AirAsia X expanding despite flying rights halt
By B.K. SIDHU 30 Jul 2009

KUALA LUMPUR: The failure to secure the rights to fly to Sydney and Seoul will not stop AirAsia X from expanding.

The long-haul budget carrier planned to redeploy excess capacity through an expansion in existing routes as well as flying into Chengdu and the Middle East, said chief executive officer Azran Osman-Rani.

“With the turn of events, we will devise a new strategy and not delay our expansion. We also have more route approvals (that we could use).

“We do not want to lose the (growth) momentum created in the past 20 months,’’ he told a press briefing here yesterday, adding that AirAsia X would fly to Chengdu soon and the Middle East before Hari Raya Haji.


Azran He declined to name the destination in the Gulf region, merely saying it has a Formula One racing circuit with vast connectivity.

Both Bahrain and Abu Dhabi have F1 circuits; sources told StarBiz it could be Abu Dhabi.

AirAsia X now flies to seven destinations – Gold Coast, Melbourne, Perth, Tianjin, Hangzhou, Taipei and London – using five aircraft.

It will add three new aircraft before year-end, thus the interest to fly to Seoul and Sydney.

The Government has delayed making a decision on AirAsia’s request to fly to Sydney and Seoul.

Asked when it could get the nod to fly to Seoul and Sydney, Azran said: “No visibility, but we are moving on.

“We also need lead time to market the routes and it would be too late, so we decided to redeploy by adding more flights to existing routes and being creative in opening new routes.’’

AirAsia X will increase capacity by 40% to Taipei, 50% for Gold Coast and 20% for Hangzhou, according to Azran.

It now flies five times weekly each to Taipei and Hangzhou and four times weekly to Gold Coast.

AirAsia X has rights to fly to Melbourne and Perth 14 times weekly and will look to raise the capacity there.

“Adding more flights to Melbourne and Perth will benefit the network, transit time and improve yields,’’ Azran said.

Other points in China on AirAsia X’s radar screen are Xian, Wuhan and Shenyang.

Next year, it will fly to India and has submitted an application to fly to New York.

The airline’s growth momentum was strong in the first half of 2009, with more passengers carried than all of 2008.

July is also the fourth consecutive month that AirAsia X had sold 100,000 tickets, with its London sector achieving record 90% load factor.

It will also set up a virtual hub in the Gulf region in 2010 in partnership with an airport there.

That will be its springboard to new markets and a strategy to build a wider network ahead of it taking delivery of its A350 aircraft in 2016.

The point in the Gulf region will serve to link up cities in Europe and Africa.

According to Azran, 22% of the airline’s passengers to London go to other cities, which gives AirAsia X the confidence to set up a hub outside Malaysia.

The rationale to have a hub outside Malaysia was also due to concerns that the new Low-Cost Carrier Terminal might not be ready by 2011, and that flying from Kuala Lumpur limited the airline to an 8-hour radius, he said.

“We need to get a contract from MAHB (Malaysia Airports Holdings Bhd) that provides incentives for us to grow or we will use more hubs and keep our aircraft outside of KL.

“The virtual hub is a strategic twist to the way we will operate our business, given the constraints,’’ he said.

Another possible area for a virtual hub is the Trans Tasman area (Australia/New Zealand).

Next year, AirAsia X would also focus on improving its seat configuration to add more leg-room and flat beds as part of its strategy to improve its products and services, Azran said.

I think it's going to be Abu Dhabi........... Bahrain is way too small market ( though it's bordering a huge metro area of Saudi ) .. Sharjah ? I think Air Arabia will oppose it.

Chengdu will be very nice too, it's the gateway to Tibet !

Just booked 4 adults to go Gold Coast - Kuala lumpur on peak season (departing 25th dec, return 7th jan) for $2000 AUD total.

pretty damn good over peak season!!!!

I was waiting for the Sydney flights, but extra flights from GC are also no problem.

I think it's going to be Abu Dhabi........... Bahrain is way too small market ( though it's bordering a huge metro area of Saudi ) .. Sharjah ? I think Air Arabia will oppose it.

Chengdu will be very nice too, it's the gateway to Tibet !

Abu Dhabi is horribly underserved......mostly because of the presence of Dubai airport just 120 kms away.....and very few low cost carriers fly there (comparing the other Middle east cities of similar importance)

Sharjah is out of the list I presume because the place does not have a F-1 race track...

Bahrain has its own low cost airline....Bahrain Air in addition to the struggling full service Gulf Air....I will be really surprised if the Bahrain Govt. actually allows Air Asia X to set up a hub there!!

Analysts positive on AirAsia placement plan
Saturday August 1, 2009
By RACHAEL KAM

PETALING JAYA: Analysts have responded positively to AirAsia Bhd’s plan to place a private placement of 20% of its share capital to raise about RM500mil, saying the move would “substantially enhance” AirAsia’s ability to restructure its finances while earnings dilution would be minimal.

The airline recently proposed a private placement of new shares amounting to 20% of its existing paid-up share capital or 475 million shares, with the aim to reduce debts and have more cash.

Affin Investment Bank said it has turned “sanguine” on AirAsia following the announcement of the private placement plan, in addition to the budget airline’s decision to defer delivery of eight aircraft in 2010 and seven in 2011 to 2014.

“We were previously concerned over AirAsia’s increasingly stretched balance sheet in lieu of its aggressive fleet expansion as well as steep earnings dilution arising from a potential cash call,” the brokerage said.

Based on AirAsia’s closing price on Thursday at RM1.48 and an estimated RM500mil to be raised, the research house calculated that some 338 million new shares would be issued.

“This represents 13% of the enlarged share base of 2.7 billion. Together with the guidance that the placement price will be close to prevailing market price, we thus believe that the potential earnings dilution will be minimal,” it said.

Affin Investment also said the lower capital expenditure (capex) requirements in tandem with the deferment in aircraft delivery addresses its concerns over AirAsia’s future funding commitments, and estimated that its net gearing position would fall to 2.6 times from 3.7 times in first quarter.

The budget airline’s capex has been reduced to RM4.5bil over fiscal year 2010 (FY10) to FY11 from RM6.8bil based on initial aircraft delivery schedule.

Affin also lifted its core earnings forecast by 6%-7% for AirAsia, projecting that the airline would make RM545.5mil in fiscal year 2010 and RM591.7mil in 2011.

However, after accounting for an enlarged share base in FY10, the budget airline’s earnings per share (EPS) would decline 7%, the brokerage said.

Affin has lifted its recommendation on AirAsia to “trading buy” from “reduce” with the target price raised to RM1.81 from RM1.10 previously.

TA Securities said the private placement would substantially enhance AirAsia’s ability to restructure its finances.

“Gearing ratio would decline to 2.7 times from 3.7 times,” it said in a note to clients recently, noting that a high gearing level was a key investment concern on the stock.

The brokerage adjusted upwards AirAsia’s earnings estimates by 10.9% to RM574.8mil in fiscal year 2009 and by 45.3% to RM758.5mil in 2010.

TA has maintained its “buy” call on the stock with a target price of RM2.20.

The brokerage said it estimated AirAsia’s private placement would raise gross proceeds of about RM487mil, with the proceeds to be allocated for working capital purposes only.

“The group is more likely to allocate 10% to institutional investors, while the balance will be allocated to existing shareholders,” analysts with the brokerage said.

ECM Libra Investment noted that AirAsia’s shares have surged 27.5% in just two weeks, saying it did not expect its trading target price of RM1.50 to be achieved so fast.

The brokerage recommended a “buy” call on AirAsia with a 12-month target price of RM1.90.

“If AirAsia can break above its major resistance at RM1.70, it will likely head towards the RM2.00 region soon,” ECM Libra said in a research note.

The counter was heavily traded yesterday to close two sen higher, or 1.3% at RM1.50, with 15.7 million shares changing hands.

By Asha Popatlal, Channel NewsAsia | Posted: 01 August 2009 0126 hrs

KUALA LUMPUR: AirAsia's Group CEO Tony Fernandes has confirmed that Abu Dhabi will be the new Middle East hub for its long-haul carrier AirAsia X.

Having a hub means that the carrier will be able to base its planes outside Kuala Lumpur, and it will not be limited to servicing destinations within an eight-hour radius from the Malaysian capital.

This will allow its network to extend to North Africa and Europe, as it can use the Middle East port as a stopover. - CNA/de

http://www.channelnewsasia.com/stories/corporatenews/view/446087/1/.html

AirAsia to sell up to 480m new shares
Published: 2009/08/03

AirAsia Bhd, Southeast Asia’s biggest discount carrier, plans to sell up to 481 million new shares in a private placement, the carrier said in a statement to the Kuala Lumpur stock exchange today.

The issue price will be fixed at a date to be determined later by way of book building and the proceeds will be used to repay part of the borrowings of AirAsia, the company said. The new shares represent as much as 20 per cent of the equity.

AirAsia has ordered 175 planes from Airbus SAS, making the carrier the biggest customer for the planemaker’s single-aisle aircraft in Asia. The Sepang, Malaysia-based airline is expanding its fleet to add more routes to China and India as economic growth in the region spurs travel demand.

The airline had a debt-to-equity ratio of 4.17, based on RM1.605 billion (US$458 million) of equity and RM6.691 billion of total debt, according to data compiled by Bloomberg and AirAsia’s most recent annual report.

AirAsia rose 2.7 per cent to RM1.54 in Kuala Lumpur today. The stock has gained 78 per cent this year. - Bloomberg

AirAsia sees more than RM1b in coffers
By Jeeva Arulampalam Published: 2009/08/04

Low-cost carrier AirAsia Bhd (5099) expects to have more than RM1 billion in its coffers by the end of the year, as it grows its profits and undertakes a private placement, says its chief.

“The cash will be used to lower the group’s gearing,” group chief executive officer Datuk Seri Tony Fernandes told reporters after the airline’s annual and extraordinary general meetings in Sepang yesterday.

In an announcement to Bursa Malaysia yesterday, AirAsia has proposed a private placement of up to 481.14 million new ordinary shares of 10 sen each, which could potentially raise gross proceeds of up to RM601.43 million.

The proceeds are based on an issue price of RM1.25 per placement share, representing a discount of 3.10 per cent to the five-day weighted average market price of AirAsia shares up to and including July 27 of RM1.29.

This will represent up to 20 per cent of the issued and paid-up share capital of AirAsia as at July 27 of RM237.56 million, comprising 2.37 billion shares.
“Our aim was just to raise some RM500 million to reduce our net gearing.

We have received interest from many local and foreign investors,” said Fernandes.
The placement will reduce the airline’s net gearing from 3.71 times to 2.56 times based on its unaudited accounts as at March 31 2009.

As much as RM68.76 million of the proceeds will be used to re-pay part of AirAsia’s interest-bearing borrowings.
When asked if the placement will be done in tranches, Fernandes said the group would rather place the 20 per cent altogether upon receiving the necessary regulatory approvals.

The private placement is expected to be completed by the fourth quarter of this year.

Meanwhile, the group’s current cash and cash equivalents as at March 31 2009 stood at RM223.99 million.
On the airline’s overall business, Fernandes said passenger growth was good for its second quarter ended June 30 2009, with a load factor of 76 per cent.

“We do hope to announce a positive second quarter and move towards a profitable full year,” he said.
AirAsia is expected to release its fiscal second-quarter results within the next two weeks.

It posted a net profit of RM203.1 million for its first quarter.
Fernandes also said that AirAsia is currently in discussions with Malaysia Airports Holdings Bhd over the outstanding airport taxes owed to the airport operator.

“The airport charges should be resolved in the next two to three weeks,” he said.
Fernandes also denied that AirAsia is eating into Malaysia Airlines’ (MAS) market share.

Rather, it has grown the domestic and regional air travel markets.
“The only way we have grown from 200,000 to 24 million passengers is by offering low fares and developing 44 new routes.

I can’t see how we can cannibalise when we start flying brand new routes not served by MAS,” he said.

Strong demand for AirAsia new shares
Published: 2009/08/04

SOUTHEAST Asia’s largest budget carrier, AirAsia, has seen strong demand for its share issue worth US$172 million which it will use to reduce its debt, chief executive officer Datuk Tony Fernandes said today.

The airline plans to place up to 481.1 million shares, representing a 20 per cent stake, to buyers to be identified later, sending its stock 6 per cent lower.

As of mid-June, AirAsia was one of Airbus’s biggest customers in terms of outstanding orders.

Fernandes said the company’s new shares will be priced at a 5 to 10 per cent discount to the market price of AirAsia shares at the time of issue.

“There’s a lot of liquidity in the market. We think (now) is a good time to reduce our gearing,” he told Reuters by telephone.

By 0400 GMT, AirAsia shares were down 6.5 per cent at RM1.44 with more than 5.0 million shares traded against a daily average of 4.3 million shares over the past 30 days.

Maybank Investment Bank analyst Khair Mirza said the airline’s gearing will drop to 3 times by end-2009 from 3.8 times.

“But we consider the 17 per cent earnings per share dilution a steep price to pay for a temporary respite,” said Khair, who has a sell recommendation on the stock.

AirAsia has received strong expressions of interest from both foreign and local institutional funds for the new shares, Fernandes said, adding that the placing is expected to be completed by the second week of September.

The stock has jumped 69 per cent so far this year, outperforming a 34 per cent rise in the broader market.

“We recommend investors to switch to Malaysia Airports for low-risk leverage on the air travel market’s potential recovery in 2010,” said Maybank’s Khair.

AirAsia releases its second-quarter results on August 12. - Reuters

I think its no good now if they cant serve Sydney. AUH well done.

AirAsia X increases flights to Melbourne
Published: 2009/08/06

AIRASIA X will fly 11 times a week to Melbourne from Kuala Lumpur, starting December 1.

At present, it flies seven times.

It is offering seats from RM149 during the booking period from August 6 to 9 for travel between December 1 this year and April 30 next year.

Thai AirAsia to fly Bangkok-Taipei
Published: 2009/08/06

BUDGET airline AirAsia Bhd will start a non-stop flight between Bangkok and Taipei on September 25.

It will offer all-in-fares from NT$690 one-way online at www.airasia.com during the booking period from August 6 to 11 for travel between September 25 this year and January 9 next year.

The service will be operated by Thai AirAsia.

MAS unveils RM876m net profit for Q2
Business Times 6 August 2009

MALAYSIA Airlines announced a net profit of RM876 million for its second quarter ending 30 June 2009. This represents the highest ever quarterly net profit recorded by the airline.

This profit offsets Malaysia Airline’s RM695 million net losses in Q109, leading to a first half net profit of RM181 million.

Due to the recovery of oil prices since 31st March 2009, Malaysia Airlines’ fuel hedging losses of RM640 million in Q109 has been reversed with a RM1.3 billion gain in Q209.

Since the beginning of the year, the airline has implemented aggressive sales campaigns to deal with the worst crisis facing the industry. It has successfully increased its load factors to 66% in Q209, a double digit growth of 10% compared to 56% in Q109.

In response to the growing demand with domestic load factor up to 69% at Q209, Malaysia Airlines has increased capacity by 6% by adding more aircraft for the domestic sector.

The airline also made substantial load factor gain for its international routes with loads up 11% to 65% compared to 56% in Q109.

“We are managing well in this crisis. While the operating environment remains tough, the load factors have increased due to our aggressive strategies to boost sales. On the domestic front, more passengers are travelling with us.

“On the international routes, we have performed better than the industry average as we are less dependent on the front end,” said Managing Director Chief Executive Officer, Dato’ Sri Idris Jala.

He added, “Our forecasted booking numbers for the second half of the year are encouraging. With the loads on an upward trend, we will now be able to work on increasing the yield.”

The airline has aggressively pushed sales by offering various fare promotions ranging from Everyday Low Fares, Weekend Specials, Malaysia Airlines Travel Fair, and the MAS Stimulus Package which offers 9 fare options covering all classes of travel.

From January to June 2009, internet sales at www.malaysiaairlines.com grew 82% or RM272 million compared to the same period last year.

The MAS Stimulus Package which was launched on 15 April this year has registered sales amounting to over RM93 million.

Recently, Malaysia Airlines launched the ASEAN Pass. Since the soft launch of the pass on 1st June, 5,000 passes have been sold, generating RM1.2 million in revenue.

“We will continue to push hard with some 15 sales campaigns planned for Malaysia and over 30 for international. We will also be ramping up our advertising spend for the rest of the year,” he also said.

To date, Malaysia Airlines Corporate Sales Programme has 1,120 corporate clients which are expected to provide revenue of some RM400 million. Some 80% of these clients which are mainly multinationals and Government Linked Companies are in the top 30 FTSE Bursa Malaysia KLCI.

“We expect the economy to recover next year, and are looking forward to take delivery of our new B737-800 in 2010 to capture the expected growth. We are reviewing the aircraft requirements according to supply and demand, and realigning our capacity to tap into the growth in demand.

“We will increase our frequencies into key ASEAN capitals, South Asia, China and offer more flights to certain points in Australia.

“In the Middle East, we are looking at expanding our services into at least 3 new destinations. We are currently in the process of finalizing these details,” Jala said.

He added, “We will remain focused on what truly matters – bringing in the sales, and preparing to capture the growth next year. These are challenging times but when the going gets tough, the tough get going. We will emerge out of this, stronger, more resilient and a winner.”

In July 2009, Aviation Week announced Malaysia Airlines as one of the top 3 airlines in the world (together with Singapore Airlines and Lufthansa) capable of weathering the current crisis. - Bernama

AirAsia to defer 8 Airbus deliveries to 2014
Published: 2009/08/06

AirAsia Bhd, Southeast Asia’s biggest discount carrier, said it will defer the delivery of eight Airbus SAS A320 aircraft to 2014 from 2010 because of “infrastructural constraints” at an existing airport.

The airline may also defer the delivery of another eight such planes to 2014 from 2011, and will make a decision on the delay by Oct 31, it said in a statement to the stock exchange in Kuala Lumpur today. AirAsia won’t incur any penalties in revising the delivery schedules, it said.

“AirAsia foresees infrastructural constraints with the current airport facilities and until the new low-cost carrier terminal is constructed,” the company said. “The present infrastructure at the low-cost terminal is not able to accommodate AirAsia’s fleet expansion in the number of aircraft originally scheduled to be delivered in 2010 and 2011 under the purchase agreement.”

AirAsia had its 2010 and 2011 net income estimates cut by 12 per cent and 18 per cent, respectively, at RHB Research Institute Sdn Bhd last month, after the Star newspaper reported that the airline planned to delay some plane deliveries.

The carrier will now receive 16 aircraft next year, from the original 24, it said. Should it decide to defer the delivery of the eight planes in 2011, that will reduce the number for that year to 15, it added.

“The rationale to scale down on the delivery of aircraft in 2010 and possibly 2011 is to enable AirAsia to optimize its fleet and avoid the costs associated with leaving idle or under- utilized aircraft due to infrastructural limitations, avoiding having to incur depreciation, interest expense and other costs without earning revenue,” the company said. - Bloomberg

Malaysia Airlines defies industry slump, reports record profit
Friday August 07 2009
UPDATED

PETALING JAYA, Aug 6 — Malaysia Airlines (MAS) recorded its highest ever quarterly net profit despite the ongoing slump in the airline industry due to the global economic slowdown.

Its net profit of RM876 million offset first quarterly losses of RM695 million leading to a first-half net profit of RM181 million, becoming one of the few major airlines to report a profit for the first half of the year.

The airline had implemented very aggressive sales campaigns to deal with the worst ever crisis facing the industry. Load factors subsequently increased to 66 per cent in the second quarter compared to 56 per cent in the first quarter.

The airline will continue to focus on growing sales and an advertising blitz consisting of some 15 sales campaigns has been planned for Malaysia and another 30 for the international market.

“We will focus on top line growth,” said CEO Datuk Seri Idris Jala, who however declined to reveal the size of the advertising campaign budget citing the need to maintain trade secrecy.

He said that based on previous years, he expects the second half the year to be better than the first.

Revenue dropped to RM2.565 billion from RM3.774 billion in the previous quarter due to capacity cuts and reductions in passenger yield.

However, the airline managed to reverse a RM640 million fuel hedging loss in the first quarter with an RM1.3 billion gain in the second.

“We will continue to hedge our fuel costs to protect us against price increases,” said Idris.

A much talked about possible salary cut will also not be implemented this year but a salary freeze will take place next year, saving the company about RM100 million.

Impact from the A(H1N1) virus on passenger volumes were limited to the North Asia and China markets which recorded a drop in volume compared to last year.

Idris attributed the airline’s profitability despite the tougher business climate to the “dual pricing strategy” of offering low fares for non-peak flights.

“The answer lies solely in dual pricing,” said Idris. “We play the game of yield for peak flights and low fares for non-peak flights. This dynamic pricing is the way we want to navigate the current crisis.”

Malaysia Airline’s cash and negotiables remained at a comfortable level, though it had deteriorated to RM2.938 billion from RM3.772 billion in the first quarter.

The airline had “proactively” reduced capacity by 12 per cent during the quarter to contain costs, but does not plan to cut capacity further and will instead increase capacity on routes to Tawau, Sandakan, Seoul and Taiwan in addition to introducing three new destinations in the Middle-East.

Idris added that due to the focus on increasing load factors through fare promotions, yields had dropped during the quarter when compared with the previous year.

He pointed out however, that the airline can now afford to try and boost yields due to improved passenger load conditions, citing forward bookings for the second half of the year that had increased by 16 per cent compared with the same period last year.

The airline industry is expected to report losses of about US$9 billion (RM31.5 billion) this year according to the International Air Transport Association due to the economic slowdown and fear of travel stemming from the spread of the A(H1N1) virus.

Even perennially profitable Singapore Airlines had reported a loss of RM708 million during the first half of the year.

Malaysia Airlines was recently named as the third most financially viable airline by trade publication Aviation Week, behind only Singapore Airlines and Lufthansa.

“The high ranking is due to the work we have done in the past three years in our turnaround plan,” said Idris.

MAS to freeze pay from 2010
Published: 2009/08/07

The salary freeze is expected to save the airline some RM100 million next year as it seeks to conserve cash in a tough operating environment.

NATIONAL carrier Malaysia Airlines (MAS) (3786) will impose an across-the-board salary freeze from next year, says its chief.

"We announced two weeks ago the salary freeze after consulting with our staff the things we could do to tighten our belts," MAS managing director and chief executive officer Datuk Seri Idris Jala told a press conference to announce the airline's second quarter results in Petaling Jaya yesterday.

The salary freeze is expected to save the airline some RM100 million next year as it seeks to conserve cash in a tough operating environment.

"If there are any other specific areas where we intend to make further reduction by allowances, it will not be made unilaterally. It will be made after consulting our union and staff members," he added.

In June, it was reported that MAS was in talks with its employees on cost-reduction measures. It has ruled out a lay-off.

MAS upgraded, soars most in 3 months
Published: 2009/08/07

Malaysian Airline System Bhd, the national carrier, rose the most in three months in Kuala Lumpur trading after reporting its highest quarterly profit in at least a decade.

The airline climbed as much as 8.1 per cent to RM3.35, the biggest intra-day gain since April 30. The shares changed hands at RM3.25 at 10:44 am in Kuala Lumpur trading.

Net income surged 22-fold in the second quarter after gains from fuel-hedging contracts helped mask an operating loss. Chief executive officer Idris Jala yesterday said the airline has no plan to cut capacity, cancel or defer delivery of aircraft as forward bookings are “looking good.”

“Malaysian Air’s traffic contraction has moderated significantly,” AmResearch Sdn Bhd, a local brokerage, said in a report dated today. The brokerage upgraded the company’s stock to “hold” from “sell.”

Profit at the Subang, Malaysia-based airline totalled RM876 million in the three months ended in June, helped by a RM1.3 billion paper gain from fuel-hedging contracts. Crude oil price gained 41 per cent in the quarter.

The operating loss was RM421 million after revenue slumped 32 per cent to RM2.56 billion, the company said in a statement after the stock market closed for trading yesterday. The airline’s second-quarter passenger numbers declined 11 per cent to 2.82 million, according to the company’s website. -- Bloomberg

Malaysia Airlines' Q2 profit highest ever despite economic crisis
Friday August 7, 2009
By LEONG HUNG YEE

http://biz.thestar.com.my/archives/2009/8/7/business/p1-mas.JPG

Datuk Seri Idris Jala ... ‘The net profit was even higher than
our net profit in the (full) financial year ended Dec 31, 2007.’

PETALING JAYA: Malaysia Airlines (MAS) reported an operating loss of RM420.8mil but exceptional derivative gains of RM1.34bil on fuel hedging resulted in the carrier reporting a net profit of RM876mil in the second quarter ended June 30.

The operating loss was largely due to lower operating revenue in line with the declining trend in global travel and cargo movements.

Its operating expenditure decreased by 20% while fuel cost was 56% lower during the quarter.

At its results briefing yesterday, chief executive officer and managing director Datuk Seri Idris Jala said the net profit achieved in the quarter was the highest ever quarterly net profit recorded by the airline.

“The net profit was even higher than our net profit in the (full) financial year ended Dec 31, 2007,” he said, adding that it offset the net loss of RM695mil registered in the first quarter and showed a RM1.57bil improvement in the second quarter.

For the first quarter ended March 31, its net loss included a derivative loss of RM557mil following the early adoption of the Financial Reporting Standard 139 (FRS 139).

MAS had recognised fuel-hedging contracts to reflect its fair value changes due to movement in mark-to-market position and took a charge on its balance sheet of RM3.8bil starting Jan 1.

Revenue for the first six months fell to RM5.3bil from RM7.52bil in the same period last year. It recorded a net profit of RM180mil, or 10.78 sen, compared with RM160mil, or 9.58 sen, previously.

In a filing to Bursa Malaysia yesterday, MAS said if it had not adopted the FRS 139, its operating revenue would have been RM2.49bil and a net loss of RM803.7mil for the second quarter.

MAS would have posted a net loss of RM1.59bil for the first six months ended June 30 on revenue of RM5.19bil if it had not adopted the FRS 139.

To contain its expenditure, Jala said MAS would freeze salary increases next year for its employees.

Chief financial officer and executive director Tengku Datuk Azmil Zahruddin said the move to freeze salary increases could help to reduce its operating expenditure by about RM100mil.

He said the airline still had a robust balance sheet to weather the crisis but it needed to continue its effort to cut cost.

As at June 30, MAS’ cash and negotiable deposit balance stood at RM2.93bil.

The group shareholders’ equity, which turned negative RM459mil and triggered the criteria of being an affected listed issuer under PN17, had turned positive in the second quarter with RM420mil.

Jala said MAS was managing well in this crisis. “While the operating environment remains tough, the load factors have increased due to our aggressive strategies to boost sales. The sales campaign that we do is beginning to bear fruit. The campaign for the next six months will be like never before.”

Its load factors increased to 66% in the second quarter compared with 56% in the first quarter leading the carrier to capacity increase of 6% in the domestic sector.

“On the international routes, we have performed better than the industry average as we are less dependent on the front end.

“Our forecast booking numbers for the second half of the year are encouraging. With the loads on an upward trend, we will now be able to work on increasing yield,” he said, adding that its yield was 16% lower at 23 sen year-on-year.

Jala said with the strong forward booking on air tickets, MAS was hopeful of improving its performance in the second half and remain profitable for the full year. “I am always a hopeful person. We have consistently been profitable. My team will do the absolute best.”

Asked if its performance for the second quarter would be an indicator for the group to remain profitable this year, he said the carrier would do its “level best” but there was no surety.

He said green shoots were coming out but was not sure if it could be a reality.

Jala said the airline would increase the number of flights to key South-East Asian capitals, South Asia, China and expand its network with three new destinations in the Middle East.

MAS is studying plans to buy a new fleet of wide-bodied aircraft to replace its current planes but has yet to make any decision.

The airline has hedged 47% of its fuel requirement this year and 63% of its needs for 2010 at a price of about US$95 a barrel.

Turbulence at Malaysia Airlines

MALAYSIA Airlines says its net profit of RM876mil for the second quarter of this year is its highest ever quarterly profit. Yes, that’s true but that’s not the whole truth.

The whole truth is this: The accounting profit due to hedging gains masks Malaysia Airlines’ serious operational problems caused by declining traffic and prices, and high costs. If it does not reverse this soon, it could well run out of cash not long from now.

Despite the net profit of RM876mil, Malaysia Airlines had an operating loss of RM420mil for the same period, after taking out a gain of a massive RM1.34bil from a partial reversal of provisions of nearly RM4bil for derivative losses.

How’s that possible? How could accounting net profit be so good but the actual financial position and outlook for the company be so dire? Here’s how.

Malaysia Airlines adopted Financial Reporting Standard 139 (FRS 139) from the beginning of this year. Effectively, this standard requires hedging positions to be marked to market value and the resulting loss or gain to be taken into the books.

On first adoption of this, Malaysia Airlines had huge losses of RM3.95bil, which were taken straight into the balance sheet – not via the profit and loss account. These losses are not actually realised but represent the losses if oil prices remained at the level they were at Jan 1, 2009.

For the first quarter of the year to March 31, 2009, Malaysia Airlines, as oil prices continued to decline, made huge hedging losses of RM567mil, pushing net losses to about RM695mil. Why, when oil prices are declining, should Malaysia Airlines lose in terms of hedging? That’s because Malaysia Airlines had hedged at prices believed to be roughly equivalent to around US$100 a barrel for oil.

While oil prices declined (to as low as US$30 a barrel), the losses from its derivative contracts increased as they are marked to lower fair values. That means it effectively continues to pay high prices because of the hedges which basically capped prices of oil but did not provide for benefits to flow if prices fell instead.

On hindsight that was a bad move because oil prices declined. But Malaysia Airlines practised what it called competitive hedging which means it did what most other airlines did when it came to hedging – a follow-the-leaders policy that has cost it dearly.

Why does it benefit when oil prices are rising? That’s because it has already taken a hit for when the price was low – remember the RM3.95bil charge against the balance sheet for derivative losses. That charge put it in negative territory in terms of accounting equity or shareholders’ funds even though it had cash of close to RM4.62bil then (Dec 31, 2008).

Because of this charge, any rise in the oil price towards US$100 a barrel enables recovery in proportion to the increase in oil price, and if the price goes up to US$100 or more a barrel it will enable the recovery of most of the RM3.95bil provision.

But here’s the important point to remember: Malaysia Airlines’ current profit and more are coming entirely out of the provisions for hedging losses it made – if there had been no provision, there would have been no profit.

And here is where the accounting standard fails in painting a true picture to the public.

The previous one-time charge was taken through the balance sheet. The standard, however, allows any subsequent gain in an accounting period to be taken through the profit and loss account, misleadingly inflating reported profit.

It would have been better if the gain had gone straight to the balance sheet via an adjustment to the value of the derivative contracts, leaving the profit unchanged. But such is accounting policy at times.

What would be a fairer and more accurate reflection of profit? It can be argued that this would be if all hedging losses/gains are allocated and expensed to the period in which they were realised. In other words, if actual incurred costs were used.

This would be if FRS 139 had not been introduced. Then, Malaysia Airlines would have reported a loss of RM803mil for the latest quarter and a loss of RM1.6bil for the first half of the year, according to figures disclosed by the airline.

That looks like a much fairer reflection of the actual predicament that it faces.

When accounting seems dubious in terms of painting the true picture, it always pays to look at the cash position.

For the first half of this year, figures show that operations drained nearly RM1.5bil in cash, almost equivalent to the loss if FRS139 had not been used. That means in a year, the airline could be out of cash if it does not start reversing the situation.

As at Dec 31, 2008, the airline had RM4.62bil in cash, reducing by a huge RM850mil to RM3.77bil as at March 31, 2009 and by a further RM830mil to RM2.94bil as at end-June 2009. That’s a rapid rate of cash depletion of almost RM1.7bil in a mere six months.

There’s still a lot of cash and it gives substantial cushion for the airline to weather the downturn but only if it can turn around into operational profit and start generating cash flow once again. At the moment, the airline is in the grip of a potentially lethal pincer attack – its high fuel expenditure caused by hedging that went wrong and severe declines in revenue caused by both falling prices and reduced demand.

That’s a terrible place to be and the public would have appreciated a straight address by the airline on these pressing issues instead of the emphasis on the record reported but misleading profits. How Malaysia Airlines is going to generate cash is the question to answer. By glossing over the whole truth (its media release never so much as mentioned an operating loss of RM420mil for the second quarter of the year or highlighted the drain on cash) and choosing to focus on record quarterly accounting profits, Malaysia Airlines does a disservice.

This is not only to its shareholders, mainly the Malaysian Government, but also its customers and the Malaysian public, which indirectly owns most of the company, all of whom deserve a clearer explanation of its financial situation and future plans.

l Managing editor P. Gunasegaram thinks that sometimes accounting is an ass, much like law is more often.

AirAsia scraps plan for Viet budget carrier
Published: 2009/08/11

LOW-COST carrier AirAsia Bhd has scrapped a plan to partner Vietnam Shipbuilding Industry Group to set up a budget carrier in Vietnam.

It terminated a letter of intent (LOI) signed by both parties almost two years ago, it said in a statement to Bursa Malaysia yesterday.

“As a matter of formality, AirAsia has through a letter dated August 10 2009 informed Vinashin that the LOI is now of no further effect save for confidentiality provisions which the parties had agreed to upon signing the LOI,” said AirAsia.

Unions object to AirAsia’s request for review of RAS routes
Wednesday, August 12th, 2009

KUCHING: Airline workers unions in East Malaysia are furious the Transport Ministry would even consider reviewing the scrapping of AirAsia’s Sibu-Kota Kinabalu route after what they had gone through during the Fly Asian Express (FAX) episode.

In a strongly worded statement yesterday, Airlines Workers Union Sarawak (AWUS) and Air Transport Workers Union Sabah (ATWUS) told the ministry not to ‘kowtow’ to AirAsia.

The statement, signed by AWUS president Haswandy Morshidi and ATWUS president Mohd Alfreedo Mohd Yahya, objected to any plan by the ministry to go back on its decision to award the route to Malaysia Airlines’ (MAS) subsidiary, MASwings.

They recalled that when the government announced the new domestic aviation restructuring some three years ago, there were extensive negotiations between MAS and AirAsia, which took over the domestic flights including the Rural Air Service (RAS) through its subsidiary, FAX.

As a result of the route rationalisation, they said more than 2,600 MAS staff were affected, including about 700 from Sabah and Sarawak, who had to leave MAS on a mutual separation scheme (MSS).

At the same time, they said MAS had to close down a few of its stations and staff were either transferred or offered the MSS.

Lahad Datu was one of the stations affected when FAX commenced operation.

“AirAsia is quick to blame MAS and MASwings, but where were they when the public and passengers were complaining about FAX service and punctuality?

“If AirAsia cares so much for the public, why aren’t they flying to the unprofitable sectors such as to Labuan which they have abandoned and now serviced by MASwings only?” they asked.

They claimed that by demanding the Sibu-Kota Kinabalu route, AirAsia showed no regard for the agreement between the government and MAS or MASwings.

The unions said this not only had an impact on MASwings’ business, but also the staff and the public at large.

“If this is allowed, how are we the staff assured that there will not be another ‘route rationalisation’ for the sake of ‘kowtowing’ to AirAsia.

“Allowing AirAsia to fly this sector would also mean the government subsidising the profit of AirAsia because MASwings would not be able to optimise their seat capacity. Again this would mean creating profit for AirAsia from the tax payers’ coffers,” they stressed.

In this respect, the unions urged the Transport Ministry not to take up the interest of AirAsia alone, but also the interest of the current workforce of MAS and MASwings.

AirAsia posts RM139m Q2 net profit
By Jeeva Arulampalam Published: 2009/08/13

http://www.btimes.com.my/articles/jtony12/pix_topright

LOW-COST carrier AirAsia Bhd (5099)continued with its profitable streak, recording a second quarter net profit of RM139.2 million.

AirAsia group chief executive officer Datuk Seri Tony Fernandes said the airline remains confident of passenger demand and is keeping its forecast of a 20 per cent full-year growth.

"Despite lower yields, we will be able to make up for it in terms of volume," he told analysts during a conference call yesterday.

However, the airline has cautioned that the third quarter is the weakest quarter due to the Ramadan fasting month.
For the three-month period ended June 30 2009, AirAsia's revenue grew 8 per cent to RM657 million from a year ago. It posted a net profit of RM9.4 million for the same quarter in 2008 due to foreign exchange losses and high fuel costs.

Growth in the quarter under review was due to higher passenger volume, stronger ancillary income and write-backs on certain previously made over provisions.

Passenger volume was up 24 per cent to 3.52 million but the average fare was lower by 19 per cent at RM160 compared with RM198 from a year ago. Load factor remained unchanged at 75 per cent.

AirAsia's core operating profit jumped to RM128.4 million, from RM29.98 million a year ago.

Meanwhile, the airline's associates in Thailand and Indonesia made losses in the second quarter, at RM8.2 million and RM21.8 million respectively.

For the first half of 2009, AirAsia saw its net profit double to RM342.3 million from one year ago. Revenue grew by 20 per cent to RM1.37 billion due to higher passenger volume and ancillary income.

Passenger volume increased 22 per cent from a year ago while the average fare was down eight per cent at RM178 million. Load factor dropped by 1.4 per cent to 72.3 per cent.

Fernandes also said that the airline will continue buying fuel on the spot market and has not entered into any new fuel hedging contracts.

Fernandes added that AirAsia was in talks with the Department of Civil Aviation for an additional eight parking bays at the Low Cost Carrier Terminal (LCCT) in Sepang.

"We are currently one parking bay short and are optimistic of getting the additional parking bays, which mean utilising the taxiway," he said.

He added that the additional deferment of eight aircraft in 2011 was likely given infrastructure constraints at the present LCCT and possible delay in the development of the new LCCT.

AirAsia profit soars on cheap travel demand
Thursday August 13 2009

KUALA LUMPUR, Aug 12 — AirAsia, Asia’s largest budget airline by fleet size, reported sharply higher quarterly earnings as dwindling demand for full-fare carriers amid the economic downturn boosted discount airlines.

Regional budget carriers such as AirAsia and Jetstar Asia Airways, partly owned by Australia’s Qantas Airways Ltd, and Tiger Airways, 49 per cent owned by Singapore Airlines, have either added capacity or increased flight frequencies to cope with higher demand.

“While major legacy carriers are cutting flights, grounding planes, retrenching staff and reporting massive losses, AirAsia is seeing rising demand, adding more routes, increasing frequency and securing higher profits,” Tony Fernandes, AirAsia’s chief executive, said in a statement today.

Underlying passenger demand in the third quarter remains positive based on forward booking trends, he said.

Full-service carrier Malaysia Airlines said last week it returned to profitability in the second quarter, boosted by revaluation gains from fuel hedging, but still made losses at the operating level. — Reuters

When will Air Asia start an Islamabad - KL flight! with their fares they would swep the asia pacific market from the exisiting thai, singapore, pia and cathay airlilines!

Daily flights to Kuala Lumpur in three months

Subhro Niyogi, TNN 15 August 2009, 03:10am IST

KOLKATA: Three years after Malaysia Airlines withdrew operations from Kolkata after servicing the sector for only a year, Kuala Lumpur-based low-cost airline, AirAsia Berhad, is set to revive the connection between the Malaysian capital and Kolkata with daily flights from November 7.

AirAsia is Asia's largest low-fare, no-frills carrier that began operations in 1996. It will operate a 180-seater Airbus A320 aircraft. The incoming flight AK 203 will touch down at the city airport at 4.30 pm. The return flight, AK 204, will take off for Kuala Lumpur half an hour later.

The revival of flights to Malaysia comes as a huge boost to the sagging fortunes of international traffic from Kolkata with JetStar Asia, British Airways, Gulf Air, Royal Jordanian, KLM and even Air India deserting the city. Among carriers that have touched down are Emirates, Air India Express, Bangladeshi private carriers and international wings of Jet Airways and Kingfisher Airlines.

"The revival of flights between Kuala Lumpur and Kolkata is significant, given the Centre's Look East' policy. Business and holiday traffic between eastern India and South-East Asia is also likely to go up," said Sanjay Budhia, Malaysia's honorary consul general to the city. With Shah Rukh Khan announcing plans to set up a film city in Malaysia, the daily flight could also see Bollywood using different locations in the country for shooting movies.

The travel trade fraternity has also welcomed the flight's introduction and believes its convenient schedule will ensure that it does not go the way Malaysia Airlines did. The latter withdrew flights to Kolkata and several other cities across the globe as part of a radical rescue plan to save the airline that recorded a whopping 1.26 billion ringgit ($339 million) loss during April-December 2005. Only 48 of its 114 international routes were profitable.

Up close and personal
Saturday August 15, 2009 By CECILIA KOK

http://biz.thestar.com.my/archives/2009/8/15/business/b_07azran.jpg

Azran

AZRAN Osman-Rani unabashedly confesses that he gets distracted and bored quite easily, which he has self diagnosed as ADD (attention deficit disorder)! It’s a mighty challenge, he admits, to focus on anything for long and he constantly needs to be occupied to keep him going. And by that, he means he persistently craves new challenges. Indefatigable, indeed.

“I am more at ease when I have many things to do. If you do not give me anything to do, I can become very edgy and restless … I will go crazy,” Azran says.

It’s little wonder then that the AirAsia X chief executive officer revels in the high-paced, high-pressure airline industry.

“There is enough challenge here,” he says.

“In the first year, it was all about starting the company, then it was about getting new planes, then expanding the fleet size and routes. It’s been crazy.”

His career path in the turbulent sector began two years ago with a phone call, not just from anyone but from Datuk Seri Tony Fernandes, founder of low cost carrier AirAsia, whose triumphs in the industry are only too well documented.

Azran was then a senior director at Astro All Asia Networks plc. Suffice to say he got an earful of Tony’s pitch about AirAsia X; he wanted Azran to head the airline, which at that point, had only one aircraft and a bold business plan.

“The one thing that got me hooked was when Tony said ‘people think this cannot be done’. I thought – ‘wow, everyone in the world says this model can’t work’. That made me want to do it even more. I jumped at the opportunity and took a huge pay cut to join the team,” he recalls.

Despite the past year being one of the global airline industry’s worst times, the low cost long haul carrier has steadily increased its routes over that period. It’s not done yet of course.

“We are flying into new markets to secure more routes,” he says.

It has not been smooth sailing all the way. More recently, temperatures flared when the airline was denied the rights to fly to Sydney and Seoul.

“It was heartbreaking,” says Azran. But there’s no time to sulk. The company is moving on and as Azran says, there are many other opportunities out there.

When the StarBizWeek interviewed him recently, he had just returned from the Middle East. Sporting a red T-shirt and jeans, he enthuses that AirAsia X is keen on the Mid-East market and expects to launch some routes to the region by year-end.

How does a guy like Azran, with an insatiable thirst for the get-go, pass time when he’s not working? Why, sports of course.

“It’s important to release stress. Otherwise, the stress can build up and you will explode,” he says.

Azran is passionate about running marathons. When he can, he runs a 5km circuit around the Klang Valley on Sunday mornings.

He takes pride in having managed to complete the 42km Gold Coast Airport Marathon in Australia last month. He has also signed up to run in several international marathons in the months ahead, namely the Borneo International Marathon and Melbourne Marathon in October and Hangzhou Marathon in November.

In high school, he was a serious field hockey player. But when he went to the United States for his tertiary education, he discovered that field hockey was regarded as a “girl’s game” and that “real men played ice hockey.”

Soon, he found a new passion – the ultimate frisbee. Ultimate frisbee is relatively new to Malaysians but Azran is keen to build its following. He spends Saturday mornings at Kolej Bandar Utama coaching students in the sport.

Besides, spending time with youths makes him “feel young and sane”, says the father of three boys. Azran is married to Azreen Pharmy, a former news anchor with Astro.

Azran’s background in engineering comes handy at work, as he says it is not easy for the engineers to fool him by giving excuses for any technical problem that crop up in the aircraft.

“I get very upset when people don’t know what they are doing. When someone tells me something is wrong, I will keep on asking them why. This is how we figure out the root cause of the problem,” he explains.

Azran considers himself to be an accessible and engaging boss.

“I am open to new ideas. I do not have as much experience in the aviation industry to claim to be an expert. I also want to create opportunities for our staff.”

“Look at our team. It is small, but it’s diverse,” he says.

Azran says he learnt about the value of diversity from Malaysian tycoon Ananda Krishnan while working under the latter in Astro.

“We should actively seek to form a diverse team that cuts across racial and gender barriers. We have way too many monotonous companies. Just look at the top 50 listed companies, open their annual reports and take note of their management team. Most of the time, they are either very Malay, or very Chinese,” Azran says.

The two gadgets he never leaves home without – his Blackberry and laptop. And this – he’s got a “bucket list”.

“In my laptop, I have a list of things to do before I die,” Azran says, such as personal goals, and those in relation to health, finance and family.

Not surprisingly, one of the things in the list is to fly a plane. With that in mind. Azran is currently trying out the flight simulator.

And surprisingly, Azran wants to be a stand up comedian, to be on stage in front of thousands and make them laugh.

Clearly, an optimist, he says: “The best things have yet to happen.”

AirAsia X to fly to Abu Dhabi Nov 23
Published: 2009/08/19

AirAsia X, the Malaysian long-haul budget airline partly owned by AirAsia Bhd, will start flights to Abu Dhabi from November 23 2009.

The five-times weekly flight will connect Kuala Lumpur with Abu Dhabi, the airline said in an e-mailed statement today.

MAS to buy Transmile engineering unit
Published: 2009/08/19

MALAYSIA Airline said on Wednesday its aircraft maintenance unit plans to buy Transmile’s engineering unit to achieve a revenue target of RM500 million this year.

The plan involves the purchase of Transmile’s base maintenance and engineering capabilities including 2 hangars, equipment, and employment of its skilled manpower.

Malaysian Aerospace Engineering Sdn Bhd (MAE), a unit of Malaysia Airline, will also provide heavy maintenance services to Transmile’s fleet of 16 freighter aircraft, it said in a statement.

It did not provide any financial details for the transaction.
MAE currently services more than 80 customer airlines including Air Atlanta, Lufthansa, Saudi Arabian Airlines, Jet Airways and Delta Air Lines Inc. - Reuters

AirAsia targets new products to boost ancillary income
By Azlan Abu Bakar Published: 2009/08/25

http://www.btimes.com.my/articles/donut-2/pix_topright

Budget airline AirAsia Bhd (5099) projects ancillary income to increase 20 per cent in two years, backed by new in-flight food and passenger growth.

Its group chief executive officer Datuk Seri Tony Fernandes said food sales were a major part of the RM186 million revenue contributed by ancillary income in the first half of the year.

"Ancillary income represented 50 per cent of the total revenue," he said, adding that the airline also expects to see passenger numbers increase 20 per cent quarter to quarter this year.

Last year, its ancillary income was RM177 million. Food sales alone contributed RM30 million.

A substantial number of AirAsia's 20 million passengers last year had inflight meals, which have to be purchased.
Speaking to reporters after announcing the introduction of Krispy Kreme doughnuts on its flights, Fernandes said he was optimistic that the new product would help increase food sales.

Also present at the event were Berjaya Group director Datuk Robin Tan and Berjaya Krispy Kreme Doughnuts Sdn Bhd director Datuk Francis Lee.

"With the addition of Krispy Kreme to our in-flight menu beginning September 1, we offer guests another best-of-its class product. We expect it to begin contributing to our profit starting this quarter," Fernandes said, noting that nasi lemak remained the all-time favourite.

Meanwhile, Lee said that its tie-up with AirAsia could be considered a world first as no other airline offered doughnuts on their flights.

"We are excited to be flying our doughnuts with AirAsia and to be exposed to its large market," he said.

I took Air Asia flight from Jakarta (CGK) to Singapore and back. I have to say that it was much better than I expected.

Tempted to get something to eat from the snack attack, but decided to wait and get something from the airport.

AirAsia adds 7th China destination
Published: 2009/08/25

Malaysian low-cost carrier AirAsia said Tuesday it will launch its seventh route into mainland China in October as part of its regional expansion despite the economic slump.

AirAsia will be the first airline to fly direct from Kuala Lumpur to Chengdu, the capital city of Sichuan province in southwestern China, with four weekly flights from October 20, it said in a statement.

The carrier said the new route would be operated by its long-haul affiliate AirAsia X.

AirAsia already flies to Shenzhen, Guangzhou, Guilin and Haikou in the southern region, Hangzhou in the east and Tianjin in the north. It also has flights to Hong Kong and Macao.

With China a key trading partner for Souteast Asia, the new route will also boost trade and tourism, AirAsia said.

AirAsia X, which began long-haul operations in November 2007, currently flies from Kuala Lumpur to London, Australia, Taiwan and China. Last week, it announced it would launch flights to Abu Dhabi in November, marking the group’s first foray into the Middle East. - Agencies

Air Asia partners with... Oakland Raiders
From flickr

http://farm4.static.flickr.com/3517/3886971190_f7111df5ab_b.jpg

From flickr

http://farm4.static.flickr.com/3546/3806875561_7b3a1e532a_b.jpg

From flickr

http://farm4.static.flickr.com/3354/3436687402_f9ed361b37_b.jpg

No deferment of plane deliveries, says AirAsia X
By Presenna Nambiar Published: 2009/09/05

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

BUDGET long-haul carrier AirAsia X (5099) has no plans to defer the delivery of its planes, despite its parent doing so in anticipation of a possible delay in the construction of the new low-cost carrier terminal.

"No (we will not defer any plane deliveries), because we don't have the big numbers like AirAsia, we have been quite conservative in our expansion. The option is to keep the planes outside of Kuala Lumpur (KL), in order to reduce the congestion here," AirAsia X chief executive officer Azran Osman-Rani told reporters at its booth in conjunction with Matta Fair in Kuala Lumpur yesterday.

The airline will have eight wide-body aircraft by year-end, with another eight to be delivered on a staggered basis by 2011.

Azran gave an example that for an aircraft to initially return to KL after a flight to Abu Dhabi, it could look to send it on to Europe, rather than returning to KL.
"It is not an ideal situation and for AirAsia X, it is a real concern, considering that we have only four parking bays right now," he said.

Meanwhile, on its participation in the fair this year, Azran said that he is confident that AirAsia X will contribute some 40 per cent to the expected RM5 million sales AirAsia expects.

With a total of 30 booths, AirAsia is the biggest exhibitor at the Matta Fair.

"While the deals are similar to the ones that you can get online, this is really an avenue for them to also get a lot of other information they need, before they make their purchase decision," Azran said.

He believes that AirAsia will be able to double the number of tickets sold to 40,000 this year.

Azran is especially hopeful that its recently launched two new routes, Chengdu, in west China and Abu Dhabi in the Middle East, will be a hit with travellers.

Since the Matta Fair in 2008, AirAsia X has more than doubled the number of destinations it flies to from four to nine now.

MAS eyes larger slice of Mideast market
Published: 2009/09/07

HAVING come up with a slew of fare promotions to suit everyone's budget, Malaysia Airlines is hopeful of grabbing a larger slice of the Middle East market.

Its Regional General Manager for Middle East and Africa, Merina Abu Tahir, said since the beginning of the year, the airline had implemented aggressive sales campaigns, with all-inclusive fares, to deal with the worst crisis facing the industry.

"The market is growing in the Middle East and in line with this, we're offering various fare promotions to suit the size of everyone's wallet and lifestyle.

"Our current ongoing promotions from Dubai is competitively priced and benchmarked against our competitors," Merina said of the Malaysian national carrier's marketing plans and promotional attractions for Middle East travellers this year.

Noting that Malaysia Airlines was offering very competitive fares to encourage the demand for travel, Dubai-based Merina said sales had been brisk.

"This demonstrates that the public will choose to travel with Malaysia Airlines as they know that they'll get value for money as we offer up to 20 kilogrammes of free baggage allowance, free meals, assigned seating and many other benefits without charging them extra.

"In fact, our July seat factor was close to 70 per cent," said Merina of the five-star airline's performance.

According to her, the airline's main traffic during summer was leisure while travellers to Australia and New Zealand visiting friends and relatives as well as business travellers were also its target traffic.

"We're now focused on attracting the MICE (meetings, incentives, conferences and events) traffic and aggressively promoting our corporate sales programme to multinational companies," she said.

Queried on Malaysia Airlines' strength in the Arab world, she said the company held a lengthy record of service, best practice excellence, was well-known for its award winning cabin crew and assurance of serving halal food.

"This demonstrates that the public will choose to travel with Malaysia Airlines as they know that they'll get value for money as we offer up to 20 kilogrammes of free baggage allowance, free meals, assigned seating and many other benefits without charging them extra.

"In fact, our July load was close to 80 per cent," said Merina of the five-star airline's performance.

According to her, the airline's main traffic during summer was leisure while travellers to Australia and New Zealand visiting friends and relatives as well as business travellers were also its target traffic.

"We're now focused on attracting the MICE (meetings, incentives, conferences and events) traffic and aggressively promoting our corporate sales programme to multinational companies," she said.

Queried on Malaysia Airlines' strength in the Arab world, she said the company held a lengthy record of service, best practice excellence, was well-known for its award winning cabin crew and assurance of serving halal food.

She highlighted that the carrier's cabin crew was recognised as the World's Best Cabin Staff 2009, its sixth time since 2001.

"Our In-flight Services Audit and Compliance Department ensures that all food products served on flights are halal and comply with the standards of the Department of Islamic Development Malaysia (Jakim) as well as international standards such as Codex Alimentarius Halal guidelines," she stressed.

Merina added the airline had introduced value fares to the United Arab Emirate market to allow passengers flexibility to fly with preferred options.

There are MHlow and MHbasic that offer the lowest fares available while MHsmart and MHflex allow more privileges at affordable fares and value for money to passengers.

Malaysia Airlines has also introduced the Stimulus Packages offering special deals covering Business and Economy class travel, including additional free baggage allowance.

Under the promotions, a return ticket from Dubai to Kuala Lumpur, Terengganu and Kota Kinabalu costs between Arab Emirates Dirham (AED) 1,945, AED2,672 and AED3,030 respectively.

All-inclusive return fares from Dubai to Beirut and Karachi cost between AED1,165 and AED915 respectively, while attractive fares are also in store for Philippines, Indonesia and Canton.

For families, there is the "Kids Fly Free" promotion whereby those who purchase two adult tickets can get a free child ticket.

Under the MHflex category, a passenger can purchase one Economy class ticket and bring a companion along for free.

Malaysia Airlines currently operates non-stop flights between Dubai and Kuala Lumpur, five times a week, and via Karachi twice a week.

It also offers three weekly flights between Dubai and Beirut, four weekly flights between Jeddah and Kuala Lumpur and two weekly flights between Istanbul and Kuala Lumpur via Dubai.

The carrier also has code share flights from Abu Dhabi, Cairo, Bahrain, Doha, Kuwait and Muscat to Kuala Lumpur. - BERNAMA

MMC, MAS to launch new freighter flight
Published: 2009/09/08

MMC Corp Bhd said its unit Senai Airport Terminal Services Sdn Bhd has signed a deal with Malaysia Airlines Cargo Sdn Bhd to launch a new weekly freighter flight from Sultan Ismail Airport in Senai Johor to Narita, Japan.

The service signals a new beginning for Senai International Airport as a regional air cargo hub, MMC said in a statement to Bursa Malaysia.

MAS adds flights to Seoul, Taipei
Published: 2009/09/09

DUE to growing demand for flights to North Asia, Malaysia Airlines will increase its flights from Kuala Lumpur to Seoul, and to Taipei.

Effective Sept 17, Malaysia Airlines will have six weekly flights to Seoul except for Monday, the airline said in a statement today.

The additional flight departs Kuala Lumpur every Thursday at 11.30 pm and arrives in Seoul at 7.10 am.

The additional flight to Taipei leaves every Sunday at 9.20 am and arrives at 2.10 pm, starting from Oct 1. This means there will be 13 weekly flights to Taipei with six non-stop flights and seven via Kota Kinabalu.

Tickets are now available for purchase at www.malaysiaairlines.com.

Malaysia Airlines Senior General Manager, Network & Revenue Management, Dr Amin Khan said demand for air travel to North Asian destinations was picking up.

He also said both Seoul and Taipei have shown growth and the year end loads are up compared to 2008.

"We believe that this is the beginning of air travel recovery. We are starting to see more leisure travel. We expect business travel to pick up as well.

"We are constantly aligning demand with capacity. We are offering additional flights to Tawau and Sandakan, and will also be increasing flights to Bali," he added. - Bernama

AirAsia eyes Penang-Chennai route
Written by Regina William Wednesday, 09 September 2009 13:48

GEORGE TOWN: AirAsia will launch its daily flights from Penang to Chennai on Jan 1, 2010.

AirAsia CEO Datuk Seri Tony Fernandes said the new route, which was given the nod by the Ministry of Transport in June, was pending final approval.

He told The Edge that AirAsia was currently waiting to sign an agreement with Malaysia Airports Holdings Berhad (MAHB) for landing rights on the same route.

During the launch of the inaugural flight from Penang to Singapore on June 1, Tony had expressed hope to launch the Penang-Chennai route within three months, which was supposed to have been sometime this month.

"We have set Jan 1 to launch the first flight from Penang to Chennai and I am hoping to ink the MAHB agreement out soon," Fernandes told The Edge.

AirAsia currently only has one other destination to India which is to Thiruchirappalli, from the Low Cost Carrier Terminal (LCCT) terminal in Sepang.

The Penang-Chennai route will once again restore Penang's direct link with Chennai after more than six years.

MAS used to fly from Penang to Chennai but this was discontinued due to non-profitability of the route.

AirAsia is looking at seven flights a week out of Penang, one flight daily.

Besides Singapore, Penang is also connected by AirAsia to other international destinations such as Hong Kong, Bangkok, Jakarta, Medan and Macau besides the local connections to Kuala Lumpur, Kota Kinabalu, Kuching and Johor Baharu.

Sarawak

http://wikitravel.org/upload/en/5/53/MalaysiaSarawak.png

Make S’pore-Miri route a success: Dr Chan
By Anthony Joseph Thursday, September 10th, 2009

MIRI: Deputy Chief Minister Datuk Patinggi Tan Sri Dr George Chan yesterday advised players in the local tourism industry to be more creative and innovative in marketing Miri Division.

“They need to attract tourists coming to Miri through direct flight from Singapore to Miri mounted by AirAsia,” said Dr Chan who was at Miri Airport to welcome 103 passengers on board the first flight from the republic to Miri yesterday.

“The flight provides convenience for people in Miri to get to Singapore. Hopefully the number of flights will increase in the future. I’m aware when you start something like this…in the beginning it will be difficult because of lack of publicity. It may take time for people to fully realise (the work involved),” he said.

Dr Chan believed that Singaporeans and others were interested to visit Miri and the state in general for the attractions of culture, adventure and nature.

“Miri and Sarawak are a confluence of culture and nature which is mostly still untouched. I have no doubt that if this is well promoted by our people (tour agents), it is will be a success and in no time more frequent flights will come in,” Dr Chan said.

“Our tour agents can also sell Singapore to our people here. So they must work together for mutual benefit,” he added.

He thanked AirAsia for providing the service and assured that the route would turn out to be a money-spinner.

“Today, you have to work hard in the tourism industry. You cannot just leave it alone. You have to go to customers and customise your tour packages (for them). The direct Singapore-Miri flight is a good beginning to make tour operators here aware of the need to work hard,” said Dr Chan.

The flight would be four times a week — every Monday, Wednesday, Friday and Sunday.

At the airport to welcome the passengers were Assistant Minister of Infrastructure Development and Communication Datuk Lee Kim Shin and Miri Mayor Lawrence Lai.

Etihad to work with MAS onpassenger load
By Sharen Kaur Published: 2009/09/12

ETIHAD Airways, the national airline of the United Arab Emirates, aims to work more closely with Malaysia Airlines (MAS) to increase the number of passengers.

MAS and Etihad signed a memorandum of understanding last year to collaborate on code-sharing, frequent flyer programmes, ground and cargo handling to improve load factor, yield and opportunities to reduce cost.

Under the agreement, MAS is placing its "MH" code on flights operated by Etihad between Abu Dhabi and Bahrain as well as Doha in the Gulf region.

Etihad is placing its "EY" code on MAS flights between Kuala Lumpur and Kota Kinabalu, Penang, Kuching, Langkawi as well as Kuantan.

"Malaysia generates connectivity for us and represents a very important key destination for our network," Etihad country manager for Malaysia, Adam Phillips, said.

"We have done a lot in a short span of time in Malaysia. The possibility of point expansion here is endless," he told Business Times in an interview.

Etihad flies from Kuala Lumpur to Abu Dhabi and has connecting flights to the Middle East, Europe, Asia-Pacific, the US, Canada and South Africa. These routes are popular among Malaysians, Phillips said.

"We are identifying new cities and more partners to collaborate with to expand the business. We are one of the fastest-growing airlines in the world despite it being more challenging now."

Since its set-up in November 2003, Etihad has established code-sharing with 18 airlines.

Etihad has 46 Airbus and Boeing passenger planes, and will add six more by December.

It flies to 54 destinations. New routes this year included Melbourne, Istanbul, Athens and Cyprus.

Despite the global financial turmoil, Etihad will start to fly to Hyderabad, Chicago and Cape Town by the year-end.

Phillips said Etihad was on track to carrying seven million passengers this year, up 17 per cent from last year, attributing it to network and fleet expansion.

In the first six months to June, it carried 3.01 million passengers, up 8 per cent from the previous corresponding period.

"We had a bit of a double hit this year with the slowdown in economy and the influenza A(H1NI) pandemic, which put people off travelling. But the real challenge for us as an airline is recognition and understanding of the Etihad brand," Phillips said.

"We are only five years old in the aviation industry. We are getting the success right, but it's about getting the brand up. We are looking at sports sponsorship to build that and it is a great vehicle for going across international boundaries," he added.

Etihad announced in May its biggest deal as official club and shirt sponsor of the Manchester City Football Club, which plays in the English Premier League.

AirAsia Raiders plane to head for Oakland
Published: 2009/09/16

BUDGET carrier AirAsia Bhd is bringing its Raiders’ branded A340 from Kuala Lumpur to Oakland, the US, on Monday, in celebration of Raiders’ season opener against the San Diego Chargers.

AirAsia and the Oakland Raiders have teamed up to expand the Raiders’ fan base in Asia and to promote the AirAsia brand in the US, creating excitement for future entry into the US market.

AirAsia X chief executive officer Azran Osman-Rani said AirAsia X is now in the process of negotiations with airports in the US over a possibility of operating flights there.

It is exploring ways of commencing flights to the US much earlier than 2016.

AirAsia spreads its wings to American football
By AFTAR SINGH September 24, 2009

http://thestar.com.my/archives/2009/9/20/sports/s_p60airasia.jpg

Eye-catching trio: Three cheerleaders posing in front of AirAsia’s
Airbus A-340 at the Oakland International Airport on Sept 14.

AIRASIA is fast becoming synonymous with sports.

It has already penetrated the hugely popular English Premier League market, is a partner of the AT&T Williams Formula One racing team and is also the official low-cost airline for Manchester United.

Now, it has spread its wings to American football with its two-year sponsorship of the Oakland Raiders in the National Football League (NFL).

American football may not be as famous or as popular as soccer in this part of the world but that has not stopped AirAsia Group CEO Tony Fernandes from trying to promote the game here.

“It’s a very popular game in the US and we also want it to be one of the sports in Asia. We (AirAsia), with the help of Oakland Raiders, will make efforts to promote the game in Asia,” Tony told a press conference in Oakland last week.

His made those comments after AirAsia’s “Xcellence’’ – its Airbus A340 – touched down at the Oakland International Airport for the first time last Monday. On board the flight was a group of 10 journalists from Malaysia, Singapore, Thailand and Indonesia.

Also present were newly-appointed Malaysian Ambassador Datuk Seri Dr Jamaludin Jarjis, the city’s Mayor Ron Dellums, Oakland Raiders owner Mark Davis and CEO Amy Trask, AirAsia X CEO Azran Osman-Rani and director Datuk Lim Kian Onn.

“This is a very proud moment for us.

“We are excited to associate ourselves with an iconic team like Oakland Raiders. This partnership will greatly enhance our efforts to boost our brand globally.

“We are already a well known brand in Asia. We are on our way to becoming a household name in Europe.

“And now, our relationship with the Raiders will allow us to establish our brand in the United States,” said Tony.

The no-frills airline’s foray into the NFL is also a way for AirAsia to get landing rights in the US.

AirAsia had, in March, secured landing rights in Stansted, England, for the European tourists.

“We are now in the process of negotiating with airports in the United States on the possibility of operating flights into America,” said Tony.

“American destinations are very much in our long-term plans as demonstrated by our recent order of 10 Airbus A350 aircraft.

These planes will be delivered beginning 2016.

“However, we are exploring ways of commencing flights to the US by the end of next year.”

Tony also said that it would cost an American tourist just US$350 to fly from Oakland to Malaysia.

Once it takes off, Tony expects the NFL and Oakland Raiders’ fan-base to expand in Asia.

Speaking of the Raiders, the 10 journalists, including yours truly, were treated to the season-opening NFL match between Oakland Raiders and San Diego Charges at the Oakland Alameda County Coliseum Stadium on Sept 14.

Unfortunately, the Raiders lost 20-24. Raiders owner Davis was enthusiastic about AirAsia’s sponsorship, saying: “Not only is Xcellence the name of the plane but it is the driving force behind both our organisations to promote the game.”

AirAsia X eyes second French route
September 25, 2009

PETALING JAYA: While Nice will be AirAsia X’s first port of call in France next year, the long-haul low cost carrier is looking at adding a second destination in the country.

The carrier believed there was strong demand for flights between Nice and Kuala Lumpur but would not be launching the route “anytime soon”, AirAsia group chief executive officer Datuk Seri Tony Fernandes said in an interview with Bloomberg TV yesterday.

“Well, I think there’s a huge amount of demand. That would be our first point of call. We’ve also got the whole of the south of France, you’ve got Geneva a couple of hours away and you’ve also got Milan,” he said.

He said AirAsia was innovative in the way it looked at destinations and going to Nice was “really serving the whole of the south of France, a bit of Italy and Switzerland.”

Asked whether there would be more capital fund raising for AirAsia in the next two years, Fernandes said no.

“We had a fantastic roadshow, great demand, so we raised RM500mil. It’s only the second time we’ve been in the market. The first time was our IPO (initial public offering) in 2004,” he said.

The company announced its capital-raising last month to pare down its debt. Fernandes said AirAsia’s business income had been strong and ancilliary income was increasing. “Oil prices have come off substantially so we don’t see ourselves needing capital for a long long time,” he added.

On the expansion of AirAsia’s fleet, Fernandes said the company was looking to take in 16 planes next year, eight planes fewer than originally planned.

“The demand (for travel) has been very good. We’ve continued to outgrow capacity above 20% in the last two quarters (and) this quarter is looking very strong as well in terms of passengers,” he said. He said the carrier had just started flying into India, which “has been looking very good”.

AirAsia aims to beef up cargo revenue
By Jeeva Arulampalam Published: 2009/09/28

http://www.btimes.com.my/Current_News/BTIMES/articles/jacg8/Article/Current_News/BTIMES/Images/btgraph10/28azran.jpg

LOW-COST carrier AirAsia Bhd (5099) wants to increase its cargo business by targeting clients that are more price sensitive and less time sensitive, said AirAsia X chief executive officer Azran Osman-Rani.

Azran, who is driving AirAsia's cargo expansion, said the airline will be able to grow its cargo revenue by half in 2009 from the RM40 million recorded last year.

While cargo revenue represents roughly 1.5 per cent of the group's topline in 2008, the airline hopes to increase the contribution to 10 per cent by 2011.

"In the past, as a low-cost carrier, we did not look at cargo seriously as there were concerns that cargo may be disruptive to the core operations, which requires fast turnaround," Azran told Business Times in a recent interview in Sepang.

The airline, which utilises less than 20 per cent of the aircraft belly space for cargo now, has the potential to utilise up to 40 per cent of its cargo space for core routes including Kuala Lumpur to Kota Kinabalu, Tianjin, Guangzhou, Hangzhou, Melbourne, London, Bangkok and Jakarta.

"The reasons why the cargo business is interesting to us now is because we have started adding a lot more (new) flights and frequencies," said Azran.

While the shipment amount remains small, frequent flights, such as eight flights daily between Kuala Lumpur and Bangkok, allow the carrier to provide more competitive rates in the market due to under utilised cargo capacity.

Azran said rates can be up to 50 per cent cheaper compared with the market, lending to AirAsia's visibility as a viable alternative cargo provider.

"We are also setting up a strategic approach to the cargo network. So instead of just going point-to-point, we are working with cargo sales agents on how to piece together interline solutions," he said.

For example, cargo bound from China to Europe can be placed on an AirAsia flight from China to Kuala Lumpur and subsequently transferred onto an airline traveling from Kuala Lumpur to Europe.

"We talk to freight forwarders because they match the routes," said Azran.

AirAsia will not compete with large air cargo players but work with middle market players that can utilise AirAsia's services.

"There is a lot of business within the 24 to 48 hour window cycle for cargo movement, especially for people who are less time sensitive and want an alternative to shipping," he adds.

AirAsia also hopes to capitalise on its presence in the Chinese market given the country's large export industry.

"As China increases the value of goods that it produces such as sophisticated electronics or rich textiles, the demand for air cargo increases because they may not want to send it by ship," said Azran.

He added that two key cargo routes in China, Tianjin and Hangzhou, were already operated by AirAsia X.

"We have also heard that the Chinese government is going to start limiting cargo flights to Beijing Airport and will direct the cargo aircraft to Tianjin. This will make Tianjin a more prominent global cargo hub in the next six months," said Azran.

AirAsia flies into three more South Indian cities
Tuesday September 29 2009

SEPANG, Sept 28 — AirAsia, Asia’s leading low cost airline, will fly to Kochi, Trivandrum and Kolkata come December, in a move to expand its network in India.

AsiaAsia Group’s Regional Head of Commercial Kathleen Tan said AirAsia was flying now to Tiruchirappalli and would spread its wings to other destinations in India this year.

“Last year we were very busy working in China and we are now extensively covered in China. At present, AirAsia flies to Chengdu, Guangzhou, Guilin, Haikou, angzhou, Shenzhen and Tianjin in China.

“For the fourth quarter and next year, AirAsia will focus on building our network in India where there is huge demand,” she told Bernama in an interview today in conjunction with AirAsia’s 48-hour sales.

The two-day promotion, offers a 20 per cent discount on fares to all destinations, excluding London and Thailand, for the travel period beginning today until Nov 30.

It covers all domestic and international destinations across 20 countries and over 130 routes.

Elaborating on the Indian sector, Tan said AirAsia was looking at tapping destinations like Chennai, Bangalore, Hyderabad and AirAsia’s long-haul affiliate, AirAsia X, would look further at Mumbai and Delhi.

She said the Tiruchirappalli sector received overwhelming response from the population in Southern India who visited Kuala Lumpur and used it as a gateway to enter Southeast Asia.

On whether AsiaAsia was experiencing a dip in sales due to the economic downturn, Tan said AirAsia was not really affected due to the airline’s strategic commercial initiative to encourage people to travel.

“Because of the economic downturn, people are downgrading but corporate travellers still want to fly. AirAsia offered alternative solutions to get people to fly,” she said.

Tan said AirAsia’s market was huge covering the corporate, youth, retired, labour, family and student segments, adding that travelling during an economic crisis was best because of low prices offered by hotels.

“Because of our low cost model, the fares are affordable. We are changing the travel dynamics in Asia and we see more Malaysians flying now. In the past, people in East Malaysia will not come to Kuala Lumpur because of the expensive airfare,” she said.

Tan said the low cost carrier had opened up the flying experience as people not just travel for holidays but also for shopping or medical treatment.

She said AirAsia’s low cost model also boosted domestic tourism as the airline’s huge network enabled more Malaysians to take short domestic holidays to Kota Kinabalu, Kuching, Miri and Tawau.

“We see 2009 as a challenging year for the aviation industry. We removed fuel surcharge and administration fees because we want to keep flying at affordable prices to stimulate travel.

“AirAsia today is more than just about low fares. We are selling romance,

lifestyle and holiday dreams,” Tan said.

Asked on AirAsia’s sales target for 2010, Tan said the economy was recovering and people are beginning to spend.

“The worst is over, so let’s see. Our bookings have been very encouraging,” said Tan, adding that AirAsia was still expanding despite the challenging economy.Saying that the low cost model was more matured and gaining acceptance, Tan added that online booking was no longer an issue because people were more tech-savvy now.

On AirAsia’s 48-hour sales campaign, Tan said the airline rarely offered such a promotion.

“The campaign will encourage people to travel because this year was a tough year due because of the H1N1 pandemic and challenging economic factors,” she explained.

Asked on the sales expectation, Tan said: “I would not be able to give figures, it depends on the response, but I think the response will be good. We are running into the peak travel period now and people want to start planning their holidays.”

During the two-day promotion, AirAsia will offer a 20 per cent discount on fares to all destinations, excluding London and Thailand, for the travel period beginning today until Nov 30.

It covers all domestic and international destinations across 20 countries and over 130 routes. — Bernama

Setting course for MAS to reach new heights
By Presenna NambiarPublished: 2009/09/23

The most urgent task for Malaysia Airlines' (MAS) (3786) newly-appointed chief would be to position and brand the national carrier ahead of economic recovery, say analysts.

Datuk Tengku Azmil Zahruddin, previously the chief financial officer, took over as MAS' managing director and chief executive officer from Datuk Seri Idris Jala on August 28.

"With economic recovery possibly happening by the end of the year, passengers will be less concerned about the few dollars' difference in fares. MAS should position itself to take advantage of that. In the long run, the current low-fare scheme won't work," Maybank Investment Bank Bhd senior analyst Khair Mirza told Business Times.

He said that the last thing MAS needed was to price itself so low that it diluted the airline's premium-service products.

"What MAS must now ask itself is, what exactly it needs to do. It has cut all that it can cut - costs, size, network. The question is, as part of its fleet renewal plan, will it come up with something that meets the needs of the more price-sensitive consumers?"
Should MAS decide to come up with a new low-fare scheme for the long term, it should focus on giving exactly what a normal low-cost carrier (LCC) would give rather than the extra trappings it boasts of currently, Khair said.

"Azmil saying that he will continue with the existing plan is his way of not rocking the boat. I'm sure he will have new ideas worked out, and one of them should be what role (MAS' wholly-owned subsidiary) Firefly can play in the greater scheme of things. In a way, this is Firefly's opportunity to rise," he added.

Khair voiced hopes that Tengku Azmil would continue to ensure MAS was well represented in the formulation of government policies, adding his view that Idris had done a good job in this respect.

During Idris' tenure, MAS evolved into a new breed of hybrid carrier blending traditional full-service carrier traits with those of the LCCs.

During a press briefing in June last year, Idris had likened MAS' business model to a cross between full-fledged full-service airlines like Cathay Pacific Airways and Singapore Airlines and LCCs like AirAsia.

Standard & Poor's Asian Equity Research analyst Shukor Yusof said that as more and more airlines consolidate, MAS would have to decide where it wanted to position itself in the industry.

"There has been a wave of consolidation, as you can see in the likes of Japan Airlines. With the latest round of airline consolidation, where does MAS see itself being positioned?" Shukor questioned.

So far, rather than join any of the global airline alliances such as OneWorld and Skyteam, MAS has chosen to grow its network through code-share deals with other airlines.

"Would MAS be looking to join an alliance? This remains a key aspect of the business which needs to be addressed quickly," Shukor said.

MAS inks pact with CFM Intl
Published: 2009/09/29

Malaysian Airline System Bhd, the national carrier, signed an agreement with CFM International, which will provide engine support for the carrier’s new fleet of Boeing Co planes.

Under the agreement, CFM will provide full support for the engines including technical training, engineering and repair, as well as spare parts provision, Malaysian Airline said in a statement today.

MAS CEO: No plans to replace A380
Written by Darlene Liew Tuesday, 29 September 2009 15:10

http://www.btimes.com.my/articles/pmas25-2/pix_topright

KUALA LUMPUR: MALAYSIAN AIRLINE SYSTEM BHD (MAS) says it has no plans to replace the proposed purchase of six superjumbos Airbus A380 with other wide-bodied aircraft.

MAS chief executive officer and managing director Datuk Tengku Azmil Zahruddin said on Sept 29 that MAS expected to receive the six A380 by 2011.

He was refuting a recent report by S&P Asia Equity Research that MAS had broached the idea of swapping the A380 for smaller wide-body aircraft such as the A330 and Airbus' upcoming A350 to avoid a massive penalty of up to US$300 million (RM1 billion) if it were to cancel the A380 orders.

Earlier Tuesday, MAS and CFM International (CFM), a 50:50 joint company betweem Snecma and General Electric Company, sealed a support agreement for CFM engines to power the national carrier's Boeing 737-800 fleet.

In 2008, MAS had ordered 35 firm and 20 optional aircraft with 20 optional aircraft with delivery commencing in the fourth quarter of 2010.

MAS and CFM agree to B738 engine support
Tuesday September 29 2009

http://www.themalaysianinsider.com/index.php/business/images/stories/logomix/maslogo2.jpg

KUALA LUMPUR, Sept 29 — Malaysia Airlines and CFM today sealed a support agreement for CFM engines to power the airline’s Boeing 737-800 fleet.

In 2008, Malaysia Airlines ordered 35 firm and 20 optional aircraft with delivery commencing fourth quarter 2010.

Malaysia Airlines Senior General Manager, Engineering and Maintenance, Mohd Roslan Ismail said the airline had been getting excellent support from CFM for its B737-400 aircraft engines.

The CFM56-7B26/3 engines powering the new B738s will be the advanced Tech Insertion configuration, which will provide the airline with lower maintenance costs, improved oxides of nitrogen (NOx) emissions, and better fuel burn, a joint statement from the two parties said here today.

Tech Insertion includes improvements to the high-pressure compressor, the combustor, and the high- and low-pressure turbines.

Under the agreement, CFM will provide full support for the engines including technical training, engineering and repair, as well as spare parts provisioning.

Malaysia Airlines will be using the new aircraft primarily within the ASEAN region, including domestic Malaysian operations as well as routes to Australia, China and India.

“We are very pleased and honoured that Malaysia Airlines has chosen to make CFM such an integral part of its business,” said Thomas Wygle, Vice President Asia Pacific Sales.

CFM56-7B engines are a product of CFM International (CFM), a 50/50 joint company between Snecma (SAFRAN Group) and General Electric Company. CFM is the world’s leading aircraft engine manufacturer, with more than 20,000 engines delivered to date.

The CFM56-7B is the exclusive powerplant for the Boeing Next-Generation 737 aircraft family and more than 6,400 CFM56-7B engines have been delivered to date. — Bernama

MAS sticks to its order for six A380s
Wednesday September 30, 2009

http://www.utusan.com.my/pix/2009/0930/Utusan_Malaysia/Korporat/ko_01.1.jpg

From left: Datuk Tengku Azmil Zahruddin, MAS senior GM, engineering and
maintenance, Mohd Roslan Ismail, GEC Asia Pacific vicepresident (sales)
Thomas Wygle and chairman/CEO Jeffrey Immelt at the signing- Pic Utusan

Airline expects A380s to be delivered in 2011

PETALING JAYA: Malaysia Airlines (MAS) is not replacing its order of six Airbus A380 super jumbo aircraft for smaller wide-body aircraft, said chief executive officer and managing director Datuk Tengku Azmil Zahruddin.

A recent report in a local daily (not The Star) said MAS was considering swapping the A380 orders for smaller wide-body aircraft such as the A330 or A350 due to the decline in air traffic amid a prolonged world economic recovery.

“Although the deliveries of the A380s are delayed, where MAS should have received all six planes by now, we believe there will not be any more slippage.

“We now expect the A380s to be delivered in 2011,” Tengku Azmil said after a signing ceremony with CFM International for CFM engines to be used in the airline’s Boeing 737-800 (B737) fleet.

On the industry outlook, Tengku Azmil said the general business environment would continue to be challenging for the rest of this year and next year.

“But we hope to see recovery in the second half of 2010. For now, recovery is not apparent on the passenger side but cargo is showing some improvement although conclusive data still need to be gathered,” he said.

Under the agreement with CFM International, CFM will provide full support for the engines, which includes technical training, engineering and repair services as well as the provision of spare parts.

CFM International is a joint-venture company between General Electric Co and Snecma from SAFRAN Group.

Tengku Azmil said MAS had placed 35 firm orders and 20 optional orders for the B737 aircraft last year and expected the deliveries to commence in the fourth quarter of next year.

“We may also exercise some of the 20 optional orders in accordance with our fleet growth plan. The B737 will be used primarily for the Asean region, Australia, China, India and domestic operations,” he said.

MAS sees growth in Indochina with regional pick-up
Published: 2009/10/01

BANGKOK: With the regional economy slowly picking up and leisure travel on the rise, Malaysia Airlines (MAS) (3786) is seeing positive growth for the highly competitive Indochina market.

Vijayakumaran Avili, MAS area manager for Indochina, said there has been steady improvement in the number of passengers flying with the airline, which offers 75 weekly flights from Kuala Lumpur to Bangkok, Phuket, Hanoi, Ho Chi Minh City, Yangon, Phnom Penh and Siem Reap.

"The market rebounded fast after the economic crisis. It's a growing economy with big potential for us," he said after hosting a Hari Raya open house in Kuala Lumpur yesterday.

Malaysian ambassador to Thailand, Datuk Husni Zai Yaacob, and Malaysia-Thai Chamber of Commerce president, Yeap Swee Chuan, were among those present.

"Even Myanmar is doing well, with good load in our five weekly flights there. So, we are positioning ourselves to tap the growing demand, with ongoing promotional activities and new offers on the card," he said.

Among the popular ones is the Asean Pass, which consists of four pre-paid ticket vouchers from as low as 8,015 baht (100 baht = RM10.33), for economy, to US$729 (US$1 = RM3.47) (business), and has received good support among frequent travellers, especially businessmen, Vijayakumaran said.

"Travellers concerned with pricing and flexibility are snapping up the offer. They just need to pay extra for airport taxes, and can decide when to use the vouchers," he said.

Vijayakumaran said the popularity of the Asean Pass and the growing number of passengers travelling to Malaysia augured well for efforts to beef up the Kuala Lumpur International Airport (KLIA) as a hub.

"Soon we will launch the MAS Holidays where travellers can book hotels online, with immediate confirmation. Besides Malaysia as a popular destination, many of our passengers from Indochina uses KLIA to travel to Australia and various cities in Europe," he said.

He also said that the Bangkok-Kuala Lumpur route was almost back to normal, with MAS planning to increase its daily flights to four, similar to before the airport closure by anti-government protesters in November last year.

The route has at least 13 daily flights operated by more than three airlines. - Bernama

MAS upbeat on operating profit in 2010
By Presenna Nambiar Published: 2009/10/03

Malaysia Airlines (MAS) (3786) expects to make an operating profit next year, as it slashes more non-viable routes and benefits from a recovery in the economy.

"The third and fourth quarter of this year will be tough, but next year, we think we will be able to make an operating profit for the full year," MAS chief executive officer and managing director Tengku Datuk Azmil Zahruddin told reporters in Selangor yesterday.

MAS incurred an operating loss of RM420 million in the second quarter ended June 30 2009.

"The first quarter of 2010 will probably be a challenging one, but we hope the remaining quarters will work out to meet our target of operating profit for 2010," Azmil said.

MAS has cut between 12 and 13 per cent of capacity (available seat kilometre) in the first half of the year, with more expected with the suspension of its Kuala Lumpur-Stockholm-New York route.

The national carrier suspended the route on October 1 2009.

Azmil was speaking at a media briefing held yesterday, following his appointment as the new head of MAS on August 28 2009.

At the briefing, he announced that he plans to accelerate the implementation of the Business Transformation Plan, rather than make any changes to it.

MAS will focus on three core areas of enhancing customer satisfaction, generating revenue and intensifying structural cost reduction.

"This has a two pronged approach - address current operational losses and position the airline for growth," Azmil said.

MAS has identified Asean, Australia, North Asia, China, South Asia and the Middle East as its core network plan for 2010.

On whether there is still a need for the six A380s on order, with a more regional core network, Azmil said the aircraft would be used for its high density routes.

The six A380s to be delivered beginning 2011 will be used for routes such as London, Sydney and Amsterdam.

MAS expects MASKargo, its cargo division, to return to profitability next year, while MAS Aerospace Engineering aims to achieve revenue targets of RM1 billion by 2010 and RM3 billion by 2013.

Azmil said MAS will continue to pursue structural cost reduction with a target of RM700 million this year. Over the last three years, MAS has saved more than RM2 billion.

MAS aims to return to operating profit by 2010
Written by Siti Sakinah Abdul Latif
Friday, 02 October 2009 15:17

KUALA LUMPUR: MALAYSIAN AIRLINE SYSTEM BHD [] (MAS) hopes to return to operating profit by 2010 depending on the carriers turnaround plan and global economic conditions, says its CEO, Tengku Datuk Azmil Zahruddin.

To achieve the target, MAS will continue its cost reduction programme, which has managed to save RM2 billion in the last three years and targets saving another RM700 million for 2009.

“There’s always costs to cut ”Azmil said at a briefing in Kelana Jaya as he updated the media on the progress of MAS' business transformation plan. He indicated that the national carrier would continue to pursue cost reductions.

Azmil explains that the 62-year-old carrier inherited a lot but the aggressive cost-cutting measures were to get rid of " 'bad' costs such as those that do not add value or give poor returns".

"A significant portion of our savings is returned to customers in the form of lower fares and better services," he says. "We will continue to invest in 'good' costs such as inflight food, safety and regulatory requirements and to generate third-party revenue", he adds.

Azmil says that MAS had no intention to cut employee salaries, as the cost cutting measures involve the disposal of assets that are not related the company’s core business.

The airline also aims for a 10% reduction in overtime next year, with recruitment taking place only in critical areas.

Meanwhile, Azmil says MASkargo aims to return to profitability next year while MAS Aerospace Engineering plans to achieve revenue targets of RM1 billion by 2010 and RM3 billion by 2013.

MAS has also set up the MH Customer Value Proposition committee headed by Azmil himself to identify extra costs that are a burden to customers and eliminate them.

“The source of the extra cost would keep changing. Customers may want a certain item or service today, but that may change tomorrow. We only want to give the things that customers wants and are willing to pay for,” he said.

Asked what the extra costs were, Azmil says the company is still in the process of identifying them.

On a separate matter, Azmil says MAS would continue to renew its fleet. It will take delivery of 35 Boeing B737-800 aircraft commencing in 4Q2010. It has options on another 20 planes.

"These planes will be deployed in Malaysia, Asean, South Asia and China," he said.

As for high-density routes such as London, Sydney and Amsterdam, MAS will be using the Airbus A380 that will be delivered beginning 2011.

Azmil says that MAS aims to grow its network mostly in the Middle East, China, Asia and Australia region in 2010. He adds that MAS may add new routes but declined to elaborate.

MAS records RM2b cost savings in 3 yrs, targets RM700m this yr
Written by Sit Sakinah
Friday, 02 October 2009 13:36

KUALA LUMPUR: MALAYSIAN AIRLINE SYSTEM BHD [] (MAS) recorded RM2 billion in savings in the past three years and is targeting to reduce costs by another RM700 million this year.

MAS managing director and chief executive officer Tengku Datuk Azmil Zahruddin said on Oct 2 the national carrier would continue to pursue structure cost reduction.

"There is a lot more room for cost savings," he said at a briefing in Kelana Jaya as he update the media on the progress of MAS's business transformation plan.

Azmil explained that a 62-year-old legacy carrier inherited a lot but the aggressive cost savings measures was to get rid of "bad costs such as those that don't add value or give poor returns".

"A significant portion of our savings is returned to customers in the form of lower fares and better services," he explained. "We will continue to invest in good costs," he added, such as inflight food, safety and regulatory requirements and to generate third party revenue.

He said MASkargo aims to return to profitability next year while MAS Aerospace Engineering aimed to achieve revenue targets of RM1 billion by 2010 and RM3 billion by 2013.

On its fleet renewal, he said it would take delivery of 35 firm B737-800 planes with delivery starting in the fourth quarter of 2010. It has another 20 plans on option.

"These planes will be deployed in Malaysia, Asean, South Asia and China," he said.

AirAsia delays delivery of 8 more planes
Monday October 5, 2009 By B.K. SIDHU

It is also unwinding leases with GE Commercial Aviation Services and others

PETALING JAYA: AirAsia Bhd has received the nod from Airbus SAS to delay delivery of eight A320-200 aircraft originally scheduled for 2011.

This means the low-cost carrier will now defer a third or 16 of 48 aircraft deliveries scheduled for 2010 and 2011, after making a similar move in July when it deferred the delivery of eight aircraft for 2010.

The budget carrier is also unwinding all its leases with GE Commercial Aviation Services (GECAS) and other lessors for early return of 13 B737.

It will also sell two of its own B737 aircraft in a bid to realign capacity with the increased demand and move towards using one aircraft type for greater efficiency.

http://biz.thestar.com.my/archives/2009/10/5/business/p1-airasiacht.JPG

“We will defer eight of the 24 deliveries (scheduled) for 2011. We got the deferment from Airbus,’’ AirAsia group chief executive officer Datuk Seri Tony Fernandes told StarBiz.

The deferments will push back deliveries to 2014.

Globally, many airlines have delayed taking delivery of new aircraft due to the sluggish economic conditions and lack of passenger demand.

In AirAsia’s case, Fernandes also attributed the aircraft deferment in 2011 to doubts over the timely completion of the new low-cost carrier terminal.

This is despite assurance from Malaysia Airports Holdings Bhd the new terminal will be completed on time by the third quarter of 2011.

AirAsia became the largest customer for the Airbus A320-200 in December 2007 after it placed a firm order for a total 175 aircraft, with an option for 50 more. The budget carrier has so far taken delivery of 63 A320s, which are used for its services in Malaysia, Indonesia and Thailand.

Additionally, it has a fleet of 17 B737s, of which four are its own while the other 13 are leased from GECAS and other lessors.

“We have also closed a deal with GECAS to return nine of the B737s leased from them in stages in 2010 and sell two of our own to Mexico’s VivaAerobus,’’ Fernandes said.

AirAsia is also in talks with several parties to sell the balance two of its B737s and unwind leases for the remaining B737.

He said proceeds from the sale would be used to pay off loans for the aircraft and that the sale would have no impact on AirAsia’s bottom line.

“This alignment will have a huge impact on our Indonesian and Thai operations as they will increasingly be using the A320 instead of B737 and that makes them hugely more efficient,” he said.

“We see the two operations turning the corner and there should be positive upswing in their profits,’’ he said, adding: “We are really bullish on Indonesia and the growth in passenger numbers in the last quarter was very encouraging.”

“Our Indonesian operations have the potential to be as strong as our Malaysian operations and we see stronger revenue growth from our Thai operations,” Fernandes said. “Having two strong affiliates on top of our Malaysian operations puts us in a position of strength.’’

For airlines, the third quarter is usually the weakest quarter but Fernandes said: “AirAsia is seeing better passenger growth.

“We are very pleased with the third-quarter numbers but they will not be as good as the second quarter.”

AirAsia reported a net profit of RM139.2mil for the second quarter ended June 30 on revenue of RM657mil due to improved passenger volumes, higher ancillary income as well as write-backs on certain provisions.

After the company’s private placement of shares last month, Fernandes said the company was targeting RM1bil in reserves by the year-end.

On route expansion, he said plans were in place for the carrier to fly to three routes in India – Coachin, Calcutta and Trivandrum – this year.

“Most of our growth is in new routes but these are not new destinations. It is how we link the dots once we go to a new destination,’’ he said.

Fernandes was recently named Team Principal of 1Malaysia F1 Team Sdn Bhd, which will participate in the next season of Formula One via Lotus F1.

Asked if his involvement will see him paying more attention to F1, he said: “I am very much on top of things at AirAsia, that’s my baby.’’

MAS Business Transformation Plan To Continue
October 06, 2009 17:41 PM

KUALA LUMPUR, Oct 6 (Bernama) -- The implementation of the Business Transformation Plan initiated by former chief executive officer of Malaysia Airlines (MAS), Datuk Seri Idris Jala, is expected to be continued, says ECMLibra Investment Research.

The plan will play a role in positioning the airline as a value five-star carrier in order to compete in a highly competitive environment, ECMLibra said in a note released here Tuesday.

It said MAS'new dual pricing strategy has also seen some degree of success.

Citing the performance of its Europe to Asean sector in the third quarter of this year, it said the company has managed to perform better than its peers with a lower year-on-year revenue contraction.

MAS also recorded a flat year-on-year passenger growth instead of contraction and higher quarter-on-quarter revenue yield.

"So far, forward bookings (for the fourth quarter) seem to be holding up well as compared to the same period last year but yield will continue to be lower due to aggressive fare cutting within the country," it said.

MAS, it said will also continue to adopt competitive fuel hedging despite the adverse effect its current hedges have on the company's financial position.

"On business development, MAS Aerospace Engineering is setting an ambitious target to generate RM3 billion revenue by 2013 as it seeks to create critical mass by growing third party revenue to 60 per cent of total revenue," ECMLibra added.

-- BERNAMA

AirAsia granted landing rights in Paris
Published: Thursday October 8, 2009 MYT 10:19:00 AM
By CHOI TUCK WO

PARIS: AirAsia Bhd has been granted landing rights in Paris, Prime Minister Datuk Seri Najib Tun Razak said here.

He said this was conveyed to him by French President Nicholas Sarkozy during their meeting at Elysee Palace in Paris on Wednesday.

“The details will be worked out by the officials later,” he told Malaysian journalists before flying home later Wednesday night.

The French leader had given his approval for the budget airline to land at Orly Airport, southern Paris, barely 24 hours after Najib had raised the matter with French Prime Minister Francois Fillon.

Najib had noted in that meeting that AirAsia was the Airbus A320’s biggest customer in the world.

MAS to fly direct to Istanbul
Monday October 12, 2009

KUALA LUMPUR: Malaysia Airlines will start thrice-weekly direct flights between Kuala Lumpur and Istanbul on Oct 25.

Departures from Kuala Lumpur are on Mondays, Wednesdays and Saturdays. At the moment, the service to the Turkish city is via Dubai.

Malaysia Airlines senior gene-ral manager for network and revenue management Dr Amin Khan said yesterday the airline viewed Istanbul as a great potential destination, adding that MAS also planned to link its network from Australia to Istanbul via Kuala Lumpur. — Bernama

AirAsia launches first-ever brand campaign
Written by The Edge Financial Daily
Monday, 12 October 2009 15:24

KUALA LUMPUR: AirAsia is launching what it calls an unprecedented move in a regional campaign this week that positions the world’s best low-cost airline as a high quality, sleek and cool brand.

In a statement, AirAsia said the campaign, themed Have You Flown AirAsia?, aimed at shifting consumers’ mindset of low-cost carriers by showcasing the airline’s innovation, high quality service and unique experience.

Spearheading the campaign will be the television commercial directed by the late Yasmin Ahmad. It will be rolled out across Malaysia, Singapore, Indonesia and Thailand on Wednesday (Oct 14) supported by online, outdoor, print and social media presence.

It said a refreshing microsite had also been created (www.haveyouflownairasia.com) to keep the brand relevant and dynamic.

“To stay ahead of the competition, we need to keep our brand fresh. We want our guests to feel good about the AirAsia experience and keep them coming back for more,” AirAsia Group CEO Datuk Seri Tony Fernandes said.

AirAsia settles airport fees
By Presenna Nambiar
Published: 2009/10/13

Airport operator Malaysia Airports Holdings Bhd (MAHB) has confirmed that budget carrier AirAsia Bhd (5099) has paid its outstanding airport fees.

MAHB officials confirmed this yesterday when contacted.

It is understood that the issue, which has dragged on since early this year, was settled at the end of last month.

The budget carrier had withheld about RM110 million in payments to MAHB, claiming that it was being overcharged by the airport operator.

Although it is understood that AirAsia received a discount on the amount owed, the quantum of the discount is not known.
On September 10 2009, AirAsia's chairman Datuk Aziz Bakar, after attending an extraordinary general meeting to approve a private placement of up to 20 per cent of new shares in the budget carrier, said that it had paid more than half of the monies owing to MAHB.

He added that the carrier was still in talks for the remaining sum.

AirAsia's officials could not be reached for comment.

The payment of airport fees was one of the many issues outstanding between the budget carrier and MAHB.

AirAsia has deferred the delivery of 16 of its planes so far, citing doubts over the airport operator's ability to finish the new low-cost carrier terminal on time.

This is despite MAHB insisting that it would be able to meet the budget carrier's deadline, the third quarter of 2011, for the terminal.

The budget carrier successfully raised RM505.4 million in cash last month by selling 16 per cent of its new shares to investors via a private placement.

AirAsia X has no plans to sell equity stake
Published: 2009/10/13

AL-AIN (UAE): AirAsia's long-haul, low-cost unit has no plans to sell an equity stake in the carrier, its head said yesterday.

AirAsia X chief executive Azran Osman-Rani had said in August that the unit was in talks with Middle Eastern investors to help boost its equity base in 2010.

"We don't have any plans to sell a stake and we're not actively looking for investors. We don't need cash at the moment,"Azran told reporters on the sidelines of a conference.

Bahrain-based Manara Consortium took a 10 per cent stake in AirAsia X last year. The carrier was launched in 2007 and flies to destinations in China, Australia and the UK from its Kuala Lumpur base.

Last month, parent company AirAsia, Southeast Asia's biggest budget carrier by fleet size, raised US$144.4 million (RM491 million) in a new share placement.

Azran also said the airline did not expect to see a loss in the fourth quarter.

"In the fourth quarter, we'll keep our heads above water," he added, saying the carrier's unit costs were lower than rival airlines. "We don't expect to be in a loss-making position.

Yields are still going to be pressured." Azran said the second quarter was the most difficult for the carrier, in terms of pressure on yields and passenger load factors, but volumes picked up in the third quarter.

The International Air Transport Association (IATA) trade group said last month that the outlook for global airlines this year had worsened, projecting US$11 billion (US$1 = RM3.41) in losses amid weak passenger and cargo demand.

The industry lost US$8.5 billion in 2008, when record high oil prices weighed on results. IATA said it expects passenger traffic to fall 4 per cent in 2009.

Azran also said the carrier wanted to expand its destinations.- Reuters

AirAsia X in talks over KL-Oakland service
By Presenna Nambiar
Published: 2009/10/14

LONG-HAUL low-cost carrier (LCC) AirAsia X is in talks with the Americans to launch a Kuala Lumpur-Oakland service, possibly via Taipei or Incheon in Seoul, according to a Standard & Poor's report.

Aviation analyst Shukor Yusof wrote in his note to investors that the Oakland International Airport had confirmed that it was in talks with AirAsia X.

The report said that AirAsia's future forays into France and the US underscore its evolving business strategy of an LCC into a hybrid airline that blends traits of a budget carrier with those of a full- service airline.

Shukor said the Oakland airport was attracted to AirAsia as passengers would be able to connect easily to US LCCs.

"What that means, probably, is that US LCCs might get into the international act, too. JetBlue is one candidate. It has a deal with Lufthansa already. And, in recent weeks, Virgin America announced it had inked a deal with South African Airways," he said.

AirAsia’s three new daily flights to India
Published: Wednesday October 14, 2009 MYT 2:07:00 PM

PETALING JAYA: AirAsia will start daily direct flights to Kolkata, Kochi and Thiruvananthapuram (Trivandrum) in India from Kuala Lumpur beginning November, the low-cost carrier said in a statement Wednesday.

It will be offering all-inclusive fares from as low as RM129 one-way for the booking period of Oct 15 to 20 to travel between Nov 12 and July 31, 2010 for Kochi; Nov 16 to July 31, 2010 for Thiruvananthapuram; and Nov 19 to July 31 for Kolkata.

AirAsia launched its first Indian route to Trichy, in the south Indian state of Tamil Nadu on Dec 1, 2008.

Thai AirAsia looks to profitable year
By Presenna Nambiar Published: 2009/10/15

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

AIRASIA Bhd affiliate Thai AirAsia will be making a profit for financial year 2009, its chief says.

"We are definitely making a profit for the year. How much of a profit ... will depend on the load factor in the fourth quarter of the year," Thai AirAsia chief executive officer Tassapon Bijleveld told Business Times on the sidelines of the Frost & Sullivan Growth, Innovation and Leadership Congress 2009 in Kuala Lumpur yesterday.

Both AirAsia's affiliates, Thai AirAsia and Indonesia AirAsia, saw their cash flow dragged down by exceptional costs totalling RM429 million in the fiscal year ended December 31 2008 due to the unwinding of fuel hedges and interest rate swap contracts.

Thai AirAsia registered losses in the second quarter ended June 30 2009 at RM8.2 million.

It achieved an average load factor of 78 per cent for the last three quarters of the year.

Tassapon attributed this to the four new destinations it started servicing this year.

Thai Airasia expects a load factor of between 82 per cent and 85 per cent for the fourth quarter.

Tassapon also said that the airline was on track to meeting this year's target of 5.2 million passengers.

Thai AirAsia currently runs 16 planes, out of which six are B737-300s. It will have 18 planes by the year-end.

On AirAsia's plans to redeploy new A320s to its Thai and Indonesian affiliates, Tassapon said he was more than happy to receive them.

"AirAsia, being the parent, receives priority on aircraft deliveries. Since they have already got 42, it's our turn now," he said.

Malaysia Airlines Eyeing New Mideast Destinations
By Muin Abdul Majid

DUBAI, Oct 15 (Bernama) -- Malaysia Airlines is studying the possibility of adding at least three new Middle Eastern destinations to its network, said regional general manager for Middle East and Africa, Merina Abu Tahir.

She said the national carrier viewed the Middle East as a region showing big potential for growth.

"The Middle East is definitely an area that Malaysia Airlines would want to concentrate on. We're eyeing at least three new destinations," Merina told Bernama here but declined to name the prospective cities.

She said for a start, the award-winning airline would begin thrice-weekly direct flights between Kuala Lumpur and Istanbul on Oct 25.

At the moment, the service to the Turkish city is via Dubai.

Merina said delinking Dubai from Istanbul would increase the airline's capacity for Dubai as well as Istanbul.

"That's the first step in our growth (plans) in the Middle East, and going forward we're looking for more areas to grow in this region," she added.

Malaysia Airlines operates non-stop flights between Dubai and Kuala Lumpur five times a week, and via Karachi twice a week.

It also offers three weekly flights between Dubai and Beirut, and four weekly flights between Jeddah and Kuala Lumpur.

The airline also has code-share flights from Abu Dhabi, Cairo, Bahrain, Doha and Muscat to Kuala Lumpur.

-- BERNAMA

MAS' new CEO steers steady course
Published: 2009/10/19

Business Times speaks to Datuk Tengku Azmil Zahruddin about his plans to manoeuvre MAS out of the 'toughest year for the airline industry'

DATUK Tengku Azmil Zahruddin took over the helm at Malaysia Airlines (MAS) on August 28, as the national carrier entered the second year of a five-year Business Transformation Plan (BTP) facing huge challenges and recording operating losses.

KANG SIEW LI, JEEVA ARULAMPALAM and PRESENNA NAMBIAR sat down with the newly-appointed managing director and chief executive officer (CEO) to hear about his plans to manoeuvre MAS out of the "toughest year for the airline industry".

Below are excerpts from the interview:
Question: Are there any routes operated by MAS that are subsidised by the government?

Answer: No. The only routes subsidised by the government are the ones under MASwings. These are the old FAX (Fly Asian Xpress, previously operated by AirAsia) routes. These are not commercial routes and are done more as a social service. For many towns in Sabah and Sarawak, air travel is a very fundamental part of travel because the infrastructure is not there. Those are the only routes subsidised by the government.

Q: Is it possible to make MASwings' routes profitable?

A: Very tough. I don't believe that it is right, in many of the cases, to make them profitable because it is really a lifeline for many of the people there. What is a 45-minute flight becomes a two-week trek through the jungle if the flight is not there. To make money and hike up the fares is not what the government is looking for, and these routes are quite regulated (in terms of fares) by the government. We can try and make them profitable, but I don't think we can achieve the social objective that is intended.

Q: As a national carrier, you have received criticism for cutting certain routes and not operating as many routes as what some quarters want. Can you comment on this?

A: It really depends on what you want. Hypothetically, the government can tell us tomorrow that we don't need to make money but just fly everywhere. (If that happens, you have to) expect us to come every year to the taxpayers for more handouts and the government has to be prepared to subsidise MAS for a long time.

But you cannot instruct a listed company to lose money. As such, we have to anchor our operations based on profit and loss (P&L). If you are not anchored on P&L, you will not work so hard to take costs out and I can guarantee that you will then end up with an airline that is very bloated, slow, unresponsive and self-serving. I'm not sure if people want that airline.

Q: MAS plans to be number one in terms of market share. However, there has been a transfer of passenger volumes from MAS to AirAsia, especially since the economic downturn. How will you achieve your market share target?

A: We believe that people are willing to pay a premium, but there is a limit to how much more they will pay. So we need to make sure that we are taking out the bad costs to close the cost gap so that the fare premium we charge does not have to be much higher than AirAsia's fares. Our fares will be higher because we have different products, but we believe that people will pay more to fly with a full-service carrier like MAS. We don't have to match AirAsia's prices to get market share.

Q: What is MAS' current market share?

A: It's about 50:50 now. Some routes, we carry more passengers; and others, they (AirAsia) carry more.

Q: How do you plan to make an operating profit next year?

A: By doing all the things we are doing (under BTP 2). Aside from cutting costs, we are preparing ourselves for growth when the economy recovers and to be in a position to take advantage of it.

Also, we have kept up on our advertising activities so that our presence in the market is still there. The first thing some people do is to cut advertising. As a result, they lose their presence in the market.

MAS to widen reach in China via new partner
From Presenna Nambiar Published: 2009/10/23

SHANGHAI: Malaysia Airline System Bhd (MAS) (3786) has signed a deal to cooperate with China's fourth largest airline Hainan Airlines Group (HNA) to grow its cargo arm's network in China, have a wider presence worldwide and increase its market share.

"Through this partnership we are looking to provide our passengers and cargo with improved connectivity to domestic destinations in China and increase feeder traffic from the Chinese domestic points to our international services," MAS managing director Tengku Datuk Azmil Zahruddin said in his speech to attendees at the signing ceremony between HNA Group and MAS here yesterday.

HNA Group is a large corporation with the air transportation a core business and covering other industries of tourism and service, airport management, logistics, hotel management, retailing, finance and other related businesses.

The group has assets valued at RMB150 billion, with a revenue forecast of between RMB35 billion and RMB50 billion by the end of the year.
Azmil said while this was not the group's first partnership in China, it would be able to cater to the many routes that the current partnership did not service.

In 2008, MAS signed a code-share agreement with China Southern Airline for two points in China, namely Beijing and Guangzhou.

"Basically we have come up with a framework for cooperation and now we must sit down and look at each other's network, see how we can integrate the network in terms of belly space and joint services on freighters," Malaysia Airlines Cargo Sdn Bhd managing director Shahari Sulaiman said.

For example, Azmil said, the two companies would look to integrate network services so as to not overlap each other, enabling the two organisations to maximise cargo feeder traffic for both airlines without adding resources.

Currently the HNA group has 15 airlines under its wing, with two freighter businesses, namely Hong Kong Express and Yangtze Express. It has an aircraft fleet of 200 overall, including its freighters.

"This is the type of crisis that makes everybody think about how they can maximise their resources and expand wisely," HNA Group director and HNA Industrial Co Ltd executive chairman Tan Xiangdong said.

Hong Kong Express owns three Boeing 737 freighters, while Yangtze Express owns four 747-400s. Its freighter operations alone carries about 1,300 tonnes of cargo a month.

There are also plans to take in four more 747-400Fs in the next few years.

"The point is, the cargo is not the only area we can collaborate in, there is potential for us to cooperate in other areas as well, considering the broad spectrum of sectors that the group is in," Azmil said.

Baby boy delivered on board AirAsia flight
Friday, October 23rd, 2009

http://xtive.utusan.com.my/tools/utusan/update_gambar/PTJ000020686.jpg

FREE FLIGHTS FOR MAKING HISTORY: Proud mother Liew Siaw Hsia holds a
sign that says she and her new-born son are entitled to free flights for life
on AirAsia. They made history with the airline's first in-flight delivery last night.
- Picture by AFENDI MOHAMED

KUALA LUMPUR: A premature baby boy was delivered on board an AirAsia flight on Wednesday night, 30 minutes after the aircraft left Bayan Lepas Airport in Penang.The flight AK5606 was on its way to Kuching but had to reroute to the Low Cost Carrier Terminal (LCCT) in Sepang when a pregnant passenger told crew members she was in labour pains.

Liew Siaw Hsia, 31, gave birth through the normal delivery to a premature but healthy boy, who became the first born in an AirAsia aircraft.

Edd Razhe, the personal assistant to the AirAsia chairman, said when the pilot was informed of the emergency, he contacted the control tower requesting a reroute to LCCT.

“The ambulance was already at the airport to take the woman and her baby to Putrajaya Hospital,” he said when contacted here, yesterday.

Edd said a doctor only known as Ronald helped deliver the baby. He added although it was an emergency, situation in the aircraft was normal and under control.

AirAsia Berhad chief operating officer Datuk Tony Fernandes, who is in Bangkok, Thailand, would be back in Kuala Lumpur to celebrate the arrival of the first born at Putrajaya Hospital.

AirAsia will provide a lifetime of free flights to both Liew and her son to all destinations. — Bernama

MAS to upgrade reservations system Oct 31
Published: 2009/10/24

Malaysia Airlines (MAS) will be upgrading its reservations system from 11pm Saturday, Oct 31 to noon Sunday, Nov 1.

During this system upgrade, the reservations and ticketing services at its call centres, ticket offices and the web booking facility will be inaccessible.

However, all other services, including check-in, will remain same, MAS said in a statement today.

"The upgrade will take 13 hours, and we are doing this over the weekend to minimise any inconvenience to our passengers," MAS general manager, transition management, Mohd Salleh Ahmad Tabrani said.

To ensure a seamless travel experience, he advised customers to complete all their travel requirements before Oct 31.

"Please book and purchase your flight tickets, make changes to your flight itinerary or make special requests such as meals, seat selection and complete your Enrich online redemption early. Please avoid making any travel transactions
during the upgrade," he said.

Customers are also encouraged to contact the call centre at 1300-88-3000 and provide their mobile numbers to enable the airline to contact them promptly should there be any changes to their flight.-- Bernama

MAS comes in at 8th in travel poll
Published: 2009/10/25

http://www.malaysiainsider.com/index.php/business/images/stories/logomix/maslogo2.jpg

KUALA LUMPUR, Oct 25 — Malaysia Airlines moves up a rung to number 8th in the Top Airlines, Worldwide Category in the Best in Travel 2009 Poll by Smart Travel Asia, the dedicated travel magazine for Asia.

The national carrier is tied with Lufthansa in 8th position.

“We are delighted to receive the recognition and once again we are among the world’s top 10 best airlines,” Malaysia Airlines managing director and chief executive officer Datuk Azmil Zahruddin said in a statement.

The Best in Travel 2009 Poll by Smart Travel Asia measures readers’ perceptions and favourite travel brands and ran from May to July this year.

The selection criteria is based on a combination of actual travel experience, word-of-mouth and an idea of the brand drawn from advertising and editorial exposure in the media, primarily online.

Voters of the poll took an average 12.84 air trips over the past 12 months and 60 per cent from America with annual household income of US$170,401 (RM57,6381).

Azmil said the national carrier was committed to providing its customers with seamless travel experience.

“One of our key initiatives is introducing new aircraft. Our customers will be among the first to enjoy the new, spacious 737-800 Boeing Sky Interior as we are the second airline in the world to take delivery of the aircraft from next year.

“We will also begin flying the A380 in 2011 and are currently reviewing orders for widebody aircraft,” he said.

Malaysia Airlines was in 5th place in the category of Top 10 Airlines, Cabin Service and ranked 8th in the category of Top 10 Airlines, Business Class. — Bernama

AirAsia: Q3 passenger traffic up 19pc
Published: 2009/10/26

MALAYSIA budget carrier AirAsia carried 19 per cent more passengers in the third quarter from a year earlier, the company said today.

Southeast Asia’s largest low-cost airline by fleet size said it carried a total of 3.6 million passengers during the quarter.

The airline’s passenger carrying capacity, measured in available seat kilometres, expanded by 13 per cent after it took delivery of new aircraft.

Third-quarter seat load factor, or the percentage of total seats fill, was unchanged at 75 per cent from a year ago, it said.

AirAsia said these figures are preliminary and have not been reviewed by its auditors. - Reuters

AirAsia and AirAsia X jointly named Capa’s Airline of the Year
October 28, 2009

BEIJING, Oct 28 – “Exceptional achievement, brilliant innovations and constant positive growth” despite the global economic crisis has won the AirAsia group acclaim.

AirAsia and AirAsiaX jointly won the prestigious Centre for Asia Pacific Aviation (Capa) Airline of the Year Award for 2009 here Wednesday night.

The awards were presented at the Capa Aviation Awards for Excellence presentation ceremony here, while its Group CEO, Datuk Seri Tony Fernandes was also conferred the Capa Legend Award (Aviation Hall of Fame) for 2009.

The Capa awards ceremony was held as part of this year's sixth annual Asia Aviation Outlook summit here. The two-day event showcased airline and airport CEOs from around the Asia Pacific and Middle East regions.

“It is a big honour, we are very proud indeed, we beat Singapore Airline, China Airline, Cathay Pacific ... it shows that Malaysia can be the best," said Tony Fernandes when asked to comment on the company’s achievement. – Bernama

Air Asia revises delivery of A320S
October 29, 2009

KUALA LUMPUR, Oct 29 — AirAsia Bhd has signed an amendment agreement with European airplane maker Airbus to revise the delivery dates of eight A320 aircraft originally scheduled for delivery in 2011 to 2014 and 2015.

In a statement to Bursa Malaysia today, the regional low-cost carrier said with the deferments, the original delivery of 23 aircraft in 2011 would be reduced to 15 aircraft.

The original number of deliveries in 2014 would also be increased to 24 aircraft from 18 aircraft while in 2015, the airline would take delivery of two aircraft as opposed to nil, it said.

No penalties are payable by AirAsia in revising the delivery schedule of the 2011 aircraft, it added. AirAsia said the deferral of the 2011 aircraft was due to forecast infrastructural constraints with the current airport facilities.

It said that until the new low-cost carrier terminal was constructed, the present infrastructure at the low-cost terminal would not be able to accommodate AirAsia’s fleet expansion in the number of aircraft originally scheduled to be delivered in 2010 and 2011.

The scaling down of the aircraft delivery in 2011 is to further enable AirAsia to optimise its fleet and avoid the costs associated with leaving idle or underutilised aircraft, thus avoiding incurring depreciation, interest expense and other costs without earning revenue. — Bernama

Air Asia


copyright: Koresh

http://myaviation.net/photos/small/6/3/9/01680936.jpg (http://myaviation.net/?pid=01680936)

http://myaviation.net/photos/small/5/4/9/01680945.jpg (http://myaviation.net/?pid=01680945)

http://myaviation.net/photos/small/1/4/9/01680941.jpg (http://myaviation.net/?pid=01680941)

AirAsia sees strong passenger load
Friday October 30, 2009
By LEONG HUNG YEE

Group CEO says carrier is ‘not yield driven but volume driven’

PETALING JAYA: AirAsia Bhd, which has steadfastly widened its reach to new markets even as the financial crisis was unfolding, expects its passenger load factor to remain robust next year, according to group chief executive officer Datuk Seri Tony Fernandes.

“Our business is great. Our passenger numbers are up even during the puasa (fasting) month. Ancillary incomes are coming up very fast and we’re getting rights to many destinations,” Fernandes told StarBiz.

AirAsia’s load factor stood at 75% in the second quarter ended June 30. He said given the green shoots of economic recovery, yields were likely to improve and that things were not as gloomy as they were a year ago.

As such, “we are in a better position” now. However, he pointed out that the airline was “not yield driven but volume driven. That’s the key to a low-cost carrier (LCC).”

In keeping with its aggressive route expansion, Fernandes said by year-end, AirAsia would add seven more routes to India.

It currently flies to four Indian destinations – Kolkata, Kochi, Tiruchirappalli and Trivandrum. It would continue its expansion mode next year as well, he said.

The carrier has deferred taking delivery of a third – or 16 of 48 – aircraft originally scheduled for 2010 and 2011 due to doubts over the timely completion of the new LCC terminal.

On whether this move might limit the airline’s capacity to tap the opportunities if there was a strong uptick in demand for air travel, he said it would be highly unlikely.

“We’ve got 82 planes! And we’re still getting deliveries. But if that’s the case, then it will just push our yields up.”

In a filing to Bursa Malaysia yesterday, AirAsia said it did not have to pay any penalty for the revision of delivery dates for eight Airbus A320 aircraft, initially scheduled for delivery in 2011 to 2014 and 2015.

The deferment is because it “foresees infrastructural constraints with the current airport facilities” and needs to “optimise its fleet and avoid the costs associated with leaving idle or under-utilised aircraft” due to such limitations.

The carrier had signed an amendment agreement with Airbus SAS for the revision. Under a purchase agreement signed in 2005 and a number of amendment agreements, AirAsia had agreed to a firm order of 175 Airbus A320 aircraft.

AirAsia said the original number of deliveries in 2014 would be increased from 18 aircraft to 24 whereas, in 2015, the company would take delivery of two aircraft as opposed to none from before.

AirAsia had much earlier unwound its fuel hedges, a stance Fernandes said the airline would continue to adopt for a while, even as crude oil prices might rise next year on the back of an economic recovery.

“Even if it (oil price) reaches US$100 per barrel we’re ready for it. We are okay at the moment,” he said, pointing out that the budget carrier had overcome the turbulence even when oil prices skyrocketed to a high of US$150 a barrel.

Over the last two weeks, crude oil had been trading around US$79 a barrel, touching a high of US$81.37 last Wednesday.

“Fuel price is a fake price. Eventually it (price) will settle on real demand,” Fernandes said, adding that it was also painful to hedge sometimes, especially given the high volatility of oil prices.

As such, he said that although AirAsia might remain “naked” or unhedged, it might hedge some fuel requirement over three- to 12-month contracts.

Although there were green shoots of recovery, the economy still remained fragile, he said.

Last year, fuel prices fell sharply from US$145.29 a barrel in July to a low of US$33.87 in December. AirAsia had unwound huge hedging contracts in the third quarter last year that led it to post its first quarterly loss of RM465.5mil since its listing in 2004.

Since then, AirAsia has not got into new hedges. In any case, Fernandes said, fuel hedging only offered short-term benefits. “What we have to do is to build a sustainable business.”

Spring Airlines keen to work with AirAsia X
Friday October 30, 2009
By CHOW HOW BAN

But the latter does not see any chemistry between them

BEIJING: China’s No.1 privately-owned budget carrier Spring Airlines wants to work with AirAsia X but the latter does not see any chemistry between them.

Spring Airlines chairman Wang Zhenghua could not hide his disappointment that he could not meet the AirAsia X boss even once.

“If I put it in a not so nice manner, they seem evasive. We invited them for a meeting and tried to see them. But, every time we tried to meet, they did not want to see us,” he told reporters at the Aviation Outlook Asia conference here on Wednesday.

Wang said his company really wanted to collaborate with the Malaysian carrier and share flight resources. He said both low-cost carriers could combine routes in China and South-East Asia to expand their passenger base.

AirAsia X chief executive officer Azran Osman-Rani said his company was not looking for any profit or code-sharing model if it were to cooperate with other airlines.

“I think Spring Airlines needs to understand we are not interested in interlining code-sharing of flights. We prefer to cooperate on the basis of doing simple marketing such as I tell my passengers they can fly to Shanghai (by Spring Airlines) and you tell your customers they can fly to KL (by AirAsia X),” he said.

Azran added that the interlining code-sharing incurred costs as it required both parties to connect to each other’s system and AirAsia X wanted to keep its operational cost low.

Shanghai-based Spring Airlines flies to almost all major cities in China while AirAsia X has routes from KL to seven Chinese cities – Haikou, Shenzhen, Guangzhou, Tianjin, Hangzhou, Chengdu and Guilin.

MAS now flies three times day to Bali
Published: 2009/11/04

Malaysia Airlines is flying three daily flights from Kuala Lumpur to Bali from today, with the additional flight departing Kuala Lumpur everyday at 12.25pm and arriving in Bali at 3.20pm.

Its senior general manager, network and revenue management, Dr Amin Khan, said customers could now travel anytime at their convenience as the daily flights were timed every three hours, with departures at 8.45am, 12.25pm and 3.20pm.

He said in a statement today that demand had been picking up, especially with passengers from other countries flying to Kuala Lumpur and connecting onwards to Bali.

"Our load factor is strong at 80 per cent, which is 10 per cent higher compared to the same time last year," Amin said.

"With the year-end break around the corner, we expect customers to snap up the tickets to the holiday resort," he said.

In conjunction with the additional flight, the national carrier is offering its "weekend getaways", a special promotional fare to Bali starting from RM480 and available until December 28, 2009.

The travel period will be from now until December 31, 2009.

In view of increased demand, MAS has also increased its flight frequency to Tawau and Sandakan in Sabah as well as Taipei, Seoul and Colombo, Amin said.

"The airline has also started offering three weekly direct flights to Istanbul," he said. -- Bernama

MAS opens new Golden Lounge in London
Published: 2009/11/08

LONDON: Malaysian Airlines is better poised to capture
increased passenger traffic from London to Kuala Lumpur with its relocation to the newly-refurbished Terminal 4 at London's Heathrow International Airport and the opening up of its brand new Golden Lounge.

Its chairman, Tan Sri Dr Munir Majid said the opening of the new lounge in London is part of the national carrier’s customer value proposition, which focuses on ensuring that customers’ needs are always at the top of the mind.

“Besides providing five-star value services in the air, Golden Lounge is a great avenue for us to continue providing seamless services to our customers on the ground,” he said during the official opening of the Golden Lounge here, Saturday.

The event was officiated by Minister of Tourism Datuk Seri Dr Ng Yen Yen.


Dr Ng said the opening of Malaysia Airline’s Golden Lounge in London is in line with the ministry's efforts to promote Malaysia as an ideal holiday destination.

She said from January to September this year, tourists from the UK to Kuala Lumpur rose 19.7 per cent to 362,000 and the number was expected to reach 400,000 by year-end.

Dr Ng said the ministry was looking at the possibility of positioning Malaysia Airlines in London as the kick off point for tourists from Europe.

“I met operators in Copenhagen, Stockholm and Helsinki who discussed this possibility,” she said.

The Golden Lounge, which cost about RM11 million, has a floor space of 738 square meters.

It is easily accessible as it is conveniently located next to Gate 6, the regular departure gate for all Malaysian Airlines flights and can accommodate a maximum of 100 passengers at any one time.

Malaysia Airlines operates 12 Golden Lounges worldwide within and beyond Malaysia including in Los Angeles, Melbourne, Perth, Singapore and Sydney.

Malaysian Airlines operates 14 weekly direct flights from London to Kuala Lumpur.

Within the UK, Malaysia Airlines operates a codeshare agreement with British Midlands by proving connections to and from Aberdeen, Belfast, Dublin, Edinburgh, Glasgow and Manchester to London for onward connectivity to Kuala Lumpur.

Meanwhile, Malaysia Airlines Regional Manager for the UK & Ireland Syed Abdillah Aziz said the airline will launch special fares this Monday.

Return tickets from London to Kuala Lumpur would cost 399 pounds inclusive of tax and fuel surcharge. – Bernama

Malaysia Airlines Voted Asia's Leading Airline
November 08, 2009 17:54 PM
From Noor Soraya Mohd Jamal

LONDON, Nov 8 (Bernama) -- Malaysia Airlines, the national carrier of Malaysia was voted "Asia's Leading Airline" by over 180,000 industry professionals in a global poll conducted by the World Travel Awards.

The poll this year had the highest participation in World Travel Awards' 16-year history, with industry professionals in over 160 countries casting their votes for what they consider to be the very best travel, tourism and hospitality products and services in Asia.

The national carrier's chairman, Tan Sri Dr Munir Majid said this award indicated that Malaysia Airlines' "5-star airline" concept is working.

"We are delighted with this recognition which is testament to the hard work of our employees. Our focus has always been on serving customers. Anchoring this is our commitment to continuous service improvement and delivery, with our customers' needs in mind," he said after the event Saturday night.

He said in achieving this, the airline collate the information from our customers' feedback from all touch points including internal and external surveys, reports from the crew after each flight, and through the customer relations unit.

"This recognition bears testament to the fact that the industry and travellers recognize Malaysia Airlines' brand of service delivery," he added.

Malaysia Airlines has won a string of awards and accolades in 2009. This year, for the 4th consecutive year since 2005, the airline have been accredited a "5-Star Airline" by Skytrax. It is one of only six airlines worldwide to be given this award.

Malaysia Airlines' cabin staff also won the accolade of "World's Best Cabin Staff" by Skytrax. The team has won this over six years, 2001-2004, 2007 and 2009 - the most for any airline.

The World Travel Awards were launched in 1993 to acknowledge and recognize excellence in the world's travel and tourism industry. The awards are regarded as the very highest achievement that a travel product could ever hope to receive.

Among the inherent principles under which all nominations are judged are consistent overall business performance and success; high levels of customer satisfaction; valuing personnel and expansion and development.

Votes are cast by travel professionals from 183,000 travel agencies, tour and transport companies and tourism organizations in over 160 countries across the globe.

Attended by senior executives from major travel companies, operators and destinations, WTA events are universally respected as providing established, top-level networking opportunities, regionally and globally.

Other winners from Malaysia includes Pan Pacific, KLIA for Asia's Leading Airport Hotel Award, Resorts World Genting for Asia's Leading Casino Resort Award and Asia's Leading Family Resort Award, Hilton Kuala Lumpur for Asia's Leading Design Hotel Award and Malaysia, Truly Asia for Asia's Leading Marketing Campaign.

-- BERNAMA

MAS Well-placed To Capture Increased Passenger Traffic From London
November 08, 2009 11:06 AM

From Noor Soraya Mohd Jamal London, Nov 8 (Bernama) - Malaysian Airlines is better poised to capture increased passenger traffic from London to Kuala Lumpur with its relocation to the newly-refurbished Terminal 4 at London's Heathrow International Airport and the opening up of its brand new Golden Lounge.

Its chairman, Tan Sri Dr Munir Majid said the opening of the new lounge in London is part of the national carrier's customer value proposition, which focuses on ensuring that customers' needs are always at the top of the mind.

"Besides providing five-star value services in the air, Golden Lounge is a great avenue for us to continue providing seamless services to our customers on the ground," he said during the official opening of the Golden Lounge here, Saturday.

The event was officiated by Minister of Tourism Datuk Seri Dr Ng Yen Yen.

Dr Ng said the opening of Malaysia Airline's Golden Lounge in London is in line with the ministry's efforts to promote Malaysia as an ideal holiday destination.

She said from January to September this year, tourists from the U.K to Kuala Lumpur rose 19.7 per cent to 362,000 and the number was expected to reach 400,000 by the end of the year.

Dr Ng said the ministry was looking at the possibility of positioning Malaysia Airlines in London as the kick off point for tourists from Europe.

"I met operators in Copenhagen, Stockholm and Helsinki who discussed this possibility," she said.

The Golden Lounge, which cost about RM11 million, has a floor space of 738 square meters.

It is easily accessible as it is conveniently located next to Gate 6, the regular departure gate for all Malaysian Airlines flights and can accommodate a maximum of 100 passengers at any one time.

Malaysia Airlines operates 12 Golden Lounges worldwide within and beyond Malaysia including in Los Angeles, Melbourne, Perth, Singapore and Sydney.

Malaysian Airlines operates 14 weekly direct flights from London to Kuala Lumpur.

Within the U.K, Malaysia Airlines operates a codeshare agreement with British Midlands by proving connections to and from Aberdeen, Belfast, Dublin, Edinburgh, Glasgow and Manchester to London for onward connectivity to Kuala Lumpur.

Meanwhile, Malaysia Airlines Regional Manager for the UK & Ireland Syed Abdillah Aziz said the airline will launch special fares this Monday.

Return tickets from London to Kuala Lumpur would cost 399 pounds inclusive of tax and fuel surcharge.

-- BERNAMA

Malaysian Boeing 747 crossing over the 273 Road at Arlanda Sweden
From flickr

http://farm3.static.flickr.com/2544/3944055079_6c54b02385_o.jpg

http://farm3.static.flickr.com/2542/3746527675_670946b3b6_o.jpg

AirAsia, AirAsia X win CAPA Airline of the Year Award 2009
9th November, 2009

http://www.newsabahtimes.com.my/mediafiles/picture/7360/0911_CAPA_Award.jpg?1257741595

AirAsia X CEO Azran Osman-Rani (centre) with the award. On his right is
Tony while on his left is Peter Harbison, Executive Chairman of the Centre
for Asia Pacific Aviation (CAPA).

KUALA LUMPUR: Exceptional achievement, brilliant innovations, and constant positive growth – these exceptional qualities made AirAsia and AirAsia X joint winners of the prestigious Centre for Asia Pacific Aviation (CAPA) Airline of the Year Award for 2009 at the CAPA Aviation Awards for Excellence presentation ceremony, held in Beijing, China.

AirAsia’s Group CEO, Dato’ Sri Tony Fernandes was also conferred the CAPA Legend Award (Aviation Hall of Fame) for 2009 for shaping the way the aviation industry has evolved.

The awards ceremony was held as part of this year’s sixth annual Asia Aviation Outlook summit, showcasing airline and airport CEOs from around the Asia Pacific and Middle East regions.

Tony said, “This is a dual celebration for the airline. We are greatly honoured to be bestowed the most prestigious award of the evening. I am also honoured to be part of the Aviation Hall of Fame which honours me a lifetime of strategic leadership, innovation and influence in the aviation industry.”

“Undoubtedly, our ceaseless dedication in providing premium services with low fares, incessant innovations and most significantly, the unbeatable synergy of our short-haul and long-haul networks has greatly contributed to this success.”

“From two planes to 80 and from 200,000 to over 75 million passengers in just a short 7 years marks unprecedented growth by any airline globally, let alone a low fare airline like AirAsia.

“We are deeply flattered to accept this award and this shall further bolster our pledge – to provide superior services coupled with our low fares plus diverse service options to our guests. This is our promise,” he said.

The CAPA Airline of the Year 2009 award is deemed the uppermost level of recognition given to airlines for excellent achievements in the aviation industry and outstanding strategic contribution over the course of the past year.

AirAsia had successfully proven to be the leader in the development of the airline industry with its constant innovations and rapid expansion of its operations across the region and internationally, regularly setting new standards of excellence for others to follow.

The CAPA Legend Award 2009 (Aviation Hall of Fame) recognizes outstanding individual figures for being a revolutionary force in the aviation industry.

Tony was recognized for his influential actions for directly shaping the way the aviation industry has evolved. He is recognized for his drive, creativity, enthusiasm of driving liberalization across the region, opening new markets for AirAsia by bringing air travel to millions of new travelers and high growth levels to countless tourism destinations in a remarkably short time.

The Group CEO’s venture into low cost long haul services with AirAsia X may further cause revolution in the way network air services are delivered.

http://www.airasia.com/nl/images/2009b/freeseat2009_pic.gif

Book from 11 – 15 Nov 2009 | Travel from 1 May – 30 Oct 2010

AirAsia offers 1m free seats in promotion
Published: 2009/11/10

BUDGET carrier AirAsia announced today that it is giving one million free seats to over 70 destinations in its latest "Free Seats" promotion from Nov 11, 2009.

The promotion, which ends on Nov 15, is for the travel period from May 1 to Oct 30, 2010, the airline said in a statement.

The destinations concerned, which include China, India and Taiwan, are from AirAsia's network of over 130 routes and 20 countries.

"When the economy is tough, people seek cheaper travelling options which offer them better value for money and there is no better option than flying for free," said AirAsia regional head of commercial, Kathleen Tan.

The promotional seats are limited and available on a first-come, first-served basis and made exclusively online via www.airasia.com and mobile.airasia.com, the airline said.

BERNAMA

:banana:

THAI AIR ASIA

NEW route.

CHIANGMAI (CNX) - PHUKET (HKT) - CHIANGMAI (CNX)

(EVERY DAY)

START 3 DECEMBER 2009
:banana:

Thank you Thai air asia

MAS to spend RM480m on services system
Published: 2009/11/11

IN AN effort to simplify and enhance the travel experience of customers, Malaysia Airlines (MAS) is investing RM480 million in its Passenger Services System (PSS) over 10 years.

"We believe that over a period of 10 years it will give us benefits worth over RM2 billion," said managing director and chief executive officer Tengku Datuk Azmil Zahruddin.

"This is both in terms of revenue for customers due to the enhancement that we are giving as well as better efficiency that we expect to get from the system," he said at a media joint conference with SITA.

SITA, a specialist in air transport communication and information technology solutions, has been working with MAS on the PSS since May 2006.

The PSS programme is divided into five streams, namely reservation, ticketing, departure control, revenue integrity, and fares management.

The PSS is a key component of the national carrier's Business Turnaround Plan and Business Transformation Plan.

Tengku Azmil said the system had saved MAS more than RM300 million last year.

The airline expects a rise in online sales this year with the PSS in place, but "this is subject to Internet penetration worldwide", he said, declining to give any projection.

Online sales rose to 30 per cent from four per cent in the past 18 months for MAS and 45 per cent for MASwings, he added.

The PSS enabled MAS to achieve 100 per cent e-Ticketing by May 2008, in compliance with the International Air Transport Association (IATA) mandate.

Giving an update on phase two of the PSS, MAS general manager, transition management, Salleh Tabrani, said in the latest phase, the cutover to the new SITA reservations system was successfully concluded at the end of last month.

The airline is now on an integrated SITA platform, allowing customers to enjoy seamless service delivery and a suite of new services, including mobile and Enrich miles redemption online, he said.

"Upgrading to a new reservations platform is the equivalent of a heart transplant for an airline," Salleh said.

"After months of planning, we successfully moved to a new system in 13 hours and transferred some 1.5 million passenger records," he said.

Salleh said more than 3,000 reservations and ticketing staff worldwide were trained in preparation for the change.

The SITA reservations system's suite of products includes reservations, inventory and distribution with code share, automated schedule and re-accommodation management for MAS.

The system, being used by 127 airlines, is the largest independent multi-hosted environment of its kind and MAS is the largest carrier on the SITA platform.

The airline's e-commerce platform is now fully integrated with the SITA system to ensure faster and more streamlined online product delivery, Salleh said.

BERNAMA

MAS aims to let you book,check in via your handphone
By Jeeva Arulampalam Published: 2009/11/12

http://www.btimes.com.my/Current_News/BTIMES/articles/jsita/Article/Current_News/BTIMES/Images/btgraph10/MAS12.jpg

MALAYSIA Airlines (MAS) (3786) could offer booking and check-in services using mobile phones by as early as next month.

The move is in line with the airline's efforts to enhance its passenger services system (PSS).

The airline will work with SITA, a specialist in air transport communication and IT solutions, to implement mobile technology offering services such as booking, check-in, flight status and timetable information.

"There are airlines that offer mobile services now but their processes are lengthy. We aim to create a seamless and easy process for customers to book and even check-in via their mobiles," said MAS managing director and chief executive officer Datuk Tengku Azmil Zahruddin.
Tengku Azmil was speaking at a media briefing held yesterday in Subang on MAS simplifying and enhancing its PSS utilising SITA's technology.

MAS has worked with SITA since 2006, with phase one of the PSS upgrade seeing the airline utilising e-tickets and introducing web and kiosk check-ins.

Phase two of the PSS upgrade involved MAS changing its reservation platform. On November 1, its reservation system migration was carried out globally within the MAS network as well as for its subsidiary, MASwings.

"After months of planning, we successfully moved to a new system and transferred some 1.5 million passenger records," said Tengku Azmil.

He added that this reservation system would not be used for community airline Firefly, as the airline was operating on a different system.

The overall adoption of the SITA platform will help MAS achieve a total of RM2 billion in cost savings and revenue growth over a 10 year period, he added.

The airline will invest a total of RM480 million in its PSS over a 10 year period, with the initial investment having started three years ago.

http://biz.thestar.com.my/archives/2009/11/12/business/b_03mas.jpg

MAS introducing new reservations system called SITA
http://biz.thestar.com.my/news/story.asp?file=/2009/11/12/business/5092681&sec=business[/QUOTE]

AirAsia X starts daily flights to Cochin
Published: 2009/11/12

AirAsia X today began daily direct flights to Cochin, the commercial capital of Kerala, following successful expansion to the South Indian city of Trichy last year, said chief executive officer Azran Osman-Rani.

He said the low cost long-haul airline affiliate of AirAsia will also start flying to Trivandrum and Kolkata next week.

"We expect strong demand from customers, especially business travellers," he told reporters on the sidelines of the Third Kuala Lumpur International Trade Forum in Kuala Lumpur today, an event concurrently held with Intrade Malaysia.

He also confirmed AirAsia X's inaugural flight to Abu Dhabi was on Nov 23.

Azran said AirAsia X's business operations were on track despite the current global economic downturn which has affected many airlines' profit margin.

"We hope to register good financial performance this year and continue our route expansion programme," he added.

The AirAsia Group achieved RM288 million operating profit in the first half of this year, accounting for five times higher than the same period last year.

It also recorded 24 per cent passenger growth year-on-year. -- Bernama

AirAsia sets world record for ticket sales
Saturday, November 14th, 2009

KUCHING: AirAsia set a new world record with its latest 1 Million Free Seats Campaign launched on Nov 11 and then broke it the next day.Navitaire, the host reservation provider that powers booking engines to an extensive number of airlines around the world, announced that AirAsia set a new international sales record with 402,222 seats snapped up in the 24-hour period after the campaign was launched.

But even before the ink was dry on the announcement, industry experts confirmed that AirAsia had broken its own new world record when another 489,000 seats were snapped up in the second 24-hour period.

AirAsia group deputy CEO Datuk Kamarudin Meranun lauded the achievement, saying: “This is amazing news. It’s remarkable that we are setting world records in just seven short years as a low-fare carrier, trumping established and renowned airlines. We are blazing new trails and our brand has gone global.”

Kamarudin said in a press statement: “It is an accomplishment not just for AirAsia, but for Malaysia and Asean. The region’s largest low-fare carrier is demonstrating that Asean companies can take on the best and beat them.

“And think of all those hundreds of thousands of people who will be flying AirAsia to Malaysia and elsewhere in Asean thanks to this campaign, spending their tourism dollars and boosting local economies across our extensive network of over 130 routes,” he said.

“We are also thankful for both the ‘Open Skies’ and ‘New Skies’ booking systems provided by Navitaire, which managed to handle the most demanding requirements of our flight booking operations.

“And, of course, all credit to our hard-working and dedicated staff for making this record-setting achievement possible.

“I am fully confident that the dedication they demonstrate every day will help us deliver on the brand promise we have made to our guests, low fares, high quality, premium service, unmatched route network and frequency of flights,” he added.

Malaysia Airlines launches "Global Sales"
Written by The Edge Financial Daily
Monday, 16 November 2009 00:00

SUBANG: Malaysia Airlines is kicking off its "Global Sales" today, offering travelers low deals to over 40 destinations including Europe, India, China, Africa, Australia.

In a statement yesterday, Malaysia Airlines senior general manager sales and marketing Datuk Bernard Francis said the booking period until Nov 25, 2009 was for the travel period of between Dec 15, 2009 and June 30, 2010.

The London route is on offer from as low as RM1,248. For destinations in Asean countries, fares start from RM183 to Medan, RM223 to Yogyakarta, RM343 to Bali, RM293 to Surabaya, RM283 to Jakarta, RM338 to Siem Reap and Phnom Penh, RM303 to Ho Chi Minh City, RM458 to Manila and RM408 to Yangon.

Orient destination fares begin from as low as RM418 to Hong Kong, RM558 to Shanghai and Guangzhou and RM 608 to Kunming.

For destinations in the Indian Subcontinent, offers start from RM498 to Colombo, RM658 for flights to Hyderabad, RM718 to New Delhi and RM698 to Mumbai.

All promotional airfares are for one-way economy class travel and includes airport tax, fuel surcharge, insurance and administrative fees.

Transmile grounds plan to sell maintenance unit to MAS
Friday November 20 2009
http://www.themalaysianinsider.com/index.php/business/43974-transmile-grounds-plan-to-sell-maintenance-unit-to-mas

http://media.themalaysianinsider.com/images/stories/2009july2/119_mas.jpg

Children watch MAS planes at the KLIA.
— Reuters pic

KUALA LUMPUR, Nov 19 — Air cargo operator Transmile Group said today it would not sell its aircraft maintenance unit to national carrier Malaysian Airline as the letter of intent had expired.

“However, both parties will continue to be in dialogue in the event that opportunity arises for the parties to pursue the proposed transaction in future,” Transmile said in a filing with the stock exchange.

No timeframe was given.

Malaysian Aerospace Engineering Sdn Bhd (MAE), a unit of Malaysia Airline, was supposed to buy Transmile’s base maintenance and engineering capabilities including 2 hangars, equipment, and employment of its skilled manpower.

Financial details of the transaction were never revealed.

MAE was also supposed to provide heavy maintenance services to Transmile’s fleet of 16 freighter aircraft.

MAE services 80 customer airlines including Lufthansa, Saudi Arabian Airlines, Jet Airways and Delta Air Lines Inc.

Shares of Malaysian Airline edged 0.3 per cent higher at RM3.12 and Transmile ended down 1.9 per cent at RM1.02. — Reuters

AirAsia sets its sights on listing in Thailand
By Jeeva Arulampalam Published: 2009/11/20

Low-Cost carrier AirAsia Bhd has plans for a dual listing in Thailand to achieve its vision of becoming a full-fledged Asean airline.

The airline has harboured plans of listing abroad since the inception of its Thai and Indonesian associate airlines some five years ago, AirAsia group chief executive officer Datuk Seri Tony Fernandes said.

"The plan is to list AirAsia group in Thailand and later on in Indonesia. The performance of both associates is dramatically improving and we are working on a suitable structure to inject them into a common share," Fernandes told Business Times in an exclusive interview yesterday.

AirAsia is the second Malaysian company to announce intentions of listing in Thailand, following CIMB Group Holdings Bhd's announcement on Monday.

"It's so crucial that more liquidity is created in the Asean economies and we applaud the regulators from both countries for taking proactive measures to do so. The Asia growth story should not just be about China and India," said Fernandes.
He said that by focusing on a single Asean airline identity, AirAsia will have a common identity among the 600 million people in the region and strengthen its brand.

The airline is currently in discussions with lead arranger CIMB Group to map out its listing details. Both CIMB Investment Bank Bhd and CIMB Thai Bank are actively engaging regulators from Malaysia and Thailand on AirAsia's behalf.

"It's still too early to provide details on when and how many shares will be floated. But we are looking at issuing new shares," Fernandes said.

He said the listing structure would be similar to CIMB Group's dual listing in Thailand.

CIMB Group plans to offer 35 million shares to retail and institutional investors in an initial public offering that could raise some RM452.2 million based on its current share price.

It will be the first foreign company to float shares on the Stock
Exchange of Thailand (SET) after regulators there approved last month a set of new guidelines for foreign listings that will take effect on December 1.

AirAsia's current market value on Bursa Malaysia is RM3.61 billion.

Its share price rose 3 per cent to end at RM1.31 yesterday.

Although there were plans to privatise AirAsia Bhd last year, Fernandes said the airline was committed to remaining listed on the local stock exchange.

AirAsia, which will release its third quarter results today, expects its associate airlines to turn profitable by the end of this fiscal year.

This will be achieved as the associates grow their routes and replace their ageing fleet of Boeing 737s with new Airbus 320s.

AirAsia has a 49 per cent stake each in Indonesia AirAsia and Thai AirAsia.

Malaysia AirAsia swings to Q3 profit
Published: 2009/11/20

AirAsia says Q3 net profit 130 million ringgit versus 465.53 million Ringgit net loss a year ago.

Q3 revenue at 739.67 million Ringgit versus 707.91 million. On outlook, AirAsia CEO Tony Fernandes said: “Based on the forward booking trend, the underlying passenger demand in the fourth quarter is positive. We are on course to achieve the Group’s target of carrying 25 million guests for the full year 2009.”

On fuel prices, Fernandes said AirAsia has partially hedged fuel requirements in the fourth quarter. -- REUTERS

AirAsia Plans Flights To India Via Thailand
November 20, 2009 21:05 PM

SEPANG, Nov 20 (Bernama) -- AirAsia, Asia's leading low cost airline, plans to fly to Delhi, Kolkata and Amritsar via its Bangkok hub by the first half of next year, said group chief executive officer Datuk Seri Tony Fernandes.

"The whole Indian sub-continent is going to be very exciting for AirAsia and the Malaysian tourism industry.

"By next year, (there will be) six routes from Malaysia to India while three via Thailand," he told reporters after the live video interview with the Indian media in conjunction with the Kuala Lumpur-Kolkata route launch, here Friday.

Kuala Lumpur-Kolkata was AirAsia's fourth route launched this year. The airline currently flies to Trichy, Kochin and Trivandrum. With frequency of two flights a day, Trichy is AirAsia's top ten profitable routes.

Fernandes said India was a huge market with 1.1 billion people, US$3.1 trillion economy and 20 potential airports.

There is a still room for AirAsia to tap the market, he added.

AirAsia will fly the Kuala Lumpur-Chennai and Kuala Lumpur-Bangalore routes by May next year, Penang-Chennai in April and Kuala Lumpur-Hyderabad in July.

For the Kuala Lumpur-Mumbai and Kuala Lumpur-Delhi routes, he said the destinations will be operated by AirAsia's long-haul affiliate, AirAsia X, by the end of next year.

-- BERNAMA

MAS offers MHinsure insurance t air travellers
Updated: Friday November 20, 2009 MYT 3:39:02 PM

KUALA LUMPUR: Malaysia Airlines (MAS) is making it easier for air travellers to buy travel insurance online by opening up MHinsure to Malaysians, Singaporeans and Australians.

"With the opening of MHinsure to travellers in Malaysia, Singapore and Australia, we are confident we will see more than 70 per cent growth in premium sales by end of next year," said Muzzaffar Othman, MAS Senior General Manager in the Managing Director's Office.

He said the national carrier's plan is to expand MHinsure to other markets in the near future.

Since the launch of MHinsure in Malaysia last year, about 25 per cent of Malaysia Airlines' passengers have bought the travel insurance online.

Now travellers, whether flying with Malaysia Airlines or other airlines, can buy MHinsure at
www.malaysiaairlines.com, it said in a statement. - Bernama

AirAsia Sells 28,000 Seats For Kolkata Route
November 21, 2009 22:32 PM

KUALA LUMPUR, Nov 21 (Bernama) -- AirAsia, Asia's largest low-cost carrier, has, to date, sold 28,000 seats for the Kuala Lumpur and Kolkata route.

Open for sale on Oct 15, the airline said the new route would unlock the potential of international air travel from Kuala Lumpur to eastern India and its surrounding areas.

"It's a significant achievement for this market. We are very committed to expanding and providing excellent opportunities for travellers to enjoy our unbelievable low fares and world class service," Regional Head of Commercial Kathleen Tan said in a statement Saturday.

Kathleen Tan said the airline was also looking forward to add further capacity, better travel value options and comfort for travellers between India and Kuala Lumpur.

"We always strive hard to continue expanding our extensive network and there are plans to initiate services to other cities in India soon," she added.

-- BERNAMA

MAS Wins 5-Star Airline & World's Best Cabin Staff Award For 2010
November 22, 2009 17:27 PM
http://www.bernama.com/bernama/v5/newsbusiness.php?id=457153

KUALA LUMPUR, Nov 22 (Bernama) -- It is a double celebration for Malaysia Airlines as it was awarded the "5-Star airline" for the 5th consecutive year and the "World's Best Cabin Staff" for the 7th time by Skytrax, a UK based organization, with 20 years experience in airline research.

Malaysia Airlines has been accredited as a 5-Star airline by Skytrax since 2005. Its cabin crew has won the "World's Best Cabin Staff" award for 2001-2004, 2007, 2009-2010 - the most for any airline.

Malaysia Airlines' Managing Director and Chief Executive Officer, Tengku Datuk Azmil Zahruddin said, "This is great news, particularly in today's tough environment where all employees have been working very hard to deliver products and services that matter to the customer. What matters to them, matters to us.

"This recognition will spur us to intensify our efforts to improve our products and services. Our cabin crew has done a stellar job, and they have continuously held the MAS & Malaysian flag high in the highly competitive aviation industry. They epitomized the best of Malaysian Hospitality."

Azmil also said the airline will be rolling out new services such as flight services from buying, boarding and disembarkation on mobile and enhanced online redemption of Enrich points.

"We will also be taking delivery of the new 737-800 Boeing Sky Interior by the end of 2010. Customers will enjoy better ambience, higher ceilings, mood lighting, Inflight Entertainment on every business and economy class seats which offers audio and video on demand, and latest generation light weight seats. Mobile connectivity services will be offered in the future".

Skytrax CEO, Edward Plaisted said, "In awarding the 5-Star airline ranking to Malaysia Airlines for 2009/2010, we are recognising the consistent front-line performance of the airline during recent tough times for the industry.

"The 5-Star Airline status is awarded only to airlines achieving the very highest quality performance, and this top tier award for Malaysia Airlines pays respect to their ability to deliver the right combination of product and service. They are clearly focussing very carefully on not just meeting, but surpassing their customer's expectations".

Malaysia Airlines was also recently voted as "Asia's Leading Airline" by over 180,000 industry professionals in a global poll conducted by the World Travel Awards.

Other recognitions received this year include Airline of The Year by Malaysia Airport Holding Bhd, 3rd in Top Performing Company by Aviation Week, No. 8th in Top Airlines Worldwide Category by Smart Travel Asia and the Top 10 airlines in the first Global Local Monitor on airline websites.

The 5-Star ranking certification is applied and reviewed annually by Skytrax, following the detailed audit analysis of each airline's product & service quality levels.

The "World's Best Cabin Staff" survey was gathered using a range of input sources such as online customer survey, business research group and customer telephone interviews.

-- BERNAMA

KL will be hub for flights to India, says AirAsia
By Jeeva Arulampalam Published: 2009/11/23

LOW-COST carrier AirAsia Bhd (5099) will concentrate on using Kuala Lumpur as its hub for flights to India, said its top official.

While the group plans to offer flights from Bangkok to Delhi, Kolkata and Amritsar next year, it does not plan to have flights from Indonesia to India for now.

"We will continue to use KL as a hub for our flights to India," group chief executive officer Datuk Seri Tony Fernandes told reporters in Sepang last Friday.

With four Indian routes from Kuala Lumpur under its belt currently, the airline hopes to add additional routes like KL-Chennai, KL-Bangalore, and KL-Hyderabad by the middle of next year.

"We have 20 potential airports that we can go to in India. We are not just looking at tourists, but the small and medium enterprises such as the textile businesses that will benefit from these flights," Fernandes said after watching the launch of the Kuala Lumpur-Kolkata flights in India via video conference.

AirAsia presently has two daily Kuala Lumpur-Trichy flights and its latest additions are Kuala Lumpur-Kochi, Kuala Lumpur-Trivandrum and Kuala Lumpur-Kolkata.

Long-haul affiliate AirAsia X will launch its new Indian routes next, with flights to Mumbai and Delhi from Kuala Lumpur before the year-end.

Meanwhile, AirAsia's next new route will be Penang-Chennai, which should start by April next year.

The airline will utilise some eight to 10 aircraft for its Indian routes.

Fernandes said that with AirAsia now flying to Asean, China and India, it has the potential to reach some 2.5 billion people.

In another development, Fernandes also received the Orient Aviation Person of the Year for 2009 award last Friday, given by the Hong Kong-based aviation industry publication Orient Aviation.

Orient Aviation chief executive Barry Grindrod said Fernandes was the first person to receive the award whose airline is not affiliated with the Association of Asia Pacific Airlines.

He pointed out how legacy airlines have followed AirAsia's lead and entered the low-cost travel market.

AirAsia plans listing on Thai, Indonesian stock exchanges
2009/11/22

KUALA LUMPUR: Southeast Asia’s biggest budget carrier AirAsia plans to list on the Thai and Indonesian stock exchanges in a bid to tap the region’s capital markets despite a turbulent year for airlines.

AirAsia has the most extensive network in Southeast Asia, with more than 70 destinations across 20 countries — and has grown dramatically from just two planes to its current fleet of 85 in just seven years.

Now the company, currently listed only in Malaysia, wants to list itself and its Thai affiliate in Thailand. It also wants to list its Indonesian affiliate in Indonesia.

Group chief executive Tony Fernandes said the moves would give it more of a Southeast Asian identity.

“We are an ASEAN company. We want many ASEAN investors to buy our shares,” he told AFP over the weekend in Kuala Lumpur.

AirAsia is a big capital stock on the Malaysian bourse. “By listing on the three stock exchanges, it will boost AirAsia’s ASEAN identity,” he said.

Indonesia is Southeast Asia’s most-populated nation while Thailand and Malaysia are key members of regional bloc the Association of Southeast Asian Nations (ASEAN).

Fernandes said he was unable to say when the listings would take place as the plan was still in its infancy, but was confident there would be demand for the shares, despite the industry’s problems during the global economic downturn.

“The timing is great in Asia. And Southeast Asia is a huge market,” he said of the region’s 550 million people.

Yeah Kim Leng, chief economist with ratings agency RAM Holdings, in Malaysia, told AFP that the listing of AirAsia on the Thai bourse would allow Fernandes to “raise capital and to reduce overall gearing.”

Listing the affiliates, Thai AirAsia and Indonesia AirAsia, would also add fresh dynamism to the capital markets in Thailand and Indonesia and “will enable local investors to participate in the growth potential of the company,” he said.

Fernandes said AirAsia had picked CIMB Investment Bank Bhd, a unit of Malaysia’s second largest bank CIMB Group Holdings, as lead arranger for the stock listings.

AirAsia’s listing plans come just days after CIMB Group Holdings announced it plans to list on the Thai stock exchange in the first half of 2010.

On the outlook for the aviation industry, Fernandes said AirAsia was in better shape than many of its competitors.

“We will press ahead with our route expansion. For instance, we will continue to expand into India. The whole Indian subcontinent is an exciting region for AirAsia,” he said.

AirAsia, which services more than 130 routes, already flies to Kolkata, Trichy, Kochi and Trivandrum.

While premium carriers have suffered, Fernandes said low-cost carriers have been more resilient in weathering the economic downturn.

“Passenger demand for AirAsia seats remained strong. We will weather the storm very well. Our demand for fourth quarter is good,” he said.

AirAsia’s net profit in the three months to September climbed to RM130.07 million from a loss of RM465.53 million a year ago.

Andrew Herdman, director general of the Association of Asia Pacific Airlines (AAPA), said the first 10 months of 2009 “has been one of the most difficult and challenging for airlines in the history of aviation.”

During the period, AAPA international passenger numbers were down by 8.2 per cent, while air cargo experienced a 16.5 per cent decline.

Herdman said the industry has to steer a difficult course over the next year. - AFP

AirAsia taps SEA capital market
http://www.straitstimes.com/BreakingNews/SEAsia/Story/STIStory_457672.html

http://www.straitstimes.com/STI/STIMEDIA/image/20091122/airasia-afp.jpg

AirAsia plans to list on the Thai and Indonesian stock exchanges in a bid
to tap the region's capital markets despite a turbulent year for airlines.
-- PHOTO: AFP

I thought Singapore's usage of the word was bad already but AirAsia's use of the word "hub" is even more flippant.

Anyway, we've been hearing positive news about AirAsia. Let's hear something "negative"; AirAsia is canceling LGK-SIN from Jan 10.

Analysts cut AirAsia forecasts
Published: 2009/11/24

http://www.btimes.com.my/articles/ja23/pix_topright

Analysts have cut their forecasts for AirAsia Bhd's (5099) profits for the current year after the low-cost carrier's third-quarter core operating profit fell short of their expectations.

Although the stock was upgraded to a "buy" call last week, OSK Research has now downgraded AirAsia's fair value to RM1.13 based on 10 times financial year 2010 (FY10) earnings per share (EPS) and reduced its recommendation to a "sell".

"As we believe the price undercutting (for air fares) and escalating crude oil price would persist in the short to medium term, we downgrade our projection by 31 per cent and 46.5 per cent for FY09 and FY10 respectively," it said in a report yesterday.

While AirAsia's net profit was RM130.1 million, its core operating profit was RM33.8 million after adjusting for foreign exchange gains.

Analysts were surprised by the further contraction in average fares to RM141.60, or lower by 11.5 quarter-on-quarter, although they projected a poorer third quarter as it is seasonally the airline's weakest quarter.
"The firm's fuel price averaging US$79.30 (RM268. 03) per barrel in third quarter was 30.4 per cent higher quarter-on-quarter, which was higher than the average 12.8 per cent increase in fuel cost over the same period," OSK said.

HwangDBS Vickers Research has cut its FY09 forecast core earnings by 12 per cent to RM378.7 million after factoring in a lower yield of 12.6 sen (from 13.3 sen) as well as higher jet fuel costs.

It maintains that the stock is fully valued, with the stock currently trading at 9.5 times FY10F EPS (ex-EI) and 1.1 times FY10F BV, higher than peers' 8.0 times and 0.9 times, respectively.

However, ECM Libra Investment Research is maintaining its "buy" call on the stock as it views the current quarter's results as just a blip.

"Most full service carriers are expected to post losses in the third quarter on aggressive fare cutting and this cannot go on indefinitely, especially when fuel cost is rising again. As economic recovery gains traction, we expect airfares to normalise," it said in a report.

Effective paid search pays off for Malaysia Airlines
Tuesday November 24, 2009

PETALING JAYA: Malaysia Airlines clinched the gold award at the Asia Pacific Digital Media Awards in Shanghai for the most effective use of paid search to boost online ticket sales.

According to a release by the MAS media relations unit, judges described the airlines’ work as path-breaking, demonstrating innovative uses of paid search across multiple countries and languages.

MAS communications senior general manager Indira Nair said the number of tickets sold through search soared 450%, earnings per booking grew 200% while time spent on website through search traffic went up 150%.

“On these metrics, we were consistently higher than the market average and ahead of competition in Malaysia and the region,” she said.

Its website www.malaysiaairlines.com was recently listed among the top 10 in the first Global Local Monitor on airline websites.

Its monthly Internet sales have also grown from 30,000 bookings to 150,000.

Indira said in just 18 months, MAS has some 22,000 fans on its Facebook page, Malaysia Airlines Travel and more than 6,000 followers on Twitter.

MAS also has an active employee blog known as Living Malaysian Hospitality.

The national carrier has also been awarded the “5-Star airline” for the fifth consecutive year by Skytrax, a UK-based organisation with 20 years experience in airline research.

Its cabin crew has won the “World’s Best Cabin Staff” award for 2001-2004, 2007 and 2009 – the most for any airline.

MAS launches direct KL-Brisbane flights
Published: 2009/11/24

MALAYSIA Airlines will launch two new weekly non-stop flights from Kuala Lumpur to Brisbane effective March 28, 2010.

The flight on Fridays and Sundays will complement its current five times weekly flights from Kuala Lumpur to Brisbane via Sydney, the national carrier said in a statement today.

The two flights will depart Kuala Lumpur at 9am, arriving in Brisbane at 6.55pm on the same day, it said.

Flights will leave Brisbane at 11.20pm, arriving in Kuala Lumpur the next morning at 5.45am.

Malaysia Airlines Regional Manager Australia, New Zealand and South West Pacific, Abd Manaf Harun said: "We are delighted to provide these new direct flights in response to customer feedback.

"For long haul flights, customers want the assurance of comfort, convenience and seamless travel which we provide.

"The new Friday services will appeal to Malaysian leisure travellers as they are able to maximise their holiday time and commence it at the start of the weekend."

According to Abdul Manaf, customers are also assured of easy train connectivity to the Gold Coast as flights will arrive at 6.55pm.

"Likewise, Australian travellers returning home will appreciate the Sunday early evening arrival as that would give them time to rest before heading back to the office on Monday," he explained.

Malaysia Airlines connects to five destinations in Australia - Brisbane, Sydney, Melbourne, Adelaide and Perth.

It also offers a total of 46 weekly services to Australia. - Bernama

MH at Amsterdam - Schiphol Airport.
http://i225.photobucket.com/albums/dd251/bima25/DSCF5155.jpg

AirAsia X starts flying to Middle East
From Ahmad Fairuz Othman
Published: 2009/11/25

ABU DHABI: Long-haul budget carrier AirAsia X has started flying five times a week from Kuala Lumpur to Abu Dhabi, expanding its network into the Middle East.

The inaugural flight on its Airbus 340 culminated with a launch event at the Yas Island Rotana hotel here yesterday.

AirAsia X chief executive officer Azran Osman-Rani said Abu Dhabi has the potential to become a hub for the carrier to expand its network into the Middle East.

"I take it (Abu Dhabi ) as a priority market. We are now focusing on adding more capacity and working on the service's efficency. We will focus on Abu Dhabi first, before expanding our network further into this region," he said after the launch.

Also present were Malaysian High Commissioner to the United Arab Emirates Datuk Yahaya Abdul Jabar, Abu Dhabi Tourism Authority deputy director-general Ahmad Hussein and AirAsia X chairman Datuk Kalimullah Hassan.

Abu Dhabi serves as a gateway to the Middle East, which has a population of about 300 million.

Abu Dhabi is the ninth destination offered by AirAsia X, after Chengdu, Hangzhou, Taipeh, Melbourne, Gold Coast, Perth, London and Tienjin.

To celebrate its launch, AirAsia X is offering 1,100 free tickets under the AirAsia Go Holiday packages from now until Friday. The travel period is for December 1 until January 31 2010.

It is also offering an online promotional offer of a number of seats through its website at RM99 or 99 dirhams, for one-way travel between now and July 31 2010.

AirAsia plans daily flight between Kota Kinabalu and Taipei

By Ghim-Lay Yeo
Malaysian low-cost carrier AirAsia plans to start a daily flight from Kota Kinabalu in east Malaysia to Taipei.

It will commence from 15 January and will be operated on an Airbus A320 aircraft, says the airline.

"The travelling trend to places such as Taipei is increasing and with growing potential household income in east Malaysia, we believe there will also be strong potential demand from east Malaysian travelers to fly directly to the city," says regional head of commercial AirAsia group Kathleen Tan.

Thai AirAsia flies between Taipei and Bangkok while AirAsia X flies between Taipei and Kuala Lumpur.

AirAsia will compete on the Kota Kinabalu-Taipei route with Malaysia Airlines.

-flightglobal.com

Air Asia X
From flickr

http://farm3.static.flickr.com/2803/4137139487_0068c21d75_o.jpg

http://farm3.static.flickr.com/2459/4137138477_afdb4beb9c_o.jpg

http://farm3.static.flickr.com/2585/4137139241_1cd2d1ba69_o.jpg

Airbus to defer A380 delivery to Malaysia Airlines
AFP-Friday, November 27

KUALA LUMPUR (AFP) - – Malaysia Airlines said Thursday Airbus was delaying delivery of the carrier's first A380 superjumbo aircraft by eight months.

Managing Director and Chief Executive Azmil Zahruddin said MAS will now take delivery of its first A380 in August 2011 instead of January 2011.

"We have never requested for the A380s to be delayed; all delays have been at Airbus' request," he told Dow Jones Newswires.

The six aircraft were initially supposed to be delivered from January 2007.

Airbus has said that the carrier will be compensated for the delay in the delivery of the aircraft.

Azmil said deliveries of subsequent aircraft will be pushed back to the latter part of 2011, and into 2012.

A Singapore-based spokesman for Airbus confirmed that the delivery schedule for Malaysian Airline's order for A380 jets "has been revised."

The official declined to say why the deliveries have been delayed and didn't provide details on the revised delivery schedule.

Malaysia Airlines said Wednesday it sunk back into the red in the third quarter, blaming losses on its fuel-hedging positions.

In the three months to September, the airline posted a net loss of 299.6 million ringgit (88.9 million dollars) compared with a net profit of 38.1 million ringgit a year earlier

MAS Success In Raising US$126 Million Named 'Aircraft Leasing Deal Of The Year'
November 29, 2009 14:49 PM

KUALA LUMPUR, Nov 29 (Bernama) -- Malaysia Airlines success in securing finances worth US$126 million under the Japanese Operating Lease for seven ATR72-500s aircraft was named "Aircraft Leasing Deal of the Year - Asia" by Jane Transport Finance.

Working with BNP Paribas Corporate and Investment Banking ("BNP Paribas"), the JOL transactions were closed at a time when the global financial markets were in a crisis.

The success in securing the financing was especially significant in light of a very quiet Japanese equity market.

"Our success in securing seven Japanese Operating Lease (JOL) since September 2008 in this difficult economic environment coupled with the thin equity market in Japan is a recognition of the strength and depth of our relationship and excellent reputation in the Japanese market.

"This shows the confidence that the financiers have in our healthy financial position and our prospect for growth," said Malaysia Airlines Chief Financial Officer, Mohd Azha Abdul Jalil in a statement on Sunday.

He added, "This is an excellent start to our financing exercise as we will require more financing for our fleet replacement programme."

In addition to the ATRs, Malaysia Airlines has ordered 35 B737-800 with delivery commencing end of 2010.

BNP Paribas' Global Head of Transportation Finance, Eric Eugene, said: "We are delighted that the financing has been granted this award. The financing structured as a JOL found very strong interest in the Japanese market despite the period of financial instability during which it was closed."

"It is also remarkable insofar as it was the first time that MAS was returning in the aircraft financing market in many years. It is quite unusual for ATR aircraft to be financed through the JOL market and this was made possible thanks to the excellent recognition of MAS in the Japanese equity market," he said.

JOL is an unique aircraft financing structure whereby the financier takes the form of a special purpose vehicle ("SPV"), which acquires title of the aircraft, and leases the same to Malaysia Airlines on operating lease terms.

The SPV will obtain its equity through syndication of diversified sources from the Japanese equity market, to part finance the aircraft costs and the balance will be funded by loan provided by BNP Paribas and Credit Industriel et Commercial.

The JOL has a call option embedded and upon exercising such call option, the ownership of the aircraft will be transferred to MAS.

Jane's is a brand of IHS (Global) Limited which is wholly owned by IHS, Inc. The business operates as an impartial services provider, independent from government or commercial interests.

Jane's Transport Finance Awards are hosted by Jane's and are established to recognise the immense effort and skill of financiers, bankers and lawyers working within the transport finance industry.

Awards are given in the aircraft, airport, rail, road and shipping sectors. Winners are judged on a specific deal which demonstrates that their finance house or bank has shown particular innovation and skill in securing finance for transportation assets.

The awards are judged by a panel of leading experts and Jane's Transport Finance editorial team. The Awards continue to recognise the immense effort, skill - and risk sometimes - which goes into structuring the shape of the global transport industry of tomorrow.

-- BERNAMA

MAS unit plans venture with Pratt&Whitney
Published: 2009/12/02
RELATED LINK: http://www.pw.utc.com/Home

MAS Aerospace Engineering Sdn Bhd, a unit of Malaysian Airline System Bhd, signed a preliminary agreement to form a technology joint venture with Pratt & Whitney.

MAS Aerospace also signed an agreement with KRAUSS GmbH Aviation Technologies aimed at providing parts repair for engines, landing gears and airframe, it said in an e-mailed statement today. -- Bloomberg

MAS to start mobile phone bookings, check-ins
Wednesday December 2, 2009 By B.K. SIDHU

The new service an alternative option for cell phone users

PETALING JAYA: From next week, travellers on Malaysia Airlines (MAS) can book air tickets and check in using their mobile devices.

The airline has in place a new IT platform that allows mobile users to buy tickets, check in for flights, view timetables, track baggages and even get a mobile boarding pass.

This is the trend globally where airlines are moving away from over-dependence on travel agents and, at the same time, taking advantage of information technology to reach out to the travellers directly.

Online bookings have been available for a long time and now, with over 90% of travellers carrying handphones, the mobile platform is yet another alternative to book flights and check in.

The International Air Transport Association (IATA) had earlier said that this would also eventually eliminate long queues at airports and, if all airlines moved towards electronic boarding passes, that would save the industry US$500mil annually.

Several global airlines, including AirAsia, Turkish Airlines, Finnair, Southwest Airlines and Ryanair, offer this service for the convenience of their travellers.

MAS had earlier said that it would ensure that its service was more comprehensive compared with what is offered in the market place.

The service was soft launched on Sunday. The commercial roll-out is expected early next week.

Mobile phone users need to log on to http://flyMAS.mobi to access the Web-based platform.

MAS on Sunday sent out an SMS inviting mobile users to book via their mobile devices. A check by StarBiz revealed that getting connected was easy and the process was not very complicated. The airline, however, has yet to come up with detail information of the service.

The webpage, which provides contact numbers of all MAS offices, also has a “deals and offers” section with a list of special fares for certain destinations. On offer currently are fares to several Asean cities.

The move to offer mobile booking and check-in is part of an ongoing effort by the airline to upgrade its passenger service system. It is investing RM480mil over a 10-year period, beginning in 2006, for that and has engaged aviation IT specialist SITA for assistance.

MAS Aerospace Engineering seals MoUs for future technology
Published: Wednesday December 2, 2009 MYT 2:21:00 PM

LANGKAWI: MAS Aerospace Engineering Sdn Bhd (MAE)has signed memoranda of understanding (MoUs) with Pratt & Whitney (PW) and KRAUSS GmbH Aviation Technologies, to help the company to place itself at the forefront of new aircraft technology.

MAE is a wholly-owned subsidiary of Malaysia Airlines.

The MoU with PW will see both parties exploring the possibility of setting up a joint venture company for nacelle and composite repair and overhaul.

Meanwhile, the MoU with KRAUSS is aimed at providing parts repair for engines, landing gears and airframes.

Commenting on the MoU with PW here today, Malaysia Airlines general manager for engineering and maintenance - KLIA, Rashidi Saidin said the company hopes to set up the joint venture entity within six months.

"As aircraft technology evolves, we are constantly exploring strategic partnerships to ensure MAE is at the forefront of new technology.

"These collaborations will make us highly competitive.Not only will we have the technological expertise but be more cost competitive compared to many maintenance, repair and overhauls (MROs)," he added.

The signing ceremony was held at the Langkawi International Maritime and Aerospace Exhibition 2009 (LIMA 2009) here and was witnessed by Prime Minister Datuk Seri Najib Tun Razak.

At the same event, Malaysia Airlines managing director/chief executive officer, Tengku Datuk Azmil Zahruddin presented letters of employment and staff identification tags to three Malaysia Airlines Engineering Training Centre (METC) Felda scheme trainees.

The trio represent the first group of 69 Felda trainess who will be absorbed into MAS' workforce. - Bernama

AirAsia ups KL-HK flight frequency
Published: 2009/12/03

BUDGET carrier AirAsia Bhd will increase its Kuala Lumpur-Hong Kong flights to three times a day, from two, effective January 21 next year.

In a statement issued yesterday, AirAsia said the route , sees an average load factor of 75 per cent.

In conjunction with the increased frequency, it is offering promotional all-in fares from RM129 (HK$398) one-way on the sector.

Bookings can be made from today to Monday for travel from January 21 to October 30 next year.

AirAsia Plans To Fly To Seoul And Sydney By Middle Of Next Year
December 07, 2009 19:08 PM

SEPANG, Dec 7 (Bernama) -- AirAsia is in the midst of securing rights to land in Seoul and Sidney by the middle of next year.

The budget airline is also spreading its wings in India to 12 new routes in 2010, said its group chief executive officer Datuk Seri Tony Fernandes.

He said AirAsia received tremendous response from the South Korean's Government, and it is in the process of obtaining approval for flight to Seoul.

"South Korea is the new country and they are very excited about it. As for India, it has been a very successful destination so far and we are looking into 12 new routes including Hyderabad, Bangalore, Delhi, Mumbai and Chennai," he told reporters after celebrating AirAsia's eighth anniversary here Monday.

Todate, the budget airline flies to four destinations in India, Trichy, Trivandrum, Kolkata and Kochin, while its current destinations in Australia are Gold Coast, Perth and Melbourne.

Tony said Thailand and Indonesia will also be two strong countries for AirAsia next year.

Commenting on the airline's outlook next year, he said AirAsia was confident it will be an "amazing year".

"For the past three quarters, we have recorded profit amid the sluggish economic environment, and the fourth quarter looks very strong," he said.

-- BERNAMA

RM8 flights as AirAsia celebrates eighth anniversary
Tuesday December 8, 2009

http://thestar.com.my/archives/2009/12/8/nation/n_10airasia.jpg

Happy Birthday: Fernandes cutting a cake with AirAsia chairman Datuk Aziz
Bakar and deputy group CEO Datuk Kamarudin Meranun at the company’s
anniversary celebration at the LCCT concourse, Sepang, Monday.
Celebrating with them is Datuk Nicol David (left) .

SEPANG: AirAsia is offering all-in fares starting from as low as RM8 for domestic flights and from RM25 for international flights in conjunction with its eighth year anniversary celebrations and achievements.

The special fares are for flights to destinations including Kuala Lumpur, Singapore, Bangkok, Jakarta, Bali, Phuket, Taipei, Hanoi, Trichy, Abu Dhabi, Macau, Hong Kong and others.

To enjoy the promotions, customers must book seats online from Dec 8 to Dec 18 and fly between July 5 and Oct 30 next year.

Guests may also book tour packages and make hotel bookings on goholiday.airasia.com.

Airline CEO Datuk Tony Fernandes also announced that AirAsia would be introducing Sydney and Seoul as its new routes in mid-2010 through the AirAsia X package, followed by 12 new routes in India.

On another matter, Fernandes said the airline’s website airasia.com had attracted 20 million unique visitors per month with its blogsite blog.airasia.com, ranking it as the world’s second most popular blog site by an airline.

“Tapping into the new media and social networking sites has given an advantage to AirAsia to keep its customers informed of the latest promotions and other updates.”

Announcing the recent success at its eighth year anniversary celebration here yesterday, he said: “AirAsia has attracted a large following using the Internet including those from places we don’t fly to yet, like the United States.”

The airline information dissemination system included updates in Twitter, Flickr and Facebook.

AirAsia’s facebook at facebook.airasia.com has a fan base of some 100,000 since it was launched nine months ago.

NOTE: 1 USD = 3.3 MYR

MAS’ digital strategy paying off
Written by Emily Tan Tuesday, 08 December 2009 11:35
http://www.theedgemalaysia.com/media-a-advertising/155198-mas-digital-strategy-paying-off.html

MALAYSIA Airlines (MAS), which has been actively developing its presence in the digital sphere since last year, is beginning to see its efforts pay off.

The airline launched its employee blog, Living Malaysian Hospitality (LMH), last year which captures and shares employees’ stories. It is also present on Twitter and has several Facebook fanpages. Its website malaysiaairlines.com was ranked eighth on comScore’s list of most visited Malaysian websites in June this year.

The airline’s online search campaign by media services agency Mindshare won a gold award at the Asia-Pacific Digital Media Awards 2009 organised by Media magazine on Nov 16 in Shanghai, China. Malaysia Airlines and public relations agency Fleishman-Hillard also won the Best Use of Digital award at the Malaysian PR Awards 2009 on Dec 2, awarded by the Public Relations Consultants Association of Malaysia. The social media campaign won for its success at integrating digital elements and connection with its online target audience.

The online search campaign was developed in response to the increasing reliance that travel consumers place on online research, turning to search engines like Google and Yahoo to help them make decisions, said Mindshare search regional director, Sanchit Sanga in a Nov 24 statement. To ensure the campaign would appeal to consumers, the agency conducted an in-depth consumer travel insight study, said Sanchit.

The results of the global campaign across 25 markets and in 10 languages were “remarkable”, said Indira Nair, MAS senior general manager of communications. “The number of tickets sold through search soared 450% (compared with before the campaign’s launch in January). Earnings per booking grew 200%. Time spent on website from search traffic went up 150%.
“On these metrics, we were consistently higher than the market average and ahead of competition in Malaysia and the region,” she said in a Nov 23 statement by MAS.

Besides the search campaign, the airline also worked on improving its website, www.malaysiaairlines.com, creating a more user-friendly environment by improving the speed and enhancing the payment gateway. This resulted in an average increase of 40% in monthly visitors since last year and Internet sales have grown from 30,000 last year to about 150,000 bookings per month today, according to a statement. Its efforts were recognised last month by the User Experience Alliance, a global network of leading user research firms, which placed the site at no 10 in the inaugural Global Local Monitor league table. The rankings are based on an assessment of a site’s efficiency and degree of localisation.

MAS has also been using social media successfully to reach out to 23- to 30-year-olds. “In just eight months, we have some 22,000 fans on our Facebook page, Malaysia Airlines Travel. And we have more than 6,000 followers on Twitter. We also have MH Expats and MH Students fanpages on Facebook,” said Indira in a Dec 3 statement.

In an email interview with The Edge for the Malaysia’s Most Valuable Brands 2009 special focus last month, MAS CEO and managing director Tengku Datuk Azmil Zahruddin said the social media approach is aimed at building awareness, and “not for a hard sell”.

“We focus on making two-way conversation and this is evident in the comments and responses which are posted on our fan pages. We are getting into their basket of consideration for travel,” he said.

“By using a combination of influence and relationship-building conversations, we use the social media as a platform for communicating and interacting, and integrate these with a relevant mix of offline activities and events. This encourages consumers to consider the ‘value’ proposition, rather than impulse purchasing based solely on price,” said Indira.

According to the airline, it will accelerate its digital presence next year by focusing on driving online sales.

This article appeared on the Media & Marketing page, The Edge Financial Daily, Dec 8, 2009.

Air Asia Eyes The US Market
December 08, 2009 12:09 PM
By Manik Mehta

NEW YORK, Dec 8 (Bernama)- Malaysia and Asia's best-known low-cost carrier, Air Asia, has set its sights on the United States market.

Aviation experts here say that Air Asia could easily fill the vacuum left by the national carrier, Malaysia Airlines (MAS), which recently discontinued flights to the east coast and closed its office in the Big Apple.

MAS however, still maintains its operations on the west coast, with flights to Los Angeles.

Datuk Tony Fernandes, Air Asia's chief executive, told Bernama in an interview in New York recently - he was a member of the entourage accompanying the Prime Minister Datuk Seri Najib Tun Razak to the city - that he was "working" towards establishing a regular service to the east coast.

"We are very keen to enter the US market which has good business potential," he disclosed.

He hoped to start flights to an east coast airport, either New York or New Jersey, in 2010.

Ever since MAS stopped its service to the east coast, Malaysia lost an important connectivity with that part of the world.

"There are many foreign national carriers, which despite losses, maintain operations to this part of the world which is an important international service point.

"It is that proverbial pennywise-pound-foolish decision, that is likely to haunt MAS, because by withdrawing it will find it extremely difficult to come back and re-establish its position," said a New York based aviation expert who wished to remain anonymous.

Although Air Asia is a low-cost, "no frills" carrier, its arrival here would provide relief to travellers particularly Malaysians, who endure a great deal of inconvenience flying to back home via a third country.

Tony also discussed plans for the acquisition of new aircraft.

"Over the next 24 months, we will be having 32 aircraft of the A-320 type, most of which is to be used for India and China.We have 120 routes which will be increased.

"Air Asia Express will have six aircraft of the A-330 type, mainly for Sydney, Jeddah, Seoul and cities in India," he explained.

According to Tony, the airline also plans to start services to San Francisco, Los Angeles and Hawaii.

However, things need to be sorted out first, at the government-to-government level.

The New York service will be an extension of Air Asia's service from London's Stansead airport.

Tony described the US market as "very good". "There are many students here.

"I am confident, many Americans will also use Air Asia to visit Asia and Europe. They can also get connectivity to Australia," he said.

Asked whether the smaller seat configuration on Air Asia's aircraft, which is fine for passengers on shorter routes, would be suitable for long-haul flights, he said: "The airline plans to change and improve the seating configuration for the long-haul sectors."

On Air Asia's cargo business, though negligible and not fully tapped yet - it accounts for less than one percent of the airline's business - he said that it would further grow in future.

"We are also preparing for that," he said.

Air Asia's total fleet of aircraft, including Thai AirAsia, AirAsia X and Indonesia AirAsia, comprises 85 aircraft, the majority of which are of the A320-200 type.

The fleet also includes some B737-300, A330-300, A340-300 and A350-900 aircraft.

-- BERNAMA

Experts AirAsia can easily fly to New York
Wednesday December 9, 2009

NEW YORK: AirAsia has set its sights on the US market.

Aviation experts here said AirAsia could easily fill the vacuum left by national carrier Malaysia Airlines (MAS), which recently discontinued flights to the east coast and closed its office in the Big Apple.

MAS however, still maintains its operations on the west coast, with flights to Los Angeles.

Datuk Seri Tony Fernandes, AirAsia chief executive, told Bernama here recently that he was ”working” towards establishing a regular service to the east coast.

“We are very keen to enter the US market which has good business potential,” he said adding that he hoped to start flights to an east coast airport, either New York or New Jersey, in 2010.

Since MAS stopped its service to the east coast, Malaysia lost an important connectivity with that part of the world.

“There are many foreign national carriers, which despite losses, maintain operations to this important international service point. “It is that proverbial pennywise-pound-foolish decision that is likely to haunt MAS because by withdrawing it will find it extremely difficult to come back and re-establish its position,” said a New York-based aviation expert who wished to remain anonymous.

Fernandes also discussed plans for the acquisition of new aircraft.

“Over the next 24 months, we will be having 32 aircraft of the A-320 type, most of which is to be used for India and China. We have 120 routes which will be increased. Air Asia X will have six aircraft of the A-330 type, mainly for Sydney, Jeddah, Seoul and cities in India,” he said.

According to Fernandes, the airline also plans to start services to San Francisco, Los Angeles and Hawaii.However, things need to be sorted out first at the government-to-government level. The New York service will be an extension of AirAsia’s service from London’s Stansted airport.

Fernandes described the US market as “very good”. “There are many students here. I am confident many Americans will also use AirAsia to visit Asia and Europe. They can also get connectivity to Australia,” he said.

He said the airline also planned to change and improve the seating configuration for the long-haul sectors.— Bernama

MAS sees RM2b benefit from Passenger Services System
9th December, 2009

PETALING JAYA: Malaysia Airlines (MAS) expects RM2 billion worth of benefits in terms of both cost saving and revenue growth over a 10-year period with a new Passenger Services System (PSS), a component of which was launched yesterday.

“With over RM480 million invested on the integrated platform over 10 years, MAS customers can enjoy seamless service delivery and a suit of new services,” managing director and chief executive officer Tengku Datuk Azmil Zahruddin said.

The PSS component, MHMobile-flymas.mobi, is the world’s most comprehensive mobile booking system.

Developed together with SITA Lab, it offers more choices and convenience for the airline’s 14 million passengers, allowing them to book, pay, check in and board flight using mobile phone.

It is also the first mobile airline application that connects bookings to Facebook, Triplt and Doppir, enabling friends and colleagues to be informed about each other’s travel plans.

AirAsia wins brand of the year award
Published: 2009/12/10

BUDGET Airline, AirAsia Bhd, won the Brand of the Year Award at the Media Agency of the Year (AOY) Award in Singapore yesterday.

The airline said the AOY award recognised inspired brand leadership, management excellence, outstanding business performance and overall achievements in the Asia-Pacific advertising and communications industry.

It was awarded the honour for its constant innovations and bold ideas in branding campaigns and advertisements to achieve marketing success, the low-cost carrier said in a statement.

Despite the global economic downturn, AirAsia continued to embark on numerous branding campaigns which not only became the industry's benchmark, but also led the way to demonstrate aggressive branding efforts essential to keep the brand relevant, alive and fresh especially during challenging times.

" As a young airline, we are elated with this win as it is an important recognition to our tireless efforts in bringing the AirAsia brand to the forefront," said AirAsia Regional Commercial Head Kathleen Tan.

Tan said the airline was committed to build its brand and bring it to greater heights.

Media Editor-in-chief and AOY Jury Chair, Atifa Hargrave-Silk, said AirAsia was given the award for its achievement in building its brand and expanding international profile in a year at a time when the economic downturn crippled demand for air travel. - Bernama

http://farm3.static.flickr.com/2430/3610820408_10e68da6d6_b.jpg

MAS bags best maintenance award
Published: 2009/12/11

Malaysia Airlines Engineering & Maintenance (E&M) Division has been awarded the 2009 Best Asia-Pacific Airline MRO (Maintenance, Repair and Overhaul) Operation Award by Aviation Week and Overhaul & Maintenance, two of the industry's leading magazines.

The MRO Asia Awards programme is intended to honour companies operating in the Asia-Pacific region for excellence in aviation and aerospace aftermarket operations.

This is the second award won this year, attesting to MAS E&M's creditable reputation in the marketplace. Earlier this year, MAS E&M was selected as the 2009 Asia-Pacific Airframe MRO of The Year by Frost & Sullivan, Singapore.

Malaysia Airlines senior general manager (E&M) Mohd Roslan Ismail said: “We are delighted to receive this award which is testament to the team's focus on quality, safety and timely deliverables."

"Our customers are important to us and we are turning ourselves into a one-stop shop MRO that will meet their needs. With six Hangars offering 24 maintenance bays that can accommodate even A380 aircraft, we are able to offer maintenance service support for all aircraft type and size," he said in a statement today.

MAS E&M is transforming into a subsidiary, Malaysian Aerospace Engineering Sdn Bhd, in 2010.

Mohd Roslan said the company's vision is to be the preferred global MRO.

"To achieve this, we are developing new capabilities and diversifying our portfolio. We are also exploring strategic partnerships," he added.

To be at the forefront of new technologies, MAS E&M sealed two memoranda of understanding, one with Pratt & Whitney, USA, and the other, with KRAUSS GmbH Aviation Technologies, Germany, at the recent LIMA 2009.

It has also set up a JV MRO company with GMR Hyderabad International Airport Ltd in Hyderabad, India. Other partnerships include a JV company for the provision of MRO services for turboprop commercial aircraft with Alenia Aeronautica of Italy. -- BERNAMA

Jetstar in joint venture talks with AirAsia
Published: 2009/12/18

SYDNEY: Australia’s national airline Qantas today said its budget offshoot Jetstar was in talks with Malaysia’s AirAsia about a possible joint venture aimed at reducing costs.

“Qantas confirms that its wholly-owned subsidiary Jetstar and AirAsia have entered discussions regarding a potential cost-saving joint venture,” the company said in a statement to the market.

“However, these discussions are at a preliminary stage and no binding agreements have been reached.” A spokesman for Jetstar said the venture was aimed at savings on the ground, and the airlines would still compete for passengers.

“It could be along the lines of non-competing areas of aviation that could deliver significant cost savings,” the spokesman told AFP.

“An example could be some ground handling opportunities, an example could be some procurement opportunities.” Despite coming just days after Australia announced it would relax some foreign ownership rules for Qantas, the venture would not affect either airline’s ownership, he added.

“These discussions have been had in complete isolation to what’s come out in recent days,” the spokesman said.

“The crux of this is about cost and pursuit of economies of scale amongst the Asian region’s two largest low-cost carrier groups.”

Kuala Lumpur-based AirAsia is the Asia-Pacific region’s largest budget carrier, operating more than 400 daily flights to 60 destinations.

Jetstar operates almost 2,000 weekly flights to more than 50 destinations in Australia and the Asia-Pacific.

Australia on Wednesday unveiled a blueprint for its aviation industry for the next two decades which eases some restrictions on foreign ownership of Qantas while leaving the ’Flying Kangaroo’ majority Australian owned. - AFP

MAS pondering RM1b rights issue
Published: 2009/12/22

Malaysian Airline System Bhd (MAS) (3786), the national carrier, is considering raising at least RM1 billion in a rights offering of shares, two people familiar with the proposal said.

The airline's board and government have yet to give approval for the plan, the people said, declining to be identified as the discussions are private.

"We are considering all options to fund our purchase of planes, including debt and equity-based financing such as a rights issue and share sale," the airline said in an e-mailed statement. - Bloomberg

MAS eyes a greener future
Written by The Edge Financial Daily Monday, 21 December 2009 23:31
http://www.theedgemalaysia.com/business-news/156088-mas-eyes-a-greener-future.html

KUALA LUMPUR: MALAYSIAN AIRLINE SYSTEM BHD [] (MAS) has several strategies lined up to reduce carbon emissions by the airline, which will include an internal programme to integrate, reduce, reuse and recycle waste management practices, its managing director and CEO Tengku Datuk Azmil Zahruddin said.

“We are also among the few airlines in Asia that have carbon offset programme where passengers volunteer, while buying their flight ticket, we calculate how much carbon and how much they can contribute and the funds are going to programmes that have been endorsed by the government together with UNDP (United Nations Development Programme),” he said in a recent interview with Air Transport News.

Azmil also said its refleeting programme, which “costs a lot of money”, would also reduce carbon emissions. He said although discussions on the environment in Asia were fewer compared to Europe and the US, MAS had to “start somewhere”.

“We do not want to wait before we do it, so we do it, we publicise it, we make people aware that everything is there and I think over time we will improve,” added Azmil.

It is understood that 2% of the world’s carbon emissions of greenhouse gases are contributed by the aviation industry. Since 2005, MAS has embarked on green programmes such as energy conservation, pursuing and obtaining ISO14001 certifications for environmental management systems.

MAS u-turns to buy, not lease A380s from PMB
Tuesday December 22 2009
By Syed Jaymal Zahiid
http://themalaysianinsider.com/index.php/business/47373-mas-u-turns-to-buy-not-lease-a380s-from-pmb-

KUALA LUMPUR, Dec 22 — In a major U-turn, Malaysia Airlines (MAS) will take over the purchase of six undelivered Airbus A380s from state-owned Penerbangan Malaysia (PMB) for RM 1.54 billion to save on leasing premiums and flexibility to manage its assets.

The flag carrier plans to also bundle four Boeings for a total of RM3.19 billion from PMB, which was set up under a November 2002 Wide Asset Unbundling (WAU) to take all assets from the debt-ridden airline.

Malaysia’s sovereign wealth fund Khazanah Nasional Berhad owns 100 per cent of PMB, and a majority stake in MAS while its managing director Tan Sri Azman Mokhtar was behind the WAU.

MAS, which signed a deal to buy 15 Airbus A330s and 10 options today, plans to partly pay for its acquisitions through a rights issue to raise at least RM2.7 billion by first quarter 2010.

The proposed acquisitions are said to add RM648 million to MAS’s profit and liability over a period of three years primarily from owning the aircraft as opposed to lease deal.

MAS chief executive officer and managing director Tengku Datuk Azmil Zahruddin told a press conference here that owning an aircraft would give a lower lifetime cost than leasing.

“While leasing ensures that we have flexibility with our fleet, we pay premium for this... with this, we have the option either owning the aircraft or doing a sales and leaseback depending on our requirements,” he said.

MAS will pay PMB some RM1.54 billion in cash for novation of the purchase of the A380s. PMB has issued bonds for its purchases and is expected to use the cash to repay bondholders. It sold the MAS headquarters which is now expected to be turned into a hotel and serviced apartment block in Kuala Lumpur’s Golden Triangle business district.

The carrier is expected to receive one A380 every month beginning August 2011 and delivery is expected to be completed by Jan 2012 after a delay of several years.

The A380s, the biggest among the Airbuses, will be deployed to high-density routes such as London, Amsterdam and Sydney as the aircraft would allow them to carry 35 per cent more passengers.

The A330 wide-bodied planes are due to be delivered between 2011 and 2016. MAS already owns six.

As for the bundling of the four Boeing aircraft from PMB, the state airline is planning to make an upfront payment of RM190 million for it and the aircraft will be sold upon them being unencumbered.

The payment is a form of prepayment for the operating lease rentals under the existing lease agreements between PMB and MAS.

MAS has also recently secured US$126 million (RM426 million) under the Japanese Operating Lease (JOL) for seven ATR72-500s aircraft for its Firefly community airline service.

The deal was was named “Aircraft Leasing Deal of the Year - Asia” by Jane Transport Finance for 2009.

MAS To Purchase Up To 25 New A330 Aircraft
December 22, 2009 20:53 PM
http://www.bernama.com/bernama/v5/newsbusiness.php?id=463990

PETALING JAYA, Dec 22 (Bernama) -- Malaysia Airlines is purchasing up to 25 A330-300 aircraft worth US$5 billion in order to serve the growing markets of South Asia, China, North Asia, Australia and Middle East.

"The A330 will complement our incoming fleet of six A380 and 35 B737-800," its managing director/chief executive officer Tengku Datuk Azmil Zahruddin told reporters following the signing of a memorandum of understanding between MAS and Airbus here Tuesday.

Under the deal, MAS is to acquire 15 A330-300 aircraft with options for a further 10.

The aircraft will be delivered from 2011 to 2016.

"The new fleet will create a strong platform for us to profitably grow. The A380 will serve key long haul destinations such as London and Sydney, the A330 for medium haul markets while the B737-800 will be used to strengthen our domestic and regional routes," Azmil said.

Azmil said the national carrier expected to gain annual savings of RM300 million when the first 15 A330 aircraft are received.

"By 2016, all the aircraft we have ordered will be in and we expect to have one of the youngest, most fuel efficient and environmentally friendly fleet in Asia," Azmil said.

He said MAS's strategy was to transform from having a 100 per cent leased fleet to owning at least a third of the aircraft in its core fleet.

On the delay of Airbus A380 super-jumbo planes, Azmil said the delay was due to production issue, adding that the total compensation including the additional delay to August will be in excess of RM330 million.

The A380 planes which are supposed to arrive in January 2011, are now slated to start arriving in August 2011.

On its prospects next year, Azmil said the national carrier expected a fairly modest growth, adding that it was looking at additional potential routes in India, China and the Middle East.

Meanwhile, Airbus senior vice president (sales) Thomas Friedberger said MAS will benefit from the more fuel-efficient aircraft with lower operating costs.

"Airbus has never stopped innovating and improving on the A330 family by integrating the experiences and knowledge that we have gained through other Airbus programme," he said.

-- BERNAMA

MAS to start mobile phone bookings, check-ins
http://flyMAS.mobi

http://www.malaysiaairlines.com/MHmobile/images/img_flymasmobi_gen.jpg

MAS' plans for saving RM649mil
By TEE LIN SAY 23 Dec 2009

http://biz.thestar.com.my/archives/2009/12/23/business/p1-mas.JPG

Tengku Azmil Zahruddin and Airbus senior vice-president, sales, customer
affairs, Thomas Friedberger at the MoU signing ceremony. They are flanked
by MAS stewardesses

Carrier plans to buy six A380s, ‘bundle’ four planes from PMB for RM3.19bil

PETALING JAYA: Malaysia Airlines System Bhd (MAS) will have a cost savings of RM648.9mil over the next three financial years (FY) beginning FY 2010 with its proposal to acquire six Airbus A380s and “bundle” four Boeing aircraft from Penerbangan Malaysia Bhd (PMB) for RM3.19bil.

The national airline will pay PMB RM1.54bil cash for novation of the purchase of the A380s from PMB to MAS under the deal.

It is also paying RM190mil cash and undertaking liabilities of RM1.46bil to bundle two B777 and two B747 aircraft.

The bundling concept refers to MAS paying cash upfront as pre-lease rental to PMB, hence allowing a certain amount of discount to MAS.

At the end of the lease period, PMB will have an option to buy back the planes from MAS.

MAS is also expecting a compensation of about RM330mil for the delay in the deliveries of the Airbus A380 from January 2011 to August 2011.

MAS’ strategy, moving forward, is to transform from a 100% leased fleet to owning at least a third of the aircraft in its core fleet.

“While leasing ensures that we have the flexibility with our fleet, we pay a premium for this. In practice, we do not need full flexibility for the entire fleet,” MAS managing director and CEO Tengku Azmil Zahruddin told reporters at a press conference yesterday.

To fund this acquisition, MAS has proposed to offer 1.67 billion new shares to raise about RM2.67bil.

The rights shares will be offered to shareholders on the basis of one rights share for every one share held at a date to be announced later.

At RM1.60 each, the rights shares are priced at about 32.1% discount to the theoretical ex-rights price of about RM2.36 based on a five-day volume weighted average market price up to Dec 21.

Of the proceeds, RM500mil will be used for the acquisition of A330-300 aircraft, RM1.78bil for working capital, RM365mil for the repayment of bank borrowings and the remainder for estimated expenses.

PMB and Khazanah Nasional Malaysia, which collectively own 69.33% of MAS, have agreed to fully take up the rights issue.

The listing of the new rights share is estimated to happen in early March 2010.

Earlier, MAS and Airbus signed a memorandum of understanding covering the order of 15 A330-300 and acquired purchase options for another 10.

The total cost of the 25 aircraft is US$5bil.

These fuel-efficient aircraft will be delivered from 2011 to 2016 and will serve the growing markets of South Asia, China, North Asia, Australia and Middle East.

When all 15 A330 aircrafts are received by 2016, MAS expects annual savings gains of RM300mil.

MAS will also have the youngest, most fuel-efficient and environment-friendly fleet in Asia.

“This is the best time to order aircraft.

“When you order in a downtime, you get better deals and the aircraft is received when the economic cycle picks up,” Azmil said.

Maybank Investment Bank Bhd senior analyst Khair Mirza views the deal positively, saying that apart from cost savings, the acquisitions would bring in new revenue and improve yields due to the planes’ larger capacity.

Khair expects MAS to stage a turnaround in FY10. “Don’t be surprised if fourth-quarter earnings surprise on the upside, as cost has come down significantly. I think we should see some recovery in MAS’ yields,” he said.

Meanwhile, upon completion of the rights issue and proposed aircraft acquisition, MAS’ gearing ratio will fall to 1.3 times.

Gearing will peak in 2011 to 2.1 times due to the delivery five A380, five A330-300 and three B737-800.

Come 2016, with the increased capacity and new product offering from its new aircraft, MAS’ gearing will drop to one time.

From flickr

http://farm4.static.flickr.com/3419/3771185134_313508122f_o.jpg

From flickr

http://farm4.static.flickr.com/3475/3720393250_06825bd555_o.jpg

AirAsia And Jetstar Form Cost-Saving Alliance
January 06, 2010 11:41 AM
By Neville D'Cruz

MELBOURNE, Jan 6 (Bernama) -- AirAsia says its alliance with Qantas Airways' subsidiary, Jetstar, could potentially generate cost-savings worth hundreds of millions of dollars and result in lower fares.

Under the alliance formed in Sydney Wednesday, Jetstar and AirAsia would explore opportunities to jointly procure next generation narrow-body aircraft, cooperate in passenger handling in Australia and Asia, pool aircraft components and spare parts and jointly acquire engineering and maintenance supplies and services.

The airlines said the alliance would reduce costs, pool expertise and result in cheaper fares.

AirAsia Group Chief Executive Datuk Seri Tony Fernandes said the alliance showed low-cost carriers could work together to stimulate the market and to operate on lower fares.

"The key thrust is to increase our efficiency and find ways of getting even lower fares. From this I believe we will then move into revenue ideas and we've already got a few that we've been discussing," Fernandes was quoted as saying in Sydney by the Australian Associated Press.

Fernandes said a common aircraft type specifications of the next generation narrow-body airplanes would be pro-actively pursued by both airlines due to the many efficiencies it would bring.

Jetstar Chief Executive Bruce Buchanan said: "We have identified many hundreds of millions of dollars of cost-saving opportunities and we think is an exciting opportunity for us as we launch this partnership going forward.

"Cost-savings are critical to Jetstar's business model and enables lower fares and more people can travel," he said.

Buchanan said there were "natural synergies" between Jetstar and AirAsia: They operated the same aircraft type to similar ports and had very similar business models.

The big potential savings would not be in labour costs but in obtaining aircraft best suited for the Asia-Pacific region and in sharing spare parts, he said.

"There'll be no job cuts from the Jetstar side and I can't imagine there'll be any job cuts from the AirAsia side," said Buchanan.

Describing the alliance as "historic", Qantas Chief Executive Alan Joyce said: "This is the first alliance between two low-cost carriers of this size anywhere in the world.

"It's a non-equity alliance but it's the foundation for bigger things for the group into the future.

"This will lead to further joint ventures, it will lead to significant cost savings within the group," Joyce was quoted by AAP as saying.

The alliance would reinforce Qantas Group's position in Asia, said Joyce, adding that: "It makes Asia the big focus of the group going forward and it's something that we think is strategically significant for the group today."

Asia is expected to overtake the US and Europe as the world's largest travel market by 2015.

Joyce said he did not expect any significant regulatory issues arising from the alliance given that the focus at the moment was on cost savings and future aircraft design.

Joint purchasing power would enable the airlines to work with airline manufacturers on the right aircraft configuration and design, he added.

IG Markets research analyst Ben Potter said the alliance was "very positive" given the extremely competitive airline industry and the pressures under which carriers operated.

"The Asia-Pacific region is one of the biggest growth markets in aviation.

Any ways to further reduce costs and offer more competitive fares will benefit both shareholders and customers," Potter told AAP.

-- BERNAMA

By Laura Mueller - Flightglobal.com - 6 Jan 10

The newly-formed Jetstar-AirAsia alliance hopes to influence the future design of narrowbody aircraft to better fit the needs of low-cost operations in Asia. "Aircraft are generally designed for full-service carriers, what we need is an aircraft designed for low-cost carriers in Asia," says AirAsia CEO Tony Fernandes.

He believes aircraft design can be enhanced to reflect the stresses on aircraft that are particular to low-cost operations, particularly regarding fuel savings and reliability issues. A solution, he adds, could be for manufacturers develop separate types of narrowbody aircraft for low cost carriers and full service carriers.

Reducing costs through better purchasing power and design influence over new narrowbody aircraft are the key features of Jetstar and AirAsia's new non-equity airline alliance, which the carriers announced today. The alliance believes collective purchasing during the next round of narrowbody aircraft orders will deliver significant savings. "The AirAsia name carries a lot of clout," says Fernandes. He also believes the alliance's purchasing power could be used beyond narrowbody aircraft. "There are no reasons why this can't be extended to includes widebodies as we both have Airbus A330s," he says.

Jetstar chief executive Bruce Buchanan says that the partners have identified "many hundreds of millions of dollars of cost saving opportunities", but admitted most of this would come from aircraft design and purchase initiatives.


Other savings will come from agreements to cooperate on the provision of passenger and ground handling in Australia and within Asia at overlapping airports, and will pool inventory for aircraft components and spare parts. They will jointly procure engineering and maintenance supplies and services, with Jetstar saying that it will maintain its existing use of and commitment to Australian facilities. The alliance is also looking at the joint purchase of fuel.

Finally, there will be reciprocal arrangements for passenger management. This will allow them to support passenger disruptions and recovery onto the other airline's service across both of their networks.

By Laura Mueller - Flightglobal.com - 6 Jan 10

The new Jetstar-AirAsia alliance could examine the formation of a new leasing company based around their older Airbus A320 aircraft. "This is an interesting option for us," says Tony Fernandes, CEO of AirAsia, who adds that the venture would have to overcome tax issues. Given that the companies operate a large fleet of A320s, it would enable them to provide easy access to spares and overcome other issues, he adds.

Between them the two carriers operate a total of 166 A320-200 aircraft with 162 on order, according to Flightglobal's ACAS database. AirAsia operates 48 A320-200 aircraft with 105 on order, and Jetstar Australia operates 32 A320-200s with 57 on order. Singapore-based Jetstar Asia operates six A320-200s.

AirAsia, Jetstar form alliance
By Jeeva Arulampalam Published: 2010/01/07

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

The first such alliance between two budget airlines will involve them buying planes and parts together and offering joint ground-handling services

Airasia Bhd (5099) and Australia's Jetstar Airways Pty Ltd have formed a cost-savings-driven alliance that could well change the region's low-cost carrier (LCC) landscape.

The first such alliance between two LCCs, it will involve both airlines buying planes and parts together and offering joint ground-handling services, a strategy that could result in annual cost-savings of some A$200 million to A$300 million (RM620 million to RM930 million) for both airlines.

The partnership could even lead to a code-share agreement in future for two of Asia-Pacific's leading LCCs, AirAsia group chief executive officer (CEO) Datuk Seri Tony Fernandes said.

"The next logical step would be to look at a code-share agreement. It will not be your traditional code-share agreement, but for routes that we don't have the rights to fly to or if we don't have the (right) planes," Fernandes told Business Times in a telephone interview.
He was speaking after AirAsia, Jetstar and its parent airline Qantas Airways Ltd finalised the alliance agreement between both LCCs in Sydney, Australia, yesterday.

"This will be an exclusive partnership between both airlines. It's difficult to have two husbands," Fernandes said.

The alliance will help both airlines reduce costs, pool expertise and, ultimately, offer even cheaper fares.

Under the agreement, the airlines will look at opportunities for joint procurement of the next generation of narrow-body aircraft, such as the Airbus A320.

The goal is to reduce costs through large orders and work with aircraft manufacturers on the design of planes and specification that suit their operational needs as LCCs.

"We will have the economies of scale to help us cut cost," said Fernandes.

They will also jointly procure engineering and maintenance supplies and services and pool their inventory arrangements for aircraft parts.

"We have already started doing so for some parts like brakes, wheels and engines," Fernandes said, adding that AirAsia could see savings of some RM100 million this year from the alliance.

In addition, both airlines will have a cooperative arrangement for passenger and ground-handling in Australia and within Asia at overlapping airports.

"There won't be any duplication of staff because we are short-handed in some areas. So there will be no job cuts. Instead, we are interested in developing our own ground-handling unit through this alliance," Fernandes said.

The agreement also allows for reciprocal arrangements for passenger management, support for passenger disruptions and recovery onto the other airline's service across their networks.

Fernandes strongly believes the strategic tie-up will help AirAsia maintain its position as the lowest-cost airline in the world despite rising costs associated with the fledgling global economic recovery.

Asked when AirAsia would begin flights to Sydney, Fernandes said he was looking at July.

"It's difficult to answer that question because we are awaiting the approvals. We were asked the same question by journalists in Sydney (yesterday) given that we already fly to Perth, Melbourne and Gold Coast," he said.

Meanwhile, Qantas Airways CEO Alan Joyce said the historic non-equity alliance would give Jetstar and AirAsia a natural advantage in one of the world's most competitive aviation markets.

"Jetstar and AirAsia offer unmatched reach in the Asia-Pacific region, with more routes and lower fares than their main competitors, and this new alliance will enable them to maximise that scale," he said in a joint statement issued yesterday.

He said the aviation sector in Asia was a growth market and had been resilient over the past year despite the tough operating environment.

Jetstar CEO Bruce Buchanan said the cooperative approach was a result of both airlines' strong focus on costs.

He said Jetstar had reduced its controllable costs by up to 5 per cent annually and that the agreement would enable a further step-change in its cost position and ensure sustainable low fares.

MAS flies into new year with low fares
Monday January 11, 2010

PETALING JAYA: Malaysia Airlines is offering fares as low as RM89 for domestic travel and RM193 for international destinations, in line with its Everyday Low Fares promotion starting today.

From now until Friday, travellers bound for Hong Kong can also take advantage of the promotion and fly to the city for only RM419 one-way.

Travellers can enjoy these low air fares for travel from Feb 22 to Dec 15 on domestic routes and from Feb 22 to Dec 17 for international sectors.

Other low-fare destinations in-clude RM419 to China and RM469 to the Indian sub-continent.

Malaysia Airlines senior general manager (network and revenue management) Dr Amin Khan said: “Our Everyday Low Fares promotion is a fantastic opportunity to grab some bargain air fares.

“Malaysia Airlines is allowing more people to travel more often, but you will need to grab the tickets quick to avoid disappointment.”

"Flash" Your Enrich Blue & Silver Card And Get Extra Baggage Allowance, Says MAS
January 13, 2010 17:44 PM

KUALA LUMPUR, Jan 13 (Bernama) -- Frequent flyers of Malaysia Airlines (MAS) just need to show their Enrich Blue or Enrich Silver card to get 5kg or 10kg extra baggage allowance, respectively, this month.

The New Year offer was available to passengers travelling from now until Jan 31 to all MAS-operated destinations, said the national carrier in a statement. The offer was in conjunction with MAS' frequent flyers programme and Enrich's 10th anniversary, said its Corporate Marketing and Loyalty Programme General Manager Raja Datuk Nordiana Zainal Shah in the statement. Enrich membership is 1.6 million spread over 240 countries, with the highest in Malaysia at about 60 per cent, followed by Australia, the United Kingdom, the United States and Singapore.

However, Enrich Gold and Enrich Platinum baggage entitlements remain as per current privilege at 1.5 times of ticket entitlement for Gold and two times for Platinum, it added.

-- BERNAMA

MAS unit, SpiceJet to sign maintenance pact
Published: 2010/01/15

MAS Aerospace Engineering, a unit of Malaysian Airline System Bhd, will sign a maintenance support agreement with SpiceJet, an Indian lo-cost carrier, for its fleet of Boeing 737 New Generation series aircraft. - Bloomberg

AirAsia's maiden Kota Kinabalu-Taipei flight
Published: 2010/01/15

Low-cost airline AirAsia today celebrated its maiden flight to Kota Kinabalu (KK) from Taipei.

In a statement today, AirAsia said the new international destination would establish KK as its second largest hub in Malaysia with a total of seven international and nine domestic destinations.

"The route, which was opened for booking in November 2009, received excellent response. Over 32,000 seats were sold to date," it said.

Chairman of AirAsia Datuk Aziz Bakar said besides Taipei, KK would also connect guests to Brunei, Jakarta, Shenzhen, Macau, Clark and Singapore.

"To date, we have carried 129,000 guests both inbound and outbound from Taipei since April 2009 and the numbers are still growing," he said. -- Bernama

From flickr

http://farm3.static.flickr.com/2625/4222490490_ac3bcd093b_b.jpg

Malaysian dishes: Satay / Nasi Lemak

http://farm5.static.flickr.com/4048/4201636979_c02ddc2d5a.jpg http://farm3.static.flickr.com/2703/4201634475_ea7f9529af.jpg

http://farm5.static.flickr.com/4044/4201635915_8cdbbf2ec4.jpg http://farm3.static.flickr.com/2804/4197668578_55bb25f2c9.jpg http://farm3.static.flickr.com/2746/4196915337_febd56b0f9.jpg

AirAsia X Undertakes Seat Refurbishment Exercise
January 19, 2010 14:50 PM

SEPANG, Jan 19 (Bernama) -- AirAsia X is undertaking a major refurbishment exercise to upgrade all economy and business class seats on board its long-haul aircraft.

Chief Executive Officer Azran Osman-Rani said the first aircraft will be refurbished by Feb 1, 2010.

The entire exercise, to be done in stages, would be completed by June and provide a more valueble experience for our customers, he said.

Besides the economy seats being refurbished to a more comfortable level, business class travellers will also enjoy a pleasurable journey.

" AirAsia X will have lie flat beds for business class passengers, first of its kind for long-haul aircraft to replace XL seats. There will be 12 lie flat beds in A330 and 18 lie flat beds in A340.

"After taking into consideration complaints (on leg room), we believe the new seats will be more comfortable and relaxing to our customers," he added.

Azran told this to reporters after launching ExxonMobil's "Discover Travel @ Asia" promotion in conjuction with Esso and Mobil's latest Smiles Driver Rewards promotion here Tuesday.

Meanwhile, Esso Malaysia's Retail and Business Director Faridah Ali said the latest Smiles promotion with AirAsia, which began in December, was a way of rewarding and thanking some 1.5 million Smiles members for their loyalty.

The first batch of eight winners awarded today will fly to Abu Dhabi with RM10,000 cash. The three-month promotion ends in February.

"For the final two months, there are 16 grand prizes up for grabs which includes trips to Ho Chi Minh and Hangzhou with RM10,000 cash," she said.

Smiles members who own an AirAsia co-branded credit card will automatically be entitled to five entries when they charge their fuel purchases to the card.

Esso Malaysia Bhd, ExxonMobil Malaysia Sdn Bhd and ExxonMobil Borneo Sdn Bhd operate 560 service stations throughout Malaysia.

-- BERNAMA

MAS unit wins Indian carrier jobs
Tuesday January 19, 2010

http://biz.thestar.com.my/archives/2010/1/19/business/b_pg03SpiceJet.jpg

MAS general manager, Engineering/maintenance, Tan Wee Liam exchanging
documents with SpiceJet vice-president, engineering/maintenance, Robert
Bryant. With them are (from left) Mohd Roslan Ismail, SpiceJet CEO Sanjay
Aggarwal and chief administrative officer G.P. Gupta.

It will involve servicing the Indian carrier’s aircraft

SUBANG: Malaysia Airlines (MAS) unit MAS Aerospace Engineering (MAE) has won a new client in India’s low-cost carrier, SpiceJet, to service the latter’s airline fleet out of Subang initially and later in Hyderabad for a three-year period beginning this year.

SpiceJet controls 13% of the vast Indian air travel market and the first of its 19 B737 next-generation series aircraft is already in Subang. The rest will follow suit and even the 12 aircraft SpiceJet will take delivery over the next two years will be serviced by MAE.

A total 41 job orders are under this contract and it involves “C” and “D” checks. Aircraft “C” checks means the entire aircraft goes for a series of checks, inspection and overhaul works that take six days.

The “D” checks involve heavy checks of modifications and overhaul and the aircraft is normally at the hangar for a month.

Both parties signed the agreement yesterday but declined to reveal the contract value. It is learnt that every check can cost US$100,000 to US$300,000 depending on the job scope, so the total contract value could range from US$4mil to US$12mil.

MAE managing director Mohd Roslan Ismail said MAE had serviced about 100 clients’ aircraft over the years and this was its first win this year.

“It is also the first for our joint venture in Hyderabad. The MAS/GMR facilities will be operational by the first quarter of next year,’’ he said after the agreement signing.

MAS had last year agreed with India’s GMR Group to form a 50:50 joint venture, MAS-GMR Aerospace Engineering Co Ltd, to offer air-frame maintenance, repair and overhaul (MRO) services in India.

Estimated to cost US$60mil, the facilities on a 250-acre site in Hyderabad will have four hangars that can service 60 to 80 aircraft annually. The JV will cater for both narrow and wide-bodied aircraft checks. SpiceJet’s aircraft will be serviced from that facility.

SpiceJet chief executive officer Sanjay Aggarwal said this was the first time the airline had sought a structured long-term maintenance support, as previously its aircraft maintenance was done “as when we could get a slot”.

The carrier undertook a rigorous process to identify the operator that could not just give it value for money, but quality and favourable turnaround time.

“We identified 13 MRO operators, shortlisted them to five, then three and to one. We found that MAE provided all the three – quality, turnaround time and competitive cost. Even though it is a three-year relationship, we hope it will last (for a long time),’’ Aggarwal said.

Given the “limited capabilities available’’ for MRO services in India, MAE-GMR is already positioning itself to offer MRO services to the many airlines in India.

Roslan said: “We are in advanced talks with some Indian carriers, including Jet Airways, and hope to get more customers from India and other countries.’’

http://xtive.utusan.com.my/tools/utusan/update_gambar/MoUMAS.jpg

ROBERT Bryan (tiga dari kanan) bertukar dokumen dengan Tan Wee Liam sambil diperhatikan oleh Mohd. Roslan Ismail dan Sanjay Aggarwal pada majlis menandatangani memorandum persefahaman di antara Syarikat Penerbangan Malaysia MAS dan SpiceJet di Kelana Jaya, 18 Januari. - Utusan/NOORADZRENE MOHD. NOOR

AirAsia introduces self-check in
Published: 2010/01/20

Low cost carrier, AirAsia, is now offering a convenient self check-in service at several airports in Malaysia and regional countries.

The service is available at the Low Cost carrier Terminal (LCCT)-Kuala Lumpur, Johor Bahru, Kota Kinabalu, Kuching, Jakarta, Bali, Bangkok, Phuket, Chiang Mai and Hat Yai.

For added comfort and convenience, customers can also utilise its web-based check-in service, the carrier said in a statement today.

AirAsia said the initiative was part of its on-going mission of using the information, communication and technology (ICT) forefront to exploit technology and practice cost efficiency.

By adopting a cost effective service and liberating the traveling experience for customers, the innovative service will also avoid airport congestion, long queues and reduce waiting time at no extra cost, it said.

According to AirAsia, customers can still opt to check-in the conventional way, at its airport counters.

"We have invested quite a significant amount to develop our ICT facilities in order to keep-up with global standards.

"Now, we have equipped ourselves to fully exploit the benefits of it and achieve a competitive excellence in the market," AirAsia Bhd's group chief executive officer, Datuk Seri Tony Fernandes said. -- BERNAMA

AirAsia eyes 40pc rise in cargo revenue
Published: 2010/01/21

Low-cost carrier AirAsia has target to increase cargo revenue by more than 40 per cent over last year's performance.

In a statement today, AirAsia said its cargo segment would be a major area of growth for 2010, with South Asia being of particular interest to the airline.

As demand for cargo picks up, AirAsia said it was aggressively growing its markets and utilising Special Prorate Agreements (SPA) with various airlines to achieve the 2010 target.

It is also reaching out to markets beyond current routes to more cities in South Asia, East Asia, the Middle East, Africa and Europe, through other airlines via the SPA agreements.

AirAsia is also tying up with more cargo agents and large import-export firms in the markets it flies to.

"We've been signing up more key players in the cargo industry.
Our competitive prices allow us to also increase business with individual senders," AirAsias regional head of cargo, Sathis Manoharen said.

In line with the growth, he said domestic cargo operations are also expected to receive a boost, especially from the seafood industry

This industry is among AirAsia's significant cargo revenue sources. -- Bernama

MAS-GMR Aerospace Set To Expand In India's MRO Market
January 22, 2010 21:27 PM From Shanti Ayadurai

CHENNAI, Jan 22 (Bernama) -- MAS-GMR Aerospace Engineering Company Ltd (MAG) which inked an exclusive 10-year MRO (Maintenance, Repair and Overhaul) deal with Jet Airways Friday, is set for further expansion in the growing Indian MRO market.

The deal between MAG, a 50-50 joint venture between Malaysia Airlines' wholly owned subsidiary, MAS Aerospace Engineering (MAE), and GMR Hyderabad International Airport Ltd (GHIAL), follows another deal signed earlier this week by MAG with SpiceJet for the maintenance of the latter's fleet of Boeing 737 New Generation series aircraft.

"Our aim is to position MAG as a leading MRO player.

"With a limited supply of airframe MRO in India coupled with India's growing aircraft market, a facility operated by one of Asia Pacific's leading MROs would complement India's aviation sector," said MAE Managing Director Mohd Raslan Ismail.

The Indian MRO market has been projected to grow to US$1.2 billion in worth by 2017 from US440 million in 2007.

"The current India-wide fleet is estimated at 410 aircraft and this number is expected to grow double digit in the next few years. This will make India a market with huge MRO opportunities," he told Malaysian journalists during a briefing here.

Asked on the revenue expected from Jet Airways, Raslan said it would depend on the aircraft sent in for MRO. Jet Airways currently operates a fleet 89 aircraft while its subsidiary JetLite, a no-frills airline, operates 23 aircraft.

MAG is also already speaking to several other airlines for MRO deals, said GMR's Aviation & Aerospace Business Chief Executive Officer D. Ravindran.

While MAG's current MRO facility is in Subang, Malaysia, the new MAG facility to be built in Hyderabad, Andhra Pradesh is expected to take off operations in 2011.

The groundbreaking ceremony for the facility which will involve an initial investment of about US$65 million is expected to be held sometime next month, Ravindran said.

With its strategic location in central India, the facility will bring substantial savings for Indian airline companies seeking MRO services, he said.

The signing was witnessed by Prime Minister Datuk Seri Najib Tun Razak, currently in India on a five-day official visit.

Najib, who made history being the first Malaysian Prime Minister to officially visit this South Indian capital city of Tamil Nadu, also witnessed the signing of two other memorandum of understandings, namely between Malaysia Airports Consultancy Services and GMR Hyderabad International Airport Ltd, and between Asia Pacific Flight Training Sdn Bhd and MAG.

The MoU with the flight training school will see the partners setting up a flight school in Hyderabad.

-- BERNAMA

AirAsia, Unicef to raise RM438m for Haiti
Published: 2010/01/23

AirAsia has joined hands with the United Nations Children's Fund (Unicef) in the effort to raise RM438 million (US$128 million) for children and families in earthquake-hit Haiti.

Its group chief executive officer Datuk Seri Tony Fernandes said AirAsia had established a dedicated link on its website to allow guests to contribute to the fund called Haiti Earthquake Children's Appeal 2010.

"The AirAsia family wanted to help when we first heard about the tragedy in Haiti. When Unicef asked us to join them, we readily agreed. Our website receives about 20 million visitors every month and we carried an estimated of 25 million guests last year," he said in a statement today.

Guests can contribute to the fund by visiting www.airasia.com and click on the link to make donations. -- Bernama

MAS modernising fleet
By LEONG HUNG YEE 23 Jan 2010

http://biz.thestar.com.my/archives/2010/1/23/business/b_17delivery.jpg

MALAYSIA Airlines (MAS) is embarking on a fleet modernisation and capacity expansion plan to stay ahead of its competitors.

Towards this end, its senior general manager (network and revenue management) Dr Amin Khan says MAS will dispose of some old aircraft and replace them with modern planes.
MAS plans to keep some of its B777 planes.

“We’re spending a lot of money to modernise so we can stay competitive, and at the same time we want growth,” Amin says, adding that MAS is realigning its products with market demand.

MAS currently leases all its aircraft from Pernerbangan Malaysia Bhd (PMB) and will eventually return the aircraft to the latter when the lease expires.

As it stands now, MAS is leasing 81 aircraft. Under its fleet renewal exercise, MAS could potentially own an additional 56 aircraft by 2016 excluding options for 20 B737-800 and 10 A330-300. The aircraft deliveries are scheduled from this year up to 2016.

The rationale is quite clear. Amin points out that leases are generally more expensive than on-balance sheet financing. “We aim to own a third of our fleet to lower our costs. It’s definitely cheaper to own the aircraft than to lease it,” he adds, elaborating that the airline could enjoy cost savings in the “single digit”.

MAS chief executive officer/managing director Tengku Datuk Azmil Zahruddin had earlier said that when the airline starts taking delivery of the A330-300s in 2011, there should be an increase in revenue, besides cost savings of RM649mil from financial years 2010 to 2012. When all the A330s are delivered by 2015, MAS expects additional annual savings of RM300mil, he was reported to have said.

Dr Amin Khan says MAS is realigning its products with market demand.

The fleet modernisation will likely see enhanced product offerings by MAS, arresting previous concerns of an old operating fleet. This means passengers can look forward to better cabins and newer in-flight entertaiment.

“As we move to new aircraft with newer technology, our operating costs will be much lower as it will burn less fuel and is more environment friendly,” he says. And it will cost less to maintain as well. “Just like your brand new car, the maintenance cost will be significantly lower.”

“From the customers’ perspective, they can smell the leather, just like a brand new car. And in terms of reliability it will be better,” he says, adding that MAS can spend more hours on the new aircraft in a day to fly to new destinations or increase flight frequency.

The airline will also be able to minimise the number of fleet type in order to simplify its fleet. Amin says there are more than three engine manufacturers and the carrier is looking at one model for norrowbody, one core family for widebody and one ultra large widebody for selected markets.

Amin says the new A330 will be better than the existing A330s as they have a longer flying range.

“The B737 will be struggling beyond 3.5 hours. We can go to Hong Kong but it will be struggling beyond 3.5 hours. With the aircraft replacement, we can fly on a longer range as well as increased frequency. The new A330-300 can service Asia and Australia,” he says.

Although MAS has plans to return the aircraft to PMB when the lease expires, Amin says, MAS plans to retain some of its B777. “We’re keeping some of the B777 as we move forward. What will happen is that we aim to own a third of the aircraft. Therefore we will have high assets in our balance sheet,” he adds.

The national carrier will be utilising the B737-800 to strengthen its domestic and regional routes; the A330-300 will serve Australia, south China, China, north Asia and Middle East while the A380 will be used to ply high density routes such as London and Sydney.

MAS will receive three of its B737-800 this year and the next. It will also receive five A330-300 and another five A380 in 2011.

“The B747 is a big aircraft but we’re increasing it to an even bigger aircraft, A380 which will come in the second half of next year. We’ve bought six of them (A380) and our strategy is to fly direct from point to point and work with our partners for the hub and spoke,” says Amin.

Last year, the airline entered into a memorandum of understanding with Airbus for the purchase of 15 Airbus A330-300 wide-body aircraft with an option for 10 more. The 25 aircraft will cost a total of US$5bil at list prices.

By 2015, MAS fleet will grow to a total of 108 including 20 options for the B737-800 and 10 options for A330-300, representing more than 30% growth from the current 81.

The national carrier will have the youngest fleet amongst its competitors in the region five years from now.

“The average age of the aircraft will be about five years and it will improve our product offering and competitive position in the industry,” Amin says.

MAS’ fleet was about 11.6 years in FY08 and is expected to increase to 11.7 years in FY11. With the delivery of new aircraft, the average age will be lower to 5.2 years in FY15.

“We’re literally reducing our fleet age by 50%,” Amin says.
Setting new routes

MALAYSIA Airlines’ major fleet modernisation plan will enable the airline to grow its network significantly. On the back of this, the airline expects to strengthen and grow its Asean network, south and north Asia, Middle East and China.

In addition, MAS senior general manager (network and revenue management) Dr Amin Khan said the airline “will restructure flights to the US while holding on to what we have in Europe and fix it.”

Locally, the airline is looking at increasing its weekly capacity into Kota Kinabalu, Kuching and Penang. It will also improve services via east Malaysia to regional destinations.

On its Asean routes, Amin says MAS will announce new destinations probably by end of first quarter. He says it will increase frequency to Indonesia, Vietnam, Myanmar, Thailand and the Philippines.

MAS will also announce three new destinations to Middle East and new destinations to South Asia while increasing its frequency to Southern China.

Amin says the carrier is currently exploring new destinations in Japan. “We will introduce new direct service to Brisbane and announce a new destination to New Zealand soon,” he adds.

“As for London, we’re unlikely to increase frequency to London due to the difficulty to get a slot, but we will increase capacity by using a bigger aircraft, the A380,” he says when asked on its plan in Europe.

“The way we can grow this route is to get a bigger aircraft and that’s why we’re getting the A380. The cost per seat is much cheaper as well,”.

MAS currently flies twice a day to London with about 80% load factor. With the delivery of A380 next year, it is expected to utilise four A380 for KL-London route while the remaining A380s is likely to fly KL-Sydney route.

Commenting on the configuration of its A380s, Amin says, MAS will introduce a “super-economy” class on top of its current, first, business and economy. He says the new class will have more leg room amongst others.

Amin says the A380s, which is still being configured, is expected to fly 510 passengers while its current B747 carries 359 passengers.

“In short, we will get more coverage with better operating cost advantage with the new fleet. We modernised our fleet for simple reason of growth,” he continues.

MAS' A380s will offer premium economy
Published: 24/01/2010 -Business Traveller

Recently we reported how Hong Kong’s Cathay Pacific was considering a premium economy class (see online news January 12).

Now we can reveal that Malaysia Airlines (MAS) has already decided to go down this route.

Flag-carrier MAS will begin taking delivery of the first of six A380 super jumbos starting in the second half of 2011. These aircraft will be fitted with a premium economy cabin.

The news was broken by Dr Armin Khan, MAS’ senior GM for network and revenue management, in an interview with The Star (Malaysia’s leading English language newspaper).

Says Dr Khan, “We expect our A380s will be configured for 510 passengers as against 359 for our existing B747s. MAS will be introducing a ‘super economy’ class on the top of the current first, business and economy classes. The new class will have more leg room amongst other features.”

It seems likely that MAS will emulate Australia’s Qantas and install premium economy at the rear of the A380’s upper deck.

MAS says it will utilise its A380s on the kangaroo route linking London Heathrow with Sydney via Kuala Lumpur. At present MAS flies twice daily to London and it will use the A380s to boost capacity at Heathrow instead of seeking a third daily service.

Introducing premium economy is a smart move for MAS, as kangaroo route rival SIA is located only 200 miles away across the Causeway in Singapore.

SIA does not offer a premium economy cabin (and continually tells us it has no plans to introduce one) so MAS can go after SIA’s full fare economy passengers.

AirAsia X undertakes major seat refurbishment exercise
20th January, 2010

http://www.newsabahtimes.com.my/mediafiles/picture/7710/2001-AirAsia_X.jpg?1263963971

Azran (background left) and Esso Malaysia’s Retail and Business Director
Faridah Ali in a group photo with winners of “Discover Asia With Smiles”
Programme Partnership” programme held at the LCCT in Sepang.

SEPANG: AirAsia X is undertaking a major refurbishment exercise to upgrade all economy and business class seats on board its long-haul aircraft.

Chief Executive Officer Azran Osman-Rani said the first aircraft will be refurbished by Feb 1, 2010.

The entire exercise, to be done in stages, would be completed by June and provide a more valuable experience for our customers, he said.

Besides the economy seats being refurbished to a more comfortable level, business class travellers will also enjoy a pleasurable journey.

“AirAsia X will have lie flat beds for business class passengers, first of its kind for long-haul aircraft to replace XL seats. There will be 12 lie flat beds in A330 and 18 lie flat beds in A340.

“After taking into consideration complaints (on leg room), we believe the new seats will be more comfortable and relaxing to our customers,” he added.

Azran told this to reporters after launching ExxonMobil’s “Discover Travel @ Asia” promotion in conjuction with Esso and Mobil’s latest Smiles Driver Rewards promotion here yesterday.

MAS investors approve RM2.7b rights issue
Published: 2010/01/25

Malaysia Airlines (MAS) has received shareholders' approval for a proposed rights issue to raise an expected RM2.67 billion to fund its future fleet growth and expansion, chairman Tan Sri Dr Munir Majid said today.

He said the shareholders also approved the proposed acquisition of six A380s and proposed Boeing aircraft bundling comprising four aircraft from Penerbangan Malaysia Bhd for about RM3.19 billion.

The rights issue and aircraft acquisition are expected to be completed by the first quarter of this year, he told reporters after the company's extraordinary general meeting in Subang.

The rights shares will be offered to shareholders on the basis of one rights share for every one share at a date to be announced later.

At RM1.60 each, the rights shares are priced at a 32.1 per cent discount to the theoretical ex-rights price of about RM2.36 based on a five-day volume weighted average market price up to and including Dec 21, 2009.

Munir said the rights issue would give MAS a strong and sustained platform for growth as it transformed from a 100 per cent leased fleet to owning at least a third of its aircraft.

"Leasing provides flexibility but imposes additional costs.

Typically, airlines do not need to have management flexibility for more than two thirds of their fleet. With the new strategy of owning and leasing our aircraft, we will be able to improve our cost structure," he said.

MAS' new fleet will comprise up to 55 B737-800, 25 A330-300 and six A380s. It will start receiving its new aircraft this year with the delivery of three B737-800s.

By 2016, all the aircraft ordered will be in and MAS expects to have one of the youngest, most fuel-efficient and environmentally friendly fleet in Asia.

On whether MAS will need other rights issues in the next two years, managing director and chief executive officer Tengku Datuk Azmil Zahruddin said it might consider other fund-raising measures for certain business transactions.

"Based on our projection of all aircraft ordered, we do not need another rights issue either this year or next year. We will cover that purchase with this rights issue," he said.

"But we can''t tell, the industry is very dynamic. Maybe there will be some other transactions that may require us to go back to shareholders. So, we cannot rule out further fund raising for other purposes," he added.

The possible transactions as mentioned regularly was consolidation, Tengku Azmail said, adding that however at this point of time, MAS did not have any plan. -- Bernama

By Ghim-Lay Yeo - Flightglobal.com (http://www.flightglobal.com/articles/2010/01/26/337607/airasia-outlines-priorities-for-future-expansion.html)- 26 Jan 10

Malaysia's AirAsia expects to receive another 16 aircraft this year as it seeks to grow its network. The 16 aircraft will be mostly Airbus A320s, says AirAsia's regional head of commercial Kathleen Tan. The rest will be Airbus A330s for long-haul operator AirAsia X, she adds. "We will be a very high-growth airline this year. Last year, we launched 35 new routes," says Tan.

The carrier is looking at launching flights to link its other hubs in the region instead of just flights from Kuala Lumpur, she adds. "We have four hubs in Indonesia now and we have also built up Penang and Phuket. It's not just about Kuala Lumpur," says Tan.

AirAsia X previously disclosed it was interested in starting flights to Sydney, but Tan says it is unlikely to happen soon. "There's been some protectionism going on, some airlines are lobbying against it. But we are very patient," she says, adding that the idea is still on the table. The carrier, meanwhile, had secured rights to fly to Paris' Orly airport, but Tan says Paris is "not a priority for now". "Our focus is India and Southeast Asia, and we will also focus on adding frequencies on existing routes," she says.

By Ghim-Lay Yeo - Flightglobal.com (http://www.flightglobal.com/articles/2010/01/26/337608/airasia-firms-plans-for-launch-of-more-services-to-india.html) - 26 Jan 10

Malaysia's AirAsia group plans to start six new routes to India in this year's first quarter.

The six new routes are: Penang-Chennai from 28 April, Kuala Lumpur-Chennai from 17 May, Kuala Lumpur-Bangalore from 20 May, Kuala Lumpur-Hyderabad from 20 July, Kuala Lumpur-Mumbai from 6 May and Kuala Lumpur-New Delhi from 4 August. All six routes will be operated daily, except Kuala Lumpur-Mumbai, which will be four times a week. AirAsia will operate Airbus A320s for Chennai, Bangalore and Hyderabad; while its long-haul operator AirAsia X will launch the Mumbai and New Delhi services with Airbus A330s.

AirAsia group, which already flies to four Indian cities, will operate 148 weekly flights to India and aims to carry two million passengers to India and back this year, says group CEO Tony Fernandes. "AirAsia has well-arrived in the Indian market to change the very definition of low-cost airlines as the India market is booming," he adds.

The airline already operates to Kolkata, Kochi, Trichy and Trivandrum. "We've worked to cover China with our network over the last three years, and now that we've done that, it's time to focus on India, which is a huge market as well," says AirAsia's regional head of commercial Kathleen Tan. "There is a lot of demand for low-cost fares from India. Before this, many Indians were already flying to Bangkok and Indonesia to connect to our routes," she adds. AirAsia has associate carriers in Thailand and Indonesia.
The carrier hopes that travellers will fly to Kuala Lumpur and from there, connect to AirAsia's over 130 routes, says Tan.

Going forward, AirAsia is studying launching flights from Amritsar to Bangkok, she adds."We are in the process of getting feedback to see what else people want," she says.

Despite the growing Indian aviation market and reports of Indian low-cost carrier SpiceJet's plans to start international operations, Tan says there is room for competition. "India is such a big market and competition is healthy. We have such a big network, we can cross-promote our flights to India in China and other countries that we already serve," she adds.

'MAS needs to control cost, improve revenue'
Published: 2010/01/26

Malaysia Airlines (MAS) still needs to control cost and find ways to improve its revenue, says MIDF Research.

At the Extraordinary General meeting (EGM) yesterday, MAS shareholders voted to proceed with the 1:1 rights issue announced recently.

Shareholders also approved the purchase six undelivered Airbus A380, two Boeing B777 and two Boeing B747s, for a total consideration of about RM3.19 billion.

With the above purchases, MIDF Research said, MAS will effectively revert from a "virtual" airline, to a version of its former self (pre-widespread asset unbundling Days).

MIDF Research also stated that the MAS management expects to gain operational efficiencies and reduce lease payments to Penerbagan Malaysia Berhad (PMB).

However, it added that any lasting gain in economic competitiveness, remains to be seen.

MIDF Research also explained that it is still uncertain as to how MAS will be reporting in terms of its operation in the fourth quarter 2009 (4Q09).

For 3Q09, MAS had improved operationally with load factors up to 76.7 per cent and an increase in revenue by 16 per cent.

With an improvement in economic conditions in 4Q09, it can be expected that this will translate to a better result,MIDF Research noted. -- BERNAMA

AirAsia Targets Two Million Passenger To India By 2011
Jan 26

KUALA LUMPUR, Jan 26 (Bernama) -- Budget carrier AirAsia, which will start services to five more Indian cities starting April, has targeted two million passengers to India by 2011, its group chief executive officer Datuk Seri Tony Fernandes on Tuesday.

"We are proud to position Kuala Lumpur as the gateway to India and at the same time it is India's gateway to Asean," Fernandes said after the launch of the new services by Transport Minister Datuk Seri Ong Tee Keat.

The airline will start daily flights to New Delhi, Mumbai, Bangalore, Hyderabad and Chennai in the second and third quarters of this year.

It will fly from Penang to Chennai on April 28 and from Kuala Lumpur to Mumbai (May 6), Chennai (May 17), Bangalore (May 20), Hyderabad (July 20) and New Delhi (August 4).

Ong said with the new routes, Air Asia and and its long-haul carrier Air Asia X would be able to leverage on the fast economic growth of India.

"I hope that AirAsia and AirAsia X will continue to go forward and open up even more destinations in India and across the world to give Malaysians the oppportunity to visit new places and more importantly providing Malaysia's companies and businesses an avenue to go into new markets and explore new economic opportunities," he said.

The flights to India will become more important as Malaysia has longstanding relations to India that are expected to improve further after the recent visit by Prime Minister Datuk Seri Najib Tun Razak to India, Ong said.

"Both Malaysia and India have agreed for the contentious problem of visas to be reviewed thoroughly in order not to be an impediment to bona fide tourists," he said, adding that in 2009, the total number of tourists from India to Malaysia was 589,838.

Ong said AirAsia had carried 237,367 passengers to the four India cities of Trichy, Kochi, Trivandrum and Kolkata, the first cities it flew to.

"In this regard, the government will continue to facilitate the industry in its efforts to achieve its vision," he said.

Sales for the new routes have started from as low as RM199 for bookings from Jan 27 to 31 to travel between April 28 and Oct 30 this year.

-- BERNAMA

MAS’ shareholders approve RM2.67b rights issue
26th January, 2010

SUBANG: Malaysia Airlines (MAS) has received shareholders’ approval for a proposed rights issue to raise an expected RM2.67 billion to fund its future fleet growth and expansion, chairman Tan Sri Dr Munir Majid said yesterday.

He said the shareholders also approved the proposed acquisition of six A380s and proposed Boeing aircraft bundling comprising four aircraft from Penerbangan Malaysia Bhd for about RM3.19 billion.

The rights issue and aircraft acquisition are expected to be completed by the first quarter of this year, he told reporters after the company’s extraordinary general meeting here.

The rights shares will be offered to shareholders on the basis of one rights share for every one share at a date to be announced later.

At RM1.60 each, the rights shares are priced at a 32.1 per cent discount to the theoretical ex-rights price of about RM2.36 based on a five-day volume weighted average market price up to and including Dec 21, 2009.

Munir said the rights issue would give MAS a strong and sustained platform for growth as it transformed from a 100 per cent leased fleet to owning at least a third of its aircraft.

“Leasing provides flexibility but imposes additional costs. Typically, airlines do not need to have management flexibility for more than two thirds of their fleet. With the new strategy of owning and leasing our aircraft, we will be able to improve our cost structure,” he said.

MAS’ new fleet will comprise up to 55 B737-800, 25 A330-300 and six A380s. It will start receiving its new aircraft this year with the delivery of three B737-800s.

By 2016, all the aircraft ordered will be in and MAS expects to have one of the youngest, most fuel-efficient and environmentally friendly fleet in Asia.

On whether MAS will need other rights issues in the next two years, managing director and chief executive officer Tengku Datuk Azmil Zahruddin said it might consider other fund-raising measures for certain business transactions.

“Based on our projection of all aircraft ordered, we do not need another rights issue either this year or next year. We will cover that purchase with this rights issue,” he said.

“But we can’t tell, the industry is very dynamic. Maybe there will be some other transactions that may require us to go back to shareholders. So, we cannot rule out further fund raising for other purposes,” he added.

The possible transactions as mentioned regularly was consolidation, Tengku Azmail said, adding that however at this point of time, MAS did not have any plan.

MAS open to consolidation
Written by Joy Lee Tuesday, 26 January 2010 11:09

KUALA LUMPUR: Malaysian Airline System Bhd (MAS) is open to the possibility of consolidation, said its managing director and CEO Tengku Datuk Azmil Zahruddin Raja Abdul Aziz, as it is an inevitable process in the industry.

“We do not have one that we are planning at the moment but I cannot rule that out. Having said that, consolidation is important. These things are very dynamic. Consolidation is something that the airline industry has to go through,” he told reporters after the company’s EGM yesterday.

Tengku Azmil said consolidation in the industry was not done out of growth aspirations but rather out of necessity.

He noted that the national carrier’s proposed purchase of six A380s and four Boeings from Penerbangan Malaysia Bhd (PMB) for RM3.19 billion, which was approved by shareholders at the EGM, would provide MAS with some organic growth.

“We had no jets that came in last year. We only have jets coming in at the end of this year and we have only a lot of deliveries coming in for the next year and the year after that.

“So, organic growth has a right time and at the right price. However, consolidation is something that is inevitable in the industry. We don’t do it for growth, we do it because it is necessary,” he said.

The airline industry is going through its worst crisis with no fewer than 14 carriers declared bankrupt in 2009 alone. This year, Japan Airlines, the biggest airline in Asia in terms of fleet, has been declared bankrupt. US-based Delta Air is said to be likely to step in and help with the restructuring of JAL.

In Malaysia, MAS went into the red last year while AirAsia Bhd has remained profitable. MAS is generally owned by the government with Khazanah Nasional Bhd having a majority stake while AirAsia’s major shareholder is Tune Air Sdn Bhd.

Last year, MAS held high-level talks with Qantas for a merger but it did not materialise. As for AirAsia, it recently tied up with JetStar, the low-cost carrier of Qantas, to procure spare parts and even planes together, in an effort that could save the two carriers up to A$300 million (RM922.75 million) a year.

At the EGM, shareholders also approved MAS’ proposed rights issue to raise some RM2.67 billion to fund its fleet expansion.

The acquisition of the six A380s from PMB is part of MAS’ fleet renewal programme. In addition, the flag-carrier has placed orders for up to 55 narrow-body B737-800s and 25 A330-300s, the delivery of which will begin this year.

The rights shares are priced at RM1.60 apiece, or a 32% discount to the theoretical ex-rights price of about RM2.36 based on the five-day volume-weighted average market price up to and including Dec 21, 2009.

The rights shares will be offered to shareholders on the basis of one rights share for one share held. The counter closed unchanged at RM2.75 yesterday, with 292,500 shares done.

“There is strong shareholder support for the proposed acquisitions and for the proposed rights issue. We have taken into account all the orders that we have made, and according to our projections, we do not need another rights issue this year or next year and so on. According to our projections, that should cover our funding,” Tengku Azmil said.

The first of the Boeing aircraft is scheduled for delivery early next year while the first Airbus will arrive in August 2011.

However, Tengku Azmil said MAS did not rule out another fundraising for “other purposes” although it had no plans for such an exercise at present.

“If we were to participate in the consolidation, in some cases, we may need to go to shareholders (to raise funds). So, in those circumstances, we may need to. But we don’t have any at this point in time.

“The industry is a very dynamic industry. Some other transactions may require us to go back to the shareholders. If those things happen, then we might have to do so. But with regard to these aircraft deliveries, we do not expect to take another (fund-raising exercise),” he said.

The amount to be raised from the rights issue is enough to meet MAS’ immediate aircraft financing needs. “But again, it is a very dynamic industry. If anything interesting happens, then we may need funds for some other stuff, we don’t know,” he said.

The new fleet will put MAS on a good platform to service key growth areas in Asia. Tengku Azmil said while markets like Europe and US were fairly mature with fairly low growth rates, the high growth rates were in Asia.

“The A330 and the 737-800 will give us very good aircraft going into domestic, Asean, India, China, Middle East, Australia, Japan, Korea and so on.

“Those are what we see as the engines of global economic growth and we are very excited and lucky because we are in the middle of it. And these aircraft will give us an opportunity to take advantage of this growth as the global economy starts to recover,” he said.

MAS offers six more UK, Ireland destinations online
2010/01/31
NST Online (http://www.nst.com.my/Current_News/NST/articles/20100131182838/Article/index_html)

KUALA LUMPUR, Sun: Malaysia Airlines (MAS) is offering six more United Kingdom (UK) and Ireland destinations online where passengers arriving at or departing from Aberdeen, Belfast, Dublin, Edinburgh, Glasgow and Manchester can now book their flights at www.malaysiaairlines.com.

Malaysia Airlines senior general manager, Network and Revenue Management, Dr Amin Khan said MAS already served these routes through a code-share with British Midlands (Bmi) but previously, these tickets could only be purchased from ticketing offices or travel agents.

"Purchasing and flying are now seamless and hassle-free. We fly to London twice daily while Bmi offers many daily flights to these destinations.

"We will soon make available online all the European destinations that we are code sharing currently with Klm," he said in a statement here, today.

Dr Amin said this was also in line with the MAS hub-and-spoke strategy to improve feeder traffic into their trunk routes.

"We expect to generate more than RM10 million annually through the partnership with Bmi," he added.
He said MAS offered two daily flights from Kuala Lumpur to London, departing at 10.45am and 11.55pm.


Bmi connects to Glasgow 27 times weekly, Aberdeen 24 times, Dublin 21 times, Belfast 20 times, Edinburgh 19 times and Manchester 17 times weekly. -- BERNAMA

AirAsia aiming for Indonesia next
Wednesday, 27 January 2010

http://www.malaysianmirror.com/images/stories/FrontImages/air-asia.png

KUALA LUMPUR - After India, it’s hello Indonesia.

Fresh from announcing AirAsia’s foray to India yesterday, Tony Fernandes is now setting his sights on the sprawling Indonesian archipelago.

“ Indonesia has vast tourism potential,” said the budget carrier’s maverick boss.

“ There can always be a flight to Indonesian routes. The country has many natural and historical attractions.”

Think Bandung and Medan

Bali may be the main attraction but other Indonesian gems are waiting to be discovered.

“Bandung is catching up fast. So are Medan and Surabaya,” said Fernandes.

And just like India, there are more than economic reasons that tie Malaysia to Indonesia.

“AirAsia is just scratching the surface. There is a lot more to unearth.”

He said one of his goals is to have a direct flight from Medan to India and making the Sumatran city the hub for AirAsia in Indonesia.

“We are as much Indonesian as we are Malaysian.

Bullish

“ I am very bullish about the prospects for the Indonesian routes. It would be wonderful if we could dominate the Asian niche, especially now that we have flights to China and are set to fly to India.”

AirAsia yesterday announced that the Penang-Chennai route on April 28 would mark its entry into the Indian subcontinent.

This would be followed by the Kuala Lumpur-Chennai route from May 17. It will also fly to Bangalore and Mumbai in May, and to Hyderabad in July and Delhi in August

Fernandes said he has set a target of two million passengers annually for the India market.

The carrier has waethered the worst of the global economic storm and its outlook is brighter from hereon, he said.

“In fact we are hiring more people when others are terminating their staff.”

Talking India

Indian authorities have allowed Air Asia to offer 10,402 seats per direction per week for the time being and Fernandes is confident the passenger volume would grow further.

“India is a burgeoning market just like China. It has one of the highest populations in Asia and is said to be one of the economic giants.

“The potential for growth is immense. Besides the economy, many Malaysians have a religious or family ties with India.”

By May 2008, the airline had flown 55 million cumulative passengers. AirAsia is currently the largest single customer for the Airbus A320[/QUOTE]

AirAsia X suspending Abu Dhabi service
Published: 2010/02/01

DUBAI: Long-haul budget airline AirAsia X is suspending
its Kuala Lumpur-Abu Dhabi service after Feb 21 for commercial reasons.

"We'll resume it later once we're able to have a more economical aircraft to service this route," the carrier said in response to queries about its Abu Dhabi flights posted on the Facebook social networking website.

The airline, nonetheless, said "we remain optimistic about the potential of Abu Dhabi".

"And we believe (that) with the right aircraft, the economic upside can be very promising, especially if we can pair up Abu Dhabi with another onroute destination," said AirAsia X.

The company deploys the four-engine Airbus A340 for the service which started in November 2009 with five flights per week.

Meanwhile, The National daily quoted a spokesman for Abu Dhabi Airports Company (Adac) as saying that AirAsia X had confirmed that from late February 2010, the airline would temporarily suspend its current service to Abu Dhabi.

"Adac looks forward to the airline recommencing its service to Abu Dhabi International Airport in the near future," he said.

Adac advised passengers to contact AirAsiaX directly for further details.

AirAsia X said affected passengers could request for a full refund of their flight tickets.

They could also opt to re-route to other AirAsia X destinations. - BERNAMA

are they planning to launch flights to Korea/Japan?

^^ They are planning for Japan on the 2nd half of 2010. 6 Japanese staff are currently under training in KL.

AirAsia X in MRO deal with Lufthansa unit
Published: 2010/02/03

AIRASIA X, the low-cost long-haul airline, today appointed Lufthansa Technik Philippines (LTP) as its maintenance, repair and overhaul (MRO) services provider.

Both parties signed an agreement on the sidelines of the Singapore Airshow at the Changi Exhibition Centre today for the LTP to provide MRO services for AirAsia X's fleet of eight Airbus aircraft comprising A330s and A340s for three years beginning next month.

The services will be provided at the LTP facility in Manila. The LTP is the subsidiary of Hamburg-based Lufthansa Technik AG, the world's largest MRO provider.

AirAsia X is an affiliate of short-haul carrier AirAsia, Asia's leading and largest low-cost airline.

"With the LTP on board to provide us expert MRO services, we are able to continue to provide safe flights as well as ensure that our aircraft are kept in an optimum condition," said AirAsia X Engineering Head Anaz Ahmad Tajuddin.

He said this would lead to cost-efficiency, thus enhancing AirAsia's ability to continue offering super low fares.

AirAsia X had previously worked with the LTP when its A340 underwent a 40-hour layover involving the main landing gear seal change at the LTP facility in Manila last month.

Bernama

AirAsia X confident of landing maiden profit
By Presenna Nambiar Published: 2010/02/04

http://www.btimes.com.my/articles/aap1/pix_topright

AirAsia X is upbeat about making a small profit for the year 2009 after being in operations for almost three years

AIRASIA X (5099) chief is optimistic that the airline will make a small profit for the year 2009.

"We tripled our business in the first nine months of 2009, a few routes saw 75 per cent growth despite numbers of other airlines shrinking, and we had a phenomenal December. We are happy we survived," Azran Osman-Rani said.

This will be the first time the airline will make a profit after being in operations for almost three years.

Azran said its numbers are yet to be audited, but the performance of the carrier in the first three quarters was promising.
"I believe that once the numbers are tallied, we will prove that we really do have the lowest unit cost per available seat kilometre at three US cents in 2008 and 2009 ..., even with fuel being what it was," Azran said.

Its low unit cost has been key to the airline's ability to survive, with all the challenges airlines have been facing in filling up planes.

The year 2009 is seen as a growth expansionary year, with AirAsia X growing its fleet size to eight planes and nine destinations by the end of the year.

On his plans for this year, Azran said one thing the turbulence in 2009 had taught him was to be flexible.

"We started the year (2009) with many plans, but what 2009 taught us was we really needed to be nimble and flexible. Which is why we now have not only plan A, but also B and C," he said.

The long-haul budget carrier is expecting another four A330s this year, bringing its fleet up to 12 by the end of 2010.

The deliveries for the planes are expected to start in June.

On financing for the four planes coming in this year, some proposals have been received and the airline is looking at a mix of financing possibilities, Azran said.

Besides export credit agency-backed financing, airlines can also finance aircraft purchases via conventional loans, and sale and leaseback of planes.

While Azran declined to reveal the amount of financing the airline would need, earlier reports had put the price of three planes at RM2.16 billion.

Recently, AirAsia X announced that it will be suspending its KL-Abu Dhabi route this month as it is realigning its fleet and adding another five destinations in India from May 2010.

^^ They are planning for Japan on the 2nd half of 2010. 6 Japanese staff are currently under training in KL. will this be for airasia X?

will this be for airasia X?
yes!
AirAsia X eyes Japan after Tokyo eases visa rules
Published: 2009/01/12

LONG-haul budget airline AirAsia X said it hopes to launch flights to at least three destinations in Japan by year-end after Tokyo relaxed its tough visa requirements for Malaysians.

"With our new A330-300 being delivered, I hope to mount flights by end of the year to at least three destination in Japan," chief executive officer Azran Osman-Rani said yesterday.

Azran said since October, Japanese officials had dropped the requirement for Malaysian travellers to show a confirmed ticket and accommodation before a visa was issued.

"We explained to the Japanese authorities how our ticket booking model works and they accepted it," he said.

Azran last July said AirAsia had to delay flying to Japan due to the tough visa rules. AirAsia was concerned over what would happen if a passenger bought a ticket online but was then refused a visa.

The three destinations are to the north (Hokkaido), Osaka and Fukuoka, he said. - AFP

AirAsia resumes flight to Tianjin
Published: 2010/02/06

BUDGET airline AirAsia Bhd resumed its Kuala Lumpur-Tianjin flight on Monday, following the temporary suspension of its services in November last year due to adverse weather conditions in north China.

The five times weekly flights use the A330, with two-class configuration of 28 premium seats and 355 economy seats.

AirAsia X Increases Frequency To Hangzhou
February 10, 2010 15:21 PM

KUALA LUMPUR, Feb 10 (Bernama) -- AirAsia's long haul affiliate, AirAsia X, will increase its frequency to Hangzhou, the gateway of Shanghai, with direct daily flights starting March 28, 2010.

"The response has been extremely good as we are running past 80 per cent load factor for the Hangzhou-Kuala Lumpur routes," said AirAsia Regional Head of Commercial Kathleen Tan.

In a statement Wednesday, she said the airline always positioned Hangzhou as its eastern gateway into the Yangtze Delta region as it took only 75 minutes to Shanghai by bullet train.

Hangzhou is one of the most popular tourist attractions in China, famed for its West Lake, Longjing Tea Fields and Six Harmonies Pagoda.

The AirAsia X flight to Hangzhou is serviced by Airbus A330-300 with 383 economy seats including 28 premium seats.

AirAsia X will depart from Kuala Lumpur at 8.10am and arrive in Hangzhou at 1.10pm every Monday, Wednesday and Friday, and at 5.20pm to reach its destination at 10.20pm every Tuesday, Saturday and Sunday.

The flight from Hangzhou will depart at 2.10pm and arrive in Kuala Lumpur at 7.10pm every Monday, Wednesday, Thursday and Friday, and at 11.20pm to arrive here 4.20am every Tuesday, Saturday and Sunday.

AirAsia has 198 flights weekly flying from various destinations in Asean to nine destinations in China including Hong Kong and Macau.

-- BERNAMA

AirAsia buys stake in VietJet
AFP - February 11, 2010

Budget carrier AirAsia said it has purchased a 30 per cent stake in VietJet Aviation, allowing it to establish a Vietnam-based low-cost airline. The carrier will be known as VietJet AirAsia, AirAsia said in a statement late on Wednesday. It did not reveal how much it paid for the acquisition.

'The birth of VietJet AirAsia contributes to the diversification of the aviation market in Vietnam, providing more options to meet the air travel needs of people in Vietnam and in the region,' VietJet said in the statement.

AirAsia said the venture will operate both domestic and international flights, allowing it to expand its reach in Vietnam and open the country as another gateway in Southeast Asia. It said Vietnam's transport ministry approved the share acquisition on Feb 9. AirAsia said the new venture will make Vietnam its fourth country base, following Malaysia, Thailand and Indonesia.

AirAsia, launched in Dec 2001 with just two aircraft, is now the region's fourth-largest carrier.

Any idea when Air Asia X will start Sydney? This year I think

MAS sees 50% higher flown revenue via card
Thursday February 11, 2010

KUALA LUMPUR: Malaysia Airlines (MAS) is confident of achieving at least 50% growth in Enrich flown revenue this year.

General manager corporate marketing and loyalty programme Raja Datuk Nordiana Zainal Shah said last year the carrier raked in RM1.89bil flown revenue via its Enrich loyalty card programme, a 45% growth from RM1.3bil achieved in 2008.

“Enrich membership has grown more than 10% year-on-year to 1.65 million to date,” she said at Enrich’s 10th anniversary celebration.

Nordiana said MAS hoped to increase awareness of its loyalty programme in the five key markets of Malaysia, Australia, Britain, the United States and Singapore.

MAS was also looking to increase efficacy of strategic alliances with more banks for the programme, she said, without elaborating.

She said its aim was to grow its membership base to two million by year-end.

“Frequent flyers programmes in Malaysia are not quite mature compared with countries like the United States; thus we see great potential in the future of Enrich as its own entity as well as significant contributor to MAS’ overall revenue,” Nordiana said.

Enrich currently has four tiers of membership – blue tier for entry level while Silver, Gold and Platinum make up the elite tiers.

Despite MAS’ passenger traffic having dropped from 14.8 million in 2008 to 13 million in 2009, the flown revenue for Enrich saw growth.

Nordiana said the focus now was to constantly improve the offerings to customers and increase the number of touch points for them.

She also announced 10 enhanced features for the loyalty programme, including bonus points of credit card transfer to Enrich miles, ease of redemption, online Enrich miles claim and new mileage accrual opportunities.

AirAsia is British MotoGP's title sponsor
Published: 2010/02/11

LOW-COST carrier AirAsia on Wednesday became the title sponsor for the British Motorcycle Grand Prix (MotoGP) in a three-year deal starting this year.

Its chief executive officer (CEO), Datuk Seri Tony Fernandes, said the British MotoGP would be held at the prestigious Silverstone circuit in June.

He, however, did not want to disclose the allocation for the sponsorship.

"I decided to sponsor the Silverstone circuit because it was a special comeback for the circuit since 1986 (last race held at the circuit), thus it was available for us to approach.

"For AirAsia, this sponsorship will bring a lot of attention from all over the world and we must admit that Malaysia is closea with England compared with other European countries," he told reporters here.

Fernandes earlier signed the agreements between AirAsia and Dorna Sports S.L. at the British Racing Drivers Club at the Silverstone circuit.

Dorna Sports S.L. CEO Carmelo Ezpeleta signed on behalf of the company which was established in 1988 as an international sports management and marketing company.

Dorna Sports S.L. has been the exclusive holder of all commercial and TV rights of the MotoGP since 1992.

The 2010 MotoGP World Championship calendars will kick off in April as the action at the Silverstone circuit is scheduled for June 18-20.

"It's a huge thing for me and it's great that we have a brand, AirAsia, from Malaysia that Dorna S.L. wants to cooperate with," he said.

Fernandes said it was a dream comes true and a big step for him because at the Sepang circuit last year two Malaysia riders representing AirAsia racing team made their debut by wildcards.

"We had our first taste when we sponsored the entries of Elly Idzlianizar Ilias and Mohd Zulfahimi Khairuddin. It was a magnificent experience.

"The boys did Malaysia proud and we were thrilled to have helped make their dream a reality. We are proud and excited to be back in the MotoGP this year, with a bigger role by being the title sponsor," he said.

Fernandes said it had always been his dreams to establish a MotoGP team from Malaysia and although it was a long journey, it is must start from now.

"Maybe five or 10 years from now we can dream to have our own Valentino Rossi (the eight-time world champion)," he added. - BERNAMA

MAS upbeat on better performance
By Sharen Kaur Published: 2010/02/11

http://www.btimes.com.my/articles/MAS100/pix_topright

MALAYSIA Airlines (MAS) (3786) hopes to do better this year, helped in part by new routes in Asia, the arrival of new planes and higher income from its loyalty programme.

MAS should get three new aircraft by December, managing director and chief executive officer Datuk Tengku Azmil Zahruddin Raja Abdul Aziz said.

"We are positive on the outlook. Next year, we will be taking delivery of more B737s, which will contribute to a better performance," he said.

Tengku Azmil was speaking to Business Times yesterday in Kuala Lumpur, after a media briefing on its Enrich loyalty programme by MAS general manager for corporate marketing and loyalty programme, Datuk Raja Nordiana Zainal Shah.
In 2008, MAS ordered 35 Boeing 737-800s, with a total list price of US$2.6 billion (RM8.9 billion). They will start coming from 2010 onwards.

For the nine months to September 30 2009, MAS posted a loss of RM119.5 million, versus a profit of RM198 million in the same period in 2008.

Meanwhile, Nordiana said MAS is targeting to grow its Enrich flown revenue by more than 50 per cent this year, to exceed RM2.5 billion.

Enrich flown revenue is contribution of income derived from ticket sales to Enrich members. MAS has 1.65 million Enrich members currently.

Last year, the revenue was RM1.89 billion, 45 per cent growth over 2008. The business contributes some 10 per cent to MAS' total group turnover.

"There was growth last year despite the economic downturn as Enrich customers continued to fly with MAS because of the promotions we gave. We also did a lot of bonus miles," Nordiana said.

MAS is targeting two million Enrich members by the end of this year, with increased presence in Malaysia, Australia, the UK, the US and Singapore.

MAS MD says well-poised for turnaround
Friday February 12 2010

DUBAI, Feb 12 — Malaysia Airlines (MAS) managing director and chief executive officer Tengku Datuk Azmil Zahruddin said the carrier has earned the “licence to grow” after taking what he described as painful measures over the past few years to reverse its fortunes.

He said MAS was now in a good starting position as it began to enter a growth phase from 2011/2012 onwards, with a fleet of new state-of-the-art aircraft worth billions of dollars and exciting products being lined up to tempt customers to fly with the Malaysian flag carrier.

The airline boss reckoned many carriers had flown into turbulence trying to grow themselves out of trouble and “as far as I know none of them have succeeded in doing that because if you don’t improve your efficiency and you try to grow, the inefficiency will grow as well”.

“So we feel that we’ve done a lot of the painful things that many other airlines have not done, and having done the difficult stuff we’ve earned the licence to grow,” Tengku Azmil said in an interview.

He reflected, among others, on MAS’s fleet replacement, growth strategies as well competition in the aviation business.

Tengku Azmil also said MAS did well when it ordered new aircraft during the economic downturn in contrast to many other airlines.

“Most other airlines actually placed orders for aircraft when the economy was at its peak and they probably had to pay quite a lot for them,” he said, adding that airlines had to talk about delivery deferments when the economic slowdown and financial crisis struck.

“Fortunately for us, we didn’t have any jets coming in last year or the year before. So we’re not in that difficult position,” he said.

MAS had the foresight of predicting the industry would get into very tough times, Tengku Azmil said, recalling that some industry players in Asia Pacific had chided MAS over its pessimistic outlook.

“And they were all ordering aircraft but we said no, we will wait. We think that we’ve been quite fortunate in that we’ve been able to take advantage of the downturn,” said the CEO.

MAS’s new fleet will comprise up to 55 B737-800s, 25 A330-300s and six A380s. It will start taking delivery of several B737-800s at the end of the year.

Tengku Azmil said the 25 A330-300s cost around US$5 billion (RM17 billion) at list prices “but we’re getting a discount, so we’ll be paying less than US$5 billion”.

“We think that it’s a deal that works for us. It’s a decent enough discount to make us buy,” he said of the A330s, declining to disclose the actual amount.

At list prices, MAS’s six A380s cost US$1.8 billion while the B737-800 costs US$70 million each. Also, joining the MAS fleet are 17 ATR aircraft at US$19 million apiece.

The carrier recently received shareholders’ approval for a proposed rights issue to raise an expected RM2.67 billion to fund its future fleet growth and expansion.

“We’re really making a commitment in terms of replacing existing fleet as well as growing into the market,” Tengku Azmil said, adding that MAS would own at least a third of the fleet and lease the rest.

The new aircraft would fit in with MAS’s targeted growth areas that include India, the Middle East, China, North Asia, South Asia, Japan, Australia as well as Southeast Asia.

All these areas could be reached by the new A330-300s and the B737-800 would basically cover all of Asean, parts of India and China, he said.

“Combined with our existing B777s and the new A380s, the fleet basically allows us to cover our entire network,” Tengku Azmil observed.

To a question, he said growth in Europe as well as the United States by all accounts had been negative in recent times. “With Malaysia Airlines being pretty much in the middle of Asia, we don’t see why we should look very far afield when the exciting areas are all around us,” he said.

He said the carrier was also studying the possibility of adding other Middle East destinations to its network.

Tengku Azmil added competition was not something new to the national carrier which had collected numerous industry awards and accolades over the years, including Skytrax’s World 5-Star Airline for 2009/2010.

“It’s something that we’ve had to live with for a long time. As you may know, the Malaysian government has a fairly liberal competition policy.

“But what’s important for us is competition is done in a fair and orderly manner. As long as everyone has a level playing field than you can’t say no to competition,” he said.

MAS mounts some 110,000 flights per year to more than 2,000 destinations, including code share and special priority agreement arrangements. — Bernama

Any idea when Air Asia X will start Sydney? This year I think

AirAsia X: Seoul, Sydney routes crucial to business model
By Presenna Nambiar Published: 2010/02/18

http://www.btimes.com.my/articles/aap2/pix_topright

BUDGET airline AirAsia X Sdn Bhd (5099) needs to win rights to fly to high traffic destinations such as Seoul and Sydney because it is crucial for its long-haul business model.

"It is critical for our own business, for us to sustain our business model. We are committing huge amount of capital - and we do need the routes," AirAsia X chief executive officer Azran Osman-Rani told Business Times recently.

AirAsia X has equal share of profitable and non-profitable routes now.

As an airline that grows through the introduction of new routes, it is crucial that it also has established routes which help "subsidise" the investments made into new routes.
Azran said the break-even point of new routes varies, with some needing a surprisingly short time, while others need longer.

"Taipei exceeded our expectations, in barely six months it broke even. London, for example, will probably need between 12 and 18 months," Azran said.

In July last year, it was reported that the government was putting the award of rights for Seoul and Sydney to AirAsia X on hold, in a move to get its sister company AirAsia Bhd to pay around RM110 million owed to government-linked company Malaysia Airports Holdings Bhd for services rendered.

After settling the bill late last year, however, it is understood that the rights are further delayed by a need to appease the national carrier, Malaysia Airlines (MAS), which is currently servicing the routes.

Azran is confident, however, that the carrier will eventually be given the rights to fly into the two cities.

"I am confident that the government will see that it's in the national interest for us (Malaysia) to have more flights (into Sydney and Seoul)," Azran said.

He said government studies and methodology show that the country is losing RM1 billion in opportunity cost from each route alone.

The amount includes potential spending by tourists on airlines and hotels.

Azran said currently the gap of flights to the two city-states between Kuala Lumpur and Singapore and Bangkok are huge.

MAS is doing 14 flights to Sydney, while Singapore is doing 52. For Seoul, MAS is doing less than half that of the other airlines.

"If the country wants the KL International Airport to be a priority, we need more flights. The number of flights a country has is proportionate with the tourists it has, that's a proven fact. We do not have enough direct flights and this is of grave critical importance," Azran said.

More MAS flights to Johannesburg
Published: 2010/02/25

MALAYSIA Airlines (MAS) will launch two new weekly non-stop flights from the South African city of Johannesburg to Kuala Lumpur from March 30, bringing the total number to four weekly schedules.

The two additional flights will be on Tuesday and Friday, in addition to existing flights on Monday and Thursday.

The new services will use a Boeing 777-200 with 245 economy and 35 business class seats, providing a total weekly capacity of 560 seats in each direction.

MAS records higher pre-tax profit of RM461.9 million
23rd February, 2010

KUALA LUMPUR: Malaysian Airline System Bhd’s (MAS) pre-tax profit rose to RM461.990 million for the year ended Dec 31, 2009 from RM264.661 million in 2008.

Its turnover, however, slipped to RM11.574 billion from RM15.501 billion.

“The outlook for the first quarter 2010 continues to be challenging. While passenger and cargo traffic continue to improve, yield would remain under pressure,” the company told Bursa Malaysia yesterday.

MAS’ business strategy is to accelerate its Business Transformation Plan by focusing on three core areas, namely enhancing customer satisfaction, generating revenue and intensifying structural cost reduction.

For the fourth quarter ended Dec 31, 2009, MAS posted a pre-tax profit of RM568.733 million, a rebound from losses reported in the third quarter of 2009.

Last year, MAS’ derivative gain stood at RM1.15 billion while operating cost reduced by 20 per cent. Fuel cost also reduced by 46 per cent.

Its passenger traffic increased by 12 per cent while load factor at 68.8 per cent also increased.

MAS Managing Director/Chief Executive Officer Tengku Azmil Zahruddin said the company expected to complete the rights issue of at least RM2.67 billion by end of first quarter of 2010.

“In the first quarter, we also expect to complete aircraft acquisitions of six undelivered Airbus A380 and bundling of four Boeing aircraft from Penerbangan Malaysia Bhd,” he told a press conference.

“We plan to phase out older aircraft in favour of newer aircraft models which have better fuel efficiencies and lower operating costs,” he said.

Azmil said MAS planned to eventually phase out the B747 for A380 for high density routes such as London and Sydney.

He said MAS expected the delivery of six A380 aircraft, 25 A330-300 aircraft and 35 B737-800 aircraft by 2016.

The new aircraft delivery from 2010 to 2016, he said, would grow MAS’ capacity and optimise its yield.

“We plan additional flight frequencies for Asean cities, India, New Zealand and Europe. We are also evaluating new destinations,” Azmil said.

“Commencing March 28, MAS will be increasing frequencies to Jakarta, Bangkok, Saigon and Bangalore. There will also be additional flights to Perth, Auckland, Paris and Johannesburg,” he said.

Overall, MAS expected better business outlook this year with operating profit targets of between RM100 million to RM325 million. The 2010 prospects, he said, were also bright for MASkargo and the maintenance, repair and overhaul business.

“With a rebound in cargo demand in the fourth quarter of 2009 led by the Asia Pacific region, MASkargo is looking at growing its capacity by more than 10 per cent in 2010,” he said.

With the aggressive domestic and global sales campaign, the national carrier achieved a record number in passenger traffic of 3.4 million in the fourth quarter, the highest since the first quarter of 2008.

AirAsia urged to continue Tawau-Singapore sector
February 27, 2010, Saturday

TAWAU: The decision by AirAsia to discontinue its direct flight from Tawau to Singapore end of this month has made many passengers here unhappy.Tawau member of parliament Datuk Chua Soon Bui said the low-cost airline would lose its credibility if it continued to cancel its routes with prepaid bookings until the second half of the year.

Chua said she had received many complaints from the public who were not dissatisfied with the cancellation of the Tawau-Singapore route as they had already bought their tickets.

AirAsia launched the direct flight at the beginning of September last year.

Chua said AirAsia had not given any reason for discontinuing the flight but she hoped the airline could work closely with the Sabah Tourism Ministry and the tourism industry players to relaunch it.

A former senior reporter, Thong Lee Fun, said the least AirAsia could do was to reduce the number of weekly flights rather than stopping them altogether.

Another alternative is to re-route passengers through Kota Kinabalu at no extra cost.

“AirAsia should ‘by default’ absorb whatever extra cost incurred.

“These passengers bought their tickers early at an offered cheap choice by AirAsia and should not be penalised as ‘early birds’.

“When AirAsia started its new destination, it should at least sustain certain risk factors for a year and not close the route once it faced low passenger load.

“Otherwise, AirAsia will surely lose its credibility. The slogan that ‘Now everyone can fly’ might become ‘Now everyone can fly if it flies’,” she pointed out.

Thong also hoped the Sabah Tourism Ministry and Sabah Tourism Promotion Corporation would focus on promoting the east coast of Sabah, especially Tawau.

Any idea when Sydney will start flights from Kul and beyond

Rolls-Royce to provide TotalCare service for MAS engines
Published: 2010/03/01

Rolls-Royce Plc, a British manufacturer of aircraft engines and power systems, has signed a long term TotalCare service agreement to support engines that power Malaysia Airlines' (MAS) (3786) fleet of 17 Boeing 777.

The agreement, which covers Trent 800 engines, is the first time that MAS operations will be supported by TotalCare support.

In a statement issued last week, Rolls-Royce said TotalCare long-term service agreements were designed to minimise customer financial risk and improve operational performance and reliability, allowing operators to concentrate on their core business.

Such agreements are now in place or being finalised for 100 per cent of Trent engines in service in Southeast Asia. Globally, more than 2,600 Trent engines in service and on order are covered by TotalCare.

"Our contract with Rolls-Royce provides us with greater ability to predict and manage our engine maintenance and overhaul costs," MAS chief executive officer and managing director Tengku Datuk Azmil Zahruddin said.
In 2005, MAS ordered Rolls-Royce's Trent 900 engines for its six superjumbo A380 that are due to enter service next year.

MAS’ better earnings hints at better times ahead
Corporate Portrait - By LEONG HUNG YEE Monday March 1, 2010

http://biz.thestar.com.my/archives/2010/3/1/business/p3-mascht.JPG

MALAYSIA Airlines appears to have piloted its way out of the turbulence that has rattled the aviation industry judging from the better earnings performance disclosed last week.

It posted a net profit of RM609.7mil after including a derivative gain of RM581.7mil for the fourth quarter ended Dec 31 compared with RM46.6mil a year ago.

The national carrier also reported a small operating profit of RM3.8mil for the quarter under review. Revenue stood at RM3.3bil while earnings per share (EPS) jumped to 36.49 sen from 2.76 sen previously.

For the full year (FY09), its net profit jumped to RM490.2mil, or 29.33 sen per share, compared with RM244.3mil, or 14.62 sen per share, mainly due to derivative mark-to-market on fuel gains of RM1.15bil.

Revenue was lower at RM11.6bil against RM15.5mil in FY08. As at Dec 31, MAS’ cash and negotiable deposit balance stood at about RM2.95bil.

MAS has set a target of between RM100mil and RM325mil in operating profit for 2010.

“The figures speak for themselves. The recovery in the airline industry, which had been severely affected by the recent financial crisis, is evidenced by the better earnings announced by airline companies,” a bank-backed analyst said.

He added that the next few years would be exciting for MAS as the carrier would be expanding its routes and capacity again after years of consolidation. “This is the clearest indication yet of where the airline is headed.”

The airline carried 3.4 million passengers in the fourth quarter, the most since the first quarter of 2008. However, analysts said the increased load factor was at the expense of its yields.

MIDF Research said MAS’ latest results marked a turnaround and that its Business Transformation Plan 2 was working.

“The operating profit might not seem significant, but taken in context of the whole year, it is an encouraging development given that the previous three quarters posted huge operating losses,” it said in a report.

However, revenue yield remained under pressure in the final quarter, declining to 23.1 sen (excluding Firefly and MASWings) from 29.2 sen in the third quarter of 2009. Year-on-year, yields were down by 30%.

HwangDBS Vickers Research believed MAS would be able to pass on part of its jet fuel costs through higher fares and fuel surcharge as demand picked up while improving its load factor after a few years of capacity cuts.

“We raised FY11 forecast earnings by 113% to RM418.2mil after raising our passenger yield assumptions close to pre-crisis level (that is from 20.1 sen to 23.3 sen) and load factor (from 72% to 76%). We have also imputed the latest fuel hedging position of 40% at US$100 per barrel of crude oil (from 88% at US$100 a barrel),” it said.

Nevertheless, the research house believed FY10 would remain a challenging year due to pressures on yield.

AmResearch viewed MAS as a clear laggard play in the aviation sector. Following the bottoming of passenger traffic, which is now a clear case for almost all regional airlines, valuations of regional aviation stocks have recovered and converged to their historical averages.

However, it said MAS was still trading at 46% discount to its historical average valuation of 1.8 times price-to-book value.

MAS’ share price rose the most since Aug 14, 2008 following the release of its results. It closed 23 sen higher at RM2.13, its biggest one-day gain, on Tuesday.

In an interview with StarBizWeek earlier, senior general manager (network and revenue management) Dr Amin Khan said MAS would be embarking on a fleet modernisation and capacity expansion plan to stay ahead of its competitors.

“We aim to own a third of our fleet to lower our costs. It’s definitely cheaper to own the aircraft than to lease it,’’ Amin said.

MAS currently leases all its 81 aircraft from Penerbangan Malaysia Bhd.

Under its fleet renewal exercise, MAS could potentially own 56 aircraft by 2016 excluding options for 20 B737-800s and 10 A330-300s. The aircraft deliveries are scheduled from this year up to 2015.

Chief executive officer/managing director Tengku Datuk Azmil Zahruddin had earlier said that when the airline began taking delivery of the A330-300s in 2011, there should be an increase in revenue, besides cost savings of RM649mil from FY10 to FY12. When all the A330s were delivered by 2015, MAS expected additional annual savings of RM300mil, he was reported to have said.

An analyst said it would be interesting to see how MAS would configure its A380 given that it would be MAS’ flagship aircraft type, featuring four classes.

At a briefing last week, Azmil said MAS’ new fleet would comprise up to 17 ATR-72-500s, 55 B737-800s, 25 A330-300s and six A380s.

When all the aircraft ordered are delivered, MAS expects to have one of the youngest, most fuel efficient and environmental-friendly fleets in Asia.

Last month, MAS received shareholders’ approval for a one-for-one rights offering to raise some RM2.67bil to help pay for new aircraft to replace its ageing fleet.

Azmil said MAS would be increasing frequencies to Jakarta, Bangkok, Ho Chi Minh City and Bangalore from March 28. It will also add flights on routes to Perth, Auckland, Paris and Johannesburg and commence direct flights to Brisbane.

“All this capital-raising, fleet refreshing programme, continuous investment in new systems and infrastructure position us in high gear for expansion and growth. I am looking forward to exciting times ahead,” Azmil said.

p7WKuRZ4R70

Tdh-PUd4Iq4

MAS may offer 'premium economy' class
Published: 2010/03/01

Malaysian Airline System Bhd, the national carrier, may introduce “premium economy” seats in its double-decker Airbus SAS A380s as tighter corporate travel budgets damp demand for business-class seating.

“A premium-economy cabin in our A380s would provide another option for our passengers,” Amin Khan, the carrier’s senior general manager for network and revenue management, said in an e-mailed reply to Bloomberg questions today. It would serve “those organizations that maintain economy-class travel policy for their employees, even after the recession.”

The carrier may include premium-economy class in its six on-order A380s to lure travelers seeking more comfort than is available in coach at prices lower than in business class. Corporate travelers forced to fly coach during the recession may never return to business-class cabins, as companies seek permanent reductions in spending on travel, the International Air Transport Association said last month.

Passenger yield, or the average price a traveler pays to fly one kilometer, won’t return to pre-crisis levels “just yet” even though business travel has begun to recover, Amin said. “During the recession we observed a shift down from business to economy,” he said.

Malaysian Air may spend RM460 million to furnish its A380s, a Daily reported in January, citing a circular to shareholders.

The carrier gained as much as 8.2 per cent to RM2.25 at noon break. Of 16 analysts tracked by Bloomberg data over the past 12 months, two recommended investors buy the stock, eight had “sell” ratings, while the remainder said hold. -- Bloomberg

AirAsia urged to continue Tawau-Singapore sector

Chua said she had received many complaints from the public who were not dissatisfied with the cancellation of the Tawau-Singapore route as they had already bought their tickets.


Meaning they were satisfied????

MAS links Destinasi Bajet with MAStraveller.com
Written by The Edge Financial Daily Thursday, 04 March 2010 23:49

http://www.theedgemalaysia.com/images/stories/0mas.jpg

Travelogue hosts Cheryl Samad (left) and
Qushairi Mohammed Razali (better known as Qi)

SUBANG: Malaysia Airlines Bhd (MAS) has launched its MAStraveller.com online travel portal with an exclusive run of Destinasi Bajet Jom MAS! Travelogue on its website, where users can share information and travel experiences.

Its general manager communications Indira Nair said the website was linked to the MAS website "so customers can easily hop over to malaysiaairlines.com and check out great deals, buy ticket and vice versa".

The travel portal is divided into three main sections — Home, Destinations and What's New — and has garnered 11,300 registered members.

"We are really encouraged by the response to MAStraveller.com and decided it was time to take it to a bigger audience. So when Destinasi Bajet came about — proving that everyone can travel, even on a tight budget, we felt that we had found the perfect fit for MAStraveller.com." Nair said.

"(However) MAStraveller.com is not necessarily for budget travellers, we're just inviting people to travel," she added.

MAS is also running a contest starting March 8, where participants are required to answer a question based on one destination featured on Destinasi Bajet Jom MAS! and submit their own travel tip. A ticket to any Asean or domestic destination will be given weekly throughout the entire season of Destinasi Bajet Jom MAS!

MAS offers non-stop daily service to Paris
Written by The Edge Financial Daily
Sunday, 07 March 2010 20:27

SUBANG: Malaysia Airlines (MAS) will be offering additional two non-stop daily services to its existing five times weekly flights from Kuala Lumpur to Paris, starting this March 28.

In a statement on March 7, the carrier said the new flights would depart Kuala Lumpur at 11.35pm (local time) and arrive in Paris at 6.40am (local time) every day.

MAS senior general manager, network and revenue management, Dr Amin Khan, said: “We have seen an increase in demand and as a result, forward bookings are also much healthier compared to last year.”

“Our load factor is strong at about 80% and thus, we want to take this opportunity to cater for this growth.

“This daily non-stop flight to Paris is suitable for both leisure and business travellers. Passengers will arrive early in the morning, giving them ample time to maximise their stay in Paris. Alternatively, they can catch the earliest connecting flight to other parts of France, Europe and the UK. Bottom line, passengers will have more flexibility in their travels,” he said.

MAS eyes 5pc more passengers to Australia
Published: 2010/03/09

Malaysia Airlines (MAS), which carried 3.5 million passengers from Kuala Lumpur to destinations in Australia last year, expects a five per cent growth this year.

Its assistant general manager of sales, Malaysia and Brunei, Azman Ahmad, said MAS would introduce two new weekly direct flights to Brisbane from March 28.

"The flights on Fridays and Sundays will complement our current five weekly flights from Kuala Lumpur to Brisbane via Sydney," he told a press conference after the launch of "Only in Oz Holidays" campaign here today.

Azman said MAS would also increase its flights to Perth to 10 weekly.

Currently, MAS flies 52 times a week between Kuala Lumpur and Australia. It also collaborates with Virgin Blue to connect to another 21 Australian cities.

Last year, a total of 211,500 Malaysians visited Australia, up 24 per cent from the previous year. In conjunction with the "Only in Oz Holidays" campaign, MAS would offer one-way ticket from as low as RM649 to Australia.

The campaign, organised by Tourism Australia in partnership with MAS, will see the promotion of MAS' special fares to Australia as well as exclusive land packages and bonus offers that include a range of "Only in Oz Holidays" experiences. -- Bernama

MAS, TATA sign 5-year IT pact
Published: 2010/03/15

MALAYSIA Airlines (MAS) and TATA Consultancy Services (TCS) have sealed a five-year contract for information technology (IT) infrastructure services.

"The partnership is part of MAS'' strategic outsourcing programme to transform its IT operations.

"This is in line with Business Transformation Plan to align the role of IT to the airline’s profit and loss," MAS chief information officer, Faridah Abdul Rahman, said in a statement here today.

The contract was signed by Faridah and TCS head of Asia Pacific, Vish Iyer.

Faridah said one of the key initiatives included fine-tuning MAS' IT ousourcing strategy to deliver the required business results at lower cost.

"We will also continue to work with our key vendors to maximise service delivery and to proactively address other business requirements," she said.

TCS will undertake IT infrastructure management of MAS’ data centres, IT networks and IT security. -- Bernama

Air Asia X
From Flickr

http://farm3.static.flickr.com/2712/4363524194_06733b3bd3_b.jpg

http://farm3.static.flickr.com/2704/4431116740_85d95a66a3_b.jpg

http://farm5.static.flickr.com/4049/4430353371_b7f9b753ee_b.jpg

From flickr

http://farm3.static.flickr.com/2428/3704682636_0d31a6820f_o.jpg

http://farm3.static.flickr.com/2554/3704682188_43b426db5e_o.jpg

http://farm4.static.flickr.com/3535/3911180023_9fd2ebc94d_b.jpg

From flickr

http://farm3.static.flickr.com/2553/3974707941_26c870b599_b.jpg

http://farm3.static.flickr.com/2490/3929307922_76ae3901b5_b.jpg

To Coolangatta Airport, Gold Coast - Australia
From Flickr

http://farm4.static.flickr.com/3174/2491583931_bd0dfdd73f_o.jpg

http://farm3.static.flickr.com/2420/2492404668_601702df5c_o.jpg

http://farm3.static.flickr.com/2124/2492404276_eb000f66a2_o.jpg

http://farm3.static.flickr.com/2224/2492405064_c0d30c541f_o.jpg

Any Idea what colour scheme VietJet Air Asia will use? Maybe orange or blue from the current regualr c/s they have for the others? They were going to go all blue for the failed Vina Air Asia (also in Vietnam).

I think the aircraft they choose is going to be Airbus A320.

No idea for the colour scheme but flights to start in May 2010!

Airasia up as earnings 'looking strong'
Published: 2010/03/17

AirAsia Bhd, Southeast Asia’s largest budget carrier, rose the most in almost a month after its chief executive officer said first-quarter earnings are “looking strong” and it doesn’t need to raise more capital.

The stock climbed 3.2 per cent to RM1.31 at 9:15 am local time in Kuala Lumpur trading, set for the steepest gain since Feb. 22. -- Bloomberg

AirAsia Miri-S’pore flight to be restored next week
by Georgette Tan March 18, 2010, Thursday

KUCHING: AirAsia has agreed to reinstate the Miri-Singapore flight by next week, Deputy Chief Minister Datuk Patinggi Tan Sri Dr George Chan said yesterday.Dr Chan, who is also Tourism and Heritage Minister, disclosed this after a discussion with AirAsia chief executive officer Datuk Seri Tony Fernandez over the route, which was suspended earlier this month.

“People are used to the route. Employees of oil companies are used to travelling on that flight,” he said during a press conference at Kuching International Airport VIP lounge upon his return from Kuala Lumpur.

“I promised Fernandez that we will do our part in promoting Sarawak to Singaporeans,” he said.

Dr Chan added that he would be embarking on a roadshow to promote Sarawak in Singapore either end of this month or early April.

“On my part, I want to sell Sarawak to Singaporeans and get more people to come.

“People should know about the good tourism products available in Sarawak. We must work on a win-win situation. Tour operators can also help by getting as many people as possible to visit,” he added.

The status of other suspended international routes, like the Kuching-Jakarta flight, remains unchanged.

Dr Chan said Fernandez asked him to speak to Malaysia Airport Holdings Berhad (MAB) about offering the low-cost carrier a lower rate for airport charges.

“I hope MAB will be able to help us there, until we build up a volume where the low-cost carrier can absorb a higher cost.”

He said Sarawak tourism was behind when compared to Sabah, Penang and Melaka, and appealed for MAB to reconsider its charges.

Air Asia started flights to Tehran for the Nowrooz holidays in Iran Tehran-Kuala Lumpur

AirAsia expects 27m passengers this year
By Jeeva Arulampalam Published: 2010/03/20

LOW-COST carrier (LCC) AirAsia Group (5099) expects to carry some 27 million passengers this year, up from the 24 million passengers achieved last year.

AirAsia group chief executive officer Datuk Seri Tony Fernandes said AirAsia, together with its long-haul affiliate, AirAsia X will be able to achieve 27 million passengers as load factors remain strong and signs of economic recovery are underway.

"We will use the new plane deliveries this year to continue driving our initiative of becoming a full-fledged Asean carrier this year," Fernandes told reporters at an AirAsia event in Sepang, Selangor, yesterday.

Despite AirAsia deferring the delivery of eight new A320s this year, it will still be taking in 16 new A320s, with most planes being utilised by its associates, Thai AirAsia and Indonesia AirAsia.
Fernandes also said that flights to Thailand are continuing as per normal with healthy load factors despite the current political turbulence in Bangkok.

"We've not cancelled any of our flights. I think people have become used to (the ongoing political disputes) there," he said.

AirAsia is also working on increasing its ancillary revenue base by promoting local events such as upcoming concerts by artists Zee Avi and Lionel Richie, as well as international concerts.

Meanwhile, AirAsia paid tribute yesterday to two individuals who have contributed to the airline's growth and propagated the AirAsia AllStar culture by unveiling two aircraft with special liveries bearing images of both individuals.

Both brand new Airbus A320 planes bear images of the former AirAsia chairman Datuk Pahamin Ab. Rajab and AirAsia chief operating officer Bo Lingam's imagery.

"The aircraft with the special liveries shows our gratitude to their contributions in growing the airline from a fledgling Malaysian LCC to the Asean airline that it is now," said Fernandes before unveiling the planes in Sepang.

Both Pahamin and Bo joined AirAsia in 2001 and were instrumental in the development of the low-cost carrier into an internationally recognised brand.

AirAsia units to settle debts by 2013
Published: 2010/03/27

AIRASIA Bhd expects its associate units in Thailand and Indonesia to fully settle debts owed to the parent by 2013, according to Credit Suisse Group after meeting the management.

The company expects to carry 27 million passengers this year, with a traffic growth of 18 per cent, Credit Suisse said in a report yesterday.

It is also in talks with auditors to consolidate its Indonesian and Thai operations to improve transparency and mitigate the uncertainty overhang on the company, it said. — Bloomberg

Air Asia started flights to Tehran for the Nowrooz holidays in Iran Tehran-Kuala Lumpur

That's true I saw D7 flight to Tehran last week on my way to Cochin

^^
yes, today and yesterday also, I don't think it's charter but rather seasonal...
I really like Air Asia! :D

MAS Give Away Grand Prix Tickets
March 28, 2010 12:58 PM

KUALA LUMPUR, March 28 (BERNAMA) -- Malaysia Airlines (MAS) has partnered with Sepang International Circuit (SIC) in conjunction with the 2010 Petronas Malaysian Grand Prix on April 2-4.

To enhance the F1 experience and build up excitement ahead of the race, Malaysia Airlines is giving away over 50 grandstand tickets and over 100 Grand Prix Concert tickets.

The concert will feature Fatboy Slim and Wyclef Jean and will take place at the Sepang International Circuit Helipad at 7pm, an hour after the race. Backstage passes to meet the international superstars are also up for grabs.

In a statement on Sunday, MAS said that these free tickets and passes could be obtained through various activities organised for Malaysia Airlines Travel Facebook fans as well as registered users on MAStraveller.com.

In addition, there will also be a Grand Prize comprising air tickets to Asean destinations.

"We're delighted to be associated with SIC as the F1 is a very high-profile sporting event with the 2nd highest audience in the world. This complements our efforts in sports tourism as an event like this attracts fans from all over the world into Malaysia," MAS senior general manager sales & marketing, Datuk Bernard Francis said in the statement.

To make it more attractive, MAS' travel arm, MASholidays, was also offering affordable ground packages starting from RM253 per person for 3D/2N inclusive of accommodation, transfers and daily breakfast, he added.

Francis said that aside from ticket giveaways, MAS was also offering 15 per cent discount on F1 tickets for those who can present either

MAS tickets with purchase dates from March 1 to 31, or MAS boarding pass for travel dating March 1 to 31.

He said details on the prizes could be checked at MAStraveller.com and MAS' Travel Facebook page.

-- BERNAMA

MAS places US$3.6b order with Airbus
Published: 2010/03/31

MALAYSIA Airlines placed a firm order on Wednesday for 15 A330-300 widebodied aircraft and two A330-200F freighters, at a list price of about US$3.6 billion.

The cost, however, does not include options for another 10 A330-300 aircraft and two A330-200F freighters.

Managing Director cum Chief Executive Officer Tengku Datuk Azmil Zahruddin said the price of each aircraft is about US$170 million and the exercise would be financed through proceeds from a rights issue as well as additional debt funding.

The national carrier had under RM3 billion in cash as at December 2009 and its gearing level was at 1.1 times.


"With new aircraft coming in, we can use it for growth, if the economy is doing well.Otherwise, we will do the necessary replacement of aircraft.

"It depends on where we are, at that point in time," he told reporters after signing the sales and purchase agreement with Airbus on the sidelines of Invest Malaysia 2010 in Kuala Lumpur Wednesday.

Azmil said the current Malaysia Airlines fleet is at an average of about 11-12 years old this is still considered as being relatively young.

"By 2015, we want to ensure we have a younger fleet and the average age would be down to just five years," he explained.

According to Azmil, on the cargo side, the new freighters would enable Malaysia Airlines to serve better the intra-Asia route and offer direct services to Europe from India and Bangladesh.

In preparation for adding capacity with the availability of new aircraft, Malaysia Airlines has been adding new frequencies starting March 28, and is expected to announce new destinations from this second quarter.

While delivery of the passenger aircraft will begin in the first half of 2011, the first freighter is likely to join the MASkargo fleet in September of the year.

All deliveries are expected to be completed by 2016.

Meanwhile, Malaysia Airlines Chief Financial Officer Mohd Azha bin Abdul Jalil said the Request For Proposals (RFP) for financing, would likely be finalised by April.

"We have received more than 20 proposals, so it will take quite a while to evaluate all. The proposals are from overseas as well as locally," he said.

-- BERNAMA

AirAsia: Passengers should leave home early
Published: 2010/04/01

Budget carrier AirAsia has advised its passengers to leave home early as major roads leading to the Low Cost Carrier Terminal (LCCT) will be congested because of the Formula One Malaysia Grand Prix.

Over 100,000 fans are expected to swarm the nearby Sepang International Circuit (SIC) for the next three days.

"We are also informing guests via SMS and social media channels to advise them of the situation," said an Air Asia statement.
- Bernama

MAS to begin Dammam flights next month
Published: 2010/04/01

DUBAI: Malaysia Airlines will further spread Malaysian hospitality to this part of the world when it starts flying to the Saudi Arabian city of Dammam next month.

The service begins on May 5, twice weekly every Wednesday and Saturday, the award-winning airline said in a statement.

A return ticket from Dammam to Dubai starts from 643 riyals, while a Dammam-Kuala Lumpur return fare starts from 1,664 riyals.

The carrier also said a return ticket from Dubai to Dammam is available from 635 dirhams.

Bookings for the all-inclusive airfares are open now till Sept 30, 2010, for travel between May 5 and Dec 31, 2010. -- Bernama

^^
yes, today and yesterday also, I don't think it's charter but rather seasonal...
I really like Air Asia! :D

They should use Tehran as Middle East base instead of Abu Dhabi.

Tehran is home to much bigger population and there's far higher % of adventure/ young travellers than in Abu Dhabi.

thankkkkkkss secret biil gates book mollinaire www.moneymoney2.tk www.easymoneynow.tk

They should use Tehran as Middle East base instead of Abu Dhabi.

Tehran is home to much bigger population and there's far higher % of adventure/ young travellers than in Abu Dhabi.
yes it's true, also Tehran is central in the world and nearer to european countries.
but I don't think that will happen since Iran hasn't a good image in the world :(

Malaysia Airlines Offers Online Booking For Nine European Destinations
April 02, 2010 12:06 PM

KUALA LUMPUR, April 2 (Bernama) -- Malaysia Airlines (MAS) now offers easier online booking for customers to/or from nine cities in Europe.

Customers arriving or departing Stockholm, Gothenburg (Sweden), Oslo, Sandefjord-Olso, Bergen, Stavanger, Brussels (Belgium), Copenhagen (Denmark) and Helsinki (Finland), can now book and purchase their tickets online.

Malaysia Airlines said it already served these routes through a partnership with KLM Royal Dutch Airline (KLM) but previously, these tickets could only be purchased at MAS ticketing offices or travel agents.

"Travelling with Malaysia Airlines to Europe is even easier now that customers can book the code-share tickets online," said its Senior General Manager, Network and Revenue Management, Dr Amin Khan in a statement Friday.

Malaysia Airlines said it would soon make available online the European and Japanese destinations that the airline is partnering with Alitalia and All Nippon Airways.

"This is also in line with our hub-and-spoke strategy to improve feeder traffic into our trunk routes. This partnership will further enhance our earnings," he said.

Malaysia Airlines offers daily flights from Kuala Lumpur to Amsterdam and from Amsterdam, KLM connects to Brussels 21 times weekly.

It also connects to Stockholm, Gothenburg, Copenhagen, Helsinki and Stavanger 14 times weekly and to Oslo, Sandefjord-Olso and Bergen, seven times a week.

-- BERNAMA

-DELETED-

AirAsia X to expand flights
By Presenna NambiarPublished: 2010/04/06

http://www.btimes.com.my/Current_News/BTIMES/articles/pax1/Article/Current_News/BTIMES/Images/btgraph10/asiaX.jpg

Long-haul budget carrier AirAsia X will focus on growing flight frequencies to existing destinations in India, Melbourne and Perth this year.

"It has been challenging, (trying to get) new routes, so we are adding even more flights to destinations such as Melbourne and Perth," AirAsia X chief executive officer Azran Osman-Rani said.

AirAsia X has been lobbying for the Sydney and Seoul routes for more than a year now.

According to a news report, the low-cost carrier (LCC)'s plan to fly to both capitals by June this year were dashed when it did not get a formal word on the issue from the government.

"We have asked for the rights to fly to Jeddah too, due to demands by our customers, but that has also been held back," Azran said.

AirAsia X, which will accept delivery of three more A330s this year, will deploy them to the two Australian cities, with the absence of the new routes.

One of the airline's top priorities this year will be to get more rights to fly into Mumbai.

"In order for it to make economic sense, we need at least daily flights to Mumbai. We will wait for the next bilateral meeting to bring the matter up with the Indian government," Azran said.

AirAsia X will start flying to Mumbai in May, and is allowed to fly four times a week.

Azran was speaking after launching AirAsia X's new seat configuration for its aircraft, which involves the introduction of flatbed premium seats, which is said to be a first for a low-cost carrier.

AirAsia X will spend RM10 million for the refurbishment of each plane. The refurbishment will allow the airline's A330 to have a seat configuration of 12 flatbed premium and 365 economy seats.

The new configurations for the airline's A340 is 18 flatbed seats and 309 economy seats. The airline currently owns eight Airbus aircraft.

In conjunction with the launch, AirAsia X is offering a "Premium Seat Promotion" to all Citibank credit card holders in Malaysia.

On offer are flights from Kuala Lumpur to Perth, from RM999 one way, and Kuala Lumpur to Melbourne from RM1,499 one way.

The offer is available exclusively online for booking from April 6 to April 8 2010, for the travel period between April 12 2010 and February 13 2011.

MAS improves baggage handling
Published: Tuesday April 6, 2010 MYT 5:42:00 PM

KUALA LUMPUR: Malaysia Airlines improved its baggage handling last year, reducing missing incidents to 3.3% per 1,000 passengers.

MAS airport operations senior general manager Yusop Jaridi, in a statement Tuesday, said the achivement was fairly better than the industry benchmark of 3.4%.

He said mishandled baggages per 1,000 passengers was significantly low at 2.4%, compared with 10.8% of the Association of European Airlines (AEA).

Constant communication between the company and ground-handlers such as Malaysia Airports Berhad and other airport authorities, as well as customers, resulted in the improvement, he added.

More closed-circuit television cameras would be installed at the Kuala Lumpur International Airport to enhance the overall security of baggage there, he added.

CEO: AirAsia X will add flights to Melbourne and Perth
Tuesday April 6, 2010

SEPANG: AirAsia X will operate flights to Melbourne and Perth, with three more Airbus A330 aircraft coming in, as securing routes to Seoul and Sydney is a challenge.

Currently, it is using six A330 and two A340 aircraft.

“For some reason we are not privileged enough to get some routes. So, we will be adding more flights to Perth and Melbourne and keep pushing Mumbai and New Delhi routes in 2010,” said chief executive officer Azran Osman-Rani.

AirAsia X will service the New Delhi route in August.

“However, that doesn’t mean AirAsia X is dropping those routes from its plan, we still want to fly to Seoul, Sydney, Jeddah and to one city in Japan as there is huge demand.

“So, the guys next door are not going to run away from competition as we will keep throwing in more flights in the current routes,” he told reporters after unveiling the budget airline’s premium “Lie-Flat Bed” seats at the Low Cost Carrier Terminal yesterday.

As for Mumbai, Azran said AirAsia X had the rights to fly four times a week to the Indian city and was pursuing three more landing rights as only then would the route be economically viable.

“We hope to secure the rights within this year. Singapore Airlines operates four flights to Mumbai daily, meaning Malaysia is losing out,” he said. — Bernama

On possible code-sharing arrangements with other budget airlines, Azran said it did not make sense to do code-sharing as with online booking, travellers could do it themselves. — Bernama

AirAsia to start Vietnam flights in August
Published: 2010/04/08

AirAsia Bhd, Southeast Asia’s biggest discount carrier, plans to operate its first flights in Vietnam in August with three planes, chief executive officer Tony Fernandes told reporters in Hanoi today.

Vietnam’s market of almost 90 million people has “huge tourist potential,” he told reporters. The company said information on destinations was not yet available. -- Bloomberg

MAS to serve 5 more China destinations
Published: 2010/04/12

Malaysia Airlines (MAS) (3786) passengers can now fly to five more destinations in China besides the six already served by the airline.

MAS senior general manager (network & revenue management) Dr Amin Khan, in a statement yesterday named the new destinations as Chengdu, Wuhan, Guilin, Nanning and Changsha.

The six destinations already served are Guangzhou, Beijing, Shanghai, Kunming, Xiamen and Hong Kong.

He said the new destinations were added on through a code-share arrangement between MAS and China Southern Airlines, adding that passengers could fly into Ghangzhou and connect to the five new destinations.
"It's even easier now for our customers to travel to China. The expansion of our partnership with China Southern enables our customers to fly to 95 destinations from Guangzhou and 38 from Beijing.

"Customers will also enjoy seamless and hassle-free services as they will be able to connect directly to their final destination with the 'through check-in' services offered," he said.

Amin Khan said that with the economic recovery, more customers were flying to China whereby the load for the existing six destinations was in the region of 75 per cent.

He said customers could also enjoy the comfort of new planes when Malaysia Airlines starts deploying its new A330-300 aircraft for these routes early next year.

He said that from Kuala Lumpur, MAS flies seven times weekly to Guangzhou and Beijing, 14 times weekly to Shanghai and Hong Kong and three times weekly to Kunming and Xiamen.

China Southern Airlines, he said, offered flights 14 times weekly from Guangzhou to Chengdu and Wuhan and seven times weekly from Guangzhou to Guilin, Changsha and Nanning. - Bernama

Air Asia X New Seats

Economy
http://blog.airasia.com/media/users/azranosmanrani/Blog%20Pic.Econ%20Seat.jpg

http://blog.airasia.com/media/users/azranosmanrani/Blog%20Pic.Econ%20Cabin.jpg

World First Lie-flat bed seats on a Low Cost Carrier! :)
Premium economy
http://blog.airasia.com/media/users/azranosmanrani/Blog%20Pic.Lie-Flat.jpg

http://blog.airasia.com/media/users/admin/Sample_photo%20contest.JPG

wow, good new for Air Asia consumers.

MAS banking on regional destinations
Published: 2010/04/14

Malaysian Airline System Bhd (MAS) is confident that its new Asean and Asia Pacific destinations will strengthen the company's financial standing by year end.

Managing Director Datuk Tengku Azmil Zahruddin Raja Abdul Aziz said flights to these destinations like China and India had shown an increase in the number of passengers, especially tourists. Those to Europe and United States, meanwhile, were still not encouraging.

"Hopefully by year end, the economic situation will recover and return to normal so that flights to various destinations worldwide can be expanded again," he told reporters after a function here today.

He said things seemed to be better this year after a difficult period due to the global economic crisis. With the number of tourists flying to various destinations in Asia Pacific showing an increase, "this is good for us," he said.

Tengku Azmil said the new destinations that MAS was presently studying, would promise good returns but it did not necessarily mean a significant increase in revenue.

"I am confident the destinations to be selected in these regions will give MAS profits," he said and added that the new destinations would be announced soon. -- Bernama

Air Asia X (extralong)
From Flickr

http://farm3.static.flickr.com/2723/4295098110_444dc8b287_b.jpg

http://farm5.static.flickr.com/4042/4295096018_e980e53d1b_b.jpg

MAS Airbus A380 delivery delayed to 2012
Published: 2010/04/30

MALAYSIAN Airline System Bhd said the beginning of deliveries for its Airbus SAS A380 superjumbos had been delayed for a second time at the manufacturer’s request.

The first aircraft is now expected in the first half of 2012, MAS chief executive officer Tengku Azmil Zahruddin said in an e-mail to Bloomberg. The plane is the world’s largest passenger aircraft.

MAS originally expected the first of six A380s to arrive in Kuala Lumpur in January next year. Last November, Airbus SAS delayed that until the third-quarter of 2011. The carrier has no current plans to order more A380s and has ordered 55 Boeing Co 737-800s and as many as 25 Airbus A330-300s, Tengku Azmil said.

“The A380s will complement these aircraft to support our future network plans,” he said.
Airbus, the world’s biggest maker of commercial aircraft, began deliveries of the A380 model in 2007 after running about two years late because of difficulty with cabin wiring. The company has spent at least 18 billion euros ($23.8 billion) developing the plane, or 50 per cent more than originally projected, and has struggled in meeting demands for features such as showers, enclosed suites and custom lighting.

Airbus spokesman Sean Lee was not immediately available for comment when telephoned by Bloomberg today.

MAS rose 1.4 per cent to RM2.16 at 9:22 a.m. in Kuala Lumpur. The carrier has dropped 2.4 per cent this year. - Bloomberg

Air Asia making it possible for EVERYONE to fly...local and international and now...a taste of luxury at an affordable price!

Air Asia making it possible for EVERYONE to fly...local and international and now...a taste of luxury at an affordable price!
Seriously? AirAsia X's Economy Class (especially the newer planes) have no PTV while it's "Business Class" is the SAME seat as the Airfrance Premium Economy and it costs more even.

May 3, 2010
AirAsia gets new terminal
AFP

Malaysian budget carrier AirAsia said on Monday it would move to a new low-cost terminal at Kuala Lumpur's international airport by March 2012, a year later than planned.

But AirAsia CEO Tony Fernandes said he was 'thrilled' with an agreement struck with Malaysia's airport authorities after a long-running battle over the design and facilities. 'We are very happy with the design, it has taken in a lot of our input,' Mr Fernandes told reporters. 'We think that with this, a large part of our battle to make Malaysia the biggest hub of Asia is over.' AirAsia, which was launched in 2001 with just two planes, is now the region's fourth-biggest carrier with 25 million passengers a year. Mr Fernandes said the current low-cost carrier terminal, which opened in 2006, had a capacity to handle 15 million passengers annually while the new terminal would have a capacity of 30 million.

As part of the agreement with operators Malaysia Airports Holdings Berhad there will be parking bays for 76 aircraft and AirAsia's headquarters will be located next to the terminal building.

Mr Fernandes said the carrier also planned to introduce flights this year to the Maldives, where his Tune Hotel business has been invited to build six budget hotels.


See also (http://www.skyscrapercity.com/showthread.php?t=1004971&page=2)

Looks like they used economy seats for small regional jets like CRJ's because they are smaller I think for the 3-3-3 lay-out. The seats of the new business class are the same as Egyptair's new 777-300ER business class and updated Garuda Indonesia's A330's ;) Seats are looking good! The older economy class seat looked more modern IMO. ;)

Seriously? AirAsia X's Economy Class (especially the newer planes) have no PTV while it's "Business Class" is the SAME seat as the Airfrance Premium Economy and it costs more even.

for real? ugh I didnt kno that...I guess the ads and promos did a good job convincing me AAX is the best value for money.:nuts:

I have this experience before where AirAsia or AirAsia X ticket costs more than premium airlines like MAS, SQ, Qantas, Cathay...

Well, fair enough... if you really want to travel cheap... you need to book like 1 year ahead... if not, why should you pay premium airline price for budget flight...

AirAsia introduces new baggage policy
Published: 2010/05/10

LOW COST carrier AirAsia has introduced the Pre-booked Baggage Supersize Fees, which allow its customers savings up to 50 per cent, when they "supersize" their baggage online.

In a statement, AirAsia said the step towards revamping its baggage fee structure, is to offer more affordable rates to its customers with baggage of 20kg to 30kg.

Under the "Supersize" option online, 20kg of baggage is offered at RM30 while for non-Supersize, it is RM30 for the first 15kg and up to RM20 for each subsequent kilogramme at the counter, it added.

Its Head of Ancillary Income, Rafizah Amran said customers are often faced with problem of excessive weight and exorbitant baggage fees and last year 660,000 people paid RM91 million for excess baggage.

Customers are invited to log on to the Airline''s website at www.airasia.com to know more about the fees.

BERNAMA

MAS defers GDS differential fee
Published: 2010/05/10

MALAYSIA Airlines (MAS) has agreed to defer the implementation of the differential fee for bookings done on non-Abacus global distribution system (GDS).

The fee was supposed to be effective May 15 but the move, announced without consultations with the Malaysian Association of Tour and Travel Agents (Matta), was opposed by its members.

In a joint statement today, Matta and MAS said they had met and would work together to resolve the matter.

MAS Senior General Manager, Datuk Bernard Francis, said the carrier would make another attempt to negotiate with the GDS providers.

"Travel agents are an integral part of our business and we want to ensure that it is a win-win situation for both sides. We recognise that we should have communicated the rationale behind the new booking fee and for this, we apologise to our travel agent partners," he said.

Under the now deferred ruling, MAS tickets issued through non-Abacus GDS by travel agents will be charged US$3 per sector.

Matta President, Datuk Mohd Khalid Harun, said the association had a good dialogue with MAS and the implementation of the differential fee would be deferred.

BERNAMA

AirAsia starts flying toTeheran in July
Published: 2010/05/14
http://www.btimes.com.my/Current_News/BTIMES/articles/aimarha/Article/#ixzz0ntWm76gF

AIRASIA (5099)will be flying to Teheran, Iran, from July onwards, expanding its range of destinations in the Middle East.

Transport Minister Datuk Seri Ong Tee Keat said this will make the airline the only low-cost carrier to serve the region.

He said the flights, which will run five times a week, was consistent with the government's aim to strengthen greater air links with the Middle East.

"In the future and subject to market demands, we hope to establish greater air links with the Arab world and take advantage of the enormous economic potential the Middle East countries offer."
Malaysia Airlines currently flies to eight Arab countries including Saudi Arabia, Jordan, Oman and Lebanon at a frequency of 33 times a week, including 21 routes under the MAS codeshare policy.

"We currently have Air Service Agreements with 11 Arab countries. Of the 11, we have liberal traffic rights or no restrictions on passenger capacity, frequency and aircraft type in six countries.

The countries with liberal traffic rights are namely Bahrain, Lebanon, Oman, Qatar, the United Arab Emirates and Yemen.

"It is the government's wish that we continue to promote Malaysia as an important destination for Middle Eastern tourists," he told reporters in Kuala Lumpur yesterday.

Earlier, Ong launched the Marhaba Golden Card, a discount card targetted at Arab tourists.

The card provides users with discounts and promotions in some 200 retail outlets and restaurants and 10 hotels.

The hotels include several in Kuala Lumpur and Langkawi while the retail outlets cover a variety of products such as electrical goods, watches and cameras.

The discount card is an initiative under the Marhaba Programme which was launched in 2009 and managed by IMAF Sdn Bhd, a locally-based Arab company.

Ong said the success of the Marhaba Programme is proof of the growth in the country's tourism industry.

"The expectations of the increasing number of Arab tourists have also become more complex.

"New and unconventional methods are needed to give these tourists a more comfortable stay and to ensure that they return," he said.

Now you can pay AirAsia in any currency
Friday May 14, 2010

PETALING JAYA: AirAsia customers can now buy air tickets in their currency of choice after the low-cost carrier launched a multi-currency online sales platform.

AirAsia Group chief executive officer Datuk Seri Tony Fernandes said the enhanced sales platform would take away the uncertainty of exchange rates fluctuation for guests, making the purchase of flights more convenient, straightforward and transparent.

“We don't want our guests to have surprises when they receive their credit card statements at the end of the month,” Fernandes said in a statement.

The platform will enable guests to get instant pricing in five foreign currencies - US, Singapore, Hong Kong and Australian dollars and the British pound - and is the first Asian low-cost carrier to adopt the system.

The platform used by AirAsia, FXmicropay, is a cash management and merchant acquiring service offered by The Royal Bank of Scotland.

It supports over 60 currencies and AirAsia plans to accommodate other currencies in the future.

Guests with credit cards issued for the currencies may purchase flights on AirAsia from anywhere in the world at www.airasia.com.

In Kuala Lumpur, Transport Minister announced that AirAsia would start flying to Teheran, Iran, five times a week beginning July.

“This will bring more tourists from the region to Malaysia, hence further boosting the country's tourism industry,” he said after launching the Marhaba Golden Card here yesterday.

Oman Air, MAS to ink deal by June 1
By Presenna NambiarPublished: 2010/05/14
http://www.btimes.com.my/Current_News/BTIMES/articles/poma/Article/#ixzz0ntXoTknR

OMAN Air plans to sign a code- share agreement with national carrier Malaysia Airlines (MAS)(3786) by June 1.

"Our growth in the east has been very minimal. We have been looking for a strategic partner and MAS fits the bill," Oman Air chief commercial officer Barry Brown told reporters in Kuala Lumpur yesterday.

Currently, KL is only Oman Air's second destination in the east, the other being Bangkok. The carrier started four weekly flights between Muscat and KL on May 1.

Brown said he expects an initial load factor of 75 per cent to 85 per cent for the Kuala Lumpur-Muscat-Kuala Lumpur route.
The route will be operated by Oman Air's recently introduced Airbus A330 aircraft featuring first-class, business-class and economy-class seatings.

"We are confident that the market will grow to make it viable for us to start daily flights out of KL from early next year," he said.

Oman Air district sales manager Kathleen Leong said Malaysia and Oman recognise that there are mutual benefits to have direct flights, and the up-tick in the economies of both countries makes this a strategically smart move.

The airline is in particular targeting the pilgrimage and tourist markets.

Oman Air plans to open four other destinations this month, to Ras AlKhaimah, Al Ain, Islamabad and Lahore. The airline currently flies to 33 destinations around the world.

MAS posts Q1 profit of RM310m
Published: 2010/05/17

Malaysia’s national carrier Malaysian Airline System Bhd said today fuel hedging gains and compensation for delayed aircraft delivery helped it return to profit in the first quarter, but warned the industry was still struggling to recover.

Europe’s economic turmoil resulting from speculation that Greece may default on its debts and the fragile outlook for the global economy will continue to dampen the air travel industry, it said.

“The outlook for the second quarter 2010 remains challenging. Oil prices continue to be volatile given the uncertainty in demand and supply and volatility of the US
dollar,” Malaysia Airlines said in a statement.

The state-owned airline posted January-March net profit of RM310 million (US$97.18 million) against a loss of RM698.5 million in the year-ago quarter.

It made a gain of RM56.7 million from fuel hedging contracts during the quarter against a loss of RM557 million a year ago.

Malaysia Airlines’ fuel cost rose 42 per cent in the first quarter to RM1.01 billion as a result of the 55 per cent rise in the price of jet fuel and the company said it was 60 per cent hedged at US$100 per barrel for 2010 and 40 per cent hedged at US$100 for 2011.

Analysts generally do not provide quarterly earnings forecasts for Malaysian companies.

The average forecast of eleven analysts tracked by Thomson Reuters I/B/E/S put Malaysia Airlines’ full-year net loss at RM30.4 million before the first-quarter results were announced.

The six-day shutdown of much of European airspace from the Icelandic volcanic eruption in April is estimated to cost carriers as much as US$1.7 billion in lost revenues, global airlines body IATA said earlier this month.

But airlines are still expected to fare better financially this year, with share prices and fares up, said IATA.

Three out of 14 analysts tracked by Thomson Reuters I/B/E/S have a “strong buy” rating on Malaysia Airlines, with five calling it a “hold”, four rating it an “underperform” and two others rating it a “sell”.

Shares of Malaysia Airlines, with a market value of US$2 billion, are down 9.2 per cent so far this year, lagging the 4.4 per cent gain in the broader market index and much worse than the 6.5 per cent fall in budget carrier AirAsia. -- Reuters

MAS resumes flights to London, Amsterdam
Published: 2010/05/17

Malaysia Airlines (MAS) flights disrupted by the Icelandic volcano eruptions will resume after the re-opening of the airspace in the United Kingdom and Amsterdam.

Flights to other points in Europe were unaffected, it said in a statement here today.

MAS said the following flights would operate on schedule today (May 17) -- Kuala Lumpur-London (MH2) 11.40pm (Malaysian time), KL-Amsterdam (MH16) 11.55pm (Malaysian time) and tomorrow (May 18) London-KL noon (local time).

It said the KL-London (MH4) flight, which was supposed to depart at 10am (Malaysian time) has been rescheduled to depart at 12.40am (May 18 as MH4D) and was expected to arrive in London 6.50am, May 18 (local time).
Besides that, flight from Amsterdam to KL (MH17), which was supposed to depart at noon (local time) will depart from the city at 3pm (local time) and arrived in KL at 9am tomorrow, it said.

MAS said the London-KL (MH1D) flight would depart tomorrow at 9am (local time) and arrive at 4.10am (Malaysian time) on Wednesday.

Passengers on flights to KL from London (MH3 & MH1) would be transferred to MH1D, it said.

Passengers are advised to check the flight status at www.malaysiaairlines.com before proceeding to the airport.
Alternatively, they can check the status of their flights through MAS Call Centre 1300-88-3000 (within Malaysia) +603-7843000 (outside Malaysia).

For London and Amsterdam, passengers can contact MAS reservations offices for the latest schedules at these numbers: +44 (0) 8714239090 (London) and +31 205216250 (Amsterdam). - Bernama

MAS to benefit from traffic, network growth
Published: 2010/05/18
http://www.btimes.com.my/Current_News/BTIMES/articles/20100518125900/Article/index_html#ixzz0oG0HmDv5

Malaysia Airlines (MAS)'s growing traffic and its network expansion is expected to benefit the national carrier this year, MIDF Research said today.

Against this backdrop, it upgraded the recommendation for MAS to neutral with a revised target price of RM2.10 from RM2.05 previously.

However, the research house said the uncertainty of the volcanic ash release affecting Europe may further impact the airline despite its better performance in the first-quarter.

"Although its good performance suggests a higher re-rating, we believe there is still uncertainty in relation to the situation in Europe as the volcano continues its sporadic ash release," it said.
Meanwhile, OSK Research said the first-quarter performance was artificially higher due to the RM329 million compensation from Airbus due to delivery delay as well as a marked-to-market gain of RM56.7 million for fuel hedging.

It said MAS's core net loss of RM75.6 million in the first-quarter was way below its full-year profit estimates and market expectation of a loss of only RM50.3 million for financial year 2010.

"While we expect further improvement in air traffic and yield, especially after a seasonally weak quarter, the key drawback is still the stock's already rich valuation," it added. The research house reiterated its sell recommendation on the airline with a 12-month target price of RM1.50. -- Bernama

AirAsia offers a million free tickets
Tuesday May 18, 2010

PETALING JAYA: Low-cost carrier AirAsia is giving travellers a reason to cheer - the airline is giving away a million free seats starting today.

The booking period for the “Free Seats” promotion begins today until Sunday, for travel between Jan 3 and May 8 next year.

Customers can choose from 130 destinations to 20 countries including India, Thailand, Indonesia, Laos, Singapore, the Philippines, Vietnam and China.

The promotion offers various “all-in fares” which are applicable for one-way travel inclusive of airport tax, with certain terms and conditions.

AirAsia's regional commercial head Kathleen Tan said many enquiries had been made on the airline's social platform about the promotion.

“This is the best chance for our guests to plan and book their flights for their travel plans next year and take advantage of Kuala Lumpur's status as a gateway to Asia, Australia and Europe to connect globally,” she said in a statement yesterday.

To complement the free flights, Tan added that AirAsia's one-stop travel portal was also offering online hotel deals from 70,000 hotels worldwide, tour packages and free tours and transfers to selected destinations via AirAsiaGo at www.airasiago.com.

For more information on free seats and other promotions, visit www.airasia.com or mobile.airasia.com.

AirAsia offers one-way fare of A$378 from Australia to London via KL
May 19, 2010, Wednesday

MELBOURNE: AirAsia is offering a one-way fare from Australia to London via Kuala Lumpur for A$378, as part of a special network sale that sees virtual giveaway fares as low as A$3 a flight.Also, Tiger Airways is vowing to keep pushing down domestic air fares and has its eyes on expanding services that may include the Pacific Islands and flights to Indonesia, the Sydney Morning Herald reports.

As of yesterday until May 23, AirAsia is offering cut-price fares to 70 of its destinations, for travel between Jan 3 and May 8 next year.

An airline spokesman told the newspaper “tens of thousands” of seats were being offered in the sale across the AirAsia network.

AirAsia is also selling seats from Melbourne, Gold Coast or Perth to Kuala Lumpur from A$129. Fares include mandatory taxes and charges.

Return fares from London to Australia may not be identical (airport taxes differ) but are similarly low.

AirAsia has A$3 fares available on the routes of Kuala Lumpur to other Malaysian destinations, including Langkawi, Kuching and Penang, with A$9 and A$18 fares to other parts of Asia. The cheapest fares are for bookings made through the AirAsia website only. — Bernama

AirAsia's Thai listing plans still on
Published: 2010/05/20

LOW-COST carrier AirAsia Bhd will continue with its plan for a dual listing in Thailand despite the political crisis in that country, said its Group Chief Executive Officer (CEO), Datuk Seri Tony Fernandes.

"A crisis will come and go. But our listing plans are still afoot," he told reporters on the sidelines of the Sixth World Islamic Economic Forum (WIEF) today.

He said the listing would happen once the political environment in Thailand shows recovery.

Fernandes, however, said there was no time frame or schedule for the listing.
On its operations in Thailand, he explained that the airline had a good sales period but obviously, it has fallen in the last two months.

"We will bounce back. The power of recovery in Asia is strong as we have undergone many crisis before," he added.

Earlier during the Global CEO Panel session, Fernandes said there was a need to spend on branding, as it is an important aspect of company performance and achievement.

The session, The New Game Plan:Thriving In a Post Crisis World, was moderated by FBC Media President, John Defterios.

"It is important to innovate and create a better environment.In AirAsia, we have spent a lot for branding," Fernandes stated.

In order to build branding worldwide, he said AirAsia had maximised its sponsorship programme.

The airline he explained had recently sponsored the Formula One Team and also became the official low-cost carrier for English Premier League team, Manchester United.

He said the airline will continue with efforts to capture a better slice of market share in the low-cost carrier segment.

BERNAMA

AirAsia's inaugural Bangalore flight sees full load
Written by Melody Song Thursday, 20 May 2010 20:51
http://www.theedgemalaysia.com/business-news/166502-airasias-inaugural-bangalore-flight-sees-full-load.html

SEPANG: Low-cost carrier AIRASIA BHD [] on Thursday, May 20 launched its inaugural flight to Bangalore, India with a 100% load on its new Airbus A321 aircraft.

In a statement on Thursday, it said the sector was witnessing a load factor of almost 85% in the first few weeks. It is offering all-in fares from RM25 one-way from Bangalore as part of its recently-announced offer of one million free seats.

"The daily service is expected to cater to significant traffic including business and leisure travellers as well as students to and from the tech-hub in southern India," said AirAsia regional head of commercial Kathleen Tan in a statement on Thursday.

"In addition to this, the service is also expected to cater to and promote medical tourism in Bangalore. AirAsia foresees a huge demand from the health sector with patients seeking medical assistance from institutions based in Bangalore."

On its inaugural flight from Kuala Lumpur, AirAsia carried 15 children with congenital heart disease requiring open heart surgery, the airline said.

The children would be operated on at Narayana Hrudayalaya Heart Institute, Bangalore, the world's largest heart hospital for children.

Bangalore is AirAsia's seventh Indian destination after Trivandrum, Kolkata, Chennai, Kochi, Tiruchirappali and Mumbai.

The booking period for the free seat promotion runs until Sunday. The travel period is from Jan 3 to May 8, 2011.

AirAsia to proceed with Thai listing
Published: 2010/05/21
http://www.btimes.com.my/Current_News/BTIMES/articles/azwief/Article/#ixzz0oZXo6uqK

LOW-COST carrier AirAsia Bhd (5099) will continue with plans for a dual listing in Thailand but will do so once the political environment there shows sign of recovery.

"Plans are still afoot. Crisis comes and goes," said its group chief executive officer Datuk Seri Tong Fernandes.

He said sales in Thailand slowed down in the last two months due to the uncertainties in that country and expects to have a tough time with its operations there up to July.

AirAsia has yet to set a date for the listing.
"Powers of recovery in Southeast Asia are very strong. We will help Thailand to bounce back. We owe it to the people there," he told reporters on the sidelines, after the Global CEO session at the World Islamic Economic Forum in Kuala Lumpur yesterday.

AirAsia has harboured plans of listing abroad since the inception of its Thailand and Indonesian associate airlines some six years ago.

The plan is to list AirAsia group in Thailand first before going forward with plans to list in Indonesia. This is line with its vision in becoming a full-fledged Asean airline.

Simply the best again! AirAsia is World’s Best Low Cost Airline

KUALA LUMPUR, 20 MAY 2010 – The world’s air travelers have spoken: AirAsia is the world’s best low-cost airline -- again.

In the annual global survey conducted by respected London-based aviation consultants Skytrax, almost 18 million travelers polled worldwide chose AirAsia as the World’s Best Low Cost Airline for the second consecutive year. AirAsia came out tops in the independent survey that measures airlines’ product and service standards.

AirAsia Chairman Dato’ Abdul Aziz Abu Bakar accepted the award on behalf of the airline at the ceremony in Hamburg, Germany, Thursday. In the same ceremony, AirAsia was also named Best Low Cost Airline Asia.

Dato’ Sri Dr Tony Fernandes, AirAsia Group CEO, said, “We are proud to be recognised as the world’s best for a second consecutive year. The Skytrax award is very special to us because it is voted on by passengers. It reaffirms once again that we are the People’s Champion.”

“The award is public and global recognition for the efforts of my colleagues, the AirAsia Allstars. They are the foundation of AirAsia’s success. The dedication, commitment, creativity and hard work they display every day, day in and day out, enable AirAsia not just to compete but also succeed on the global stage. And we’re just over eight years old!” Fernandes added.

AirAsia’s superstar status rides on the wings of its consumer-friendly products and services, including low fares, a modern fleet, an extensive network and great flight frequencies, convenient booking and payment channels, and choose-your-own features for meals, seats and baggage allowances.

The airline is known for its innovations, popularizing technology-backed travel services such as web bookings; web, mobile and kiosk check-in services; and the use of real-time interactive platforms such as YouTube, blog, Facebook and Twitter in communicating with guests.

AirAsia’s operations are anchored in its mission to democratise travel, encapsulated in its tagline Now everyone can fly. It has ferried more than 92 million guests to date. AirAsia has also established itself as the Truly Asean (Association of Southeast Asian Nations) airline, with its unmatched connectivity in the region and its “sky bridges” – routes – that link the capitals and communities of Southeast Asia to each other and beyond.

Since its launch as a Low-Cost Carrier in late 2001, AirAsia has grown from 250 employees, two aircraft and one destination to an Asean-wide Group with almost 7,500 employees, 92 aircraft and more than 65 destinations. AirAsia has been operationally profitable from day one of its launch as a low-cost carrier. Together with its low-cost, long-haul affiliate AirAsia X, the airline now links three continents – Asia, Australia and Europe.

AirAsia offers a million free tickets
Tuesday May 18, 2010

PETALING JAYA: Low-cost carrier AirAsia is giving travellers a reason to cheer - the airline is giving away a million free seats starting today.

The booking period for the “Free Seats” promotion begins today until Sunday, for travel between Jan 3 and May 8 next year.

Customers can choose from 130 destinations to 20 countries including India, Thailand, Indonesia, Laos, Singapore, the Philippines, Vietnam and China.

The promotion offers various “all-in fares” which are applicable for one-way travel inclusive of airport tax, with certain terms and conditions.

AirAsia's regional commercial head Kathleen Tan said many enquiries had been made on the airline's social platform about the promotion.

“This is the best chance for our guests to plan and book their flights for their travel plans next year and take advantage of Kuala Lumpur's status as a gateway to Asia, Australia and Europe to connect globally,” she said in a statement yesterday.

To complement the free flights, Tan added that AirAsia's one-stop travel portal was also offering online hotel deals from 70,000 hotels worldwide, tour packages and free tours and transfers to selected destinations via AirAsiaGo at www.airasiago.com.

For more information on free seats and other promotions, visit www.airasia.com or mobile.airasia.com.

this is trully amazing, booked free CGK-KUL, KUL-BKK, BKK-SGN in March 2011.

Thanks Air Asia!

http://farm2.static.flickr.com/1424/4606924359_286971517c_b.jpg

I wonder why Malaysia Airlines doesnt fly to Buenos Aires from Kuala Lumpur with just one stop... At the moment it stops in Johannesburg and Cape Town. Is it for commercial reasons or what? A friend of mine flyed on the route and said it had a great ocuppation and It's really important for cargo traffic also, as many polo horses are taken to Asia through this airline. Thanks

AirAsia plans Thai IPO, dual listing
Published: 2010/05/31
http://www.btimes.com.my/Current_News/BTIMES/articles/20100531120538/Article/index_html

AirAsia Bhd, Southeast Asia’s biggest budget airline, is considering an initial public offering of its unit in Thailand next year amid a surge in leisure travel in the region.

Sepang, Malaysia-based AirAsia, whose shares are now traded in Kuala Lumpur, is separately considering a dual listing of its shares in Thailand, Thai AirAsia Chief Executive Officer Tassapon Bijleveld, said in an interview in Bangkok. He didn’t elaborate.

Budget airlines in Asia-Pacific are expanding as travel within the region overtook intra-North America as the world’s biggest aviation market last year. Tiger Airways Holdings Ltd, a discount carrier part-owned by Singapore Airlines Ltd, raised S$233 million (US$166 million) in an IPO in January as carriers in Vietnam and Indonesia also consider fund-raising plans.

AirAsia gained as much as 4.3 per cent to RM1.22 and traded at that price at 11:20 a.m. in Kuala Lumpur. The shares have fallen 12 per cent so far this year. -- Bloomberg

AirAsia bags ICT award
Published: 2010/05/31
http://www.btimes.com.my/Current_News/BTIMES/articles/aa30/Article/

AMSTERDAM: MALAYSIAN low-cost carrier AirAsia Bhd (5099) has won the private-sector category of the World Information Technology and Services Alliance (Witsa) ICT Excellence Award presented in conjunction with the World Congress on Information Technology (WCIT 2010) here.

In a statement last Saturday, Witsa said that AirAsia had demonstrated the strategic value of information and communications technology (ICT) in improving competitiveness, with a very high majority of its passengers making their bookings online.

AirAsia was also the world's first airline to allow SMS (short messaging service) booking and payment of airline tickets.

The other recipient of the private-sector award was Mondero, a leading means of payment in the micro-payment segment in Argentina. - Bernama

AirAsia to transfer debt to foreign units
Published: 2010/06/03
http://www.btimes.com.my/Current_News/BTIMES/articles/20100603093030/Article/index_html#ixzz0pl3VD9PV

AirAsia Bhd, Southeast Asia’s biggest discount carrier, plans to transfer some of its debt to its units in Indonesia and Thailand as part of a plan to restructure its finances, chief executive officer Datuk Seri Tony Fernandes said in an interview in Kuala Lumpur today.

The company also plans to list the units after the restructuring is completed, he said.

Fernandes also said AirAsia's load factor is “very strong”.

AirAsia will reduce plane deliveries from 24 to 10 to 14 a year, he added.

The company will add 12 planes a year to its fleet to meet strong demand, he said.

The shares of AirAsia climbed the most in a week in Kuala Lumpur trading, rising 5 per cent to RM1.26 at 9:26 am local time, set for their biggest advance since May 27. -- Bloomberg

AirAsia X offers free seats again
Published: 2010/06/09
http://www.btimes.com.my/Current_News/BTIMES/articles/20100608234421/Article/

AIRASIA X is offering free seats to destinations like London and Taipei to commemorate its next growth phase after carrying two million people since November 2007.

Other destinations are Tianjin, Hangzhou, and Chengdu in China, Gold Coast, Melbourne, Perth in Australia and Mumbai and Delhi in India, it said in a statement.

Booking will just be for 48 hours from June 9 and for travel period from October 11 to November 14, 2010.

Promotional seats are limited and available on first-come, first-served basis and made exclusively online via www.airasia.com and mobile.airasia.com.

AirAsia X plans IPO next year
By LEONG HUNG YEE Wednesday June 9, 2010

Long-haul budget carrier to become stand-alone airline

SEPANG: Long-haul budget carrier AirAsia X Sdn Bhd is planning an initial public offering (IPO) in the second half of 2011, subject to market conditions.

However, where it will be listed and the size of the IPO have not been determined.

AirAsia Bhd group chief executive officer Datuk Seri Tony Fernandes said AirAsia X would restructure itself to become a stand-alone airline.

“There have been talks on whether AirAsia X will be merged with AirAsia. We studied the best scenario and decided to let AirAsia X become a stand-alone company and be more focused on its business.

“This move will allow both AirAsia and AirAsia X to pursue a clearer and more focused business strategy,” he said at a briefing here yesterday.

Under the restructuring, AirAsia X will take over employment of its own pilots, cabin crew and ground staff.

The announcement is expected to alleviate AirAsia’s concerns that the company is funding the growth of the privately-owned AirAsia X.

Fernandes said investors were concerned over speculation that AirAsia and AirAsia X would be merged and wanted to make it clear that AirAsia would not be funding AirAsia X.

“There has been an overhang on AirAsia and whether it is going to take on the financing of the aggressive expansion of AirAsia X. AirAsia will not be funding AirAsia X. It will be funded separately though an IPO,” he said.

AirAsia X chief executive officer Azran Osman Rani said an airline required capital to grow, hence it needed to raise money instead of remaining as a private entity. He said funds raised from the IPO would be used to fund its fleet expansion.

Fernandes said the carrier was “starting the process” and there was not much detail yet.

AirAsia X has yet to appoint any advisors or investment bankers.

“We need to delivery profits this year to show investors our track record,” Azran said, adding that AirAsia X started at end-2007.

AirAsia X posted revenues of RM720mil and RM231mil for the financial year ended Dec 31, 2009 and 2008 respectively. Net profit last year was RM87mil and the airline is targeting a net profit margin of some 7% this year.

Azran said the carrier intended to double its revenue this year and was hopeful of hitting RM2bil in 2011.

AirAsia X has recently completed its RM100mil rights issue to reduce its debt. Its gearing stands at 260% currently.

Fernandes said AirAsia would still support AirAsia X and might profit-share on some routes although AirAsia would focus on destinations below four hours of flight time.

Azran said AirAsia X had received approval from authorities to fly to Tokyo but was still awaiting approval from Japanese authorities.

He added that the airline was evaluating the possibility of flying to a destination in continental Europe early next year as well as restarting some Middle East routes.

Asked when AirAsia would begin to fly to the United States, Azran said: “I don’t think US market is realistic this year but next year maybe.”

Fernandes said AirAsia X and AirAsia combined could eventually be as large as Singapore Airlines.

“If you look at Cathay Pacific and Singapore Airlines, they do not have the connections that AirAsia provides (to AirAsia X),” he said.

AirAsia X currently operates a fleet of eight aircraft – six A330s and 2 A430s. It will be taking delivery of three more A330s by the end of the year. It has also ordered 17 more A330s and 10 A350s to be delivered from next year till 2020.

Fernandes said AirAsia’s gearing was necessary to fund expansion. AirAsia has a net gearing ratio of 2.25 and is looking to slow down aircraft delivery to maintain its gearing level and transfer the debts of its Thai and Indonesian operations back to the respective countries.

“If I had listened to analysts and had five planes a year, Tiger (Airways) would crush us by now. But now, I can slow down our growth because we have reached a size where no one can touch us,” he said.

While AirAsia X is pursuing the strategy of becoming a stand-alone airline, it will continue to use the AirAsia brand as part of its 30-year brand licence agreement and the airasia.com website for a single ticketing of AirAsia and AirAsia X.

Meanwhile, AirAsia X is offering free seats to all its destinations for the first time. The free seats offer is in commemoration of AirAsia X’s move into its next growth phase with 2 million guests carried to date since its inception in November 2007.

The booking period is for today (June 9) and tomorrow for the travel period from Oct 11 until Nov 14 this year.

An aviation analyst from a local brokerage said it was good to hear that AirAsia would not fund AirAsia X’s expansion at its own expense.

“However, it is too early now to come out with the fair value for AirAsia X. We just have to wait for further announcement,” he said.

Another industry analyst agreed that it was good to know AirAsia X expansion was going to be via the market but he said more details were needed for valuation.

“We do not know the exact shareholding structure apart from the 15% held by its parent company with the option to increase. We also do not know the percentage of its shares to be floated but we do anticipate great news from this IPO if it materialised,” he said, adding that the current financial result for AirAsia X also remained to be seen.

AirAsia wins air cargo industry award
Published: 2010/05/11
http://www.btimes.com.my/Current_News/BTIMES/articles/20100611140434/Article/index_html#ixzz0qQtsQrQp

AirAsia became the first low-cost airline to win the Air Cargo Industry Newcomer of the Year Award 2010, at the Air Cargo Week (ACW) World Air Cargo Awards held today in Shanghai.

The award was presented by Air Cargo Week, a respected UK-based publisher of a weekly newspaper on the air cargo industry.

AirAsia emerged tops in a global survey that polled industry peers and shippers.

"This award signifies the growing confidence and belief in the AirAsia cargo product and services," said AirAsia's Regional Head of Cargo, Sathis Manoharen, in a statement here today.

The airline said it is strengthening cargo operations in part to protect its bottomline against fluctuations in fuel prices.

AirAsia has been tying up with more cargo agents and large export-import firms in the markets it flies.

It is also reaching markets beyond its current route network through other airlines with which it has special pro-rate agreements. -- Bernama

AIRASIA ANNOUNCES NEW DIRECT DAILY FLIGHTS FROM KL TO YANGON
KUALA LUMPUR, June 14 (NNN-Bernama) -- Low-cost carrier AirAsia is extending its route network to another Southeast Asian country, with direct daily flights to Yangon, Myanmar,from July 20.

To celebrate the introduction of the new route, the airline is offering all-in-fares for Kuala Lumpur - Yangon, from as low as RM29 one way.

"Booking starts from June 14 to June 20, for the travel period of July 20 to May 8, 2011.

"Promotional seats are limited and available on a first-come, first-served basis and made exclusively online via www.airasia.com," AirAsia said in a statement here Monday.

The new route will be serviced by a Airbus A320 aircraft with a 180 passenger capacity.

"Myanmar will see a big boost in tourist entries with this direct daily flight from Kuala Lumpur to Yangon.

"Customers from Europe, China, India, Australia and around the Asean region utilising our Kuala Lumpur hub now, have a more affordable option to travel to Myanmar," AirAsia's Regional Head of Commercial, Kathleen Tan said.

AirAsia's foray into Myanmar completes the 10 countries under the Asean network.

The low-cost carrier currently flies to Yangon from its Bangkok hub with daily flights. http://namnewsnetwork.org/v2/read.php?id=123658