit the MAS website at www.malaysiaairlines.com.

Malaysia Airlines plans airline buy-report


KUALA LUMPUR, April 16 (Reuters) - Malaysia Airlines (MASM.KL) (MAS) is looking at an airline purchase as it has a cash surplus, a local newspaper said on Thursday, citing a top company official.

"People always ask why we keep so much cash. We are positioning ourselves so that when the chance comes, we will be ready to grab it," MAS Managing Director Idris Jala told the Star newspaper.

"In the next two or three years, if the economic downturn persists, we won't even have to go looking. Opportunity will present itself to us."

The company had 3.57 billion ringgit ($990.3 million) in cash as of Dec. 31, the paper said.

A call to MAS was not answered immediately.

MAS also confirmed there were no more discussions with Australia's Qantas Airways Ltd (QAN.AX) about a maintenance venture after a memorandum of understanding expired recently, the paper said.

The paper said MAS was targeting 700 million ringgit of cost cuts this year. ($1=3.605 Malaysian Ringgit) (Reporting by Varsha Tickoo; Editing by Dhara Ranasinghe)

AirAsia said planning big expansion in region
Published: 2009/04/21

BANGKOK: Low-cost carrier AirAsia (5099) is making huge expansion in Asia this year, flying to at least six more cities in India, Colombo in Sri Lanka and Taipei from either Kuala Lumpur or Bangkok.

According to industry sources, the airline is expected to start the Kuala Lumpur-Taipei route in June and Kuala Lumpur-Colombo sector in August.

"More destinations will be added, both in India and China, once new planes arrive. There will be new destinations from both Kuala Lumpur and Bangkok," the sources said.

Thai AirAsia chief executive officer Tassapon Bijleveld confirmed recently that Thailand's popular resort island Phuket would become the airline's second hub in the Kingdom after Bangkok.
He, however, declined to disclose the planned routes although it is believed that Hong Kong would be the first destination.

From September onwards, AirAsia, voted the best low-cost carrier by London-based consultancy group, Skytrax, is expected to fly to Chennai and Hyderabad from Bangkok once Thai AirAsia receives more new Airbus from its European maker.

The sources said AirAsia's long-haul airline, AirAsia X, is likely to fly to several more routes from Kuala Lumpur to India, namely its capital New Delhi, business hub Mumbai, IT City Bangalore, Amritsar in Punjab and Kochi, the second biggest city in Kerala.

The airline, which has advertised for station managers in the seven Indian cities, currently flies from Kuala Lumpur to Tamil Nadu's Tiruchirappalli City since last December.

Last week, AirAsia X launched the Kuala Lumpur-Tianjin flight and is planning to fly to Chengdu and Xian soon. Other cities in China served by AirAsia include Macau, Hong Kong, Guangzhou, Shenzhen, Hangzhou, Guilin and Haikou. - Bernama

by Savvas Garozis
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Daily flights between KL-Stansted from July
Wednesday April 22, 2009

PETALING JAYA: From July 1, AirAsia X will have daily flights between London Stansted and Kuala Lumpur.

AirAsia X, which now has such flights five times a week, said the daily service was due to high passenger demand.

In a statement released yesterday, the airline said it was offering a one-way fare from as low as RM499 through online booking beginning yesterday to tomorrow at www.airasia.com.

It is for the travel period beginning July 3 to Jan 31 next year.

The statement said the KL-Stansted flight was quickly turning KL into a regional hub connecting three continents, with Australians flying into the Malaysian capital and connecting on AirAsia X to London.

“From KL, people are choosing from over 122 AirAsia routes,” said AirAsia X chief executive officer Azran Osman-Rani.

“We are offering an affordable and alternative version of the ‘Kangaroo Route’ all the way from London via KL to Melbourne, Perth and the Gold Coast in Australia.”

AirAsia X sets Taipei date
Published: 2009/04/24

AIRASIA X, the long-haul affiliate of budget carrier AirAsia Bhd (5099), will start flying the Kuala Lumpur-Taipei route on July 1.

It will begin with five direct flights a week.

"Taipei is the final piece of the jigsaw puzzle to our oriental network strategy. Our ultra-low fares will entice the Taiwanese public and Malaysians who reside, work and study in Taiwan to fly home to connect with their families," AirAsia regional head of commercial Kathleen Tan said in a statement issued yesterday in Kuala Lumpur.

She said the low fares will help stimulate new travel demand and boost tourism in both countries.
"AirAsia has a strong domestic high frequency network that enables Taiwanese to visit domestic locations like Penang, Langkawi, Sabah, Sarawak. We also provide connectivity to other destinations such as Bali, Phuket, Australia and London," Tan said.

AirAsia held a media briefing in Taipei yesterday that was attended by Malaysian Friendship and Trade Centre for Taiwan president Datuk Abdullah Mohd Salleh and the director of Tourism Malaysia's office in Taipei, Muhamad Nasir Pahmi.

Some of Taipei's attractions are its National Museum of History, the Red Pavilion Theater and the Taipei Financial Centre.

"With the large number of Malaysians of Chinese origin, we believe that Taiwanese visitors will find themselves on familiar ground in Malaysia.

Malaysian tourists will also feel at home in Taipei and, for Muslim visitors, finding halal restaurants will not be a very big problem," Abdullah said.

Taiwanese visitors to Malaysia must apply for a social visit visa that costs T$240, which is valid for two months.

The one-way fare to Taipei is from RM101, excluding airport tax and administration fees, and is applicable for online booking only.

The booking period is from today until May 3 for travel between July 1 this year and January 31 next year.

MASkargo is best air cargo carrier in Asia
Published: 2009/04/25

MALAYSIA Airlines Cargo Sdn Bhd (MASkargo) won the Best Air Cargo Carrier in Asia title at the 23rd Annual Asian Freight and Supply Chain Awards 2009 (AFSCA) in Hong Kong on Friday.

The national air cargo carrier was nominated for Best Air Cargo Carrier (Asia), Best Air Cargo Terminal (Asia) and Best Green Service Provider (Airline) titles, said MASkargo in a statement today.

The award was received by its general manager of revenue management, Jamaluddin Ismail, who was accompanied by the MASkargo team.

"The is a testament of the efficiency and world-class handling service provided by MASkargo," he said. -- Bernama

MAS offers flight changes at no charge
Wednesday April 29, 2009

PETALING JAYA: Malaysia Airlines passengers who have booked to travel to Los Angeles or New York can make changes to their flights at no charge from now until the end of May.

The offer from the airline came in the wake of reported cases of swine flu in several places in the United States including California, New York and Texas, and in Mexico and Canada.

MAS director of operations Datuk Tajuden Abu Bakar said the airline would be assisting the Health Ministry in expediting the screening process of its passengers arriving from the United States, particularly for those with connecting flights.

The screening is being carried out by the ministry as a precaution against the swine flu outbreak and passengers with obvious symptoms will be quarantined.

“We will do our best to minimise this although the exercise is expected to slow down the incoming flow of traffic before the immigration lane. Currently, no travel restrictions have been issued.

“At this stage, MAS has not seen a drop in travel demand and we are still operating normally,” Tajuden said in a statement here yesterday.

The airline, he said, was also in close and constant touch with officials from Malaysia Airports Bhd, the ministry and other airport operators to discuss handling procedures and on how best to manage the issue.

“We will continue to monitor the situation and make adjustments as necessary,” he added.

AirAsia And Scicom Establish World-class Contact Centre
April 28

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All systems go: Fernandes and AirAsia Bhd chairman Datuk Aziz Bakar (right)
launching Asian Contact Centres while Ariyanayakam (centre) and Scicom
director Harry Menon (second from left) look on yesterday. TheStar

KUALA LUMPUR, April 28 (Bernama) -- AirAsia Bhd together with Scicom (MSC) Bhd have established Asian Contact Centre Sdn Bhd to serve the low-cost carrier's customers from around the world.

AirAsia's group chief executive officer Datuk Seri Tony Fernandes said the airline was looking to provide better quality services through the world-class contact centre set up under the collaboration.

"We are looking at solutions rather than avoiding complaints. The establishment of the contact centre, we believe, is another step towards providing quality services," he told reporters at the launch of Asian Contact Centre here today.

"For the past two weeks, I have not received any complaint and services are improving," he said.

Also present at the launch was Scicom's chief executive officer Leo Ariyanayakam.

The contact centre, an equal-partnership joint venture company that started operations on Feb 16 this year, is aimed at meeting customers' expectations and ensure that their booking needs and enquiries are handled efficiently.

Currently, it serves AirAsia's customers from Malaysia, Singapore, Thailand, Indonesia, China, Australia and the United Kingdom.

Operations will soon expand to serve customers in Japan, South Korea, the Philippines, the Middle East and India, AirAsia said.

Asked about the impact of the Thai political crisis on the airline, Fernandes said business was still strong and AirAsia's load factor to Bangkok was 74 percent yesterday.

"I think Southeast Asia is very resilient. There are a lot of opportunities and demand. People still want to fly. The other Thai destinations are also unaffected, and Thailand is an unique place," he said.

-- BERNAMA

AirAsia doesn’t expect ops to be affected by flu

http://biz.thestar.com.my/archives/2009/4/28/business/p4-airasiapi.JPG

From left: AirAsia group CEO Datuk Seri Tony Fernandes, Maybank executive
vice president, head, cards & payments, consumer banking Ashraf Ali Kadir
and American Express head of global network services, Japan, Asia Pacific &
Australia senior vice president Kula Kulendran at the launch.

KUALA LUMPUR: AirAsia Bhd does not expect its operations to be affected by the outbreak of the deadly swine flu, said group chief executive officer Datuk Seri Tony Fernandes.

“These things happen, we’ve been through them, I think globally, everyone is prepared for pandemics like these,” he said after the launch of a new service that will see the acceptance of American Express cards for payment of AirAsia flight tickets here yesterday.

Fernandes said he was “gloomy” about the economy but was “not too worried” about the swine flu.

“We (AirAsia) will still grow, expansion plans are still on track.

“If anything, we may see a shift towards short-haul travel in this region,” he said, adding that the low-cost carrier saw a 21% year-on-year increase in its passenger volume for the first quarter of this year, when it flew 3.1 million guests.

“We are confident that this number will grow now that American Express cardmembers can easily book seats with us,” he said.

AirAsia aims to grow its corporate segment, currently comprising about 5% of customer base via the new partnership, “but we don’t have any specific targets,” he added.

Since the service commenced on April 2, more than 12,000 transactions have been conducted.

Malayan Banking Bhd acquired the American Express business in Malaysia in 2006.

Since then, card spending by members has grown more than 90%, according to Kula Kulendran, American Express senior vice-president and head of global network services for Japan, Asia Pacific and Australia.

Boeing Unveils Performance, Comfort Changes to Next-Generation 737s
April 29, 2009 11:53 AM
http://bernama.com.my/bernama/v5/newsbusiness.php?id=407662

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Passengers boarding a Boeing Next-Generation 737 with the new 737 Boeing
Sky Interior will instantly see and feel the difference. Soft blue cove lighting,
curving architecture and larger window reveals offer a sense of spaciousness
in the cabin and comfort for airline passengers. Pic courtesy of Boeing
Commercial Airplanes

KUALA LUMPUR, April 29 (Bernama) -- Boeing announced that seven airlines will be the first to incorporate the new, spacious 737 Boeing Sky Interior starting in late 2010, which features soft, blue-sky-like lighting overhead.

The airlines are FlyDubai (Dubai, United Arab Emirates), Continental Airlines (Houston), Norwegian Air Shuttle ASA (Fornebu, Norway), Malaysia Airlines (Kuala Lumpur, Malaysia), TUI Travel PLC (London), GOL Airlines (Sao Paulo, Brazil) and Lion Air (Jakarta, Indonesia).

In a statement from Seattle Tuesday, Boeing said the 787 Style in the World's Leading Single-Aisle Airplane Drawing from years of research was used to design the interior for the 787 Dreamliner.

The 737 Boeing Sky Interior features new, 787-style modern sculpted sidewalls and window reveals that draw passengers' eyes to the airplane's windows, giving passengers a greater connection to the flying experience, it said.

On a more practical note, the sidewall design integrates the air vent so that before-flight security checks go more quickly for maintenance staff.

The new design offers larger, pivoting overhead stowage bins that add to the openness of the cabin. The bins give more passengers room to store a carry-on roll-aboard near their own seat, adding both extra convenience and extra legroom.

Boeing said it had redesigned reading-light switches so passengers can find them more easily and avoid accidentally pressing the flight-attendant call button.

Speakers were integrated into each row's passenger-service unit to improve sound and clarity of public address operations, while the new integrated air vent and improved noise-dampening materials reduce overall cabin noise.

Boeing said changes to the Next-Generation 737 were more than cosmetic as the firm was targeting a two percent reduction in fuel consumption by 2011 through a combination of airframe and engine improvements.

Airplane structural improvements would reduce drag on the airplane, reducing fuel use by about one percent.

Boeing's engine partner, CFM, is contributing the other one percent fuel savings through hardware changes to its engine.

Continental Airlines would make a Next-Generation 737-800 available to Boeing to flight test the performance improvements.

-- BERNAMA

Boeing Next-Generation 737
Boeing 737 Sky Interior
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MAS issues operating guidelines on handling outbreak
Thursday April 30, 2009

PETALING JAYA: Malaysia Airlines (MAS) has issued standard operating procedures to all its staff and crew members on the handling of passengers in the wake of the swine flu outbreak.

The measures include the close monitoring of passengers for any signs of illness, maintaining high standards of hygiene and special handling of people suspected of being infected with the virus.

MAS general manager for corporate safety, security, health and environment Dr Ooi Teong Siew said the procedures, which were similar to those implemented during the SARS outbreak in 2005, were based on World Health Organisation and the International Air Transport Asso*ciation guidelines.

“The procedures have been issued to our crew members, airport operations staff, maintenance and cleaning personnel and all workers directly involved in the handling of passengers, cargo and baggage.

“Our staff have also been provided with information on swine flu in our efforts to enhance their general awareness of hygiene to minimise the risk of infection,” he said.

Dr Ooi said the measures also included the provision of passenger services and sufficient health safety equipment on board flights, public hygiene and sanitation in which the aircraft would be thoroughly cleaned and disinfected upon disembarkation, and maintaining high levels of cleanliness during in-flight service and ground service.

He said MAS would continue to coordinate with the Health Ministry on the preventive guidelines.

AirAsia unveils new promotion campaign
Published: 2009/04/30

LOW-COST carrier AirAsia Bhd has launched a “No Bull! No Fuel Surcharge” campaign, which assures passengers flying on AirAsia and AirAsia X that they will only have to pay for the cost of their fares, airport taxes and administration fees.

The promotion is available from all its hubs in Kuala Lumpur, Jakarta, Bangkok, Kota Kinabalu, Bandung, Johor Baru and Bali. Prices start as low as RM25 one-way to Chiang Mai, Phuket, Krabi, Ho Chi Minh, Medan, Padang and Surabaya, and RM45 one-way to Hanoi, Bali, Solo, Manado, Makassar and Yogyakarta.

Guests can book their seats to all AirAsia international destinations until May 10 2009 for travel between July 1 and November 30 2009 via www.airasia.com or mobile.airasia.com.

MAS puts in place precautionary measures
Written by The Edge Financial Daily
Wednesday, 29 April 2009 23:54

KUALA LUMPUR: Malaysia Airlines has put in place precautionary measures amid the swine flu outbreak, said its general manager for corporate safety, security, health and environment, Captain Dr Ooi Teong Siew.

In a statement today, he said Malaysia Airlines was assisting the Ministry of Health to expedite the screening of its passengers arriving from the United States and other affected countries.

Ooi said the screening was being carried out by the ministry and passengers with obvious symptoms would be quarantined.

He said the airline had activated operating procedures for pandemic flu based on WHO and IATA guidelines.

Ooi said the procedures had been issued to Malaysia Airlines crew members, airport operations staff, maintenance and cleaning personnel and all other staff directly involved in the handling of passengers, cargo and baggage.

"In particular, Malaysia Airlines’ primary measures relate to special handling of suspects, provision of passenger services, public hygiene and sanitation, maintaining high levels of cleanliness during inflight service and ground service provision.

"These measures include close monitoring of passengers for any signs of illness, provision of sufficient inventory of health safety equipment onboard and thorough cleaning and disinfection of the aircraft upon passenger disembarkation. This is similar to that implemented during the SARS outbreak," he said.

Ooi also said Malaysia Airlines staff had also been provided with information on swine flu in efforts to heighten general awareness of hygiene to minimise the risk of infection.

"At this stage, there are no travel restrictions in place and Malaysia Airlines is still operating normally. However, passengers who have booked to travel to Los Angeles or New York can make changes to their flights at no charge from now until the end of May," he said.

The Red Lady on board, AirAsia
by JasonDGreat
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AirAsia plans to dominate Asean before taking on India, China
Published: 2009/05/04

AIRASIA Bhd (5099) said it has no plans to form joint ventures in India and China like in Thailand and Indonesia, despite its desire to aggressively expand routes into the world's two most populous countries.

"We wouldn't want to tie up (with partners) there ... not for a long time because both markets are huge," AirAsia group chief executive officer Datuk Seri Tony Fernandes told Business Times.

He said it was important for AirAsia to become a strong airline in Asean before taking on markets such as India and China, which already have many low-cost carriers (LCCs).

As such, it is eyeing to establish affiliate airlines in Vietnam and the Philippines.
AirAsia and its long-haul sister airline AirAsia X currently fly to six destinations in China and one in India.

"Maybe the next generation of AirAsia leaders will look into China and India. (For now) my job is to deliver a strong (presence in) Asean," he said.

"The plan is to be strong in the local market, then Asean, followed by China and India. But we are not strong in Asean yet."

Fernandes wants AirAsia to become a dominant airline in Asean within three years, with the help of its associate airlines in Thailand and Indonesia.

"For us to be strong in Asean or to become a single airline, I think a lot also hinges on political will."

Citing Europe's largest budget airline Ryanair as an example, Fernandes pointed out that it was able to open a base in any of the European countries.

To allow airlines to compete on a level playing field here, the aviation industry in Asean must be liberalised as well as that of the individual countries, he said.

"Even if it means (the entry of) a new LCC, so be it. More competition is better for the consumers," he added.

Akamai power for AirAsia's website
Published: 2009/05/05

AIRASIA Bhd (5099) has signed a 10-year agreement with Akamai Technologies Inc to boost the airline's online performance and reliability.

Under the agreement, AirAsia's website, www.airasia.com, will be powered by Akamai's dynamic site acceleration solution that will deliver website performance up to five times faster than the original web infrastructure.

In a statement in Kuala Lumpur, the airline said by leveraging on Akamai's globally-distributed delivery network of 42,000 secure servers equipped with specialised software and deployed in 70 countries, AirAsia will provide a premium online experience for customers.

Akamai is the global leader in powering rich media, dynamic transactions and enterprise applications online.
AirAsia group chief executive officer, Datuk Seri Tony Fernandes said through this strategic partnership with Akamai, AirAsia will also be able to sustain its momentum in enhancing market share. - Bernama

http://www.geocities.com/aseantraveler/baliperst.jpgAir-Asia To Fly Daily From Bali To Perth
Tuesday, 05 May, 2009 | 18:35 WIB

TEMPO Interactive, Jakarta: Air Asia a Malaysian-based carrier announced new route from Bali to Perth starting July this year. President Director of Air Asia Indonesia Dharmadi said on Tuesday (5/5) the airline to operate two-way daily flights as short range flights increased during Q1 this year.

Culture and Tourism Ministry data showed Australian tourists in Indonesia jumped around 30 percent in January to MArch this year, while those who visited Bali increased about 25 percent. The ministry did not provide the actual figure, saying there were 314 thousand Australian tourist in Bali in 2007.

The airline flew 2.5 million passengers last year and targets to fly 3.5 – 4 million of passengers this year.

WAHYUDIN FAHMI

AirAsia Indonesia to service Bali-Perth
Published: 2009/05/06

LOW-COST carrier AirAsia Bhd will start operating daily flights between Perth in Australia and Bali in Indonesia through affiliate AirAsia Indonesia.

Seats for the route are now available, starting from A$139 (RM361) for one-way travel.

The promotion booking is from May 5 to 10 for travel between July 17 this year and January 31 next year.

AirAsia will use the A320. The Bali-Perth route is the fifth international service from its Bali hub, besides Kuala Lumpur, Johor Baru, Bangkok and Singapore.

Abdullah now adviser to MAS


KUALA LUMPUR: - Former Malaysian premier Abdullah Badawi has been appointed as an adviser to national carrier Malaysia Airlines (MAS), a month after stepping down from office, the airline said yesterday.
'The board welcomes (Abdullah), with his wide experience and extensive contacts, to this non-executive appointment and looks forward to a beneficial association with him,' MAS chairman Munir Majid said in a statement.

Tun Abdullah, forced to bow out after a disastrous performance in the general election a year ago, stepped down last month and was succeeded by his deputy Najib Razak.

Former prime ministers are traditionally given advisory positions in government-linked companies in Malaysia.

Mr Abdullah's predecessor, Tun Dr Mahathir Mohamad, was made an adviser to national oil company Petronas and carmaker Proton after stepping down in 2003.

Mr Abdullah is also expected to work on Islamic think-tanks and help build closer relations with countries in the Middle East, an official in the new premier's office said.

AirAsia to fly more routes to Singapore
By Presenna NambiarPublished: 2009/05/08

BUDGET airline AirAsia Bhd (5099) will fly to Singapore from five more points in Malaysia soon, its group chief executive officer Datuk Seri Tony Fernandes said.

It will announce the new points in the next few weeks.

Yesterday, AirAsia launched its Singapore-Langkawi service, marking its third route to the Lion City from the country. The other points are Kuala Lumpur and Kota Kinabalu.

The new service will start on June 1. On that day, it will also begin operating flights between Singapore and Penang, its fourth point in the country to Singapore. In addition, it will increase its Kuala Lumpur-Singapore flights to eight times daily from seven.
Fernandes said the airline was also planning to obtain rights to fly from Langkawi to international destinations such as Bangkok, Jakarta and Hong Kong.

Transport Minister Datuk Seri Ong Tee Keat, who was present at the launch in Langkawi yesterday, said his ministry was willing to grant AirAsia the traffic rights to these international destinations.

"We have no qualms about the idea of giving AirAsia international routes out of Langkawi, but we have to make sure that once you get them you must sustain (the flights) with full commitment," Ong said.

To mark the start of the Langkawi-Singapore route, AirAsia is offering free rooms at its partner hotels in Langkawi through holiday division GoHoliday.

This special deal is in addition to the airline's current promotion of RM1/S$1 for seats on the route. The promotional airfare and free hotel room for first night are available on a "first come, first serve" basis and subject to availability.

"It takes more than low fares to bring in tourists. The airport tax needs to be low, the hotels need to be reasonable. So this time around, by getting the hotels on board, we have managed to give people a really good deal," Fernandes said.

"For example, we are now offering zero fares, but the airport tax at the Langkawi International Airport is RM51. How do you promote the destination?" he pointed out.

AirAsia opened bookings for its Langkawi-Singapore flights three days ago and 50 per cent of seats next month has been sold.

Fernandes said AirAsia will be spending some S$200,000 (RM478,000) to advertise the new route in the Singapore media.

Since its inception, AirAsia has flown 2.5 million passengers to Langkawi. It expects to fly some 750,000 passengers to Langkawi this year.

On Malacca Chief Minister Datuk Seri Mohd Ali Rustam's statement that he had no objections to AirAsia's proposal to take the Batu Berendam Airport in the state private, Ong said his ministry had not received any proposal as yet.

"We have not received such a proposal. All airports should be under the purview of Malaysia Airports Holdings Bhd. This is a federal matter and not a state one," Ong said.

A million free seats on AirAsia
Monday May 11, 2009

PETALING JAYA: Travellers have more reason to smile as low-cost airline AirAsia is giving away a million free seats starting today.

The airline’s regional commercial head Kathleen Tan said the promotion was initiated to honour passengers for supporting AirAsia throughout the years.

“Winning the recent Skytrax’s Best Low-Cost Airline 2009 award would not have been possible without our guests rating us as the best. This is our way of saying thank you,” she said in a statement yesterday.

Tan added that the airline will also be introducing an “All-In-Fare” policy for the Malaysian market whereby prices stated are the nett amounts to be paid.

Those interested in enjoying the free seats can book their tickets from today until Friday for flights between Jan 5 to April 30 next year. Customers only pay for airport tax and administration fee. For more information, log on to www.airasia.com or mobile.airasia.com.

AirAsia wins award from Airbus
Published: 2009/05/08

AIRASIA Bhd has received the A320 Family Operational Excellence Award from Airbus in recognition of its service record with the single aisle aircraft type.

In a statement in Kuala Lumpur today, AirAsia said the award was presented in Paris this week during Airbus' bi-annual symposium of all operators of the A320 Family worldwide.

The selection criteria for the awards is based on data covering two years of operation and takes into account the number of aircraft in the fleet, daily utilisation rate, technical reliability and the number of delays caused to flights for operational reasons.

"While the world A320 Family fleet continues to record outstanding operational results, these awards recognise exceptional technical performance at individual operators," said Charles Champion, Executive Vice President Customer Services.

"AirAsia has established an extremely efficient operation with its Airbus aircraft, including exceptionally high utilisation and an outstanding dispatch reliability," Champion added.

AirAsia Group CEO, Dato’ Sri Tony Fernandes said the award from Airbus accentuated the constant efforts of the airline, in striving for better performance and greater flying experience for customers.

AirAsia is one of the largest customers for the Airbus A320 Family, having placed firm orders for 175 aircraft, of which 59 have already been delivered.

All A320s ordered by AirAsia are in 180-seat configuration and powered by CFM International CFM56 engines.

AirAsia in Malaysia now operates a fully Airbus A320 fleet and is in the process of replacing its existing Boeing 737’s in Indonesia and Thailand with the brand new A320. - Bernama

Singapore Amex Card Holders Can Now Purchase AirAsia Tickets
May 11 2009

SINGAPORE, May 11 (Bernama) -- From Monday onwards, American Express card members in Singapore can use their card to purchase the low-cost carrier AirAsia's tickets to enjoy its popular low fares.

AirAsia said the airline now accepted American Express cards for bookings both online and through its call centres and sales counters here.

The two companies announced here their partnership to offer consumer and corporate travellers more choices and value.

The announcement of the alliance was made by American Express Regional Vice President for Merchant Services, Peter Kapoor, and AirAsia Commercial Regional Head Kathleen Tan.

In line with the launch, American Express card members can enjoy flights from Singapore to Kuala Lumpur, Pulau Pinang, Langkawi and Kuching at a price as low as S$40, and S$68 for Bangkok, which are valid for bookings made from May 11 to May 17, and for travel from this June 1 to Jan 31 next year.

Malaysian holders of the card have benefited from similar arrangement when American Express and AirAsia announced their collaboration in Kuala Lumpur last month.

-- BERNAMA

MAS offers enticing deals at Dubai travel mart
Published: 2009/05/05

CUSTOMERS can look forward to competitive fares and fantastic travel packages offered by Malaysia Airlines in conjunction with the Arabian Travel Market (ATM) 2009 which began in Dubai today.

"As part of Malaysia Airlines' customer value proposition, we're intent on offering an array of packages to meet the needs and desire of different types of travellers," said airline regional manager for Middle East and Africa, Merina Abu Tahir.

Among others, the Malaysian national carrier is offering all-inclusive airfares with prices starting from 2,945 dirhams to destinations in Malaysia during the summer holiday period.

Travel enthusiasts can also look forward to the recently-launched Economy Plus of MAS Stimulus Package that allows passengers to enjoy Business Class privileges and comfort with an Economy Class ticket from Dubai to Malaysia.

MASholidays, the travel arm of Malaysia Airlines, is also getting into the act with packages catering to the different needs of travellers.

Those looking for relaxing holidays can opt for special spa packages while the adventure-inclined can go for scuba diving packages.

Honeymooners are also in for a treat with special packages tailored for them while property investment packages will pique the interest of people keen on making Malaysia their second home.

"It's really the best time to travel now as we have something for everyone. For those who prefer tour packages, we're offering our travel agents the best airfare deals for them to package into value-for-money packages," said Merina.

The airline currently operates daily flights between Dubai and Kuala Lumpur -- non-stop to Kuala Lumpur (five times a week) and via Karachi (twice a week).

It also offers thrice-weekly flights between Dubai and Beirut, four weekly flights between Jeddah and Kuala Lumpur as well as two weekly flights between Istanbul and Kuala Lumpur via Dubai.

During the summer season, Malaysia Airlines will operate twice- weekly non-stop flights between Kuwait and Kuala Lumpur. A total of 18 flights will be offered between June 18 and Aug 18, 2009. -- BERNAMA

MAS sees 30pc rise in domestic bookings
Published: 2009/05/12

MALAYSIA Airlines (MAS) has seen a 30 per cent increase in domestic bookings since the launch of its stimulus packages last month when compared to last year's bookings.

Its managing director and chief executive officer, Datuk Seri Idris Jala, said the stimulus packages have received good response, attracting many customers.

"Our forward bookings in domestic bookings are better than last year by 30 per cent," he told reporters after the opening of MAS' one-stop ticket centre in Petaling Jaya today.

The latest ticket centre at the Skypark Subang Terminal was opened by Tourism Minister Datuk Dr Ng Yen Yen. "We have also seen some improvements in our forward booking profile for Asean, which is better than last year by around 10 per cent," Idris said.

He said customers could log on to the MAS website www.malaysiaairlines.com for more information on the stimulus packages.

On the impact of the H1N1 flu outbreak on the airline, Idris said: "We have not seen any direct impact of the Influenza A so far. I think we are a lot more prepared globally on how to deal with this."

On the ticket centre, MAS chairman Tan Sri Munir Majid said the development of ticket offices was part of the national carrier's Business Transformation Plan which focused on making the most of resources to serve customers and partners better.

"The ticket office is an important place to meet and serve our customers, whether they are individuals or travel agents," he said.

"Although we officially opened today, the system has been up and running since a month ago. As of May 5, we have closed over 1,442 transactions, served over 600 customers and brought in sales worth RM321,000," he added.

Munir said the airline planned to place six Internet booking facility kiosks at Skypark, which are expected to be operational in October this year.

He said these would enable flight tickets to be purchased as early at 6.30am or as late as midnight, similar to the automated teller machines.

MAS has three other ticketing offices at KL Sentral, Putrajaya and the main terminal building of the Kuala Lumpur International Airport.

Meanwhile, Ng said a total of 20 million tourists were targeted to arrive this year compared to 22 million last year.

"The tourist arrival target has been reduced by eight per cent. It is a reasonable target in view of the current global economic situation. It is also an achievable number," she said. -- Bernama

MAS strives to keep fares competitive
Wednesday May 13, 2009

PETALING JAYA: Three passengers who travelled on first or business class on Malaysia Airlines (MAS) got their air fares reduced after they showed that they had obtained lower prices on another carrier. Two travelled from Kuala Lumpur to London while the third person flew from KL to New York, said MAS managing director Datuk Seri Idris Jala.

They got the discounts under Pre-mium Match, one of nine deals under the MAS stimulus package launched in mid-April, that offers travellers the same price as another carrier should the MAS fare be higher.

“This shows that our air fare is competitive,” Jala told reporters after Tourism Minister Datuk Seri Dr Ng Yen Yen opened MAS’ one-stop ticket centre at Skypark Subang Terminal yesterday.

He also challenged other MAS travellers to come forward with evidence of a cheaper air fare to enjoy such benefits.

Premium Match is for business and first class travellers on Asean and international routes with the flight journey lasting more than three hours. The deal is valid for travel from now until Aug 15.

Jala also said that after the MAS stimulus package was introduced, the airline saw a 30% increase in its domestic booking compared to last year. There was also an increase of 10% in Asean destinations, he said.

He added 15% of Malaysian passengers bought their tickets online while the rest preferred counter purchases.

MAS chairman Tan Sri Dr Munir Majid said the one-stop ticket centre at Skypark Subang was to tap the growing commercial and residential areas of Subang, Shah Alam, Damansara, Kelana Jaya and others.

As of May 5, Dr Munir said this one-stop sales centre had done over 1,442 transactions, served over 600 customers and brought in sales worth RM321,000. He said the airline planned to place six Internet booking facility kiosks at Skypark by October.

Meanwhile, Dr Ng said that besides tour packages tailored for the aged, she would also be checking to ensure there were sufficient toilets in the country in order to attract foreign senior citizens.

In a recent meeting with the state tourism councils, Dr Ng said she had asked for states to submit a report on the audit of toilet facilities, specifically on the quality and numbers.

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AirAsia presents the Saturdays

Sizzling straight from the UK, AirAsia brings you the Saturdays. Last we saw them, they were grooving the set of our London launch way back in March with their hot singles. Heck, even our London Launch video which is up on our Youtube channel featured their single, Up! And since last week, you might have noticed the Hitz FM crew blasting the Saturdays all over the air waves. Their hits such as Up!, If This is Love, and Just Can't Get Enough.

The Saturdays is a pop girl group formed in Britain in 2007, comprising Irish singer-songwriter and guitarist Una Healy, and British singers Mollie King, Frankie Sandford, Vanessa White and Rochelle Wiseman. AirAsia will be actually bringing them to Malaysia for a one stop showcase and a night to remember. Where better to catch the next best pop act than in our own backyard if you're in Malaysia.

Catch the Saturdays live in Zouk KL on 12 May 2009 for absolutely FREE. Find out more when you try out our new Have You Flown AirAsia Lately experience. Just log on for free caller ring tones and wall paper download of the Saturdays.

British girl group to fly in on regional tour

KUALA LUMPUR: The latest British all-girl music sensation – The Saturdays – will be in town on their regional tour this July and August.

Air Asia will be the official arline taking Una Healy, Rochelle Wiseman, Vanessa White, Mollie King and Frankie Stadford on their tour in partnership with the world’s biggest record company Universal Music.

South-east Asia will be the group’s first tour destination covering Kuala Lumpur, Singapore, Manila and later to Hong Kong.

AirAsia group CEO Datuk Seri Tony Fernandes said the partnership was also to promote the airline’s brand campaign ‘Have you flown AirAsia lately?’

“Music is in our blood. This partnership will bring this fast-rising girl band to AirAsia’s many destinations.

“We will be drumming up the excitement in the music scene of many cities that we fly to, particularly those in Asean,” he told a press conference before a showcase by The Saturdays at a club here yesterday.

It was not the first time AirAsia and The Saturdays have worked together.

The band performed a mini-showcase at the launch of AirAsia X’s inaugural flight to Stansted, London on March 11.

Formed in Britain in 2007, The Saturdays released their debut album Chasing Lights about three weeks ago in Malaysia, with four hit singles, Up, If This is Love, Issues, and Just Can’t Get Enough.

Fernandes said that while the airline was fully committed to helping to break the band into the Asian market, they would not rule out bringing other acts into the region.

For more information, log on to www.haveyouflownairasialately.com.

MAS, French firm in overhaul facility deal
By Azlan Abu BakarPublished: 2009/05/14

http://www.btimes.com.my/articles/mro/pix_topright

MALAYSIA Airlines(3786) plans to tie up with a French partner to set up a maintenance facility for the Pratt & Whitney 100 (PW100) series engines in Malaysia.

Its unit, MAS Aerospace Engineering Sdn Bhd (MAE), has signed a memorandum of understanding (MOU) with French-based EADS SECA in Subang yesterday, to set up a joint-venture company

EADS SECA is a Pratt & Whitney designated aircraft engine repair and overhaul facility of the EADS Group.

Currently, there are only two PW100 series engine repair facilities in Asia, namely in Singapore and Australia.
"The new facility is positioned as a one-stop centre for engine, airframe and component support for PW100 series engines, and is expected to be operational by 2010," MAS executive director and chief financial officer Tengku Azmil Zahruddin said.

A study is being done to determine the cost of the new facility.

Speaking to reporters after the MOU signing ceremony in Subang yesterday, Tengku Azmil said at present, there are some 100 aircraft in the region equipped with the PW100 series engines.

"However, we expect the number of aircraft to double to 200 by 2012," he said.

MAE's immediate plan is to set up a PW127 engine maintenance and hot section inspection capability (HSI).

It will be extended to line maintenance support and on-site HSI through a mobile repair team, providing airlines with significant cost-savings.

Aircraft equipped with the PW100 series engines include ATR, Bombardier Dash 8 planes and Fokker 50s.

MAS currently has a fleet of nine ATRs, three for MASwings and six for Firefly. By year-end, both will each have seven ATR aircraft.

Malaysia now operates a fully Airbus A320 fleet
by michael_ong1974
http://www.flickr.com/photos/mikeong1974/3518554620/

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AirAsia X in no rush to buy A340s
By Presenna NambiarPublished: 2009/05/18

AIRASIA X (5099) is doubtful that it will be able to secure the remaining three A340-300s it wants to lease this year.

"We have some offers but we are not rushing it. We'll start with two (A340s) this year, and once London grows and we have more flights or open the second destination to Europe or even look at the US ... these are the possibilities," AirAsia X chief executive officer Azran Osman-Rani told Business Times.

He said it is important that that particular make of Airbuses is leased in order to keep costs low.

"The planes (A340s) are the exact same thing as our A330s. We can use the same pilots, everything is the same," Azran said.
AirAsia X expects to take delivery of three new A330s in September, November and December this year.

"We haven't fully finalised the destinations we will fly to with the new planes, but we definitely plan to double the number of destinations AirAsia X flies to, from four destinations at the start of the year, to 10 when we have eight planes," Azran said.

With the new planes, Azran said, he may add another Australian city, one or two more Chinese cities, one Indian city and maybe a Japanese city.

AirAsia X currently operates three A330s and one A340 and is expecting delivery of one more A340 in June.

Azran said his main aim in 2009 is to prove AirAsia X's mettle as a fully profitable entity.

"With our billion ringgit revenue and 10 to 20 per cent profit margin, we would be one of the Kuala Lumpur Composite Index's top 100 companies in terms of revenue and profit, and then, we can list on or sell off shares based on 2010 forward.

"Now, we have been showing profit since December, but it's not very exciting, is it?" Azran said.

He said such a feat would give AirAsia X the growth and size that could make for a very interesting initial public offering story.

"It hinges very much on getting the planes and starting the destinations. If we don't get it, we might only double our revenue, but we would like to quadruple it to one billion," Azran said.

On the Influenza A virus H1N1, he said, it has not affected the airline in the sense that people are still buying tickets and loads are steady.

AirAsia X has an average load factor of 77 per cent on its flights.

MASkargo to focus more charter market
By Presenna NambiarPublished: 2009/04/13

MASkargo hopes to redeploy its freighters for charter, at a time when demand for scheduled freighter space is low.

MALAYSIA Airlines Cargo Sdn Bhd (MASkargo) will concentrate more on the charter market for its freighters after freeing the planes from scheduled operations.

MASkargo has reduced 30 per cent of scheduled freighter capacity and 7 per cent of belly space in passenger planes.

According to the air cargo operator's website, it has seven freighters, one A300-600F, two B747-400F and four B747-200F.

MASkargo managing director Shahari Sulaiman said it hopes to redeploy its freighters for charter, at a time when demand for scheduled freighter space is low.

There is a B747 freighter in the Middle East which MASkargo hopes to put on charter to Lagos, Nigeria, by next month.

It also hopes to start charter operations at new destinations like Kuala Lumpur-Colombo where there is demand for the service owing to the high volume of perishable shipments out of Sri Lanka, including plants and tuna.

MASkargo has reduced its flights out of Pudong, Shanghai - its biggest station - to four a week from nine. It has also withdrawn some service from Taipei.

Its A300 freighter which used to service the Asean region is now in the Middle East charter business.

Six of MASkargo's 747 freighters are on a wet lease which expires in April next year.

Wet lease is an arrangement in which the lessor (airline) provides at least some crew members, maintenance and insurance.

Freight volume in Pudong has dropped by some 30 per cent.

"The station is still very important to us and we will definitely add capacity back on should there be a demand for it later," Shahari said.

He said China may be one of the first few economies to come out of the crisis, which will bolster intra-Asia trade.

"If they (China) come out of the crisis, they will certainly help pull us out of it because of the increase in cargo volume."

MAS has strong forward bookings
Thursday May 21, 2009
By B.K. SIDHU

SUBANG: Malaysia Airlines’ (MAS) forward bookings until year-end look “positive and strong’’ despite the turbulence in the aviation sector with the A (H1N1) flu creating chaos on top of a slowing global economy, according to senior general manager of sales Datuk Bernard Francis.

“Demand for flights did decline since November but we are in a transformation mode and therefore we quickly shifted our strategy to focus on the retail market by undertaking aggressive promotional activities to stimulate demand.

“In the current circumstances, innovation is key and being in the retail market has helped us maintain our load factors from June to December 2009 at the same levels as last year. Load factor was 68%-69% in the period last year,’’ he told StarBiz.

Currently, MAS’ load factor stands at 65% and the airline has not reduced capacity apart from the earlier announced 6%.

Francis said the airline had for a long time relied on group sales, which only contributed 30% to the group revenue, and reaching out to the retail market had proved to be fruitful.

MAS has organised several Malaysia International Travel Fairs (MITFs) in foreign countries and this has boosted forward bookings.

“We need to offer the best deals out there with no fuel surcharges to stimulate demand and our fares are truly competitive.

“Our MITFs are about anchoring on big results fast and, as our managing director Datuk Seri Idris Jala says, we need to do everything possible to survive,’’ he said.

MITFs have since been organised in the United States, Europe, Britain, China, India, Hong Kong and one is currently being held in Jakarta. Another is scheduled for Japan next week.

“We had good response for our recent fair in Britain. It not only brought the bookings but created greater awareness for the airline and Malaysia as a tourist destination,’’ he said.

MAS has seen a 4% rise in forward bookings for June to December 2009 compared with the same period last year for South Asia, 10% increase for the United States after capacity cuts, but 5% down for Australia due to intense competition.

“With our everyday low fares we have seen our bookings rising 3% (for the June-December period) from last year for Asean,’’ Francis said without revealing last year’s figures.

The global load factor has come to a standstill this month and not many want to predict which way it will go given the chaos in the aviation industry. Traditionally, the third quarter is the strongest for global airlines and if there is no uptrend, then it should be a gloomy summer ahead for most airlines.

“Last year the challenge was to manage the high fuel cost in addition to decline in demand for travel. This year the sector is hit by the H1N1 and no one can predict how long the flu will linger on,’’ Francis added.

More all-inclusive, low fares from MAS
Published: 2009/05/25

MALAYSIA Airlines (MAS) (3786) will be offering more all-inclusive low-fare bargains for domestic travel.

The fares, starting from RM48, will be available from June 25 to November 30.

Network and revenue management senior general manager Dr Amin Khan said the offer reflects MAS' commitment to providing customers with quality, affordable and convenient services.

Bookings can be made at www.malaysianairlines.com from today till June 7.
"With such competitive fares, customers can now consider travelling to destinations that previously did not fit their budget," he said in a statement.

For instance, fares from Kuala Lumpur to Cape Town, South Africa, will start as low as RM988, and to Los Angeles in the US or Buenos Aires in Argentina, from RM1,888, Amin added.

Travellers on the low fares will still enjoy the airline's premium service, such as snacks and meals on board, convenient schedules, punctual departure and 20kg baggage allowance.

Trips to Asean countries will start from RM198.

One-way fare from Kuala Lumpur to Singapore will start from RM98; Hong Kong, RM398; Seoul, RM388; and Chennai, RM398.

The fare to Perth will be offered from RM498; Tokyo, RM688; and London, RM888. - Bernama

Malaysia Airlines’ launches variety of deals to suit every budget


Malaysia Airlines’ has launched its Great-Deals-For-Everyone Sale, which provides a variety of special offers spanning over First, Business and Economy Class.
With a variety of deals to suit every type of budget, there’s never been a better time to enjoy Malaysia Airline’s awarding winning service at affordable prices.
Malaysia Airlines currently has a variety of deals on sale including:

Business Flies First – This deal allows passengers to fly first class but only pay business class prices from Sydney.
Mixed Class Travel – Passengers can fly Business class from Sydney/Melbourne/Brisbane/Adelaide/Perth to Kuala Lumpur and then fly first class from Kuala Lumpur to one of a select destination
Business Companion Fares – Passengers can enjoy discounted prices on Business Class Companion fares. Price quoted are per person when two or more passengers travel together on the same outbound flight. The deal allows for separate return travel.
Economy Plus for Business – This deal enables passengers to enjoy the perks of a Business Class seat and services for economy plus prices.
Adults Pay Child Fares – Adults can enjoy huge discounts on economy airfares with Malaysia’s adult pay child fare deal.
Asia-India Getaway – Passengers can enjoy special savings on economy travel to South East Asia and India
Malaysia on Sale- Passengers can enjoy special savings on economy travel to a number of Malaysia destinations including- Kuala Lumpur, Penang, Langkawi, Kuala Terengganu, Kuantan, Xuching, Kota Kinabalu, Tawau and Sandakan.
Great Malaysia Holidays – Until May 20, 2009 passengers can enjoy specials savings with Creative Holidays packages to Malaysia including flights and accommodation.
Malaysia Stopover Program - Stay two nights in select hotels in Kuala Lumpur from $120 per person and enjoy a third night free. This deal is available in conjunction with Malaysia Airlines long-haul flights only, the departure period is from 18 May – 30 November 2009.
Students’ 30kgs baggage allowance – All students travelling to and from Australia on Malaysian Airlines will be entitled to an additional 10kg of free baggage allowance over and above their normal 20 kg entitlement.
Being one of only six airlines worldwide officially rated 5-star by SKYTRAX this year, passengers will be sure to experience the true joy of flying with the World’s Best Cabin Staff (SKYTRAX 2009).
Malaysia Airlines operates 48 flights weekly from five cities and offers excellent connections to more than 100 destinations worldwide.

For more information on each deal including available destinations, travel dates, prices and booking please refer to www.malaysiaairlines.com, Reservations and Ticketing on 132 627 or through Travel Agents

MAS offers 28 weekly Penang-S'pore flights
Published: 2009/05/27

MALAYSIA Airlines customers will enjoy 28 weekly direct flights between Penang and Singapore, and vice versa beginning June 1.

"Offering passengers more flight options which give them greater travel flexibility and convenience is made possible with the expansion of the code share agreement between Malaysia Airlines, Singapore Airlines and Silk Air," the airline said in a statement today,

It said customers will be able to enjoy 151 code share flights offered by the three carriers from all five destinations in Malaysia: Kuala Lumpur, Penang, Lanagkawi, Kota Kinabalu and Kuching to Singapore.

Malaysia Airlines senior general manager, network and revenue management Dr Amin Khan said there are already 92 weekly flights from Kuala Lumpur, 10 from Langkawi, nine from Kota Kinabalu, and 12 weekly flights between Kuching and Singapore, he added.

Tickets for the code share flights for Penang to Singapore is available for purchase and the first flight will be on June 1.

Malaysia Airlines is offering a RM98 all-inclusive one-way fare for flights between Malaysia and Singapore. - Bernama

AirAsia scraps Bangkok-JB route
Published: 2009/05/28

BANGKOK: AirAsia is stopping its Bangkok-Johor Baru route beginning July this year, the second time it is taking such measures.

In an email to passengers who have booked flights from July onward, the budget carrier said AK5632 from Senai and the returning AK5633 would be cancelled.

In February 2008, AirAsia resumed its Bangkok-Johor Baru route with four flights a week, flying on Mondays, Wednesdays, Fridays and Sundays.

It had intended to be the first destination in Thailand from Johor Baru, targeting Johoreans, Singaporeans and those flying into the city from Sabah and Sarawak, but low load factor forced AsiaAsia to scrap the route.

AirAsia and its Thai subsidiary, Thai AirAsia, operate seven flights daily from Kuala Lumpur to Bangkok, as well as serving Krabi, Phuket and Chiang Mai, on top of the Penang-Bangkok route.

The Bangkok-Langkawi and Bangkok-Kota Kinabalu services were discontinued in 2007 due to low passenger load. -- Bernama

AirAsia mulls share sale to fund expansion
Published: 2009/05/29

AIRASIA Bhd, Southeast Asia’s largest low-cost airline, said it’s considering raising about RM500 million (US$143 million) to fund expansion in the Malaysian company’s biggest share sale since listing in 2004.

“We’re looking at it,” chief executive officer Datuk Seri Tony Fernandes said in an interview today. “If our growth requires us to raise more cash, then we’re not averse to it.”

AirAsia, which has ordered 175 Airbus SAS planes, may raise the money in a stock sale or a rights offer to shareholders, Fernandes said. The timing or the structure of the transaction hasn’t been decided, he said.

The airline’s shares have surged 50 per cent this year in Kuala Lumpur trading, providing currency to raise funds as debt markets wither in the financial crisis. Fernandes expects Airbus to deliver about 24 planes annually for the next three to four years as the airline adds routes to India and boosts flights to China.

“Raising debt would be much cheaper, but I don’t think companies have a lot of choice these days,” said Raymond Yap, an analyst at CIMB Investment Bank Bhd in Kuala Lumpur with an “outperform” rating on AirAsia. Yap issued a report earlier today saying AirAsia may be considering a rights issue.

The carrier had a fleet of 74 planes at the end of March 31, it said in a statement yesterday after reporting its highest quarterly profit since the final three months of 2007. AirAsia had 59 Airbus A320 aircraft and 15 Boeing Co. 737s.

Based on AirAsia’s profit-growth forecasts, a RM500 million share sale won’t necessarily dilute earnings, Fernandes said. The Sepang, Malaysia-based company had RM224 million of cash on its books at the end of March 31.

AirAsia today rose 4 per cent to RM1.30 at the 12:30 pm break on the local stock exchange, set for the highest close in more than a year. Malaysia’s benchmark Composite Index added 0.3 per cent.

AirAsia’s second-quarter passenger traffic is headed for a 21 per cent jump, matching last quarter’s increase as budget- conscious travelers look for cheaper air fares, Fernandes said.

“For the moment, things are rosy,” he said in a Bloomberg Television interview. The “second-quarter demand looks good.”

Profit at the airline climbed 26 per cent in the first quarter to RM203.2 million after the company flew more passengers and added routes, the company said yesterday after the stock market closed.

The carrier’s surging traffic contrasts with slumps at regional rivals including Singapore Airlines Ltd, which is cutting routes and capacity. AirAsia, which expects to fly 24 million people this year, is increasing its capacity by about 20 per cent each quarter, the chief executive said.

AirAsia, which flies to one destination in India, will fly to at least six more airports in the South Asian nation before the end of 2009, Fernandes said. -- Bloomberg

AirAsia has best first quarter
By Jeeva Arulampalam Published: 2009/05/29

The budget carrier's net profit grew 26 per cent to RM203.15 million in the three months ended March 31 2009

Busget carrier AirAsia Bhd (5099)is back in the black with a net profit of RM203.15 million in the first quarter of 2009, after posting two consecutive quarterly losses previously.

In the three months ended March 31 2009, its net profit grew 26 per cent as revenue increased 33 per cent to RM714.2 million due to better ancillary income and stronger passenger growth.

"This is our best first quarter ever and demand has continued in the second quarter," AirAsia group chief executive officer Datuk Seri Tony Fernandes told reporters at its quarterly briefing in Sepang yesterday.

Fernandes said AirAsia's outlook was positive as passenger growth continued. Seats sold year to date are up 21 per cent to 5.2 million.
"There is still demand if the price is right. The growth comes from low fares and we are well positioned because of our cost structure and marketing abilities," he said.

AirAsia targets to carry some 24 million passengers by the year-end and capture half of the market. Currently, it has 44 per cent market share.

The budget carrier will also see further growth with the liberalisation of air service between Malaysia and Singapore from June 1.

"We will be plying routes to Singapore from Penang, Langkawi, Miri and Tawau," Fernandes said.

He added that capacity and flight cuts by Asia's legacy carriers had created opportunities for AirAsia.

Owing to the lower traffic at many Asian airports, they are competing to secure AirAsia's business on more desirable terms for the airline, he said.

AirAsia saw its core operating profit surge to RM166 million in its first quarter, almost six times that a year ago.

Despite passenger travel seeing a decline globally, AirAsia has beaten all odds as its passenger numbers increased 21 per cent to 3.1 million. Load factor, however, declined 2 per cent to 70 per cent.

Ancillary income more than doubled to RM91 million, representing some 12.8 per cent of total revenue.

"The ancillary income will act as our buffer for future fuel increases as additional revenue from ancillary income is equivalent to US$30 (RM106) recovery in fuel price," Fernandes said.

Associate airline Thai AirAsia delivered operating profit of RM30.5 million, while its Indonesian affiliate posted RM11.5 million loss.

In terms of budgeting choice, Air Asis is much better than MAS.

Malaysia Airlines’ launches variety of deals to suit every budget


Malaysia Airlines’ has launched its Great-Deals-For-Everyone Sale, which provides a variety of special offers spanning over First, Business and Economy Class.
With a variety of deals to suit every type of budget, there’s never been a better time to enjoy Malaysia Airline’s awarding winning service at affordable prices.
Malaysia Airlines currently has a variety of deals on sale including:

Business Flies First – This deal allows passengers to fly first class but only pay business class prices from Sydney.
Mixed Class Travel – Passengers can fly Business class from Sydney/Melbourne/Brisbane/Adelaide/Perth to Kuala Lumpur and then fly first class from Kuala Lumpur to one of a select destination
Business Companion Fares – Passengers can enjoy discounted prices on Business Class Companion fares. Price quoted are per person when two or more passengers travel together on the same outbound flight. The deal allows for separate return travel.
Economy Plus for Business – This deal enables passengers to enjoy the perks of a Business Class seat and services for economy plus prices.
Adults Pay Child Fares – Adults can enjoy huge discounts on economy airfares with Malaysia’s adult pay child fare deal.
Asia-India Getaway – Passengers can enjoy special savings on economy travel to South East Asia and India
Malaysia on Sale- Passengers can enjoy special savings on economy travel to a number of Malaysia destinations including- Kuala Lumpur, Penang, Langkawi, Kuala Terengganu, Kuantan, Xuching, Kota Kinabalu, Tawau and Sandakan.
Great Malaysia Holidays – Until May 20, 2009 passengers can enjoy specials savings with Creative Holidays packages to Malaysia including flights and accommodation.
Malaysia Stopover Program - Stay two nights in select hotels in Kuala Lumpur from $120 per person and enjoy a third night free. This deal is available in conjunction with Malaysia Airlines long-haul flights only, the departure period is from 18 May – 30 November 2009.
Students’ 30kgs baggage allowance – All students travelling to and from Australia on Malaysian Airlines will be entitled to an additional 10kg of free baggage allowance over and above their normal 20 kg entitlement.
Being one of only six airlines worldwide officially rated 5-star by SKYTRAX this year, passengers will be sure to experience the true joy of flying with the World’s Best Cabin Staff (SKYTRAX 2009).
Malaysia Airlines operates 48 flights weekly from five cities and offers excellent connections to more than 100 destinations worldwide.

For more information on each deal including available destinations, travel dates, prices and booking please refer to www.malaysiaairlines.com, Reservations and Ticketing on 132 627 or through Travel Agents

MASkargo joins IATA e-freight programme
Published: 2009/06/01

IATA e-freight, an industry-wide initiative involving carriers, freight forwarders, ground handlers, shippers and customs authorities, aims to take the paper out of the air cargo supply chain

MALAYSIA Airlines Cargo Sdn Bhd (MASkargo), the air cargo division of Malaysia Airlines, has teamed up with the Royal Malaysian Customs and the International Air Transport Association (IATA) to launch IATA e-freight.

The new IATA e-freight programme eliminates the need to send 13 paper documents with air cargo shipments streamlining processes, improving speed and reliability, and cutting costs.

IATA e-freight became operational between Kuala Lumpur and Hong Kong, Singapore and Dubai on May 26, with further expansion planned in the coming months to South Korea and the Netherlands.

Facilitated by IATA, IATA e-freight aims to take the paper out of the air cargo supply chain. It is an industry-wide initiative involving carriers, freight forwarders, ground handlers, shippers and customs authorities.

The Malaysia IATA e-freight implementation team, led by MASkargo, started work in February 2009 and delivered IATA e-freight on schedule. Also involved were Emirates, Singapore Airlines, Cathay Pacific, KLM, DHL Global Forwarding, DB Schenker, the Airfreight Forwarders Association of Malaysia, Penang Freight Forwarders Association, Federation of Malaysia Freight Forwarders, Kuala Lumpur Airport Services and Malaysia Airports (Sepang) Sdn Bhd - KLIA Free Zone Authority.

Over the past year, IATA has assessed the readiness of 148 locations worldwide in addition to the original six e-freight sites. Of these, 44 countries, representing 80 per cent of global air-freight volumes, have the appropriate international treaties and high-level customs framework in place to qualify for IATA e-freight.

Malaysia becomes the 20th e-freight location worldwide to deliver paper-free cargo.

MASkargo managing director Shahari Sulaiman said the implementation of the e-freight programme will alleviate its status to be at par with established industry players.

"The e-freight programme, which MASkargo is embarking on, will bring tangible benefits by simplifying the business, reducing cost and improving opportunities in the industry's ever-changing and complex environment," said Shahari.

IATA e-freight is also operational in Australia, Canada, Denmark, Dubai, France Germany, Hong Kong, Luxembourg, Mauritius, the Netherlands, New Zealand, Norway and Singapore, among others.

AirAsia to mount Penang-Chennai flights soon
By Marina EmmanuelPublished: 2009/06/02

LOW-cost carrier AirAsia Bhd (5099) will launch daily flights from Penang to Chennai, India in three to four months.

The airline has been granted rights to fly the route by the government.

Transport Minister Datuk Seri Ong Tee Keat said the government is also in talks with other carriers to fly to regional destinations from the Penang International Airport this year.

"The liberalisation of air services is not only limited to increased flights to Singapore from Malaysian cities.
"We are currently in discussions with a few airlines to fly from Penang to Asian destinations," he told reporters after launching AirAsia's Singapore-Penang inaugural flight in Penang yesterday.

Also present were Health Minister Datuk Seri Liow Tiong Lai, AirAsia group chief executive officer Datuk Seri Tony Fernandes and the airline's chairman Datuk Aziz Bakar.

Malaysia Airlines (MAS) withdrew flights on the Kuala Lumpur-Penang-Chennai sector in 2001, as part of a route rationalisation programme.

On whether AirAsia has put proposals to the government to fly into more Indian cities, Fernandes said: "Not at the moment because we are short of aircraft, but we are looking at more destinations."

Meanwhile, Ong said the commencement of Silk Air's direct flights from Penang to Singapore yesterday, along with those to be offered by Firefly, Tiger Airways and Jetstar Asia, bring to a total of 49 weekly flights operating between Penang and Singapore.

Currently, MAS and Singapore Airlines are plying the route.

"By March next year, the frequency of flights to Singapore from Penang will increase to 84 times per week," he added.

Fernandes said to date, 17,000 seats have been sold by the airline since it opened the route for sale on April 27.

"AirAsia is looking at carrying 60,000 guests on this route by year-end," he added.

Besides Singapore, AirAsia also connects Penang travellers to other international destinations such as Bangkok, Jakarta, Medan and Macau.

AirAsia X in no rush to buy A340s
By Presenna NambiarPublished: 2009/05/18

AIRASIA X (5099) is doubtful that it will be able to secure the remaining three A340-300s it wants to lease this year.

"We have some offers but we are not rushing it. We'll start with two (A340s) this year, and once London grows and we have more flights or open the second destination to Europe or even look at the US ... these are the possibilities," AirAsia X chief executive officer Azran Osman-Rani told Business Times.

He said it is important that that particular make of Airbuses is leased in order to keep costs low.

"The planes (A340s) are the exact same thing as our A330s. We can use the same pilots, everything is the same," Azran said.
AirAsia X expects to take delivery of three new A330s in September, November and December this year.

"We haven't fully finalised the destinations we will fly to with the new planes, but we definitely plan to double the number of destinations AirAsia X flies to, from four destinations at the start of the year, to 10 when we have eight planes," Azran said.

With the new planes, Azran said, he may add another Australian city, one or two more Chinese cities, one Indian city and maybe a Japanese city.

AirAsia X currently operates three A330s and one A340 and is expecting delivery of one more A340 in June.

Azran said his main aim in 2009 is to prove AirAsia X's mettle as a fully profitable entity.

"With our billion ringgit revenue and 10 to 20 per cent profit margin, we would be one of the Kuala Lumpur Composite Index's top 100 companies in terms of revenue and profit, and then, we can list on or sell off shares based on 2010 forward.

"Now, we have been showing profit since December, but it's not very exciting, is it?" Azran said.

He said such a feat would give AirAsia X the growth and size that could make for a very interesting initial public offering story.

"It hinges very much on getting the planes and starting the destinations. If we don't get it, we might only double our revenue, but we would like to quadruple it to one billion," Azran said.

On the Influenza A virus H1N1, he said, it has not affected the airline in the sense that people are still buying tickets and loads are steady.

AirAsia X has an average load factor of 77 per cent on its flights.why use the A340? The B777 is a superior aircraft for long haul, it uses 2 engine and has more distance...I do not understand.

AirAsia likes to use AIRBUS es since they ordered A320's. They never order anything from Boeing.

Malaysia Airlines told to pay 6.9 mln euros fine

KUALA LUMPUR, June 1 (Reuters) - Malaysia Airlines (MAS) (MASM.KL), Malaysia's national carrier, said on Monday a European arbitration tribunal had ordered it to pay Advanced Cargo Logistic GmbH (ACL) 6.9 million euros ($9.8 million) for breach of a cargo handling contract.

In 2004, ACL had sought to claim 62.7 million euros from MAS after the Malaysian firm breached an agreement to maintain its European cargo hub at Germany's Frankfurt-Hahn airport for 10 years from 1999.

"Due to prudent provisioning in previous years, and given that the award orders MAS to pay only about 10 percent of the sum originally claimed by ACL in 2004, the award is not expected to have a material adverse impact on the financial position of MAS," it said in a statement.

The airline said it is seeking advice to challenge the ruling.

MAS shares closed up 5.8 percent at 3.28 ringgit. (Reporting by Julie Goh; Editing by David Holmes) ($1=3.471 Malaysian Ringgit)

Malaysia Airlines new area manager for Sri Lanka & Maldives

June 2, 2009 : Manmohan Singh has been appointed as the new Area Manager Sri Lanka & Maldives for Malaysia Airlines, effective 1 May 2009. Manmohan Singh, a Malaysian national, brings with him 20 years experience in the Airline Industry.
“I see great potential for the Sri Lankan Tourism industry, now that the country has been liberated from the war with the LTTE”, said Manmohan. “Malaysia Airlines is a 5-star Value carrier with a string of international awards, and the national carrier of Malaysia would like to play a huge role in developing the tourist market in Sri Lanka,” he added.

“I know things are tough and there are great challenges before us, but I feel very positive about Sri Lanka,” he reiterated.

Manmohan Singh has a Mass Communications Degree from Western Australia and has worked in various positions in the Corporate Communications Division of Malaysia Airlines before joining the Sales Team in 2006. “My number one priority is to sustain and grow the profit for Malaysia Airlines in Sri Lanka & Maldives, and I am looking forward to working very closely with the Travel Trade. We want to make sure that our customers experience the very best of Malaysian Hospitality both in the air and on the ground,” he added.

AirAsia Celebrates First Asean Crew Graduation

SEPANG, June 4 (Bernama) -- AirAsia, the leading low-cost carrier in Asia, held its first Asean crew complement graduation ceremony Thursday, which saw 68 trainees graduating as the first group of Asean flight attendants.

AirAsia's deputy group chief executive officer, Datuk Kamarudin Meranun presented the certificates of graduation.

The graduation ceremony marked a historical moment for the airline, where for the first time it presented the first batch of an all-Asean flight attendant graduates.

"While other airlines are cutting capacity and retrenching staff, AirAsia continues to grow and keeps on hiring," Kamarudin said during the ceremony held at the AirAsia Academy here.

Of the 68 graduating flight attendants, 27 were Malaysians, 22 Thais, 14 Myanmarese, three Indonesians and two Singaporeans, he said.

"As an Asean airline, an all-Asean crew is very important as it reflects our passion in projecting the beautiful image of Asean to the world," Kamarudin said.

AirAsia, he said, has grown its aircraft fleet from two in 2001 to 76 today while its staff strength grew from 200 to over 6,000 presently.



-- BERNAMA

Indonesia AirAsia network is now AirAsia biggest domestic market but it has only three flight attendances graduated? or are they going to the AirAsia Bhd?

cheers

＠Langkawi International Airport, Kedah
by PYONKO
http://www.flickr.com/photos/omeyamapyonta/3599147257/

http://farm3.static.flickr.com/2472/3599147257_141843d36a_b.jpg

AirAsia likes to use AIRBUS es since they ordered A320's. They never order anything from Boeing.

they have never ordered boeing planes, but they flew with b737-300's and indonesia airasia is still flying partly with boeing planes...

it is very simple why they keep it to only 1 type of plane. Why should they use a320's AND 737-7/8/900? It's much cheaper for the maintenance and stuff to focus on using 1 kind of plane.
It could be politics or a huge discount (why they chose airbus) because there are not big differences between the boeing 737ng and the airbus320...

Same goes with the Airbus A330/340. Same pilot and crew training, lower costs.

Other LCC's also keep their fleets all the same like Ryanair and Southwest (both all Boeing).

MASkargo wins excellence award
Published: 2009/06/04

MALAYSIA Airlines Cargo Sdn Bhd (MASkargo) has bagged yet another international award, this time the ACE Award for excellence under the air carrier category from US-based Air Cargo World.

MASkargo topped other carriers by achieving superior ratings from its freight forwarders in key areas such as customer service, performance, value and information technology.

The selection of winners was based on a survey responded by air cargo customers and Air Cargo World Magazine using their overall, first-hand experience to determine service excellence.

MASkargo managing director Shahari Sulaiman said the company is deeply honoured to receive the award as it boosts morale in the face of grim economic situation and stiff competition.

MAS to partner Turkish Airlines
Tuesday June 9, 2009

KUALA LUMPUR: Malaysia Airlines (MAS) will sign a code-sharing agreement with Turkish Airlines today.

Turkish Airlines president and CEO Dr Temel Kotil said the partnership would enable both carriers to feed into each other’s network.

“We do not have extensive networks covering the Far East. With this arrangement, we can rely on MAS’ extensive network there.

“Similarly, MAS can ride on our extensive network in the Middle East and North Africa,” he said, adding that the agreement bode well for both airlines to increase their respective network coverage and load factor.

“This is one of the most important code-sharing agreements for both airlines and should have a positive impact on the revenue of both companies,” he said.

The code-sharing operations would start in the next few weeks, Temel said.

Meanwhile, he said, over the past five years, Turkish Airlines had increased its fleet size to 127 from 65. “We are expecting deliveries of nine new aircraft this year,” Temel said.

Apart from its fleet expansion, Turkish Airlines will continue to increase its number of international destinations.

This year, it expanded its domestic routes to include Corlu, Canakkale and Usak while flights from and to Ufa, Meshad, Sao Paolo, Binghazi, Dakar and Nairobi have been added to its international routes.

New routes to Goteborg, Lviv and Toronto have been plannned for this year.

On its performance, Kotil said Turkish Airlines achieved a 328% jump in net profit to US$874mil last year and a 15% increase in the number of passengers even as the market was experiencing a serious contraction.

He said Turkish Airlines served some 22.5 million passengers last year and forecast serving 26.7 million this year.

MAS adopting new financial reporting standard
Published: 2009/06/10

MALAYSIA Airlines (MAS) (3786) is adopting the financial reporting standard 139 (FRS 139) to allow for transparency of its financial instruments, such as derivatives, given the tough operating environment.

MAS executive director and chief financial officer Tengku Azmil Zahruddin said most airlines experienced derivative hedging losses, but the current Malaysian accounting standards did not provide for such transparency.

"It (FRS 139) mainly deals with accounting for financial instruments, derivatives, and such. We decided to adopt it during the first quarter as the hedging issue didn't really come up until early this year," he told reporters.

"If you asked us last year, we did not plan on adopting early as it was not an issue then, without hedging losses and all. But it matters now, because of the environment we are in," said Tengku Azmil.
On May 28, MAS said the release of its first-quarter results would be delayed as it was early adopting the FRS 139 for its financial year 2009.

The airline will now release its first-quarter results this Friday, based on the FRS 139 issued by the Malaysian Accounting Standards Board and similar to the International Accounting Standard 39 (IAS 39) adopted by many international airlines.

The accounting standard FRS 139 will be made mandatory in Malaysia effective January 1 2010.

AirAsia: Colombo-KL flights start August 15
Published: 2009/06/11

BUDGET airline AirAsia Bhd (5099) will start flights between Colombo and Kuala Lumpur on August 15, with daily direct flights between the two cities. It is offering promotional all-in fares from as low as RM99 one-way, which is only available online via the airline’s website at www.airasia.com.

MASkargo bags ACE excellence award
Published: 2009/06/11

MASKARGO has bagged another international award, the ACE Award for Excellence under the Air Carrier category, from the US-based Air Cargo World.

Winners were picked from a survey participated in by air cargo customers and Air Cargo World magazine based on their overall first-hand experience.

In a statement, MASkargo managing director Shahari Sulaiman said the award was a morale booster given the grim economic situation and tough competition.

Malaysia Airlines posts loss in first quarter

KUALA LUMPUR, Malaysia (AP) — Malaysia Airlines said Friday it plunged into the red in the first quarter, hit by a triple blow of overcapacity, fuel hedging losses and the global economic slump which hurt passenger and cargo demand.
It warned of tough prospects this year as airlines are forced to cut fares to boost sales.

The flag carrier posted a net loss of 695 million ringgit ($199 million) for January-March, compared to a profit of 120 million ringgit a year earlier. The decline was blamed on derivative losses — mostly losses on its fuel hedging contracts — of 557 million ringgit, it said in a statement.

Revenue fell 28% to 2.7 billion ringgit ($771 million) as the percentage of seats filled fell sharply while yields — which measures income per seat — dwindled further, it said.

Managing Director Idris Jala said the airline has cut passenger capacity by 11% in the first quarter and may further reduce capacity to cut cost in line with falling demand.

Its operating loss for the quarter was 138 million ringgit ($39 million).

"This is the first operational loss for Malaysia Airlines since the third quarter of 2006 as it faced a triple squeeze: overcapacity, extreme fuel volatility and a global slump," he told reporters.

But he said the airline's fundamentals remained strong, with a cash balance of 3.8 billion ringgit ($1.1 billion).

The airline said air travel demand was expected to remain soft. It warned that the "outlook remains challenging as yield pressures continue to mount as airlines proceed to reduce fares and fuel surcharges to encourage consumers to travel."

The flag carrier said it has decided to maintain its fuel hedges as oil prices rallied past $70 a barrel recently. It has hedged 47% of its fuel requirement this year, 60% of its needs for 2010 and 40% for 2011 at a price of around $100 a barrel, Jala said.

He said Malaysia Airlines will further trim costs by up to 1 billion ringgit ($286 million) this year with no new aircraft deliveries until the end of 2010, freezing new recruitment and cutting budgets across the company.

He said the World Health Organization's move to raise its influenza pandemic alert for swine flu to its highest level was a "point of concern going forward" but didn't elaborate.

Malaysia Airlines had net profit of 244 million ringgit ($68 million) in 2008, down sharply from a record 851 million ringgit in 2007.

The International Air Transport Association on Monday predicted the world's airlines would collectively lose $9 billion this year — nearly double the previous projections. Asia-Pacific's carriers are expected to be the hardest hit with losses of $3.3 billion, worse than the previous forecast of $1.7 billion.

AirAsia offshoot seeks expansion to Sydney

AIRASIAX, the Kuala Lumpur-based low-cost carrier that recently offered return flights to London for as little as $700, wants to expand its footprint in Australia and is looking at Sydney as its next target.

The long-haul carrier flies to Australia, China and London and is an offshoot of Southeast Asia's biggest short-haul operator, AirAsia.

Fares from Australia's east coast to Kuala Lumpur start at $199 one-way. Sydney would be the carrier's fourth destination in Australia after Perth, the Gold Coast and Melbourne.

Its expansion plans come as low-cost carriers have steadily been increasing their share of the international market in and out of Australia while flagship carrier Qantas's slice of the action in March slipped to 23.1 per cent, down from 28.2 per cent in 2006. The latest government statistics show low-cost carriers in March accounted for 16 per cent of the overseas market, up from 11.1 per cent a year ago.

AirAsia chief executive Tony Fernandes said the airline was talking with both Sydney and Newcastle airports about servicing Sydney.

"In Australia we want to do daily to the Gold Coast, daily into Sydney and we still haven't done Darwin and Adelaide," Mr Fernandes said, adding that the airline would use a smaller A320 to service Darwin and offer flights for less than $100 one-way.

Mr Fernandes said AirAsiaX was getting a lot of through traffic to London on its services, especially from Melbourne and Perth.

He said the service was also attracting Australians returning from Europe and young travellers, most of whom were taking a break in Asia.

"If you look at the Australians coming in, 80 per cent appear to be using our network to go elsewhere," Mr Fernandes said. "So the symbiosis of AirAsia and AirAsiaX is working well."

Despite the economic downturn, Mr Fernandes said airlines were profitable in their most recent quarter and the second quarter also looked good.

He said both were benefiting from the crisis. As well as investment in expanding the AirAsia network, corporate business had shot up by about 500 per cent, although this was off a small base.

"I took my son to rugby practice the other day and there were four guys who came up to me and said they were all in the oil business," he said.

"They said we're using AirAsia all the time now and even using AirAsiaX down to Perth."

AirAsia seeks more support for carriers

Terminal, fee cuts can help no-frills airlines

KUALA LUMPUR : AirAsia founder Tony Fernandes has urged the Thai airport operator to build terminals for low-cost carriers and immediately slash service levies on international passengers to stimulate tourism in the country.

The chief executive of Asia's largest budget airline group said AirAsia could save Thailand's tourism industry if the government establishes a policy framework that supports budget carriers.

The current airport tax, or passenger service charges (PSC), imposed by the Airports of Thailand Plc (AoT) increases costs and restricts the growth of arrivals, especially for budget travellers, said Mr Fernandes.

In some cases the PSC is a significant part of the air-travel costs paid by passengers.

The average one-way fare on Thai AirAsia is about 2,000 baht.

The Sepang-based AirAsia planned to launch a service between Hat Yai and Kuala Lumpur by charging a starting fare of 500 baht one-way, but the plan was derailed because AoT declined to reduce the 700-baht PSC.

"Who's going to go [to Hat Yai]? It's cheaper to go somewhere else," Mr Fernandes said.

The lack of AoT support for low-cost carriers is holding up the sector's growth. AoT should introduce preferential airport charges and a dedicated terminal, he said.

"It's not the function of retracting but a function of not growing enough," he said in an interview in the Malaysian capital. "It's very urgent for Thailand to have the right infrastructure [to support LCCs]."

With the right incentives from AoT, Mr Fernandes said AirAsia could increase its passenger flow through Thailand from 5.2 million projected this year to 20 million in 2013.

"I am taking AirAsia from 2 million passengers to 24 million in six years, despite all the obstacles."

The 45-year Malaysian did not say how much of a reduction he wanted to see in the PSC.

However, in Bangkok yesterday Thai AirAsia chief executive Tassapon Bijleveld told the Bangkok Post that the PSC for international travellers should not be more than 500 baht, a roll-back to what AoT charged before Suvarnabhumi Airport opened two and a half years ago.

The 200-baht cut would appeal to budget travellers who count every baht they spend, he said.

As a next step, he said, AoT should introduce a lower passenger service charge for low-cost passengers as part of a special policy framework that should be developed for budget airlines.

"The whole idea is to generate the traffic volume, and AoT's receipts may get a big boost as a result of more passengers coming in, albeit with lower charges," he said.

AirAsia has called on AoT to build dedicated passenger terminals for LCCs initially in Bangkok, Chiang Mai and Phuket.

"An LCC terminal in Phuket capable of handling 2-3 million passengers a year can be built for only 500 million baht," said Mr Fernandes.

"If AoT does not want to invest, privatise it. I'm sure there are developers who want to build LCC terminals."

He said AirAsia was prepared to take part in the development.

AirAsia has been lobbying AoT to build LCC terminals since it started operations in Thailand five years ago. But the call has been largely fallen on deaf ears as AoT saw little merit from the investment.

Bullish AirAsia targets 24 million passengers in 2009

AirAsia remains bullish about its performance in 2009 as passengers increasingly choose LCCs over full service carriers during the economic downturn. The LCC forecasts it will handle 24 million passengers in 2009, and 60 million passengers p/a by 2013, compared to 18.3 million in 2008. The LCC also forecasts a 21% increase in passenger traffic for 2Q2009, matching its rise in passenger traffic in 1Q2009. According to IATA, international passenger traffic (RPKs) in the Asia-Pacific region fell 8.6% year-on-year in Apr-2009.

MAS fuel-hedging strategy gets mixed reviews
By Presenna NambiarPublished: 2009/06/15

ANALYSTS are mixed about whether Malaysia Airlines (MAS) (3786) is doing the right thing in its fuel contracts, but they agree that the outlook for the national carrier looks sombre.

"I do not find the mark-to-market losses it posted all that worrying because, it is something that most companies will have to go through come 2010, and MAS did take some measures to mitigate its affects," Maybank Investment Bank senior analyst Khair Mirza told Business Times.

"What I am more worried about is that the carrier does not seem to be reacting fast enough to passengers' needs. They are not doing enough.

"With the second quarter being traditionally its weakest quarter, and the H1N1 flu gathering more intensity, it is hard to imagine the carrier making a profit (in the second quarter of 2009)," he added.
Khair estimated that during the January-March period, MAS had lost 30 per cent of its passengers to its competitors.

On Friday, MAS reported a net loss of RM695 million in its first quarter ended March 31 2009, versus a year-ago net profit, largely due to its fuel hedging contracts.

Notwithstanding the RM640 million mark-to-market fuel hedging losses, the carrier posted RM138 million in operating loss.

It also said it had spent some RM400 million to restructure its hedging contracts into 2011.

Standard & Poor's Asian Equity Research analyst Shukor Yusof said MAS' mark-to-market losses is an indication of what to expect from the carrier in the coming months.

For MAS to be a trend setter, he believes that it should take a more proactive approach in its fuel hedging strategies.

"One of MAS' main problems is that it adopts a herd mentality when it comes to fuel hedges. There is no real vision and MAS is obviously afraid to take risks," Shukor said.

The airline could still make a profit in the second quarter, though, albeit not an operational one, again due to the airline's new accounting standard.

This is because just as how the airline saw a paper loss of RM640 million in the first quarter, it could see a paper gain of RM1.1 billion on fuel hedging if oil prices average US$66 a barrel in the second quarter.

Meanwhile, in a reply to a local blog posting on Rocky's Bru on Saturday, MAS executive director and chief financial officer Tengku Azmil Zahruddin said any business in which its major cost item doubles to US$180 per barrel in six months, only to fall to US$40 per barrel in the next six months, must take steps to protect itself against such volatility.

He added that because airlines typically sell seats six months into the future and sometimes even up to 340 days in advance, the need to hedge against the unpredictability of fuel price is critical.

"As with other airlines which hedge, MAS only enters into long fuel hedges, where we are buying fuel, and do not speculate by selling short in the fuel market, as may be the case with certain low-cost carriers," Tengku Azmil said.

MAS declines most since June 3
Published: 2009/06/15

MALAYSIAN Airline System Bhd (MAS), the country’s state-controlled carrier, declined the most in a month in Kuala Lumpur trading after reporting its first quarterly loss in more than two years.

The shares tumbled as much as 4.9 per cent to RM3.10 and closed 2.5 per cent lower at RM3.18, the most since June 3.

MAS reported a net loss of RM695 million (US$197 million) in the quarter ended March after passenger traffic slumped and it made wrong-way bets on fuel costs. Credit Suisse Group AG and OSK Research Sdn. downgraded the carrier’s stock after the earnings were detailed.

OSK analyst Ng Sem Guan was “stung by the numbers,” he wrote in a report today. “MAS was unable to cut capacity and fares fast and steep enough to arrest the plunge in demand,” he wrote while lowering his rating to “sell” from “take profit.”

Passenger traffic fell 12 per cent in the first quarter from a year earlier, even after cutting capacity by 11 per cent, MAS said on June 12. Operating revenue fell to RM2.70 billion, its lowest level since 2004, the company said. The airline also reported a loss on fuel-hedging contracts of RM640.2 million.

Oil prices have fallen from last year, hurting companies that had already locked in fuel prices on expectations they would rise. MAS said it has hedged 47 per cent of its fuel needs for this year at US$103 a barrel of crude oil. The carrier has hedged 60 per cent of its fuel for next year, and 40 per cent for 2011, both at about US$100 a barrel of crude.

Trading in the shares resumed today after a one-day suspension on June 12 for the earnings announcement.

Joshua Ng, an analyst at RHB Research Institute Sdn. today slashed his forecast for the airline’s 2009 earnings to a loss of RM805 million from an earlier profit estimate of 161.9 million ringgit and maintained an “underperform” rating.

For the whole of 2009, the airline’s forecast ranges between a loss of RM499 million and net income of RM50 million, according to yesterday’s statement. - Bloomberg

AirAsia X orders 10 A350s for US$2.2b
Published: 2009/06/1

By buying the A350, AirAsia and AirAsia X have now got their strategy fixed all the way to 2020, says AirAsia Bhd group CEO

Long-haul budget carrier AirAsia X has inked a contract to buy 10 Airbus A350s worth more than US$2.2 billion (RM7.8 billion), with option to purchase another five.

Deliveries are scheduled between 2016 and 2018.

The A350s will complement its current fleet of A330s.

The airline has ordered 25 A330s, due to be delivered through 2015, of which two have been delivered since October last year.

The A350-900 variant will be configured to seat 425 passengers in a two-class layout.

The deal was made at the Paris Air Show in France yesterday.

"Business is all about timing and long-term strategy. By buying the A350, AirAsia and AirAsia X have now got their strategy fixed all the way to 2020.

"The vision of creating the world's first long-haul and short-haul low-cost airline is complete and we are all very excited," AirAsia Bhd group chief executive officer (CEO) Datuk Seri Tony Fernandes said in a statement yesterday.

AirAsia X CEO Azran Osman-Rani said it selected the A350 XWB for the step-change it offers in terms of operating economics and its passenger appeal.

"We believe the A350 will be an industry game-changer that will allow us to dramatically operate with unprecedented unit costs for long-haul flights to Europe and North America, opening up new tourism markets and exciting destinations," he added.

AirAsia X currently flies to London, the UK; Melbourne, Perth and Gold Coast in Australia; and Tianjin and Hangzhou in China.

Airbus president and CEO Tom Enders said the A350 XWB burns up to 25 per cent less fuel per seat and covers a range of up to 15,400km.

Firm orders for the A350 XWB now stand at 493 from 31 customers worldwide.

AirAsia X steps up route plans, to lease more A340s
By Presenna Nambiar
Published: 2009/06/18

http://www.btimes.com.my/articles/aaz/pix_topright

Long-haul budget carrier AirAsia X will be looking to lease more A340s between 2010 and 2016 as part of plans to service a few more European routes and possibly a North American destination.

On Tuesday, it inked a contract to buy 10 A350s worth more than US$2.2 billion (RM7.8 billion), with option to purchase another five. Deliveries are scheduled between 2016 and 2018.

"We expect the lease market to soften further as the Boeing 787s come on stream. It is not difficult to find A340s; it's just that we're choosy and patient, waiting to pounce on a lease only when it is very favourable," AirAsia X chief executive officer Azran Osman-rani told Business Times through e-mail yesterday.

Come 2016, the A350s will replace its A340s, of which the airline has two at present.

"The 2016 timing works because it will be the end of our current A340 lease term. The A330s will remain in our aircraft fleet, covering the Asia-Pacific region (within eight hours of flying)," Azran said.

Shares of parent company AirAsia Bhd rose four sen to close at RM1.17 yesterday as investors responded favourably to news of the purchase.

Some 4.95 million shares were traded.

Azran said that even though the A350s will need a newly-trained crew because of its next-generation cockpit, this will be offset by the huge fuel efficiency which will help lower costs.

For example, fuel burn per passenger seat on the A350 flying to London is 50 per cent lower than for the A340, he said.

The new planes will allow AirAsia X to open up European, North American and New Zealand routes.

"It will likely be used for our London route, for which we intend to have multiple daily frequencies to London by 2016.

"We also expect two to four more European destinations, two in North America (at least one on the US West Coast and another on the East Coast) and possibly some African and New Zealand options."

Azran added that AirAsia X will not have any problems financing the purchase as substantial payments for the aeroplanes will only start in 2013. The first downpayment was not substantial.

"We don't expect a material change in our cash flow from this A350 order prior to 2013. Anyway, by that time, we would have paid off a big chunk of our A330 debt. So, we should have more cash capacity for the A350s."

MAS Aerospace teams up with Alenia Aeronautica
Published: 2009/06/18

http://www.btimes.com.my/articles/aleniamas/pix_topright

MALAYSIA Airlines (MAS) (3786), through its subsidiary MAS Aerospace Engineering Sdn Bhd (MAE), has teamed up with Alenia Aeronautica, a Finmeccanica company to capture a big slice of the turboprop maintenance, repair and overhaul (MRO) services market in Asia.

Both companies sealed an agreement to create a joint venture for the provision of the MRO services for turboprop commercial aircraft, particularly the ATR, at the ongoing Paris Air Show in France yesterday.

MAE managing director Mohd Roslan Ismail signed the agreement, while Alenia Aeronautica was represented by its chief executive officer Giovanni Bertolone.

In a statement issued yesterday, MAE said the new company, MAS-Alenia Aeronautica Aerospace Engineering (MAAE) is 51 per cent owned by MAE and the remaining 49 per cent by Alenia Aeronautica, with its headquarters to be located in Malaysia.
The joint venture agreement is related to the earlier order of 20 ATR 72-500s, plus an option for seven more jets by Firefly and MASwings. These two airlines are wholly-owned by MAS.

MAAE aims to offer MRO services for ATR aircraft within Asean and the Indian sub-continent, with plans to offer these services to other countries in the future.

Mohd Roslan said the lack of MRO maintenance for turboprop aircraft in Asia would position this joint venture company to become a key MRO provider for turboprop.

In the second stage, he said the joint venture will help develop additional business opportunities in the cargo conversions and specialised activities.

How will Airasia X pay US$2.2b for the 10 Airbus ordered?
Thursday June 18, 2009
By C.S. TAN

PETALING JAYA: AirAsia X’s latest fleet purchase has raised concerns among analysts that it is following the high debt-leverage route of AirAsia Bhd, expanding the risks to its bankers.

The long-haul, low-cost airline company’s CEO, Azran Osman-Rani, said there was a fundamental difference between the business model of AirAsia X and that of traditional airlines.

“For AirAsia X, most of its tickets are sold through the Internet and bought by customers months before their flights.

“As for traditional airlines, tickets are mainly bought through agents and paid by customers just two weeks before the flights.

“The agents may even pay the airlines after the flights,” he told StarBiz in a telephone interview yesterday. The airline has a similar business model as AirAsia as both are low-cost carriers.

“We have forward cash. In this business, what is important is cashflow. We’re holding the forward cash,” he added.

It was announced on Tuesday that AirAsia X placed a firm order for 10 Airbus A350 aircraft which carried a list price of US$2.2bil.

This follows an earlier order for 25 Airbus A330 planes for delivery between last year and 2015.

On the company’s debt leverage, he said AirAsia X’s gearing was about 200% and was not expected to increase.

The 10 planes in the latest order will only be delivered from 2016.

“It’s not like we’re buying all the planes at the same time. But it is important to place the deposits now. This is to ensure we’ll have the delivery slots. The deposit is just US$10mil, we’re not paying US$2.2bil yet,” he added.

Progressive payments will start 36 months from delivery but the bulk of payments will be made when the planes are delivered.

By the time the A350 planes are delivered from 2016, most of the borrowings taken for the A330 planes would have been repaid.

Azran said some equity analysts did not understand AirAsia X’s business model, but that was not important.

“What is important is what the banks do. If the banks are worried with our gearing, wouldn’t they be the first to run away?

“But the banks are saying they’ll fund all our deliveries this year,” he said.

AirAsia X will take delivery of three Airbus A330 planes between September and December. Financing has been obtained for these planes.

Currently, the airline flies five planes to London, Melbourne, Perth and Gold Coast (Australia), and Tianjin and Hangzhou in China.

Its most profitable routes are Gold Coast and Hangzhou because these were the first two routes flown by the airline.

“They’re more matured markets for us than London or Melbourne. It’ll take us a year to build brand awareness for the newer routes and, initially, the pricing has to be aggressive,” he said.

@ KLIA
by mazr80

http://farm4.static.flickr.com/3264/3249428344_7f8026110b_o.jpg

Special Livery - An experience redifined
by JUBES747
http://www.flickr.com/photos/tiger111/3613027600/

http://farm3.static.flickr.com/2475/3613027600_4438235cae_b.jpg

Boeing 747
by dickbrain99
http://www.flickr.com/photos/dickbrain/3584188036/

http://farm4.static.flickr.com/3649/3584188036_4a0e730056_o.jpg

^^ I've flown on that plane from LAX

MAS Discusses Cost Reduction Measures With Staff
June 22, 2009 15:34 PM

PETALING JAYA, June 22 (Bernama) -- Malaysia Airline System Bhd (MAS) is still in discussions with employees on measures to further reduce costs, chairman Tan Sri Dr Munir Majid said Monday.

"We are still in a consultation process and we do not want to rush," he told reporters after the airline's annual general meeting and extraordinary general meeting here today.

It is understood that MAS is currently in talks with staff on cost-saving measures, including pay cuts and reduced work days.

With these measures, the airline aims to save between RM700 million and RM1 billion this year.

"We are still looking what can be done to earn revenue and save cost. So, pay cut may not be necessary after all," Munir said.

-- MORE

MAS MD says Q2 load factor rising
Published: 2009/06/22

MALAYSIAN Airline System Bhd, the national carrier, said load factor in the second quarter so far has risen from the first three months of the year after fare promotions.

Second-quarter load factor as of June 21 was 66 per cent, up from 56 per cent in the first quarter, managing director Datuk Idris Jala told reporters today.

The airline is considering pay cuts as part of a series of measures to reduce expenses, chairman Tan Sri Dr Munir Abdul Majid said. He ruled out job cuts. -- Bloomberg

Airbus secures US$12.9b commitments for 127 planes
by Joseph Chin
Monday, 22 June 2009 12:33

KUALA LUMPUR: Airbus has secured commitments for 127 aircraft valued at US$12.9 billion at the 2009 Paris Air Show, the airline manufacturer said.

Airbus said these commitments include firm orders for 58 aircraft worth almost US$6.4 billion, plus memoranda of understanding (MoU) agreements for a further 69 aircraft totaling US$6.5 billion,” it said on June 22.

On the firm orders for the 58 planes, it said Qatar Airways placed an order for 24 single-aisle aircraft valued at US$1.9 billion, The planes comprised of 20 A320s and four A321 aircraft.

Vietnam Airlines signed a US$1.4 billion firm order for 16 A321s. In addition, Air Asia X expressed announced a firm order for 10 A350-900s valued at US$2.4 billion.

Other firm airliner orders made during the show include Cebu Pacific, which ordered five A320s; Aigle Azur for one A319; and Zest Air of the Philippines one A320. A private customer also ordered one Airbus Corporate Jet (ACJ) A320 Prestige.

“Moreover, as a further indication of the industry’s forward planning at the show, Airbus received MoU commitments for a further 69 aircraft,” said Airbus.

These MoUs comprised of 50 A320s for Wizz Air worth US$3.8 billion; 10 A321s for Indian based Paramount Airways worth US$900 million; two A330-200s plus five A330-300s for Turkish Airlines together worth US$1.4 billion; and two A350-900s for Vietnam Airlines worth US$480 million.

Airbus chief operating officer customers John Leahy said Airbus' commercial performance shows that the airline industry continues to invest in the most fuel-efficient and environmentally-friendly aircraft.

“Our customers are addressing both the long-term industry growth as well as the necessary replacement of older less efficient aircraft,” he added.

Confirmed to fly, with Air Asia X:
http://www.flightglobal.com/articles/2009/06/22/328520/airasiax-to-put-a350s-in-10-abreast-configuration.html

Ouch. Just how wide is A350XWB compared to, say, DC-10?

New MAS ticketing office offers one-stop convenience for travellers
Tuesday June 23, 2009

THE recently upgraded Malaysia Airlines (MAS) ticketing office in KL Sentral is a delight for customers as the one-stop centre offers everything needed for travel.

The MAS flagship store boasts 27 counters manned by a staff of 60, offering services for the national carrier, Firefly, MASwings, Enrich, Golden Holidays and more.

The employees can also help customers with ticket refunds, applications for Australian visas and medical cases. It opens from 4.30am to midnight daily.

MAS assistant general manager (distribution) Abdul Mutalib Ishak said the national carrier was committed to ensuring that the travel experience was seamless, from the purchase of a ticket to boarding the ERL direct to KLIA.

“This one-stop centre will make it easy for customers and even travel agents to conduct all the necessary transactions. We have a bigger waiting area, dedicated counters and up to 60 staff members on three shifts,” he said.

He added that the ticketing centre was planned to cater for more than 20,000 customers a month.

“More and more people prefer to do their transactions at KL Sentral, so it makes sense to upgrade the centre and offer the entire suite of products and services that we have,” he said.

Mutalib also said the ticketing centre was part of the airline’s plan to intensify and consolidate its ticketing operations in the Klang Valley.

“Our focus is customer convenience. As such, our plan is to have two centrally located one-stop centres – the flagship store in KL Sentral to cater to customers in the city and its surroundings and another in Subang Skypark for those in the suburbs,” he said.

The MAS Subang Skypark ticketing office opened in May this year and is open from 7am to 7pm daily.

There are two more Malaysia Airlines ticketing offices, one in Putrajaya and another at the main terminal building at the KL International Airport. The ticketing office in Jalan Sultan Ismail was closed on Dec 12, 2008.

MAS: No plans to lay off staff
By Jeeva Arulampalam
Published: 2009/06/23

http://www.btimes.com.my/articles/jmas22-2/pix_topright

Malaysia Airlines chairman Tan Sri Dr Munir Majid says salary cuts may not be necessary as the airline may review its remuneration packages instead

MALAYSIA Airlines (MAS)(3786) says it has no plans to join other airlines in laying off staff at this stage to save cost.

Its chairman Tan Sri Dr Munir Majid said such a proposal was not up for discussion, but the national carrier, which posted its first operating loss in over two years in the first quarter, was looking at other means of conserving cash in this challenging economic environment.

"We are currently in a consultative process which requires discussion and evaluation on how to keep everyone employed," he told reporters after the group's annual and extraordinary general meetings in Kelana Jaya yesterday.

Last week, it was reported that MAS was in talks with its employees on cost-reduction measures, including reduced work days and pay cuts across the board.
Munir said salary cuts may not be necessary as the airline may review its remuneration packages instead.

"We don't have a definite period on when this consultation will end as we don't want to rush the process," he said, adding that the board of directors was not set on making a decision at its next board meeting next month.

Munir's announcement came around the time when at least three major Asian carriers announced drastic measures to cut cost, amid deteriorating business conditions.

Last Saturday, Singapore Airlines said it will cut salary of management staff from July, ranging between 10 per cent and 20 per cent, while its board of directors has agreed to take a cut of 20 per cent as part of efforts to keep the airline profitable.

Japan Airlines plans to eliminate about 1,200 jobs while the government is considering pumping money into the airline. Air India, meanwhile, has been forced to delay staff salary payments.

Earlier, MAS launched its global low fares campaign, which will see the airline selling some six million seats at low fares, to stimulate travel demand.

Managing director and chief executive officer Datuk Seri Idris Jala said that the low fares were only made available for lean flights, in line with the airline's dual pricing strategy.

In Malaysia, the low fare campaign comes in the form of the Malaysia Airlines Travel Fair (MATF), which now entitles customers to earn Enrich miles despite purchasing low fares.

MATF, which started yesterday until July 5, is for the travel period between June 29 and December 15 2009.

MAS senior general manager of sales Datuk Bernard Francis said MAS hopes to generate RM50 million in sales from its second MATF this year. The first MATF for the year was held in February and recorded sales of RM100 million.

He added that the airline will offer more than 70 travel fairs globally until 2010 and that the MAS Stimulus Package launched earlier this year has seen sales increase up to 30 per cent.

Although Idris said that it was difficult for MAS to surpass last year's revenue of RM15 billion due to lower passenger travel, the airline has seen load factors improve to 65.9 per cent as at June, from 56 per cent recorded in its first quarter of 2009.

On the impact of influenza A (H1N1) virus, MAS has seen some decline in terms of passenger travel to North Asia.

In response to Deputy Prime Minister Tan Sri Muhyiddin Yassin's call for Malaysians to stay away from Australia and the US, Idris said that people should take into account the associated risk when travelling.

"But we need to compare the risk now with SARS (Severe Acute Respiratory Syndrome). Relative to SARS, the severity is not as bad but we need to take the necessary precautions," he said.

MAS plans more airfare promotions
By EDY SARIF

PETALING JAYA: Malaysian Airline System Bhd (MAS) plans to launch more airfare promotion campaigns as the national carrier’s load factor has begun to improve on the back of such promotions, said managing director and chief executive officer Datuk Seri Idris Jala.

“With the airline industry facing an economic slowdown and the H1N1 flu affecting the business, we need to do more attractive promotions to boost sales,” he said here yesterday after the launch of the Malaysian Airlines Travel Fair (MATF) and a global low fares campaign.

According to MAS, its load factor in the second quarter rose to 66% as at June 21 from 56% in the first quarter.

“We will continue to push sales aggressively and we are planning to offer more than 70 travel fairs globally until 2010,” he said, adding that the low fare promotions were only for non-peak flights.

Nevertheless, Jala acknowledged that MAS was facing tough operating conditions and that it would be a strong challenge for them to surpass the RM15.5bil revenue posted in 2008.

Meanwhile, MAS chairman Tan Sri Munir Majid said the national carrier currently had no intention to lay off workers.

“We value our workers who have been contributing a lot to this company. We have mentioned it before and today that there will be no lay-offs. We are still at the consultation stage and discussing the best solutions for the company and the staff. We are not in a hurry to decide.”

The company had also not made a decision regarding pay cuts, he added.

The all-inclusive one-way fare promotion under MATF began yesterday and will last until July 5, with prices ranging from RM118 to Singapore, RM198 to Asean countries, RM428 to South Asia, RM488 to Australia and RM898 to Europe.

MAS is also offering promotional deals globally until June 26, with flights to Asean, South Asia, North Asia, Australia, Middle-East, US and South Africa.

MAHB to resolve AirAsia airport tax debt soon
Published: 2009/06/23

MALAYSIA Airports Holdings Berhad (MAHB) did not take any drastic action to claim the arrears in airport tax owed by AirAsia because it will only affect the operation of the low-cost carrier terminal (LCCT), Prime Minister Datuk Seri Najib Tun Razak said today.

Najib, who is also the finance minister, said it would also give a negative impact to MAHB as the operator and manager of airports.

As AsiaAsia has chalked up arrears of RM65 million, MAHB was in negotiations with the airline to resolve the matter, he said.

MAHB was confident of resolving the matter soon, he said in a written reply to Wee Choo Keong (PKR-Wangsa Maju) who had asked him to state why MAHB had accorded AirAsia the special privilege of owing RM65 million in airport tax as at February 28 this year when passengers had already paid the tax in advance.

Wee had also asked why, when Air Asia had been reporting making huge profits every year from its inception, there was a need for MAHB to negotiate with AirAsia over the settlement of the airport tax debt. - Bernama

MAS, Sri Lankan expand code-share pact
Published: 2009/06/24

http://www.btimes.com.my/articles/massa/pix_topright

MALAYSIA Airlines (MAS)(3786) has expanded its existing code-share agreement with SriLankan Airlines, which enables the national carrier to code-share on SriLankan's flights to Male in the Maldives, besides Colombo, from tomorrow.

With this code-share expansion, SriLankan Airlines will also gain access to Los Angeles, Sydney, Melbourne, Jakarta, and Seoul through MAS.

The agreement was signed in Colombo on Monday.

MAS general manager, government and industry relations, Germal Singh said the expanded partnership with SriLankan Airlines will provide MAS passengers access to the Maldives, while enabling MAS to further enhance its loads to the major cities in North America, Asia and Australia.
Members of the frequent flyer programmes of the two airlines, Malaysia Airlines' Enrich and SriLankan FlySmiLes can also earn and redeem points on flights of either airline.

The expanded code-share is effective from tomorrow. In conjunction with the MAS Travel Fair, the carrier is offering a promotional all inclusive fare of RM348 from Kuala Lumpur to Colombo and RM718 from Kuala Lumpur to Male from June 22 until July 5 2009.

The two airlines have been code-sharing between Kuala Lumpur and Colombo since 1999.

Thai AirAsia waives ticket booking fees
Published: 2009/06/24

THAI AirAsia Ltd, partly owned by AirAsia Bhd, will waive ticket booking fees from today to attract more passengers because demand has weakened during the recession, said chief executive officer Tassapon Bijleveld.

Passengers will pay only air fares and taxes, Tassapon said.

The carrier removed a fuel surcharge in January.

The lower ticket cost may help the company meet its target of 5.2 million passengers this year, he said. -- Bloomberg

AirAsia scraps admin fees to make tickets cheaper
Published: 2009/06/24

KUALA LUMPUR: Malaysian budget airline AirAsia on Wednesday abolished administrative fees on all its flights in a move to reduce fares and bolster sales amid the global slowdown.

AirAsia Chief Executive Tony Fernandes said scrapping the fee creates further savings for passengers as they will now pay only the fare and airport tax.

AirAsia removed fuel surcharges in November last year.

AirAsia Chief Executive Tony Fernandes smiles as he talks to the media during a press conference in Kuala Lumpur on Wednesday. The Malaysian budget airline AirAsia on Wednesday abolished administrative fees on all its flights in a move to reduce fares and bolster sales amid the global slowdown. (AP Photo/Mark Baker)

The fee ranged from 22.5 ringgit ($6.40) to a maximum of around 43 ringgit per ticket and removing it will cost the airline 400 million ringgit ($113 million) a year.

Fernandes said the region's biggest budget carrier is confident it can increase ticket sales and generate income from other sources to offset the loss of revenue.

"It's been a tough six months for the airline industry but AirAsia is getting stronger and stronger. We believe we will increase our load factor and become more competitive," he told a news conference.

Airlines worldwide are reeling from the global economic slump that has choked passenger and cargo traffic.

Many have cut capacity, grounded planes and shed their work force to cope with the downturn.

But AirAsia is expanding and says it is benefiting as travelers cut cost and downgrade to budget carriers.

Its net profit in the quarter through March hit a record 203.2 million ringgit ($57 million), up 26 percent from a year earlier. - AP

AirAsia Wants MAHB To Recommend Reduction In Airport Tax At LCCT
June 24, 2009 20:07 PM

KUALA LUMPUR, June 24 (Bernama) -- Low cost carrier AirAsia Bhd, wants Malaysia Airports Holdings Bhd (MAHB) to recommend a reduction in airport tax to the government for international passengers, at the Low Cost Carrier Terminal (LCCT)

Its group chairman Datuk Aziz Bakar said today that the current rate of RM51 charged for international travellers was unfair, and should be reduced to RM10, as the LCCT did not have advantages such as aerobridges when compared to the Kuala Lumpur International Airport (KLIA).

"Malaysia Airports should be recommending to the government to lower the charge as it is the entity operating the airport," he told reporters on the sidelines of AirAsia's Major Tariff Adjustment launch here on Wednesday.

"The Minister of Finance, Datuk Seri Najib Tun Razak, will have to consider this. We have invested a lot and are always expanding and lowering cost. We want to make Kuala Lumpur a hub for travellers," he added.

Aziz said AirAsia had helped bring about the multiplier effect to the country's economy through its passengers.

"If Malaysia Airports look at the bigger picture of the economy, what is a few ringgit in service charges?" he asked.

He said this when asked to comment on the issue of the RM65 million in airport tax owed by AirAsia to Malaysia Airports and which was brought up in Parliament on Tuesday.

"We have been paying the charges. But the RM65 million is part of the payment we are holding back, until we resolve this issue," he explained.

-- BERNAMA

AirAsia scraps admin fees to woo more passengers
By Presenna Nambiar
Published: 2009/06/25

AIRASIA Bhd (5099) has scrapped administration charges, which contribute some RM400 million to the group, from its fare structure in a move to attract more passengers.

The budget carrier's administration charges range between RM22.50 and RM43.50.

AirAsia chief executive officer Datuk Seri Tony Fernandes is confident that the loss in revenue will not hurt earnings, saying the airline will make up for it through ancillary income as well as a surge in passenger volume.

"Our routes are maturing, they are getting more profitable, our hotel side is booming, we are looking at other ways of generating income.
"I continue to be very bullish about the industry, as a product, the fact that we can reduce charges, at a time like this means that we are doing good, I think," Fernandes told reporters in Kuala Lumpur yesterday.

First quarter passenger numbers for the airline were 21 per cent higher than those recorded last year.

"We are not going to fill up a 30 million capacity low-cost carrier terminal just by waiting for things to happen. We have to constantly innovate to keep the passengers coming," Fernandes said.

He hoped airports would take the cue, by reducing their charges around the world and at home.

AirAsia has been calling for Malaysia Airports Holding Bhd to reduce airport tax charges for the carrier from RM51 for the international sector to RM10 for some time now.

AirAsia chairman Datuk Aziz Bakar said the airline has yet to pay the RM65 million airport tax to MAHB to negotiate lower charges for airports in the country.

This is the second time the budget carrier has withheld payment to MAHB for airport charges.

On fuel surcharge, Fernandes said the airline will only reintroduce fuel surcharge should crude oil price reach the US$100 per barrel (RM355) mark again. The oil price trades at around US$70 (RM248) a barrel now.

"We have systems in place to manage oil up to that level now," Fernandes said.

The airline currently does not hedge any of its fuel requirements and appears to have no plans to do so anytime soon.

"We are not hedged (against crude oil prices) at all now, and I don't see any demand for crude oil to boost prices. Hedging is just too expensive," Fernandes said.

Meanwhile, on the influenza A (H1N1), Fernandes said demand for seats has not been affected by the outbreak.

Thai AirAsia Targets 5.2 Million Passengers This Year
By D. Arul Rajoo

BANGKOK, June 24 (Bernama) -- Thai AirAsia, a subsidiary of Malaysia's AirAsia low-cost carrier, is confident of achieving its target of 5.2 million passengers this year, despite several hicups, including political instability, Influenza A(H1N1) and global economic recession.

Its chief executive officer, Tassapon Bijleveld, said the strong showing in the first quarter of the year -- where the company posted a 15 to 20 per cent growth as compared to the corresponding period last year -- had boosted their confidence.

"This growth was achieved, despite the Songkran riot (anti-government protests).

"But the market is weak currently, and we are doing our best to stimulate the market with such initiatives," he said, after announcing its parent company's move to waive the administration fee for passengers booking tickets with the airlines.

Tassapon is hopeful that waiving the administration fee (100 baht in Thailand) would boost ticket sales as passengers just needed to pay for ticket fare and airport tax, which is 50 or 100 baht for domestic routes and 700 baht for international flights departing from the Kingdom.

Last year, the airline carried 4.2 million passengers.

Tassapon said the Influenza A(H1N1) scare was affecting the market as the number of passengers had dropped. To date, the Thai Public Health Ministry has confirmed 985 such cases in the country.

"We hope to see signs of recovery within 60 days as people are cautious now because of the flu. But the key to travelling in Thailand is political stability and fortunately it's good now," he said.

Tassapon said the Phuket and Bali sectors were among the best routes served by the airline, adding that plans to make the island the second Thai hub after Bangkok, was expected to materialise by the fourth quarter of the year.

On its expansion plan, Tassapon said they were finalising plans to open several destinations in India and more cities in China, year end.

"We are aiming to tackle China and India as they are big markets. We intend to do that once we receive more Airbus planes by the end of the year," he said, adding that it currently had nine Airbus and six Boeings.

-- BERNAMA

Source: http://www.airasia.com/

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Pre-Ordered Hot Meal
Enjoy a healthy and delicious meal on your AirAsia.
Nasi Lemak Combo
MYR8/IDR24,200/THB80

http://www.airasia.com/storage/bo/aaportal.model.ContentFileUpload/7fdce206-7f000010-7bacb000-416c4f7e/name/akMeal_nasilemak.jpg

Asian Fried Rice with Chicken Satay Combo

http://www.airasia.com/storage/bo/aaportal.model.ContentFileUpload/5e7fb3d2-7f000010-1a998360-49f3c96d/name/akMeal_satayrice.jpg

Nasi Briyani (Curry Chicken) Combo

http://www.airasia.com/storage/bo/aaportal.model.ContentFileUpload/7ad34320-7f000010-7e80a000-1146ab95/name/akMeal_briyani.jpg

Roti Canai

http://www.airasia.com/storage/bo/aaportal.model.ContentFileUpload/7ad35b52-7f000010-7e80a000-4c8cc3d2/name/akMeal_roti.jpg

Amazing Hot Dog

http://www.airasia.com/storage/bo/aaportal.model.ContentFileUpload/7fddf4e3-7f000010-7bacb000-2df14d50/name/akMeal_1901.jpg

Sandwich (Chicken Ham & Cheese)

http://www.airasia.com/storage/bo/aaportal.model.ContentFileUpload/7fdce2ee-7f000010-7bacb000-9301f73b/name/akMeal_sandwich.jpg

Smoked Chicken Foccacia

http://www.airasia.com/storage/bo/aaportal.model.ContentFileUpload/cc7f0c76-7f000010-3f117900-ee17343b/name/akMeal_chicfocc.jpg

Source: http://www.airasia.com/site/my/en/page.jsp?reference=akmeal_desc

AirAsia removes administration charges
Thursday, June 25th, 2009

KUALA LUMPUR: Low-cost carriers, AirAsia and AirAsia X, have removed administration charges effective midnight on Tuesday night, enabling travellers to save up to RM30 and RM42 respectively.

AirAsia group chief executive officer, Datuk Seri Tony Fernandes, said the move would lower the fares and boost passenger volume during the present difficult times.

He said the group was also expected to lose revenue of about RM400 million regionally and RM250 million in Malaysia.

“We want to be more proactive. The best way to get people to fly is through high quality products and lower fares,” he said at the launch of AirAsia’s Major Tariff Adjustment here yesterday.

The admin charges are between RM22.50 and RM43.50 for one-way travel.

Fernandes said he was confident the move would not hurt the group’s profita-bility as it would be bols-tered by ancillary busines-ses like food and hotel via increase in passengers.

“We posted a record profit of RM220 million in the first quarter when we removed fuel surcharge. We feel the same way this time (about removing administration charges),” he said.

Fernandes hoped that airports worldwide would be able to reduce charges to further encourage air travel.

“The only other charge that is not controlled by us is the airport charge. In the spirit of getting more people to fly, they (airports worldwide) should look at this,” he said.

Fernandes said the RM6 airport tax for domestic flight was all right.

However, he said the RM51 for international flight at the low-cost carrier terminal should be reduced to RM10.

He said the group’s passengers were now enjoying lower fares of up to 20 per cent following the removal of charges and promotions carried out previously. — Bernama

MAS adopts 14th school
Monday June 22, 2009

http://thestar.com.my/archives/2009/6/22/nation/n_25mas.jpg

Service with a smile: Malaysia Airlines cabin crew
extending a hand to students at SK Keruak in Besut.

PETALING JAYA: Malaysia Airlines has adopted SK Keruak in Besut, Terengganu, its 14th school under the Pintar programme.

MAS chairman Tan Sri Dr Mohamed Munir Abdul Majid said the Pintar project had generated encouraging results.

“Last year, 397 primary school students from 34 schools that were adopted by government-linked companies under this programme, obtained 5As in the UPSR. The average percentage of students who obtained these excellent results were 12.7% – higher than the 9.7% national average.

“We are very proud of the students and the increased level of excellence especially in the UPSR, PMR and SPM examinations in our various adopted schools in the country,” he said in a statement yesterday.

Under Pintar, MAS will help motivate students over the next three years to learn and to ensure that they will have a conducive learning environment.

“The initiatives would include motivational talks, tuition packages, leadership courses, school uniforms for needy students and desktop computers.

“In addition, MAS staff would engage the students in other activities such as educational visits to the airline’s operations areas, and tourist spots during school holidays and summer camps coordinated by volunteers from Malaysia Airlines’ Sports Clubs,” he said.

As a reward for outstanding performance, he said MAS would also offer complimentary air tickets to top students.

“Outstanding teachers who have contributed to the academic excellence of the students would also be rewarded,” he said.

MAS was the first government-linked company that participated in the Pintar programme in January 2007, by adopting two schools in Penang.

MAS To Offer Over 70 Travel Fairs Globally
June 22

PETALING JAYA, June 22 (Bernama) -- Malaysian Airline System Bhd (MAS) will offer more than 70 travel fairs globally until 2010, its senior general manager, sales, Datuk Bernard Francis, said Monday.

The airline will continue to aggressively push sales in the Asean region, South Asia, North Asia, Australia, the Middle East, the Americas, and South Africa, he said.

"These are targeted campaigns which are matched with the different consumer segments and their buying behaviour," he told reporters at the launch of the Malaysia Airlines Travel Fair (MATF) and Global Low Fares Campaign, offering "Great Deals For Everyone".

Bernard said a free ticket would be given to every 500th customer booking their tickets online at the malaysiaairlines.com website.

"One of the more attractive MATF offerings is that customers can travel immediately as the travel period is from June 29 until December 15," he said.

The all-inclusive one-way fare for MATF, which started today and will end on July 5, begins from RM118 to Singapore, RM198 to Asean countries, RM428 to South Asia, RM488 to Australia and RM898 to Europe.

Concurrently, MAS is offering attractive deals globally in Asean, South Asia, North Asia, Australia, the Middle East, the Americas and South Africa for five days from today until June 26.

The company secured RM100 million in sales during the previous MATF held in February this year, Bernard said.

According to him, the global low fares campaign has increased sales by 100 percent and the MATF held in the United Kingdom raised the number of passengers carried by 50 percent in the past six months.

"We only offer low price for non-peak flights and we believe this is the right thing to do," said MAS managing director and chief executive officer Datuk Seri Idris Jala when asked how the airline could offer low fares despite the high cost in providing service.

As of yesterday, MAS' passenger load factor increased by 65.9 percent despite the current economic situation as a result of its effort to stimulate demand, he said.

-- BERNAMA

No more admin fee for AirAsia tickets
Thursday June 25, 2009

PETALING JAYA: AirAsia has abolished its administrative fees from its fee structure.

AirAsia group chief executive officer Datuk Seri Tony Fernandes said all bookings made for AirAsia and AirAsia X flights would now only display the fare plus airport tax throughout the booking process.

“We were the first airline to abolish our fuel surcharge and we are proud to lead again in removing our administration fee,” he said in a statement yesterday.

He added that the “No Admin Fee” initiative ensured transparency of the advertised price.

Fernandes said the effort, to stimulate travel and tourism in Malaysia and the region, was being held in conjunction with a regional promotional fare campaign that would run from June 24 to 28.

The bookings would be for travel dates between Oct 1 and April 30 next year.

Fernandes said the first quarter results showed that there was a 21% growth in passengers compared with the same period last year.

“This goes to prove that people appreciate the true value we offer especially in these difficult times,” he said.

MAS, Royal Brunei expand code sharing
Published: 2009/06/26

MALAYSIA Airlines and Royal Brunei Airlines have agreed to code share on the Bandar Seri Begawan-Kota Kinabalu and Bandar Seri Begawan-Kuching flights from next month.

In a joint statement today, the airlines said Malaysia Airlines will code share on Royal Brunei Airlines' twice daily services between Bandar Seri Begawan and Kota Kinabalu and twice weekly services between Bandar Seri Begawan and Kuching.

The two airlines have been code sharing on flights between Bandar Seri Begawan and Kuala Lumpur since 2004.

"We are delighted to expand our partnership with Royal Brunei as Borneo is a popular destination for North American and North Asian tourists," said Malaysia Airlines' commercial director Datuk Rashid Khan.

"Our customers can now enjoy seamless connectivity to the three major cities which offer unique cultural heritage and natural attractions," he said.

Royal Brunei Airlines' senior vice president of commercial, sales and marketing Wong Peng Hoon said the airline will be able to effectively make travel to Borneo seamless for passengers with the code share on Sabah and Sarawak.

Passengers, he said, will also be able to take advantage of the increased number of flights into Borneo and access the booking facilities of both airlines. -- Bernama

AirAsia taken to task over NFL deal
While local sports bodies beg for money, airline sponsors American football team
Jonathan Fernandez
Thursday, June 25th, 2009 08:32:00

http://www.mmail.com.my/sites/default/files/imagecache/large/airasia.jpg

SPONSORED: Oakland Raiders team players posted on an aircraft

CHARITY, they say, begins at home. This, apparently does not apply to Malaysia's low budget carrier AirAsia. While its support for local sports has been largely in the form of discounted flights, the carrier is about to splash out millions in cash to an American football team in a major deal to be announced tomorrow.

Baffling is why AirAsia is even pursuing this deal - it doesn't even fly to the US and yet, is doling out cash for a sport with hardly a following in Malaysia.

Equally puzzling is how the no frills airline, which had its early success from strong Malaysian support to see a local airline make a global name, can afford to splash extravagant amounts when it owes Malaysia Airports Holdings Bhd (MAHB) RM65 million in airport tax.

Yesterday, AirAsia even admitted that it was withholding the payment unless MAHB lowered the airport charges! (See accompanying story)

Meanwhile, Malaysian sports figures said AirAsia could do a lot more to support local sports rather than be generous with foreign sponsorships.

Olympic Council of Malaysia (OCM) secretary-general Datuk Sieh Kok Chi said the carrier's support has been quite minimal so far. "At the moment, all we get are minimal rates for flights domestically and within South East Asia. There is no cash funding involved.

"But something is better than nothing. They have helped us, I don't want to be ungrateful by saying that they have not helped at all. However, I'm disappointed as I feel that they can offer much more. But we got to live with what we have."

Sieh continued by saying that OCM does not have constraints in finding sponsors, adding that AirAsia could definitely afford to be more generous.

While details are still sketchy on the National Football League (NFL) deal with the Oakland Raiders, the sponsorship is likely to be worth at least RM1 million. At the sponsorship announcement by AirAsia group chief executive officer Datuk Seri Tony Fernandes and Oakland Raiders owner Mark Davis, the airline will also unveil the Oakland Raiders livery on AirAsia's aircraft.

The event is expected to be attended by Oakland Raiders legend Ted Hendricks and famed Raiderettes (official cheerleaders of the Oakland Raiders) April Dizon, Angel McCoy and Amanda Voecks.

Contacted yesterday, Fernandes declined to say much about the deal.

"There will be a Press conference on Friday (tomorrow) and it will not be fair to others if I respond (to your questions). Everything will be revealed on that day," said Fernandes, who turned AirAsia into Asia's No 1 low budget carrier. AirAsia has expanded its routes outside Asia to include Australia and London. It had announced in March that it was looking at the US and Middle East sectors as well.

And one way the carrier has made headway in globalising its brand name is by involving itself in sports sponsorships - mainly overseas.

Among the millions AirAsia has pumped for international presence includes a reportedly S$1million (RM2.3m) sponsorship for a basketball team in Singapore called Singapore Slingers, which takes part in the National Basketball League.

While the value of its other major sponsorship deals were not revealed, the endorsement of professional referees in the English Premier League, the AT&T Williams team in Formula One, and now with Oakland Raiders, run into millions.

To get an idea of just how much money is being splurged, AirAsia had earlier this year flirted with the idea of being the jersey sponsors for Manchester United - in a deal which would have cost a staggering US$100m (RM340m).

Even a football team in Thailand received three million bahts (RM300,000) in the form of travel, a privilege the Olympic Council of Malaysia (OCM) enjoys with the carrier.

AirAsia was also the main sponsors for the Asia Cup hockey tourney in Kuantan, for which it reportedly provided RM500,000.

Why is Air Asia sponsoring NFL football? They don't even fly here?

I love Air Asia and have flown them in the past, but until they serve the mainland US, why would they spend money this way?

I sure hope this means Air Asia is coming to LAX soon,

CEO: AirAsia keen to fly to US destinations
Saturday June 27, 2009
By LEONG HUNG YEE

http://biz.thestar.com.my/archives/2009/6/27/business/b_09tony.jpg

Datuk Tony Fernandes (left) and Mark Davis at the
briefing to announce AirAsia's sponsorship of the Raiders team.

SEPANG: AirAsia Bhd, which has just signed a sponsorship deal with National Football League’s (NFL) Oakland Raiders, is keen to fly to US destinations.

Group chief executive officer Datuk Tony Fernandes said the budget airline would fly to North America once it sorted out the legal issues and obtained clearance from the respective countries. However, he did not give a timeline.

“It (the United States) is a market that we’re very keen on,” Fernandes told a press conference to announce its sponsorship of the Raiders yesterday.

AirAsia also unveiled the Raiders’ aircraft livery. Also present at the event were Raiders owner Mark Davis and legends Ted Hendricks, Rod Martin and Cliff Branch. The team’s official cheerleaders Raiderettes were also present.

Its associate long-haul, low-cost carrier AirAsia X (http://www.skyscrapercity.com/showthread.php?t=706394&page=24)currently flies to several destinations in the region, Europe and Australia.

AirAsia X chief executive officer Azran Osman-Rani said the carrier was very “keen to secure rights” to the United States.

“The aircraft donned with the Oakland Raiders brand symbolises our ambition to open up the US market as our future growth area.

“We’ll be flying this aircraft into Oakland at the start of this coming NFL season,” Azran said.

Fernandes said the airline was looking at New York City, Los Angeles and San Francisco, and one day it would like to go to Hawaii.

“America is a new chapter for us. We’re reaching out to a new market. The partnership with Oakland Raiders is expected to be the catalyst in promoting the AirAsia brand in the United States,” he said.

He added that the partnership was part of its strategy to develop AirAsia into a global brand.

To a question, Azran said it had been discussing with the NFL team for about six months before the deal was concluded.

However, he declined to reveal the cost of the partnership but said it was a “long-term” plan.

“By promoting Malaysia in North America, we hope to bring more travellers from that part of the world to Malaysia, which will help boost tourism and the local economy,” Azran said.

On criticism that AirAsia only sponsored overseas sports team, Fernandes said it was among the top four local corporates to sponsor local sports teams.

“We have just sponsored the Malaysian Hockey Federation by being the title sponsor and the Women’s World Table Tennis Championships 2008,” he said.

In a separate press conference, AirAsia chairman Datuk Abdul Aziz Abu Bakar said it had been making monthly payments to Malaysia Airports Holdings Bhd (MAHB).

“However, there is a portion outstanding, pending decision on AirAsia’s requests for MAHB to review its charging mechanism,” he said.

Abdul Aziz said some Members of Parliament who brought up the issue had misconstrued that AirAsia had not paid MAHB since 2002.

“We have been paying MAHB on a monthly basis. For the first five months of this year, we’ve paid over RM40mil. AirAsia has, since 2003, paid MAHB a total of RM404mil. In 2008, we paid RM117mil.”

Abdul Aziz said AirAsia had been overcharged by about RM100mil by MAHB.

“Since moving to the low-cost carrier terminal in March 2006, AirAsia had been overcharged by no less than RM12mil.

“There are also growth incentives on the increase in the number of passenger throughput and landings worth no less than RM90mil, for which both parties have been in discussion but yet to reach a conclusion,” he said.

The issue was not about AirAsia not making payments to MAHB, Abdul Aziz stressed, adding that he welcomed the Prime Minister’s announcement on the appointment of a consultant to resolve this and other outstanding issues between the two parties.

Source: http://biz.thestar.com.my/news/story.asp?file=/2009/6/27/business/4207026&sec=business

MALAYSIA AIRLINES "FREEDOM OF SPACE" Boeing 777
by Tom Turner - SeaTeamImages / AirTeamImages
http://www.flickr.com/photos/11606523@N06/2542413655/

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Malaysia Airlines wins KLIA award
Published: 2009/06/28

SEPANG, June 27 (Bernama) -- National carrier, Malaysia Airlines was named Airline of the Year for third consecutive years at the Annual KLIA Award here tonight.

AirAsia won the Low-cost Airline of the year Award, while AirAsia Indonesia was given Foreign Airline of the Year Award.

For cargo category, MasKargo won Airline of the Year Award and Korean Air received Foreign Airline of the Year Award.

KLIA Awards, organised by Malaysia Airports Holdings Bhd (MAHB) offers recognition to 15 different categories of airline and service providers operating in KLIA.

The winners received the award either based on passenger movement, strong growth, good sales performance, international recognition as well as service performance - all based on 2008 performance.

The awards were presented by the guest of honour, Deputy Transport Minister Datuk Robert Lau Hoi Chew.

Also present were MAHB chairman Tan Sri Dr Aris Othman and managing director Tan Sri Bashir Ahmad.

Commenting on the award, Malaysia Airlines executive Director/chief financial officer Datuk Tengku Azmil Zahhruddin Raja Abdul Aziz said: "We are very happy to win the award. We have won the award over the last couple of years.

"Of course Malaysia Airlines and MAHB have symbiotic relationship. Airport doesn't exist without the airlines and airlines do not exist without airport, he told Bernama here after receiving the award on behalf of Malaysia Airlines.

Being the biggest carrier in KLIA, Tengku Azmil said: "We do feel that we have the sense of responsibility to also assist KLIA as a hub," he said.

-- BERNAMA

---

Update:
@ Kuching International Aikrport, Sarawak



http://img197.imageshack.us/img197/6268/26062009793rd4.jpg

AirAsia X newest metal, the Airbus 340 made a pit stop a few times in KCH!

NFL Oakland Raiders

Airasia X A340 landed in KIA

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MAS, AirAsia win awards
Monday June 29, 2009

http://biz.thestar.com.my/archives/2009/6/29/business/b_06airlines.jpg

Mas and AirAsia aircraft

SEPANG: National carrier Malaysia Airlines (MAS) was named Airline of The Year 2008 for the third consecutive year at the Annual KLIA Award here on Saturday.

AirAsia won the Low-Cost Airline of The Year award while AirAsia Indonesia was given Foreign Airline of The Year title. For cargo category, MasKargo won Airline of The Year award while Korean Air was named Foreign Airline of The Year.

The KLIA Awards, organised by Malaysia Airports Holdings Bhd (MAHB), offers recognition to 15 different categories of airlines and service providers operating at KL International Airport.

The awards were presented by Deputy Transport Minister Datuk Robert Lau Hoi Chew. — Bernama

AirAsia World's 1st AT&T Williams Formula One A320 Aircraft

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Manchester United colour scheme

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Source:
http://www.flickr.com/photos/darylchapman/3352955643/
http://www.flickr.com/photos/vipula/3276320195/in/set-72157613746256555/
http://www.flickr.com/photos/vipula/3276321681/in/set-72157613746256555/
http://www.flickr.com/photos/smittyboy/121775973/
http://www.flickr.com/photos/speedbirdcathay/3075463595/in/photostream/
http://www.flickr.com/photos/speedbirdcathay/3075459423/
http://www.flickr.com/photos/27990063@N06/2607557213/

Any news on Air Asia coming to Sydney?
Would love them to by the end of the year so i can pop over to SE asia.

Route Map
Check kere > http://www.airasia.com/site/my/en/creditCard.jsp;jsessionid=FBDE99F8AC2BBA969072BF1C06310921?id=1b04a6d8-ac1e00ae-511e0a00-167ce76f&reference=routemap

http://www.picamatic.com/show/2009/06/29/03/54/4175300_765x665.JPG

http://www.airasia.com/images/cookie/lp_maingirls5.jpg

http://www.airasia.com/images/cookie/no_admin.gif

Any news on Air Asia coming to Sydney?
Would love them to by the end of the year so i can pop over to SE asia.

NOW EVERY ONE CAN FLY!
AUSTRALIA > AIR ASIA X (http://www.skyscrapercity.com/showthread.php?t=706394&page=24) (TRA LONG) > http://www.airasia.com/site/au/en/home.jsp

A WARM WELCOME TO MALAYSIA AND BEYOND SE ASA!

LOL you didn't answer him, nazrey

@demanjo... Sydney is expected to come soon, negotiations are still under way.

I know ..I hope he can see the route map above! Cheers em! :cheers:

MAS expects new aircraft in time for global up-turn
Monday June 29 2009

KUALA LUMPUR, June 29 — Malaysia Airlines (MAS) is set to receive its new aircraft in tandem with the recovery in global economy, its executive director/chief financial officer Datuk Tengku Azmil Zahruddin Raja Abdul Aziz said.

He said now was not a good time to take delivery of the aircraft.

“The B737-800 aircraft is expected at end-2010 and the A380 by 2011. So we are expecting to get the aircraft at about the time we are hoping the economy will then start to recover,” he told Bernama at the Annual KLIA Awards ceremony in Sepang last Friday.

At the event, MAS was named ‘Airline of the Year’ for the third consecutive year.

AirAsia won the ‘Low-cost Airline of the Year’ award and AirAsia Indonesia ‘Foreign Airline of the Year’ award.

For cargo category, Malaysia Airlines Cargo Sdn Bhd won ‘Airline of the Year’ award and Korean Air received ‘Foreign Airline of the Year’ award.

KLIA Awards, organised by Malaysia Airports Holdings Bhd, offers recognition to 15 different categories of airline and service providers operating in Kuala Lumpur International Airport (KLIA).

The winners received the award either based on passenger movement, strong growth, good sales performance, international recognition as well as service performance – all based on 2008 performance.

The awards were presented by Deputy Transport Minister, Datuk Robert Lau Hoi Chew.

Tengku Azmil said all the airline’s plans it had announced earlier were in place.

MAS has launched its global low-fare campaign which would see it selling some six million seats at low fares to stimulate travel demand.

The low fares were only made available for lean flights, in line with the airline’s dual-pricing strategy.

MAS would also hold more than 70 travel fairs globally until 2010 and that the airline’s Stimulus Package, launched earlier this year, has seen sales increased by up to 30 per cent.

On whether the airline will cut its routes, he said: “We haven’t cut routes for a while, (but) we have reduced capacity.

“I think MAS is not the odd one out. Airlines worldwide are reducing capacity.”

He said globally, the capacity cut was about seven to eight per cent although that would be less than the reduction in passenger numbers.

Tengku Azmil said during times like this, MAS wanted to make sure it would remain viable.

“What we are doing is not much different from what other airlines are doing.

“Singapore Airlines (SIA) has cut its flight capacity further due to a fall in demand for air travel,” he said.

Recently, SIA announced it planned to cancel more than 200 flights before year-end, especially in the premium segment. – Bernama

ive booked about 5 internal flights thailand-malaysia-vietnam etc for the end of the year. i just havent booked my flights to malaysia. i was hoping i didnt have to leave from gold coast (far from sydney), or use malaysian air (expensive in december). so i was hoping sydney would start up and i might be able to get a reasonable fare...
heres hoping

^^
Airbus A280. Its A380

From Tourism Australia:
"Air Asia X increased these services to daily frequencies (Melbourne) on 1 March 2009 and plans to launch daily Sydney services (using its high-density configured A330s) on 26 October 2009."

http://www.tourism.australia.com/content/Markets/Aviation%20profiles09/Aviation%20profile%202009%20-%20Malaysia%20180609%20%5BCompatibility%20Mode%5D.pdf

seems reliable???

AirAsia eyes RM500m
By Presenna Nambiar
Published: 2009/07/01

AirAsia Bhd (5099) is looking at raising about RM500 million by placing out up to a fifth of its shares to private investors to pay off some debt, says its chief executive officer.

AirAsia's total debt stood at RM6.9 billion as at the end of March 31 2009.

"Local and foreign investors (demand) drove us (to placing out more shares). There is a huge appetite for our shares, and obviously as an airline, it is always good to have cash. Liquidity is also good in the market now and so we decided on a private placement," AirAsia Bhd chief executive officer Datuk Seri Tony Fernandes (pic) said.

He said the budget carrier has yet to hire bankers for the placement and has not decided on whether it will stagger the placement (10 per cent now and another 10 per cent later) or do an outright 20 per cent placement.

This is the second time AirAsia is placing out shares after its initial public offering in 2004.
"If there was concern on AirAsia, I think the prime minister's (Datuk Seri Najib Razak) announcement on wanting to create a level playing field has removed any doubts that equity investors may have had on AirAsia's chances. It is a great environment to raise equity," Fernandes said.

Fernandes was speaking on the sidelines of Invest Malaysia 2009 in Kuala Lumpur yesterday.

"It is what I have been asking for, for seven years. Today will really unleash the enormous potential that AirAsia can achieve and we are thrilled by the prime minister's speech," he said in response to Najib's call for more level playing field between GLCs and private firms.

Besides calling for greater competitiveness and performance from GLCs such as those in electricity and airport businesses, Najib also stated that the government will not help GLCs to the detriment of private sector competition.

Fernandes has been lamenting on the protective nature of the aviation industry in Malaysia since the setting up of AirAsia in 2002, starting with the placement of Firefly, a unit of Malaysia Airlines, in Subang, to the aeronautical charges imposed by Malaysia Airports Holdings Bhd.

He also called for regulation of monopoly industries to ensure that there is transparency in pricing and costing.

Fernandes said the key is not really to have competition within the country but to have competitive industries that can go global and create bigger opportunities.

AirAsia X’s existing investors not taking up AirAsia new shares
Written by Gan Yen Kuan
Wednesday, 01 July 2009 10:57

KUALA LUMPUR: Potential investors buying up to 20% of AirAsia Bhd under the low-cost carrier’s proposed share placement exercise will not be those who have already invested in its sister airline AirAsia X, said AirAsia group chief executive officer Datuk Seri Tony Fernandes.

“No… not the same (investors),” he told The Edge Financial Daily on the sidelines of Invest Malaysia 2009 here yesterday.

Earlier, he told reporters that AirAsia expected to raise up to RM500 million from the proposed share placement, which would be carried out in the next two months, according to a report by the Associated Press.

AirAsia announced on Monday the proposed placement of new shares but no details were given as it had yet to appoint agents to arrange the deal.

Airline business usually invites scepticism particularly in its vulnerability under the current global economic conditions.

But when Fernandes and his counterparts started AirAsia X — a low-cost, long-haul airline — they managed to rope in investors like Virgin group’s Richard Branson, Bahrain-based Manara Consortium and Japan-based Orix Corp.

OSK Research said in a report yesterday that it was not surprised with AirAsia’s proposed share placement.

It noted that the proposal would require shareholders’ approval at an EGM, apart from obtaining approval from the Securities Commission, as the proposed placement exceeded the allowable 10% of issued and paid-up share capital.

The research house has made a hypothetical assumption to assess the impact of a 20% placement on the group’s financial position. Assuming a placement price at a 10% discount to Monday’s closing price of RM1.13, AirAsia might raise some RM490 million from this exercise, it said.

“When backdated to March 31, 2009, the company’s net gearing level may improve from 3.7 times to only 2.7 times as a reduction in net debt will conversely increase shareholders funds,” OSK Research said.

“The equity stake of the company’s major shareholder Tune Air Sdn Bhd may be diluted from 30.7% to 25.6% in the event the entire placement is taken up by third party investors.

“Considering AirAsia’s aggressive aircraft purchases, we believe the exercise may only temporarily reduce the company’s gearing, but the debt level is expected to quickly build up again on the delivery of new aircraft.”

Meanwhile, HwangDBS Vickers Research said the placement would enlarge AirAsia’s share base to 2.85 billion shares, which would potentially dilute the research house’s forecast earnings per share for the company to 4.9 sen (from 5.8 sen previously) in FY09, and to 6.1 sen (from 6.7 sen) in FY10.

AirAsia celebrates inagural KL-Taipei flight
Published: 2009/07/01

AIRASIA'S first flight from Kuala Lumpur to Taipei departed at 10am this morning, carrying 338 guests.

AirAsia's Group Chief Executive Officer, Datuk Seri Tony Fernandes said the flight had 88 per cent load, carrying guests which included president of the Malaysian Friendship and Trade Centre in Taipei, Datuk Abdullah Mohd Salleh and AirAsia X CEO, Azran Osman-Rani.

AirAsia also celebrated its inaugural flight from Tapei today with touched down at 8.35pm at the Low Cost Carrier Terminal (LCCT) of the KL International Airport (KLIA) with 335 guests on board.

"The new Kuala Lumpur-Taipei route with five direct flights weekly operated by AirAsia's low-cost long-haul affiliate,
AirAsia X, received a remarkable response from travellers when it opened for sale on April 24, 2009," Fernandes said at the Kuala Lumpur-Taipei inaugural flight celebration to receive AirAsia's first guests from Taipei.

Minister of Transport, Datuk Seri Ong Tee Keat and Minister of Tourism, Datuk Seri Dr Ng Yen Yen were also at the event to welcome the visitors.

According to Fernandes, all promotional seats for the Kuala Lumpur-Taipei flight services offered at RM101 per way were snapped up within 12 hours after the sales announcement, with an estimated 80,000 guests flying the route until the year's end.

"This represents an average load factor of over 80 per cent on the 383-seater Airbus A330," Fernandes said.

Fernandes also said there were no cancellation of flights with the H1N1 flu global epidemic and that sales were up since it abolished its administration fees.

"We are also starting new routes from Miri to Singapore," he said. - Bernama

MAS has comfortable cash level, says CFO
Published: 2009/07/02

MALAYSIA Airlines (MAS) (3786) has no plans of raising cash at this point, says its top official.

"I think if something comes up, then maybe. But at this point, our cash level is comfortable as we are net cash and don't need to raise additional funds," MAS chief financial officer Tengku Azmil Zahruddin told Business Times on the sidelines of Invest Malaysia in Kuala Lumpur yesterday.

Meanwhile, managing director and chief executive officer Datuk Seri Idris Jala said forward bookings remain resilient and the current load factor stands at some 69 per cent, up from 56 per cent recorded in its first quarter of 2009.

"We are just worried that if there are any more negative comments on (Influenza A) H1N1 virus, then we will be back to where we don't like to be. Forward bookings are good with the exception of North America. All other regions are equal to last year," he said.
Idris added that the airline was not reducing capacity further for now.

MAS offers Business First deal
Published: 2009/07/02

MALAYSIA Airlines' customers will enjoy an upgrade to first class while paying business class fares with the national carrier's Business First deal.

In a statement today, the airline said customers flying on the B747 aircraft to London, Los Angeles, Sydney and Buenos Aires now have the choice of being upgraded to first class with the Business First deal while accruing Enrich miles at 150 per cent.

The perks of flying first class include 30-kilogramme baggage allowance, advance seat selection, and no charge for any changes in bookings, it said.

"In line with the vision of becoming the World Five Star Value Carrier, Malaysia Airlines is committed to providing the highest quality products and services at affordable prices," said the airline's senior general manager, network and revenue management, Dr Amin Khan said.

He also said that the Business First deal will soon be offered to more destinations like Taipei, Johannesburg and Cape Town to cater to more customers worldwide.

Customers can purchase tickets for the Business First deal from any Malaysia Airlines' ticket office and call centre.

Bookings can also be made at more than 600 participating travel agents nationwide from July 6, 2009. -- Bernama

MALAYSIA Airlines' first class > http://www.malaysiaairlines.com/my/en/flymh/cabin/fclass/first-class.aspx

Foreign interest in AirAsia rises to 38pc
Published: 2009/07/02

AIRASIA Bhd's foreign shareholding in the company rose 0.12 per cent to 37.98 per cent as at June 30, 2009 from 37.86 per cent as at Nov 28, 2008. -- Bernama

> http://www.btimes.com.my/Current_News/BTIMES/articles/20090702220522/Article/index_html

MAS stock suspended from tomorrow
Published: 2009/06/11

TRADING in Malaysian Airline System shares has been suspended at its request from tomorrow, said stock exchange regulator Bursa Malaysia today.

The national airline is due to release first quarter earnings tomorrow. - Reuters

AirAsia to fly from KK to Brunei from September 9
Published: 2009/07/03

BUDGET carrier AirAsia Bhd (5099) will begin flying between Kota Kinabalu and Brunei from September 9 2009.

The new service will be the carrier's sixth international service from Kota Kinabalu and second international service from Brunei.

In a statement issued yesterday, AirAsia said it will be offering all-in-fare from RM29 one way, available only online via www.airasia.com

The daily flight from Kota Kinabalu and Brunei, opens for sale for the booking period from July 3 to 12 2009 for the travel period from September 9 to April 30 2010.
Kota Kinabalu is AirAsia's second and biggest hub after Kuala Lumpur, serving nine domestic routes that include Penang, Johor Baru, Kuala Lumpur, Kuching, Sibu, Miri, Labuan, Tawau, Sandakan, while the international sectors are Macau, Shenzhen, Clark, Jakarta and Singapore.

Fly first class on MAS business class fares
Written by The Edge Financial Daily
Friday, 03 July 2009 00:00

KUALA LUMPUR: Malaysia Airlines is offering first class seats for business class fares for some of its international flights.

In a statement yesterday, MAS said customers flying on B747 aircraft to London, Los Angeles, Sydney and Buenos Aires now had the choice of being upgraded to first class with Business First while accruing Enrich miles at 150%.

It said the perks of flying first class included 30kg baggage allowance, advance seat selection, and no charge for any changes in bookings.

Malaysia Airlines' senior general manager, network and revenue management, Dr Amin Khan said: "With Business First, customers now have the choice to continue flying first class and paying only business class fares."

He said Business First would soon be offered to more destinations like Taipei, Johannesburg and Capetown.

AirAsia eyes more destinations in Asia Pacific, Middle East
2009/07/04
KUALA LUMPUR, SAT:

AirAsia Bhd, the low cost carrier which services an extensive network with 122 routes covering more than 65 destinations, is seeking to serve more major and small cities in Asia-Pacific and the Middle East.

Through its corporate philosophy of ''Now Everyone Can Fly'', the leading low cost airline in Asia says it is committed to serve three billion people who are "currently underserved with poor connectivity and high fares".

"We will go anywhere over four-hour destinations for our AirAsia X and below four-hour destinations for AirAsia," said AirAsia chairman Datuk Aziz Bakar in an interview with Bernama.

AirAsia X is the low cost long-haul affiliate carrier of AirAsia that currently flies to destinations in China, Australia and the UK.

The carrier is planning to add two to three new routes before end of this year in China such as Xi'an and Chongqing, and four new routes in India comprising Bangalore, Trivandram, Chennai and Cochin, Aziz said.
He said the airline has applied to fly into South Korea, and is also eyeing other destinations in the Middle East and Australia like Sydney.

"The time is right for us to fully take advantage of the current economic downturn and be prepared when the economy turns around.

"I think many full service airline passengers are turning to non-frill service because they tend to spend less and save more," he said.

Aziz said AirAsia was also promoting its services aggressively to stimulate demand.

"The demand is there and people will fly if they get cheap fares. Passengers only pay the ticket but when they pay for food, we have to make sure it is value for money," he said.

Aziz said AirAsia''s average load factor was about 73 to 75 percent in the last three months, while AirAsia X had been getting very strong load factor.

The London flight's average load factor was between 80 and 83 percent.

Asked on the impact of influenza A (H1N1) virus, he said the airline''s forward booking was not affected very much in the last two months but it was continuing with its aggressive marketing.

"There is H1N1, but if we are to offer 5,000 free tickets to fly to any destinations within Asia, I'm sure it would be fully taken up within three to four hours," he said.

Commenting on the new low-cost carrier terminal (LCCT), Aziz said AirAsia hoped the airport would be completed on time to accommodate its expansion plan.

"We can't just take the delivery of the new aircrafts with no place to park," he said.

AirAsia also hopes the commercial terms are agreed and accepted as soon as possible, he said.

It is understood that the new LCCT will be built by Malaysia Airports Holdings Bhd and work is expected to start this month, and scheduled for completion by the third quarter of 2011.

MH KLIA Golden Club Lounge
by IPJ Mike
http://www.flickr.com/photos/ipjmike/201368696/in/set-72157594188257937/

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Malaysia Airlines Golden Lounge: First Class (KLIA Satellite Terminal)
by YarnMan

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AirAsia to launch Penang-HK route
Published: 2009/07/06

AIRASIA today announced a new service from Penang to Hong Kong starting July 31 as part of the budget carrier's plan to establish Penang as its eighth hub.

According to the airline, the service is timely and will be well received by many as it has great advantage due to its extensive route network and low fares.

AirAsia is also increasing its second frequency to Singapore from Penang to cater to the demand from leisure and business travellers.

The new sector to Hong Kong and the introduction of second frequency to Singapore opens for sale for the booking period from July 7 to 12 for the travel period from July 31, 2009, to April 30, 2010.

AirAsia said in a statement today that it will be offering an all-in-fare from RM99 to Hong Kong and RM51 to Singapore to mark the launch of these sectors.

The airline, through its holiday division GoHoliday, is offering guests free rooms upon booking at its partner hotels in Hong Kong.

The promotion is valid via goholiday.airasia.com and available on a first come, first served basis.

"At a time when some airlines are cutting routes and downsizing capacity, we are breaking the trend with our aggressive expansion plans, increasing frequencies where there is proven demand, which certainly is for the Penang-Hong Kong and Penang-Singapore routes," said the airline's regional head of commercial, Kathleen Tan.

"We are also hoping to introduce new sectors to Shenzen and Guangzhou from Penang in the future," she said.

Tan said the Hong Kong route formed part of AirAsia's strategy to establish Kuala Lumpur as a gateway to other Asian destinations.

The airline's relationship with its long-haul affiliate AsiaAsia X will also connect traffic from Australia and the United Kingdom to the Chinese cities, she said. - Bernama

flying with these guys in just a few weeks.

hey, I heard Air Asia cancel all domestic flights in Indonesia, and rumor said it's for good, any one knows about it?

Chicken Satay (Traditional cuisine)
by Dr. Drew
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Vegetarian soup noodle (MAS Regional Golden Lounge)
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MAS box meal with cover
by b.d30

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Mixed satay skewers on Malaysia airlines
by Allerina & Glen MacLarty
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by NurbsPlanet

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by zacsg10

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Child Meal Box
From flickr

http://www.picamatic.com/show/2009/07/06/08/45/4332764_495x657.JPG

no idea!

AirAsia X (Airbus A330-300)
by Mir ZafriZ
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by dickbrain99
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Malaysia Airlines Golden Lounge: First Class (KLIA Satellite Terminal)
by YarnMan
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Malaysia Airlines Golden Lounge: First Class (KLIA Satellite Terminal)
by YarnMan
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Malaysia Airlines Golden Lounge: First Class (KLIA Satellite Terminal)
by YarnMan
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Malaysia Airlines Golden Lounge: First Class (KLIA Satellite Terminal)
by YarnMan
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Malaysia Airlines Golden Lounge: First Class (KLIA Satellite Terminal)
by YarnMan
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Malaysia Airlines Golden Lounge: First Class (KLIA Satellite Terminal)
by YarnMan
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Malaysia Airlines Golden Lounge: First Class (KLIA Satellite Terminal)
by YarnMan
http://www.flickr.com/photos/yarnman/2560725703/in/set-72157605497100886/

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FOr food itself we can travel:lol:

Kuih: Malaysia Airlines Golden Lounge: First Class (KLIA Satellite Terminal)
by booflick!
http://www.flickr.com/photos/booflick/2597870510/

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Nice shot

^ by the same author :

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Malaysia Airlines Golden Lounge: First Class (KLIA Satellite Terminal)
by booflick!
http://www.flickr.com/photos/booflick/2597052687/

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Malaysia Airlines Golden Lounge: First Class (KLIA Satellite Terminal)
by booflick!
http://www.flickr.com/photos/booflick/2597849208/

http://farm4.static.flickr.com/3180/2597849208_1c53ee10ab_b.jpg

Malaysia Airlines Golden Lounge: First Class (KLIA Satellite Terminal)
by YarnMan
http://www.flickr.com/photos/yarnman/2561546292/

http://farm4.static.flickr.com/3151/2561546292_4023f79741_o.jpg

flying with these guys in just a few weeks.

same here, BKK-JKT and JKT-SBY
i'm curious about it....737 or a320...and about the service..
are they really doing difficult (you have to pay, or like, it's ok) if you got an overload of 2-3 kg? (ive chosen for the 20 kg baggage option)

hey, I heard Air Asia cancel all domestic flights in Indonesia, and rumor said it's for good, any one knows about it?

i forgot where i read it, but i heard they will discontinuing some domestic flights because of the heavy competition in indonesia (mandala, lion air, sriwijaya, batavia and garuda) and are going to focus more on international flights between indonesia and the SEA region. (flights to manila and ho chi minh city will start in sept, flights to perth will begin next week)
edit: i found the article

Regional travelers boost short-haul flights
Benget Besalicto Tnb. , The Jakarta Post , JAKARTA | Wed, 06/24/2009 11:11 AM | Business

With short-haul travel within the Asian region showing robust growth, as of next month Indonesia AirAsia plans to increase its flights for existing routes.
Dharmadi, the president director of Indonesia AirAsia, a subsidiary of the Malaysian budget carrier AirAsia, told reporters in Jakarta on Tuesday that flights for existing Jakarta-Singapore and Denpasar-Singapore routes would be doubled to four times a day.
Flights on Bandung-Singapore route will also be increased to two while flights on the Bandung-Kuala Lumpur route increased from two to three flights a day.
“Later in August and September we’ll add new regional routes. This is part of our strategy to shift our flight services from mainly domestic routes to mainly regional ones,” Dharmadi said.
The new routes would include Denpasar-Perth (Australia), scheduled to commence July 17, Jakarta-Saigon (Vietnam) and Jakarta-Manila (the Philippines) scheduled to commence in September, he said.
Currently, 80 percent of Indonesia AirAsia flights are domestic while the other 20 percent are regional.
The company is aiming to change this ratio to 75 against 25 percent, Dharmadi said.
“We have seen short-haul travel within the Asian region growing between five and ten percent over the last two years.
“This is partly been caused by a decline in long-haul travel to destinations outside the region,” Dharmadi said.
Dharmadi added that other airlines, such as Jetstar, ValueAir and Tiger, had been also targeting the rising short-haul market.
Indonesia AirAsia plans to close domestic routes from Jakarta to Batam, Padang, Balikpapan and Ujungpandang, while maintaining domestic routes to Surabaya, Medan, Denpasar, Bandung and Pekanbaru.
As part of its strategy to cater for the growing short-haul travel market, the company is also aiming to replace its entire fleet of Boeing aircraft with Airbus passenger jets.
“Previously, our 15 aircraft were all Boeing jets. We’ve replaced seven of these with Airbus aircraft, and hopefully within the next few years we’ll be able to replace all of them,” he said.
The airline, Dharmadi said, was also planning to have a fleet of 45 aircraft, all Airbus, within the next five years.
Earlier, it had announced its plans to open at least 10 international routes to Indonesia this year to help reach its target to carry 3.5 million passengers from Southeast Asia’s largest economy.
The company hoped to generate Rp 2 trillion (US$185 million) in revenue from Indonesia this year, compared to the Rp 1.6 trillion from carrying 2.4 million passengers in 2008.
Euromonitor International recently reported that short-haul travel will continue to dominate tourism in Asia for the next 10 years.
About 90 percent of all outbound departures from countries such as Vietnam, Cambodia, Laos and Macau, were to destinations within the region.
Price, familiarity and changing consumer lifestyles had all benefitted short-haul travel in the region, the Euromonitor report said.
The popularity of short-haul travel in Asia is set to intensify further over the next ten years, thanks to a combination of positive factors fuelling growth.

source: jakartapost.com

AirAsia up on plan to sell shares to one fund
Published: 2009/07/07

AirAsia Bhd, Southeast Asia’s largest low-cost airline, rose for the first time in three days in Kuala Lumpur trading after saying it may sell all of a planned new share issue to a single investor.

The stock added 1.8 per cent to RM1.12 at 9:04am.

AirAsia, which is planning to issue as much as 20 per cent more stock, is considering selling the stake to a single institutional fund or a strategic investor as part of a plan to reduce debt, chief executive officer Datuk Seri Tony Fernandes said in an interview late yesterday.

A strategic investor might be a private equity firm or a partner in the tourism industry, said Fernandes. He said he plans to meet potential buyers this month and the share sale should be completed in early August. -- Bloomberg

hey, I heard Air Asia cancel all domestic flights in Indonesia, and rumor said it's for good, any one knows about it?

Seems to be like that... Domestic flight from Jakarta to Batam, Makassar, Balikpapan, and Padang will be ended on August 19, while flight to Pekanbaru will be closed maybe on Feb 2010.

That means only Medan, Yogyakarta, Surabaya, and Bali left for domestic flights from Jakarta (just major cities, huh....). Why don't they open Jakarta - Manado flight? Manado is a popular tourist destination in Eastern Indonesia :ohno:

AirAsia establishes Penang as a hub with direct flight to Hong Kong
Written by The Edge Financial Daily
Monday, 06 July 2009 21:05
> http://www.theedgemalaysia.com/business-news/18024-airasia-establishes-penang-as-a-hub-with-direct-flight-to-hong-kong.html

SEPANG: AirAsia Bhd is establishing Penang as its eighth hub with the inclusion of another international flight from the state to Hong Kong starting July 31, 2009.

In a statement today, AirAsia said the new service was its sixth international service from Penang after Singapore, Bangkok, Medan, Jakarta, Macau and the third international service from Hong Kong after Kuala Lumpur and Bangkok.

Its other hubs are Kuala Lumpur, Johor Bahru, Kota Kinabalu, Bandung, Bali, Jakarta, Bangkok and a "virtual hub" in Singapore.

AirAsia said the new sector to Hong Kong and the introduction of the second frequency to Singapore, opened for sale for the booking period from July 7-12 for the travel period from July 31, 2009, to April 30, 2010.

AirAsia will be offering an all-in-fare from RM99 to Hong Kong and RM51 to Singapore to mark the launch of these sectors.

AirAsia regional head of commercial Kathleen Tan said: "At a time when some airlines are cutting routes and downsizing capacity, AirAsia is breaking the trend with our aggressive expansion plans, increasing frequencies where there is proven demand, which there certainly is for the Penang-Hong Kong and Penang-Singapore routes."

Indonesia AirAsia to start new flights, boost services on existing routes
Tuesday, June 30, 2009, 10:56
> http://www.dancewithshadows.com/aviation/indonesia-airasia-to-start-new-flights-boost-services-on-existing-routes/

Indonesia AirAsia is starting new flights as well as increasing the number of flights on the existing routes.

The carrier will start flying from Denpasar in Indonesia to Perth in Australia from July 17, 2009; from Jakarta to Saigon in Vietnam and from Jakarta in Indonesia to Manila (the Philippines) in September 2009; and daily flights between Jakarta and Manila from September 2009.

Indonesia AirAsia is a budget carrier based in Jakarta, Indonesia, and the Indonesian associate airline of the Malaysia-based low-cost airline AirAsia.

Dharmadi, president-director of Indonesia AirAsia, told reporters that the airline hoped that the demand for low-cost air travel would stay in 2009 and that it could attract a considerable number passengers travelling between Jakarta and Manila.

At present, the Jakarta-Manila route is dominated by Cebu Pacific, the low-cost airline based in the Philippines.

Indonesia AirAsia, according to Dharmadi, will double the existing Jakarta-Singapore and Denpasar-Singapore flights to 4 times a day.

While flights on the Bandung-Singapore route will be raised to 2 while flights a day, the service on the Bandung-Kuala Lumpur route will go up from 2 flights a day to 3 flights a day.

Later in August and September 2009, Dharmadi said, Indonesia AirAsia would add new regional routes as a part of the carrier’s strategy to shift services from “mainly domestic routes to mainly regional ones.”

As of now, while 80% of flights of Indonesia AirAsia is domestic, the rest 20% is regional. The airline said it was intending to change this to 75% and 25%, respectively.

Indonesia AirAsia also is planning to close domestic routes from Jakarta to Batam, Balikpapan, Padang and Ujungpandang. However, it will keep its domestic routes from Jakarta to Surabaya, Denpasar, Medan, Pekanbaru and Bandung.

The airline, according to its president-director, will replace its entire fleet of Boeing aircraft with Airbus aircraft as a part of its strategy to cater to the increasing demand for short-haul travel. It aims to have a fleet of 45 all-Airbus aircraft within the next 5 years.

Indonesia AirAsia had announced earlier that it would launch nearly 10 international routes to Indonesia in 2009.

HSBC AND AIRASIA JOIN FORCES IN CREDIT CARD
** The First in Indonesia, co-brand credit card between three international institution **
> http://www.hsbc.co.id/1/2/miscellaneous_en_US/about-us/media-release/news-highlight/hsbc-airasia-join-forces-in-credit-card

http://www.hsbc.co.id/1/PA_1_2_S5/content/indonesia/personal_banking/2_Credit_Cards/air_asia/images/airasia_ccrard_en.gif

HSBC and AirAsia are partnering in a business joint venture and have agreed to jointly manage and grow the HSBC – AirAsia Credit Card. AirAsia-HSBC Card will be the first collaboration of banking and regional airlines in Indonesia. The launching event was held today at Senayan City, and attended by Ravi Sreedharan, Head of Personal Finance and Services HSBC Indonesia, Javier Salgado, Head of Consumer Assets, HSBC Asia Pasific, Kathleen Tan, Regional Head of Commercial, AirAsia, Dharmadi, CEO AirAsia Indonesia, serta Ellyana Fuad, Country Manager VISA International.

The agreement brings together two powerful brands with a common commitment to outstanding customer care. It is consistent with HSBC’s strategic objective to grow its financial services and makes it one of the top credit card issuers in Indonesia. The transaction is also expected to achieve significant financial and operational benefits for AirAsia through HSBC’s customers. Together, AirAsia and HSBC will also increase the effectiveness of customer marketing and loyalty programmes and extend product choice for consumers.

Ravi Sreedharan, Head of PFS HSBC Indonesia, said: "Combining our expertise in banking with AirAsia’s experience in airline industry will create an exciting new force in Indonesia travel and financial services. This is very much in line with our strategy to build our business. AirAsia enjoys a unique position in the minds of our consumers and together we have the opportunity to nurture this for the mutual benefit of our business and the 5 million customers flying AirAsia every year."

In his remarks, Dharmadi, Chief Executive Officer Air Asia Indonesia, commented:" We are delighted to partner with HSBC. The collaboration of the two major brands will strengthen our commitment to be the world airlines. We value HSBC credibility as a global bank to be the perfect preference for this partnership The rapid expansion of AirAsia networks within the Asia Region will provide added value for HSBC customers and in the same time create business opportunity for both sides. With HSBC database as one of international bank with the largest credit card holder in Asia, this partnership will eventually enlarge the number of AirAsia potential customers and also support our e-commerce business."

Ellyana Fuad, Country Manager for Visa in Indonesia also commenting," We are proud to partner with Air Asia and HSBC to deliver the first co-brand Visa card with a regional airline to the Indonesian market. As the world's largest retail electronic payments network, Visa is committed to working in close collaboration with our partners to provide innovative electronic payment solutions, which offer consumers greater security, convenience and efficiency for all their payment needs. This is yet another strategic partnership that Visa has entered into with market leaders that puts the needs of our cardholders above all else."

AirAsia Card will provide customers with opportunity to convert their point rewards into electronic voucher that can be further use to any AirAsia transaction. Cardholders can redeem every 8.000 point from their rewards points for IDR.50.000 AirAsia voucher – provides more opportunity to enjoy flying with AirAsia. Different from the other co-brand card, which only count the reward points from any airlines tickets purchase, AirAsia-HSBC Card will count the number of reward points from any transactions, anywhere and everywhere customers made.

HSBC - AirAsia - Gesek Terus, Terbang Terus
> http://www.airasia.com/creditcard/id/index.html

http://www.picamatic.com/show/2009/07/07/09/01/4340259_832x557.JPG

MAS to suspend flights to stockholm, New York
Published: 2009/07/07

MALAYSIA Airlines will suspend its thrice-weekly services from Kuala Lumpur to New York via Stockholm vice versa effective October 2009.

In a statement in Kuala Lumpur today, the airlines said the last flight from Kuala Lumpur to New York will be on September 30 while the last flight departing New York will be on October 1 and Stockholm on October 2.

Malaysia Airlines commercial director Datuk Rashid Khan said the airlines has been serving New York since 1998 and Stockholm since 2004.

He said Malaysia Airlines has decided to suspend the services as demand has dropped due to the global economic crisis.

"The suspension is part of our continuous review to ensure that we retain the correct balance in network and fleet utilisation given supply and demand.

"We are making arrangements to notify all who are affected. Customers holding tickets issued prior to today for flights from Kuala Lumpur to New York/ Stockholm vice versa and Stockholm to New York vice versa will be eligible for a refund, without any fees. We can also make arrangements for them to fly with our partner airlines should they wish to continue with their journey," he said.

Rashid said Malaysia Airlines will continue to offer its thrice weekly flights from Kuala Lumpur to Los Angeles via Taipei.

It will maintain an office in New York and continue to offer services to the Big Apple via its airline partners.

Malaysia Airlines will also maintain an office in Stockholm, and customers can continue to connect to Stockholm via Amsterdam with Malaysia Airlines'' code share partner, KLM.

For further information, customers can contact their travel agents. Those who purchased their tickets via Malaysia Airlines' offices, call centre and website can contact Malaysia Airlines' call centre at 1300 88 3000 (Malaysia).

Customers in North America can contact the Los Angeles' office at 1 800 552 9264 while those in Sweden are to call the Stockholm office at 08-50530050. - Bernama

by Y-Xiang
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AirAsia to turn Penang into fourth hub in Malaysia
By Jeeva Arulampalam
Published: 2009/07/08

Penang is suitable as a hub because it is a tourist destination and a fast-growing industrial and trading centre, says AirAsia

BUDGET carrier AirAsia plans to turn Penang into its fourth hub in Malaysia as it continues to expand its network and add more destinations from the island.

AirAsia Bhd (5099) regional head of commercial Kathleen Tan said AirAsia will start flying from Penang to Hong Kong four times a week starting July 31, with one-way fares as low as RM99.

The airline will also be adding a second daily flight between Penang and Singapore due to popular demand. Its existing load factor for this route is above 90 per cent.

"Penang is suitable as a hub because it is a tourist destination and a fast-growing industrial and trading centre," Tan told Business Times in a phone interview yesterday.
She said Penang had previously been a virtual hub for AirAsia as it did not park planes at the Penang International Airport.

But the airline will start parking one plane at the airport as of July 31, as it starts flying to Hong Kong and adds its second daily frequency to Singapore.

"We are looking at a second plane next year as we continue to build Penang as a hub. There is heavy investment in terms of human capital and equipment in building a hub," said Tan but was unable to provide a quantum.

AirAsia has eight hubs in total now, including Kuala Lumpur, Johor Baru, Kota Kinabalu, Bandung, Bali, Jakarta, Bangkok and a "virtual hub" in Singapore.

"What we need right now is a good low-cost carrier terminal (LCCT) in Penang, as we can easily have up to 10 planes there. By comparison, we have six planes in Kota Kinabalu," she said.

Tan added that a LCCT in Penang will allow for lower passenger airport taxes, as passengers departing from Penang International Airport currently pay RM51 in airport taxes.

"In comparison, our passengers departing from KL (LCCT) and Kota Kinabalu (LCCT) only pay RM25," she said.

AirAsia will also look to add more international destinations from Penang next year, including Chennai and Bali. International flights from Penang now are to Singapore, Bangkok, Medan, Jakarta and Macau.

Tan added that concerns surrounding the influenza A (H1N1) virus was unlikely to dampen travel to Hong Kong, as many passengers wanted to capitalise on cheap fares.

"This seems to be the best time to travel due to good deals, more so for the youth market which is not worried about the recession or the flu," she said.

Tickets for the new flights to Hong Kong and Singapore are open for sale until July 12, for the travel period from July 31 to April 30 2010. The all-in fare of RM99 to Hong Kong and RM51 to Singapore is exclusively made available online at www.airasia.com.

Seems to be like that... Domestic flight from Jakarta to Batam, Makassar, Balikpapan, and Padang will be ended on August 19, while flight to Pekanbaru will be closed maybe on Feb 2010.

That means only Medan, Yogyakarta, Surabaya, and Bali left for domestic flights from Jakarta (just major cities, huh....). Why don't they open Jakarta - Manado flight? Manado is a popular tourist destination in Eastern Indonesia :ohno:there was an plan to open the jkt-ambon route in the begin of 2009, but it never started...

AirAsia aims to park 10 planes in Penang to start new hub
Wednesday July 8, 2009
By DAVID TAN

http://biz.thestar.com.my/archives/2009/7/8/business/p4-airasiaplane.JPG

File pic of AirAsia aircraft at Kuala Lumpur International Airport's low cost
carrier terminal in Sepang. Malaysian budget carrier is to park 10 planes in
Penang and make Penang its 8th hub. - APpic

This is in line with plans to make island its eighth hub

GEORGE TOWN: AirAsia Bhd’s plan to park more planes at the Penang International Airport can materialise faster if Penang has a low-cost carrier terminal.

Regional head of commercial Kathleen Tan said the budget airline operator had plans to park 10 planes in Penang, which was in line with its goal of making the island its eighth hub.

AirAsia has hubs in Kuala Lumpur, Johor Baru, Kota Kinabalu, Bandung, Bali, Jakarta and Bangkok; and a “virtual hub” in Singapore.

“This is our long-term plan to enhance the attraction of Penang as a hub. Presently the cost of operation in Penang is very high. If Penang had a low-cost carrier terminal, it would reduce our operation cost, and attract more travellers to fly from Penang,” she said in a telephone interview from Kuala Lumpur.

Tan said presently the Penang airport imposed higher international and domestic taxes, at RM51 and RM9 compared with RM25 and RM6 respectively charged at the Low-Cost Carrier Terminal in Kuala Lumpur.

She said from July 31, AirAsia would station one plane in Penang for the four weekly flights to Hong Kong. The round trip fare is about RM200.

“We are engaging a support team comprising pilots, engineers and technicians to be based at the Penang airport,” she said, adding that AirAsia was also adding a second flight to Singapore from Penang starting July 31.

AirAsia may have to write off money owed by associates
Write offWritten by Financial Daily
Wednesday, 08 July 2009 10:38

http://www.theedgemalaysia.com/images/stories/FinancialDaily/08072009/airasia.jpg

AIRASIA Bhd may have to write off some of the amounts owed by its associates, Thai AirAsia and Indonesia AirAsia, or inject more cash investments into them if they continue to make losses and require more funding, according to Maybank Investment Bank (Maybank IB).

“AirAsia may have to write off some of the owed amounts totalling RM603 million at end-4Q08 and RM752 million at end-1Q09, and/or inject more cash investments into its associates.

“This could result in losses at the group level post-injection of new funds into its associates, and require more than a 20% private placement at AirAsia level to right-size its balance sheet,” the research house said in a report yesterday.

AirAsia will propose to raise the continued assistance to 49%-owned Thai AirAsia and Indonesia AirAsia from 5% each of AirAsia’s latest audited net tangible asset (NTA), to 10% each at an upcoming EGM.

AirAsia reported on Monday that net financial assistance rendered to Thai AirAsia and Indonesia AirAsia were RM248 million and RM355 million, respectively, or 15.5% and 22.2% of its audited NTA as at FY08.

Maybank IB, which maintained a sell on AirAsia, said it was not surprised at the announcement, as it was “one of several overhanging concerns on AirAsia”, and that its share price did not fully reflect these concerns.

The research house has ascribed a target price of RM1 to the low-cost carrier, based on 0.9 times 2010 price-to-book value.

“In the worst-case scenario, if the amounts due to AirAsia from its associates are fully written off, the NTA of AirAsia will lower by about 30%, implying a similar potential writedown to our target price,” it said.

In the aviation sector, its pick is Malaysia Airports Holdings Bhd with a buy call and target price of RM4, for leverage on the air travel market’s potential recovery in 2010.

Meanwhile, AmResearch has upgraded AirAsia to buy from sell to reflect “easing balance sheet concerns”, stronger-than-expected 1Q09 performance and share price retracement, which has discounted a potential share dilution risk from AirAsia’s proposed private placement.

It said AirAsia’s proposed placement of new shares had addressed its key concern on AirAsia’s highly leveraged balance sheet previously.

“Cash to be raised from the exercise — circa RM500 million — is expected to bring net gearing down to much more manageable levels — from four times down to just 3.1 times in FY10. Interest cover is estimated to rise to two times from 1.9 times pre-placement,” it said.

AmResearch has revised upwards its FY09 net profit projection for AirAsia by 153% to RM410 million, and FY10 forecast by 167% to RM493 million to reflect, in anticipation of higher ancillary income, a more moderate yield contraction of 10% versus a previous assumption of 13% contraction for FY09.

Following an upward revision to projections, the research house has revised upwards its fair value for AirAsia to RM1.45 per share from RM1.04 per share previously.

“Our valuation is pegged at 40% discount to AirAsia’s historical average PE (price-earnings) of 14 times against FY10 diluted earnings, to reflect AirAsia’s volatile cost structure (as it is unhedged at the moment) as well as still uncertain recovery of the broader airline industry,” it said.

“At implied valuation of just 6.4 times FY10 fully diluted earnings, we think the market has sufficiently priced in earnings dilution risk ahead of AirAsia’s proposed private placement over the next two months.

“AirAsia currently trades at a huge 54% discount to historical average PE of 14 times against expanding ROE (return on equity) of 16% in FY10,” it added.

AirAsia closed at RM1.14 yesterday, up four sen.

MAS opens ticket office in Cebu City
Published: 2009/07/08

MALAYSIA Airlines has opened a new ticket office at the Bigfoot Building in Cebu City, the Philippines, in line with its growth strategy.

It is the second ticket office for Malaysia Airlines in the Philippines after Makati City.

"The ticket office is for us, a key component of our customers' purchase experience, whether they are passengers or travel agents," Malaysia Airlines senior general manager, sales and marketing, Datuk Bernard Francis said in a statement today.

Besides reservations and purchase of tickets, the office staff could assist customers with refunds, he added.

Bernard said the launch of the new ticket office was also in collaboration with the Brunei, Indonesia, Malaysia, the Philippines East Asean Growth Area (BIMP-EAGA) objective of developing convenient air linkages within the region.

He said the Asean liberalisation on air services agreement which would be in place by year end, would result in airlines having unlimited rights to operate between the capital cities of Malaysia and the Philippines.

He explained that this would further reinforce the partnership with Philippine Airlines, with whom Malaysia Airlines code-shares.

Malaysia Airlines operates twice weekly flights from Kuala Lumpur via Kota Kinabalu to Cebu City. - Bernama

Analysts: Minimal impact on MAS from NY flight suspension
Thursday July 9, 2009
By LEONG HUNG YEE

http://biz.thestar.com.my/archives/2009/7/9/business/p2-masi.JPG

PETALING JAYA: Malaysia Airlines’ (MAS) move to suspend flights from Kuala Lumpur to New York via Stockholm from October will not have a major impact on the carrier, analysts said.

“I think the impact is minimal as MAS flies to New York only thrice a week and it’s just one route,” OSK Research analyst Ng Sem Guan told StarBiz.

Ng believes MAS’ move was just a “temporary measure” as the carrier intends to continue its operations in the Big Apple.

“If there is no hope of revival, MAS might just close down its office in New York. I believe MAS is hoping to return to New York one day when demand picks up again,” he said.

On Tuesday, MAS announced that it will suspend its thrice-weekly service from Kuala Lumpur to New York via Stockholm from October due to low demand.

The last flight to New York from Kuala Lumpur will be on Sept 30 while the last flight from New York will be on Oct 1 and on Oct 2 from Stockholm.

The national carrier’s thrice-weekly Kuala Lumpur-Taipei-Los Angeles flights will continue.

Ng said the suspension was part of MAS’ ongoing efforts to strike a balance between network and fleet utilisation and making “nominal impact” on the company’s financial position.

He added that while MAS would be able to reduce some operational costs due to the suspension, the carrier could incur some costs such as parking or lease charges.

Another aviation analyst with a local brokerage said the flight suspension was not a surprise as the MAS management had offered guidelines that it would remove unprofitable capacity and continue with its cost-cutting initiatives.

“The industry is facing strong headwinds. We believe MAS will cut all its loss-making routes to stay afloat,” he said, adding that he concurred with OSK’s Ng that the move would have only minimal impact on MAS.

CIMB Research, in a recent report, said despite its confidence in the ability of the MAS management to execute the plans, it was still concerned about the health of the overall sector, which it expected would remain under pressure until oil prices declined.

For the first quarter ended March 31, MAS carried about 2.5 million passengers, with its load factor dropping to 56.1% from 69.2% a year ago.

In a recent briefing, MAS managing director Datuk Seri Idris Jala said the airline had introduced several initiatives such as the Everyday Low Fares, All-inclusive fares, MH Value fares, Weekend Specials as well as fuel surcharge reduction to boost sales.

AirAsia refutes reports it is writing-off dues from two units
Thursday July 9, 2009
By B.K. SIDHU

PETALING JAYA: There will be no write-offs on the amount owed by Thai AirAsia (TAA) and Indonesia AirAsia (IAA) to parent AirAsia Bhd, said AirAsia group chief executive officer Datuk Seri Tony Fernandes.

This is in contrast to what some analysts are saying in their reports, which have suggested a possible write-off of RM603mil, of which RM248mil is from TAA and RM355mil from IAA.

As at Dec 31, 2008, IAA and TAA owed RM974mil and RM457mil to AirAsia respectively, while the amount owed by AirAsia to IAA and TAA was RM619mil and RM209mil respectively. Net borrowings due to AirAsia are RM603mil.

“A draft agreement is being prepared to ratify and seek approval from AirAsia shareholders at an EGM to be called on Aug 3 for the past and continuing financial assistance to the two units,’’ Fernandes told StarBiz.

This is necessary since the amount owed by the two 49%-owned associates exceeds the 5% threshold of AirAsia’s shareholders’ funds which stand at RM1.81bil.

TAA and IAA have paid-up capitals of 400 million baht and 180 billion rupiah respectively.

AirAsia has been funding the two associates since they began operations and the unwinding of fuel hedgings has had an impact, thus raising the level of their borrowings.

AirAsia, unlike many other airlines, decided to end its hedges when fuel price headed south.

Fernandes said the two units were now cash-flow positive and that they had been paying back some of their dues, but noted that it would take two to three years for them to fully pay their dues to AirAsia.

Things are looking much better since the group embarked on a change in the aircraft type and expanded routes.

“If anything, the losses in the recent past were also small and incurred due to geopolitical and market conditions,’’ Fernandes said.

“Our Indonesian operations are enjoying brisk sales as IAA is now flying to more international routes, especially to Singapore and Australia. Our Bali hub is also performing way above expectations. We are very bullish on both the countries and Indonesia is turning out to be politically stable.’’

The change in aircraft type was from B737 to A320, which is more fuel efficient.

“It is a turnaround story and by 2010, all the B737 aircraft will be replaced with the A320 and we will have phenomenal cashflow and benefit from this move,’’ Fernandes said.

Thai AirAsia has 14 aircraft (nine A320s and five B737s) while Indonesia AirAsia has 11 (seven A320s and four B737s). All these aircraft are leased from AirAsia.

“This year, TAA will get four more new A320s and IAA seven more and that allows them to expand further,’’ Fernandes said.

Part of the dues from the associates to AirAsia is from the cost of leasing the aircraft for their respective operations.

AirAsia targets RM30m revenue from Redbox
Published: 2009/07/09

AIRASIA Bhd is aiming for RM30 million in revenue next year from its new service called Redbox, billed as the world's first low-cost courier service.

Chief executive officer Datuk Seri Tony Fernandes, in stating this, said Redbox was targeted at all market segments, especially small and medium enterprises, and it offered up to 50 per cent savings in shipment costs.

"This service will provide support to customers and local businesses in the central region and East Malaysia," he told reporters after the Redbox launch in Kuala Lumpur today.

The service is now available between the central region covering Kuala Lumpur, Selangor and selected parts of Negeri Sembilan as well as in the East Malaysian cities of Kuching, Miri, Sibu, Kota Kinabalu, Labuan and Sandakan.

Fernandes said that AirAsia would like to grow the existing courier market, which is estimated to be worth about RM500 million currently.

AirAsia X chief executive officer Azran Osman Rani said the new service will be expanded to more AirAsia and AirAsia X destinations early next year.

Customer can log on to the http://redbox.airasia.com or www.airasia.com websites to use Redbox at between RM27 and RM193, Azran said.

Individual customers can drop off their packages at any of the Mail Boxes Etc (MBE) outlets in the central region and the six East Malaysian cities, he said.

MBE is the world's largest franchise network of retail shipping, postal, document convenience and value-added business services.
Asked about the possibility of a merger between AirAsia with AirAsia X, Azran said: "That is the question for the AirAsia's board to decide. It is not my decision."

There have been reports in media recently saying that both companies will merge within one or two years.

The Redbox service marked the first partnership between AirAsia and AirAsia X so far, he said.

In another development, Azran said that AirAsia X planned to introduce new routes in the Middle East in the near future.

The proposed routes are Sharjah and Abu Dhabi in the United Arab Emirates. - Bernama

Fernandes keen to see group's airlines merge
Published: 2009/07/10

AIRASIA Bhd (5099)group chief executive officer Datuk Seri Tony Fernandes is keen to merge the low-cost carrier with its long-haul sister airline, AirAsia X.

"We established AirAsia X separately initially because we were starting a long-haul budget carrier. But now that it has proven to be success, it seems like a good idea to merge both airlines," he said.

When asked if the idea was being discussed at board level, Fernandes said "No".

"I just think it's a good idea. But something like this will require the shareholders' approval," he said.

AirAsia launches low-cost courier
By Jeeva Arulampalam
Published: 2009/07/10

http://www.btimes.com.my/articles/jaa9-2/pix_topright

The budget airline wants to capture a slice of the courier services market in Malaysia, estimated to be worth RM500 million

BUDGET carrier AirAsia Bhd (5099)is expecting its courier service to generate RM30 million revenue next year as it continues to roll out initiatives to boost ancillary income.

Group chief executive officer Datuk Seri Tony Fernandes said the airline wants to capture a slice of the courier services market in the country, which is estimated to be worth RM500 million.

"With our network, we are also looking to provide courier services to places that are hard to get to," he told reporters after launching Redbox, the world's first low-cost courier, in Kuala Lumpur yesterday.

Fernandes said that 11 per cent of the aircraft belly space is used for cargo currently, but there is capacity for growth.
Investment will be minimal as AirAsia is using existing infrastructure like online transactions to provide the courier service.

Redbox, touted to provide 50 per cent savings in shipment costs, is a collaboration between the AirAsia group, Mail Boxes Etc. and DMSBT Group.

Customers can drop off their packages at any of the Mail Boxes outlets in Kuala Lumpur and Selangor and selected parts of Negri Sembilan, Kuching, Miri, Sibu, Kota Kinabalu, Labuan and Sandakan.

"We serve as the brick-and-mortar location for Redbox," Mail Boxes managing director Brian Chow said.

Boxes come in 10 sizes and weight breaks are between 5kg and 25kg, with weight options going up in increments of 1kg. The courier service is priced between RM47 and RM193.

AirAsia X chief executive officer Azran Osman-rani said that the courier service will be made available to all destinations served by AirAsia and AirAsia X by early next year.

"There is no-equity relationship. Redbox is a business partnership as Mail Boxes is the drop-off point, DHL will serve as the transport between the outlets and the airport, while AirAsia provides the air travel," said Azran, who is spearheading the project.

Meanwhile, Fernandes said the proposed issue of 20 per cent more shares, either to an institutional fund or a strategic investor, was progressing well.

"We will let you know in due course," he said when pressed on the status of the issue.

He also dismissed any possibility of AirAsia or himself looking to purchase football club Newcastle United.

Ministry open to proposals on KL-New York route
Published: 2009/07/10

THE Transport Ministry is ready to consider proposals from airlines like AirAsia to serve the Kuala Lumpur-Stockholm-New York route, which Malaysia Airlines (MAS) will cease to operate from October.

In a statement to Bernama yesterday, Deputy Transport Minister Datuk Abdul Rahim Bakri said that the offer was subject to agreement from all relevant authorities.

Currently, AirAsia unit, AirAsia X, offers long-haul flights to London, Melbourne, Perth and Taipei.

On Monday, MAS announced that it will stop its flights to Stockholm and New York, but will retain its offices in the two cities and offer its services to customers through code-share partner KLM, which flies to Stockholm via Amsterdam.

On another note, Abdul Rahim said the global economic slowdown was among the reasons for MAS' weaker first quarter performance.

"For the first quarter, MAS is reported to have registered losses amounting to RM698 million.

"The number of passengers using MAS services in the January-April period went down 11 per cent compared to the same period last year," he said.

He noted, however, that it was a trend experienced by a majority of airlines amid the current challenges.

MAS has taken various measures to boost sales, including online offers and aggressive media promotions. - Bernama

AirAsia courier service takes off
Friday July 10, 2009
By LEONG HUNG YEE
http://redbox.airasia.com

http://biz.thestar.com.my/archives/2009/7/10/business/b_p1redBox.jpg

From left: Datuk Seri Tony Fernandes, Azran Osman-Rani, MBE Business Corp
Sdn Bhd director Brian Chow and DMSBT Pte Ltd managing director and chief
executive officer Damien Santer at the launch of Redbox.

Redbox to contribute up to RM30mil revenue next year

KUALA LUMPUR: AirAsia Bhd expects its newly launched low-cost courier service, Redbox, to contribute RM25mil to RM30mil to revenue next year, said group chief executive officer Datuk Seri Tony Fernandes.

“We don’t expect a major contribution from Redbox for the first six months but it’s a massive market. Air travel is a small pie but now we’ve expanded it by offering more services such as Redbox,” he said after the launching ceremony yesterday.

He added that AirAsia’s branching out into a non-core business was part of its strategy to improve its ancillary income.

Fernandes said Redbox was targeted at the small and medium enterprises and individual customers, and offered about 50% lower shipment rates than the market.

Redbox is said to be the world’s first low-cost courier service. AirAsia will be transporting the packages from airport to airport while its partner DHL would be picking up and delivering them.

The low-cost carrier has also partnered Mail Boxes Etc (MBE) to enable customers to drop off their packages at any of 17 MBE outlets.

Redbox is the first courier service to use Google Maps for courier service tracking.

AirAsia X chief executive officer Azran Osman-Rani said the tie-up with DHL and MBE was just a pure business partnership and there was no equity involved.

“Redbox’s low-cost model is possible as it leverages on AirAsia’s extensive network and infrastructure,” he said, adding that the transaction costs would also be lower as most of the transactions would be done online.

“Our tie-up with DHL and MBE also allows us to use their infrastructure,” Fernandes said.

He added that the investment for Redbox was “very little”.

On the belly capacity allocated for the new service, Fernandes joked: “My belly or the plane’s belly? AirAsia still has lots of belly capacity for these services.”

He said about 11% of AirAsia’s total aircraft belly space had been allocated for cargo.

For a start, Redbox offers services between the central region of Peninsular Malaysia and some towns in Sabah and Sarawak.

Azran said Redbox would expand to all the other destinations that AirAsia and AirAsia X fly to early next year.

On recent reports that AirAsia and AirAsia X would merge in a year or two, Fernandes and Azran said it was not for them to decide and they would leave it to the board.

“I’ve got no control over the merger. It’s up to the shareholders and we don’t have a specific plan for the merger.

“However, the operational advantages will be quite significant if we merge both companies as there is a lot of operational synergy,” Azran said.

He said AirAsia X was “optimistic of tripling its revenue” this year as it had more planes and would be flying to more destinations.

Azran said AirAsia X planned to introduce new routes in the Middle East this year and was looking at Bahrain, Abu Dhabi and the United Arab Emirates.

Meanwhile, Fernandes said AirAsia’s private placement plan was “progressing very well” but did not elaborate.

Govt will consider plans for NY route by AirAsia, others
Friday July 10, 2009

KUALA LUMPUR: The Transport Ministry is ready to consider proposals from airlines like AirAsia to serve the Kuala Lumpur-Stockholm-New York route that Malaysia Airlines (MAS) will cease to operate effective this October.

In a statement to Bernama, Deputy Transport Minister Datuk Abdul Rahim Bakri said the offer was, however, subject to agreement from all the relevant authorities.

Currently, AirAsia unit AirAsia X offers long-haul flights to London, Melbourne, Perth and Taipei.

On Monday, MAS announced it will stop its flights to Stockholm and New York but will retain its offices in the two cities and offer its services via its code-sharing partner, KLM, which flies to Stockholm via Amsterdam.

On another note, Abdul Rahim said the global economic slowdown was among the reasons for the significant drop in MAS’ performance in the first quarter this year.

“For the first quarter, MAS was reported to have registered losses amounting to RM698mil,’’ he said. “The number of passengers using MAS’ services during January to April this year went down by 11% compared with the same period last year.”

He added that other airlines had also reported significant drops in passenger numbers. — Bernama

Against this scenario, MAS has taken various measures to promote sales via online, as well as through better fares and promoting its services through travel agents and tourism agencies as well as aggressive media promotions. — Bernama

Surprised that Malaysian is pulling out of NY. Wow. Such a great airline. MH still the best airline I have ever flown beating CX and OZ, which I have also flown.

Ministry open to proposals on KL-New York route
Published: 2009/07/10

THE Transport Ministry is ready to consider proposals from airlines like AirAsia to serve the Kuala Lumpur-Stockholm-New York route, which Malaysia Airlines (MAS) will cease to operate from October.

In a statement to Bernama yesterday, Deputy Transport Minister Datuk Abdul Rahim Bakri said that the offer was subject to agreement from all relevant authorities.

Currently, AirAsia unit, AirAsia X, offers long-haul flights to London, Melbourne, Perth and Taipei.

On Monday, MAS announced that it will stop its flights to Stockholm and New York, but will retain its offices in the two cities and offer its services to customers through code-share partner KLM, which flies to Stockholm via Amsterdam.

On another note, Abdul Rahim said the global economic slowdown was among the reasons for MAS' weaker first quarter performance.

"For the first quarter, MAS is reported to have registered losses amounting to RM698 million.

"The number of passengers using MAS services in the January-April period went down 11 per cent compared to the same period last year," he said.

He noted, however, that it was a trend experienced by a majority of airlines amid the current challenges.

MAS has taken various measures to boost sales, including online offers and aggressive media promotions. - Bernama

by Simon_sees

http://farm3.static.flickr.com/2481/3697332448_e549ce4e6f_b.jpg

by David Denny2008

http://www.picamatic.com/show/2009/07/10/02/07/4383580_988x702.JPG

by JUBES747

http://farm3.static.flickr.com/2254/3541496224_dae98a6da3_b.jpg

where thai air asia plan new rount

by harco.mynl

http://farm3.static.flickr.com/2410/2098117801_01c9aed24e_o.jpg

AirAsia: Plane delivery to be partly deferred
Tuesday July 14, 2009
By B.K. SIDHU

http://biz.thestar.com.my/archives/2009/7/14/business/p1-airasia.JPG

An AirAsia aircraft is being pulled at Kuala Lumpur International Airport’s low-
cost carrier terminal in Sepang. With the deferment, AirAsia is expected to
push most of its new aircraft to its associated in Indonesia and Thailand. - AP

AirAsia to hold back on eight aircraft each in 2010 and 2011

KUALA LUMPUR: AirAsia Bhd plans to defer taking delivery of eight Airbus A320 aircraft for 2010 and may opt to do the same for another eight aircraft the following year, said its group chief executive officer Datuk Seri Tony Fernandes.

“We are negotiating with Airbus SAS to push the orders to the back end. Our focus next year is to consolidate our aircraft type to all A320s and return the 13 B737 that we have leased from GE Commercial Aviation Services (GECAS),” he told StarBiz in an interview.

AirAsia became the largest customer of the Airbus A320-200 in December 2007 after it placed a firm order for a total of 175 aircraft, with an option for 50 more. Deliveries are expected to run until 2014. For 2010 and 2011, the airline is slated to take delivery of 24 aircraft each year.

As at end-June, the budget airline had 61 aircraft of which 48 are for its Malaysian operations, and the rest for Thai AirAsia and Indonesia AirAsia.

Besides that, it also has a fleet of 16 B737, of which three are its own and 13 leased from GECAS.

With the deferment, AirAsia is expected to push most of it new aircraft to its associates in Indonesia and Thailand, leaving very few new aircraft for its Malaysian operations, thus limiting its growth potential going forward although the two units will be able to expand more aggressively.

“Deferring the delivery of these aircraft is an opportunity lost to AirAsia as it would mean forgoing an attractive 12-year aircraft financing package which is close to LIBOR (rates) negotiated just prior to the economic crisis. (But issues arising from) the uncertainty of the new LCCT to be completed by July 2011 far outweighs the opportunity lost in this attractive financing (package),’’ said Datuk Kamarudin Meranun, the deputy CEO of AirAsia.

Fernandes denied that the plan to defer aircraft deliveries had to do with raising funds for the purchase of the aircraft, saying “the funding for this and next year is in order.’’

In February this year, AirAsia mandated Barclays Capital, the investment banking division of Barclays PLC, to finance 15 of its new Airbus A320.

“We are in negotiations with the supplier for all aircraft to have minimal or zero cash outlay and that will not put a strain on our cash.

“We are not delaying the deliveries because of cashflow, we need the planes for our operations but there is an infrastructure risk out there that we cannot afford to take,’’ Fernandes said.

All airlines had been hurt by the economic crisis, Fernandes pointed out, but “our cashflow is very healthy. In fact, we are working towards having RM1bil cashflow by the first quarter of 2011.’’

AirAsia had RM224mil cash and RM6.93bil debts in its books at the end of March 31, most of it for aircraft financing.

But for this year, Fernandes said “there will be no delays in taking the aircraft deliveries.’’

AirAsia has taken delivery of five of 14 aircraft scheduled for this year.

AirAsia has been expanding routes and frequencies when many airlines globally are cutting back, with the budget carrier aiming to expand to places like India, Middle East and North America.

“Expansion is necessary but we will never stretch ourselves. Imagine this, if we were to slow down we could have been crushed by our competitors from Singapore. We believe in growing but in a sensible manner,’’ Fernandes said.

AirAsia was only one of a handful of airlines to post a profit in the first quarter.

AirAsia’s earnings in its March quarter rose 26% to RM203.2mil from a year earlier due to higher passenger numbers from additional routes.

AirAsia launches two new routes
Tuesday July 14, 2009

PETALING JAYA: AirAsia has launched two new flights from Miri and Tawau to Singapore.

AirAsia will be offering all-in fare from Tawau to Singapore from RM79 (S$42); and Miri to Singapore from RM59 (S$32) from July 14 to 19 — for travel period from Sept 9 this year till end of April next year.

Bookings can be made exclusively on line via www.airasia.com and mobile.airasia.com.

AirAsia through its holiday division Goholiday, is also offering guests free rooms when tourists book at the airline’s partner hotels in Singapore. The promotion is only valid via online at goholiday.airasia.com.

Promotional seats and free rooms are limited and are only available on first come, first serve basis.

The airline’s first East Malaysia connection with Singapore was from Kota Kinabalu and Kuching which started last November.

To date, AirAsia has 406 weekly flights to and Singapore.

The new route will draw more in-bound tourist traffic from Singapore into Sabah and Sarawak through AirAsia’s X’s long haul network.

Malaysia Airlines Offers Irresistible Fares From Dubai
July 14, 2009 23:09 PM

DUBAI, July 14 (Bernama) -- Malaysia Airlines is offering lower all-inclusive fares to several destinations from Dubai.

In a statement, the carrier said a one-way ticket from Dubai to Malaysia's capital, Kuala Lumpur, would cost from 1,020 dirhams (about RM1,000), Dubai-Karachi (from 395 dirhams) and Dubai-Beirut (from 915 dirhams).

A one-way fare from Dubai to Denpasar (Bali), Jakarta or Bangkok can be had from 1,185 dirhams and Dubai-Manila from 1,245 dirhams.

Tickets can be booked at www.malaysiaairlines.com.

Booking period is from July 13 to July 17 for travel period from Aug 13 to Dec 15, 2009.

-- BERNAMA

Hot competition on KL-Chennai air route
Wednesday July 15, 2009
By B.K. SIDHU

http://biz.thestar.com.my/archives/2009/7/15/business/p2-qtcht.JPG

PETALING JAYA: With four airlines competing in the Kuala Lumpur-Chennai route, passengers are benefiting from the increasingly attractive fares.

After the KL-Delhi route, the KL-Chennai route is said to be the busiest for point to point travel from KL to India. Chennai, formerly known as Madras, is the fifth largest city in India and capital of Tamil Nadu state.

“The KL to India routes are high traffic routes as the countries have strong business, education, cultural and religious ties,’’ Malaysia Airlines (MAS) senior general manager sales and marketing Datuk Bernard Francis said in an e-mail reply to StarBiz queries.

MAS, Jet Airways, Indian Airlines and Air-India Express offer direct services. Flights originating from KL to Chennai via Singapore (Singapore Airlines and Tiger Airways), Bangkok (Thai Airways) and Colombo (Sri Lankan Airlines) are also popular. Most of the carriers offer daily flights to Chennai, an almost four-hour journey direct from KL.

Jet Airways regional general manager for Malaysia and Thailand Kavin Martinus said fares on the KL-Chennai route had dropped by 20% to 30% over the past two months.

“Fares on this sector can fluctuate depending on season and demand but even in a competitive environment, the carriers that ply direct enjoy an average passenger load factor of 65% to 70%,’’ he said from Bangkok.

MAS’ Francis said for the national carrier, the “load factors are high and hitting above 85%.’’

These days, one can get a return all-inclusive economy-class airfare for just over RM800 online provided you book early. But the cheapest fare thus far is from Sri Lankan Airlines at RM788 for an all-inclusive return airfare if you book direct with the airline. This fare is available till Aug 30.

Sri Lankan Airlines flies via Colombo which means you spend three hours waiting for your connection to Chennai. But if you travel on Sunday, you have to spend a night in Colombo at your own cost. However, from a traveller’s perspective, it is visiting two destinations for the price of one as you have about 16 hours before your connection to Chennai. You arrive after 3pm in Colombo on Sunday and leave for Chennai only at 7.25am on Monday.

A random check on online fares for a one-week trip from Aug 15 to 22 shows that Tiger Airways offers the best deal at an all-inclusive fare of RM807, followed by MAS at RM828. SIA’s return all-inclusive airfare for the KL-Singapore-Chennai sector is pricey at RM2,083. There was no seat availability on the dates for Indian Airlines and the offer is for business class at RM2,360 all-inclusive return airfare.

Travel agents have their own fares and those obtained from World Discovery Travel Sdn Bhd via its representative Kumari Mannathu show that Jet Airways’ RM988 all-inclusive return airfare is the lowest for the dates specified.

Fares may be competitive now but would they go down further?

“It depends on market conditions. Our (MAS) aim is to ensure that our fares remain competitive,’’ Francis said.

India’s Kingfisher Airlines was to start plying this route last year but up to now, the airline has yet to get into the act. However, it is learnt that it would begin plying the Colombo-Bangkok route next month. Hopefully, after Bangkok, it will consider the Chennai-KL connection to spice up the competition.

AirAsia to launch Flights from Singapore to Miri and Tawau
Tuesday, 14 July 2009

AirAsia is to launch two new flights between Singapore and East Malasyia. The new Singapore - Miri and Singapore - Tawau sectors, which begin 9 September, will help draw more inbound international tourist traffic arriving from Singapore into Sabah and Sarawak.

To celebrate the introduction of the new routes, AirAsia is offering all-in-fare for Tawau- Singapore from RM79 (Sin$42) and Miri- Singapore from RM59 (Sin$32).

Both promotional fares open for sale from 14 July to 19 July 2009 for travel between 9 September 2009 and 30 April 2010. Promotional seats are limited and available on first-come, first-served basis.

AirAsia’s first connection between East Malaysia and Singapore was from Kota Kinabalu and Kuching, which commenced last November. Other existing routes include Kuala Lumpur - Singapore, Langkawi- Singapore and Penang- Singapore.

Apart from Malaysia, AirAsia currently flies between Singapore and the Indonesian provinces which include Bali (2 daily flights), Jakarta (4 daily flights), Pekanbaru (3 flights weekly), Yogyakarta (1 daily flight) and Bandung (2 daily flights). In addition to that, AirAsia also flies to Bangkok (4 daily flights) and Phuket (1 daily flight) in Thailand.

AirAsia currently has a total of 406 weekly flights to and from Singapore.

Kathleen Tan, Regional Head of Commercial AirAsia, said “We are proud to open-up new market as these sectors are not served. Students, families and foreign workers can now take advantage of our low fares and renew their social ties more frequently or even indulge in leisure holidays to both countries. There are countless attractions in East Malaysia and Singapore as it entails a wonderful journey of discovery into its culture, heritage and adventure. Our recent initiative to remove the administration fee reiterates AirAsia’s commitment to offer big value so everyone can fly following our move to abolish fuel surcharge last year.”

Miri is the second largest city and the most popular tourist destination in Sarawak. It is famous for its national parks, heritage sites and adventure destinations for the most spellbinding experiences in Sarawak. For instance the Gunung Mulu National Park, is home to the world’s largest cave system, the world’s largest cave passage and the largest natural rock chamber in the world. Miri is also a bustling commercial centre and boasts as the home of Sarawak’s oil industry.

Tawau is located at the northern tip of Sabah Borneo and is the gateway to the world class diving paradise Sipadan Island and many neighboring island resorts. Through Tawau tourists will also gain access to a few oldest virgin forests in the world, for instance Danum Valley, Tabin Wildlife, Maliau Basin, and Tawau Hill Park.

There's one particular reason I really like about traveling with MAS.

It's when you fly back to Malaysia on a long-haul you will be greeted with 'Malaysia Airlines menyambut kepulangan anda' which means 'To all Malaysians, welcome home!'. Almost brought me to tears when I went back for the first time after several years abroad.

There's one particular reason I really like about traveling with MAS.

It's when you fly back to Malaysia on a long-haul you will be greeted with 'Malaysia Airlines menyambut kepulangan anda' which means 'To all Malaysians, welcome home!'. Almost brought me to tears when I went back for the first time after several years abroad.

the same with singapore airlines, shortly after touch down on changi's runway the FA will greet "to all singaporeans and singapore residence, a warm welcome home"

MAS Online Bookings Up 30 Per Cent With Akamai Solution
July 15 2009

KUALA LUMPUR, July 15 (Bernama) -- Malaysian Airline System Bhd (MAS) said its online booking increased by 30 percent since it started using Akamai Technologies's Web Application Accelerator solution.

"We have noticed a significant performance improvement on our website since being on the Akamai platform, combined with our competitive promotions," MAS said in statement Wednesday.

MAS Senior General Manager of Network and Revenue Management, Dr Amin Khan said its main website, www.malaysiaairlines.com performance also improved by 50 percent with the solution.

"Improved website and booking engine performance are key business benefits we are quickly realising, and this is enhancing our competitive advantage," he added.

-- BERNAMA

---

MAS jumble sale raises RM11,000 for charity
Friday July 17, 2009

THE Malaysia Airlines’ employees came together for their second MH Charity Jumble Sale and raised more than RM11,000 for three organisations — Women’s Aid Organisation, Rumah Kebajikan Anak Yatim dan Miskin, Al Munirah, Klang and Tenaganita recently.

Six divisions within the airlines contributed various items for the sale.

The items included exercise equipment, electronic goods, household items, clothes and accessories, cosmetics and fragrances, foods, vitamins and personal care products.

Employees based at the MAS headquarters in Subang thronged the sale, and some of the popular items sold were MAS Golden Boutique products.

Items such as treadmills, laptops and PlayStation were also auctioned off to the highest bidder.

Malaysia Airlines senior general manager of Communications Indira Nair said the jumble sale was meant to bring different divisions together and encourage everyone to collaborate actively as one team.

“In the midst of the gloom and doom, we need to be reminded that there are many out there who are more unfortunate, and who need help,” she said, adding that more sales of this nature will be held in the future.

Premium Passenger Volume For Airlines Down In May
July 16 2009

KUALA LUMPUR, July 16 (Bernama) -- The number of passenger travelling on business or first class fares continued to decline in May 2009, falling 23.6 percent from a year earlier.

This followed a 22 percent decline in April 2009 and a 19.2 percent drop during the first quarter, according to the report on premium traffic by the International Air Transport Association (IATA).

Premium travel numbers have been in decline now for 12 consecutive months, the association said.

Premium passengers are responsible for 25 to 30 percent of passenger revenues but only seven to 10 percent of numbers, so total passenger travel is shaped mainly by movements in economy ticket numbers, it said.

Passengers travelling on economy tickets also fell at a faster pace in May 2009, down 7.6 percent on a year earlier, having grown marginally by 0.3 percent in April.

Total passenger numbers on international markets fell 9.2 percent in May, compared to a fall of two percent in the previous month, IATA said.

Although passenger numbers were down 9.3 percent in March, that decline was exaggerated by the timing of Easter, it said.

"In fact, once these distortions are accounted for, the 9.2 percent fall in passenger numbers on international markets in May was the largest decline seen so far this year," the association said.

Passenger travel numbers in May 2009 cast doubt on the view that a bottom to the travel decline has been reached, according to IATA.

The stabilisation seen earlier in passenger kilometres flown now appears to have been due to a small rise in the average distance flown, due to the geographical pattern of changing travel markets, and not to a stabilisation of passenger numbers, it said.

"Comprehensive fare data on international markets is released with a lag, but we know that premium fares were falling at an accelerating rate through April to a level around 20 percent lower than last year," IATA said.

Moreover, premium seats are being discounted on average much more than economy seats, despite the latter usually being the more price-sensitive segment of the market, it said.

"This is likely a sign that airlines are seeking to generate any cash they can by filling these seats," it added.

IATA said US airlines saw their overall passenger yields down at a faster pace in May 2009 than the previous month, with a yield decline of 24 percent on Atlantic markets and around 18 percent on the Pacific.

"This is a combination of lower average fares and fewer premium paying passengers," the association said.

"Nonetheless it is consistent with a further 20 percent decline in average premium fares on international markets in May and a 40 to 45 percent fall in premium revenues," it said.

-- BERNAMA

Airasia to resume JB-Bangkok route
Published: 2009/07/17

Low cost carrier AirAsia is resuming it's Johor Baru-Bangkok flight beginning July 21, three weeks after it stopped the service.

And the resumption of the two-hour long flight from the Senai airport here has met with approval from the State tourism authority and travel agents alike.

But the question which still trouble them is whether AirAsia would commit themselves to continue servicing the route or put a stop to it like the previous two occasions where they decided that the JB-Bangkok route would no longer be part of their operations.

The AirAsia JB-Bangkok flight was first introduced in 2005 but it was stopped a year later, and in February 2008 the flight resumed only to be stopped again in the beginning of July this year.

Johor executive councillor in charge of tourism Hoo Seong Chang welcomed AirAsia's latest decision but he cautioned against the disruption of the service in future.

"It's the state goverment's policy to make the Senai airport into a passenger hub and therefore we welcome any airlines which want to fly or land here.

"AirAsia has been supportive but I can also understand the situation they are caught in sometimes. They told us that the low load factor is one reason why they sometimes stop certain flight.

"Maybe the situation now with the spread of the HIN1 virus is preventing people from travelling but I urge AirAsia to be more patient. When the situation improves more people will travel," said Hoo.

The resumption of the flight has also been welcomed by the Tourism Authority of Thailand (TAT) which sees the JB-Bangkok flight as very convenient for travellers from Johor.

In fact, Thailand or rather Bangkok in particular remains a favourite holiday destination for Malaysians with arrival at 1.82 million for the year 2008, an increase of 18 per cent from the previous year's arrival of 1.54 million.

"The figures are encouraging but at the same time, to go on a holiday to Thailand also means value for money," said Richard Lim, the TAT marketing manager for Malaysia and Brunei. -- BERNAMA

MAS among top three carriers in 2009
Published: 2009/07/17
Source: http://www.btimes.com.my/Current_News/BTIMES/articles/20090717170257/Article/index_html

MALAYSIA Airlines has been identified as among the top three mainline carriers for 2009 after Singapore Airlines and Lufthansa by Aviation Week (http://www.aviationweek.com/aw/eventType2.do?eventName=tpc2009)'s Top-Performing Companies (TPC) study of the global airline industry.

Air Arabia tops the low-cost/niche carrier category while FedEx is the highest-ranked freight carrier and Australia's Regional Express is the top regional carrier, it said.

Aviation Week's TPC study of the global airline industry is the industry's leading annual rankings and competitive analysis.

It said, a follow-up to last month's TPC Aerospace and Defense rankings, this year's airline analysis shows the effects of the recession on the industry -- few airline business models are immune.

"The recession has grabbed hold of the airline industry, and survival is still the name of the game," said Aviation Week and Space Technology editor-in-chief Anthony L. Velocci, Jr.

"This year's TPC review of airlines places liquidity and financial health as the top indicators for weathering further volatility in the economy and rising fuel prices.

"We are seeing sharp drops in scores across the board, in all regions, but with the TPC rankings, we can identify those airlines that are doing things right," he said.

Launched in 1996, Aviation Week's TPC study identifies relative strengths and weaknesses in companies'' operational performance and evaluates how well they are executing business strategies.

Proprietary metrics have been refined over the past 13 years with input from industry leaders to include scores in five performance categories: Liquidity, Financial Health, Earnings Performance, Fuel Cost Management, and Asset Utilization.

The benchmarking tool and micro site are produced in partnership with PricewaterhouseCoopers. - Bernama

MAS Aims To Reduce Costs By Rm1 Billion This Year
July 17, 2009 20:05 PM

KOTA KINABALU, July 17 (Bernama) -- Malaysia Airlines (MAS) plans to reduce its costs by RM700 million to RM1 billion this year, managing director Datuk Seri Idris Jala said on Friday.

He said this was one of the national carrier's plans to make the business viable during the current global economic crisis.

"The whole aviation sector is in a crisis and we are not spared. But we are doing the best we can," he told reporters after launching MASwings' Safety and Security Campaign at the Kota Kinabalu International Airport here.

Earlier at MAS' roadshow for government ministries and agencies in Sabah, Idris said the highest revenue recorded by the airline in its corporate history was RM15 billion last year.

"It would be very difficult to achieve this figure this year. But I believe that as a company, we will be able to pull through these difficult times," he said.

On the campaign, MASwings' managing director Mohd Salleh Tabrani said it was held to inculcate a culture of safety and security within the organisation to ensure safety among employees in the workplace and assure comfort for customers.

- BERNAMA

AirAsia adds new service

PERTH: AirAsia Bhd said its aircraft made the inaugural flight between Bali and Perth at full load both ways yesterday and the airline will start a twice-daily direct flight service on the route from Aug 19.

Perth is the first Australian destination serviced from Indonesia by AirAsia Indonesia and the airline’s fourth international route operated from the Bali hub after Kuala Lumpur, Bangkok and Singapore, the airline said in an e-mailed statement yesterday.

The latest flight means the AirAsia group now has 21 flights weekly to Perth, inclusive of one direct flight departing from Kuala Lumpur.

“The demand for Perth-Bali route has been phenomenal. We’ve sold over 75,000 seats since May when we opened for sale,’’ said Kathleen Tan, AirAsia group’s regional head of commercial.

AirAsia’s brand-new Airbus A320 aircraft will serve the route.

http://biz.thestar.com.my/news/story.asp?file=/2009/7/18/business/4345596&sec=business

AirAsia adds new service

PERTH: AirAsia Bhd said its aircraft made the inaugural flight between Bali and Perth at full load both ways yesterday and the airline will start a twice-daily direct flight service on the route from Aug 19.

Perth is the first Australian destination serviced from Indonesia by AirAsia Indonesia and the airline’s fourth international route operated from the Bali hub after Kuala Lumpur, Bangkok and Singapore, the airline said in an e-mailed statement yesterday.

The latest flight means the AirAsia group now has 21 flights weekly to Perth, inclusive of one direct flight departing from Kuala Lumpur.

“The demand for Perth-Bali route has been phenomenal. We’ve sold over 75,000 seats since May when we opened for sale,’’ said Kathleen Tan, AirAsia group’s regional head of commercial.

AirAsia’s brand-new Airbus A320 aircraft will serve the route.

http://biz.thestar.com.my/news/story.asp?file=/2009/7/18/business/4345596&sec=business

Thats why Bali is full of stupid inbred drunkass rugby douchebags..

Budget Malaysian airline to start Melbourne route
New route ... AirAsia X will offer flights from Melbourne to Kuala Lumpur.
Photo: AFP

http://images.theage.com.au/ftage/ffximage/2008/08/20/airasia2_wideweb__470x313,2.jpg

Cut-price airline AirAsia X has announced it is to begin new Melbourne to Kuala Lumpur flights.

- New flights unveiled
- Tourism boost
- $199 fares

The Malaysian-based carrier will offer one-way fares to Kuala Lumpur - starting at $199 including taxes and charges - and four return flights a week from November 12.

The airline plans to increase to daily return flights during the peak season from December to mid-January and then daily from March 2009.

Industry and Trade Minister Theo Theophanous said the announcement was great news for Victorians, for local business and international education services.

"The growth in services exports is being driven by international education," he said.

"Around 40% of Malaysian students in Australia choose Victoria, with more than 7600 enrolments in 2007.

"Given the strong alumni links and growing trade and investment relationships between Victoria and South-East Asia, travel for business and pleasure will continue to expand," he said.

Melbourne is AirAsia X's third Australian destination. Its network includes services to the Gold Coast, Shanghai and Perth.

Azran Osman-Rani, chief executive officer of AirAsia X, said the daily peak season service during Christmas would offer Malaysian and Australian travellers low fares at a time when other airlines typically gouge passengers with high airfares because demand outstrips capacity.

Tourism and Major Events Minister Tim Holding said the new services would provide a significant boost for Victoria's tourism industry, worth more than $10 billion.

The airline's fare sale begins tomorrow and runs until Sunday.

Good response, so AirAsia increases KL-Taipei flights
Wednesday July 22, 2009

PETALING JAYA: AirAsia is expanding the frequency of its Kuala Lumpur-Taipei route from five a week to daily flights, starting Oct 19.

The route was launched in April and had received overwhelming response, said AirAsia chief executive officer Azran Osman Rani.

“We are running at more than 75% load factor. More than 20,000 seats were sold within the first 12 hours of the sales announcement in April and forward bookings were exceptionally strong,” he said.

The all-in-fare is priced at RM129. Tickets for the period from Oct 19 to Jan 10, 2010 can be booked from tomorrow to July 31.

Citibank AirAsia credit cardholders get to enjoy 24-hour priority booking, starting today.

Free room stay is also offered, via the airline’s GoHoliday package, at Hotel Renaissance, Hotel Equatorial, One World Hotel, Corus Hotel and Tune Hotels.

Another promotion, Best Online Rates in Taipei, offers five-star hotel rooms for as low as RM383 per night.

For more information, log on to www.airasia.com or mobile.airasia.com.

Union appeals for waiver on MAS aircraft rental fee
Wednesday July 22, 2009

KUALA LUMPUR: The Malaysia Airlines System Employees Union (Maseu) has appealed to Penerbangan Malaysia Bhd (PMB) and Aircraft Business Malaysia Sdn Bhd (ABM) to waive this year’s aircraft rental and lease costs to be paid by Malaysia Airlines (MAS).

MAS paid close to RM1bil annually in rent and lease payment to PMB and ABM, which is a subsidiary of the Finance Ministry and fully-controlled by Khazanah Nasional, Maseu said in a statement here yesterday.

“If PMB and ABM provide the exemption on the cost of aircraft rental and lease for this financial year, MAS will be able to reach its target and recover within a short period,” it said.

Maseu said MAS had carried out two rounds of budget cuts and set the target of reducing costs by RM700mil to RM1bil.

“International airline companies have gone to reduce their operations and administration costs and so has MAS, and these actions are not enough to guarantee the strength of an organisation in this high technology industry,” the union said.

An exemption on the rental and lease payment this year will help MAS cushion the costs of fuel hedging for the financial accounts ending December 2009.

According to the union’s records, more than 68 aircrafts are rented and leased from PMB and ABM now.

MAS recorded a net loss of RM695mil for the first quarter ending March 31 due to fuel hedging costs amounting to RM640.2mil.

Maseu also said it placed the guarantee of employment as the main factor and any cost savings should be intended for saving jobs.

It should not be the case of cutting jobs to save costs, it added. — Bernama

by Lin.y.c
http://www.flickr.com/photos/linyc/1352298117/

http://farm2.static.flickr.com/1272/1352298117_7bbf596355_b.jpg

by Lin.y.c

http://farm2.static.flickr.com/1277/1357756391_b71406ab7b_b.jpg

AirAsia X CEO backs merger with AirAsia Bhd
Thursday July 23, 2009
By B.K. SIDHU

http://biz.thestar.com.my/archives/2009/7/23/business/p1-azran.JPG

Azran Osman-Rani …
‘AirAsia needs growth from AirAsia X.’

Azran: Merger will let AirAsia tap into long-haul markets

SEPANG: A merger between AirAsia X and AirAsia Bhd makes business sense and the combined balance sheet would make sourcing for future funding much easier, said AirAsia X chief executive officer Azran Osman-Rani.

“It would be difficult for AirAsia in the future if it did not have trunk routes as (this) is where the traffic volumes come from, so AirAsia needs growth from AirAsia X and the merger allows it to tap growth opportunities in the long-haul markets,” Azran told StarBiz in an interview.

“AirAsia cannot continue to just criss-cross and enter new markets, it needs a bigger base,’’ he added.

Given the nature of the business, which is counter-cyclical, a large base was necessary to balance the routes in peak and non-peak months, he said.

That is why AirAsia X has to sell beyond Kuala Lumpur or else only 20% of the seats will be taken up. It has to sell destinations, be it in Malaysia or the region, and 80% of those travelling with AirAsia X use AirAsia to travel to Langkawi, Penang, Phuket or even Bali.

“That is why AirAsia needs growth from AirAsia X and for that greater control of AirAsia X is needed,’’ Azran said.

Recently, AirAsia group chief executive officer Datuk Seri Tony Fernandes was reported as saying his personal preference was for a merger of the two companies.

AirAsia has a 16% stake in AirAsia X and an option to increase it to 30%.

The remaining shareholders in AirAsia X are Aero Ventures Sdn Bhd (48%), the Virgin Group (16%), while Bahrain-based Manara Consortium and Japan-based Orix Corp hold the remaining 20%.

Aero Ventures is owned by Fernandes, Datuk Kamarudin Meranun, Datuk Kalimullah Hassan, Lim Kian Onn and former Air Canada chairman and CEO Robert Milton.

Fernandes and Meranun are controlling shareholders in AirAsia with a 30.7% stake via Tune Air Sdn Bhd.

Even though it is still at the idea stage, critics are already saying the merger is necessary to rescue AirAsia X as, to them, AirAsia is now subsidising AirAsia X.

“Rubbish, we can clearly dispute that. For the first quarter ended March 31, 2009 our net profit was RM18mil and we are net cashflow positive. We even had a little cash at RM3mil.

“We are in a very good position and on a much firmer footing and now is an interesting time to talk about merger,’’ Azran said.

Fernandes, in a separate interview with StarBiz recently, said the merger was merely his proposal but felt it was a good model. However, no decision has been made thus far.

“When we started AirAsia X, a lot of critics said we could not do it but AirAsia X has turned out to be a very cash-flow positive company. Azran will be going on a roadshow soon to explain so that people have a better understanding that this long-haul, low-cost model can work,’’ Fernandes said then, adding that the roadshow would cover Kuala Lumpur, Singapore, Hong Kong, New York and London.

A share swap is likely but Azran said AirAsia had an option to increase its stake from 16% to 30% and with that it could equity account its venture in AirAsia X.

“They can either put cash in and increase the stake from 16% to 30% or do a share swap. It is a decision only the shareholders can make and I am not privy to that,’’ he said.

Asked when the merger was likely to happen, he said: “I will be surprised if it happens this year. AirAsia X has not received any offer and the process cannot begin. We also have to appoint a valuer and AirAsia has to hold an EGM.’’

AirAsia X was last valued at RM1.3bil when Manara and Orix took up their stakes.

AirAsia to fly to Tiruchi, India, twice daily from Sept 1

Published: Monday July 27, 2009 MYT 1:53:00 PM
AirAsia to fly to Tiruchi, India, twice daily from Sept 1
By YUEN MEIKENG


PETALING JAYA: Good news for those who travel often to Tiruchirapalli as low-cost carrier AirAsia will be adding a second daily flight to the Indian district starting Sept 1.

To celebrate the introduction of the flight, AirAsia will be offering an all-in fare of RM129.00 for a travel period between Sept 1 this year and April 30 next year.

The booking period for the flight will be from Tuesday to Aug 2.

AirAsia Group commercial regional head Kathleen Tan said the airline was proud to be servicing an underserved route and opening up this market to the world.

“Tiruchirapalli is a highly popular and desired destination among Hindus in Malaysia as it has an abundance of temples, which are popular pilgrimage sites for Hindus,” she said in a statement on Monday.

She added that there was an increase in visiting travellers from the district in Tamil Nadu who were progressively using Kuala Lumpur as a connecting gateway to over 130 routes in South East Asia and beyond.

“In fact, within the first month of flying to India, we enjoyed a load factor of 100% on this route,” Tan said, adding that it was now timely to add a second frequency.

Tiruchirapalli was AirAsia’s first destination in India since its inception on Dec 1 last year.

AirAsia is also offering its guests free rooms in various destinations when they book at its partner hotels via goholiday.airasia.com.

For more information on flights and other promotions, visit www.airasia.com.

Click your way to great deals from MAS
Monday July 27, 2009

KUALA LUMPUR: Just RM300 for a ticket to Taipei? For more great deals, click to www.malaysiaairlines.com for discounted airfares available till Aug 2.

Malaysia Airlines is offering tickets to Kaohsiung at RM440, Osaka at RM697, Tokyo at RM713 and Seoul at RM740.

MAS senior general manager (Network & Revenue Management) Dr Amin Khan said: “To enjoy these offers, customers just have to register at the “Get-the-Deal” section on MAS’ website.

“We have been getting very good response to the offers. Since the campaign was launched a couple of months ago, we have sold some RM50mil worth of tickets,” he said.

Upon registration, which is free of charge, customers will be notified every time MAS offers a new promotion.

Amin added: “This way, customers can be assured that they are kept posted on the lowest fares offered by MAS.

“Airlines are now offering great deals to stimulate travel, and the public should take advantage of these offers to travel.”

The travel period for the North Asia promotion vary according to the destinations. These low fares are only available online on a first come, first served basis.

MAS confident of pulling through worldwide slump
By Regina Lee Published: 2009/07/28

DESPITE people cutting down on their vacations and holidays, Malaysia Airlines (3786) is confident that it will pull through the global slump.

Chairman Tan Sri Dr. Munir Majid said that the national carrier has looked into ways to fulfill customer demands.

"We have had nine packages so far this year... we had to cut routes because the operating environment is already tough.

"It is competitive in terms of a wide economy in the airlines industry," he said in Cyberjaya yesterday.
The airline recently had to axe the Kuala Lumpur-New York route, leaving the Kuala Lumpur-Los Angeles route as the only direct flight from the country to the US.

"Our aim is to not only to make money, but also to save money. And we want to do it in an intelligent fashion," he said after launching a special menu of second prime minister Tun Abdul Razak's favourite dishes in Cyberjaya yesterday.

In fact, Munir was especially pleased that the airline was ranked third by a prominent weekly aviation magazine in financial strength.

"They ranked us highly to weather the current financial storm. To be ranked third out of 300 full-service carriers and more than a thousand airlines, this is quite a credit to us," he said.

MAS was ranked behind Singapore Airlines and Germany's Lufthansa.

H1N1 pandemic overstated, says MAS chairman
Written by Melody Song
Monday, 27 July 2009 21:33

CYBERJAYA: MALAYSIAN AIRLINE SYSTEM BHD [] (MAS) chairman Tan Sri Dr Munir Majid said the panic over the Influenza A(H1N1) pandemic had been "overstated".

The World Health Organisation (WHO) should rethink how it called for a pandemic, he said.

"Right now, the 'pandemic' call relates to spread, and not fatality," said Munir after the launch of a Malaysia Airlines' special menu in tribute to second prime minister Tun Abdul Razak today.

On the business outlook for MAS, Munir said the current environment was tough but the airline was holding up well relative to its competitors. "Just last week, we were named as one of the top three carriers to perform in 2009 by Aviation Week," he said.

Meanwhile, MAS executive director and chief financial officer Tengku Datuk Azmil Aziz said it was too early to say for certain when a recovery in the airline industry would occur.

The new menu A Tribute to Tun Abdul Razak will be served on board business class of selected domestic and regional flights and across all classes on the Kuala Lumpur-London sector from Aug 1 until Sept 30, in conjunction with Malaysia's 52nd Independence Day.

"This is in recognition of the British connection that Tun Razak had to London, and as a tribute to Tun's contributions to the country," said Munir, adding that it was an opportunity to introduce Malaysian history and food to its passengers.

"It is timely for us to introduce this menu now, because Tun Razak's son Datuk Seri Najib Razak is prime minister."

The menu features several of the late prime minister's favourite dishes, including tomato rice with chicken kurma, roast beef tenderloin with Sarawak black pepper sauce and Yorkshire pudding, as well as desserts like bread and butter pudding and crème caramel.

This is the second time a special menu in honour of the country's former prime ministers has been launched by MAS, with the first being a selection of Tunku Abdul Rahman's favourite dishes in 2007.

Malaysia Airlines Expects To Perform Despite Tough Times
July 27, 2009 20:41 PM

CYBERJAYA, July 27 (Bernama) -- Malaysia Airlines expects to continue to "stand" despite the current tough times and competition in the airline industry, said its chairman, Tan Sri Dr Munir Majid.

He said the national carrier was doing relatively well despite the global economic situation.

Being categorised by the Aviation Week magazine as among the top three airlines in terms of financial strength and capability to weather the storm, shows that the national carrier is able to do relatively well compared with other airlines, Munir said.

"Our focus is to look into our customers' demand. Our vision is to offer five-star services at affordable prices," Munir said after the launch of the "Tun Abdul Razak menu" Monday.

The menu, featuring the favourites of the country's second prime minister, the late Tun Abdul Razak, is expected to be served on MAS flights from August 1- September 30, this year.

It will be served in the business class both for domestic as well as regional flights (Kuala Lumpur to Indonesia, Manila, Bangkok, Yangon, Hanoi and Singapore).

"Passengers across all classes on flights operating the London route out of Kuala Lumpur will also be served this menu," he said.

Passengers can look forward to a menu which features both eastern and western dishes which were the favourites of Tun Razak.

Munir said Malaysia Airlines will continue to enhance its inflight meal services, introducing new and exciting dishes in line with its Business Transformation Plan (BTP2) and improving its services to customers.

AirAsia X denied rights to fly into Sydney
July 28, 2009 - 3:40PM

Long-haul budget airline AirAsia X has been denied permission to fly to Sydney and Seoul due to a row between the Malaysian government and its sister carrier AirAsia, a news report said.

The refusal has forced AirAsia X to scramble to make new plans to utilise the three new Airbus A330 aircraft due for delivery this year, the Star daily said today.

"We had asked for rights to fly to Sydney and Seoul, and the government decided to defer granting us the approval," AirAsia X's chief executive officer Azran Osman-Rani reportedly said.

He said the government first wanted AirAsia to settle the issue of an outstanding 65 million ringgit ($A22.45 million) payment for airport services with Malaysia Airports Holdings before giving the green light.

"The dispute is between the two (AirAsia and MAHB), but delaying us from flying into these two destinations will not help travellers who have limited choices," Azran told the daily.

"We know the Koreans are keen to have us, and both the airports - Sydney and Seoul - welcome us," he added.

AirAsia was not immediately available to confirm the reported comments.

An affiliate of regional low-cost carrier AirAsia and Virgin Group, AirAsia X was launched in January 2007. AirAsia and AirAsia X have common shareholders, including AirAsia founder and CEO Tony Fernandes.

AirAsia X currently flies to three Australian destinations - the Gold Coast, Melbourne and Perth.

AFP

http://www.smh.com.au/travel/travel-news/airasia-x-denied-rights-to-fly-into-sydney-20090728-dzsk.html

So whats the news on the inside? This isn't good news!

MAS targets 15,000 travellers with pre-paid Asean pass
Written by Melody Song
Tuesday, 28 July 2009 12:29

KUALA LUMPUR: MALAYSIAN AIRLINE SYSTEM BHD [] (MAS) targets up to 15,000 travellers for its new pre-paid Asean economy pass, from a low of US$229 (RM806) which includes administrative fees and surcharges but excludes airport taxes.

With the pre-paid pass, which consists of four pre-paid ticket vouchers, travellers can fly to four destinations in Asean, which is valid for three months within date of purchase.

As for the business class, it is from US$729.

However, travellers will have to use the KLIA as the hub for their travel, but the pass can be also used with other MAS promotions.

MAS managing director Datuk Seri Idris Jala said the load factor for June-July recovered to 2008 levels. He said the June load factor was 67% and July 76%.

Special MAS menu honouring Razak
2009/07/28

http://www.kosmo.com.my/kosmo/pix/2009/0728/Kosmo/Negara/ne_10.1.jpg

SHAIFUL ANAZ HARUN dan Lily Sulia Abdul Aziz menunjukkan makanan
kegemaran Allahyarham Tun Abdul Razak untuk hidangan dalam pesawat
MAS di Cyberjaya semalam.

CYBERJAYA: Passengers on Malaysia Airlines will be able to sample the food that used to delight the taste buds of the late Tun Abdul Razak Hussein, the second prime minister of Malaysia.

The menu will be a combination of Malaysian and British cuisine, including tomato rice with chicken kurma, ikan asam pedas, chicken kuzi, roast beef tenderloin with Sarawak black pepper sauce and Yorkshire pudding, traditional bread and butter pudding, and classic cream caramel.

In conjunction with the 52nd Merdeka celebration, passengers in the business class of domestic flights (Kuala Lumpur to Penang, Langkawi, Johor Baru, Sabah and Sarawak) as well as regional flights (Kuala Lumpur to Indonesia, Manila, Bangkok, Yangon, Hanoi and Singapore) and passengers across all classes on the Kuala Lumpur-London route will be served this special menu.

MAS chairman Tan Sri Dr Munir Majid said the time was appropriate for a special menu honouring Razak.

"Now, Razak's son Datuk Seri Najib Razak is prime minister. We also want to remember that Razak was the prime minister of Malaysia during the introduction of Malaysia Airline Limited, or better known as MAL, which took to the skies with its first commercial flight as the national airline in 1972," said Munir.

Also at the launch were Najib's wife Datin Seri Rosmah Mansor and his mother, Razak's widow Tun Dr Rahah Mohd Noah.

Chefs from the airlines' main caterer LSGB Skychefs worked in consultation with Rahah to develop the dishes, having gone as far as preparing the menu at her weekly dinner parties.

Along with the dishes, passengers can take home the recipes of Razak's favourites on bookmarks, made specially for this occasion. The promotion will last for two months, starting from Aug 1 to Sep 30.

MAS passenger load factor back to normal
Published: 2009/07/28
> http://www.btimes.com.my/Current_News/BTIMES/articles/20090728144114/Article/index_html

MALAYSIAN Airline System Bhd (MAS) sees its passenger load factor as being back to normal following initiatives to stimulate demand.

Managing director Datuk Seri Idris Jala said the national carrier had undertaken an aggressive plan to attract travellers to fly with MAS.

"We came out with an aggressive stimulus package and as a result, we have seen an increase in our passenger load factor for June and July this year," he told reporters after the launch of the airline's latest product called Asean Pass here today.

MAS's passenger load factor in June and July recovered by 67 percent and 76 percent respectively compared with the same months last year.

Idris also said that the recent bombing incident in Jakarta did not have any significant impact on the airline's flights to Indonesia.

On the Asean Pass, he said that MAS hoped to sell about 15,000 seats by the end of this year with the product.

The Asean Pass is a set of four prepaid ticket vouchers that enable passengers to travel on a maximum of four flights within Asean countries for US$229 (US$1.00=RM3.52) on economy class and US$729 on business class.

Since the introduction of the product in early June, a total of 5,000 seats valued at RM1.2 million had been sold.

MAS chairman Tan Sri Dr Munir Majid said the airline decided to develop the Asean Pass based on the positive growth in this region.

Last year, tourist arrivals from Asean countries totalled 16.6 million, an increase of 6.5 percent from 15.6 million in 2007, and contributed RM32.9 billion in tourist receipts.

"In line with the Tourism Ministry's efforts to promote intra-Asean tourism, we believe this new product will help to stimulate travel into Malaysia," Munir said, adding that MAS had also made some enhancements in the menu served on Asean flights.

The airline will soon be introducing popular local dishes such as nasi briyani, satay, nasi goreng, nasi lemak, roti canai and murtabak for these flights. - Bernama

Malaysia airline offers region pass to spur travel
Published: Tuesday July 28, 2009 MYT 3:00:00 PM

KUALA LUMPUR: Malaysia Airlines on Tuesday launched an air pass offering sharp fare discounts for travel within Southeast Asia in a bid to fill up its planes and spur tourism into the country.

The flag carrier plunged into the red in the first quarter, hit by a triple blow of overcapacity, fuel hedging losses and the global economic slump which hurt passenger and cargo demand.

Managing Director Idris Jala said business has improved in the second quarter with the average percentage of seats filled rising to 67 percent in June and 76 percent in July.

This was higher than 56 percent recorded in the first quarter.

He said the pass scheme would be an added boost to business as more people are opting for short-haul travel amid the economic crisis and the swine flu pandemic.

The pass offers a set of four prepaid one-way tickets for $229 for economy class and $729 for business class, inclusive of fuel surcharges and other fees.

Travelers pay separately for airport taxes.

The tickets are valid for three months and can only be used for travel from Kuala Lumpur to a destination within the countries that make up the Association of Southeast Asian Nations or vice versa, Idris said.

"It's a massive discount (on fares). Kuala Lumpur will be the base and hub, so it will bring a lot of tourists to Malaysia," he told reporters.

The airline is targeting at least 2,500 new passengers each month under the scheme, he said.

Ong Hong Peng, secretary-general of the Tourism Ministry, said travel within Southeast Asia remained resilient with tourist arrivals rising more than 15 percent last year to more than 70 million.

Travelers from the region accounted for 78 percent of foreign visitors into Malaysia last year, he said.

Malaysia is however, bracing for fewer tourists this year with arrivals expected to drop to 19 million, from 22 million last year, he said. - AP

AirAsia X fails to get Govt nod for flights to Sydney and Seoul
Tuesday July 28, 2009
By B.K. SIDHU

http://biz.thestar.com.my/archives/2009/7/28/business/sectionpicazranp1i.JPG

Azran Osman-Rani ... ‘It is a high-profile
issue and needs a lot of justification'.

SEPANG: AirAsia X’s expansion into Sydney and Seoul will be delayed as it has failed to get the nod from the Malaysian Government to fly to the two cities, forcing the long haul low-cost carrier to formulate a back-up plan to utilise some of the new aircraft that will be delivered later this year.

“We had asked for rights to fly to Sydney and Seoul and the Government decided to defer granting us the approval. They want (AirAsia) to settle (its) dues with Malaysia Airports Holdings Bhd (MAHB),’’ AirAsia X chief executive officer Azran Osman-Rani told StarBiz in an interview recently.

“It is a high profile issue and needs a lot of justification but we are AirAsia X and not the ones that owe MAHB money for airport services. Every invoice that we receive is paid within 30 days.”

“It is unfortunate that we are brought into the AirAsia issue but we have written and explained that our accounts are all current,’’ he said.

About RM65mill payment due to MAHB from AirAsia is in dispute.

Azran reiterated that “the dispute is between the two (AirAsia and MAHB) but delaying us from flying into these two destinations will not help travellers who have limited choices and we lose opportunities of the multiplier impact (that) tourism has.”

“We know the Koreans are keen to have us and both the airports – Sydney and Seoul – welcome us,’’ he said.

The delay may be seen as a setback in its expansion plans as with so much capacity coming onstream, AirAsia X has to work fast to secure rights for other markets so that its planes are not grounded for too long.

“We believe the two markets are big enough for more players. MAHB has been trying hard to get Qantas and Jetstar back and here we are waiting to fly to Sydney,’’ Azran added.

Whether it is AirAsia or AirAsia X, there are common shareholders in both companies and allowing AirAsia into newer markets will certainly heat up competition and drive fares down as seen from its flights to Gold Coast, Melbourne, Perth and London.

“Fundamentally, we do not fly to a destination and take passengers away. We create a new market which even other players can tap into,’’ the AirAsia X chief said.

AirAsia X is set to take delivery of three A330 this year – one each in September, November and December.

It needs to utilise these aircraft and Azran said he was now busy trying to come up with a plan so that the aircraft would be fully utilised since the Sydney and Seoul routes would be delayed.

“We will look at the near term first since we will take delivery of an aircraft in September. We may add capacity on our existing routes to Gold Coast, Hangzhou and Taipei. The new destinations that we are considering include Chengdu. We are hoping to get the time slots soon and the Transport Minisntry has been really helpful in all this,’’ he said.

AirAsia X might fly into either Sharjah or Abu Dhabi sometime this year as part of its plan to venture into the Middle East, he said, adding that Baharin was also on the cards but Teheran would be delayed.

India is a market that AirAsia X wants to look at in 2010 but Amritsar may come earlier if it manages to get the rights, but via Bangkok.

As for the US, the airline liked New York, San Francisco and Los Angeles but formal submissions had not been made, although the process had begun, Azran said, adding that AirAsia X hoped to cover the US by next year.

A stewardess of Malaysia Airlines, Ariana Joedo shows the Asean Pass, offering 4 flights within Asean for USD229 during the launching today.
Kuala Lumpur, 28 July 2009
Photos from http://www.sun2surf.com/

http://www.picamatic.com/show/2009/07/28/01/47/4616774_480x286.jpg

http://www.picamatic.com/show/2009/07/28/01/48/4616776_480x301.jpg

We Fly (Malaysia Airlines Theme - Original Version)

p7WKuRZ4R70

From previous page!

http://i102.photobucket.com/albums/m95/fdzy/MAS/kabin9.jpg

AirAsia X fails to get Govt nod for flights to Sydney and Seoul
Tuesday July 28, 2009
By B.K. SIDHU

http://biz.thestar.com.my/archives/2009/7/28/business/sectionpicazranp1i.JPG

Azran Osman-Rani ... ‘It is a high-profile
issue and needs a lot of justification'.

SEPANG: AirAsia X’s expansion into Sydney and Seoul will be delayed as it has failed to get the nod from the Malaysian Government to fly to the two cities, forcing the long haul low-cost carrier to formulate a back-up plan to utilise some of the new aircraft that will be delivered later this year.

“We had asked for rights to fly to Sydney and Seoul and the Government decided to defer granting us the approval. They want (AirAsia) to settle (its) dues with Malaysia Airports Holdings Bhd (MAHB),’’ AirAsia X chief executive officer Azran Osman-Rani told StarBiz in an interview recently.

“It is a high profile issue and needs a lot of justification but we are AirAsia X and not the ones that owe MAHB money for airport services. Every invoice that we receive is paid within 30 days.”

“It is unfortunate that we are brought into the AirAsia issue but we have written and explained that our accounts are all current,’’ he said.

About RM65mill payment due to MAHB from AirAsia is in dispute.

Azran reiterated that “the dispute is between the two (AirAsia and MAHB) but delaying us from flying into these two destinations will not help travellers who have limited choices and we lose opportunities of the multiplier impact (that) tourism has.”

“We know the Koreans are keen to have us and both the airports – Sydney and Seoul – welcome us,’’ he said.

The delay may be seen as a setback in its expansion plans as with so much capacity coming onstream, AirAsia X has to work fast to secure rights for other markets so that its planes are not grounded for too long.

“We believe the two markets are big enough for more players. MAHB has been trying hard to get Qantas and Jetstar back and here we are waiting to fly to Sydney,’’ Azran added.

Whether it is AirAsia or AirAsia X, there are common shareholders in both companies and allowing AirAsia into newer markets will certainly heat up competition and drive fares down as seen from its flights to Gold Coast, Melbourne, Perth and London.

“Fundamentally, we do not fly to a destination and take passengers away. We create a new market which even other players can tap into,’’ the AirAsia X chief said.

AirAsia X is set to take delivery of three A330 this year – one each in September, November and December.

It needs to utilise these aircraft and Azran said he was now busy trying to come up with a plan so that the aircraft would be fully utilised since the Sydney and Seoul routes would be delayed.

“We will look at the near term first since we will take delivery of an aircraft in September. We may add capacity on our existing routes to Gold Coast, Hangzhou and Taipei. The new destinations that we are considering include Chengdu. We are hoping to get the time slots soon and the Transport Minisntry has been really helpful in all this,’’ he said.

AirAsia X might fly into either Sharjah or Abu Dhabi sometime this year as part of its plan to venture into the Middle East, he said, adding that Baharin was also on the cards but Teheran would be delayed.

India is a market that AirAsia X wants to look at in 2010 but Amritsar may come earlier if it manages to get the rights, but via Bangkok.

As for the US, the airline liked New York, San Francisco and Los Angeles but formal submissions had not been made, although the process had begun, Azran said, adding that AirAsia X hoped to cover the US by next year.

Flying to Sharjah would mean direct competition with Dubai airport less than 20 kms away......Abu Dhabi however does not have a Malaysian airline flying there!!

Amritsar to KL via Bangkok makes sense.....given that there are no far east flights from there!! (I think SIA stopped flying to Amritsar recently)

AirAsia X to set up virtual hub in Middle East
By BK Sidhu The Star Biz
29 July 2009

KUALA LUMPUR: AirAsia X Sdn Bhd, a long-haul budget airline and related company to AirAsia Bhd, is looking to set up its first ever virtual hub in the Middle East next year.

AirAsia X chief executive officer Azran Osman-Rani told reporters Wednesday that this hub would serve the region and beyond and was part of the airline’s expansion strategy.

He said the hub would be used for flights from Malaysia to Middle Eastern destinations as well as from the Middle East to Europe.

AirAsia X to name new flight destinations
By B.K. SIDHU The Star Biz
29 July 2009

PETALING JAYA: AirAsia X will today announce some new destinations it will be flying to in the coming months in its quest to expand.

“We are not going to slow down just because we have not get approval yet to fly into Sydney and Seoul. We will add more flights and services and continue with our expansion,’’ AirAsia X chief executive officer Azran Osman-Rani told StarBiz yesterday.

Several weeks ago, AirAsia X had asked for rights from the Government to fly into Sydney and Seoul as these markets offered good growth potential for the carrier.

However, in an interview with StarBiz which was published yesterday, Azran said “the Government decided to defer granting us the approval. They want (AirAsia) to settle (its) dues with Malaysia Airports Holdings Bhd (MAHB).’’

“It is unfortunate that we are brought into the AirAsia issue but we have written (to the Government) and explained that our accounts are all current,’’ he had said. AirAsia owes MAHB RM65mil in airport service charges. AirAsia and AirAsia X have common shareholders.

Maybank Investment Bank senior analyst Khair Mirza said it was unusual for the Government to withhold approval for the reasons quoted.

“It suggests that there may be more issues than those quoted and there could be reciprocation issues as well,’’ Khair said.

Another analyst said AirAsia X should just go ahead with its expansion into other markets as there were many more destinations that offered equally exciting opportunities as Seoul and Sydney.

The likely markets that AirAsia X will fly to with the three new aircraft it will be taking delivery of this year are speculated to be the Middle East, particularly Abu Dhabi, and China. It is likely to increase frequency on its flights to Melbourne, Perth, Gold Coast, Taipei and Hangzhou.

AirAsia to boost revenue via Tune Talk partnership
The Star Biz
29 July 2009

PETALING JAYA: AirAsia Bhd yesterday signed a cooperation agreement with Tune Talk Sdn Bhd aimed at generating extra revenue and further boosting the AirAsia brand.

Incorporated on Jan 13, 2006, Tune Talk is principally involved in providing telecommunication services and other related services.

The company is 35.75%-owned by Tune Ventures Sdn Bhd, in which AirAsia group chief executive officer Datuk Seri Tony Fernandes and AirAsia deputy CEO Datuk Kamarudin Meranun are substantial shareholders.

In a filing with Bursa Malaysia, AirAsia said the rationale for the agreement was to generate extra revenue through sales of Tune Talk SIM cards and Top Up Voucher.

It was also to generate additional online ticket sales via distribution of e-gift vouchers by Tune Talk through its loyalty programmes as well as to enhance and further boost AirAsia’s branding through various advertising platforms made available by Tune Talk free of charge.

AirAsia said under the agreement, it would become the launch partner of Tune Talk and purchase 200,000 Tune Talk SIM cards (worth RM860,000) that would bear AirAsia’s and Tune Talk’s branding.

“The downside financial risks associated with the agreement are expected to be very limited because the company does not need to make extra investment to market or sell the Tune Talk SIM card or Top Up Voucher,” it said.

The products would be sold on board all AirAsia’s flights, it added.

AirAsia said it did not require the approval of its shareholders or any authorities to enter into the agreement with Tune Talk.

It also said the agreement was not expected to have a material effect on its consolidated net assets and consolidated earnings for the current year ending Dec 31.

AirAsia, MAHB may settle dues row soon
Wednesday July 29 2009

KUALA LUMPUR, July 29 — A three-year dispute between budget carrier Air-Asia and Malaysian Airport Holdings Bhd (MAHB) over unpaid dues could be settled soon, after the airline's chief executive Datuk Tony Fernandes met Prime Minister Datuk Seri Najib Razak.

MAHB, which owns and manages most of Malaysia's airports, has a string of differences with the budget carrier. They include the location and cost of a new budget terminal and — most importantly from AirAsia's point of view — the fees it charges.

Fees have been a bone of contention since AirAsia moved into the current budget terminal next to Kuala Lumpur International Airport.

Airline executives say no rental agreement has been signed because Air-Asia says MAHB's charges are too high. As a result, MAHB insists AirAsia owes it RM103 million.

The dispute has hurt the airline. A month ago, the government turned down a request from AirAsia X — the carrier's long-haul unit — for the rights to fly to Seoul and Sydney. No written rejection has been forwarded to AirAsia but the decision has been conveyed verbally to AirAsia X.

This is a blow to the airline, which was counting on the new routes to use new planes that will be delivered this year.

“The government has decided to defer granting us approval,” AirAsia X chief executive Azran Osman-Rani said in The Star newspaper yesterday.

“They want AirAsia to settle its dues with MAHB,” he said. “It is a high-profile issue. But we are AirAsia X — not the ones that owe MAHB money for airport services. Every invoice we receive is paid within 30 days.”

Fernandes met Najib last Friday to discuss the situation. According to a government official, the talks were amicable but Fernandes was urged to settle the “dues” issue.

The airline's executives said AirAsia is awaiting MAHB's confirmation in writing of the amount owed, before proceeding with the matter.

But it is not clear whether AirAsia X will get the Sydney and Seoul routes even if AirAsia does settle its dues.

According to the executives, objections to AirAsia X were also raised on the grounds of giving national carrier Malaysia Airlines more time to prepare itself for the competition. — Business Times Singapore

AirAsia X to launch new Middle East hub
Published: 2009/07/29

Long-haul budget airline AirAsia X said today it would launch a new hub in the Middle East, enabling its network to extend to north Africa and Europe.

AirAsia X’s chief executive officer Azran Osman-Rani said a location had already been chosen in a Gulf state but that it would not be disclosed for several weeks.

“This will open up completely new markets, and we won’t always have to have the planes based in Kuala Lumpur, which limits us to an eight-hour radius,” Azran told reporters.

“There will be many in the aviation industry who think this is crazy because the traditional low-cost model is to do only point-to-point flights... to keep it simple,” he said.

Azran said, however, that while there would be “some additional cost”, AirAsia X would not need to create new infrastructure and would instead hire existing services for cargo, catering and maintenance.

Initially, the carrier will operate flights from Kuala Lumpur to the Middle East hub, before branching out next year by using it to jump to destinations that could include Morocco, Turkey, Spain or the Czech Republic.

Azran said the plan was also triggered by potential problems accommodating new aircraft, amid doubts that Malaysia’s airports authority will complete a new low-cost carrier terminal in Kuala Lumpur by 2011 as scheduled.

“It will relieve the pressure of having all our planes in Kuala Lumpur, especially if the new airport is not finished and we do not have enough parking bays,” he said.

AirAsia X now flies to seven destinations, with two more planned by the end of 2009. It operates five planes, a combination of Airbus A330s and A340s, with three more medium-range A330s due for delivery this year, three in 2010 and six in 2011.

Azran said this week that AirAsia X has been denied permission by the Malaysian government to fly into Sydney and Seoul, due to a row over its sister carrier AirAsia.

But he said Wednesday that it would instead boost flight frequency to the Gold Coast in Australia, Hanzhou in China, and the Taiwanese capital Taipei.

An affiliate of regional low-cost carrier AirAsia and Virgin Group, AirAsia X was launched in January 2007. AirAsia and AirAsia X have common shareholders, including AirAsia founder and CEO Tony Fernandes. -- AFP

STOP BEING DELAYED!!! i would be really appreciate!