AirAsia seen to grow 80% a year


BY C.S. TAN

BUDGET airline AirAsia will be able to grow its passenger numbers, fleet size and net earnings by about 80% a year over the next three years, an analyst says.

The airline, including 49%-owned Thai AirAsia, carried 2.8 million passengers in its financial year ended June 30 (FY04). Its passenger volume is expected to triple to 8.5 million in FY05 and to rise further to 13.5 million in FY06.

This extraordinary rate of growth is attributed to a boom in low-cost regional air travel. The buoyant business condition arises from rising incomes and affordable air travel in the region.

A high growth rate will lift valuations for AirAsia's initial public offering (IPO) exercise and, later, its share price. The company announced last week it received approval from the authorities for a listing on Bursa Malaysia. The airline will make a public issue of 700 million shares of 10 sen each. It is expected to disclose the offer price at an underwriting ceremony today.

In the past, the demand for air travel was largely determined by economic growth and income levels. This has changed in recent years, as global demand is now also being driven by budget prices. Low-cost carriers (LCCs) like AirAsia have provided this impetus for demand.

To cater for the increasing passenger traffic, AirAsia, together with ThaiAsia, is expected to expand its fleet from 18 aircraft presently to 54 by FY07.

The group's net profit is estimated at RM50mil in the current FY05. This is believed to be quite a close estimate as the group has hedged the bulk of its fuel requirements until the end of this financial year.

Going forward, the analyst forecasts AirAsia to be able to raise its earnings to RM300mil by FY07 if jet fuel prices drop from the current US$55 a barrel to around US$38, which he believes is a more sustainable price.

On the basis of a forecast of AirAsia's earnings for the 2005 calendar year and a price earnings multiple (PE) of 22 times, the airline would be worth RM4bil, he says. He used this rich PE to reflect the growth stage the company is in. The airline is expected to price its IPO to value the company at RM3bil, he adds.

It is a particular concern to some observers that a number of other budget airlines have emerged in the region. AirAsia will be able to hold its own, the analyst says, as it is believed to have the lowest cost structure among these LCCs. Hence, AirAsia is able to price its seats lower than those of these competitors.

http://img3.exs.cx/img3/7457/AirlinersNetPhotoID638124.jpg

Published October 12, 2004

Malaysia's AirAsia to raise US$211m in IPO

KUALA LUMPUR - Malaysian low-cost airline AirAsia has unveiled plans to raise 800 million ringgit ( US$211 million) in an initial share offer to help fund a fleet expansion.

AirAsia wants to increase its fleet nearly fourfold and challenge Asia's established airlines on lucrative routes.

Chief Executive Tony Fernandes said the carrier, which started just about three years ago, would sell a total of 701 million new shares, 80 per cent going to institutions and the rest to retail investors.

Mr Fernandes has said the Kuala Lumpur-based AirAsia, which currently owns 22 planes, needs up to 80 more over the next four to eight years as it expands to more destinations across Asia.

The company's joint venture with Thailand's Shin Corp, called Thai AirAsia, plans to fly to Kunming, China starting December from Bangkok.

This would make AirAsia the first budget carrier to break into China's previously tightly controlled market.

On the proposed IPO, Mr Fernandes said the carrier would offer shares to retail investors at an indicative price of 1.40 ringgit a share.

Institutional investors normally pay a premium to the final retail price.

The IPO prospectus is to be issued this month and the shares are scheduled to list in November.

Since its launch, AirAsia has severely cut into flagship carrier Malaysia Airlines' business in the short-flight regional sector.

AirAsia carried 1.8 million passengers in 2003 and expects 3.2 million passengers this year, rising to 6 million in 2005.

AirAsia's planned listing will likely be a barometer of investor interest in aviation while the industry grapples with surging fuel prices and intense competition among airlines.

Some stealing infos from my friend that works in Airasia jakarta, next year Air Asia Indonesia will start to operate, consists of 14 Boeing 737s, the shares 50% owned by Sampoerna (a leading cigarretes comp) and the rest Airasia.

The routes are mainly domestic.

Airasia is now serving 5 cities in Indonesia. Jakarta, Surabaya, Bandung, Medan, Bali and soon padang in november.

cheers

AirAsia buys Indonesian airline: Report

KUALA LUMPUR (AFP): Malaysia's budget carrier AirAsia has acquired a private airline in Indonesia and will team up with a local partner to launch new flights to tap into Southeast Asia's most populous nation, a report said on Sunday.

AirAsia bought PT AWAir Internasional for a token two dollars, business weekly The Edge quoted sources as saying.

It plans to tie-up with an unidentified partner to launch a no-frills airline in a set-up similar to that of Thai AirAsia, where Thai media and telecommunications group Shin Corp. holds acontrolling 51 percent stake, the sources said.

AirAsia officials were not available for comment but the company's executive director Kamarudin Meranum last week told the New Straits Times daily that the airline was waiting for the Indonesian government to issue a license to allow it to set up a budget airline.

The Edge said AWAir began operations in June 2000 but suspended them two years later because of fierce competition from some 50 airlines now servicing domestic routes following the deregulation of the aviation sector.

It was unclear if AWAir has the rights to fly international routes but its start-up mirrored AirAsia's beginnings in Malaysia, when private firm Tune Air took over all of AirAsia's 40 million ringgit (US$10.5 million) in debts and two aircraft for a token one ringgit in 2001.

After revamping the airline into a low-cost model, AirAsia began making profits in seven months and now flies to 30 destinations in Malaysia and the region, including Singapore, Thailand, Indonesia and Macau. It hopes to fly to China by the year-end.

The carrier last week said it expected to raise some 800 million ringgit in next month's initial public offering, billed as Malaysia's largest listing this year, to fund the acquisition of 80 new aircraft.

For its financial year to June 2005, AirAsia expects net profit to surge threefold to 160 million ringgit on a turnover of 700 million ringgit, The Edge said. (**)

Hmm...seem like Airasia's JB-KL route is rather popular......they've raised the regular fares to RM65.99 (RM84.99 including tax)..........

20 October 2004

AirAsia eyes Australia with stake in Indonesian carrier
KUALA LUMPUR : Malaysia's budget carrier AirAsia has announced plans to fly to Australia with the acquisition of a private airline in Indonesia with the launch of its initial public offering (IPO).

Pahamin Rajab, AirAsia chairman, said Jakarta would be the hub for the latest budget carrier's joint-venture after it bought PT AWAir Internasional for a token two dollars.

"We will be flying domestic routes in Indonesia and beyond. Our planes will go to places with a flying time of three and a half hours. Australia is within that flying time," he told reporters.

In its prospectus, AirAsia forecast a net profit of sme 160 million ringgit (42.1 million US dollars) for the year to June 2005.

The airline, which is offering the public shares at 1.40 ringgit each or nearly 19 times its expected earnings per share of 7.47 sen (cents), will list November 22 after Malaysia's biggest IPO this year.

Pahamin said approvals from the Indonesian government were expected to be concluded by year-end. AirAsia would hold a 49 percent stake in the business and an Indonesian partner 51 percent.

It would be similar to that of Thai AirAsia, where Thai media and telecommunications group Shin Corp. holds a controlling 51 percent stake.

Tony Fernandes, chief executive officer, in a recorded message at the IPO launch, said the Indonesian carrier would begin service at the latest in early 2005.

"We hope the operation can start by the end of the year or early next year. It is a massive market," he said.

Highlighting AirAsia's growth prospects, Fernandes said AirAsia hopes to set up similar joint ventures in China and the Philippines.

"We are in negotiations with people in China and the Philippines," he said.

AirAsia currently flies to Macau, the former Portuguese colony in southern China, from Bangkok and is expected to launch more flights to the area and India.

AirAsia, which has a fleet of 24 Boeing 737 aircraft, currently operates 322 flights a week from Kuala Lumpur International Airport to 14 domestic and eight international destinations.

Rising oil prices do not seem to worry the carrier, which said it has hedged its needs up to next June.

"We have come a long way, we do not have any specific fear," Fernandes said.

AirAsia said it had hedged fuel at 42 dollars per barrel for the six months to December and at 36.96 dollars for the second half to June 2005.

Kamarudin Meranum, executive director, told AFP that the low cost carrier does not plan to impose fuel surcharge.

"We will try to avoid that," he said while Pahamin noted the carrier would try to expand load factors and increase revenue.

AirAsia's IPO involves some 700 million shares, of which 583.76 million are new and 116.75 million are existing shares offered by its major shareholders.

The public portion of the IPO comprises 140.1 million shares, tentatively priced at 1.40 ringgit a share, while the institutional portion of 560.41 million shares will be price through a book-building exercise.

Based on the indicative price of 1.40 ringgit each, Air Asia said it will raise gross proceeds of 864.01 million ringgit.

AirAsia plans to use the funds from the IPO to increase its fleet to 80 aircraft with Boeing and Airbus competing for the business.

Kamarudin said AirAsia had conducted a preliminary study on both and a decision could be made early 2005 after it receives a formal proposal from the two manufacturers. - AFP

Copyright © 2004 Agence France Presse. All rights reserved.

Damn, you beat me to it ! I was about to post that news :lol:

Anyway, good news, I thought the HUB will be Bali, since Australian visited Bali very often, but this is maybe because next year Jakarta will build terminal 4 for budget carrier.

cheers

Business Times - 28 Oct 2004

Oil, competition could hit AirAsia shares

By VEN SREENIVASAN

SHARES of Malaysian low-cost carrier AirAsia could be weighed down by sky-high fuel prices and the abundance of cut-throat competition, players say.

Analysts in Kuala Lumpur have pegged the 12-month price target for AirAsia's shares at between RM1.40 and RM1.48 - barely 6 per cent above the indicative bookbuilding offer price of RM1.40.

Mayban Securities has a target of RM1.48 for the stock, while OSK Research sees it at RM1.40 to RM1.48. Most other brokers are within this range.

New Straits Times yesterday quoted Malaysian brokers as saying at the indicative retail offer price, the shares are fairly valued.

'For 2006, based on the offer price of RM1.40, Air Asia's shares are being offered at a 2006 price-earnings ratio of 16.2 times, based on fully-diluted EPS of 8.7 sen,' Mayban Securities said in a research note. 'The valuations are also relatively in line with regional peers, which are currently trading at a prospective 2006 PER of 15.1 times.'

AirAsia is offering 700.5 million ordinary shares of 10 sen each, of which 116.8 million are set aside for the public and 560.4 million have been offered to institutional investors in a bookbuilding exercise. The rest have been distributed to directors and business associates. The bookrunners for the institutional offering are RHB Sakura Merchant Bankers, Credit Suisse First Boston (Hong Kong) and ECM Libra Securities. The offer closes today.

The carrier was founded by Tony Fernandes, whose Tune Air took over Air Asia's debts of RM40 million and two aircraft for a token RM1 in 2001. Since then, the company has grown rapidly. It now has 24 aircraft doing 322 flights a week from Kuala Lumpur International Airport to 14 domestic and eight international destinations.

The IPO will see Tune Air's stake fall to 44.8 per cent from 64.6 per cent, while other major shareholders will collectively own 14.8 per cent.

But the big concern for most analysts is rising fuel costs. AirAsia has projected net earnings of RM159.9 million (S$70.4 million) for its financial year ending June 2005 - but this projection is based on oil prices of US$51 per barrel and US$45 per barrel for the six months to December 2004 and June 2005 respectively. The oil price has soared 63 per cent this year and now stands at a record US$62 a barrel. Fuel now accounts for more than 40 per cent of AirAsia's total costs, up from about 30 per cent earlier this year.

'It's tough to see how they are going to meet the estimates at the rate fuel prices are rising,' said Shukor Yusoff of S&P MarketScope.

Mr Fernandes has previously said the airline is 80 per cent hedged - though he did not say at what price.

There is also concern that after enjoying a strong run in the past two years, AirAsia is now up against strong competitors with deep pockets such as Singapore Airlines associate Tiger Airways and Qantas associate Jetstar Asia.

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

November 01, 2004

AirAsia may have to trim fleet plans

IPO proceeds fell far short of target: analysts

KUALA LUMPUR - AirAsia's expansion plans may be hindered after the discount carrier failed to raise as much money as it had sought in an initial share sale, fund managers said.

AirAsia raised RM863 million (S$377.8 million) in its share sale last week, less than its RM1 billion target. Institutional investors paid RM1.25 a share, the company said in a statement after the market closed last Friday. Individuals bought the shares at RM1.16 each.

"They may have to readjust their plane leases," said Mr Raymond Tang, who helps to manage the equivalent of US$1.1 billion (S$1.8 billion) as chief investment officer at Commerce Asset Fund Managers in Kuala Lumpur. "It might hinder plans to buy planes."

AirAsia executive director Kamarudin Meranun declined to comment.

AirAsia was trying to tap investors for funds as record oil prices have been driving the costs of jet fuel higher and at a time when as many as nine discount airlines plan to start operations. AirAsia wants to expand its fleet and add regional hubs in Indonesia and China.

AirAsia, which needs more, and more efficient, aircraft to help save on fuel costs, plans to buy 12 aircraft from Boeing Co, increasing its fleet to 36 by June and then adding as many as 80 planes starting the following year.

"It might put them back two or three planes, but if you're talking about 20 or 30, it's just a small amount," said Mr Teoh Kok Lin, managing director of Singular Asset Management Sdn.

The airline sold 700.5 million shares, around a third of its enlarged share capital, and is scheduled to list on the main board of Malaysia's Exchange on Nov 22.

"We still got a price-to-earnings ratio of 18.5, higher than any other low-cost carrier," chief executive Tony Fernandes said in a telephone text message earlier.

He could not be reached yesterday to comment on whether the smaller-than-planned share sale would affect expansion plans.

The carrier said on Oct 20 in its sale document that oil prices will rise to around 43 per cent of its operating expenses in its fiscal year ending June, 2005, from around a third of costs during its first three years of operation.

"They may have less available cash in hand now, but it should be enough to buy the planes they need," said Mr Chong Sui San, who helps to manage the equivalent of US$368 million at Allianz General Insurance Malaysia Bhd. - Bloomberg

Copyright © Singapore Press Holdings, 2004. All rights reserved.

03 November 2004
Malaysian budget carrier AirAsia's expansion plan on track: official

KUALA LUMPUR : Malaysian budget carrier AirAsia's plan to acquire some 80 new aircraft is on track despite its initial public offering (IPO) raising less funds than first indicated, a senior official said Wednesday.

AirAsia set the price for the institutional tranche of its IPO at RM1.25 per share and the retail tranche at RM1.16, well below the indicative price of RM1.40.

AirAsia Executive Director Kamarudin Meranum told AFP that the issue price for the institutional and retail tranches was "more than enough to fulfill our expansion plan and to build up our war chest.

"The board believes that the minimum value of the company is 1.20 ringgit (per share), in line with the IPO price," he said, when asked to comment on fears that the carrier's expansion plans may suffer.

AirAsia said previously that it planned to use the funds from the IPO to increase its fleet to 80 aircraft.

It currently operates a fleet of 24 Boeing 737 aircraft on some 322 flights a week from Kuala Lumpur International Airport to 14 domestic and eight international destinations.

Analysts had expressed some concern that the lower than expected price for the IPO could have hurt the fleet expansion plan but Kamarudin said AirAsia only needed a minimum of RM1.20 to meet its financing needs.

"If we had put the indicative price lower than 1.40 ringgit, it may have been lower (still) so we put it at 1.40 and we got 1.20. We are happy. Our wings are intact. There is no need to reschedule anything," he said.

Kamarudin said the carrier was happy with the strong response to the IPO and the investor profile.

The institutional tranche was 3.5 times subscribed and the public tranche, the largest ever for a Malaysian IPO, was 1.5 times subscribed, with the IPO raising some RM717.4 million.

The stock will list on November 22.

Asked about the planned acquisition of an Indonesian carrier, Kamarudin: "I am flying to Jakarta today. The plan is on track. We hope to conclude the deal by year-end or the latest in the new year." - AFP

Copyright © 2004 Agence France Presse. All rights reserved.

Time is GMT + 8 hours
Posted: 07 November 2004 2349 hrs

AirAsia plane skids off runway at Kota Kinabalu airport
KOTA KINABALU, Malaysia : A Boeing 737 plane owned by budget airline, AirAsia, with 111 passengers and five crew members on board, skidded while landing on Sunday, forcing the Kota Kinabalu International Airport (KKIA) to be closed temporarily.

Department of Civil Aviation Director-General Kok Soo Choon confirmed that the incident took place at about 5.50pm during heavy rain.

"So far, no passenger was reported injured...everyone is safe, but we have to close the runway temporarily," he told Bernama news agency.

Following the temporary closure, five flights scheduled for take-off were cancelled while five in-coming flights from Kuala Lumpur were diverted to Sandakan Airport.

In Kuala Lumpur, AirAsia said due to heavy rain and bad weather, its aircraft bound for Kota Kinabalu from Kuala Lumpur skidded slightly off the runway after it touched down at Terminal Two of the KKIA.

"While evacuating the aircraft, two of the passengers sustained minor injuries. AirAsia's staff responded instantly to send the passengers for immediate medical attention," it said.

AirAsia said all other passengers were fine.

Flight AK104 had 110 passengers, one infant and five crew members on board. - CNA

Copyright © 2004 MCN International Pte Ltd

Business Times - 09 Nov 2004

Runway mishap unlikely to hurt AirAsia's IPO prospects

By PAULINE NG

AIRASIA is likely to have a smooth debut on Bursa Malaysia later this month despite a mishap that could have been potentially more serious last Sunday.

The airline's skid off the Kota Kinabalu International Airport runway on Sunday evening is not likely to mar investor sentiments before its debut, scheduled on Nov 22.

Analysts contacted by BT said that the airline's little mishap was 'part and parcel of operations' and would not affect its impending listing.

In the Sunday incident, an AirAsia plane with 110 passengers on board skidded off the runway at the East Malaysian airport, resulting in the evacuation of passengers via emergency chutes.

Two passengers and the airline's two pilots reportedly suffered minor injuries. The Department of Civil Aviation has closed the airport and investigations are underway on the cause of the skid.

An analyst who declined to be identified said it was unrealistic to expect any airline to be incident-free, and that so long as it was an isolated incident, it was unlikely to rain on AirAsia's listing debut parade.

The incident, however, may train the spotlight on AirAsia's quick turnaround time - a point of pride for the low cost carrier.

Said an analyst from Mayban Research: 'The incident will have minimal impact on its listing,' but he added there could be questions on whether the airline's planes should be more thoroughly inspected or maintained. The first budget airline to list, AirAsia will raise RM717.4 million (S$312 million) from its listing exercise.

It had priced the institutional portion of its initial public offering at RM1.25 per share and the retail portion at RM1.16, well below its earlier indicated price of RM1.40.

With a current fleet of 24 Boeing 737 aircraft, AirAsia plans to use the IPO proceeds to increase its fleet to 80 aircraft.

While its first mishap could have been perhaps better timed, AirAsia can take cheer from an important area of its operations: jet fuel prices.

'Jet fuel prices have come down substantially and as far as investors are concerned, the timing of its listing is quite good,' added the analyst.

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

Business Times - 09 Nov 2004

Airbus set to win US$5.2b AirAsia order: report

(PARIS) European aircraft maker Airbus is poised to win a US$5.2 billion order from Malaysia's AirAsia for its A320 short-haul aircraft, pushing out US rival Boeing who had previously been the budget airline's sole supplier, the Wall Street Journal said yesterday.

The paper said AirAsia, which is currently completing an initial public offering, is expected to announce the order in a few weeks. Airbus was not immediately available to comment. Citing sources familiar with the order, the newspaper said Airbus's offer was priced well below Boeing's bid.

The two companies are currently locked in a trade dispute over state aid, which has seen the United States and the European Union file cases at the World Trade Organisation.

Airbus is 80 per cent owned by the European Aeronautic, Defence and Space Co (EADS) and 20 per cent owned by Britain's BAE Systems.

Meanwhile, Xiamen Airlines, a regional carrier controlled by China's largest airline, may buy and lease Boeing 737-800 planes starting in 2006 as it expands its fleet to meet growing demand for air travel.

'We have not decided on the number of planes,' Wang Zhouzhou, manager of Xiamen Air's financing office, told reporters at an aviation conference in Hong Kong. 'We do have plans to replace the 737-300 and 737-500 planes in our fleet.' Fujian, southeastern China-based Xiamen Air, which is controlled by China Southern Airlines Co, and other Chinese carriers are expanding their fleets as rising urban incomes boost demand for air travel in the country. Passenger traffic in China is forecast to grow at an annual 7.3 per cent in the next two decades, compared with a global average of 5.2 per cent, according to Chicago-based Boeing. The 737-800 can carry as many as 189 passengers and has a range of up to 5,449 km. Each 737-800 aircraft costs as much as US$69.5 million, according to catalogue prices.

Xiamen Airlines currently operates a fleet of 29 Boeing aircraft, 10 of which are 737-300s and 737-500s, Mr Wang said. - Reuters, Bloomberg

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

Business Times - 13 Nov 2004

AirAsia in advanced talks to buy new planes

(KUALA LUMPUR) Low cost carrier AirAsia Bhd is at an advanced stage of negotiations for new aircraft purchases and an agreement may be reached as early as next month to acquire up to 80 new aircraft, says group chief executive Tony Fernandes.

He said AirAsia was mulling a proposal for 40 firm orders and 40 options from Airbus Industrie or Boeing. 'Although the board of directors has not accepted any current proposal from Airbus or Boeing, negotiations are now at an advanced stage and an agreement may be reached as early as December 2004,' he told Bernama.

Mr Fernandes said the company would also have to consider factors like the routes that can be flown with such aircraft, ability to secure approvals to fly such routes, the potential risks and operating difficulties of such an aircraft type and whether AirAsia could maintain substantial unrestricted cash balances.

He also said yesterday that AirAsia will fly into China from Bangkok and Kota Kinabalu tentatively from February next year. It was in the midst of getting approval from the relevant authorities.

Among the places that AirAsia hopes to fly into in China are Xiamen, Guangzhou, Hainan, Chongqing and Chengdu. AirAsia currently flies to Macau, from Bangkok and is expected to launch more flights there.

Currently, it has a fleet of 24 aircraft and operates 322 flights a week from Kuala Lumpur International Airport (KLIA) to 14 domestic and eight international destinations.

Mr Fernandes said the fleet expansion plan would come partly from the proceeds from its Initial Public Offer (IPO), debt or lease financing or banking facilities and cash expected from operations. It is raising RM863.4 million (S$376 million) via an IPO. The airline sold its shares to institutional investors - which received 80 per cent of the 700.5 million shares offered - at RM1.25 a share. The rest was sold to retail investors who paid 93 per cent of the institutional price or RM1.16 a share.

On its plan to acquire Indonesia's PT Air Wagon International (Awair), Mr Fernandes said AirAsia had entered into two conditional sale and purchase agreements to acquire a 49 per cent stake for US$2 on Aug 30. Awair operated as a full service carrier before suspending operations in March 2002.

Completion of the transaction is subject to various conditions including approval by Indonesian regulatory authorities and further due diligence by AirAsia, he said.

AirAsia plans to operate from a hub at Jakarta's Soekarno-Hatta International Airport. He said Awair could restart operations as early as next month, even before the deal is finalised.

Separately in Bangkok, Thai AirAsia, 49-per-cent owned by Malaysia's AirAsia Bhd, said yesterday surging fuel costs meant it will not be profitable until the end of 2005 rather than the end of this year as anticipated previously.

'By the end of next year, we will be profitable,' Thai AirAsia chief executive Tassopon Bijleveld told an analyst meeting.

Thai AirAsia is 50 per cent owned by Shin Corp PCL, Thailand's largest telecoms group, founded by Prime Minister Thaksin Shinawatra.

The airline, which started operations in February, had said it expected to make a profit in its first year of operations. - Bernama, Reuters

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

13 November 2004
Malaysia's AirAsia plans to fly to China by February: report

KUALA LUMPUR : Malaysia's AirAsia plans to begin flying to China by February, which will open up a giant market for the no-frills carrier as it heads for a listing in less than two weeks, a report said Saturday.

Chief executive Tony Fernandes was quoted by the New Straits Times as saying the airline was in the midst of securing approvals to fly to key Chinese cities such as Xiamen, Chengdu, Guangzhou, Chongqing and Hainan from Bangkok through its subsidiary Thai AirAsia.

"We do not expect to have difficulty in this area as there is a bilateral open skies air service agreement already in place between Thailand and China," he said, adding that it expected to start flights before the Chinese Lunar New Year - a peak season travel in East Asia.

Fernandes said the carrier also planned to operate China-bound flights from Kota Kinabalu, the capital of Malaysia's Sabah state on Borneo island, pending the completion of expansion work at the airport there.

"We have also applied for government approvals to fly between Malaysia and China, and expect to do so sometime next year," he said, adding that AirAsia chose Kota Kinabalu instead of Kuala Lumpur because it was closer to China.

He said AirAsia would start daily flights to Macau from Kuala Lumpur on December 15.

The airline has already made daily flights from Bangkok to Macau since June - its third international destination out of Thailand after Singapore and Malaysia.

Analysts said AirAsia's entry into China would boost its revenue given strong trade ties and the 2008 Olympic Games in Beijing. Malaysia was China's seventh-largest export market last year, while the mainland was Malaysia's fourth biggest.

Fernandes said AirAsia, which aims to buy 80 new planes over the next few years, has still not decided whether to purchase from Boeing or Airbus despite reports that Airbus had won the deal.

"This is a big decision. We expect an announcement will be made by the end of January," he said. AirAsia, which started with just two aircraft in 2002, now has a fleet of 24 Boeing 737-300s plying the region.

He reiterated the expansion plan was still on track despite AirAsia's initial public offering (IPO) raising less funds than first indicated.

AirAsia set the price for the institutional tranche of its IPO at 1.25 ringgit (0.33 dollars) per share and the retail tranche at 1.16 ringgit, well below the indicative price of 1.40 ringgit, to raise some 717.4 million ringgit.

It will debut on the stock exchange on November 22 to become the first budget carrier listed in Southeast Asia. - AFP

Copyright © 2004 Agence France Presse. All rights reserved.

Business Times - 19 Nov 2004

AirAsia to start operations of Indon joint venture by January

KUALA LUMPUR - Asia's best-known budget carrier, Malaysian-based AirAsia, could be ready for takeoff in Indonesia as early as January, a newspaper reported on Friday.

The timing of the maiden flight of AirAsia's Indonesian joint-venture, PT AWAir, would depend on when AirAsia completes a due-diligence review of the airline's financial details and finalises the deal, The Star newspaper said, quoting the airline's executive director, Kamarudin Meranun.

AirAsia is paying a token US$2 (S$3.29) to buy 49 per cent of PT AWAir, a debt-ridden Indonesian airline that suspended operations in March 2002.

The Indonesian joint venture will be AirAsia's second overseas foray after Thai AirAsia, in which the Malaysian carrier also has a 49 per cent stake.

Thai AirAsia is 51 per cent owned by Shin Corp, which is controlled by the family of Thai Prime Minister Thaksin Shinawatra.

PT AWAir won't have any debt once the joint-venture is finalised, Mr Kamarudin said. AirAsia last month raised RM863.4 million (S$381.3 million) in Malaysia's biggest initial share offering this year. Its shares will begin trading on Monday.

'What we want to do is revive the operations and ply the routes that had been given to PT AWAir. We are also eyeing several other destinations,' Mr Kamarudin was quoted as saying.

PT AWAir, using leased aircraft, used to fly from the Indonesian capital, Jakarta, to Denpasar in Bali, Surabaya and Medan.

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

This story was printed from TODAYonline

AirAsia shares take off

Counter makes 11% ascent from IPO price on first trading day

Tuesday • November 23, 2004

Shares of AirAsia rose 11 per cent on their first trading day in Malaysia on expectations that new routes to China and Indonesia, and lower fuel prices will boost profit. The airline's shares rose 15 sen (6.5 cents) to RM1.40 yesterday.

AirAsia's offering last month raised RM863 million, with institutional investors paying RM1.25 a share. Individual investors were offered its stocks at RM1.16 each.

The low-fare airline plans to keep ahead of competitors by tapping East Asia's two most populous nations with routes to Kunming in western China and to Jakarta.

The share sale may help chief executive Tony Fernandes to order, as early as next month, 80 new planes from Boeing or Airbus.

"AirAsia has a lot of potential, it has so many routes to tap," said KLCS Asset Management chief investment officer Choo Swee Kee. "It's a very decent debut."

The price of jet fuel, which AirAsia said accounted for about a third of operating expenses, has fallen 10 per cent in Asia since the Oct 25 stock sale. The price of jet fuel fell to US$57.25 a barrel on Nov 19 in Singapore, from the record US$63.95 a barrel on Oct 14, according to pricing service Platts.

Yesterday, about 149.2 million AirAsia shares changed hands, making the stock the most actively traded on Malaysia's stock exchange. It rose as much as 20 sen earlier, or by 16 per cent, to RM1.45.

"There is a lot more potential in the company," AirAsia executive director Kamarudin Meranun said. "Don't look at it as just a Malaysian company, but as growth in the region."

"Any investor aiming to buy Malaysia will probably pick up some AirAsia stock," Ms Chong Sui San of Allianz General Insurance Malaysia said before the trading debut. — Bloomberg

Copyright MediaCorp Press Ltd. All rights reserved.

Business Times - 06 Dec 2004

AirAsia pushes for low-cost hub

(KUALA LUMPUR) Malaysian budget carrier AirAsia said Malaysia should reopen an old airport for regional low-cost carriers despite an objection from its bigger rival Malaysian Airline System (MAS).

AirAsia, which helped pioneer the low-cost airline model in Asia and wants to become the region's leading no-frills carrier, said the government should do away with 'one-airport' policy for Kuala Lumpur and set up a dedicated hub for budget airlines.

'I think the biggest stumbling block is lack of knowledge, I think they have been hearing it from one party, MAS,' AirAsia chief executive officer Tony Fernandes said.

'MAS is thinking that business will be destroyed. I don't think so because we only fly to Indonesia and Thailand,' he said.

He said AirAsia should be allowed to quit the expensive and congested Kuala Lumpur International Airport (KLIA) and move to the old Subang airport nearer to the capital to help cut operating cost by up to 20 per cent.

If the government allows it, it will mean Malaysia is trying to rival neighbouring Singapore, which is emerging as a main hub for low-cost carriers currently mushrooming across Asia.

Prime Minister Abdullah Ahmad Badawi's Cabinet will decide this month on whether to reopen Subang after listening to AirAsia, MAS and others, a government official said.

Mr Fernandes said the two-airport strategy has been successful in several countries like Australia, Brazil and Italy.

AirAsia was eyeing Subang because of the need for quick departures and arrivals, he said, adding the KLIA was congested, resulting in flight delays.

MAS chairman Munir Majid was quoted by newspapers as saying recently that Subang should not become another 'confusing hub' in the interest of the nation and the national carrier.

AirAsia critics said operating two airports within a distance of 64 km would be expensive for the government and would only retard the growth of KLIA.

Subang was opened in 1965 and ceased operations in 1998 with the opening of the ultra-modern, cavernous KLIA.

Malaysia Airports Holdings, which operates KLIA and 22 other airports in the country, will decide soon on whether to build a dedicated terminal for low-fare carriers' operations as part of the second phase of KLIA's expansion programme, which is supposed to begin in the second quarter of 2005.

But Mr Fernandes said building a dedicated terminal at KLIA would not be the answer as it would still drive up costs.

For now, the second-phase project is set to include a second satellite building with 37 gates and 42 parking bays, which should be finished in early 2007. Handling capacity will be doubled to 50 million passengers a year. - Reuters

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

Posted: 15 December 2004 1550 hrs

AirAsia to buy 40 Airbus jets in blow to Boeing: source

KUALA LUMPUR : Malaysian budget carrier AirAsia has opted to buy 40 A320 jets from Europe's Airbus and will phase out its current Boeing fleet, an industry official said Wednesday, a decision seen as a major setback for the US aerospace giant in the burgeoning Asian low-cost airline market.

"Yes, AirAsia has picked Airbus. It will buy 40 jets. The contract will be inked on Friday," the industry source familiar with the deal told AFP.

AirAsia officials declined to comment.

Asked why rival Boeing lost the deal, the industry insider said: "In terms of price and technical specifications, Airbus is better."

"All the current Boeing aircraft with AirAsia will either be phased out or sold," the source added.

AirAsia, the region's largest low-cost carrier, currently operates a fleet of 26 Boeing 737 aircraft.

Boeing officials have acknowledged that capturing the contract was critical for them to regain sales momentum in the market.

The source declined to reveal the cost of the 40-jet deal, saying only: "They are getting it cheaply."

The order would be valued at US$5.2 billion at the catalog price but AirAsia was likely to receive significant discounts, the Wall Street Journal said in a report on the negotiations last month.

Quoting people familiar with the offer, the newspaper said the A320 jetliners were priced well below Boeing's.

The industry source told AFP the first aircraft would arrive in early 2006, followed by one jet each month.

Australia-based managing director for the Centre for Asia-Pacific Aviation, Peter Harbison, told AFP that AirAsia's decision to pick Airbus was bad news for Boeing.

"It is not good news for the US manufacturer since the current fleet consists of Boeing. Five years ago, Airbus was invisible over Asian skies. It is now becoming dominant," he said.

Harbison attributed Airbus's success to better pricing and the ability to meet demand.

"Part of the problem for Boeing is being not able to produce aircraft. After (the terror attack on the US on) September 11, local carriers were not placing new orders and Boeing downsized its labour force.

"Now there is a surge in demand from low-cost carriers and Airbus is in a stronger position to produce. They are also aggressive in pricing," he said.

Harbison said with the new order, AirAsia would have the youngest fleet in Asia, putting the carrier "well ahead of anyone else."

AirAsia has set its sights on a fleet of 80 aircraft and is expected later to take an option to buy or lease 40 more Airbuses.

The three-year old no-frills carrier has expanded from a two-jet operation to become Asia's leading economy airline, carrying 7.5 million passengers since its launch in December 2001.

It operates 322 flights a week from Kuala Lumpur International Airport to 14 domestic and eight international destinations, and plans a major regional expansion programme.

AirAsia became the first budget carrier to be listed in Southeast Asia in November, when its initial public offering (IPO) was snapped up by investors. - AFP

Btw, their 24 planes (737-300s) will move to AWAIR (Air Asia Indonesia) because some small airports here cant support Airbus.

cheers

I wonder whats the technical superiority of A320 over B737??

Well, depend on which series of 737, A320 can fly longer than 733 for sure but I think its match with 737NG like 737-700/800/900.

Cheers

Business Times - 17 Dec 2004

Cheap Macau flights not affecting Genting

AirAsia offering inexpensive flights to Macau at a fare of RM159 one way

By PAULINE NG
IN KUALA LUMPUR

AIRASIA'S new cheap flights to Macau may prove a draw for gamblers from Kuala Lumpur, but not enough to make a dent in Genting's casino operations, analysts say.

AirAsia began its maiden flight to Macau on Wednesday, flying into the Special Administrative Region of China with almost 150 guests. AirAsia group chief executive officer Tony Fernandes said that the response to the carrier's new destination has been 'simply phenomenal, with seats for the Kuala Lumpur-Macau sector sold out solid for the next 10 days'.

The average profile of a Genting punter, however, suggests Genting doesn't have to worry unduly.

'The majority of gamers to the Genting casino are day trippers who make a quick trip after work. They're more grind market than high rollers,' a gaming analyst observed.

That's not to say that Macau isn't entirely a threat to Genting. Since the gaming business ceased to be a 10-casino monopoly of Hong Kong casino king, Stanley Ho, the number of casinos has jumped to 15. Despite Las Vegas' 200-plus casinos, Macau, which is aiming to be the Vegas of Asia, reportedly generates more cash - almost US$3 billion annually.

Maybank Research senior analyst Tai Kin Chiew thinks that Macau's proximity and AirAsia's cheap flights - the low cost carrier advertised 5,000 seats at a special promotional fare of RM99.99 one way and regular fares starting from RM159 one way - 'is definitely a negative' for Genting.

Still, if punters are only looking to having a wager, Mr Tai concedes they would likely find it easier to head to the holiday cum casino resort on a mountain in central Pahang. More than 15 million visitors descended on Genting Highland last year but Genting does not provide statistics on how many visited the casino.

Macau, the only legal place to gamble in China, attracts some 11 million visitors yearly, more than half from China. Its location barely 37 miles from Hong Kong and being served by over 150 fast ferry rides, makes it a very convenient destination.

That holds true for Malaysians, too. Many are already thinking of boarding a cheap AirAsia flight to Macau and then on to Hong Kong from there. 'My friends have booked on AirAsia. They see it as a cheap way to get to Hong Kong. They're not there to gamble,' said an analyst.

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

This story was printed from TODAYonline

AirAsia plans 1st flight to China in April

Weekend • December 18, 2004

KUALA LUMPUR — Malaysia's AirAsia plans to fly to southern China from Bangkok in April, company officials said on Friday.

The plan will mark AirAsia's emergence in fast-growing mainland China, after it began flying to Macau from Bangkok and Kuala Lumpur this year. AirAsia is South-east Asia's biggest and only listed low-cost carrier.

"(The first flight to China) will be in April, from Bangkok ... three hours (away)," said Thai AirAsia chief executive Tassapon Bijleveld at a press conference on AirAsia's purchase of new planes.

AirAsia signed a deal on Friday to buy 40 Airbus A320 planes with an option to buy another 40. The deal comes about a month after the airline's initial public offering in Malaysia.

AirAsia owns 49 per cent of Thai AirAsia, while Thailand's Shin Corp holds the other 51 per cent.

AirAsia has yet to decide which Chinese city it will first serve, Mr Tassapon added. The company will also continue to focus on developing its three major markets — Malaysia, Thailand and Indonesia, group chief executive Tony Fernandes said. — Dow Jones

Copyright MediaCorp Press Ltd. All rights reserved.

AirAsia orders 40 jets, may lease 12 in interim


BY B.K. SIDHU




AirAsia Bhd will add 12 more aircraft to its existing fleet of 24 over the next six to 10 months, on top of the US$2.5bil order it placed yesterday with the world’s largest aircraft maker, Airbus SAS, for forty A320.


The order for 40 aircraft is the largest placed to date by an Asian carrier for the A320 family. AirAsia also has rights to order an additional 40 aircraft, bringing the total to 80 over eight to 10 years at a total cost to the airline of US$5bil.

AirAsia will only be able to take delivery of its first A320 in January 2006 and the balance 39 over five years, although group chief executive officer Tony Fernandes had wanted them delivered within a three-and-a-half year period.

AirAsia, however, needs 12 aircraft urgently, as it is on an aggressive drive to expand its flight network that operates from four hubs: KL International Airport, Senai Airport, Bangkok, and Jakarta.

“We will likely lease the 12 aircraft, although we may consider buying one or two. For this, we are looking at the B737 aircraft type,’’ Fernandes said after signing a memorandum of understanding for the 80 aircraft with Airbus in Sepang yesterday.






http://biz.thestar.com.my/archives/2004/12/18/business/p1airasia.JPG

(From left) Tony Fernandes, AirAsia chairman Datuk Pahamin A. Rajab and John Leahy at the signing of the MoU on aircraft purchase










AirAsia currently has 24 B737s, 19 of which are leased. It owns the other five.

The budget airline has not committed itself to buying the additional 40, but if it does so it will eventually end up with 116 aircraft – the largest fleet in South-East Asia.

AirAsia said it would gradually shift its operations to the new aircraft type with new engine to replace its current fleet, but in the interim operate a mixed fleet.

Fernandes said the additional 12 planes were needed as AirAsia would begin flights to China from Bangkok in April; and as the airline planned to ply various other destinations in the countries it currently operated in. The airline began flying to Macau from KLIA recently.

And, with its flights from Jakarta to Medan experiencing a 92% load factor, it needs additional planes to fly to more destinations within Indonesia.

Airbus beat Boeing over the 80 aircraft order. Airbus officials declined to say what discounts were offered to AirAsia but it is common for aircraft makers to offer discounts to the list price. The list price for the A320 is US$63mil.

Fernandes said two factors swayed AirAsia selecting Airbus over Boeing: economics and great support.

“The economics made a lot of sense and we are buying a brand new aircraft that will reduce costs for us,” he said. “The Airbus team has also been very supportive and determined. We do not buy planes every day and it is important to have the right partner.’’

The A320 has higher passenger capacity and improved fuel efficiency that leads to cost savings and lower cost of operation on a per seat basis. That is why Fernandes said pricing for tickets “will go down’’.

He said a quarter of the proceeds from the recent initial public offering (IPO) of over RM800mil would be used to finance the purchase.

In a statement, AirAsia said the funding for the purchase would be mainly from borrowings that would be guaranteed by European credit agencies, with which AirAsia was having negotiations.

Airbus chief commercial officer John L. Leahy, who flew in from France for the signing, said the A320 would contain components made close to home.

“For many years, CTRM in Malacca had been a supplier of many advanced composite wing components for the A320 family and have subsequently extended their relationship with Airbus with an agreement to produce wing components for the A380,’’ he said.

Leahy said there were a total of 340 aircraft of the A320 family in service with 30 airlines in the Asia-Pacific.

As for the engines to power the A320, Fernandes said General Electric Co (GE) was the front-runner. GE is a partner with France’s Snecma that jointly own CFM International, the engine supplier for the A320.

On Bursa Malaysia yesterday, AirAsia shares rose 3 sen to RM1.81.

Airbus: Price offered to AirAsia was competitive


THE “discount” price given to AirAsia Bhd, that helped Airbus win the contract against US brand Boeing, was very “competitive and close.''

“I never said that I offered a big discount to AirAsia and discount is the word that I hate to use,” John Leahy, Airbus chief commercial officer and executive vice-president (customer affairs) stressed.

AirAsia signed a MoU with the European space consortium yesterday for 40 firm orders to purchase the new A320 aircraft in a deal worth about US$2.5bil.

Rumours were rife that Airbus was giving almost 50% off to AirAsia for the A320 which carries a price of US$63mil each.

“The offers made by both manufacturers were very similar in terms of price. Our aircraft here is a modern aircraft designed at the end of the 1990s, for the 21st century,” he said.

“If all things are equal in terms of bidding, then it is natural that AirAsia selected the plane with wider seats, lower fuel burn and lower maintenance cost,” he added.

On whether the “single largest order” had anything to do with the price, Leahy said the large order would normally come with a slightly lower price “but that is not always the case”.

“We give competitive prices comparable to what Boeing is giving in the market place right now for aircraft,” he added.

Leahy said the contract worked out to be a “profitable” deal for Airbus which was “pleased” with the transaction.
Airbus, with the A320 family, has over 6% of the market share for a single isle aircraft around the world.

Low-cost carriers (LCCs) are very significant in the US and Europe, moving up close to 40% of the domestic regional market. Airbus has dominated the LCC market over the past two years.

However, Leahy said Airbus would not shift its focus to LCC even though there was strong demand for the aircraft.

“We are actually doing very well around the world. In fact, the A320 family has over 60% share in the worldwide market. If we look at the LCC market five years ago, those LCCs would have bought B737 but now, they are all buying the A320 family,” he said.

Airbus' strategy is to win over the airlines to buy its improved aircraft. – Bernama

19 December 2004

Malaysian AirAsia stamps its dominance as Asia's biggest budget carrier

KUALA LUMPUR : Malaysian discount carrier AirAsia is to buy another 40 Airbus aircraft and launch flights to China by March 2005 to maintain its position as Asia's leading budget airline.

"We will exercise the option to buy another 40 A320 jets. And if the price is good, we will (further) increase the number of Airbus jets," AirAsia chief executive Tony Fernandes told AFP.

His comments follow AirAsia's signing on Friday of a deal to buy 40 A320 jets valued at 2.5 billion dollars from Europe's Airbus, which beat out US aerospace giant Boeing for the contract.

The new aircraft would be introduced gradually into AirAsia's entire fleet, including its Indonesian and Thai subsidiaries, with the first due for delivery in January 2006.

The purchase is part of plans for regional expansion as the carrier looks to the Chinese market.

Fernandes said Chinese aviation authorities had given AirAsia preliminary approval to fly to China and expected to start flights by March.

The airline is in the midst of securing approvals to fly to key Chinese cities such as Xiamen, Chengdu, Guangzhou, Chongqing and Hainan from Bangkok through its subsidiary Thai AirAsia.

Fernandes said the first destination in mainland China would likely be Xiamen. AirAsia already flies to Macau.

Analysts said AirAsia's entry into China would boost its revenue given strong trade ties and the 2008 Olympic Games in Beijing.

Malaysia was China's seventh-largest export market last year, while the mainland was Malaysia's fourth biggest.

Azrul Azwar, senior economist with MIDF Bhd., told AFP the purchase of new jets would ensure AirAsia remained the dominant discount carrier in Asia compared with rival budget airlines operating in Singapore.

"They will have the muscle and capacity to be Asia's number one," he said.

AirAsia currently has 26 Boeing 737 aircraft which will be phased out.

Azrul said a bigger fleet would help the carrier, which started in 2001 with just two aircraft, to expand the number of routes and increase passenger volume.

"Their revenue is expected to increase," he said.

Azrul described the China routes as "niche routes" since premier carriers shy away.

"It will definitely contribute to earnings," he said.

Fernandes said Boeing could learn a lesson from European rival Airbus.

Boeing Commercial Airplanes' marketing vice president Randy Baseler had said the US manufacturer had not been able to clinch the AirAsia deal mainly because Airbus had undercut them.

"This is business. Boeing should study why they lost. You (Baseler) sit there and blame everybody," Fernandes said.

Fernandes said since Airbus gets more orders, it was able to increase production, reduce costs and build bigger market share.

Launched as a budget carrier in December 2001 with just two aircraft, AirAsia has defied the sceptics to become a significant player in the air industry and imitated by startled national carriers.

Fernandes however said he was not worried about competition from the new Singapore-based budget carriers.

"Look ValuAir started in May, they still have only two aircraft. Tiger Airways has only two also and Jetstar has one," he said.

AirAsia's sharp takeoff has drawn the attention of national carriers in the region, with two having launched their own Singapore-based budget airlines in AirAsia's slipstream this year.

Australia's Qantas has a 49 percent stake in Jetstar Asia while Singapore Airlines backs Tiger Airways.

A third, ValuAir, was started by former a Singapore Airlines managing director, Lim Chin Beng.

Analyst Azrul said the Malaysian government should decide soon on whether it would transform the former Subang Airport into a regional low-cost hub, something which AirAsia is seeking.

"Subang is ideal as a low-cost carrier hub. We should decide soon since Singapore is trying to create a similar hub in the republic. We should not lose out," he said. - AFP

Copyright © 2004 Agence France Presse. All rights reserved.

AirAsia seems more intent to fly to China from Bangkok then from KL?

I think its due of oil cost and operation effectiveness, because Bangkok is closer to China. Same goes with Jakarta, when it was mentioned on the news about Jakarta being a hub for its Australian operation.

cheers

Hmmm...or is it because of how Thailand has liberal aviation pacts, and the Thai subsidiary of AirAsia can take advantage of that?

Interesting how they are trying to move into Indonesia using the same strategy. Will Lion Air and Citilink be able to counter them? The later, in particular, seems like a farce!

That could be the case or it may have been a strategy for AirAsia to push Malaysian authorities for re-opening of subang airport, its like " open subang or we go to china from bkk" ! :D

Interesting how they are trying to move into Indonesia using the same strategy. Will Lion Air and Citilink be able to counter them? The later, in particular, seems like a farce

LOL, its already started now, Lion air has their subsidiary Wings air started their operation with MD-80s and sells tickets at 3 dollars for one way! (99 seats only per flight) This came after AirAsia via Awair launched their 10 $ tickets sales to Medan and BPP. :lol:

cheers

Business Times - 21 Dec 2004

AirAsia targets passengers on Malaysia-originated routes

KUALA LUMPUR - Malaysian budget carrier AirAsia said on Tuesday it would hit 20 million passengers a year by 2009 on its Malaysia-originated routes if the government lets the airline use the nation's old main international airport.

AirAsia, the region's largest low-cost airline, is seeking government permission to operate out of Malaysia's former main airport in Subang, instead of the Kuala Lumpur International Airport, located around an hour's drive from the city.

AirAsia, which operates in Thailand, Indonesia and Malaysia, expects passenger volume to hit 8 million this year, and is aggressively pursuing expansion plans.

The airline announced last week a deal to buy 40 Airbus A320 passenger jets as part of those plans.

"We believe we can put 20 odd million passengers (a year) in Subang within five years," AirAsia Group Chief Executive Tony Fernandes said at a news conference on Tuesday.

Mr Fernandes added that AirAsia will be able to cut fares by up to 15 per cent if it operates from Subang. "Airport costs can go down 30 per cent," he added, without elaborating.

The old airport at Subang has been used primarily for charter and private aircraft since Malaysia opened the high-tech Kuala Lumpur International Airport in 1996 and pressured airlines to move operations there.

The government is considering a proposal for a dedicated low-cost carrier terminal at either airport. It is expected to make a decision in January, Mr Fernandes said.

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

I wonder whats the technical superiority of A320 over B737??

There is none. As the article said, Airbus won on price.

Business Times - 23 Dec 2004

AirAsia records US$2.7 million profit in first quarter

KUALA LUMPUR - Malaysia's budget airline AirAsia has posted a net profit of US$2.7 million for the first quarter of its financial year.

The airline said its revenue totalled US$32.6 million during the first quarter, which ended Sept 30.

AirAsia -the region's biggest budget carrier-did not provide comparative figures because it just listed on the bourse in November.

The airline said it expects its financial performance for the year ending June 30 to be 'satisfactory.'

For the year ending June 2005, AirAsia expects net profit to reach US$42 million.

AirAsia, which currently serves routes in Malaysia, Indonesia and Thailand, carried 1.8 million passengers in 2003, and an estimated 3.2 million passengers this year.

It expects passenger numbers to rise to 6 million in 2005.

AirAsia is aggressively pursuing expansion plans and has signed a deal to buy 40 Airbus A320 passenger jets.

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

Subang airport awaits orders

By LEONG SHEN-LI



Voices in support of or opposed to the reopening of Subang airport are getting louder as the Government's announcement on the matter is expected at any time. LEONG SHEN-LI looks at the arguments being presented by both sides.

IT is hardly surprising that the debate over whether Subang airport should be reopened has heated up in recent weeks.

Although no official date has been given for an announcement, there is a strong feeling that Subang’s D-Day is drawing very near. Transport Minister Datuk Seri Chan Kong Choy had promised that a recommendation would be made to the Cabinet before the end of last year, and a decision on the matter would be made in early January.

While waiting for the final word to be publicised, people on both sides of the fence have upped the ante and have been voicing their views in the media on what the best decision should be.

It is also learnt that the lobbying of decision makers had increased in the hope of swaying them to go one way or the other.

The whole idea of letting Subang handle commercial flights again –this time specifically for low-cost carriers – in fact came from the Government itself.

In the middle of last year, Chan announced that the Government was looking into the possibility of turning Subang into a low-cost carrier (LCC) hub to tap into the vibrant budget airlines sector that had taken the region by storm.

Under what has been dubbed the “two airports” policy, KL International Airport will cater solely to full-service carriers.

He said the move was to ensure that Malaysia continued being a hub for the Asia-Pacific region.

This is in fact the crux of AirAsia’s argument for the reopening of Subang, which has been closed to commercial flights since 2002. AirAsia is easily the loudest voice calling for Subang’s resumption of services.

Its chief executive officer Tony Fernandes maintains that without Subang, Malaysia will lose its lead position in the sector to other countries in the region.

Singapore’s Changi airport is by far the greatest threat – it is building a new LCC terminal and already has three LCCs operating from there.

While Subang’s location is good, Fernandes argues that the main reason for favouring Subang is that it is a “simple” airport to operate from, with low-cost and easy-to-manage operations.

He is also worried about the possibility of AirAsia losing its current dominance in the Asia-Pacific region’s LCC market because it will not be operating at the lowest possible cost.

With Changi’s new LCC terminal, the three LCCs based there will enjoy advantages that will help them overtake AirAsia.

With Subang, AirAsia could increase its passenger load to 20 million a year and reduce airfares by up to 15%.

“We can handle some 25 million passengers at the LCC hub in Subang and KLIA can handle another 25 million, and this is good for everybody,” he said, adding that KLIA would find it difficult to handle 50 million passengers because it was not built for that volume.

Fernandes argues that there can be two air hubs for a city, pointing to major cities in the world such as New York, Paris, Rome, Berlin and London that have two or more airports and all of them have been operating successfully.

Freeing up KLIA of LCCs will enable Malaysia Airports Holdings Bhd to solicit other premium airlines to fly to KLIA, allowing it to earn higher revenues in terms of landing fees and airport taxes.

According to Fernandes, a successful LCC hub will be able to create more jobs and promote tourism in Malaysia. He cites his own AirAsia as an example: In three years, its staff grew from 200 to 2,000.

The ones arguing against the reopening of Subang include Malaysia Airlines and foreign carriers. Other parties such as Express Rail Link Sdn Bhd, which operates the high-speed train between KLIA and Kuala Lumpur, have also voiced similar views.

The main thrust of their argument is that the reopening of Subang will compromise KLIA’s position as the region’s aviation hub, which was the original intention of the Government when it decided to build KLIA.

MAS chairman Datuk Dr Munir Majid was reported as saying that KLIA could become a white elephant if Subang was reopened and the multi-billion ringgit airport would not see any expansion to meet the targeted 100 million passengers by 2020.

He suggests that an LCC terminal be built in KLIA as a compromise.

With Subang reopening, the main worry is that passenger volume could drop considerably, leading to fewer flights and, in turn, less connectivity.

“Eventually, foreign airlines will find KLIA less attractive and move to airports in neighbouring countries.

“It will spell the end for KLIA’s development as the regional hub and gateway for Asia-Pacific,” the Board of Airlines Representatives (BAR) was reported to have said in its representation to the Transport Ministry.

BAR represents foreign airlines operating in Malaysia.

Contrary to what Fernandes has claimed, BAR says if Subang were to become the preferred gateway for foreign LCCs, the number of full-service carriers going to KLIA could drop.

“Full-service carriers venturing into low-cost operations may eventually opt for total low-cost operations, causing a drop in their frequency into KLIA,” it says.

Another argument used is the cost of rehabilitating Subang. It was reported that the amount could be as high as RM1bil, which taxpayers may end up paying.

There is also the cost of maintaining two international airports, complete with the necessary Customs, immigration, quarantine and security facilities.

ERL chief executive officer Dr Aminuddin Adnan argues that it is unwise to reopen Subang because its potential for expansion is limited.

He says that limited land in the area will not allow the airport and the LCC sector in Malaysia to grow. KLIA, on the other hand, has ample space for expansion.

“Billions of ringgit have been invested to make KLIA a reality, and when we undertook the ERL project, it was with the understanding that the Government would close Subang airport,” he was reported as saying recently.

He adds that the ERL functions as the missing link with ready infrastructure to provide transportation to KLIA.

Whether the scenarios presented by both sides will actually turn out to be true remains to be seen.

As the ultimate decision lies in the hands of the Government, it is hoped that the interests of the various companies concerned as well as that of users be taken into consideration.

AirAsia may give up expansion into Singapore



HAVING undergone a tough time to launch its latest flight from Jakarta to Singapore, AirAsia Bhd chief executive officer Tony Fernandes says he has had enough of Singapore’s tactics and the airline may give up completely its interest to expand there.

The Singapore government is currently deciding whether to allow AWAIR, an AirAsia 49% associate, to operate flights from Jakarta after halting its maiden flight at the eleventh hour recently for allegedly not having a full documentation.

Addressing an audience comprising bankers and senior officials from regional financial institutions at the 5th Malaysia Capital Market Conference 2005 in Kuala Lumpur, Fernandes did not mince his words about the treatment he had received from the Singapore government.

He said the latest incident reflected how the Singapore government had tried to block the entry of low-cost carriers (LCCs) such as AirAsia from competing directly with the republic’s homegrown LCC and its national airlines Singapore Airlines (SIA) and Silk Air. There are currently three LCCs based in Singapore - SIA-owned Tiger Airways, Qantas-owned Jetstar Asia and privately-owned Valuair.







http://biz.thestar.com.my/archives/2005/1/26/business/p5tony.jpg

Tony Fernandes







“First they barred our bus from entering Singapore, now they have barred us from taking our planes there despite their earlier approvals,” he said.

He said his experience showed that Singapore was not as open to business as they had portrayed itself to be.

“From our experience, they are very closed and we want to tell the whole world about it,” said Fernandes, who left the conference audience in stitches with his straightforward presentation style.

He said the decision to stop AWAIR flight had upset the Indonesian authorities and disrupted the travel plans of passengers who had made their travel bookings earlier.

Fernandes said he was prepared to face the consequences for being vocal about the treatment he received from the Singaporean government.

“After this, we may cancel our intention to fly to Singapore from Jakarta,” he said, adding that AirAsia could grow well without having to operate from the island.

Fernandes also said AirAsia was on track to achieve its forecast profit of RM172.8mil for its financial year ending June 2005.

“Our second quarter result had been encouraging, and we are confident of achieving our target,” he said, but declined to elaborate.

AirAsia looks so cool. Airbus A320's are so damn ugly. I hope they decide to buy a fleet of 737-900's. That would be so sweet. I love 737's.

AirAsia wins low-cost airline of 2004 award


LOW-FARE carrier AirAsia has been named the Asia-Pacific Low-Cost Airline of the Year 2004 by the Centre for Asia-Pacific Aviation (CAPA).

The award was presented by Binit Somaia, the Centre's regional director for Indian subcontinent, at a gala event during the Asia-Pacific & Middle East Aviation and Tourism Outlook 2005 conference held in Singapore recently, an AirAsia statement said yesterday.

AirAsia also walked away with two other CAPA awards, including the Asia-Pacific Aviation Executive of the Year (2004), clinched by its group chief executive officer, Tony Fernandes.

It also bagged the inaugural Asia-Pacific Low-Cost Advertising Award for Best Asia-Pacific/Middle East Low-Cost Airline Print Advertisement 2004.

The CAPA awards are presented annually to Asia-Pacific and Middle Eastern personalities and organisations doing the most to influence business and regulatory strategy in ways that will have a lasting and irreversible impact on the evolution of the aviation and tourism industries. – Bernama

Thai AirAsia aims up to 2.5 mln passengers in '05
1 February 2005

BANGKOK, Feb 1 (Reuters) - Thai AirAsia, 49-percent owned by Malaysian budget airline AirAsia Bhd, said on Tuesday it aims to carry up to 2.5 million passengers this year, up from about 1 million in 2004, and make its first profit.

Chief executive Tassapon Bijleveld also said he expected Asia's fledgling low-cost airline industry to grow 20-30 percent this year, down from last year's 30-40 percent.

"This year, competition should not be different from last year. The industry should grow 20-30 percent and AirAsia is targetting passengers of around 2.4 to 2.5 million," Tassapon said.

The airline, which started operations a year ago, had said it expected to make a profit in its first year of operations but it failed due to high oil prices and intense competition on both domestic and international routes.

Low fares would help AirAsia attract more passengers and it planned to double its fleet to 12 aircraft this year and expand it to 20 over the next three and a half years, Tassapon said.

The airline wanted to boost its international routes, where profits were higher than on domestic routes, he said.

The airline planned to start at least three new international routes in April, to China, Hanoi and Phnom Penh, and a domestic Bangkok-Narathiwat route next week, he added.

Thai AirAsia is 50 percent owned by Shin Corp PCL (SHIN.BK), Thailand's largest telecoms group, founded by Prime Minister Thaksin Shinawatra.

On Tuesday, Shin Corp shares closed up 3.5 percent at 45 baht, while the overall Thai stock market rose almost 1 percent.

Malaysia to approve low-cost hub at main KL airport
By Jalil Hamid

KUALA LUMPUR, Feb 21 (Reuters) - Malaysia will this week give the go-ahead to build a dedicated terminal for low-cost carriers at Kuala Lumpur's international airport, in a bid to raise its status as a regional hub rivalling Singapore and Bangkok, officials said.

At a weekly meeting on Wednesday, Prime Minister Abdullah Ahmad Badawi's cabinet is likely to approve building the terminal at the cavernous airport in Sepang, about 70 km (44 miles) from the capital, transport ministry officials said.

The move will be a blow, though, for Malaysian budget carrier AirAsia Bhd, which has lobbied hard for the terminal to be sited at the old airport in Subang, about 25 km (16 miles) from Kuala Lumpur.

AirAsia has argued that Kuala Lumpur International Airport (KLIA) is congested, and the airline would be better off at Subang where it could turn around flights more promptly.

"Pending last-minute surprises, we heard we have lost our bid," an AirAsia official, who declined to be identified, told Reuters. "It upset our plans."

Malaysia wants to develop KLIA, the fastest-growing facility in the Asia-Pacific region, into a major regional hub in the face of growing competition from more established neighbours Singapore and Bangkok.

AirAsia Chief Executive Tony Fernandes said the new terminal would probably cost about 100 million ringgit ($26.3 million).

"We are neutral. Either way, it will be good news for AirAsia. My view (is that) probably we will end up in KLIA, but I don't know which way it will go," he told reporters at a briefing on the firm's quarterly earnings.

Singapore is already building Asia's first low-cost airport terminal. The $15 million facility promises the same no-frills style of service synonymous with budget airlines. Travellers, for example, will walk about 15-20 metres (50-65 ft) in the island's tropical heat between their aircraft and the terminal.

Singapore, Asia's sixth-biggest air hub, already has two airport terminals and is building a third at a cost of S$1.75 billion and scheduled for completion in 2008. The low-cost terminal will be in addition to the other three.

Low-cost airlines have mushroomed across Asia, sparking price wars and putting further pressure on main carriers to cut costs.

AirAsia hopes to emulate the success of European low-cost carriers such as Ireland's Ryanair Holdings Plc. and Britain's EasyJet Plc.

Asian rivals include Tiger Airways, owned by Singapore Airlines and Ryanair's founder, Valuair, India's Air Deccan and Jetstar, majority-owned by Australia's Qantas Airways Ltd.

INTENSE DEBATE

While Singapore pushed ahead with its low-cost terminal, Malaysia dragged its feet because of an intense debate within its aviation industry on whether to reopen Subang.

AirAsia, which helped pioneer the low-cost airline model in Asia and aims to become the region's leading no-frills carrier, wants Malaysia to do away with Kuala Lumpur's "one-airport" policy and set up a dedicated budget airline hub in Subang.

But its bigger rival, Malaysian Airline System Bhd, which is 85 percent government-held, objected, saying a Subang hub could hurt the main airport.

Malaysia Airlines Chairman Munir Majid said Subang should not become another "confusing hub" in the interest of the nation and the national carrier.

Fernandes had argued his airline should be allowed to quit the expensive main airport and move to Subang to help cut operating costs by up to 20 percent.

Subang, which opened in 1965, ceased operations in 1998 when the ultra-modern KLIA was opened.

Malaysia Airports Holdings Bhd, which runs KLIA, will build the dedicated terminal for low-fare carriers as part of the next phase of its KLIA expansion programme, due to begin in the second quarter of this year.

For now, the second-phase project is set to include a second satellite building with 37 gates and 42 parking bays, which should be ready in early 2007. Passenger capacity will be doubled to 50 million a year.

KLIA handled more than 20 million passengers in 2004, up 15 percent from 2003's 17.4 million.

AirAsia shares closed down 4.5 percent at 1.70 ringgit after the airline said it could not say whether it would meet its 2005 profit forecast of 160 million ringgit. The main index ended off just 0.3 percent. ($1=3.8 ringgit).

Malaysia's AirAsia cautious on FY profit forecast

KUALA LUMPUR, Feb 21 (Reuters) - Malaysia's budget carrier AirAsia Bhd said on Monday it was unable to determine if it could meet its 2005 full year profit forecast as travel had been hit by last year's tsunami, and it faced delays in getting new planes.

The firm, which listed in November, made a net profit of 54.84 million ringgit for the first six months ending December 31, 2004, which is just over a third of its full year forecast of 160 million ringgit ($42 million).

"Looking ahead, we face several challenges, some of which may impact the results for the remaining period of the current financial year," Chief Executive Tony Fernandes told reporters at a briefing.

"Our biggest challenge has been securing attractively priced reliable second hand aircraft on time. This delay may have an impact on our profit forecast."

AirAsia has a fleet of 28 airplanes and it has signed letters of intent to lease 12 more. The firm expects to get these second-hand planes in August, due to delays in deliveries.

More than 300,000 people are either dead or missing from the the Asian tsunami that hit countries like Thailand and Indonesia. Fernandes said the drop in business in Thailand prompted AirAsia to redeploy some planes to Malaysia and Indonesia.

However, Fernandes was still optimistic the firm could meet its earnings target despite a challenging business outlook.

"At Q3 we will have a clearer idea. I still believe that it can be achieved," he said.

AirAsia shares closed 4.5 percent down at 1.70 ringgit. (US$1=3.8 ringgit).

Government 'no' to reopening Subang airport



News Update by The Star News Desk



PUTRAJAYA: The Cabinet has decided not to turn Subang Airport into a low cost carrier terminal, said Transport Minister Datuk Seri Chan Kong Choy.

Chan said a terminal for low-cost carrier would be built at KL International Airport instead. It is expected to cost RM100mil and scheduled to be completed by the middle of next year.

He was speaking to reporters during his ministry's Chinese New Year open house here this afternoon.

Poor Fernandes! :D

http://sg.yimg.com/i/sg/providers/reuters.gif

February 23
Malaysia to build low-cost hub at KL airport

KUALA LUMPUR, Feb 23 (Reuters) - Malaysia has decided to build a dedicated terminal for low-cost carriers at Kuala Lumpur's main international airport at a cost of $26 million, Transport Minister Chan Kong Choy said on Wednesday.

The terminal at the cavernous airport in Sepang, about 70 km (44 miles) from the capital, will be managed by state-run Malaysia Airports Holdings Bhd , and will be operational in the first half of 2006, he said.

"It's a very strategic move to help Malaysia, and AirAsia and other low-cost carriers in the country," Chan told reporters after a weekly cabinet meeting at which the decision was made.

Malaysia wants to develop KLIA, the fastest-growing facility in the Asia-Pacific region, into a major regional hub in the face of growing competition from more established neighbours Singapore and Bangkok.

The government would spend 100 million ringgit ($26 million) to build the terminal, Chan added.

Malaysian budget carrier AirAsia Bhd had lobbied hard for the terminal to be sited at the old airport in Subang, about 25 km (16 miles) from Kuala Lumpur. AirAsia had argued that Kuala Lumpur International Airport (KLIA) was congested, and the airline would be better off at Subang, where it could turn around flights more promptly.

Chan said it would cost 280 million to 300 million ringgit to build a similar facility in Subang.

He said the new facility, the second dedicated low-cost carrier terminal in Asia after Singapore, would be able to handle 10 million to 12 million passengers a year, and ensure a quick aircraft turnaround of 20 minutes. Several Singapore-based low-cost carriers have indicated interest in flying into KLIA, Chan said, but added there were no serious talks yet.

Chan said AirAsia is expected to fly a total of 7.5 million to 8.0 million passengers this year, against 3.4 million in 2004.

Low-cost airlines have mushroomed across Asia, sparking price wars and putting further pressure on main carriers to cut costs.

AirAsia hopes to emulate the success of European low-cost carriers such as Ireland's Ryanair Holdings Plc. and Britain's EasyJet Plc. . ($1=3.8 ringgit)

Copyright © 2005Reuters Limited.

Poor Fernandes! :D


Hahaha :lol:

AirAsia targets KLIA's low-cost terminal as rival to S'pore



Despite losing the Subang bid, it will still work on the new terminal



By VEN SREENIVASAN

HAVING lost its bid to clinch Subang, AirAsia wants to make the proposed low-cost terminal in Kuala Lumpur International Airport (KLIA) into an efficient centre for low-cost travel to rival Singapore.

The Malaysian budget carrier said this in response to Malaysian Transport Minister Chan Kong Choy's remarks yesterday that the government would build a US$26 million terminal exclusively for low-cost airlines at the modern airport at Sepang.

The move was a big blow to AirAsia, which had lobbied hard for Subang to be reopened as a low-cost airport.

AirAsia's chief executive Tony Fernandes had insisted that his airline would enjoy cost savings of 30 per cent if it operates out of Subang.

But in a statement yesterday, Mr Fernandes said that despite losing the battle to get Subang, his budget carrier would work closely with Malaysia Airports Holdings Berhad (MAHB) to develop the country's first dedicated low-cost terminal.

'We are pleased that Malaysia Airports have delivered a blue print of KLIA that will almost mimic Subang in KLIA, even down to the low-cost transport to the terminal. Although AirAsia did not get Subang, our staff should be proud of the recognition received, as the creation of a new terminal would primarily benefit AirAsia.'

Subang airport, which is barely 15 km from Kuala Lumpur's city centre, was Malaysia's main airport until 1998 when it was replaced as the country's leading international airport by KLIA, which is about 70 km from the city.

Mr Fernandes said Subang would now be a maintenance, repair and overhaul (MRO) centre for AirAsia.

'AirAsia, who works closely with GE Engine Services Malaysia to maintain our aircraft engines, hopes to be able to contribute further to the development of the MRO to secure Malaysia as the leader in MRO and focus on strengthening its growth to rival Singapore.'

The KLIA low cost terminal is expected to be ready by the first half of 2006, shortly after Singapore's S$45 million low-cost terminal at Changi is ready during the first quarter of next year. So will it pose a serious threat to Singapore? Not really, said Shukor Yusof, aviation analyst at Standard & Poor's MarketScope. 'To be a serious threat, the parent airport has to be a serious contender in international aviation,' he said. 'KLIA still has some way to go before it can catch up with either Singapore or Bangkok.'

KLIA handled 20 million passengers last year - comprising a significant portion of domestic traffic - compared to more than 30 million international travellers handled at Changi.

But Malaysia's Transport Minister Mr Chan said that the decision to maintain KLIA for both legacy and low-cost carriers would enable Malaysia to counter competition from its two immediate neighbours.

'This is a strategic measure to ensure that the Malaysian aviation industry continues to achieve rapid growth and the government's decision to develop as a regional hub is achieved,' he said.

But Mr Fernandes disagrees. 'We firmly believe that Subang is the right choice to maintain Malaysia's huge lead in the LCC market over Singapore.'

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

Fog forces AirAsia to make its debut in HK
Russell Barling
25 February 2005
South China Morning Post

AirAsia, the region's biggest low-cost carrier, made its inaugural flight to Hong Kong yesterday - albeit unscheduled.

The Malaysian budget airline's flight AK50 from Kuala Lumpur to Macau was diverted to Chek Lap Kok yesterday when the airport at the former Portuguese enclave was engulfed in a thick blanket of fog, making landing risky.

The 114 passengers, some of whom were destined for Hong Kong via Macau, were not allowed to disembark due to "immigration requirements", according to the airline.

The aircraft sat on the tarmac at the airport for 3½ hours waiting for the fog to clear in Macau before taking off for the 15-minute flight.

AirAsia chief executive Tony Fernandes was critical of the Airport Authority in April last year for not lowering its landing and terminal fees to capitalise on the low-cost carrier phenomenon.

"Our talks with them never got off the ground. They took the point of view of a monopoly and were not willing to adjust," Mr Fernandes told the South China Morning Post at the time. "They apparently don't feel the need to go out and get business. We believe the right option is the cheaper airport."

The detour would have cost AirAsia a $5,000 landing fee yesterday, and it gave the authority the final word, for now.

"It shows Hong Kong is an all-weather airport, one which can operate in all conditions," a spokesperson said. "You get what you pay for."

AirAsia: Online sales have eclipsed offline sales





PETALING JAYA: About 55% of AirAsia Bhd's ticket sales is generated online and this is predicted to grow to 65% by year-end, said its regional director of information technology, Lau Kin Choy.

Lau told In.Tech that since the budget airline's “humble beginnings” in January, 2002, its online ticket sales have skyrocketed from 5% to a current 55% of total sales.

Tickets in Malaysia are also sold via AirAsia's 16 ticketing counters at various airports and city centres, through 13 select travel agents and via its callcentre at 1300-88-9933.

AirAsia launched its website (www.airasia.com) in April, 2002, and has invested less than RM1mil in it so far. The website is available in four different languages: English, Bahasa Malaysia, Chinese and Tamil.[/B]

“In Malaysia, over 150,000 seats are sold online per month. As a group, we sell about 500,000 seats per month,” Lau said.

[B]He estimates online ticket sales to be worth about RM30mil per month.

The group includes Thai AirAsia and AWAIR, an Indonesian private airline purchased by AirAsia and its Indonesian partners. Their websites include local language versions as well.

“Our cheapest seats and promotions will always be over the Internet,” said Lau, adding that AirAsia's cheapest seats available online can be up to 80% lower than the airline’s regular, published rates.

The company just concluded in mid-February a promotional campaign offering free seats to lucky surfers who logged on to its website.

A total of 50,000 free seats were up for grabs.

Some of AirAsia's fares are cheaper than airport taxes. Rates are lower when tickets are bought online, which was why most travellers preferred it to the offline method, said Lau.

Online ticketing eliminates administrative costs and cuts away the “middleman markup” that travel agents earn.

“Significant savings are recorded, which are eventually passed back to consumers,” Lau said, without giving any figures.

A Wall Street Journal Europe report in 2003 estimated that distribution or ticketing costs generally run to 15% to 17% of an airline's budget. This is an expense that can be significantly reduced by online ticket sales.

Reshaping consumer behaviour

According to the 11th Malaysia Internet User Survey conducted by AC Nielsen Consult last April, about 14% of online shoppers bought airline tickets. The other most popular online shopping activities were accommodations (10%) and books (8%).

The most popular website for online shoppers was AirAsia.com, with more than 30% of respondents having bought tickets there at one time or another.

The survey respondents were young (about 50% between the ages of 20 and 29), well-educated (nearly half had a bachelor’s degree or better), and had money to spend (about 40% had gross monthly household incomes of at least RM6,000).

AirAsia was not able to provide a profile of its own online customers.

There is no question that AirAsia believes in the potential of the Internet – why else would it use its planes as “flying billboards” for its website? – STEVEN PATRICK

Business Times - 21 Mar 2005

AirAsia spreads wings to Manila

KUALA LUMPUR - Malaysian budget carrier AirAsia on Monday said it would spread its wings to the Philippines next month, further expanding its reach in the region to stay ahead of growing competition.

From April 5, it said daily flights would be launched simultaneously from two Malaysian points -- the capital Kuala Lumpur and Kota Kinabalu, the capital of Sabah state -- to the Diosdado Macapagal International Airport, formerly Clark Angeles Airport, in northern Luzon.

In a statement, AirAsia's chief executive Tony Fernandes said: 'We aim to provide more connections for the people of the Philippines to visit Malaysia and to enhance the hub status of Kuala Lumpur and Kota Kinabalu, Sabah.

'By connecting Clark to Malaysia and linking it to our network of flights serving Thailand, Indonesia and Macau, AirAsia is indirectly bringing the people of Asean closer and thus one step nearer to achieve a borderless Asean policy.'

A former US military air base, the Diosdado Macapagal International Airport is about two-hours drive north of Manila. AirAsia said arrangements have been made for buses to shuttle passengers to the Philippine capital.

Seats are already available for sale on-line, with a regular round-trip flight priced from around RM260 ringgit (US$68.40) onwards.

Launched in December 2001 with just two aircraft, AirAsia now operates over 100 domestic and international flights with a fleet of 28 Boeing 737-300s from the Kuala Lumpur International Airport and Senai International Airport in Malaysia, the Don Muang International Airport in Bangkok and at Soekarno-Hatta International Airport in Jakarta.

The airline, which will also become the first no-frills foreign airline to fly to China next month with daily services between Bangkok and the south-eastern Chinese city of Xiamen, has announced it would buy an additional 20 new Airbus aircraft -- raising a previous order to 100.

Its success has sparked a slew of other low-cost airlines, notably in Singapore where privately-owned Valuair, Qantas-backed Jetstar and Singapore Airlines' 49 per cent-owned Tiger Airlines operate.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

Manila Standard
March 22, 2005
AirAsia to Fly to Clark

CLARKFIELD, Pampanga --Malaysia's second-largest commercial airline will commence two flights a day to and from the Diosdado Macapagal International Airport (DMIA) starting April 5.

Clark Development Corp. executive vice president Victor Jose Luciano said the regular flights to be mounted by Air Asia is a manifestation of increased tourist and investment potentials of the economic zone.

The scheduled regular flights of Air Asia was an offshoot of the success of Asiana Airlines of South Korea since it mounted regular flights between Incheon and Clark last October 2003. Asiana is the second-largest Korean flag carrier.

Luciano said Air Asia flights would have two routes coming from Malayasia via Kuala Lumpur to Macau to Clark, and Kota Kinabalu to Clark.

Kuala Lumpur and Kota Kinabalu are the two of the most frequented tourist destinations in Malaysia.

Air Asia, which provides the lowest airline fares, operates a fleet of modern Boeing 373-300 jets. The airline said that they only concentrate on one type of aircraft in order to focus on and maintain efficient operations.

Air Asia aircraft are maintained by international world-class partners such as GE Engine Services for engine maintenance; Volvo-Aero for aircraft engine and aircraft frame parts; and ST Aero for heavy maintenance and engineering components.

The airline's fleet fully meets the conditions of international aviation safety standard and is regulated by the international reputed Department of Civil Aviation (DCA) Malaysia and is overseen by the Department of Civil Aviation Thailand.

Joyce Lai, regional director for Marketing and Communications of Air Asia, assured Filipinos who are planning to visit Malaysia that the airline would provide the lowest airfare so that more people would be enticed to fly Air Asia.

Lai said that although Air Asia is the second-largest Malaysian airline, but it is very aggressive with its fare pricing which is why it was dubbed as the Ryan Air or Easy Jet of Malaysia.

Air Asia flies all over the peninsular Malaysia and also has routes to Sabah and Sarawak on Borneo.

Rendy Isip

It is high-time that Malaysia Airlines (MAS) to have its own thread here! :banana:

To start this thread off.......here's a large graphic of a recent MAS ad on Airbus' A380:

http://www.airbus.com/img/airbus4u/showreel/ads/Airbusback.jpg

Malaysian Airlines Launches New Cabin
By Lyna Mohamad in Kuala Lumpur

Kuala Lumpur - More than 100 invited foreign media representatives have witnessed the launching of Malaysia Airlines' "An Experience Redefined" held at Hangar 4, MAS Complex of the Sultan Abdul Aziz Shah Airport in Subang, Selangor.

Present to officiate the event was Dato' Seri Abdullah Hj Ahmad Badawi, the Prime Minister of Malaysia.

Also in attendance at the event were Dato' Sri Chan Kong Choy, Malaysia's Transport Minister, and Dato' Dr Munir Abdul Majid, Chairman of Malaysia Airlines.

The airline's "An Experience Redefined" is a comprehensive aircraft cabin that has been upgraded completely with a new total in-flight delivery service designed to capture a greater segment of the premium travelling market.

The airline is spending RM700 million to upgrade its B777-200 and B747-400 aircraft over a two-year period.

As the airline forges ahead, it will fulfill its corporate social responsibility by building up the skills and competencies of its workforce, said the prime minister in his address.

In addition, it is also in line with the government's aims to develop human capital and create a knowledge-based economy.

"Such efforts will also make strides towards building the capacity of Malaysia to be an aviation centre of excellence," he said.

He also highlighted that to further its corporate social responsibility agenda, the airlines should utilise local products and services and make it as a platform in showcasing Malaysian products so that the country's charm and identity can be portrayed throughout the globe.

They must constantly adapt to remain attractive to its existing and potential air travellers where feedback and interaction with its customers are crucial to spot changing trends, while taking into account the products and services offered by the other major competitors.

They must also keep abreast of the latest technologies so that it will constantly be at the technological frontier.

He noted that utilising the best technologies will be costly but coupled with proper timing and implementation; such investments should yield optimal returns in the longer run.

Customer satisfaction is key in any business but in the airline business it is highly critical and a key success factor which cannot be maximised without the human touch, as world class technology must be supported by a world class workforce.

He underscored that an impressive new cabin would be meaningless without the warmth, passion and dedication of cabin staff since human dimension plays the most pivotal role in ensuring the success of the cabin upgrade programme.

The launching was followed by a tour of one of the B747-400 refurbished cabin to take a closer look and get a feel of the facelift.

The cabin of its 17 Boeing 777-200 and 17 Boeing 747-400 are refurbished with the latest technology, futuristic style and innovative design in cabin comfort which also includes the training of its cabin staff to further enhance in-flight service delivery. -- Courtesy of Borneo Bulletin

Fleet Status


Malaysia Airlines' aircraft fleet as at February 2, 2005:

Aircraft type - No. of aircraft


B747-400 (Passenger) - 17
B747-200 (Freighter) - 8
B777-200 - 17
A330-200 - 5
A330-300 - 11
B737-400 - 39
F50 - 9
DHC6 Twin Otter - 5

Total number of aircraft = 111

March 25, 2005
Strive to be world No.1, Abdullah tells MAS
Malaysian PM sees national flag carrier as platform to showcase country

PETALING JAYA - MALAYSIA Airlines (MAS) must strive to be the world's top airline, Prime Minister Abdullah Badawi has said.

The airline's success would enhance Malaysia's image as it is the country's premier brand, he said on Wednesday.

The Prime Minister urged MAS staff to work hard to attain this goal, reminding them that they were working for the national flag carrier.

'It must maintain and enhance itself further as the national flag carrier.

'The success of MAS will enhance the image of the nation and will have a positive effect on the country's tourism industry and other related sectors,' he said before launching MAS' newly refurbished first and business class cabins.

The upgrading of the cabins, which included luxury seats and in-flight services, is part of the airline's An Experience Redefined campaign, which is designed to attract premium passengers.

Datuk Seri Abdullah said that customer tastes were ever changing and the airline must adapt constantly to stay attractive to air travellers.

He also said that the airline should utilise Malaysian products and services as much as possible, as it would be a platform to showcase Malaysian products, especially for in-flight products and services such as meals and shopping.

'The Malaysian charm and identity can be portrayed throughout the globe through these efforts,' he said before unveiling the brightly painted red Boeing 747-400 on Wednesday night.

Airline chairman Munir Majid said the concept of An Experience Redefined was all about creating an entirely new experience for their premium passengers, from providing seat luxury and comfort to high-end in-flight entertainment and fine dining.

'All these within a cabin ambience created to appeal to the senses and delivered by cabin crew who have done us proud by being rated the world's best year by year.

'It is also about added levels of enjoyment for the economy class passengers, as they, too, will be spoilt for choice, with more than 350 entertainment options from a most advanced in-flight entertainment system,' he said.

MAS managing director Ahmad Fuaad Dahlan said that the airline's comprehensive cabin upgrade programme, costing RM700 million (S$303 million), started last year.

'We decided on a two-class configuration of Business and Economy for our B777-200, taking into account market trends and increasing demand for business class travel on medium haul routes,' he said. \-- THE STAR/ASIA NEWS NETWORK

Copyright © 2005 Singapore Press Holdings. All rights reserved.

HISTORY of Malaysia Airlines


Taken from Malaysia Airline website: www.malaysiaairlines.com



The beginning



http://hq.malaysiaairlines.com/hub_image/5D7B5D7C-42F2-4F2A-AF0E-C37BA2445E38/img_banner_beginning.jpg


Malaysia Airlines' humble origins began in the golden age of travel. A joint initiative of the Ocean Steamship Company of Liverpool, the Straits Steamship Company of Singapore and Imperial Airways led to a proposal to the government of the Colonial Straits Settlement to run an air service between Penang and Singapore. The result was the incorporation of Malayan Airways Limited (MAL) on October 12, 1937.

On April 2, 1947, the first fare paying passengers boarded an MAL Airspeed Consul plane in Singapore that was bound for Kuala Lumpur. By the end of 1947, Malayan Airways had engaged in an expansion exercise to cater to the growing needs of a growing nation. Within three months, MAL broke the borders of domestic service to offer flights to Jakarta, Medan, Palembang and Saigon. A dynamic team of visionaries saw the need for expansion for such a young airline. The era of international travel was coming to Asia and MAL was to be a pioneer in providing regional flight services.

Then, British Overseas Airways Corporation (BOAC - now British Airways), a technology pioneer and a majority shareholder of MAL, provided technical services such as repairs, spares and training, even initiating training for local crew members in the United Kingdom. The presence of BOAC also facilitated MAL's entry as a member of IATA.

Meeting the needs of regional travel also meant expanding the fleet and providing for passenger comfort. Services on the five-seater Airspeed Consul were further enhanced by the acquisition of a 21-seater DC3. The DC3 also heralded the advent of in-flight service in MAL.

A year after the Independence of Malaya in 1957, MAL took the next step in becoming part of the new corporate scene in Malaysia. The participation of BOAC, QANTAS, the government of the Federation of Malaya, Singapore and the Territory of North Borneo launched MAL as a public limited company.

By 1958, the resources that were accumulated from being a public corporation allowed MAL to acquire five more Beaver aircraft and a new Douglas DC4 Skymaster, which went on to pioneer a route to Hong Kong. This was MAL's first flight beyond Southeast Asia.

The process of fleet expansion followed in 1959 when MAL entered the jet age with the purchase of the Vickers Viscount aircraft. The jet age brought about speed and new levels of comfort for travellers. By 1960, MAL had taken possession of a Lockheed Super Constellation, which propelled MAL into other far-flung regions of Asia.

The acquisition of an 82-seater Briston Britania in 1960 made mass transport by air a reality. This led to the first international non-stop service for MAL, which operated directly between Kuala Lumpur and Hong Kong.

Evolution


http://hq.malaysiaairlines.com/hub_image/E6C2BC6D-184A-45CE-BBEB-66B885B97015/img_banner_evolution.jpg



The sixties was a period of change for the world and for MAL. The formation of Malaysia in 1963 was the catalyst for our company to change its name to Malaysian Airlines Limited (MAL). The formation of a new nation also saw the need for MAL as a national carrier to integrate and connect the far corners of Malaysia.

The governments of Borneo and the Peninsular saw a need for more integration of the nation's transport system. This led to the amalgamation of Borneo Airways with MAL that same year. This resulted in closer ties being forged, and also further fleet expansion with the acquisition of five F27 aircraft.

In 1966, following Singapore's independence, the Governments of Malaysia and Singapore became the majority shareholders in the national carrier. Within 20 years, MAL had grown from a single aircraft operator into a company with 2,400 employees and a fleet operator using the latest Comet IV jet aircraft, six F27s, eight DCs and two Twin Pioneers. In 1967, a new branding exercise saw MAL changing its name to Malaysia-Singapore Airlines (MSA). That proved to be a watershed year -- apart from expanding its international routes to Manila, Perth, Sydney and Taipei, MSA also took delivery of three pioneering Boeing 707s and two F27s to service these new routes and finally set up its new corporate headquarters in Robinson Road, Singapore.

In the late 1960s, MSA strove to keep expanding its reach to even more destinations. MSA made its first flight to Tokyo in 1968 and started serving the route to Bali in 1969. Within a year, Madras and Colombo were also added to the list of international destinations catered to by MSA.

In 1971, the partnership between Malaysia and Singapore was dissolved and Malaysia Airlines Berhad was incorporated in April that same year. With an authorised capital of RM100 million, the company made a final revision to its name in November 1971 and Malaysian Airline System Berhad (MAS) was born.

Modernisation



http://hq.malaysiaairlines.com/hub_image/2A617273-447A-445F-B636-225CF959F6F8/img_banner_modernisation.jpg



By 1972, Malaysian Airline System was already servicing 34 domestic routes and six international destinations. In November 1972, Malaysian Airline System became a member of the Orient Airlines Association (OAA) after the 13th Presidential Assembly of the OAA in Sydney, Australia.

By May 1973, the company's rapid growth saw it carrying its one millionth passenger and, bolstered by development in air travel, Malaysian Airline System carried its two millionth passenger by the end of that year. Due to the early forces of globalisation, Malaysian Airline System started to service even more international routes. Popular business destinations including Tokyo, London, Madras, Manila and Sydney were soon introduced while services were added to Amman, Hat Yai, Jeddah, Perth and Taipei. In 1975, the in-flight magazine, Wings of Gold, made its debut on all Malaysian Airline System services.

In 1976, Malaysian Airline System entered the information age with the computerisation of its whole operation. The delivery of its first wide-bodied DC10 aircraft allowed Malaysian Airline System to offer new and exciting international destinations. The expansion of the European sector opened a corridor for Malaysian Airline System -- with new services to Frankfurt, Amsterdam and Paris, the passage to the East offered travellers and tourists a new dimension in travel.

In the 1980s, Malaysian Airline System became the first major government agency to be privatised. In 1985, Malaysian Airline System entered the corporate sector by offering 70 million shares for sale. This exercise raised Malaysian Airline System's paid-up capital to RM350 million and brought reserves up to RM227 million.

Previously a government agency, Malaysian Airline System embarked on a system of corporate governance that would ensure the fulfilment of its role not only as a national carrier but also as a corporate citizen centred on being responsible to its shareholders. However, this change in business practice did not change the company's focus on being customer-driven.

As part of its modernisation and expansion drive, Malaysian Airline System also invested in a new maintenance hangar facility and the extension of its catering facilities in Subang. The final stage of the restructuring exercise saw Malaysian Airline System move into its new corporate headquarters on Jalan Sultan Ismail, located right in the heart of the central business district of Kuala Lumpur. The 36-storey building, which cost RM88 million to build, would become the hub of the company's future activities.

Global reach



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In 1986, Malaysian Airline System offered its first flight service to the United States. The service, which ran twice a week to Los Angeles via Tokyo, also saw its first deployment of the brand new Boeing 747-300 Combi aircraft with stretched upper deck. By the end of 1987, Malaysian Airline System had established itself as an international carrier of choice, offering 34 domestic routes and 27 international destinations.

Malaysian Airline System has always been a customer-driven organisation. The introduction of its Esteemed Traveller loyalty programme in September 1987 demonstrated Malaysian Airline System's commitment to customer relationship management. A month later, Malaysian Airline System (MAS) changed its corporate identity and became known as Malaysia Airlines. This reflected its new objectives to create greater awareness of Malaysia and went in line with the government's efforts to make Malaysia an internationally acclaimed travel destination and trading nation.

By 1990, Malaysia Airlines extended its global reach to include more destinations including Guangzhou, Ho Chih Min City, Fukuoka and Pontianak. Flights were added to its London and Tokyo routes to cater to the increased passenger traffic.

In 1991, as part of its fleet modernisation programme, Malaysia Airlines invested RM9.6 billion to expand its fleet of aircraft.

On January 9, 1996, as part of its rationalisation programme, Malaysia Airlines announced the purchase of ten B777-200s, five B777-300s and ten B747-400s from Boeing Aircraft Company at an estimated RM10 billion. The B777s were powered by Roll Royce engines and the B747s by Pratt & Whitney engines.

On April 2, 1997, a new flight was launched to mark the 50th Anniversary of Malaysia Airlines. The newly acquired B777-200 broke two world records; one for the longest non-stop flight from Seattle to Kuala Lumpur, and another for the speed recorded for the journey. This aircraft was named 'Super Ranger'. On April 27, 1997, this aircraft was ferry flighted to Kuala Lumpur.

As of July 30, 2004, Malaysia Airlines has a fleet of 100 aircraft in its network. Currently, with its extensive list of over 100 destinations, passengers can be assured that their travel needs will be catered for when they are abroad. East or West, Malaysia Airlines is there for you.

Moving Forward




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Breaking the barriers of the new millennium, our fleet of nearly 100 aircraft serves more than 100 destinations around the world. As a pioneer in the industry in more ways than one, we are able to demonstrate our commitment to our customers and partners.

In April 2001, Malaysia Airlines became the first airline in the world to pilot a twin-engine commercial jet through the newly opened polar routes, passing through the inhospitable regions of Russia and North Alaska. Malaysia Airlines' Managing Director, Dato' Mohd Nor Yusof, together with a team of representatives from Boeing and Rolls Royce, two Russian Air Traffic Control management staff and senior officials from the Malaysian Department of Civil Aviation, journeyed on this historic flight.

These newly chartered routes provide a significant time-saving advantage for passengers who no longer have to travel east to west. Malaysia Airlines takes pride in being the first Asian airline to accomplish such a feat.

As part of our expansion, we have recently allied ourselves with Cathay Pacific to provide a code-sharing agreement to enable more weekly flights to Hong Kong.

In a time when collaboration and partnership prevail, Malaysia Airlines has forged many agreements with regional and international airlines to provide various services including catering, maintenance and inter-airline passenger transfers. Malaysia Airlines' efforts have also received awards from various institutions including the Asian Institute of Management and the Boeing Aircraft Company.

Malaysia's former Deputy Prime Minister, Tun Dr. Ismail once echoed the need for Malaysia Airlines to become the foremost airline in the region at the official launch of the first Malaysia Airlines flight in 1972. Today, Malaysia Airlines has clearly established itself as a carrier of international standing. Its Managing Director, Dato' Ahmad Fuaad bin Mohd Dahalan, now leads the Moving Forward initiative and with the theme Going Beyond Expectations being Malaysia Airlines' way of life.

In this new age of technology, Malaysia Airlines is committed to being a carrier as well as a responsible corporate citizen in the global economy. Apart from being a carrier, Malaysia Airlines has diversified its operations into human resource development, training, catering, property consultancy and technical ground support for aircrafts. Sharing its limelight with the ultra modern Kuala Lumpur International Airport (KLIA), Malaysia Airlines also provides world-class cargo management facilities to meet the needs of our partners.

With more than 50 years of experience behind us, we seek to cater to the ever growing needs of travellers. As our passengers, you are also our customers, and we seek to bring to you the best service that air travel has to offer. From sophisticated in-flight entertainment to the simple things in life like our world-class cuisine, we redefine the standards in passenger comfort and services. At Malaysia Airlines, we've got your ticket to travel.

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The New First Class dining experience!

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The FABULOUS First Class Sleeper!

Royal treatment from MAS



By M. KRISHNAMOORTHY AND TEOH TEIK HOONG



PETALING JAYA: On your next flight to London, if you are flying first class, fly MAS because you are going to be treated like a king.

The moment you step into KL International Airport for your flight, you will be pampered like a VIP.

That is what can be expected of MAS’ An Experience Redefined journey for its first-class and business-class passengers.

Bigger and more spacious seats, plus more leg room in both cabins, await passengers.

For passengers in first class, they can enjoy watching movies or playing computer games on a 15-inch screen.

Another big plus – you will only have 11 other passengers to share your first-class cabin on the Boeing 747-400 aircraft.

MAS assistant general manager (product development and services) Azmil Hisham said the airline had reduced the number of first-class seats by six to provide more space and privacy to its passengers.





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PAMPERED CUSTOMERS: MAS first-class and business-class cabins have been refurbished to provide more space and privacy to passengers.







For the Boeing 777-200 fleet, MAS has done away with first-class cabins, replacing them with more business-class cabins.

“We will offer 42 business-class seats and 289 economy-class seats on the Boeing 777-200 fleet,” he said.

First-class passengers will also enjoy exquisite fine dining on board, even having a dinner set for two.

“It is all about creating an entirely new experience for our premium passengers, from seat luxury and comfort to high-end in-flight entertainment and fine dining,” said MAS managing director Datuk Ahmad Fuaad Dahlan at the unveiling of the aircraft’s new exterior look.

“All these within a cabin ambience created to appeal to the senses, and delivered by cabin crew who have done us proud by being rated the world’s best, year on year.”

Ahmad Fuaad said that over the next two years, more than 3,000 cabin crew members would be trained to extend personalised one-on-one service, and to engage with customers more personally.

A total of 34 aircraft will be involved in this refurbishment programme, which is expected to take two years and cost RM700mil to complete.

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Airline expects facelift to bring in profits


BY TEOH TEIK HOONG



PETALING JAYA: Malaysia Airlines expects to increase its profits by between 15% and 25% after refurbishing the first and business class cabins on its wide-bodied aircraft under its new campaign – An Experience Redefined.

Its senior general manager (sales distribution and marketing) Datuk Rashid Khan said the company expected the refurbished fleet and added value in-flight services to attract more first class and business class passengers.

However, he said, eventually the airfares for its first class and business class seats on its Boeing B747-400 and 777-200 fleet would be increased by next year.

He said MAS also plan to cease promotion campaigns like its “buy one get one free” for the two premium classes.

He, however, declined to reveal the quantum of fare increase.

“We are spending RM700mil to upgrade the cabins of our 34 planes. The whole process will be completed by July next year.

“MAS is positioning itself as the airline that offers the most luxurious business class cabins by the time we are done,” he told reporters at a media briefing on the cabin upgrades yesterday.






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NEW LOOK: MAS staff Janna Salleh (left) and Adila Mazni taking a closer look at a model of the B747-400 at the launch of the newly refurbished first and business class cabins last night. It was later presented to the Prime Minister.








Rashid said MAS had also adopted the Bunga Raya as the design theme for the first class cabins, adding that the airline would spend RM10mil to promote the new cabin features.

Its passengers will soon have more than 350 entertainment options, including 40 films, 60 short features and 200 CD titles on demand, all accessible via personal digital touch screens under an upgrade of its in-flight services.

In stages, within 18 months, the airline’s entire Boeing B747-400 and 777-200 fleet will be refurbished with this cutting-edge entertainment system.

So far, four of the 777-200 planes have been refurbished and the others will be upgraded progressively.

MAS assistant general manager (product development and services) Azmil Hisham said the airline was doing away with first class cabins on the Boeing 777-200 fleet, replacing it with more business class seats.

“We will offer 42 business class seats and 289 economy class seats on the Boeing 777-200 fleet.

“Our B747-400 fleet will offer 12 first class seats, 41 business class seats and 306 economy class seats,” he said.

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Strive to be the best, MAS urged



PETALING JAYA: The success of Malaysia Airlines will enhance the image of the country, as it is the premier brand of the country, said Prime Minister Datuk Seri Abdullah Ahmad Badawi.

Saying that its staff must strive hard to make MAS the best airline in the world, Abdullah reminded them that they were working for the national flag carrier.

“It must maintain and enhance itself further as the national flag carrier. The success of MAS will enhance the image of the nation and will have a positive effect on the country’s tourism industry and other related sectors,” he said before launching the airline's newly refurbished first and business class cabins.

The refurbishing of the cabins including luxury seats and in-flight services is part of MAS' campaign – An Experience Redefined – to attract premium passengers.

Abdullah said customer tastes were ever changing and the airline must constantly adapt to stay attractive to its air travellers.

Abdullah also said the airline should as much as possible utilise local products and services, apart from invigorating the relevant local industries.

He said it was a platform to showcase Malaysian products, especially in-flight products and services such as meals and in-flight shopping.”

“The Malaysian charm and identity can be portrayed throughout the globe through these efforts,” said the Prime Minister before unveiling the brightly painted red Boeing 747-400 at Hangar 4 in Subang last night.

Airline chairman Datuk Dr Munir Majid said the concept of An Experience Redefined was all about creating an entirely new experience for their premium passengers, from seat luxury and comfort to high-end in-flight entertainment and fine dining.







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PREMIER TEST: Prime Minister Datuk Seri Abdullah Ahmad Badawi trying out the first class sleeper seat on board the Malaysia Airlines Boeing 747-400 that has been refurbished as part of the airline’s effort, called An Experience Redefined, to attract premium passengers. Looking on are Transport Minister Datuk Seri Chan Kong Choy and MAS chairman Datuk Dr Munir Majid. Abdullah had earlier launched the airline’s new first and business class cabins. --Bernamapic








“All these within a cabin ambience created to appeal to the senses and delivered by cabin crew who have done us proud by being rated the world’s best year by year.

“It is also about added levels of enjoyment for the economy class passengers, as they, too, will be spoilt for choice, with more than 350 entertainment options from a most advanced in-flight entertainment system.”

MAS managing director Datuk Ahmad Fuaad Dahlan said the airline's comprehensive cabin upgrade programme, costing RM700mil, started middle last year.

“We decided on a two-class configuration of Business and Economy for our B777-200, taking into account market trends and increasing demand for business class travel on medium haul routes.”

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First posted by liping_t in the Malaysian Forums:


..............the launch of the new First & Business class of MAS complete with the Special Hibiscus livery...

http://masworldwide.arcww.com.sg/welcome.asp

with thanks to Joule of aeromalaysia.com




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Business Times - 25 Mar 2005

AirAsia flying to 3 IndoChina destinations

(KUALA LUMPUR) AirAsia Bhd, South-east Asia's biggest discount carrier, said it will start flights to Laos, Cambodia and Vietnam, reiterating plans to buy 20 more planes from Airbus SAS in addition to the 80 ordered earlier.

The airline won landing rights to the three countries and will commence flights 'hopefully this year', group chief executive Tony Fernandes said at a briefing after meeting Malaysian investors and analysts in Kuala Lumpur yesterday.

AirAsia, which has placed firm orders for 40 aircraft and signed options for 40 more under a US$2.5 billion contract with Airbus in December, plans to expand its fleet.

AirAsia and its Singapore-based rivals like Tiger Airways, Valuair Ltd and Qantas Airways' Jetstar Asia are adding aircraft and destinations in South-east Asia. As many as 10 budget carriers are competing for passengers in the region, which had no budget airlines four years earlier.

On March 21, AirAsia said it will begin flights to the Philippines on April 5, becoming the second budget carrier to get landing rights after Tiger Airways.

Meanwhile, the Malaysian government has welcomed AirAsia's success in securing rights to fly to six destinations in China including Xiamen.

Transport Minister Chan Kong Choy told reporters, the government was very supportive of Malaysian companies wanting to excel and expand in international markets.

Mr Fernandes had announced earlier that AirAsia has secured approvals for six new destinations to China this year, including Xiamen. He declined to name the other five. - Bloomberg, Bernama

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

I read somewhere they will be joining skytem.Is it true?

Malaysia air battle looms on kangaroo route
26 March 2005
The Courier-Mail

MALAYSIA Airlines is to take on Qantas and British Airways on the Australia-London "kangaroo route" and will spend RM700 million ($A238.8 million) upgrading its first and business class cabins.

The airline is refurbishing 17 Boeing 747-400 and 17 Boeing 777-200 aircraft for its long-distance flights in a bid to capture a greater market share of the global high-end traveller market.

Malaysia Airlines is the third largest foreign airline in Australia and services the Australia-UK route daily.

Assistant general manager/product development and services Encik Azmil said the kangaroo route was very important to the airline.

MAS and AirAsia to 'fly together'
By Anna Maria Samsudin
25 March 2005
New Straits Times

KUALA LUMPUR, Thurs. - Malaysia Airlines (MAS) and AirAsia are making headway on the thorny issue of domestic routes.

MAS chairman Datuk Dr Munir Majid and AirAsia chief executive officer Tony Fernandes indicated today that they had discussed the matter at several meetings.

Munir said he had met Fernandes informally to discuss various areas in which both carriers could work together, including that of domestic routes.

This, he said, was part of the full service airlines' strategy in facing growing competition from the low-cost-carrier (LCC). As a result of increasing competition, MAS, like other full service airlines, is now faced with the choice of either competing head-on or co-operating with LCCs.

Munir dismissed the idea of MAS setting up its own LCC unit along the lines of Singapore Airlines (SIA).

He said MAS, like other full service airline operators, did not have the expertise to manage a budget airline business.

"I have spoken informally with Tony. I think we will be co-operating," he said.

Fernandes confirmed that he had held several meetings with Munir to discuss co-operation between the companies.

He was happy with how things were progressing, adding that both airlines were working on something more 'concrete'. He, however, declined to elaborate. "Such co-operation would indeed bring about positive developments in domestic air travel. The biggest winner from this partnership would be the Malaysian public, not AirAsia or MAS," he added.

The two carriers have been at odds over several thorny issues, including whether the old airport terminal in Subang should be re-developed into a budget carrier hub, and if MAS should hand over its domestic routes to AirAsia and focus instead on international routes.

Munir offered an 'olive branch' to AirAsia in October last year by clearly signalling in an interview with the New Straits Times that MAS was ready to work with AirAsia for mutual benefit.

If the two airlines formally agree to co-operate, they would be making history by becoming the first no-frills and full-service carriers to work together.

the cabin is beautiful.. :)

AirAsia Signs Purchase Order For 60 Airbus A320 Aircraft
25 March 2005

PARIS (Dow Jones)--Jet maker Airbus (ABI.YY) said Friday that Southeast Asian budget airline AirAsia BHD (5099.KU) has signed a purchase order for 60 A320 aircraft and taken options to buy a further 40 of the planes.

In a statement, Toulouse-based Airbus, which is 80%-owned by European Aeronautic Defence & Space Co. NV (5370.FR), said the purchase order is for 20 more jets than originally covered by a memorandum of understanding signed by AirAsia and Airbus in December last year. [ 25-03-05 1117GMT ]

Airbus said in its statement that the A320 order and option commitment makes AirAsia the single biggest customer for the jets in the Asia-Pacific region.

Deliveries of the planes will begin late this year and continue until 2011, Airbus said.

Terms of the contract weren't disclosed, but on the basis of a catalog price of $63 million for one A320, the deal is potentially worth nearly $6.3 billion including both the firm orders and options. However, aircraft manufacturers typically offer substantial discounts for bulk deals.

Wowwwwwwww, the new the Special Hibiscus livery is very very beautiful....
Are they going to apply the special Hibiscus livery to all the aircraft???

AirAsia Signs Purchase Order For 60 Airbus A320 Aircraft
25 March 2005

PARIS (Dow Jones)--Jet maker Airbus (ABI.YY) said Friday that Southeast Asian budget airline AirAsia BHD (5099.KU) has signed a purchase order for 60 A320 aircraft and taken options to buy a further 40 of the planes.

In a statement, Toulouse-based Airbus, which is 80%-owned by European Aeronautic Defence & Space Co. NV (5370.FR), said the purchase order is for 20 more jets than originally covered by a memorandum of understanding signed by AirAsia and Airbus in December last year. [ 25-03-05 1117GMT ]

Airbus said in its statement that the A320 order and option commitment makes AirAsia the single biggest customer for the jets in the Asia-Pacific region.

Deliveries of the planes will begin late this year and continue until 2011, Airbus said.

Terms of the contract weren't disclosed, but on the basis of a catalog price of $63 million for one A320, the deal is potentially worth nearly $6.3 billion including both the firm orders and options. However, aircraft manufacturers typically offer substantial discounts for bulk deals.


Noooooooooooooooooooooooooooooooooooooooo!!!!!!!!! AirAsia should have gotten 737-800's with winglets!!! I thought AirAsia was a 737 only airline. I'm not gonna like AirAsia as much anymore because A320's are fugly ass planes.

:bash:

^^^ No.....this would probably be one of the few aircraft with this livery as this is a special livery. (they could do just one but I dun think so) But it wouldn't hurt to see at least a couple more hehehe :D Just hope they dun do this to all its aircrafts :no:

MAS plane a flying billboard





BY TEOH TEIK HOONG



PETALING JAYA: The latest crimson red scheme to adorn one of Malaysia Airlines’ Boeing 747-400 is meant to make heads turn wherever it goes.

“It is a statement in the sky, a flying billboard to promote the country’s national airline,” MAS engineering and maintenance general manager Mohd Roslan Ismail said.

More than 550 litres of paint, enough to coat 40 houses, was used to brighten up the aircraft.

It took almost five months to piece together the new look, featuring the hibiscus theme, at the MAS hangar in Subang. The new look accompanies the refurbishment of the aircraft.

MAS technical services manager Rashidi Saidin said besides the paint and artwork, everything else was “Made-in- Malaysia”.








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The new Malaysia Airlines refurbished plane featuring the hibiscus theme.








“We had two dimensional drawings as our starting point in November last year.

“Translating this onto the body of the aircraft, which is curved, was the major challenge for the team,” he said.

Rashidi said the team engaged overseas consultants to design the template based on the conceptual design furnished.

“It was like piecing together a jigsaw puzzle.

“We had to ensure that the designs were symmetrical on both sides of the plane and this was tough,” he said.

He said they needed a month for the physical work of getting the plane painted. Pantone paint was ordered from overseas and mixed locally to meet the colour requirements.

“The paint we used can withstand the weather and prevent corrosion to the structure of the plane,” he added.

Before painting began, one week was spent sanding the surfaces and then an entire day on washing the plane. The surface was sprayed with primer and then painted white.

The elaborate red design with its flowing motifs took two weeks to complete. Each of those tasks required teams of between 12 and 18 workers.

Mohd Roslan feels it was worth the effort. “The whole aircraft looks and feels good.”

He said MAS could offer their newly-acquired skills in cabin upgrades and painting to other airlines if approached.

Work on another MAS aircraft, a Boeing 777-200, is to start soon with a similar theme.

Noooooooooooooooooooooooooooooooooooooooo!!!!!!!!! AirAsia should have gotten 737-800's with winglets!!! I thought AirAsia was a 737 only airline. I'm not gonna like AirAsia as much anymore because A320's are fugly ass planes.

:bash:

I'm sure Air Asia will miss your patronage very much

i dont know wht difference does one feel when flying in b737 & a320 plane, they are all the same, takeoff and landing, crusing flight, turbulence, airpocket etc you all feel the same on these planes

malaysia truly asia

27 March 2005

Malaysia's AirAsia inks Airbus deal to stay ahead of competition

KUALA LUMPUR : Malaysian budget carrier AirAsia has inked a contract to buy 60 new Airbus aircraft, with an option to purchase another 40 A320 jets as part of its regional expansion, a report said.

With the order and option commitment, AirAsia in a statement to Bernama news agency said it had become the single largest customer for Airbus in the Asia-Pacific region.

The airline in December said it would buy 40 Airbus aircraft and exercise an option to buy another 40 A320 jets to maintain its position as Asia's leading budget airline. In February, it said it would buy an additional 20 new aircraft.

AirAsia said it decided to increase the Airbus order after the rollout and the success of its Indonesian operations, AWAIR International (AWAIR).

"Within three months of its operations, AWAIR has carried over 120,000 guests and introduced flights to five domestic destinations in Indonesia," it said.

The new A320 jet will completely replace its current fleet of 28 single aisle, 148-seat Boeing 737-300s. Delivery of the first A320 aircraft will begin late this year and continue through until 2011, the company said.

It will operate a mixed fleet during the transition period, it added.

Launched as a budget carrier in December 2001 with just two aircraft, AirAsia has defied the sceptics to become a significant player in the air industry and has been imitated by startled national carriers along with a host of new low-cost entrants.

AirAsia currently operates in Malaysia, Thailand, Indonesia, the Philippines and Macau. It will become the first no-frills foreign airline to fly to China next month with daily services between Bangkok and the southeastern Chinese city of Xiamen.- AFP

Copyright © 2005 Agence France Presse. All rights reserved

AirAsia gets KK-Darwin route offer
29 March 2005
Business Times

AUSTRALIA's Northern Territory is inviting Malaysia's low-cost carrier AirAsia Bhd to service the Kota Kinabalu-Darwin route.

Northern Territory's international trade director, Quentin Kilian, said his team would like to meet AirAsia's chief executive officer, Tony Fernandes, to extend the invitation.

Met on the sidelines of the International CEOs Conference yesterday he said the service is needed to meet demand of its travellers, especially businessmen.

"At present, there is no direct access between Kota Kinabalu and Darwin and this makes it difficult for our businessmen and the public to get to North Borneo, especially Sabah," Kilian said.

He said the Northern Territory has no preference as to which type of airline - full service or low-cost-carrier - it wants to service the sector. "First come, first served," he said.

He does not dismiss the possibility of discussing the idea with Malaysia Airlines, as Northern Territory prefers the flights to be operated by a Malaysian airline. He did not say why.

The proposed direct flights, he said, would be line with Northern Territory's rapid development process.

Meanwhile, when contacted, AirAsia executive director Kamarudin Meranun said the airline feels honoured by Kilian's offer.

However, he said it is crucial for the airline to study the feasibility of starting the Kota Kinabalu-Darwin service first. This is mainly to determine the market size and demand for the route, the operation cost involved and opportunities to fly to other potential destinations in Australia.

"AirAsia is always eager to fly to new destinations. Whether or not we will take up the offer will depend entirely on the findings of our study," he told Business Times in a telephone interview from Cambodia.

Malaysia Air wants South India on its radar
Naveena Thawani
31 March 2005
The Economic Times
The Times of India

KUALA LUMPUR: After expanding its footprint in Australia and Europe, Malaysia Airlines has now trained its sights on South India. The carrier plans to introduce flights to Kochi, Madurai, Trichy and Amritsar over the next three years, as well as increase the frequency of its flights to Mumbai, Hyderabad, Bangalore and Kolkata.

"India has a lot of potential for growth. The government of India has been very pragmatic and supportive. Hence, we plan to increase the number of destinations on the India-Malaysia route and upgrade our flights on various sectors," Malaysia Airlines' managing director, Ahmad Fuaad Dahlan, told ET.

Apart from ferrying passengers from Malaysia to India and back, the carrier is targeting Indian travellers to New York, Los Angeles, London and Australia via Malaysia, according to Rashid Khan, senior general manager (sales, distribution & marketing), MAS.

Mr Dahlan was speaking on the sidelines of the launch of Malaysia Airlines' 'An Experience Redefined' - a comprehensive refurbishment of 17 Boeing 777-200 and 17 Boeing 747-400 aircraft - in Kuala Lumpur on March 23, '05. The upgrade involves refurbishing the B777 and B747 with the latest technology and innovative design in cabin comfort, complete with a new in-flight delivery service to capture a greater segment of the premium market.

For the B777-200, the reconfiguration involves converting the three classes (first, business and economy) to just two classes - business (42 seats) and economy (247 seats). The B747-400 will continue to have three classes, but fewer seats to enhance passenger comfort.

It will have 12 first, 41 business and 306 economy class seats. MAS is also offering an advanced in-flight entertainment system with more than 350 entertainment options accessible via personal digital touch-screens.

"It's all about creating an entirely new experience for our premium passengers, from seat luxury and comfort, to high-end in-flight entertainment and fine dining," added Mr Dahlan. Malaysia's PM Seri Abdullah Ahmad Badawi launched the first refurbished B747-400, which will service the Kuala Lumpur-London route.

Malaysia Airlines is spending RM 700m (approximately $184m) to upgrade its aircraft over a two-year period. Since December '04, four of its upgraded B777-200 have gone into service, flying to Tokyo, Zurich, Sydney, London, Shanghai, Brisbane, Rome, Adelaide, Auckland and Frankfurt.

"An overwhelming majority of our customers have expressed satisfaction with the new features introduced in our upgraded B777-200s," Mr Khan said. Customer satisfaction from seat comfort has risen from 83% to 90%, while leg-room rating has increased from 86% to 92%, according to an MAS survey.

Malaysia Airlines plans to upgrade one aircraft per month; the entire upgrade process is likely to be completed by July '06, Azmil Hashim, assistant GM, product development & services, MAS, told ET. The upgraded aircraft will service long-haul routes like Australia, London, Paris, Amsterdam and Los Angeles.

MAS also plans to invest in the development of its crew. "Over the next two years, more than 3,000 crew members will be trained under this programme. New service-delivery modules will focus on increased interaction with passengers," Mr Dahlan said.

It will contribute to its bottomline.

The carrier may hike its fare structure and be more selective in offering discounts. MAS plans to offer the Airbus A380 from '07 to take on increased competition from rivals. "Such efforts will help to maintain MAS' premium position and make Malaysia the airline capital of the world," Mr Badawi said.

Malaysia's AirAsia says Australia within its sights, if opportunities arise
By SEAN YOONG
31 March 2005

KUALA LUMPUR, Malaysia (AP) - Malaysia's AirAsia, the region's biggest budget carrier, might fly to Australia if offered profitable routes but wants to focus on new aircraft purchases and flights within Asia for now, a company executive said Thursday.

"We will not rule out Australia," AirAsia Executive Director Kamaruddin Meranum told The Associated Press. "If there's an attractive offer for commercially viable flights that fit with our regional expansion plans, we will not miss out on any opportunities."

Kamaruddin was commenting on Malaysian media reports that Australia's Northern Territory authorities have informally invited AirAsia to fly between the port city of Darwin and Malaysia's Kota Kinabalu, the capital of Sabah state on Borneo island.

Such flights would take slightly more than three hours, which AirAsia is able to fly, but it was "still premature" to confirm whether the airline was interested because Australian officials have not directly approached it with the offer, Kamaruddin said.

"Right now, we're quite tight," Kamaruddin said. "Our main focus for this year is on aircraft financing and the consolidation of our other routes that we're operating."

AirAsia, Southeast Asia's only listed no-frills carrier and the biggest by fleet size, has been aggressively expanding to fend off competition from rivals such as Thailand's Nok Air, Singapore's privately owned Valuair, Singapore Airlines' unit Tiger Airways, and Jetstar Asia, an offshoot of Australia's Qantas Airways.

Northern Territory International Trade Director Quentin Kilian reportedly said during a meeting of international CEOs in Sabah on Monday that there was no direct access between Darwin and Kota Kinabalu, which is the main entry point into northern Borneo.

Kilian was quoted as saying he hopes to speak with AirAsia's chief executive officer, Tony Fernandes, who was not present at the meeting, to invite the carrier to fly to Darwin.

AirAsia currently serves Malaysia, Indonesia, Thailand, Singapore and Macau. It will fly to the Philippines in April, with new routes to Laos, Vietnam and Cambodia expected by March 2006.

Thai AirAsia -- a joint venture between AirAsia and Thailand's Shin Corp. -- will fly between Bangkok and Xiamen from April 25, making it the first foreign low-cost carrier to fly to China.

As part of its expansion plans, AirAsia's Fernandes said earlier this month the company plans to increase its firm orders for new Airbus A320 planes to 60 from 40 previously, and will retain its option for another 40 new planes.

AirAsia flew about 3.2 million passengers in 2004, and expects 6 million travelers in 2005.

Malaysian Air sees revenue gain from new IT system

KUALA LUMPUR, April 1 (Reuters) - Malaysian Airline System Bhd (MASM.KL) said on Friday it expects a revenue gain of up to 100 million ringgit ($26 million) a year after acquiring a new accounting system.

"It could be as much as 50 to 100 million a year," Malaysian Airline Chief Financial Officer Low Chee Teng told a news conference.

The state-controlled carrier had just bought a new revenue accounting system for a total cost of 20 million ringgit.

Low said the revenue gain would go to the airline's bottomline. ($1=3.8 ringgit).

Malaysian budget airline plans flights to Mindanao
Anna Barbara L. Lorenzo
1 April 2005
BusinessWorld

Malaysian budget carrier AirAsia is already looking at more flight destinations in the country even before its maiden flight to the Diosdado Macapagal International Airport in Clark, Pampanga on April 5.

AirAsia Chief Executive Officer Toni Fernandes yesterday said the airline would also like to fly directly to Davao, Cebu and Zamboanga from Kuala Lumpur and possibly Kota Kinabalu in six months.

Its one-way ticket to Clark from Kuala Lumpur costs P1,949, and from Kota Kinabalu, P1,799. A round trip, including travel taxes, insurance and administration fees, cost at least P5,000.

"Our direct investment here is $200,000. If we fly new destinations, we will need two additional planes, each costing about $30 million," Mr. Fernandes said.

He also said his company was not bothered by security concerns in Mindanao. AirAsia is the only budget carrier flying to Narathiwat, a Muslim province in Thailand.

As a new market, AirAsia expects Philippine flights to contribute at least 3% of total revenues. It also expects flights to be 80% full, with passengers averaging 200,000 to 300,000 annually.

"We want to bring Malaysians, Thais and Indonesians here. Many foreign tourists from Europe and America who use us to go to Phuket and Bali can also now go to the Philippines. There is tremendous potential for growth in the airline industry to be unlocked with low fares," Mr. Fernandes said.

AirAsia is just one of several no-frills carriers taking advantage of the country's "liberalized charter program," which aims to boost tourism, cheapen air travel for Filipinos overseas, and drive activity in airports outside Metro Manila.

Tiger Airways will launch daily flights to Clark from Singapore on April 4, while Thai Air Asia plans to run flights to Clark from Bangkok.

The government has prioritized airports in Clark and Subic for the charter program, but Civil Aeronautics Board Executive Director Tomas Manalac said international airports in Davao and Cebu could also be involved.

AirAsia will use only one aircraft for its daily flights to Clark. A 148-seater Boeing 737 will leave Kuala Lumpur at 7:20 a.m. and arrive in Clark at 11:15 a.m. The same aircraft will leave for Kota Kinabalu at 11:40 a.m. The 2:05 p.m. flight from Kota Kinabalu will arrive in Clark at 4:05 p.m., where it will again load passengers bound for Kuala Lumpur.

As much as 50% of all the seats on its first week of flying are already reserved.

Booking from the Philippines is done online, but Mr. Fernandes said the airline was in talk with mobile operators Smart Communications and Globe Telecom for SMS flight reservations - an option already offered in Malaysia.

Despite its low prices, Mr. Fernandes said AirAsia profits well from flying to more than 100 destinations in Asia. Sales also involve cargo services, in-flight advertising, and food sales on board aircrafts.

AirAsia is a subsidiary of Tune Air Sdn Bhd, with hubs at the Kuala Lumpur International Airport and Senai Airport in Malaysia, Bangkok International Airport in Thailand, and Soekarno-Hatta International Airport in Indonesia.

Business Times - 06 Apr 2005

AirAsia suspends Bangkok-Johor Baru service

Move attributed to plane shortage, but analysts think otherwise

By EDDIE TOH

(SINGAPORE) Leading Malaysian budget airline Air Asia has quietly scrapped its service between Bangkok and the southern city of Johor Baru, which is located near to the regional air hub in Singapore.

When contacted yesterday, company officials confirmed that the budget carrier suspended the JB-Bangkok service in December last year. The airline has retained its schedule of flights between Singapore and Bangkok.

'We will restart JB-Bangkok. We stopped because of shortage of planes,' airline owner Tony Fernandes told BT.

Another AirAsia executive denied that the decision was taken due to the proximity of Senai to the busy international airport at Changi in Singapore. She said AirAsia re-routed one aircraft to Kuala Lumpur International Airport due to lack of planes at the main international airport in Malaysia.

Industry observers are not entirely convinced that the suspension of the JB-Bangkok service was a simple case of aircraft re-deployment. They feel that the service could have suffered as a result of the proximity of Senai Airport to Changi.

Another complication: Singapore has disallowed a direct bus service between Senai and Singapore. The absence of a direct bus service has made it cumbersome for travellers in Singapore to go to Senai.

One analyst said the most important factor could be the growing number of budget airlines in Singapore.

In less than one year, three Singapore-based budget carriers - Tiger Airways, Jetstar Asia and Valuair - have grown rapidly to rival AirAsia.

'It doesn't always make sense for a Singapore passenger to travel to Senai to catch a flight to Bangkok or elsewhere. Sometimes, it's cheaper to fly out of Singapore,' said a budget-conscious traveller.

But the cancellation of the JB-Bangkok service won't hurt AirAsia much, analysts said.

AirAsia recently started flights to Macau, China and the Philippines.

AirAsia's rivals are facing problems in their regional expansion as well.

Jetstar, the budget arm of Australia's Qantas Airways, was unable to start flights to Surabaya and Jakarta in Indonesia, and Shanghai in China. It also lost out Ho Chi Minh City to rival Tiger, and was forced to cancel its loss-making daily Pattaya flights.

And Tiger, which is an associate of Singapore Airlines, was reportedly suffering from plummeting traffic on its Hatyai route amid the recent wave of separatist violence in southern Thailand.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

Business Times - 06 Apr 2005

300,000 people a year on Manila run: AirAsia

(MANILA) AirAsia Bhd, South-east Asia's biggest discount carrier, said its flights to the Philippines, which started yesterday, will service 300,000 passengers annually.

'We want to bring Malaysians, Thais, Indonesians here,' AirAsia chief executive Tony Fernandes told reporters yesterday in Clark Field as the airline started its Clark Field-Malaysia route. Clark is a former American airbase, 77 kilometres north of Manila.

Discount carriers such as AirAsia and its rivals Valuair Ltd, Singapore Airlines Ltd's partly owned Tiger Airways Pte, and Qantas Airways Ltd's Jetstar Asia are adding destinations in South-east Asia as competition mounts among the 10 budget carriers in the region.

AirAsia was the second budget carrier to get landing rights to the Philippines after Tiger Airways.

Mr Fernandes said the Philippines-Malaysia route will provide as much as 4 per cent of the airline's annual sales.

The airline, which will fly between Clark Field and Malaysia's Kota Kinabalu and Kuala Lumpur, made RM392.7 million (S$171.9 million) in sales for the year ending June 30, 2004.

Thai AirAsia Ltd, a unit of AirAsia, will provide flights between Clark Field and Bangkok later this year, Mr Fernandes said.

Tiger Airways, which also started yesterday its maiden flight from Clark Field to Singapore, said the route will service at least 100,000 passengers a year once the airline is permitted to fly daily by Philippine authorities.

'A lot of Singaporeans would go to the Philippines for golf and leisure,' Tiger Airways chief executive Tony Davis said. 'Golf is very expensive in Singapore. At the same time, we hope to bring in more Filipinos to the Lion City.'

Tiger Airways started its thrice-weekly flights to Singapore with an introductory one-way ticket price of US$16. Mr Davis said Tiger Air will raise its flights to five times a week in June, then to seven days a week in the third quarter. - Bloomberg

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

I guess competition from Changi Airport and all the measures must have made the JB-Bangkok route less optimal than expected.

Malaysia Airlines Moves into Technology of the Future with Aviation Partners Boeing
4 Apr, 2005





04 April 2005: Malaysia Airlines is all set to install winglets for the next generation of Boeing 737 series and Boeing 737 Classic series in the Asia-Pacific region.

This follows the signing of an agreement between Malaysia Airlines Engineering and Aviation Partners Boeing (APB) to set up the first approved Blended Winglet Installation Center in Southeast Asia for APB.

The agreement today signifies yet another milestone in the national carrier’s acquisition of technology of the future and applying it not only for itself but other aviation operators.

A Blended Winglet Performance Enhanced Boeing aircraft saves about 5% in block fuel burn with improved range; better climb performance and dramatic reductions in engine emissions. Typical annual fuel savings for Blended Winglet Equipped aircraft range from 100,000 gallons per year per Next Generation (NG) B737 to over 250,000 gallons per year per B757-200.

It is estimated that if all Boeing aircraft on the planet were retrofitted with Blended Winglet Systems fuel savings would be close to 1.8 billion gallons each year.

Within the Asia Pacific region, APB currently has three modification centres through HAECO in Hong Kong, TAECO in Xiamen and Air New Zealand in Auckland.

Encik Tajuden Abu Bakar, Malaysia Airlines’ Senior General Manager, Technical and Ground Operations, said: “Boeing’s confidence in Malaysia Airlines as the first regional modification centre reflects strongly on Malaysia’s capacity for new technology,”

He said: “It represents a significant leap forward in making the Subang Aerospace Park the recognised regional hub for maintenance, repairs and overhaul.” The Subang Aerospace Park is home to Malaysia Airlines’ engineering division.



Encik Tajuden added: “We are very pleased to collaborate with APB in Blended Winglet Modification and are confident that this will promote technology transfer as well as enhance MAS-APB’s market presence in this region.”

Efforts are currently underway to develop Blended Winglets for Boeing 767 and B777 series aircraft. Malaysia Airlines expects business potential for the modification center to increase when the certifications for the installation of these aircraft are completed.

Signing on behalf of their respective organisations were Encik Tajuden and Mr Mike Marino, the Chief Executive Officer of Aviation Partners Boeing.

Mr Marino said: “The strategic location of the MAS modification center will further boost our market presence and growth in the Asia-Pacific region, which is experiencing spectacular sales growth. We are optimistic Malaysia Airlines, with its exceptional engineering capabilities, will add value to our network and the center will benefit airline operators in the region.”

APB Sales Director, Mr Craig McCallum, who was present, said: “The positive experience of investing in Performance Enhancing Blended Winglet Technology starts with the installation. Partnering with Malaysia Airlines is a strong assurance to customers in Asia Pacific that they are in good hands.”

Also present was Malaysia Airlines Engineering General Manager, En Roslan Ismail, who said: “It is a testimony of our superior quality, well -developed capability and proven reliability especially given the competitive MRO environment in this region.”

Aviation Partners Boeing Chairman, Mr Joe Clark, said: “Anytime you can enhance the productivity of an existing asset, we feel it’s a wise business investment.”

Malaysia Airlines Engineering provides complete engineering services, ranging from airframe maintenance, component repair and overhaul, major modification, cabin upgrade, aircraft “boutique” painting and passenger-to-freighter conversion as well as technical personnel training services.


Issued by Media Relations/Corporate Communications Department Malaysia Airlines, Kuala Lumpur

First Winglet Installation Centre In South East Asia


KUALA LUMPUR, April 4 (Bernama) -- Malaysia Airlines (MAS) Engineering Monday signed a partnership agreement with Aviation Partners Boeing (APB) for the set up of the first winglet installation centre in South East Asia.

Malaysia Airlines' Senior general manager, technical and ground operations, Tajuden Abu Bakar, said MAS Engineering was confident of attaining between RM3 million and RM4 million in revenue within the next three to four months for installation of winglets at its facility in Subang.

All facilities have been put in place at the centre and Malaysia Airlines is currently talking to potential clients.

Tajuden said the winglet installation, which could save aircraft block fuel burn of about five percent was an addition to MAS Engineering overall engineering capability.

"With the soaring price of oil putting pressure on the cost structure of most regional airlines, we anticipate more airlines will opt for winglet installation," he said after the signing here today with APB, a joint venture between Aviation Partners Inc. and the Boeing Company.

The new installation centre would see MAS providing the engineering support services while APB will supply the winglet.

Within the Asia Pacific region, APB already has three such centres, located in Hong Kong and Xiamen, China and New Zealand.

Tajuden said the winglet support services in Subang will only need a small amount of investment as most of the infrastructure have already been put in place.

"We have been training our staff to install and provide support engineering services for the winglets," Tajuden said.

President of APB, Mike Marino meanwhile emphasized that in addition to fuel saving capability, the winglet technology improved aircraft performance by providing better climb performance and dramatic reductions in engine emissions.

"Typical annual fuel savings for Blended Winglet equipped aircraft range from 100,000 gallons per year per Next Generation (NG) B737 to over 250,000 gallons per year per B757-200," Marino said.

Marino said with the centre, MAS Engineering was ready to install winglets for the next generation of Boeing 737 series and Boeing 737 Classic series in the Asia-Pacific region.

Tajuden said efforts were currently underway to develop Blended Winglets for Boeing 767 and B777 series aircraft.

"MAS Engineering expects business potential for the modification centre to increase when the certifications for the installation of these aircraft are completed," Tajuden said.

Marino pointed that the strategic location of the MAS modification centre will further boost APB's market presence and growth in the Asia-Pacific region, which is experiencing spectacular growth.

Tajuden said that the technical centre represented a significant leap forward in making the Subang Aerospace Park the recognised regional hub for maintenance, repairs and overhaul.

The Subang Aerospace Park is home to MAS Engineering division.

-- BERNAMA

MALAYSIA AIRLINES’ 58TH ANNIVERSARY CAMPAIGN
1 Apr, 2005





Malaysia Airlines’ Managing Director, Dato’ Ahmad Fuaad Dahlan, today launched the national airline’s 58th Anniversary campaign to share the carrier’s achievements with Malaysians and bring the joy of first-time air travel experience to Malaysian children.

Over the next one month children in Malaysia between 7 to 16 years of age, who have never travelled by air, will be invited to submit an essay of not more than 100 words and a creative drawing about their own views of how they see Malaysia Airlines in the future.

A panel of judges comprising 5 eminent Malaysians will decide on the most original and creative submissions to select 300 children, comprising 21 from each Peninsular Malaysia state and the Federal Territory and 24 each from Sabah and Sarawak. Malaysia Airlines will later host these 300 children to a 3-day programme of familiarization trips to its key operations locations in Subang and Kuala Lumpur International Airport (KLIA) as well as tourist locations in Kuala Lumpur and Putrajaya.

On the final day of the hospitality, the privileged children will be treated to a joy-ride from KLIA to Kota Kinabalu on Malaysia Airlines’ Boeing 747-400 aircraft where they get to enjoy the ‘new experience’ in-flight hospitality by the airline’s four-time award winning “World’s Best Cabin Crew”. Speaking at the launch ceremony today, Dato’ Ahmad Fuaad said, “Malaysia Airlines is always committed to its corporate citizen’s role of providing affordable air transportation to boost equitable economic and social development in the country as well as enhancing the government’s efforts towards national integration. This time around, we are embarking on this project for the children of Malaysia who will be the next generation of leaders to steer both the national airline and the country towards continued prosperity.”

“We are confident that they will be inspired to emulate the spirit and wisdom of the pioneers who laid the foundation for a successful national airline and a vibrant modern multi-racial Malaysian nation,” he added.

The national airline took to the skies on 2nd April 1947, commencing air services between Kuala Lumpur and Singapore using an Airspeed Consul plane. From a fledging air service between the two cities, the airline has evolved into an award winning world-class carrier, recognised as one of Asia’s largest, flying more than 40,000 passengers to over 110 destinations across 6 continents daily.

Issued by Media Relations/Corporate Communications Department Malaysia Airlines, Kuala Lumpur

New MAS in-flight services promotion blitz takes off today
Monday March 21, 2005





BY M. KRISHNAMOORTHY

KUALA LUMPUR: All Malaysia Airlines (MAS) passengers will soon have more than 350 entertainment options, including 40 films, 60 short features and 200 CD titles on demand, accessible via personal digital touch screens under an upgrade to its in-flight services.

In stages, within 18 months, the airline's entire Boeing B747-400 and 777-200 fleet would be refurbished with this cutting-edge entertainment system.

So far, four of the Boeing 777-200 planes have been refurbished and the others are to be upgraded soon.

Redefining a new experience in flying, MAS will also have third-generation sleeper beds, emerging entertainment technologies and world class cuisine in all its B747-400 and 777-200 aircraft with the tagline: “An Experience Redefined”.

MAS is one of the pioneers in installing these innovative in-flight products and today it made history by taking out bumper advertisements in major dailies in preparation for a massive promotional blitz for its new services. The advertising blitz comprises about 10 to 20 pages in major newspapers.

Travel industry sources invited for the launch event said they are expecting new designs to be painted on the planes' wide body, featuring perhaps Malaysia’s national flower, the Hibiscus.

“The focus will be about creating an exciting new level of comfort, luxury and convenience when the newly-reconfigured Boeing 777-200 and B747-400 aircraft are introduced,” said a CEO of a leading travel and tour operator.

The newly-reconfigured MAS aircrafts are expected to begin flying soon.

US travel company to promote MAS and Malaysia
Saturday March 26, 2005




BY JOHAN FERNANDEZ IN NEW YORK

A US travel company that is a major player in the Indian sub-continent market, plans to aggressively promote Malaysia Airlines (MAS) as well as Malaysia as a destination of choice.

Sky Bird Travel & Tours Inc. president Arvin Shah said that MAS had a big presence in the Indian sub-continent that was not well promoted here and “we want to increase that revenue”.

“We want to create an awareness among our agents and customers of the excellent possibilities of travelling on MAS,” Shah said.

Sky Bird is one of the largest consolidators in the US that handles ticketing needs for Europe, the Middle East, Africa, Asia, and Latin America from all US points of origin.

(An airline consolidator is a company that has various volume-based airfares agreements with one or more airlines.)

It is also one of the top five consolidated companies that have a combined US$1bil (RM3.8bil) in sales a year and 60% of the Indian sub-continent market that included Bangladesh, Nepal and Sri Lanka.

The company, established more than 25 years ago with its headquarters in Detroit, has offices in New York, Chicago, Los Angeles, San Francisco, Washington DC as well as in Bombay and Chennai.

Shah said many travellers here were not aware that MAS was a major player in the Indian sub-continent, with 30 flights a week and to all major cities, as well as other destinations in the region and around the world.

He said those who had flown on MAS were pleased with the excellent service had very high expectations. This in itself was good promotion for the carrier.

He said Sky Bird had 3,000 agents involved in an awareness campaign through e-mail and fax on both the East Coast and West Coast.

Shah said the company was also promoting the South Pacific that included Australia and New Zealand, which were lucrative markets where MAS had the best connections with daily flights to Sydney and Melbourne.

On Wednesday, MAS and Sky Bird held a dinner for travel agents to promote Malaysia and Stockholm as destinations.

MAS area manager for the US Eastern Region, Malkit Singh said the occasion was also to celebrate the use of Boeing 747 for the Newark-Stockholm-Kuala Lumpur route starting Monday.

“With this, MAS will be first airline to have 1st Class to Stockholm,” he said.

Malkit said besides the traditional US travellers, MAS was also looking at the growing affluent Asian

Boeing contract to boost ACM output
Friday April 1, 2005




http://biz.thestar.com.my/archives/2005/4/1/business/p6Nazily.jpg

Dr Nazily Noor (left) and Dr Dinish Keskar after the signing on ACM's appointment to produce aileron panels and components for Boeing 737 airplanes.




ASIAN Composites Manufacturing Sdn Bhd (ACM) expects the manufacture of Boeing Next-Generation 737 aileron components to boost its production by about 15% this year.

“Because of the rapid growth of the global commercial market and the extreme popularity of the 737, this contract will increase our production by about 15%,” said general manager Dr Nazily Noor.

Nazily was speaking at a ceremony held in conjunction with ACM's appointment to produce aileron panels and components for the Boeing 737 family of airplanes and first delivery of the components to Hawker de Havilland in Kuala Lumpur yesterday.

Ailerons are hinged sections on the trailing edge of each wing that are used to help an airplane to bank, allowing the airplane's flight path to curve.

ACM is a strategic alliance between Sime Darby Bhd and Naluri Bhd and their US partners, Boeing and Hexcel Corp, while Hawker de Havilland is a Boeing subsidiary headquartered in Port Melbourne, Australia.

On ACM's expected revenue this year, Nazily said it was difficult to provide the figures as it depended much on the economic growth of its respective client countries.

The company is, however, anticipating a 40% increase in its revenue this year. It recorded revenue of about RM100mil last year.

On the partnership with ACM, Boeing Commercial Airplanes senior vice-president (sales) Dr Dinesh Keskar said the selection of ACM was a good example of a growing partnership between Boeing and the Malaysian aviation industry.

On Boeing’s presence in Malaysia, Keskar said the airplane company had a long-term commitment to the country, adding that Boeing jet airplanes were the predominant models operated by Malaysia Airlines (MAS), AirAsia and Transmile Air.

MAS has a fleet of 111 aircraft, out of which 81 are Boeing airplanes.

MASKargo buys two X-ray machines
Wednesday April 6, 2005


MASKARGO, the air cargo division of Malaysia Airlines (MAS), will invest RM14mil to purchase two X-ray machines to meet US customs requirements, MAS general manager (cargo operations) Mohd Yunus Idris said.

He said MASKargo was expected to use the machines by the end of May for its operations at KL International Airport and Bayan Lepas International Airport, Penang.

“We planned this move nine months ago and the X-ray machines will be here soon,” he told reporters after a visit by members of Motion Picture Association to its Advanced Cargo Centre in Sepang yesterday.

Yunus said the machines cost RM7mil each.

He said the company planned to place the machine outside its warehouse so that all cargo would have to pass through it before going on board the aircraft. – Bernama

http://img236.exs.cx/img236/3713/618345j7ny.jpg

Upgrading to improve MAS ranking
Thursday April 7, 2005


MALAYSIA Airlines (MAS) is upgrading first class and business class for its Boeing 747 and Boeing 777 series aircraft in stages, Deputy Transport Minister Datuk Seri Tengku Azlan Sultan Abu Bakar said.

He said 15 Boeing 777 200 series aircraft have been upgraded and 17 Boeing 747 400 series aircraft would follow suit.

“The airline is confident of improving its ranking in the best airline category via the introduction of new products such as sleeper seats, a sophisticated entertainment system and new menu sets in Boeing 747 and Boeing 777,” he told Datuk Mohd Salleh Tun Said (BN – Kota Belud).

He said the Skytrack Quality Survey showed MAS had dropped from fourth place in 2003 to eighth place last year in the “Airline of the Year” category.

MAS to save up to RM100m via new accounting system
Saturday April 2, 2005



http://biz.thestar.com.my/archives/2005/4/2/business/b_pg03lowmas.jpg

Low Chee Teng (left) exchanging documents with Joshua Koshy after the signing in Kuala Lumpur.




MALAYSIA Airlines (MAS) expects its new revenue accounting system to add between RM50mil and RM100mil per annum to its bottom line as a result of cost reduction, efficiency gains and revenue enhancement.

“With RAPID (Revenue Accounting Proration Interline Billing and Decision Support System), we will be able to generate very comprehensive revenue reports which are timely and accurate. This will enable us to enhance our support services to our international functions such as planning, sales and marketing as well as our travel agencies and customers, “ said its chief financial officer Low Chee Teng.

He added that revenue enhancement and savings would be derived from different components such as planning, sales and marketing.

Low was speaking to reporters after a signing ceremony between MAS and Mercator, the system provider and information technology arm of the Emirates group. RAPID, replacing the old system AIRMAS, is scheduled to cut over in January 2006.

Commenting further on the system’s advantages, Low said RAPID would enhance the company’s audit system and had components that could detect fraud in activities such as collection of fares.

He added that the company also expected productivity to improve as most of the current manual data entry functions to generate accounting and management reports could be performed by RAPID.

Mercator senior vice-president (information technology) Joshua Koshy concurred, adding that the system would allow MAS to close its accounts in a matter of days, thus enhancing the company's competitiveness.

“The optimisation of revenue is important for an airline,’’ said Koshy.

Mercator is experienced in the development of airline products, including a broad range of financial, cargo, airport, reservations and customer relationship management (CRM) solutions. It has over 130 clients globally, including Singapore Airlines and Qantas Airways.

Meanwhile, in an effort to boost Maldives' tourism sector, MAS said in a statement on March 28 it would fly thrice weekly to the country.

Currently, the airline flies twice weekly on the Kuala Lumpur- Male-Colombo-Kuala Lumpur route. The additional Kuala Lumpur-Male-Colombo-Kuala Lumpur frequency was expected to help boost Maldives' tourism sector, which suffered a setback following the tsunami, the statement added.

The best service in the sky – three years running!


For the third consecutive year, airline passengers have voted Malaysia ‘Best Cabin Staff’ in the Skytrax 2004 Global Survey*. According to the worldwide poll, Malaysia Airlines is the world's best in staff attentiveness, efficiency, sincerity, personality and warmth of cabin service.

Experience what it's like to be treated as the best, by the best. Fly Malaysia today with Webjet and save on the cost of your ticket.

* Competitive Performance Survey conducted by Skytrax Research, 2004


http://hq.malaysiaairlines.com/hub_image/687CE8CF-A332-49CB-8E1A-391E61EA1F62/hd_topnav1.gif


Delicious Malaysian Cuisine while watching your favourite film


Dine on Malaysian culinary classics such as succulent Beef Rendang and tasty Nasi Lemak to international favourites such as Chicken Teriyaki and Fish Provencale.

Complement your meal with a selection of beverages, including fine wines from the best regions in the world – all while watching your favourite film or television show.
You’ll remember fondly your trip with Malaysian Air.


Exceptional from the ground up


The outstanding service begins from its ultra-modern base at Kuala Lumpur International Airport (KLIA). Clear indications, modern shops, exquisite restaurants are only some of the conveniences to make your stay in ‘KL’ or transfer to another exciting destination a relaxing and pleasant adventure.

Malaysia Airlines proudly presents Enrich
Saturday April 2, 2005


Enrich membership is the key to fulfilling your travel dreams. It will open up a whole new world of travel benefits and privileges, because Malaysia Airlines wants to reward you. Free travel, holiday packages, offers and lots more!

For the deserving frequent flyer, Enrich provides you with many ways of earning valuable Enrich Miles, which you can redeem for the various rewards. It's so easy with our wide selection of participating partners. Whether you are traveling with us or our airline partners, staying with our international hotel partners, making an international call, renting a car or just shopping, you life will be enriched further.

Just quote your Enrich membership number every time you make your flight reservations or use the services of our Enrich partner. Go on! Experience the Enrich (http://hq.malaysiaairlines.com/mys/eng/enrich/enrich/enrich.asp) lifestyle today.

MASkargo Launches Hangzhou Cargo Centre
Issued on 12 January 2005.





HANGZHOU (China), 12 January 2005 - Malaysia Airlines Cargo Sdn Bhd (MASkargo) today expanded its capability by becoming the first foreign airline to operate its own cargo centre in China, with the launch of Hangzhou Cargo Centre (HCC).

The Deputy Secretary-General of Zhejiang Province, Wang Xiao Ming and Malaysia's Deputy Minister of Transport, Tengku Dato' Seri Azlan ibni Sultan Abu Bakar jointly launched the HCC in a glittering ceremony at the cargo centre today. Also present was senior officials from Malaysia and China.

The opening of HCC is expected to contribute substantially to the rapid growth of China as the fastest growing market for MASkargo, the air cargo division of Malaysia Airlines.

Malaysia Airlines Senior General Manager (Cargo), Dato' J J Ong, said by operating its own warehouse in China, MASkargo is now able to introduce many innovative products, which was previously not available at other international hubs.

Among the new products, he said, include the establishment of the first international Priority Business Centre at HCC, short cut-off times for cargo acceptance, and special services currently only available at MASkargo's Malaysian cargo hubs.

"We are the only airline in China with our own warehouse facility. We can do a lot of things and obviously we can't do this if we don't operate the cargo centre on our own," said Ong.

The opening of HCC is expected to alleviate the cargo congestion currently being faced at Shanghai's Pudong International Airport. MASkargo currently operates 11 scheduled B747-200 freighter flights weekly, in addition to twice daily B777 passenger flights, and is the largest freighter operator in Shanghai.

MASkargo is positioning HCC as a major secondary hub for China, with the current flight schedule (KUL - HGH 1x weekly and HGH - DXB 3x weekly) expected to rise significantly by next fiscal year. The cargo carrier launched scheduled freighter flights into HGH on 22 September 2004.

The HCC, a 2,973 sq metre logistic warehouse with the capacity to handle 110,000 tonnes of cargo annually, is expected to double the cargo tonnage handled by MASkargo in China. Located in the Zhejiang province, Hangzhou is within range of major industrial centres for sectors such as textiles, chemicals, machinery tools and electronics.

The cargo centre is linked to major cities via an excellent expressway system, with Shanghai just 2.5 hours away by road and other major industrial cities such as Ningbo (1.5 hours), Wuxi (2.0 hours), Wenzhou (3.5 hours) and Suzhou (1.5 hours) only a few hours drive away.

The Hangzhou Xiaoshan International Airport is situated 27 kilometres from downtown Hangzhou, with the capacity to handle 8 million passengers and 110,000 tonnes of cargo annually.

MASkargo's Priority Business Centre, first introduced in Kuala Lumpur International Airport (KLIA) in 2002, and in Penang (Malaysia) last year, offers personalised services on all air cargo-related transactions. The centre would help cut turnaround times for processing, loading and unloading.

MASkargo (http://www.maskargo.com/), the air cargo division of Malaysia Airlines, operates two owned and six leased B747-200 freighters, and its freighter services currently cover KLIA (KUL), Penang (PEN), Hong Kong (HKG), Melbourne (MEL), Perth (PER), Osaka (KIX), Shanghai (PVG), Bangalore (BLR), Bangkok (BKK), Dubai (DXB), Taipei (TPE), Sydney (SYD) and Tokyo (NRT).

In Europe, MASkargo destinations include Amsterdam (AMS), Frankfurt (FRA), Manchester (MAN) and Basel (BSL). It also offers belly space capacity on Malaysia Airlines' 100-plus aircraft passenger fleet serving almost 100 destinations worldwide.

At the KL International Airport (KLIA), its home base is the Advanced Cargo Centre (ACC), a 108-acre complex designed specially for MASkargo's sophisticated state-of-the-art cargo handling facilities and touted as one of the region's advanced cargo centre.

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Pangkor Laut Resort - Malaysia (One Island One Resort)

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Select your preferred class. (http://www.masworldwide.com/welcome.asp?user_name=)

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MPs debate air hostess uniforms

LUSTFUL men and body-hugging outfits worn by Malaysia Airlines hostesses split legislators along gender lines as both came under fire in parliament, local media reported Friday.

Male lawmaker Idris Haron complained that "such a tight body-hugging outfit would result in male passengers sexually harassing the stewardess".

Female legislator Rozaiday Talib, a doctor, responded by blaming boozy men for sexual harassment on aircraft, the Sun reported.

"When a person is slightly intoxicated, he becomes bolder and his desires and libido become stronger," she said.

Rozaiday was supported by another woman parliamentarian, Tan Liam Hoe, who said: "When the male passengers board a plane, all they tend to look at are the stewardesses' breasts. This shows that they do not have strong values."

Another man, Salahudin Ayub, called for the national carrier in this mainly Muslim country to replace the stewardesses' elegant, full-length but shapely "kebaya" with "loose-fitting and sober" dresses.

Business Times - 15 Apr 2005

Malaysia Airline's pilots demand sharp pay rise

KUALA LUMPUR - Malaysia Airline pilots are demanding a pay rise of up to 60 per cent, warning the national carrier it may lose pilots if it fails to comply, reports said on Friday.

The Malaysia Airlines Pilots Association (Mapa), which has some 1,200 members, rejected the airline's offer of a 25 per cent hike in salary during a special meeting on Thursday, the Malay Mail newspaper said.

The pilots are seeking between 40 and 60 per cent increases in basic pay, a 100 per cent increase in productivity pay and better perks, the daily said.

A spokesman for the airline declined to comment, saying negotiations were ongoing. Mapa officials could not be reached for comments.

The newspaper quoted sources as saying that Mapa unanimously rejected the 25 per cent salary increase offer as it came with several conditions, including downgrading an annual first-class free flight and hotel stay for captains and their families.

'The pilots are not willing to forego what little perks they enjoy just for a nominal pay increase which still cannot match what the other airlines are offering,' a source said.

Since November 2003, the carrier has lost 81 pilots, including 50 captains, the daily said, putting a strain on remaining staff who are now hitting the maximum flying hours permitted.

'As a result, flights are being delayed almost every day. The situation will get worse if more pilots start leaving,' the source said.

The New Straits Times said Malaysian pilots earn between RM9,000 and RM20,000 (US$2,368 and US$5,263) a month. It said some Middle Eastern airlines were recently luring pilots from the region with monthly salaries of up to RM40,000.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

Malaysia Airlines used to fly to Madrid-5 years ago- but they cancelled the route, even though I've been told that it had a good occupation rate.

At first,the route was Kuala Lumpur-Zurich-Madrid and then it switched to Kuala Lumpur-Dubai-Instanbul-Madrid.

I hope that Malaysia Airlines comes back to Spain someday

Malaysia Airports launches KLIA e-timetable in Madrid
Tuesday September 28, 2004
BY B.K. SIDHU IN MADRID




MALAYSIA Airports Holdings Bhd (MAHB) launched the KLIA e-timetable in Madrid on Sunday evening, the first airport in Asia to offer air travellers such a facility.

The e-timetable, accessible at www.klia.com.my, will enable people to plan their air travel into and out of, or via, Kuala Lumpur; and to ensure seamless connections to almost any destination in the world.

It offers details on 69,384 flights, 523 airports, and 42 carriers; and linkages to specific airlines so travellers can book flights online.

MAHB managing director Datuk Bashir Ahmad said the launch was “another step by MAHB towards improving its services to its customers besides promoting Malaysia as a good travel destination.’’

The launch was held in conjunction with the three-day 10th World Routes Development Forum which opened in Madrid on Sunday.

While most e-timetables can be downloaded onto laptops or desktop computers, the KLIA e-timetable is unique in that it can also be downloaded to personal digital assistants and pocket PCs. The file does not require a large memory space, and many users can log on at any one time.


http://biz.thestar.com.my/archives/2004/9/28/business/p1bashir.jpg

Datuk Bashir Ahmad


Bashir declined to disclose how much it cost MAHB to provide the facility.
“It is a question of whether we want to do it or not. What we are offering is a facility that allows travellers to plan in advance, and make informed decisions based on the itineraries they can access at their fingertips,’’ he said.

The e-timetable is the first step. MAHB is also looking at partnerships with hotels and Express Rail Link to include hotel accommodation and rail passes.

Steve Brown, the key account manager of Innovata, the company commissioned by MAHB to maintain the website, said: “This is the best technology produced so far for airports.’’

Innovata also manages e-timetable websites for seven airports in Britain including Heathrow and Gatwick, about 20 airports in the US, and the airports in Bahrain, and Hamburg.

Meanwhile, the organisers of the forum have decided that Routes will be held out of Europe in either 2006 or 2007.

“Our strategy is to move the forum once every three years to Asia or the US,’’ said managing director Mike Howarth

MAHB was keen on the forum to be held in Malaysia, Bashir said. “We would be happy to support it.’’

At this year’s event, some 1,200 delegates representing airports and airlines are expected to hold 11,000 meetings. This year also sees representation from the US and China in attendance for the first time.

MAS Teams Up With Leading Edge Aviation Service For Aircraft Painting
April 18, 2005 14:26 PM





KUALA LUMPUR, April 18 (Bernama) -- Malaysia Airlines (MAS) has teamed up with Leading Edge Aviation Services of the United States to provide "boutique" world class painting services to major carriers, said its senior general manager Technical and Ground Operations, Tajuden Abu Bakar.

This highly specialised service is part of MAS programme to boost the government's plan to make the Subang International Aerospace Park the regional hub for maintenance, repairs and overhaul (MRO) of aircraft.

In fact, the "Hibiscus B747 aircraft" unveiled recently by the Prime Minister on March 23, that was painted with a dazzling array of colours, was an example of the superior quality of aircraft exterior finishes now available at MAS.

"The external appearance of an aircraft reflects the quality and personality of an airline," Tajuden told reporters after the signing of a memorandum of understanding (MoU) between MAS and Leading Edge in specialised aircraft "boutique" painting here Monday.

He said MAS, which had recently signed an agreement with Aviation Partners Boeing to set up the region's first modification centre for the installation of blended winglets, would now be able to offer world class third party aircraft maintenance in addition to the highest quality aircraft finishes.

The MAS Engineering MRO facilities would be the first in the region to offer these specialised and focused services, he said.

Leading Edge is the world's most established aircraft painting company with over 1,600 aircraft painted since 1989 and it currently operates five paint hangars at Amarillo International Airport in the US.

For record, its president Micheal Manclark said the company had been able to paint about 15 aircraft in a week.

He said the company had wanted to expand its business in Asia following the numerous requests received from the region and had found MAS to be the right partner to get its exclusive contract.

"The partnership with MAS and the focus of our product, will promote technology transfer to the national carrier and enhance MAS market presence in the region, without doubt," he said.

The two companies would work together marketing the MRO facilities at MAS to expand the customer base at Subang.

At present, the facilities would accommodate painting between six to 10 days per aircraft.

MAS has 111 aircraft, of which between nine to 11 aircraft are on the ground at any one time for maintenance purposes.

-- BERNAMA

Business Times - 20 Apr 2005

MAS to raise fuel surcharge over rising oil prices

KUALA LUMPUR - Malaysian Airline System, the state-owned carrier, will raise its fuel surcharges for all flights by at least 52 per cent from May 1, the national Bernama news agency said on Wednesday.

It quoted Transport Minister Chan Kong Choy as saying that the Cabinet has agreed to a request for the increase by MAS and its holding company Penerbangan Malaysia Bhd.

It said the surcharge for long haul international flights would go up from RM50 (US$13) to RM76 (US$20). For regional flights the surcharge will more than double from RM15 to RM38, Bernama said.

'The request by MAS and Penerbangan Malaysia Bhd regarding the charges was agreed upon by the Cabinet today due to the increase in fuel prices,' Mr Chan was quoted as saying. Government-owned Penerbangan Malaysia holds 69 per cent of Malaysian Airlines.

The fuel surcharge was imposed by the airline on May 26, 2004 to ease the burden caused by high global oil prices.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved

Low-cost Air Asia achieves 3 Stars
http://www.airlinequality.com/Airlines/AK.htm

Rankings are based on an airline's front-line Product & Staff Service standards - they do not assess frequent flyer Programmes, fares, schedules or route networks.

Air Asia chief backs Qantas on LA route
By Scott Rochfort
January 25, 2005




The head of Asia's largest low-cost airline has accused Singapore Airlines of double standards in its long-fought campaign to gain access to Qantas's lucrative Sydney-Los Angeles route.

With Singapore Air protesting it does not enjoy the same rights to fly on certain routes out of Australia as Qantas has to fly out of Singapore, AirAsia chief executive Tony Fernandes said the Singaporean authorities had hindered his airline's access into the island state.

"I support [Qantas chief executive] Geoff Dixon 250 per cent," he said. "Singapore would give them what Singapore wants to give them."

With AirAsia's 49 per cent Indonesian subsidiary AWAIR being forced to refund thousands of airline tickets in the past week after failing to gain its air operator's certificate to fly into Singapore, Mr Fernandes questioned Singapore Air's claims of being anti-protectionist.

"On one side they criticise the Australian Government for not allowing them [access to the Australia-US route] but twice we have been slammed."

Mr Fernandes also noted AirAsia's frustration in being blocked from operating a bus shuttle from the Malaysian Airport of Senai across the causeway into Singapore, which he said would represent competition to Singapore Airlines.

AWAIR is considering legal action against the Singapore government over not being granted access into Singapore in time for its first scheduled flight last Wednesday.

The airline said it opened tickets for the route "on the understanding that all necessary documentation including all flight-related and safety compliance certification has been submitted to CAAS [Civil Aviation Authority of Singapore]".

Mr Fernandes said the Singapore authorities had only raised their objections to granting AWAIR a licence at the eleventh hour, after three months of talks with the airline.

The Singapore Transport Minister, Yeo Cheow Tong, however, had earlier told the Aviation and Tourism Outlook conference in Singapore that he was willing to give Qantas "whatever they want".

With Qantas complaining that Singapore Air's push to enter the US route would create an uneven playing field, Mr Yeo said: "We are very happy to sign open skies agreements with any country, and especially Australia.

"After all, we have economic ties, we've got very strong relationships that go back many many decades. Who else [is] better to have an open skies agreement with than Australia?"

The minister said he believed there were few "remaining limitations" on where Qantas could fly out of Singapore, "as can be seen with the setting up of Jetstar Asia in Singapore ... it will benefit Qantas to a huge extent."

From:News (http://www.smh.com.au/news/Business/Air-Asia-chief-backs-Qantas-on-LA-route/2005/01/24/1106415528093.html?oneclick=true)

despite all that.. does any1 knows how the LCC at KLIA going to look like?

Malaysian Air: Fuel Charge Temporary; Driven By Oil Price
25 April 2005

KUALA LUMPUR (Dow Jones)--Malaysian Airline System Bhd. (3786.KU) Monday said its planned hike in fuel surcharges from May 1 is temporary.

"The surcharge is specific to the price of jet fuel and will not be permanent," the company said in a press release.

"When (jet fuel) prices reduce to $37.72 per barrel, and (are) sustained for 30 days, the surcharge will be removed," it added.

The remarks from Malaysian Airline - owner of Southeast Asia's biggest passenger plane fleet - come at a time when the airline is trying to improve fuel efficiency, including replacing its aging single-aisle planes with new aircraft.

In February, Malaysian Airline blamed high fuel prices for a 75% year-on-year drop in third-quarter net profit to MYR57.1 million. Malaysian Airline operates the national carrier Malaysia Airlines.

Monday, the company said, "The increase and the new fuel surcharges are inevitable because fuel prices continue to escalate rapidly and unabated, from US$37.72 per barrel in May 2004 to US$71.50 as at 22 April 2005."

The government, which owns 69% of the company, April 20 approved a hike of at least 52% in fuel surcharges from their May 2004 levels. For the first time, surcharges were also imposed on domestic flights.

AirAsia Seeking Malaysia Govt Nod For Fuel Surcharge
25 April 2005

KUALA LUMPUR (Dow Jones)--AirAsia Bhd. (5099.KU), Southeast Asia's biggest low-cost carrier, Monday said it is seeking approval from the Malaysian government to add fuel surcharges to its airfares.

"Once approvals have been granted, the airline would reevaluate the situation and decide on the next course of action," AirAsia said in an e-mailed statement.

AirAsia's move follows Malaysian Airline System Bhd.'s (3786.KU) move to raise fuel surcharges at least 52% from May 1.

In addition, Malaysian Airline is also imposing for the first time surcharges on airfares for domestic routes.

AirAsia - the region's only listed low-cost airline - also said it "has no immediate plans" to impose surcharges.

Jet fuel prices have risen more than 60% in the past one year, AirAsia said.

Nevertheless, "being a new airline with many immature routes, a fuel surcharge will have no impact on demand especially as airlines in the region have put in surcharges between $5-$20," Chief Executive Tony Fernandes said in the statement.

The statement also noted that Thai AirAsia, a 51-49 joint venture between Thailand's Shin Corp. and AirAsia, has already announced plans for surcharges on domestic airfares. However, AirAsia didn't say when or whether the Thai AirAsia surcharges have been implemented.

Company officials couldn't immediately comment on the surcharges.

AirAsia focus on 'good job for Xiamen'
Danny Chung
25 April 2005
Hong Kong Standard

Malaysian budget carrier AirAsia is looking to take things slowly and carefully in China as it starts its service between Bangkok and Xiamen today.

Executive vice-president Kathleen Tan said despite the attraction of the mainland aviation market, the first foreign low-cost carrier to fly to China aims to keep expansion plans under control.

She said the airline wants to focus on "doing a good job for Xiamen first'' before offering another route because of the danger of expanding too fast.

"If you can't do a good job, then you will find you start cutting flights,'' she said.

Tan said the airline, which also serves the Bangkok-Macau route, has received a good response from potential customers since it began selling tickets with people asking where to buy them and how to obtain visas.

But ticket distribution is a problem, she said, as well as educating Chinese about the low-cost carrier concept.

However, the firm is working with Thai tourism authorities to set up a hotline in China to deal with this.

Tan remains bullish on prospects.

"There is a big FIT [fully independent traveller] market in China because you are dealing with a new generation of Chinese who are surfing the Net,'' Tan said.

Xiamen from Bangkok is just under the three hours' flying time, which she said is the limit for a budget airline, and which the airline would be reluctant to exceed.

Asked about future plans, she said: "Long term, we may look, but not now, at operating a hub in China or we will establish a `China AirAsia.' Then we can look to flying to more points.''

As to the location of the hub, she said it would concentrate on flying out of Bangkok to southern China cities within a three-hour radius. She dismissed suggestions that operating a hub would go against point-to-point principles of budget carriers by saying that if there was a hub in Guangzhou, it would be able to serve the nine provinces south of the Yangtze.

Xiamen airport came in for praise, with Tan saying that it is "willing to do anything to support us.''

This included the airport chairman going as far as undertaking a fact-finding trip to inspect a few low-cost European airports.

She refused to comment on whether Xiamen has offered concessions on airport charges but said it helped by agreeing to cut out use of air bridges and tow trucks as well as educating immigration officials to help the airline achieve a 25-minute turnaround.

Meanwhile, Patee Sarasin, chief executive at Thai startup Nok Air is also looking to start services to Macau.

He let slip that the carrier is planning to fly in October but quickly corrected himself to the "second half.''

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AirAsia joins ranks of excellent airlines
08-03-2005

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AirAsia Bhd has captured the prestigious Market Leadership Award 2005 at the recent Air Transport World Magazine’s 2005 Airline Achievement Awards, one of the most coveted annual events to recognise excellence in the airline industry.

Other notable winners this year were Air France-KLM Group (ATW Airline of the Year) and Virgin Atlantic Airways (Passenger Service Award).

“AirAsia’s triumph at the awards has placed it among the crème de la crème of the aviation industry… joining an alumnus of luminaries such as Virgin (1998), Ryan Air (2000), and Jet Blue (2002), which were all previous winners of the ATW Market Leadership Award,” AirAsia said in a statement on March 8.

“Of all the awards that we have won in the past, this award means the most to us. It is a testament that AirAsia has successfully pioneered low-cost travel in Asia.

“Despite defying market sentiments that LCCs [low-cost carriers] will not take off and encountering numerous uphill battles, we have persisted and persevered,” said AirAsia group chief executive officer Tony Fernandes.

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AirAsia plans S'pore-M'sia border bus service
06-04-2004


No-frills carrier AirAsia Sdn Bhd is planning to offer bus services from the Malaysian border to carry Singaporean passengers to the Senai Airport in Johor.

AirAsia chief executive officer Tony Fernandes said it planned to appoint two independent bus operators, one each in Singapore and Johor Bahru, to carry passengers from the republic to Senai.

He was speaking to reporters on April 5 after the launch of the DBS-AirAsia MasterCard in Singapore.

Fernandes said AirAsia would introduce its RHB-AirAsia MasterCard in Malaysia by June, while its Thai counterpart would also be launching the Thai version of the credit card in October.

Fernandes said the project in Thailand would involve OK Capital, a joint venture between Shin Corp and a local Thai bank, to issue the AirAsia MasterCard.

For the Singapore project with DBS Bank Ltd, Fernandes said they would be looking at a sign-up rate of over 30,000 in six months.

All versions of its credit cards would allow users to accumulate AirAsia dollar (AA$) cash rebates, which can be used to redeem air tickets or merchandises from the issuing bank’s partners.

He said the AA$, which resembles a mileage programme, enabled AirAsia travellers to redeem flights at lower redemption points than that of other frequent flyer programmes.

Nazrey > Old news already. The bus services was cancelled ;)

Malaysia AirAsia in talks to raise $3.8 bln -paper

KUALA LUMPUR, May 10 (Reuters) - Malaysia's budget carrier AirAsia Bhd is in talks with five international lenders to raise 14.4 billion ringgit, or $3.8 billion, to buy 60 new Airbus A320 aircraft, the Business Times said.

The five lenders are U.S.-owned Citigroup Inc , HSBC Holdings Plc , Germany's Deutsche Bank AG, the Royal Bank of Scotland, and Calyon, the corporate and investment banking arm of France's Credit Agricole SA .

"Nothing has been finalised at this moment," the newspaper quoted AirAsia Chief Executive Tony Fernandes as saying. "We are still looking at the available options."

Airbus announced in March that AirAsia had raised orders for the A320 to 60 units from a previously confirmed 40. ($1=3.8 ringgit)

Business Times - 11 May 2005

AirAsia flies to Sibu from May 24

SENAI - AirAsia, the no frills airline in Southeast Asia, announced that it would commence direct flights between Johor Bahru and Sibu, in Sarawak beginning May 24, 2005.

The new Johor Bahru-Sibu service would be operated three times a week on every Tuesday, Thursday and Saturday.

A one way trip starts from RM49.99 (US$13.15).

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

Thai AirAsia To Get License For Vietnam Ops - Official
11 May 2005

HANOI (AP)--Budget airline Thai AirAsia is expected to receive a license to begin flights to Vietnam next month, an official said Wednesday.

"It's just a matter of time," said Ho Quoc Cuong of Vietnam's Civil Aviation Administration. He said the low-cost carrier plans to begin services between Hanoi and Bangkok on June 15.

The Thailand-based airline will offer seven flights a week between the two cities, but it is unclear what rates will be charged.

The Thai carrier is a subsidiary of Malaysia-based AirAsia Bhd. (5099.KU), the region's biggest budget carrier. AirAsia owns 49% of Thai AirAsia, while Thailand's Shin Corp. (SHIN.TH) holds the remaining 51%.

15 May 2005

AirAsia chooses CFM engines for its new A320 Airbus aircraft: report

KUALA LUMPUR : AirAsia, the region's top budget carrier, has reportedly selected engines made by CFM International to power the 60 Airbus A320 aircraft it has ordered.

The deal for the CFM56-586/P engines, each of which has a catalogue price of 36 million ringgit (9.47 million dollars), would be signed at the Paris Air Show next month, the Business Times newspaper said Saturday.

But the head of AirAsia on Sunday declined comment on the report.

"No comment. We will make an announcement (at the) end of the month," chief executive officer Tony Fernandes told AFP.

CFM International was formed in 1971 by General Electric of the United States and the French state-owned aerospace group Snecma.

Other low cost carriers that have chosen CFM engines include Irish low-cost airline Ryanair.

AirAsia is the single largest buyer of the A320 in the Asia Pacific region.

The budget airline has ordered the 60 Airbus A320s with an option for another 40 aircraft which will completely replace its current fleet of 28 single-aisle, 148-seat Boeing 737-300s.

Delivery of the first A320 will begin late this year and continue through until 2011, the company said.

Launched as a budget carrier in December 2001 with just two aircraft, AirAsia has defied the sceptics to become a significant regional player, with its business model now imitated by startled national carriers along with a host of new low-cost entrants.- AFP/ir

Copyright © 2005 Agence France Presse. All rights reserved.

Which operation has more international flights?
Thai Air Asia (operating out of BKK)
Air Asia (operating out of KLIA)

AirAsia (Malaysia)
From/To Kuala Lumpur International Airport
14 flights a week to Alor Star, Kedah
14 flights a week to Bali, Indonesia
7 flights a week to Bandung, Indonesia
21 flights a week to Bangkok, Thailand
7 flights a week to Bintulu, Sarawak
7 flights a week to Hat Yai, Thailand
21 flights a week to Jakarta, Indonesia
14 flights a week to Johor Bahru, Johor
56 flights a week to Kota Kinabalu, Sabah
21 flights a week to Kota Bharu, Kelantan
21 flights a week to Kuala Terengganu, Terengganu
56 flights a week to Kuching, Sarawak
14 flights a week to Labuan
21 flights a week to Langkawi, Kedah
7 flights a week to Macau
7 flights a week to Manila (Clark), Philippines
14 flights a week to Medan, Indonesia
21 flights a week to Miri, Sarawak
7 flights a week to Padang, Indonesia
21 flights a week to Penang
14 flights a week to Phuket, Thailand
14 flights a week to Sandakan, Sabah
14 flights a week to Sibu, Sarawak
14 flights a week to Surabaya, Indonesia
14 flights a week to Tawau, Sabah

Thai AirAsia
From/To Don Muang Airport (Bangkok International Airport)
21 flights a week to Chiang Mai, Thailand
14 flights a week to Chiang Rai, Thailand
18 flights a week to Hat Yai, Thailand
7 flights a week to Khon Kaen, Thailand
3 flights a week to Kota Kinabalu, Malaysia
7 flights a week to Kuala Lumpur, Malaysia
14 flights a week to Macau
3 flights a week to Narathiwat, Thailand
14 flights a week to Penang, Malaysia
21 flights a week to Phuket, Thailand
21 flights a week to Singapore
7 flights a week to Ubon Ratchathani, Thailand
14 flights a week to Udon Thani, Thailand
7 flights a week to Xiamen, China

MASkargo Aims To Be Prominent Global Cargo Carrier
May 16, 2005 17:37 PM



KUALA LUMPUR, May 16 (Bernama) -- MASkargo, Malaysia's national cargo carrier, is building on its capacity to become a prominent global cargo carrier with state-of-the-art facility for the transshipment of goods and animals.

Malaysia Airlines senior general manager (cargo), Datuk J.J. Ong, said despite the prevailing high oil prices, MASkargo's cost-cutting strategy and measures to boost efficiency would enable it to maintain its leading position.

He added that MASkargo is also facing tough competition from regional cargo players.

"MASkargo is looking at substantial investments in its facility at KLIA (Kuala Lumpur International Airport) to support more sophisticated infrastructure and higher traffic volume," he said during the launch of MASkargo liveried KL Monorail train.

To celebrate the experience, 28 children from Pertubuhan Kebajikan Kanak-Kanak Banting, a home for the underprivileged children, as well as key agents and business partners were invited for the inaugural journey through Kuala Lumpur.

Ong said MASkargo is also on a marketing campaign to aggressively promote its animal cargo division, with the prospects of the division becoming a huge contribution to MASkargo's revenue in the near future.

"Currently, there are not many animal cargo carriers globally, putting us in third position after Frankfurt and Amsterdam. The demand for animal cargo is also growing rapidly, especially for large animals like dolphins, elephants and sharks," he said.

Ong said with its brand-building marketing campaign and investments in the KLIA facility, MASkargo is expecting a strong growth in revenue this year.

"We have to efficiently manage our costs and part of this exercise involves selling our two existing cargo freight planes," he added.

He said the disposal of the two cargo freight planes, which have both passenger and cargo freight features, was necessary in view of MASkargo's plans for more planes that exclusively transport cargo goods or animals.

This, he explained, would enable MASkargo to scale down its aircraft maintenance repair and overhaul (MRO) expenses. Ong said KLIA would continue to be an important hub for MASkargo in view of the growing number of airlines in the Asia-Pacific region.

MASkargo freighter services currently cover KLIA, Penang, Hong Kong, Melbourne, Sydney, Perth, Osaka, Shanghai, Hangzhou, Bangalore, Bangkok, Dubai, Taipei, Sydney and Tokyo.

In Europe, the MASkargo destinations include Amsterdam, Frankfurt, Manchester and Basel.

It also offers belly space capacity on Malaysia Airlines' passenger fleet serving almost 100 destinations worldwide.

"We will be engaging a consultant to determine the exact amount of investment required to double the capacity at KLIA from 650,000 tonnes to about 1.5 million tonnes as well as the high technology features that are necessary to cope with the increasing traffic demand," Ong said.

He added that last year, MASKargo handled 640,000 tonnes, reaching almost its capacity level.

-- BERNAMA

MALAYSIA AIRLINES INTRODUCES ROOIBOS TEA ON ITS PREMIUM CLASSES
13 Apr, 2005



Malaysia Airlines today announced that effective this month, the infamous Rooibos tea would be introduced progressively on First and Business class of its newly retrofitted Boeing 747-400 and Boeing 777-200 aircraft.

Malaysia Airlines Food & Beverage Manager, Azman Ahmad announced this today at a media conference in Kimberley, South Africa.

This on-board hospitality enhancement is an initiative of Malaysia Airlines’ “Project Relish”, commenced in March 2004, to revitalize and improve the total inflight food and beverage experience of its customers as part of its `Going Beyond Expectations’ campaign.

Rooibos tea has been acknowledged for its superior quality, freshness and taste. It is also reputed for its various health benefits, and these fine qualities best serve the airline’s quest to provide the finest and most original to its premier customers.

“We have selected Rooibos tea not only for its antioxidant benefits, caffeine-free properties and distinctive taste but more so for its originality that comes with a blend of flavours that appeal to the premier class passengers,” said Azman at the media conference.

“The uniqueness of Rooibos tea creates an added selection for our customers to enjoy while traveling with Malaysia Airlines,” he added.

Malaysia Airlines Area Manager for Central & Southern Africa, Faisal Ibrahim, said that South Africa is well known for its premium agro-based products.

“The relationship between South Africa through its Northern Cape Region and Malaysia Airlines on the Rooibos tea project is timely, highly beneficial as it will be part of our overall objective of becoming a global airline offering the best of inflight experience by the world’s best cabin crew,” explained Faisal.

Apart from the Rooibos announcement, the Project Relish delegation was also in South Africa to research and gather more information on South Africa’s ‘HALAL’ meat, seafood, agro-based produce and 100 per-cent pure sparkling grape juice.

Malaysia Airlines currently operates three times weekly into Johannesburg and Cape Town, with two of its services extending beyond to Buenos Aires utilizing the B747-400 aircraft. The airline has recently unveiled its upgrading programme for 34 B747-400s and B777-200s in its fleet where the First and Business Class cabin and the inflight entertainment system, will be entirely revamped to introduce cutting-edge style and design, providing the ultimate in contemporary global air travel.

MALAYSIA AIRLINES’ COMMISSIONS ITS LATEST B747-400 FULL FLIGHT SIMULATOR
7 Apr, 2005



7th April 2005. Malaysia Airlines today commissioned its latest Boeing B747-400 Full Flight Simulator (FFS) for operations.

The FFS, acquired from Thales Training and Simulation (TT & S) Limited, was commissioned by Malaysia Airlines’ Managing Director, Dato’ Ahmad Fuaad Dahlan at the national airline’s Flight Crew Training Centre in Subang.

The Full Flight Simulator (FFS) is the latest in simulation technology using TT&S' C2000X architecture and has been designed specifically to meet the exacting requirements for the Malaysian Department of Civil Aviation, Joint Aviation Requirements (JAR) Standard 1A and United States Federal Aviation Authority (FAA) Level D, the highest internationally recognised level of flight simulation.

It is the 7th FFS purchased by Malaysia Airlines from Thales, equipped with specific airport familiarization tools, the latest Thales debrief system and the Evans and Sutherland state-of-the-art EP1000 visual system.

Speaking at the commissioning of the simulator, Dato' Ahmad Fuaad said, “Whilst we are focused on all the frills towards the expansion of the national airline, we recognise that our operations hinges primarily on the expertise of pilots and cabin crew. To this end we have acquired simulators and set up our own centres for training our technical crew and cabin staff. A simulator for the A380 will also be purchased in our preparations for the twin-deck aircraft that will join our fleet by February 2007.”

“Our relationship with Thales Training & Simulation spans over a few decades and we are pleased with this latest state-of-the-art acquisition” he added.

Mr Mark Rowson, Sales Director of Thales Training & Simulation who represented his company at the occasion said, “Thales is very proud to be associated with the commissioning of Malaysia Airlines’ latest B747-400 Flight Simulator. This product features state-of-the-art technology with increased features that will improve training of the technical crew whilst improving the reliability of the simulator. We believe Malaysia Airlines has full capabilities to offer the best simulator training in the region and it is an honour for us that the new Thales B747-400 Full Flight Simulator will play a major role in the Malaysia Airlines’ Flight Training Centre expansion."

Malaysia Airlines installed its first simulator (Fokker F27) at its then Training School in Subang on 17 May 1975. It now operates a full fledged Flight Simulator Training Centre with a simulator fleet of B747-400, B777-200, A330-300, two B737-400, and one Fokker F50, providing training for not only its own staff but also to technical crew of other airlines.

Thales is an international electronics and systems group, serving defense, aerospace and security markets. The group employs 62,000 people worldwide and generated revenues of 10.6 billion euros in 2003.

MALAYSIA AIRLINES AND GRS NETWORK SYNERGISE BUSINESS RELATIONSHIP
5 May, 2005



Kuala Lumpur, 05 May 05: Malaysia Airlines (MAS) is partnering with an Internet-based solutions provider to give travelers, holidaymakers and its authorized agents greater and faster access to its products worldwide.

The Internet-based distribution-networking tie-up with GRS Network Malaysia Sdn Bhd and its US-based principal, GRSNetwork Inc, widens the national carrier’s distribution base. This is because Malaysia Airlines products and its travel-related products will now be marketed and distributed through the GRSNetwork’s suite of travel-related solution.

It enables a customer speedier access to information critical to their traveling needs and decision to use Malaysia Airlines products or associate products, including air tickets, partner resorts and hotels, holiday tour packages and cruises.

The Memorandum of Understanding (MoU) was signed at the Malaysia Airlines head office here today. The signatories were Dato’ Rashid Khan, Senior General Manager Sales, Distribution and Marketing of Malaysia Airlines; Dato’ Liew Hoong, Chief Executive Officer of GRS Network Malaysia Sdn Bhd; and Mr Gregory Lykiardopoulos, Chairman and Chief Executive Officer of GRSNetwork Inc.

Under the terms of the agreement, effective today, Malaysia Airlines will allow GRS USA access to suitable MAS inventory to be made available for sale through the GRSNetwork’s distribution network.

GRSNetwork will distribute Malaysia Airlines products as well as its associated products such as Malaysian hotels, resorts, tours, cruises, holiday packages and other travel related products worldwide to both travel agents and end customers.

The MoU is a significant milestone in the travel industry in Malaysia because it marks the entry of a new lower cost travel distribution network in Malaysia.

Speaking at the signing ceremony, Dato Rashid Khan said: “Malaysia Airlines sees GRSNetwork as an alternative channel of distributing its products through a network that is more cost effective due to the use of internet technology. The Use of internet opens a far wider worldwide accessibility to MAS inventory.”

Dato’ Rashid said: “The booking engine provided by GRSNetwork is accessible by travel agents and suppliers and also end customers worldwide. This will compliment and strengthen MAS online presence. The new network is one of many innovations by Malaysia Airlines to continue serving Going Beyond Expectation ”

Mr Lykiardopoulos said: “We anticipate that GRS technology will cut airline’s distribution costs by more than fifty percent over the conventional channel. In addition, it will greatly enhance overall productivity level of travel agents who use the Internet to access and book inventory.”

Lykiardopoulos also said: ”GRSNetwork will provide the technology solutions consisting powerful suite of internet based, point and click solutions to the travel industry and the necessary infrastructure on which the solutions will run. The multi-language capability of the GRSNetwork suite of solution makes it very attractive for worldwide deployment. “

GRSNetwork will work with Malaysia Airlines to further enhance the solutions for specific segments of the travel industry e.g. Corporate Travel, Government Travel etc.

Malaysia Airlines and GRSNetwork will jointly conduct marketing campaigns to promote the distribution of MAS products in the GRSNetwork distribution network to travel agents or any other related party.


About GRS

GRSNetwork is a fast expanding international business-to-business (B2B) internet infrastructure technology company for travel suppliers, traditional and online travel agencies. After successes in their home base USA, GRSNetwork has made significant inroads in China where they now distribute the largest Chinese domestic inventory to the world outside of China.

GRSNetwork's products are available in English, Korean, Simplified Chinese, Traditional Chinese, Malay, Japanese, French, German, Dutch, Latin Spanish, and Brazilian Portuguese.

For more information about GRSNetwork, visit www.grsnetwork.com

Malaysia Airlines increases flight to Maldives
28 Mar, 2005



Kuala Lumpur, 28 March 2005: From today Malaysia Airlines will fly thrice weekly to Maldives, the tropical paradise hit by tsunami last December.

The additional Kuala Lumpur-Male-Colombo-Kuala Lumpur frequency is expected to help boost Maldives’ tourism sector, which suffered a setback following the tsunami.

Malaysia Airlines’ General Manager Sales, Mr Nick Phang said: “As Malaysia Airlines expands its route network in China to strengthen its market presence, we find that Maldives is becoming increasingly popular among holidaymakers from China. With direct flights from eight cities in China, Kuala Lumpur can serve as a hub by flying these holidaymakers to Malaysia and onwards to the Maldives. “

Mr Phang added: “This is a fine example of the connectivity that the national carrier is always seeking, which will promote the Kuala Lumpur International Airport as the regional aviation hub.”

Presently, Malaysia Airlines fly twice weekly on the Kuala Lumpur- Male-Colombo-Kuala Lumpur sector. With the introduction of the third flight, the new flight schedule is as follows:

·MH189 leaves Kuala Lumpur for Male at 2005hrs to arrive at 2110 local time on Mondays, Wednesdays and Saturdays.

·The turnaround flight, MH188, continues from Male to Colombo, departing at 2220hrs the same day and arriving at 0045 local time the next day. It leaves Colombo for Kuala Lumpur at 0215hrs on Tuesday, Thursdays and Sundays to arrive at 0740hrs the same day.

With the new schedule, the Kuala Lumpur-Colombo sector is rerouted as Kuala Lumpur-Male-Colombo-Kuala Lumpur. Malaysia Airlines is deploying the Airbus 330-300 with 42 Business Class seats and 250 Economy Class seats.

In 1996, Malaysia Airlines started flying to Male, the capital of Maldives, which is popular as a tropical paradise with sandy beaches and coral reefs. Tourism is a top revenue earner for Maldives, which has developed more than 70 islands to attract the top end of the tourist market. Scuba divers are attracted to the abundant marine life in the surrounding waters.

Issued by Media Relations/Corporate Communications Department Malaysia Airlines, Kuala Lumpur

since when the airlines fly from KUL to Hatyai?

AA shud fly to more destinations ex Johor Bahru.. places like Padang, Medan, Ujung Pandang.. and obviously Jakarta and HKG. Dragonair ceases HKG/Jhor Bahru rite??

Emirates To Introduce Additional Flights From September
May 18, 2005 17:47 PM



KUALA LUMPUR, May 18 (Bernama) -- Emirates Airline which currently flies Dubai-KL seven times weekly, will have its additional six flights introduced from September to October 2005.

Country manager Alban Lee told Bernama that the additional flights were part of the Airline's expansion plan for the Far East whereby six out of the 13 flights would be direct turnaround flights from Dubai-KL-Dubai.

It was reported recently that the additional frequencies were to cater for the increasing demand from West Asian travellers who considered Malaysia to be their preferred holiday destination.

As the Airline was focused on the increased flight frequencies between the Dubai-KL route, Lee said there was no plans to add more flights connecting to Australia at this point of time.

As to whether Emirates would need another hub in Malaysia, he said the Airline might consider Kota Kinabalu as an option in East Malaysia but there was no plans made for this at this juncture.

-- BERNAMA

19 May 2005

Thai AirAsia budget airline wins licence to fly Hanoi-Bangkok route

HANOI : Thai AirAsia, a subsidiary of Malaysia-based budget carrier AirAsia, has won a licence to offer flights between Hanoi and Bangkok.

"The licence was granted yesterday (May 18)," said an official of the air transport department of the Vietnam Civil Aviation Administration.

In Bangkok last week, a Thai AirAsia spokeswoman said the carrier planned to operate the route within three months as it expanded its services.

The carrier will operate seven flights a week between the two capitals.

Malaysia-based AirAsia owns 49 percent of Thai AirAsia, with Thailand's Shin Corp. holding 51 percent.

Singapore-based Tiger Airways was the first low-cost airline to begin operating flights to Vietnam on April 1.

In March, Prime Minister Phan Van Khai approved a consolidation plan for Vietnamese company Pacific Airlines, including acquisition of 30 percent stake by Singapore state investment arm Temasek Holdings.

Temasek, which said the negotiations were ongoing with the government, wants to make Pacific Airlines the third low cost carrier in the country.

More than 20 international airlines operate in the Vietnamese market so far.

- AFP /ch

Copyright © 2005 Agence France Presse. All rights reserved.

Microsoft Solutions For Budget Airlines In Asia-pacific
May 20, 2005 15:28 PM


KUALA LUMPUR, May 20 (Bernama) -- Microsoft Business Solutions (MBS) has gained increased customer momentum with five low-cost airlines in the Asia-Pacific -- Tiger Airways, NokAir, ValuAir, AirAsia and Jetstar Asia -- coming on board.

These airlines have deployed the solutions to increase profitability by keeping costs down and improving customer engagement processes, Microsoft said in a statement Friday.

It added that deployment of the solutions by the top five low-cost airlines in the region is testimony to the profit advantage and return on investment (ROI) that Microsoft drives, especially in an industry that operates on tight margins.

Tiger Airways, a well known low-fare carrier in the region, is one of the airlines that turned to MBS to boost business efficiency and visibility.

NokAir, another fast-growing budget airline in Thailand, was keen to adopt MBS to improve competitive advantage.

Working with SoftControl, a Microsoft Business Solutions partner, NokAir implemented MBS to integrate and run its operations, distribution, customer relationship management (CRM), frequent flyer membership programme and their multi-channel outlets.

Malaysia's AirAsia opted for a fully integrated enterprise resource planning (ERP) solution implemented by Avanade, a Microsoft Business Solutions partner.

"With this solution, AirAsia has been able to succesfully maintain process integrity, reduce our financial month-end closing processing times, as well as speed up reporting and data retrieval processes," said its regional director of information technology, Lau Kin Choy.

With the low-cost travel market heating up, time to market and responsiveness are two key factors that can differentiate players from their competition, Microsoft said.

It added that Jetstar Asia, together with Imperium Solutions, a Microsoft Business Solutions partner, rolled out solutions to achieve just that.

Microsoft said in the past six months, MBS has added hundreds of new customer wins in the small and mid-size segment in the Asia-Pacific and also launched 40 industry solutions with more than 340 partners in the region.

-- BERNAMA

Malaysia's AirAsia says annual profit to miss target

KUALA LUMPUR, May 25 (Reuters) - Malaysia's AirAsia Bhd unveiled a third-quarter net profit of 40.69 million ringgit ($10.7 million) on Wednesday and said annual earnings would be lower than forecast at the time of its initial public offering (IPO) last year

The company gave no comparative figures for the January-March quarter in 2004.

Net profit for the nine months to end-March stood at 95.53 million ringgit. The budget carrier forecast a full-year profit of 160 million in its share sale prospectus issued last October, prior to its listing in November.

AirAsia said its performance had been hit by delays in aircraft deployment due to the tightening of the used Boeing 737-300 lease market.

High fuel costs, the Dec. 26 tsunami and losses due to start-up costs at its Indonesian operations were also factors.

"In the light of the above factors, the directors expect the results for the full financial year to be lower than the IPO forecast. Despite this, the directors remain positive about the future growth prospects for the group," it said in a statement.

AirAsia's share price closed up 0.66 percent at 1.52 ringgit on Wednesday. It has fallen about 9 percent in the past three months but is still higher than the IPO price for institutions of 1.25 ringgit.

($1=3.8 ringgit)

Business Times - 31 May 2005

AirAsia gets nod to fly to 6 more China cities

(HONG KONG) AirAsia Bhd, South-east Asia's biggest discount airline, said it received approval to fly to six more cities in southern China as it seeks to take advantage of the country's growing demand for air travel.

'China is the focus,' chief executive Tony Fernandes said in an interview at a conference in Tokyo yesterday.

'Xiamen is doing very well and we've got approval for six more destinations,' he revealed, declining to name the additional destinations.

AirAsia, based outside Kuala Lumpur, began flying to China in April with Singapore-based Valuair Ltd, as the country's growth in passenger traffic is forecast to exceed the global average each year until 2023. Thai AirAsia Co, AirAsia's venture with Thailand's Shin Corp, now flies to Xiamen in southeastern China.

AirAsia has no urgent need for a fuel surcharge, Mr Fernandes said. The airline has hedged 63 per cent of its fuel purchases for the next fiscal year ending in June 2006, he said on May 25.

'With our hedging in place right now, there's less of an urgency,' Mr Fernandes said yesterday.

Global airlines may be unprofitable for a fifth year in 2005, with combined loss widening 25 per cent to a record US$6 billion, caused by surging costs of jet fuel and wages, the International Air Transport Association (IATA) said yesterday.

The price of jet fuel traded in Singapore fell 1.1 per cent to US$62 on Friday, and has gained 28 per cent this year.- Bloomberg

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

Malaysia Airlines reports lower profit, secures new routes to China, India

KUALA LUMPUR, May 31 (AFP) - Flag carrier Malaysia Airlines on Tuesday said net profits fell by 29 percent to 326.1 million ringgit (86 million dollars) in the year to March due to higher fuel prices and despite record international traffic growth.

The airline's managing director Ahmad Fuaad Dahalan said fuel costs rose to 3.8 billion ringgit from 2.3 billion ringgit previously due to higher prices and network expansion.

Malaysia Airlines last year posted net profits of 461.1 million ringgit.

"Taking into circumstances a very difficult year, we think we have done reasonably well," he told reporters.

"We have achieved our third consecutive year of profit ... strong revenue growth offset the effect of higher fuel costs on our bottom line."

Malaysia Airlines would continue its expansion drive, he said. "We have not retarded any of our growth expansion. We are continuing to grow."

Ahmad Fuaad said the fast-growing economies of China and India were part of the carrier's "grand design" and it would continue to find new routes to the two countries, in addition to the eight established this year.

Total revenue for the full year rose 29.4 percent to 11.36 billion ringgit on a record jump of 24 percent in international passenger traffic to 8.6 million passengers and a 21 percent increase in cargo tonnage.

International passenger revenue grew by 29 percent to 7.9 billion ringgit, while cargo revenue increased by 44 percent to 2.4 billion.

Total operating expenditure grew by 29 percent to 11 billion ringgit primarily on an 1.5 billion ringgit increase in fuel costs.

Malaysia Airlines is to fly to some 10 new destinations this year including Shengyang, Chongqing, Fuchou and Haikou in China and Amritsar, Cochin, Trivandrum and Trichi in India.

"Within China and India, our expansion strategy is designed to ensure we reach the various lucrative points," Ahmad Fuaad said, adding that "our network expansion strategy is focused on strengthening our regional connectivity to feed our international network."

The airline will also boost capacity into Guangzhou, Hyderabad, New York and Stockholm, and increase flights to neighbouring Singapore, he said.

Malaysia Airlines currently flies to 88 international and 32 domestic destinations.

Competition will remain strong as airlines continue to expand their fleets, it said adding it would face greater competition from British, European and North American carriers after China and India granted them expanded traffic rights.

The International Air Transport Association has reported that traffic demand is expected to remain buoyant in Asia Pacific and that growth of more than six percent is forecast for 2005 despite slightly lower economic growth and capacity expansion.

MAS studies proposal to boost frequency of flights to S. Africa
By KANG SIEW LI
25 May 2005
Business Times

CAPE TOWN, Tues: Malaysia Airlines (MAS) is looking at increasing the frequency of its Kuala Lumpur-Johannesburg-Cape Town service from three to four times a week over the next two years to keep up with increasing demand.

"I have already submitted my proposal (for the additional frequency) to (MAS) headquarters and they are seriously looking into it. "While a daily flight will be ideal, knowing our constraints, we will move progressively and begin with four times a week first," MAS area manager for central and southern Africa, Faisal Ibrahim, told a group of Malaysian journalists here today.

MAS currently operates a 747-400 service three times a week from Kuala Lumpur to Johannesburg and Cape Town in South Africa, with two of its services extending beyond South Africa into Buenos Aires in Argentina.

The idea of mounting an additional frequency from Kuala Lumpur to Johannesburg and Cape Town was proposed by Faisal as an opportunity to tap into the growing passenger traffic between the two countries.

"With the strong South African rand, there has been a lot of demand from South Africans wanting to travel, especially to Asia.

"And while Europe and the US remain the South Africans' number one choice of destinations, MAS and Malaysia Tourism Promotion Board are working hard to promote Malaysia as a preferred destination. That's because South Africans are one of Malaysia's biggest spenders in terms of value," said Faisal.

Also, the airline needs additional flights for its growing cargo business in South Africa.

"Our passenger load factor (the percentage of available seats filled by paying passengers) averages 80 per cent, while our cargo payload is in the high 80s," said Faisal.

Nonetheless, MAS will need to wait at least two years before it can increase its flights from Kuala Lumpur to South Africa.

Faisal said one of the constraints that prevents the airline from mounting the additional frequency immediately is that it is currently undergoing a retrofitting exercise systemwide, where at least every month one of its 747s will be on the ground to undergo retrofitting of services and heavy maintenance.

"Another constraint is that MAS' focus right now is to expand into China and India, where traffic demand is growing rapidly," he added.

But Faisal expects the additional frequency to come in the latest by 2007, when the airline pulls out its 747s currently being used on its Kuala Lumpur-London route and replaces them with the new superjumbo A380 passenger jets.

"Thus, we will have resources for the 747s, which can be used for the South Africa route," he added.

Fanie van Rooyen, sales manager (cargo) at Aireps Ltd, the general sales agent for Malaysia Airlines Cargo Sdn Bhd (MASkargo) in South Africa, said the cargo operations contributed 25 per cent of MAS' total revenue in South Africa for the financial year 2003-2004.

"But we had much more space to sell then (as MAS was using the bigger 747 Combi). Now with the smaller 747-400 passenger aircraft, we are focusing on transporting only high-yield cargo such as marine produce like lobsters, abalone, oysters and live animals (to generate more revenue)," he said.

Rooyen said MASkargo has no plans yet to extend its freighter network to South Africa.

"The reason is that the export volume out of South Africa is not huge and consists of mainly perishable products. Thus, shippers would rather have more flight frequencies out of South Africa than bigger space capacity," he added.

MASkargo currently provides freighter services to Penang, Hong Kong, Osaka, Shanghai, Tokyo, Amsterdam, Frankfurt, Dubai, Bangalore, Bangkok, Jakarta, Melbourne, Sydney, Perth, Manchester, Basel and Malpensa.

Malaysia Airlines is awarded 5 Star Airline status
source : skytrax

http://www.airlinequality.com/images/5str-mas-2005.gif


Malaysia Airlines has joined an exclusive "club" of just 4 airlines across the world, allocated a 5 Star Quality Ranking. Ranking reflects very high staff service standards, as well as enhanced product levels being offered by the airline in 2005. http://www.airlinequality.com/images/orng-rt.gif MAS Star Ranking (http://www.airlinequality.com/Airlines/MH.htm)

MALAYSIA AIRLINES SUCCESSFULLY COMPLETES ITS FIRST HEAVY MAINTENANCE ON VIP BUSINESS JET AIRCRAFT
25 May, 2005



Vision Air Sees Malaysia Airlines Engineering Potentials In VIP & Corporate Jet Maintenance Repair and Overhaul.

25 May 2005, Subang: Malaysia Airlines (MAS) today officially handed a Boeing 737 VIP & Corporate jet aircraft to Vision Air after successfully completing heavy maintenance on the aircraft in a record time of 45 days.

Encik Tajuden Abu Bakar, MAS Senior General Manager (Technical & Ground Operations) and Tan Sri Lee Kim Yew, in his capacity as Board Member of Vision Air signed the acceptance for the handover at a ceremony in Subang. Also present at the ceremony was Mr. William Acor, the President of Vision Air.

The heavy maintenance check, including the aircraft’s interior cabin refurbishment, was done at the MAS Maintenance Repair and Overhaul Center in Subang. The maintenance work also covered Corrosion Prevention and Control Program (CPCP), Structural Inspection and Avionics System Upgrade and Modifications. Test flights were performed at the end of the program to ensure flight performance was at optimum standards.

The handover today signals MAS fast establishing its reputation as a reliable, affordable and competitive aviation Maintenance and Repair Organisation (MRO), supporting the Malaysian Government’s vision to turn Subang into an International Aerospace Park.

Towards realisation of this vision, MAS has embarked on heavy aircraft maintenance at its Engineering complex in Subang. The successful completion of Vision Air’s B737 VIP & Corporate jet heavy maintenance check showcases the national carrier’s latest product as a maintenance service provider to Business Jets.

VIP & Corporate Business Jet owners and operators based within the vast and growing Asia Pacific marketplace now have a new Maintenance Repair and Overhaul Center available in MAS Engineering Complex in Subang.

Speaking after the handover ceremony, Tan Sri Lee Kim Yew said “I chose MAS because of its world class facilities and superb workmanship, thus ensuring me of best of quality. I am extremely happy that I made the right decision, as the end product speaks for itself. Our customers demand the pinnacle of comfort and safety. I am confident that MAS’ capabilities in VIP jet maintenance will open doors to other owners the world over. This will definitely bring about enhancement towards our government’s effort in promoting Subang International Aerospace Park”.

“Having a premier MRO center like MAS, strategically located in Subang, offering an extremely high quality product, is a real plus for us,” said Vision Air President Mr. William Acor. “Growth in VIP Jet charter business around the world has raised the need for supply of high quality and reliable maintenance service provider to the operators and owners of these VIP Corporate Jets. MAS Engineering has fully demonstrated its strength in this and we are very pleased with the end product. We will now spread the word around our circle of VIP Jet owners and operators of this great facility”, he added.

Encik Tajuden Abu Bakar said, “We are very pleased to have served Vision Air. In line with the national aspiration to further develop the aviation industry, we are positive that this latest VIP & Corporate Jet maintenance Service provided by MAS Engineering will promote the national airline’s market presence in this segment of business.”

MAS Engineering General Manager, En Roslan Ismail added, “We are proud to have added this capability, tapping into a new niche market segment of VIP & Corporate Jet maintenance. It is a further testimony of our superior quality, well -developed capability and proven reliability being recognized by our customers amidst the competitive MRO environment in this region.”

The MAS Engineering Division in Subang started operations in 1972 when the national airline took to the skies. Its core function is to carryout maintenance work on the aircraft in the airline’s fleet. In addition, MAS Engineering also performs maintenance and component repair and overhaul services for other airlines. With its well equipped and advanced facility, coupled with well trained and highly experience personnel, MAS Engineering is scaling new heights with this achievement in VIP & Corporate Jet Heavy Maintenance.

Vision Air is a business and tour charter operator based at Las Vegas. Its fleet of 16 plus aircraft boasts the most modern fleet in the Grand Canyon tour business marketplace

MAS cabin crews are exceptionally nice and friendly !

MAS cabin crews are exceptionally nice and friendly !
they are, aren't they... i would also go for SriLanka Airlines crew members..

Business Times - 10 Jun 2005

MAS to increase flights to China, India

KUALA LUMPUR - Flag carrier Malaysia Airlines plans to add four more flights to China and three to India by early next year in an effort to tap the economic boom in the two countries, an official said on Friday.

The national airline will fly to Shenyang, Chongqing, Guilin and Shenzhen in China by the end of this year and to Amritsar, Cochin and Trivandrum in India by early next year, MAS general manager for sales and marketing, Rashid Khan, told a news conference.

He said the airline is also hoping to increase its flight frequency to Xi'an in China, a destination it started flying to three months ago.

MAS now flies twice weekly to Xi'an from Kuala Lumpur using A330-200 aircraft, and plans to use five long-range, narrow body planes for the new destinations. The new aircraft will be delivered later this year.

The wide-body planes currently being used for China will fly to Indian destinations. The airline sees the two countries as the main engine of growth for business because of their expanding economies.

On Wednesday, Malaysia Airlines announced three additional direct flights between Kuala Lumpur and New Delhi during the winter season, increasing the frequency of flights to daily from four flights a week.

With the three additional destinations next year, Malaysia Airlines would be flying 100 flights a week to various destinations in India. At present, it flies to seven key cities in India apart from Karachi in Pakistan, Male in the Maldives and Colombo in Sri Lanka.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

7 Jun, 2005
MALAYSIA AIRLINES ENTERS INTO 3RD HAJ CHARTER SERVICES CONTRACT
Corporate Press Release

Kuala Lumpur, 07 June 2005: Malaysia Airlines today signed its third agreement with Lembaga Tabung Haji to operate Hajj Charter flights between Malaysia and Jeddah and Madinah in Saudi Arabia for the year 2005/2006 or 1426 Hijrah. Over the last two years the airline has successfully completed the Hajj operations for 1424 and 1425 Hijrah.

Dato’ Ahmad Fuaad Dahlan, Managing Director, signed on behalf of Malaysia Airlines while Tabung Haji was represented by its Group Managing Director & Chief Executive Officer, Dato Haji Mohd Bakke bin Salleh. Signing as witnesses were Dato’ Dr. Haji Azmi bin Haji Ahmad, Senior General Manager ‘Hajj’ and Captain Nik Ahmad Huzlan Nik Hussain, Assistant General Manager Hajj & Charter Services.

Malaysia Airlines will operate a total of 126 flights involving 26,300 passengers between Malaysia and Saudi Arabia in two phases. For this new season, Malaysia Airlines will increase its services into and out of Madinah, thereby providing pilgrims better travel arrangements and greater convenience.

Dato’ Ahmad Fuaad Dahlan said, “The Hajj operations are unique, specialised, highly regulated and time critical. With our experience since 1974 in handling the Hajj services, pilgrims can be assured of efficient ground and inflight services. ”

The national airline will use two specially leased B747-300 aircraft that has a seating capacity of 470 for single class flights to and from Jeddah and Madinah. A B747-400 aircraft with a capacity of 380 will be used for multi-class flights. Among the inflight services provided are personal TV screens, special menu and dedicated audio programmes ranging from classical instrumentals and Nasyid selections to Quranic versus during the flight.

Malaysia Airlines began its first Hajj flight from Kuala Lumpur to Jeddah on 01 April 1974, using leased B707 aircraft. By 1981 due to increased demand, the airline switched to a DC-10 aircraft and in the following year, leased another two B747 aircraft for this service.

Issued by Media Relations/Corporate Communications Department Malaysia Airlines, Kuala Lumpur

MAS To Add Three More Indian Cities To Network
June 09, 2005 14:55 PM



NEW DELHI, June 9 (Bernama) -- Malaysia Airlines (MAS) will add three more destinations -- Amritsar, Kochi and Thiruvananthpuram -- to its network in India.

The Malaysian carrier will operate three flights a week from each of the destinations from the winter schedule starting Oct 29 this year.

Moreover, the carrier will add three more flights between New Delhi and Kuala Lumpur this winter, MAS regional manager (South Asia) Christopher Yek has been quoted as saying.

"Our very next step in the expansion plans would be to launch services from Amritsar from October, followed by Kochi and Thiruvananthpuram early next year," he said.

"These destinations have been allowed as part of India's liberalised open sky policy for the Asean nations," Yek was quoted in a media report as saying.

With the additional three flights from New Delhi, the airline will mount daily services from the winter schedule, taking the total number of Indian cities served by the airline to 10.

Yek is reported to have said that India was one of the fastest growing markets, forecasting a 15 percent rise in passenger traffic.

-- BERNAMA

MAS may fly to 4 new China destinations
By MALCOLM ROSARIO
June 11 2005



MALAYSIAN Airline System Bhd (MAS) may fly to four new destinations in China once it receives five long-range narrow-bodied aircraft later this year.

“Recent flights to China have registered an average load factor of 70 per cent, and so we feel that the time is right for us to tap this market in an aggressive manner,” said Malaysia Airlines senior general manager of sales, distribution and marketing, Datuk Rashid Khan.

The new routes being planned are to Shenyang, ChongQing, Guilin and Shenzhen.

The wide bodied aircraft that are currently being used to serve some of the the China routes will be re-deployed to serve the Indian destinations.

“China and India are our main focus markets for the moment. In India, we plan to add three more destinations — Amritsar, Kochi and Thiruvananthpuram,” Rashid said.

The Malaysian carrier will operate three flights a week from each of the destinations from the winter schedule starting October 29 this year.

Rashid was speaking to newsmen at the signing of a memorandum of understanding (MOU) between Malaysia Airlines and China’s Shaanxi Province Tourism Administration (SPTA) yesterday.

The MOU is aimed at developing a structured platform for the promotion of two-way tourist traffic between Malaysia and China’s Shaanxi Province.

Malaysia Airlines was represented by Rashid Khan and MAS general manager of sales, Nick Phang, while SPTA was represented by its director, Dong XianMin and its promotion department chief, Shao XiYuan.

“As far as Xi’an is concerned, we are looking at an average load factor of 70 per cent for this summer period. This is a positive indication that interest is picking up, considering that we just started flights into Xi’an only three months ago,” Rashid said.

“Our flights into Xi’an supports the Malaysian Government’s initiative to tap Chinese destinations as good tourist catchments,” Rashid said.

Based on International Air Transport Association figures, China as well as India are two major engines of growth for the airline industry and Malaysia Airlines said it has captured these two markets in its business plan.

MAS in talks to add flights to London
Updated : 11-06-2005
Media : Business Times
Story By : VASANTHA GANESAN and ANNA MARIA SAMSUDIN
www.biznewsdb.com



NATIONAL carrier Malaysia Airlines (MAS), with help from the Transport Ministry, is in talks with UK authorities to increase the number of flights to London to 21 times a week from 18 currently.

Senior general manager of sales, distribution and marketing, Datuk Rashid Khan, said such a move is necessary because of overwhelming demand for the service.

Demand for its Kuala Lumpur-London service has been strong as MAS has been able to fill on average more than 90 per cent of the seats for the flights.

However, he declined to comment on progress of the discussions.

¡§This issue is a bit sensitive. There are certain issues concerning landing rights that we still need to discuss with the authorities in the UK. We will make the necessary announcements when the time comes,¡¨ he told Business Times.

MAS¡¦ 18 weekly flights to London comprise three-times-a-day service on Wednesdays, Saturdays and Sundays and two on other days.

Upon the approval of the frequency increase, MAS will be able to offer three flights a day to London.

On its expansion to India, Rashid said MAS is unfazed by the entrance of India-based carriers such as Jet Airways, and soon Air Sahara, into KL International Airport.

In fact, he said these airlines would further contribute towards accelerating MAS¡¦ network expansion plans in India.

MAS has plans to add 18 new destinations in India within the next five years, focusing on secondary airports such as Amritsar, Trichi and Trivandrum.

¡§We do not want to view the Indian carriers as our competitors. Instead, we plan to work closely with these airlines so that they could help us ferry our passengers to other areas in India that we are not covering. This way we would be able to cover a wider area in India,¡¨ he said.

In line with this move, MAS is seriously considering forming partnerships, including code share, with Jet Airways, he added.

Rashid said MAS and Jet Airways have a long history of cooperation, and is optimistic that the partnership would benefit both parties.

¡§We are now discussing with Jet Airways how both airlines can help each other,¡¨ he said.

MAS currently has 26 weekly flights to India, servicing routes to New Delhi, Mumbai, Chennai, Bangalore, Hyderabad and, recently, Ahmedabad and Kolkata.

Besides India, MAS plans to introduce several more flights to China by 2010, including to ChongQin, Guilin and Nan Ning.

The airline operates 63 weekly flights to Beijing, Shanghai, Hong Kong, Guangzhou, Xiamen, Chendu and Kunming, and in March introduced a twice weekly flight to Xi¡¦an.

The load factor for both India and China flights is currently 70 per cent.

Malaysia Close to Decision on Domestic Air Routes, Edge Says
Updated : 11-06-2005
Media : Bloomberg
Story By : Stephanie Phang
www.biznewsdb.com



(Bloomberg) --Malaysia's government will decide soon on how to split the country's domestic air routes between Malaysian Airline System Bhd. and AirAsia Bhd., the Edge weekly newspaper said, citing people it didn't identify.

The Ministry of Transport is evaluating the airlines' proposals together with Penerbangan Malaysia Bhd., which owns Malaysian Air and the loss-making domestic air service business, the newspaper said. Malaysian Air operates the domestic air services for Penerbangan under a contract that expires in March next year, the report said.

Malaysian Air may reduce the frequencies of most domestic destinations and raise fares, while AirAsia would add flights to these routes, the Edge said. The government may allow other companies to operate rural air services which require smaller planes and can't be taken over by AirAsia, the report said.

Malaysian Air's plan to replace its domestic fleet may be delayed and a planned $1 billion investment on 39 new narrow-body planes may be reduced until the government decides on the domestic routes, the newspaper said. Penerbangan owns the planes used by Malaysian Air, which leases the aircraft from its parent.

MAS joins 5-star airlines club
13 Jun 2005 5:29 PM
source : The Edge Communications Sdn Bhd. (http://www.theedgedaily.com/cms/content.jsp?id=com.tms.cms.article.Article_750818c3-cb73c03a-1fbc3550-803b5113)


Malaysia Airlines has joined the most exclusive group of world airlines being ranked as a five-star airline by global aviation rating organisation Skytrax. The other five-star airlines are Cathay Pacific Airways, Qatar Airways and Singapore Airlines.

Skytrax marketing director Peter Miller said: "To achieve five-star airline status is a most prestige achievement for the airline. A five-star rating beas testimony not only to the quality of product Malaysia Airlines provides to customers, but is greatly influenced by the very high standards of staff service."

"Malaysia Airlines cabin staff service is renowned as one of the world's best - it has the required hallmarks of efficiency, but what sets it apart is a most distinctive charm and character of service that is so reflective of the Malaysian culture."

In a statement, he said MAS's marketing tagline of "Going Beyond Expectations" was well portrayed by the airline's front line staff, and "is a defining element of their recent elevation to five-star airline status."

"There are just four airlines in the world that merit this prestige five-star accolade, and we are pleased to welcome Malaysia Airlines into this exclusive group that represents the very best about air travel today," said Miller.

Malaysia's AirAsia buys Airbus engines for US$750 million
13 June 2005

KUALA LUMPUR, Malaysia (AP) - Malaysian budget carrier AirAsia said Monday it has signed a US$750 million (euro625 million) deal to buy engines from Airbus for its new fleet of 60 aircraft it has ordered from the European plane maker.

AirAsia, the largest budget carrier in Southeast Asia, in March signed an order to buy 60 Airbus A320-200 aircraft for 14.4 billion ringgit (US$3.79 billion; euro3.16 billion), and also the right to buy another 40 of the same aircraft.

In a statement to the local stock exchange, AirAsia said it will buy 120 engines and nine spare engines from Airbus for the 60 aircraft. The agreement also included the right to buy an additional 80 engines and six spare engines for a further 40 aircraft.

"The Airbus A320-200 aircraft complete with the installed engines is scheduled to be delivered over a period of up to six years, with the first two aircraft scheduled for delivery in December 2005," it said.

AirAsia said it is considering various sources of funding, "including but not limited to export credit guaranteed borrowings, commercial bank borrowings and sale and leaseback transactions." It didn't elaborate.

AirAsia, which currently serves routes in Malaysia, Indonesia, Thailand, Singapore and Macau, is planning flights to China, Laos, Vietnam and Cambodia. It carried 1.8 million passengers in 2003, and an estimated 3.2 million passengers in 2004. It expects passenger numbers to rise to 6 million in 2005.

MAS told to fly daily to Paris
Updated : 14-06-2005
Media : Business Times
Story By : FAUZIAH ISMAIL


PARIS, Mon: Deputy Prime Minister Datuk Seri Mohd Najib Abdul Razak has asked Malaysia Airlines (MAS) to exercise its rights to operate daily into France to further intensify accessibility between both Malaysia and France.

At present, Malaysia Airlines operates a Boeing 747-400 into Paris five times a week.

¡§Daily flights into Paris would serve as a greater attraction for people to travel between the two countries. With more flights into Malaysia, it would also serve (the interest of) KL International Airport as a hub. To be a hub, you (an airport) have to be connected,¡¨ Najib said when addressing the Malaysian community in France at a reception here yesterday.

Transport Minister Datuk Seri Chan Kong Choy, in an immediate reaction to Najib¡¦s call, said the national carrier will be asked to mount daily operations into the French capital by the middle of next year.

¡§At a load factor of 75 per cent now, MAS should operate more flights between Kuala Lumpur and Paris,¡¨ he told reporters at the reception.

Chan, who is currently in the city for the Paris Air Show at Le Bourget and visiting the Port of Marseilles, said the Government acknowledged MAS¡¦ constraints especially with regard to capacity to mount the additional frequencies.

The national carrier, however, will be asked to work out ways to overcome it.

Business Times understands that MAS¡¦ plans to introduce daily flights out of Paris by 2007. By this time, it would have taken delivery one of its six A380s and would be introducing the superjumbo on current 747-400 routes, thus releasing the 747-400s for deployment to other routes such as Paris.

Chan said MAS will also be asked to look at avenues such as codeshare with airlines in France to further increase accessibility between the two countries.

MAS chairman Datuk Dr Munir Majid, who was also at the reception, said the airline¡¦s management would have to look into the ways in which to increase accessibility between both countries.

Czech Travel Service Will Lease 3 Planes To Malaysia Air
13 June 2005

PRAGUE (Dow Jones)--Czech private air charter company Travel Service AS Monday said it will lease three Boeing Co. (BA) 737-800 jets and their crews to Malaysia Airlines for 18 months.

Malaysia Airlines is owned by Malayasian Airline System BHD (3786.KU).

The contract is worth $40 million for Travel Service, the company said in a statement.

Travel Service will supply its manned planes in the fall when Malaysia Airlines begins its planned route expansion by offering new flights from Kuala Lumpur to China, India and Australia.

Travel Service is currently holding merger talks with the state-owned flagship airline, CSA Czech Airline AS (CAA.YY)

Company Web sites: http://www.travelservice.aero

'their crews' inclusive of inflight cabin crews?? i know MAS is very stringent in her stds..

AirAsia Signs Engine Maintenance Agreement With GE
Updated : 14-06-2005
Media : Bloomberg
Story By : Stephanie Phang



(Bloomberg) -- AirAsia Bhd., Asia's largest discount carrier, said it signed an agreement valued at about $1.5 billion with a unit of General Electric Co. to maintain and repair engines bought from CFM International Inc.

The agreement will fix the maintenance cost for 20 years for each of the 129 engines that AirAsia has ordered for 60 Airbus SAS A320-200 planes, the company said in a statement to the Malaysian stock exchange after the market close today.

AirAsia said yesterday it chose CFM International, General Electric's venture with Snecma SA of France, to supply CFM 56 engines for the 60 Airbus planes it ordered in March. The order for the engines is valued at $750 million, based on list prices. The carrier will start taking delivery of the 60 planes in December. AirAsia now operates 24 Boeing Co. 737-300 planes.

AirAsia is expanding its fleet as economic growth in the region boosts demand for travel. The airline, based outside Kuala Lumpur, is seeking proposals from banks for loans of $630 million to help fund the purchase of some of its new planes.

The engine maintenance agreement was signed with GE On Wing Support Malaysia Bhd., a unit of GE Engine Services, Inc., AirAsia said. The engines will be maintained by GE Engine Services Malaysia Sdn., a joint venture between GE Engine, a unit of General Electric, and Malaysian Airline System Bhd.

The agreement fixes the maintenance cost of a further 86 engines if AirAsia decides to buy 40 more Airbus A320 planes, the airline said.

More Xi’an-KL flights on the cards
Wednesday, June 15, 2005




China and Malaysia are looking at the prospects of increasing flights between Kuala Lumpur and Xi'an, the capital city of Shaanxi province.

Tourism authorities of the two countries feel that an additional flight between the two cities could boost passenger arrivals at both sides as well as draw more opportunities for commercial and cultural growth.

“Currently, there are only two flights a week between Malaysia and Shaanxi and we are working on offering another flight,” said Tourism Malaysia East Asia regional director Chong Yoke Har.

“This would help forge stronger ties between Malaysia and China,” she said at the opening of the Tourism Promotion Conference of Shaanxi at the JW Marriot Hotel, Kuala Lumpur.

Chong said China, along with Hong Kong, Taiwan and other East Asia countries have made the region one of Malaysia's main tourism markets.

Malaysia would continue to penetrate more markets in East Asia to compete with other countries that are also eyeing the region.

Shaanxi Tourism Association Bureau director Dong Xianmin said there are several direct flights from the province to international destinations like Japan, Korea, Thailand and Singapore as well as to Hong Kong and Macau.

He said there are first-class highways as well as good air and railway links in Shaanxi, which has developed into one of the most attractive destinations in China.

Dong hopes that there would be improved co-operation between China and Malaysia in the fields of tourism, aviation and media.

Malaysia Airlines and Thales to set up A380 In-flight Entertainment Repair and Support Center in Subang, Malaysia
13 Jun, 2005




Le Bourget, Paris 13th June 2005: Malaysia Airlines has teamed up with Thales to set up an A380 In-flight Entertainment (IFE) Repair and Support Center in Subang, Malaysia. This was made possible with the selection of Thales Top SeriesTM In-Flight Entertainment System for Malaysia Airlines A380.

With this partnership, MAS is now the only MRO in the region to offer an integrated array of specialized services, which among others includes VIP & Corporate Jet Maintenance Repair and Overhaul, installation of blended winglets, “Specialized boutique” aircraft painting services and world-class aircraft finishing.

“This is truly a step forward for Malaysia Airlines and we look forward to the opportunity of expanding our customer base and providing these specialized services to the major carriers of the world. Both MAS and Thales will work together to market the A380 In-flight Entertainment Repair and Support Center,” said Dato’ Ahmad Fuaad Dahlan, Managing Director of Malaysia Airlines.

Malaysia Airlines’ experience as a world class maintenance, repairs and overhaul center (MRO) of excellence makes it a strong partner for Thales in setting up the Repair and Support center in Subang for not only Malaysia Airlines’ fleet of aircraft but also regional customers, offering on-time and world-class logistical support for Thales IFE system fitted on the Airbus A380 aircraft.

The Memorandum of Understanding (MOU) on this cooperation was signed by the two companies at the at the Malaysia pavilion in the Le Bourget Airshow also known as the Paris Air show 2005.

Dato’ Ahmad Fuaad and Mr. Olivier Guibert, Thales, Managing Director at Singapore signed on behalf of the respective organisations at the ceremony witnessed by Datuk Seri Najib Tun Razak, the Hon. Deputy Prime Minister of Malaysia and Dato’ Dr Munir Majid, Malaysia Airlines’ Chairman and Mr. Emmanuel Grave, Managing Director, Thales.

Airline passengers’ growing expectations for high-level service standards of the In-flight Entertainment system (IFE) has transformed this facility into a product differentiator amongst the major air carriers.

Through this partnership, the Malaysian national carrier is now positioned to take advantage of additional 3rd party business throughout Asia, as the region is one of the largest Airbus A380 order base.

This new highly specialized service collaboration is also part of Malaysia Airlines’ continuing program to assist the Malaysia government’s plan to make Subang International Aerospace Park (SIAP) the regional hub for MRO of aircraft.

“Thales is delighted to set up this new A380 IFE repair and supporter center with Malaysia Airlines. Together we are committed to provide the best services to the A 380 customers”, said Mr. Olivier Guibert.

About Malaysia Airlines
The MAS Engineering Division in Subang, Malaysia started operations in 1972 when the national airline took to the skies. Its core function is to carry out maintenance work on the aircraft in the airline’s fleet. In addition, MAS Engineering also performs maintenance and component repair and overhaul services for other airlines. With its well equipped and advanced facility, coupled with well trained and highly experience personnel, MAS Engineering is scaling new heights by teaming up with Thales Avionics Inc and maximising synergies to set up an A380 In-flight Entertainment Repair and Support Center in Subang, Malaysia.

About Thales
Thales is a leading international electronics and systems group, serving defence, aerospace, security and services markets worldwide. The Group employs 61, 500 people throughout the world and generated revenues of 10.3 billion euros in 2004. Based in Singapore, the aerospace business of Thales in Asia is the regional hub for the Asia Pacific Region. It offers all operators of Asia Pacific a one-stop-shop for marketing and sales, customer support, repairs and maintenance.

MALAYSIA AIRLINES ENHANCES SAFE FLIGHT OPERATIONS WITH HONEYWELL RUNWAY AWARENESS & ADVISORY SYSTEM
15 Jun, 2005



Le Bourget, Paris 15th June 2005. Malaysia Airlines today signed an agreement with Honeywell International Inc, USA for the integration of a Runway Awareness & Advisory System (RAAS) in its fleet of 92 jet aircraft, becoming the first Asian airline to upgrade its flight operations with this enhanced safety feature.

The agreement was signed at the Paris Air Show 2005 by Dato’ Captain Mohd Nawawi Awang, Senior General Manager (Flight Operations), Malaysia Airlines and Mr. Frank Daly, President (Commercial Electronic Systems) of Honeywell International Inc.

Under this deal Honeywell Inc will upgrade the existing Enhanced Ground Proximity Warning System (EGPWS), in all 92 jet aircraft of the Malaysian national carrier’s fleet, with the RAAS software.

The RAAS will also be integrated in the EGPWS of Malaysia Airlines’ 5 jet aircraft simulators at its Flight Simulator Training Centre, located in the Subang International Aerospace Park, Malaysia.

The sophisticated RAAS has an extensive database of airport runways in the world and uses this information to activate voice messages in English to the operating crew, providing them improved situational awareness during the crucial stages of aircraft taxiing, take-off and landing.

The voice-activated messages further assist the operating crew (pilots), over and above the physical indicators, to prevent irregularities during aircraft taxiing, take-off and landing, thus enhancing the safety of the operations on the ground.

Speaking at the signing ceremony, Dato’ Captain Nawawi said, “Today’s deal is part of the continuous initiatives of our mission to provide safe and reliable air transportation to our customers. Over the years, we have maintained a very high standard of flight safety and will further strive in this aspect with timely upgrades to our flight operations processes and equipment as well as manpower training”.

The Honeywell RAAS was first introduced in 2004 for Business and Corporate jets and effective this year to commercial aircraft.

The RAAS integration into the EGPWS of Malaysia Airlines’ fleet will commence with the B777-200 aircraft, followed by B747-400, B737-400 and the Airbus A330-300 and A330-200. This upgrade beginning August 2005 is expected to be completed within 12 months for all 92 aircraft in the airline’s fleet and its simulators.

6 New Companies Selected as KLCI Component Stocks

KUALA LUMPUR, June 14 (Bernama) -- Six new companies including Astro All Asia Network PLC, whose market capitalisation currently stands at RM10.2 billion, have been included as component stocks of the KLCI effective June 30 2005.

Apart from Astro, the other companies are AirAsia Bhd, Bursa Malaysia Bhd, KLCC Property Holdings Bhd, Scomi Group Bhd and Uchi Technologies Bhd, Bursa Malaysia Bhd said in a statement here today.

It said that the Executive Committee of Bursa Malaysia, following a review of the Kuala Lumpur Composite Index (KLCI) had decided to release six companies as component stocks of the KLCI, as they fell into the least active quartile of annual trading volume up to March 31, 2005.

The six companies to be released effective June 30, 2005 are Mesiniaga Bhd, Computer Systems Advisers (M) Bhd, Manulife Insurance (M) Bhd, United Plantation Bhd, Hap Seng Consolidated Bhd and Measat Global Bhd.

Bursa Malaysia said that the six new component stocks of the KLCI were selected based on the criteria which took into account, among others, market capitalisation, business activities and trading volume.

It said that the objective of the KLCI, made up of 100 component stocks listed on the Main Board of Bursa Malaysia Securities, was to continue to reflect the changes in the national economy as well as evolvement of the corporate sector.

AirAsia poised for expansion
Updated : 17-06-2005
Media : The Star


AirAsia CEO Tony Fernandes tackles adversity with courage. He is proud to have achieved superior cost containment despite fuel prices being 48% more expensive.

The budget airline, which has grown by leaps and bounds, is poised for expansion; Fernandes himself is always driving for improvements and further understanding of the business.

STARBIZ: How are your plans to strengthen the business coming along?

Fernandes: We have managed to contain our costs effectively. Our cost/ASK for the latest quarter was 2.12 US cents, which is the lowest in the world. This superior cost containment was achieved despite fuel prices being 48% more expensive than what they were last year. This is our biggest advantage because with our lowest cost structure, we are able to continue offering low fares to our customers.

We have achieved better understanding of seasonality factors relating to travel and have effectively managed a more efficient revenue management system

We have successfully concluded an order for 100 Airbus A320, consisting of 60 firm and 40 options. The inclusion of the Airbus will continue to drive our costs downwards; increase capacity and improve fuel efficiency.

Also, we have announced in the Q3 report that we have successfully negotiated and locked in hedge for the period of July 2005 to 2006 to safeguard against intense fuel price fluctuations. Following which, we have also obtained approval from the Government to implement a minimal fuel surcharge. However, there are no immediate plans to implement one yet.

Moving forward, we have embarked on an aggressive plan to boost and drive ancillary income to support revenue. Go Hostel, Go Car was launched earlier this year.

Expansion-wise, we have strengthened our route network and this enables us to capture a bigger market. AirAsia now travels to 51 routes, including China and the Philippines.

StarBiz: Are you reaping the benefits of earlier moves to better position the business? Kindly elaborate.

Fernandes: Yes. Our meticulous efforts to promote travelling has changed the way Malaysians and Asians are travelling. More people are flying nowadays and many people flew for the first time. We carried 4.6 million people for the first nine months of FY2005. People who flew for the first time now travel via air frequently.

Meanwhile, our innovative cost optimisation policy has enabled us to enjoy cost savings from economies of scale, effective marketing and promotions, increased productivity and higher aircraft utilisation. The fuel hedge enables us to cushion the blow of high oil prices and continue offering low fare tickets.

As mentioned earlier, we have expanded our ancillary business to include Go Car, Get a Room, Go Holiday, air space advertising, charter flights, sale of F&B on board and so on. People who are comfortable with our service, reputation and value for money will naturally opt for our ancillary business.

By having an improved fare management system, we were able to improve load factor to the more popular destinations while continuing to develop new routes.

Our sister company, Thai AirAsia, has achieved its first quarterly profit despite the tsunami disaster and bird flu outbreak.

Finally, 3?years of hard work paid off. AirAsia is the first LCC to be publicly listed. The inclusion of AirAsia in the MSCI Emerging Market Index on March 1 was a further boost to our aggressive expansion.

The encouraging debut of our JV in Indonesia, AWAIR, on Dec 8, 2004, has come at the right time. Already we are enjoying high load factors to several of our Indonesian routes. Also, the Indonesian Minister of Transport has since restricted new airline applications.

StarBiz: What are the trends in the industry or economy that are having a positive impact on your business?

Fernandes: The Malaysian economy is blessed with sound fundamentals as depicted by sustained strong economic growth, a low unemployment rate, prudent fiscal management and relatively low debt levels. The economy has been achieving real GDP growth since 1999 at modest inflation rates.

With real GDP growth, subsequently more spending power and cheaper air fares, a new trend can be seen developing in terms of how people are now travelling more often than before. A research by AC Nielsen back in 2002 showed that only 6% of Malaysians fly once a year! Fast forward to today, the market has grown significantly with the emergence of AirAsia. Given that we had 3?years to educate the market about the fundamentals of LCCs, AirAsia has indeed become a household brand.

Malaysia is never short of qualified, hard working and dynamic people. Malaysians by nature are a disciplined and very competitive bunch. I'm proud to say our employees are in-built with such attributes; the passion and desire to succeed is prevalent among all AirAsia staff. This enables us to be very productive and efficient in our operations . As long as Malaysian workforce maintains their high standard of etiquette, discipline and passion, we will continue to enjoy the competitive advantage that sets us apart from other countries.

StarBiz: Do you foresee or expect any unfavourable occurrences or events that could have an impact on your business in the near future?

Fernandes: The airline business is a very unpredictable industry. AirAsia has weathered the Severe Acute Respiratory Syndrome (SARS) and bird flu outbreaks, oil wars and natural disasters. And yet, we continue to grow and expand our business.

Moving forward, are you likely to be still expanding your business or the scope of your business ties?

Fernandes: Absolutely! Only three years old and scope for growth is amazing, with many places in Asia still waiting to be uncovered.

In Malaysia, we will continue to boost frequency to existing destinations while expanding the popular routes, introduce new routes and develop more secondary hubs. The same goes with our associates in Thailand and Indonesia, with more frequencies, new routes and destinations, and campaigns to capture the volume from the local markets.

We will be getting our brand new Airbus by December. With these state-of-the-art aircraft, we will be able to improve the service level and customer satisfaction. We are also going to enjoy better economics with the Airbus since it is designed to be extremely efficient and cheaper to operate.

On a personal level, what has been the happiest moment for you so far this year as CEO or your company?

Fernandes: Nothing beats the news that AirAsia will soon have a place to call home ?the new LCC Terminal is scheduled to be completed by early 2006. The terminal is fundamental in our growth as the region‘s leading low fare airline.

18 June 2005

AirAsia may take over some Malaysia Airlines domestic flights - report

KUALA LUMPUR : National carrier Malaysia Airlines may pass on most of its loss-making domestic flight routes to budget airline AirAsia Bhd, the News Straits Times reported on Saturday.

The newspaper quoted unidentified sources as saying that MAS would probably concentrate on flights to major cities - Penang, Langkawi, Kuching and Kota Kinabalu - and give the rest to AirAsia.

The deal is likely to be announced by the end of the month, the New Straits Times said.

AirAsia chief executive Tony Fernandes did not confirm the reported deal but told the Times that he supports the idea.

"Consumers will benefit from the ability to get services at a cheaper rate for domestic routes...and have more choices in terms of cheaper fares," he was quoted as saying.

AirAsia currently serves 15 destinations within Malaysia. It also flies to China, Indonesia, Macau, Singapore and Thailand, and is planning flights to Laos, Vietnam and Cambodia.

It carried 1.8 million passengers in 2003, an estimated 3.2 million passengers in 2004 and expects passenger numbers to rise to 6 million in 2005. - CNA

Copyright © 2005 MCN International Pte Ltd

Business Times - 21 Jun 2005

MAS, AirAsia to cooperate on domestic services

KUALA LUMPUR - Flag carrier Malaysia Airlines and Asia's top budget carrier AirAsia will cooperate on certain domestic routes as part of an industry rationalisation, Transport Minister Chan Kong Choy said on Tuesday.

'We are going to rationalise the domestic routes. We want them to cooperate. There is a lot of room for cooperation in the interests of the country and the aviation industry,' he told AFP.

Newspaper reports have said that the proposal involves AirAsia taking on some of Malaysia Airlines' less profitable routes but Mr Chan declined to elaborate on the details, saying that both the carriers were holding talks on the plan.

Malaysia Airlines last month said net profit fell 29 per cent to RM326.1 million (US$86 million) in the year to March due to higher fuel costs, which more than offset record international traffic growth.

The airline currently flies to 88 international and 32 domestic destinations.

AirAsia, which launched as a budget carrier in December 2001 with just two aircraft, has become a significant player in the industry and has been imitated by startled national carriers along with a host of new low-cost entrants.

It is now South-east Asia's biggest low-cost carrier in terms of fleet size and derives much of its business within Malaysia. It also operates in Thailand, Indonesia, the Philippines and China.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

AirAsia Selects CFM56-5B To Power A320s In RM2.85 Bln Order
June 14, 2005 15:15 PM



KUALA LUMPUR, June 14 (Bernama) -- AirAsia, the leading low-fare airline in South East Asia, has unveiled its engine choice for its 100-aircraft Airbus A320 order, of which 60 are firm order and 40 purchase rights.

The airline has selected CFM International's CFM56-5B engine to power the A320s scheduled to begin joining the AirAsia fleet as early as December this year.

The purchase agreement for the firm engine order, which covers a total of 120 engines plus nine spares, is valued at about US$750 million (RM2.85 billion) at list price, AirAsia said in a statement.

An official signing ceremony was held between both parties at one of largest aerospace events of the year, the 2005 Paris Air Show at Le Bourget.

The purchase agreement was signed between CFM president and chief executive officer Pierre Fabre and AirAsia Bhd group chief executive officer Tony Fernandes.

The ceremony was witnessed by Deputy Prime Minister Datuk Seri Mohd Najib Abdul Razak and Transport Minister Datuk Seri Chan Kong Choy.

"The decision (by AirAsia) reaffirms the CFM56-5B's position as one of the most reliable engines in the world," Fabre said.

CFM, a joint venture company between Snecma and General Electric Company, is the world's leading supplier of commercial aircraft engines, with more than 15,000 in service worldwide.

"We believe in aligning ourselves with the best. While cost is of an essence to the nature of our business, there's no denying that the beauty of the CFM56 engines lies not only with its high reliability and long on-wing life, but also its ability to complement the A320," Fernandes said.

"These attributes, coupled with CFM's reputation as one of the leading suppliers of commercial aircraft engines, would only serve to drive AirAsia's cost structure downwards and effectively give consumers a very good product and value for their money," he said.

More than 1,700 CFM56-5B engines have been delivered to date, and the fleet is growing at a rate of about 20 engines per month.

AirAsia operates a fleet of 26 Boeing 737-300s powered by the CFM56-3 engines, serving more than 51 domestic Malaysian and regional routes.

The new A320-200s will support the its aggressive growth and expansion, the airline said.

AirAsia, due to become the single largest Airbus A320 operator in the Asia-Pacific region with its recent aircraft order, will operate a mixed fleet during the transition from Boeing 737-300s to the Airbus A320.

The 180-seat A320s will enter the fleet from 2005 until 2011.

-- BERNAMA

AirAsia buys into GE unit as part of US$1.5b deal
23-06-2005



BURSA Malaysia Bhd main board-listed AirAsia Bhd is acquiring 19 per cent stake in engine overhaul provider GE Engine Services Malaysia Sdn Bhd (GEESM) as part of a massive US$1.5 billion (US$1 = RM3.80) 20-year package it has signed for the maintenance, overhaul and repair of the CFM56-5B engines for its A320 Airbuses.

GEESM, which is part of GE Transportation ¡X Aircraft Engines, a division of the General Electric Co (GE), will dilute its shareholding in the Malaysian operations to 51 per cent while the remaining 30 per cent will be held by Malaysia Airlines (MAS).

GEESM, which operates an engine workshop at the Sultan Abdul Aziz Shah Airport in Subang, specialises in the overhaul and repair of the CFM56 and PW4000 engines. It currently overhauls engines for MAS and other Asia-Pacific airlines.

At the recent Paris Air Show in Le Bourget, the low-fare no-frills carrier announced the US$750 million purchase of the 129 CFM56-5B engines from CFM International, which is a joint venture between GE and Snecma of France.

AirAsia chief executive Tony Fernandes said the company is extending its commitment to GE as ¡§we believe in strengthening partnerships that work well for our business¡¨.

AirAsia also signed the OnPoint Solution engine service agreement with GE. Under the agreement, AirAsia¡¦s CFM56-5B engines, which will be installed in the airline¡¦s fleet between December 2005 and 2011, will be maintained and overhauled at GEESM¡¦s engine service facility.

¡§In the airline business, engines are one of the important elements. If we exercise all our options, and I dare say we would, we are going to have 200 engines. We would be providing work for the shop,¡¨ Fernandes told journalists at the air show.

AirAsia has firm orders of 60 A320s and options for 40 more.

This is the third agreement AirAsia is signing with GE. In 2002, AirAsia signed a five-year materials agreement with GE to support the airline¡¦s CFM56-3B engines powering its fleet of B737-300s. Last year, it inked another nine-year materials agreement with GE to maintain 16 CFM56-3B2 engines valued at more than US$50 million.

The OnPoint Solution agreement allows AirAsia to design its own engine service needs.

The solution maximises asset value and utilisation and improves operating efficiency. It includes overhaul, on-wing support, new and used parts, component repair, technology upgrades, engine leading and diagnostics.

Skytrax Ranks Malaysia Airlines Amongst The Best In The World
June 23, 2005 12:18 PM
By Manik Mehta



NEW YORK, June 23 (Bernama) -- Adding one more feather to its cap, Malaysia's national carrier Malaysia Airlines (MAS) has been admitted to the most exclusive group of world airlines: it has received the ranking of a "5 Star" airline by the aviation rating organization, Skytrax.

Including Malaysian Airlines, there are now only four airlines in the world which have been given the 5-Star ranking, the other three being Singapore Airlines, Cathay Pacific Airways and Qatar Airways.

The Skytrax world airline star-ranking programme applies quality assessment to more than 375 airlines in the world, rating the standards of each airline's front-line product and service, predominantly based on international flight operations.

"To achieve 5 Star airline status is the highest achievement for the airline," said Peter Miller, Director of Marketing, Skytrax.

"A 5 Star rating bears testimony not only to the quality of product Malaysia Airlines provides to customers, but is greatly influenced by the very high standards of staff service.

Malaysia Airlines cabin staff service is renowned as one of the world's best - known for its efficiency, but what sets it apart is a most distinctive charm and character of service that is so reflective of the Malaysian culture."

The New York based area vice president (East Coast) of Malaysia Airlines, Malkit Singh, recently made a strong pitch before a gathering of representatives from the travel industry and international media in New York for the national carrier of Malaysia, highlighting its low air fares, quality ground service and fantastic on board treatment.

Malaysia Airlines is also undertaking a "total cabin redesigning" of its fleet of 34 Boeing 747 and 777 aircraft.

This upgrading was actually initiated last year and is expected to be completed by mid-2006, according to Malaysia Airlines sources in the United States.

Some of the upgraded aircraft might possibly be ready for use by the end of 2005 for flights to and from the United States.

Malaysia Airlines currently operates eight flights a week to and from the United States - five times from Los Angeles (California) and thrice from Newark (New Jersey).

The airline has, meanwhile, ordered five Airbus aircraft of the A380 type.

Malaysia Airlines representatives claim that it is the largest passenger carrier in South East Asia, flying to more than 100 destinations in six continents.

Recognized for its exemplary in-flight service, Malaysia Airlines has won Skytrax's world's best cabin staff award for three consecutive years and numerous international awards for best signature dish, best airline lounge, best business class and overall best airline.

Malaysia Airlines currently offers five flights per week from Los Angeles (California) and three from Newark (New Jersey) to Kuala Lumpur.

-- BERNAMA

Congrats MAS!

Malaysia Airlines route map

http://www.chemcon.net/temp_images/mas_logo.gif
http://www.chemcon.net/temp_images/mas_route_map.gif

What is MAS's tagline? I saw these:

1) Going beyond expectations
2) Fly. Rest. Arrive.
3) An experience redefined

What is MAS's tagline? I saw these:
1) Going beyond expectations
2) Fly. Rest. Arrive.
3) An experience redefined

the first one.
the second one is used in one of their ads.
the third one is used for the major refurbishment of their 777 and 747, not sure of the airbus that they have though..

^^ the one dot with the missing name is Darwin, code-shared with Garuda.

Aberdeen, Dublin, Belfast, Glasgow, Edinburgh, Teesside, Leeds Bradford : code-share with BMidlands
Oslo, Helsinki, Copenhagen, Gothenburg : code-share with KLM
Doha : Qatar Airways, Tashkent : Uzbekistan Airways
and a few other places within SEA with Thai, Garuda etc..

they signed MOU with Garuda earlier for 'flying' pax from Jakarta to Europe via KUL. Madrid should be one of the destinations if i am not mistaken..

has MAS decided on which type of aircraft to replace her aging 737s? i hope they wud go for 737NG.. looks cool.

Business Times - 30 Jun 2005

Air Asia to hold off on fuel surcharge

KUALA LUMPUR - Malaysian budget carrier AirAsia said on Thursday it will suspend plans to impose fuel surcharges until government moves to rationalise domestic air routes are resolved, a report said.

Despite rising fuel prices, AirAsia chief executive Tony Fernandes said the carrier would wait for the rationalisation exercise to be implemented before imposing a surcharge.

The surcharge, which was approved by the government in May, will be imposed on AirAsia's domestic and regional routes.

'We hope the rationalisation will come soon. Fuel prices have continued to rise,' Mr Fernandes was quoted as saying by the official Bernama news agency.

He added that a reworking of the domestic route system was important given that AirAsia had to bear the cost of spiralling fuel prices, in contrast to flagship carrier Malaysian Airlines whose domestic operations are government-subsidised.

Transport Minister Chan Kong Choy said earlier this month that AirAsia and Malaysia Airlines will cooperate on certain domestic routes as part of an industry rationalisation.

Newspaper reports have said that the proposal involves AirAsia taking on some of Malaysia Airlines' less profitable routes but few details have emerged on the plan so far.

Malaysia Airlines last month said net profit fell 29 per cent to RM326.1 million (US$86 million) in the year to March due to higher fuel costs, which more than offset record international traffic growth.

AirAsia is South-east Asia's biggest low-cost carrier in terms of fleet size and derives much of its business within Malaysia. It also operates in Thailand, Indonesia, the Philippines and China.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

04 July 2005

Budget carriers heading for consolidation as fuel prices rise: AirAsia

KUALA LUMPUR : Asia's most profitable budget carrier AirAsia is expecting a wave of consolidation in the sector as rising fuel prices and firmer aircraft leasing rates put pressure on new entrants, a report said Monday.

The Malaysia-based carrier's chief executive officer Tony Fernandes told the Financial Times that many no-frills ventures were founded by "people chasing what they thought was easy money" but who now faced much tougher operating conditions.

"I think business plans are looking quite different, and I think there's going to be a rationalisation for sure. I think it's inevitable," he was quoted as saying in an interview from Singapore.

The comments come less than a week after Valuair and Jetstar Asia, two discount airlines based in Singapore, announced they were in talks that could lead to an alliance or merger.

The negotiations are a sign that the industry could be set for a shake-out after a period of rapid growth, with a host of new low-cost carriers having been set up across Southeast Asia and India in the past three years.

"At 25 dollar jet fuel (per barrel), with aircraft leasing where it was and people seeing how well we were doing, there was a herd mentality, with many people chasing what they thought was easy money," Fernandes said.

"I think their business plans have obviously changed dramatically, with jet fuel now at 75 dollars (per barrel) and a hardening in aircraft (leasing) pricing," he added, according to the report.

AirAsia, which launched as a budget operator in December 2001 with just two aircraft, has become a significant player in the industry and been imitated by startled national carriers along with a host of new low-cost entrants.

AirAsia is now Southeast Asia's biggest low-cost carrier in terms of fleet size and derives much of its business within Malaysia. It also operates in Thailand, Indonesia, the Philippines and China.- AFP /ls

Copyright © 2005 Agence France Presse. All rights reserved.

Tuesday July 5, 5:09 PM
AirAsia CEO says cooperation talks with Malaysia Airlines going well

KUALA LUMPUR (AFP) - Budget operator AirAsia said negotations with national carrier Malaysia Airlines on cooperating on certain domestic routes as part of an industry rationalisation are making progress.

AirAsia's chief executive officer Tony Fernandes said that, when put in place, the plan would deliver benefits for both carriers.

"We have got tremendous support from the government," he said. "The talks are moving in the right direction. The domestic rationalisation will be a major boost to AirAsia and Malaysia Airlines."

He declined to say when the talks are expected to conclude or what the rationalisation programme includes.

Transport Minister Chan Kong Choy last month said the government wanted the two carriers to cooperate.

Newspaper reports have said the proposal involves AirAsia taking on some of Malaysia Airlines' less profitable domestic routes, but Chan declined to elaborate, saying the carriers were in talks to thrash out the plan.

Malaysia Airlines last month said net profit fell 29 percent to 326.1 million ringgit (86 million dollars) in the year to March due to higher fuel costs, which more than offset record international traffic growth.

AirAsia, which launched as a budget carrier in December 2001 with just two aircraft, has become a significant player in the industry and been imitated by national carriers along with a host of new low-cost entrants.

AirAsia is now Southeast Asia's biggest low-cost carrier in terms of fleet size and derives much of its business within Malaysia. It also operates in Thailand, Indonesia, the Philippines and China.

Business Times - 06 Jul 2005

Int'l routes lift MAS load factor for May to 67.5%

KL keen on AirAsia taking over less profitable MAS domestic routes

By VEN SREENIVASAN

(SINGAPORE) Expansion of its overseas route network seems to be paying off for Malaysia Airlines.

The Malaysian national carrier, which is facing intense competition on its domestic and regional routes from low-cost upstart AirAsia, filled more seats and cargo space in May, thanks largely to its international routes.

The carrier enjoyed an overall load factor of 65.7 per cent during the month, up from 58.9 per cent during the same month a year ago. Its load factor in April was 66.8 per cent, compared to 61.5 per cent a year earlier.

MAS said it carried 12.3 per cent more passengers compared to a year ago as it increased its seat capacity by 24.1 per cent in May.

Passenger load on its international routes was 69.3 per cent, up 12.6 percentage points from a year earlier.

Meanwhile, the airline continues to bleed on its domestic routes despite relatively higher loads. It filled 71.5 per cent of seats on its domestic routes in May.

MAS faces a squeeze on yield as it is forced to go head-to-head against the region's largest low-cost carrier, AirAsia, on key routes.

And, as the national flag carrier, MAS is obliged to operate many unprofitable routes to obscure rural destinations. Analysts say that this second factor is the airline's biggest problem.

Last year, MAS lost some RM270 million (S$120.4 million) on its domestic operations, up from RM150 million in 2003. And the lion's share of the losses came from rural air services in East Malaysia, and some short-haul routes in West Malaysia. The airline's most lucrative short-haul route is the Kuala Lumpur-Singapore hop, from which it gets about 10 per cent of its profit.

But, relief may finally be on the way as the government reviews the domestic route network.

The government has encouraged the two airlines to talk to each other so that AirAsia, with its lower cost operating structure, might be able to take over some of MAS' less profitable routes.

AirAsia chief executive officer Tony Fernandes told the media yesterday that the plan would benefit both carriers when put in place.

'We have got tremendous support from the government. The talks are moving in the right direction,' he was quoted by AFP. 'The domestic rationalisation will be a major boost to AirAsia and MAS.'

But the government's willingness to relook the route network itself is seen by some industry insiders as acknowledgment that there may be less need for air services now to some rural destinations compared to, say, 10 or 20 years ago when the land transport infrastructure in some of these regions was still found wanting. The fact that costs, particularly fuel, have risen so dramatically may also have helped push the process along.

Fuel accounts for a third of the company's operating costs, and MAS' cargo arm yesterday said it would raise the fuel surcharge on shipments to the US, Europe and parts of Africa for a third time this year to compensate for higher oil prices. MASKargo is upping its fuel levy 13 per cent to RM1.71 a kilogramme starting July 15. Its fuel surcharges for cargo to Australia, New Zealand and other destinations remain unchanged for now.

MAS filled 60.8 per cent of its cargo capacity in May compared with 60.1 per cent a year earlier, it said.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

Thursday July 7, 8:36 PM
Malaysian Airline to increase fuel surcharge for international flights

AP - Flagship carrier Malaysia Airlines said Thursday it will raise fuel charges for international flights from July 15 because of steep jet fuel prices.

For travel between Malaysia and Europe, Australia and New Zealand, North and South America, the Middle East and Africa, the surcharge will go up from 76 ringgit (US$20; €16.77) to 106 ringgit ($27.89; €23.38), Malaysian Airline System Bhd. said in a statement.

The surcharge between Malaysia and the rest of Asia, including neighboring Singapore and Brunei, will be raised from 38 ringgit (US$10) to 53 ringgit ($13.95).

"In view of the steep escalation of jet fuel prices ... airlines worldwide have taken further measures to mitigate this increase to cope with the escalating cost," the airline said. "Malaysia Airlines is compelled to revise the fuel surcharge rates which are for international travel."

Monday July 11, 8:53 AM
MALAYSIA PRESS: PMB Evaluating Loan Offers For Aircraft

KUALA LUMPUR (Dow Jones)--State-owned Penerbangan Malaysia Bhd., or PMB, is evaluating loan offers from banks for its MYR1.2 billion purchase of two aircraft for Malaysian Airline System Bhd.'s (3786.KU) cargo unit, the daily New Straits Times reports, citing bankers involved in the deal.

PMB, which is the parent of Malaysian Airline, has sent out requests for proposals to mainly foreign banks in the country, the daily said.

Lenders like HSBC, Standard Chartered and Citibank have submitted bids, the daily added.

Malaysia Airlines Cargo Sdn. Bhd., the cargo arm of the national carrier, is due to take delivery of two new B747-400 freighters in February and April 2006.

The loan, which is likely to be guaranteed by the government, will be denominated in US dollars and may carry maturities of up to 12 years, the daily added.

PMB and Malaysian Airline officials weren't immediately available for comment.

Newspaper web site: http://www.nst.com.my

AIRASIA REOPENS TALKS OVER HONG KONG LANDING RIGHTS - CO SPOKESMAN
Updated : 11-07-2005
Media : AFX



HONG KONG (XFN-ASIA) - Malaysian budget airline AirAsia Bhd has restarted stalled talks with Hong Kong's international airport over landing rights, a company spokesman said.

Negotiations last year ended in acrimony with the airport refusing to budge on its high landing charges.

However, the spokesman said the two sides have begun "preliminary exploratory talks."

"Hong Kong is warming up to AirAsia," the spokesman said, without elaborating on what is being discussed or at what level.

The delegation of AirAsia chiefs are back at the negotiation table in Hong Kong over the weekend and the talks follow criticism from the travel industry over a lack of low-cost options at Hong Kong's hub.

"They are talking to us and service providers," an airport source was quoted as saying earlier in the South China Morning Post.

"We are talking to a number of carriers."

Based in Kuala Lumpur, AirAsia cuts costs by landing at secondary airports that charge lower landing fees and cuts out some in-flight services.

HK PRESS: HK Airport, Malaysia's AirAsia Resume Talks
Updated : 11-07-2005
Media : Dow Jones



HONG KONG (Dow Jones)--The Hong Kong Airport Authority, which operates Hong Kong's Chek Lap Kok international airport, has resumed talks with Malaysian budget carrier AirAsia Bhd. (5099.KU) about services to Hong Kong just a year after the last round of negotiations ended abruptly, the South China Morning Post reports.

The paper said that a delegation from AirAsia, the region's most profitable low-cost airline, met with airport officials on Thursday and Friday for talks, which it cited a senior executive as saying "were very good."

Earlier negotiations, held in May last year, ended after AirAsia Chief Executive Tony Fernandes picked a "hungrier" Macau, which has a cheaper airport. Hong Kong's airline user fees are among the highest in the region.

At present, AirAsia offers international flights to Bangkok, Kuala Lumpur, Jakarta, Bali, Senai and Phuket. The talks include the possibility of AirAsia flying to Hong Kong from all its current destinations, the paper said.

AirAsia to implement fuel surcharges to combat spiralling prices

KUALA LUMPUR, July 11 (AFP) - Budget carrier AirAsia said Monday that it will introduce a fuel surcharge on its flights for the first time from July 14 as part of efforts to combat spiralling fuel costs.

"Fuel is the single largest cost component for the company; the fuel surcharge will allow the company to alleviate the escalating fuel costs," the carrier said in an announcement to the stock exchange.

AirAsia said the surcharge would be 5.0 ringgit per sector (1.32 dollars) for flights within peninsular Malaysia, 10.0 ringgit per sector for flights to East Malaysia and 25.0 ringgit per sector to Thailand, Indonesia, Macau and the Philippines.

"The fuel surcharge is expected to contribute positively to AirAsia's consolidated earnings for the financial year 2006 ending 30 June 2006," it said.

The government first approved the fuel surcharge in May, but AirAsia has been holding off on introducing the fee in anticipation of government plans to rationalise domestic air routes.

AirAsia's announcement follows similar moves by Malaysia Airlines which last week said it will raise its fuel surcharge for international travel from July 15.

AirAsia, which launched as a budget carrier in December 2001 with just two aircraft, has become a significant player in the industry and been imitated by national carriers along with a host of new low-cost entrants.

AirAsia is now Southeast Asia's biggest low-cost carrier in terms of fleet size and derives much of its business within Malaysia. It also operates in Thailand, Indonesia, the Philippines and China.

AirAsia confirms talks on HK plans
Updated : 12-07-2005
Media : Business Times



AIRASIA Bhd may still get to realise its plan to operate into Hong Kong if talks on landing rights with the island¡¯s airport authority are successful.

The carrier had to abort its plan to fly into Hong Kong earlier due to several issues, including high airport charges, thus forcing the airline to change its course into Macau instead.

An official familiar with the deal, when contacted by the Business Times, did not deny a report out of Hong Kong on the revival of talks but refused to elaborate on the matter.

The negotiation is still at a preliminary stage. Let¡¯s not speculate about it,he said.

AFP, quoting a South China Morning Post report, said talks were revived following criticism from the travel industry over a lack of low-cost options in Hong Kong.

The Hong Kong¡¯s government-controlled airport authority has been accused of turning its back on cheap airlines in order to boost its earnings ahead of a planned partial privatisation.

An analyst, contacted by the Business Times, believes that the sudden interest in AirAsia is due to the success of its Macau flight service.

I think the airport authority in Hong Kong realised that it has underestimated the budget airline after seeing the overwhelming response for AirAsia¡¯s Macau flights, he said.

AirAsia surcharge to have minimal impact
Updated : 13-07-2005
Media : Business Times
Story By : KANG SIEW LI



AIRASIA Bhd new fuel surcharge will have minimal impact on its earnings in the current year, but analysts remain cautious about whether the budget airline can sustain itself amid soaring oil prices.

They said while it is inevitable for AirAsia to impose a fuel surcharge in view of the escalating jet fuel price, in no way will it be recouping the majority or totality of that fuel increase cost.

AirAsia will impose a fuel surcharge for passenger flights of between RM5 and RM25 each way beginning July 14, joining other major airlines in introducing a fuel surcharge as oil prices continue to spike.

TA Securities Holdings Bhd said the surcharge will have a minimal impact on demand for AirAsia¡¯s services as its surcharge is currently the lowest compared to its peers.

We foresee AirAsia experiencing a strong growth boosted by the rapid expansion of fleet and underpinned by passenger growth of 39 per cent in financial year ending June 30 2006 as it aggressively increases its network to high-demand destinations such as China, it said in its daily brief yesterday.

Based on AirAsia¡¯s potential, we have arrived at a fair value of RM1.90 and are recommending a ¡®buy¡¯ call.

OSK Research Sdn Bhd senior analyst Chris Eng said the fuel surcharge was implemented as part of ongoing efforts to respond to recent rapid rises in fuel costs, which comprise 50.2 per cent of AirAsia¡¯s total costs.

Comparing against a sample of AirAsia¡¯s current fares, we estimate that this surcharge will lift yields by 10 per cent, he said in a research note yesterday.

He said although AirAsia sensitivity to fuel price is comparatively lower than full service carriers, he is maintaining his ¡°neutral¡± rating on the stock, with the 12-month target price set to RM1.77, from RM1.65.

An analyst with Mayban Securities Sdn Bhd told Business Times that AirAsia sensitivity to fuel price is comparatively lower than national carrier Malaysian Airline System Bhd (MAS) because the former carries a much smaller earnings base and lower fuel consumption due to less planes and less routes.

For example, we have calculated that every US$1 increase in fuel price translates to a RM10 million earnings impact on AirAsia. This compares with a RM50 million to RM60 million earnings impact on MAS.

JB-Bangkok service to resume next month
Updated : 13-07-2005
Media : Malay Mail
Story By : Rizalman Hammim



AIRASIA Bhd, which is Southeast Asia¡¦s biggest discount carrier, may only resume its Johor Baru to Bangkok service by next month, said Datuk Mohd Sidik Shaikh Osman, a director of Senai Air Terminal Services Sdn Bhd (SATS).

It was earlier reported that the airline had planned to resume the service by last month.

"They recently told us they had postponed their plans to resume the service to August because they were still waiting for the arrival of their new aircraft," Sidik told Mail Money in a telephone interview.

AirAsia suspended the service in December of last year because of shortage of aircraft. Prior to the suspension, AirAsia had a daily service operating from Senai Airport to Bangkok.

On Feb 21, AirAsia said it may miss its profit forecast for the year ending June 2005 because of delays in plane delivery.

Mohd Sidik said that the local flights being operated by AirAsia from Senai hasn't been disrupted. "They are still on-going, its just the international flights," he said.

The Bangkok to Senai service is the only international flight which AirAsia operates from the Senai Airport (http://www.skyscrapercity.com/showthread.php?t=139824&page=1).

The Senai Airport, which is controlled by Tan Sri Syed Mokhtar Al Bukhary¡¦s SATS, is the only commercial airport in the country, which is operated and managed by a private entity.

The other airports in the country, including the Kuala Lumpur International Airport, are operated and managed by the Government majority-owned Malaysia Airport Holdings Bhd.

AirAsia likely to form new ventures as low-cost sector faces crunch

KUALA LUMPUR, July 17 (AFP) - Asia's dominant low-cost carrier AirAsia is likely to form new ventures in the region with China and India probable targets as high fuel prices force the industry to consolidate, analysts say.

Industry experts are tipping a shake-out among budget airlines, which after mushrooming in recent years are now struggling to cope with spiralling costs as well as intense competition and firmer aircraft leasing rates.

Malaysia-based AirAsia's chief executive Tony Fernandes denied suggestions the carrier is on the prowl for struggling airlines in the region, but confirmed he is on the lookout for new business opportunities.

"There is nothing on paper ... but many people have approached us," said Fernandes, an ebullient former music industry executive. "If there is a potential, we will consider it," he told AFP.

AirAsia, which launched in 2001 with just two aircraft, has become the most profitable player in the sector, and been imitated by startled national carriers as well as a host of new low-cost entrants in Southeast Asia and India.

It is now Southeast Asia's biggest low-cost carrier in terms of fleet size and derives much of its business within Malaysia. It also operates in Thailand, Indonesia, the Philippines and China.

In a sign of its ambitions, earlier this year it ordered 100 Airbus A320 aircraft which will completely replace its current fleet of 28 single-aisle Boeing 737-300s.

Fernandes said there could be a wave of consolidation in the sector as the younger operators face up to reality.

"Under the new tough environment, the aviation business is a hard business. I think all three budget carriers in Singapore are struggling badly," he said.

"A lot of guys want to become British tycoon Richard Branson," he said, referring to the doyenne of low-cost operators who founded the Virgin brand.

Valuair and Jetstar Asia, two discount airlines based in Singapore, recently announced they were in talks that could lead to an alliance or merger, but abandoned the negotiations after just two weeks.

The contacts between the carriers, who compete with Tiger Airways which is 49-percent owned by Singapore Airlines, were seen as another sign that the industry could be set for a shake-out after three years of rapid growth.

Peter Harbison, head of the Sydney-based Centre for Asia Pacific Aviation, said AirAsia may respond by rolling out franchise operations across the region modelled on its successful Thai offshoot.

Thai AirAsia is a subsidiary of the Malaysia-based parent firm which holds a 49 percent stake while Thailand's Shin Corp. -- the family company of Thai Prime Minister Thaksin Shinawatra -- holds 51 percent.

"I believe AirAsia will consider countries that have a liberal aviation policy and a good outbound market coupled with good short-haul routes," Harbison said, naming China, India and the Philippines as possible homes for AirAsia units.

Harbison said, however, that it was unlikely AirAsia would pick up a stake in any of the Singapore-based budget carriers.

"What additional market will they generate?" he asked, adding that "there are other places that are more attractive to AirAsia and which are less competitive."

Fernandes replied "no comment" when asked if the company was in talks with any of the three Singapore carriers, which have been hamstrung by restrictions on routes as well as intense competition and soaring oil prices.

But an official close to AirAsia said the carrier has always been on the lookout for opportunities for expansion within the region, including for access to lucrative routes to Hong Kong and Singapore.

Currently AirAsia is only permitted to fly to the southern Malaysian city of Johor Bahru where passengers transfer to Singapore by road.

"The carrier may set up new joint ventures or invest in existing operations. In our quest for expansion, we do not discount any possibilities. If it is attractive, why not," he told AFP on condition of anonymity.

Am Securities aviation analyst Nigel Foo said AirAsia was likely receiving overtures from a number of Asian governments keen to see joint ventures established in their countries.

"A lot of governments are surely talking to them. It is one sure way to bring investments and tourists into the country. AirAsia is a budget carrier and it is a sure way to boost tourism," he said.

Foo also said AirAsia would target China and India because of their huge population and emerging economies, as well as their wealth of domestic routes and untapped consumer markets.

"Being the first budget carrier in the region and also a proven money-making airline, it will surely be on the look-out for business expansion into the region," he said.

PM Urges Repair Of Malaysia Air's Image Amid Scandal
17 July 2005

KUALA LUMPUR (AP)--Malaysian Prime Minister Abdullah Ahmad Badawi is urging immediate action to restore the image of Malaysia Airlines (3786.KU) following allegations of illegal practices committed by former senior executives, a news report said Sunday.

Abdullah was responding to a police complaint made in May by a director of Malaysian Airline System Bhd. about suspected irregularities in the awarding of a cargo project.

Abdullah said police informed him that investigations are underway, the Sunday Star newspaper reported.

"There are bound to be various reactions from consumers, passengers and the public," Abdullah was quoted as saying. "What's important is that whenever we know of a problem, we must take immediate action to address the problem."

The image of the carrier must be restored to make it among the best airlines around, Abdullah added.

Malaysia Airlines could not be reached Sunday for comment.

Friday, the airline said the cargo project caused it to suffer heavy losses from December 1999 until it was terminated in December 2000.

The New Straits Times newspaper reported Saturday that former Malaysia Airlines Executive Chairman Tajudin Ramli, former Company Secretary Rizana Daud and former MasKargo Vice President Ralph M. Gotz could face questioning as a result of the complaint. MasKargo is a unit of Malaysia Airlines.

The complaint was linked to another lodged by a Malaysian Airlines director in January 2002 alleging irregularities in the airline's dealings with Germany's Advanced Cargo Logistics Gmbh, the Times report said.

Advanced Cargo and Malaysian Airlines agreed in 1999 to develop a European cargo hub around a former military air base in Hahn, Germany. Last September, Advanced Cargo initiated arbitration proceedings against the national carrier, claiming more than $72 million for breach of contract.

HK keen to land AirAsia, says airline
Toh Han Shih
23 July 2005
South China Morning Post

The Hong Kong Airport Authority met with Malaysian budget airline AirAsia yesterday and was keen to grant the low-cost carrier landing rights, according to chief executive Tony Fernandes.

Airport Authority officials met Mr Fernandes at Hong Kong Airport when he arrived yesterday and were scheduled to hold further talks with him at the Grand Hyatt hotel later in the day, he said.

"Now the talks are getting more exciting. This is the first time I see the Hong Kong Airport Authority beginning to understand the needs of low-cost carriers. [It] is making a big effort to come and get AirAsia," said Mr Fernandes, who warned, however, that a deal would not be concluded overnight.

AirAsia was also in talks to secure landing rights in a few south China cities, he added.

In contrast to Mr Fernandes' enthusiastic account of yesterday's discussions, however, the authority sought to downplay the impact of the meetings between the two.

"We welcome all kinds of carriers, including low-cost carriers. They are all important business partners for us. We are constantly talking to various low-cost carriers," a spokeswoman told the South China Morning Post. She declined to comment specifically on AirAsia.

Previous talks between the two parties have been inconclusive and negotiations ended in acrimony in May last year. Instead, AirAsia obtained landing rights in Macau.

Commenting at the time, Mr Fernandes said the authority "was not willing to adjust. They apparently didn't feel the need to go out and get business."

Although talks are now back on, a key hurdle against AirAsia taking up landing rights in Hong Kong is the high user fees charged, said Mr Fernandes, adding that cost will be a key part of his agenda in talks with the authority.

The Airport Authority spokeswoman declined to state whether the airport would readjust its user fees, but pointed out that the airport maintained "user pay" and "value for money" principles in determining charges.

However, Mr Fernandes said airports generally were now reviewing fees, arguing that if it brought in more passengers "why not have three-star hotels along with five-star hotels"? The Hong Kong airport had to deal with different charges for different customers, he added.

There are now seven budget carriers operating at Hong Kong airport, including Valuair and Jetstar Asia. However, budget carriers such as Valuair pay full charges at Hong Kong airport, Mr Fernandes said. "That's why Valuair is in trouble."

"We're not going to go with Valuair as it doesn't fit with our business model. We think Valuair will go with Jetstar Asia. We never made Valuair a binding offer," he added.

Jetstar Asia, the Qantas-owned, Singapore-based budget carrier, is expected to decide soon whether to buy local rival Valuair, which a source said was "weeks away from running out of cash", reported the Financial Times.

AirAsia, meanwhile, has announced a sponsorship deal with English football club Manchester United, which was much better value than Valuair, Mr Fernandes said.

He said AirAsia would pay the club a fee of no more than £2 million ($27.2 million) for the deal.

AirAsia secures sponsorhip with Man U
22 Jul 2005 11:25 PM



AirAsia Bhd has secured a sponsorship deal with Manchester United as the latter's official low fare airline, becoming the first Asian low cost airline to be associated with one of the biggest football clubs in the English Premier League.

In a statement on July 22, AirAsia said the agreement, which includes global advertising and sponsorship activity above and below the line, would start next month and covered its associate companies Thai AirAsia and AWAIR in Indonesia.

An official signing ceremony was held in Hong Kong on July 22 to mark the partnership.

"We are delighted to sign AirAsia. AirAsia is a highly dynamic, innovative and focused organisation that provides a welcome addition to Manchester United's family of global partners," said the club's chief executive, David Gill.

"Signing a deal with such a vibrant organisation as AirAsia, which provides an excellent high value service to a number of Asian markets, is very exciting.

"Their markets are home to a large number of Manchester United supporters and this deal signifies our growing popularity internationally," said the club's commercial director, Andy Anson.

AirAsia chief executive officer Tony Fernandes said: "Manchester United stands for creativity, passion and the best of football.

"The partnership signifies our determination to be the best and have the highest quality product. In the ensuing years, AirAsia will stand for all that Manchester is, in becoming the best quality and value for money airline in the world."

Malaysian Airline to Lease 5 Boeing 737-800s for New Services
Updated : 25-07-2005
Media : Bloomberg
Story By : Chan Tien Hin and Kyunghee Park




(Bloomberg) -- Malaysian Airline System Bhd., the nation's biggest carrier, said it will lease five 737-800 planes made by Boeing Co. as early as in October for use on new destinations in India and China.

The airline will lease three 737-800 planes in October for Fuzhou, Shenzhen and Guilin in China, said Rashid Khan, the airline's senior general manager for sales, in a July 20 interview. The Kuala Lumpur-based airline will lease two more planes next year in the northern hemisphere summer, he said.

``We are pretty much focused on our operations in China and India,'' Khan said. ``Our China and India strategy require us to grow our frequencies into these markets. We need that aircraft range to serve secondary airports.''

The 737-800, which can fly as far as 3,383 nautical miles (6,265 kilometers), is competing with the Airbus SAS A320 model as replacements for 39 Boeing 737-400 planes in Malaysian Airline's fleet. The government-owned airline needs to modernize its aircraft to compete with low-fare airlines like AirAsia Bhd., including replacing its 10 Fokker 50 turboprop planes on domestic routes to Sabah and Sarawak states on Borneo island.

The airline may decide in September between either Boeing's 737-800 and 737-900 models or the Airbus A320 to replace its 737-400s, Khan said.

Overseas Revenue

Revenue from China flights accounts for 15 percent of Malaysian Airline's sales, Khan said. ``We're looking at double-digit growth,'' he said. ``Over the last couple of years, we have seen India and China passenger growth is excess of 15 percent per annum.''

Malaysian Airline will use the leased aircraft to also offer new services to Cochin and Trichi in India and fly to Darwin in Australia in the summer of 2006. It also plans to add more flights to southern China's Kunming to double the weekly flights to six in October.

Malaysian Airline may get as many as 50 planes to replace its 39 Boeing 737-400 aircraft, Germal Singh Khera, the airline's assistant general manager of international affairs said on May 31. It is also considering the proposed A350 aircraft by Airbus and Boeing's 787 model, he said.

The airline has already filed a proposal with the Malaysian government, which would enable it to raise surcharges on passenger and cargo fares if jet fuel costs continue rising, Khan said.

Malaysian Airline shares rose 4.5 percent to 3.72 ringgit on Friday in Kuala Lumpur.

Malaysia's budget carrier AirAsia expects to operate flights to Brunei soon
27 July 2005

KUALA LUMPUR, Malaysia (AP) - AirAsia, Southeast Asia's largest budget carrier, plans to expand by launching flights to the oil-rich sultanate of Brunei soon, an official said Wednesday.

The airline is in the "final stages of discussions" with Brunei authorities for flights between Kuala Lumpur, Malaysia's largest city, and Brunei's capital of Bandar Seri Begawan on Borneo island, a spokeswoman for the Malaysian-based company said on condition of anonymity.

The frequency of flights and when they would likely begin have not been determined, she said.

AirAsia, the region's leading budget airline in fleet size, currently has routes covering Indonesia, Malaysia, Macau, the Philippines and Thailand. It has expressed interest in the past to serve new destinations in countries such as China, India, Laos, Vietnam and Cambodia.

AirAsia is doing really well. Tony Fernandes got featured as a cover story in an edition of Airline Business last year and today he appeared on the front page of Business Times (business daily in Singapore). Really a man of charisma, leading a team of dedicated professionals in a fast-growing airline.

Man U, Real Madrid pick MAS
29 Jul 2005 8:15 PM




The world's most popular football teams, Manchester United and Real Madrid, will be flying Malaysia Airlines back to their home bases within the next 24 hours.

Both teams will be concluding the final leg of their Asian Tours in Tokyo and Bangkok, respectively.

"Both commercial flight arrangements were operationalised and mounted by the charter department by leveraging on Malaysia Airlines' global presence and network," Malaysia Airlines said in a statement on July 29.

"These two charter arrangements further strengthens and reinforces our reputation as a premier charter operator that caters to highly specialised and specific flight arrangements," said Malaysia Airlines assistant general manager charter services, Captain Nik Huzlan.

Malaysia Airlines is the official carrier of the Manchester United Asia Tour 2005. From July 21 to 31, the national airline would have flown the 80-member Red Devils entourage from Manchester to Hong Kong, Beijing, Tokyo and back home.

The entourage had the options of flights on three wide body aircraft types - A330-200, B777-200 and B747-400, which carry the official Manchester United Asia 2005 insignia. This is the second time that Malaysia Airlines has been involved in the Red Devils tour of Asia.

Real Madrid is flying tonight to Madrid from Bangkok on a B777-200 aircraft. This is the second time that Malaysia Airlines has been asked to fly Real Madrid to this part of the world.

I cannot understand certain policies adopted by MAS. For example, they let 10 foreign carriers handle all the international flights from Penang Airport with the exception of Singapore. Examples include Xiamen Airlines(Xiamen), China southern (Guangzhou), Korean Air(Seoul), cathay (hong kong) china airlines (taipei)What is more surprising is that all routes were dropped at the same time. they announced that all international connections out of Penang will be suspended from june 2002 or something cant remember the exact date.I can never understand the rationale of this decision. Take Kota Kinabalu for example. They keep increasing the international connections out of KK when KK doesnt attract that many foreign airlines( 3 the most). This showed that KK does have trouble sustaining international flights as the frequencies of those flights are only 2 or 3 times weekly. I am not confident that MAS can get additional slots in Heathrow easily as Heathrow has very little or no runway capacity left. Those who want to travel to UK might want to take note of this as well. More than 1000 Malaysians were refused entry into the UK in 2003, which is one of the highest in the UK

well, you are right, Australian Airlines just suspended their service to KK due to low demand, but, hey its the only way to go to borneo...by airplane, of course you can take a ship/ferry but we need some fast service (ooops, i am a bit too far am I?) but recently there has been an increase in domestic and international tourist arrivals into sabah and that made the airport burden with almost 4 million passengers, about 1.5 million overcapacity (well, that's what the media reports), there is a need for serious expansion.

MAS Adds Three More Destinations In China
Updated : 01-08-2005
Media : Bernama




Malaysia Airlines (MAS) will fly direct to three more destinations in China by end of this year, Transport Minister Datuk Seri Chan Kong Choy said Monday.

He said the biweekly fights using the Boeing 737-800 aircraft to Fu Zhou would start on Nov 2, Guilin on Nov 3 Nov and Shengzhen on Dec 10.

"With the three additions, MAS will fly direct to 10 destinations in China," he told reporters after receiving a delegation from Guilin led by Guilin mayor Huang Ye Fei at his office here.

This would further enhance relations between Malaysia and Chinain trade and tourism, he added.

He said the ministry would have air talks with China by end of this year to discuss further liberalisation in terms of open sky, both in cargo and passenger traffic.

"We decided to have further negotiations on the present air services with China," he said.

Asked whether MAS will increase the surcharge following the increase in the prices of petrol, diesel and liquefied petroleum gas (LPG) Sunday, Chan said: "They have not come back to us to ask for an increase in surcharge".

malaysia airlines rock! :okay:

Malaysia Airlines carries two premier football teams in 24 hours
29 Jul, 2005




Kuala Lumpur, 29 July 2005: Malaysia Airlines will be flying two of the world’s most popular football teams, Manchester United and Real Madrid back to their home bases within the next 24 hours.

Both commercial flight arrangements were operationalised and mounted by the Charter Department by leveraging on Malaysia Airlines’ global presence and network.

Assistant General Manager Charter Services, Captain Nik Huzlan said, “These two charter arrangements further strengthens and reinforces our reputation as a premier charter operator that caters to highly specialised and specific flight arrangements.

“Requirements for both these charters are customised and tailored to the specific needs of our passengers. For instance, the food and beverage that is prepared and served on board has been done in consultation with the teams’ nutritionists. For inflight comfort, our specially selected cabin crew are trained to ensure the players are assured of their privacy and are well rested upon arrival at their destination.”

For Manchester United Asian Tour 2005, the club appointed Malaysia Airlines as its official carrier. From 21 to 31 July, the national airline has flown the 80-member entourage from Manchester to Hong Kong, Beijing, Tokyo and back home. The entourage was given the privilege to fly on all the three wide body aircraft types namely the A330-200, B777-200 and B747-400. All three aircraft carried the official Manchester United Asia 2005 insignia.

Making its first stop in Hong Kong the Manchester United Asian Tour 2005 insignia was spotted by their fans as the aircraft made its descent to land at the Chek Lap Kok International Airport. As it concludes its final leg of the tour, the team will fly direct from Tokyo to Manchester on 31 July 2005. This is the second time Malaysia Airlines has been involved in the Red Devils’ football circuit in Asia.

Simultaneously top European football club, Real Madrid flew home to Madrid, Spain tonight from Bangkok, Thailand on a Malaysia Airlines B777-200 aircraft. The 13-hour direct flight enabled the team to rest and recuperate on board after an equally hectic football tour in Asia. This is the second time Malaysia Airlines has been asked to fly Real Madrid to this part of the world.

Recently Malaysia Airlines was accorded 5 Star Airline award by United Kingdom’s Skytrax International and has been named World’s Best Cabin Staff for four years in a row from 2001 to 2004.

Malaysian Airline Filled More Seats, Cargo Space in June
Updated : 02-08-2005
Media : Bloomberg
Story By : Chan Tien Hin



(Bloomberg) -- Malaysian Airline System Bhd., the nation's biggest carrier, filled more seats and cargo space in June, its fifth straight monthly gain, as the company expanded its overseas routes.

The Kuala Lumpur-based airline filled 69 percent of its combined passenger and cargo capacity during the month, compared with 63.1 percent a year earlier, according to operating statistics posted on its Web site today. In May, it filled 65.7 percent of total capacity, up from 58.9 percent a year earlier.

The state-controlled carrier expanded to China and India to meet competition from low-fare carriers, adding services to the southwestern Chinese city of Kunming on Jan. 15 and Kolkata, India, on Jan. 28. It's also spending about 700 million ringgit ($187 million) to refurbish its first- and business-class cabins, to compete with Singapore Airlines Ltd. and Hong Kong's Cathay Pacific Airways Ltd.

The carrier increased its seat capacity by 4.3 percent in June and carried 5.7 percent more passengers on its domestic and international flights from a year earlier.

Malaysian Airline filled 72.7 percent of its total passenger seats in June from 65.2 percent a year earlier.

The airline packed 71.9 percent of available seats on its international routes, 8.6 percentage points more than a year earlier. It filled 79.8 percent of seats on its domestic routes, where it competes with AirAsia Bhd., Southeast Asia's biggest low-fare carrier, a drop of 2.7 percentage points.

Malaysian Airline filled 64 percent of its cargo capacity in June compared with 60.4 percent a year earlier, it said.

Shares of Malaysian Air, which have dropped 15 percent this year, fell 0.53 percent to 3.74 ringgit yesterday.

AirAsia secures loan to pay for new aircraft
Updated : 04-08-2005
Media : Business Times
Story By : ANNA MARIA SAMSUDIN



BUDGET airline AirAsia Bhd has secured close to a US$1 billion (US$1 = RM3.75) loan to pay for 30 new A320 aircraft to be delivered within two years, the first batch of Airbus planes which it ordered.

A source told Business Times that the deal between the discount carrier and the un-named international lender has already been finalised and is currently awaiting approval from Bank Negara Malaysia.

Under the deal, AirAsia, which has already paid a 15 per cent deposit for the aircraft, will be required to settle the loan within 12 years.

กงI think AirAsia has made a wise decision on this deal. This is indeed a good time to take up loans in US dollars,กจ the source said.

AirAsia is planning to buy 60 new A320s under its fleet expansion plan. It is scheduled to take delivery of the first two A320s in December this year, followed by one aircraft delivery in subsequent months.

It was estimated that the entire fleet expansion exercise would cost RM14.4 billion.

Chief executive officer Datuk Tony Fernandes, in an earlier report, explained that AirAsia prefers to pay for the new aircraft with loans instead of from its initial public offering (IPO) proceeds because it is generating enough cash from operations to pay the debt.

He also disclosed that among the international lenders that the airline was talking to were Royal Bank of Scotland, Citigroup Inc, HSBC Holdings plc, Deutsche Bank AG and Franceกฆs Calyon.

AirAsia had earlier announced the possibility of missing its RM147.4 million profit forecast for the financial year ended June 30 2005 due to the shortage of aircraft to support its route expansion in Malaysia, Thailand, Indonesia, the Philippines and China.

For the nine months ended March 31 2005, the airline registered a RM95.14 million net profit on the back of RM466.74 million revenue.

The airline cited higher fuel costs and the start-up cost of its Indonesian arm PT AWAIR as the primary factors that affected its performance in the third quarter.

Credit Suisse First Boston said AirAsia may miss its profit target by 17 per cent, or RM25 million, while Macquarie Securities Ltd analyst Paul Dewberry said the airline may miss its forecast by 3.4 per cent or RM5 million.

Noodle attack delays flight

ACHADTHAYA CHUENNIRAN

Phuket _ An angry passenger threw a cup of hot noodles at an air hostess after being asked not to use her mobile phone during takeoff from Bangkok yesterday.

The mid-air quarrel resulted in 200 passengers booked on the plane's return flight being kept waiting for nearly four hours at Phuket airport.

An airport official said the quarrel erupted on AirAsia flight FD3015, from Bangkok to Phuket, after a woman passenger tried to make a call on her mobile phone during takeoff.

The flight attendant asked her to turn off the phone but the passenger refused. The attendant insisted she not make the call as it was against flight regulations.

As the flight attendant turned her back to leave, the passenger threw a hot cup of noodles at her, hitting her in the back, according to the airport official.

The passenger later claimed the flight attendant called her names although she could not produce any eyewitnesses.

When the plane landed in Phuket, police were informed and the captain, flight attendant and passenger were told to report to police.

Meanwhile, 200 passengers were waiting to board the plane to return to Bangkok at the scheduled departure time of 5.45pm.

An irate passenger called the Bangkok Post at 8.15pm complaining they had not been informed of the reason for the delay.

``Some of us have overseas connecting flights to make, some have emergencies waiting at home and they told us nothing.

``Instead, they ask for police guards to ensure peace among us,'' said Chanthawipa Apisuk, secretary-general of Empower Foundation, an organisation working to protect the rights of sex workers. ``Our request for an explanation met with smiles from the ground crew and nothing else.''

AirAsia airport staff declined to comment.

The flight finally left at 9.15pm.

What kind of laws are there in Malaysia and Thailand regarding air rage? It seems Western countries are becoming less tolerant of these kinds of incidents now that everyone's a bit more edgy about terrorism.

Malaysian Airline chief exits, firm dives into red

KUALA LUMPUR, Aug 22 (Reuters) - Malaysian Airline System's managing director took retirement a little more than a year into the job on Monday, while Malaysia's flagship carrier said high fuel prices had dragged it to a first-quarter loss.

Managing Director Ahmad Fuaad Dahlan had taken the helm in April 2004 as part of a new generation of managers installed at several state-linked firms under a government efficiency drive.

Malaysian Airlines did not give Fuaad's motive for retiring so soon into his post. He is 55, according to an airline statement, which also said the chairman would act as managing director until the airline finds a successor, which it expected to be within the next six months.

"Fuaad Dahlan wanted to retire. The board of directors considered and granted his request. He submitted the letter last week," MAS Chairman Munir Majid told reporters, declining to elaborate.

Minutes after the surprise announcement, the airline reported a heavy first-quarter net loss of 280.7 million ringgit ($74.5 million) for the three months ended June 30, compared with a profit of 26.6 million ringgit a year earlier.

The airline had spent 1.1 billion ringgit on fuel during the quarter, 58 percent higher than the 706 million a year ago. Only about 60 percent of its fuel needs are hedged, analysts have said.

"We have not had an encouraging start to the year," Munir said. "Fuel is not the only reason for the losses. We acknowledged that we have not been profitable in operating the airline business."

FIVE-YEAR PLAN

Following the loss, the airline announced a plan to contain costs, boost revenues, return to profit and compete more effectively with other international carriers within five years.

It aims to earn 1 billion ringgit in net profit within five years, incoming Executive Director Tengku Azmil Zahruddin Raja Abdul Aziz told reporters in a briefing.

The five-year plan includes improving revenues by enhancing flight yields and networks as well as driving down costs by improving procurement methods and fuel conservation plans.

"In previous years, profits have come from one-off gains," said Munir. "We know the gaps in our business, and we acknowledge that we have to address these issues to improve and return MAS to a strong and profitable airline. We have a clear plan to address the gaps."

MAS said demand for travel was strong despite fuel surcharges on airline tickets, but it warned about high fuel prices and uncertainties over security in developed countries. Competition for regional markets is intense, it added.

Operating revenue jumped 15.6 percent in the first quarter.

The airline's share price ended down 0.6 percent at 3.38 ringgit, dipping 2 sen in the final few minutes of trade after news of Fuaad's exit. The results followed the close.

The stock has lost almost a quarter of its value this year, underperforming local budget carrier AirAsia Bhd by 20 percent and Singapore Airlines Ltd , one of Asia's most highly rated full-service airlines, by 24 percent.

Separately, state asset agency Khazanah Nasional, which controls MAS with a 69 percent stake, said in a separate statement that Tengku Azmil will be replaced at the airline's parent Penerbangan Malaysia in his capacity as CEO by Nasution Mohamed. ($1 = 3.7680 ringgit)

AirAsia bullish on profits despite high oil prices: official

KUALA LUMPUR, Aug 23 (AFP) - Southeast Asia's most profitable low-cost carrier AirAsia said Tuesday that oil prices are expected to climb higher but are unlikely to push the company into the red.

"I have a gut feeling that fuel prices are going to go higher, but we are ready for it," chief executive officer Tony Fernandes said, adding that 75 percent of AirAsia's fuel usage has been hedged up to June 2006.

AirAsia said earlier this month that it may consider increasing fares to compensate for rising oil prices.

Fernandes said that despite the difficult conditions, AirAsia hopes to maintain its track record by not incurring a loss in results for the fourth quarter to June which are to be announced on Friday.

"We have not incurred any loss before, so we hope to continue the process," he told reporters.

Fernandes said rising oil prices were a blessing in disguise, having affected AirAsia's competitors more severely and keeping new players from entering the crowded low-cost carrier market.

AirAsia is reportedly tipped to post net profits of 127-143 million ringgit (34-38 million dollars) for the year ended June, lower than the 159.88 million profit it projected during its initial public offering last November.

Analysts attributed the expected lower profit to a delay in aircraft deployment and high oil prices.

For the nine months to March, AirAsia posted a net profit of 95.52 million ringgit on sales of 466.74 million dollars.

On Monday national carrier Malaysia Airlines dumped its managing director Ahmad Fuaad Dahalan after announcing a 280.66 million ringgit (74 million dollar) net loss in the three months to June, from a profit of 26.58 million a year ago due to soaring oil prices.

I cannot understand certain policies adopted by MAS. For example, they let 10 foreign carriers handle all the international flights from Penang Airport with the exception of Singapore.
MAS has no prerogative and authority at all in determining the number of foreign carriers flying into/from Penang (or any other cities in Malaysia for that matter). thus, when u said 'they let' is misleading. all is governed by Jbtn Penerbangan Awam or DCA.

as with SQ, that is actually in line with the old agreement that MAS/SIA has after the split.. that's y u do not c any other airlines plying KUL-SIN. the old policies also affect SQ operations into any other cities in Malaysia (except for the new MOU that they had with SQ lil brother Silk Air of flying into KCH and Kota Kinabalu..).

Malaysia's AirAsia says net profit 30 percent below target
26 August 2005

KUALA LUMPUR, Malaysia (AP) - Malaysia's budget carrier AirAsia said Friday its net profit for the fiscal year ending in June fell 30 percent below target, largely dragged down by soaring fuel costs.

AirAsia, releasing its first full-year results as a listed company, said it posted a net profit of 111.6 million ringgit (US$29.7 million, euro24.7 million), well below the 160 million ringgit (US$42.44 million; euro35.36 million) that it predicted during its initial share offer last year.

It blamed the poor full-year results on tight supply of Boeing 737-300 planes available for lease, soaring fuel prices and continued losses at its 49 percent-owned Thai AirAsia associate.

In the final quarter to June alone, it said net profit dipped 60 percent from the previous three months to 16.1 million ringgit (US$4.3 million, euro3.5 million) as fuel costs jumped 18 percent, staff costs rose 20 percent and major overhaul costs more than doubled.

"The impact of jet fuel and aircraft shortages were always going to affect us," Timothy Ross, a director, said in a telephone conference call with journalists.

Also, AirAsia had expected to deploy 26 planes during the year, but only had 21.

AirAsia, the region's biggest low-cost carrier in fleet size and its only publicly listed one, said it was cautiously optimistic about prospects in the current year despite high global oil prices.

"The cost of jet fuel remains a real concern ... the board does not anticipate fuel prices falling significantly and is of the view that they will remain at high levels in the short term," it said in a statement.

Still, AirAsia put in a better performance than national carrier Malaysia Airline, which suffered a 280.7 million ringgit (US$73.9 million; euro60.8 million) loss in the same quarter due to surges in fuel and other operating costs.

AirAsia is also upbeat about the current financial year with all of its fuel needs fully hedged for the first six months, while half the requirements for the second half are covered.

Chief Executive Tony Fernandes, also participating in the conference call, said he believes that AirAsia can hold off any increase in its fuel surcharges for at least six months.

"If we have to we will. We feel we have a lot more capacity to increase. But we probably won't for the next six months," Fernandes said.

AirAsia implemented fuel surcharges for the first time on July 14 of 5 ringgit (US$1.32; euro1.10) for one-way for flights within West Malaysia, 15 ringgit (US$4; euro3.3) for flights from East to West Malaysia, and 25 ringgit (US$6.6; euro5.5) for overseas routes.

Monday August 29, 2005
Malaysian, Not Foreigner To Run Malaysian Airlines-Report

KUALA LUMPUR (AP)--The Malaysian government has shortlisted several candidates with experience in multinational companies overseas to head flag carrier Malaysian Airline System Bhd. (3786.KU), which was stunned by a massive first-quarter loss that led to the removal of the company's managing director, a news report said Monday.

A decision on replacing Ahmad Fuaad Dahlan, who was apparently forced out on Aug. 22, will be made much sooner than the six-month deadline set by the airline, the New Straits Times reported.

MAS officials were not immediately available for comment.

The state-owned airline has "identified several Malaysians with the appropriate track record on turning around companies and improving operations," the New Straits Times reported.

There was some speculation earlier that Ahmad Fuaad would be replaced by a foreigner, but sources said that was not to be, the newspaper reported.

"From the outset ... the MAS board has been scouting around for a Malaysian to be the CEO and an expatriate had not been considered as reported," the sources told the newspaper.

However, some key management positions down the line could be filled by expatriates, the sources said.

The sources said the shortlisted candidates have "experience in top positions in multinationals overseas and the necessary skills to stem the slide of one of the country's best known brands."

The carrier reported last Monday a loss of MYR280.7 million in the quarter to June, mainly due to soaring fuel costs. Ahmad Fuaad went into retirement the same day and the Malaysian carrier, which owns Southeast Asia's biggest passenger plane fleet of some 100 aircraft, announced top management changes, saying it plans to revamp its operations to generate MYR1 billion in profit after five years.

MAS is currently run by a committee headed by chairman Munir Majid and newly appointed executive director Azmil Zahruddin Raja Abdul Aziz.

In an interview with Dow Jones Newswires Friday, Munir said MAS is prepared to take tough measures to survive, including laying off staff and lowering wages.

But over the short term, the company will aim to cut fuel use by 10% and take a major "review of everything" ranging from aircraft purchases to network expansion to ensure cost-competitiveness, he said.

-Edited by Costas Paris

Malaysia Airlines really impressed me when I flew them from Cairo to KL, and KL to Cairns. The service was great, and hospitality was generous too. The only complaint I would say is there wasn't enough legroom for me.

Malaysian Air Cargo Arm Hikes Fuel Surcharge By Up To 20%

KUALA LUMPUR (Dow Jones)--Malaysian Airline System Bhd.'s (3786.KU) cargo unit, Maskargo, will hike fuel surcharges by up to 20% from Sept. 8 due to higher fuel prices, the airline said on its Web site.

The hike in surcharges is the fifth this year, and follows the airline's MYR280.7 million loss in the three months to June 30, its worst quarterly performance in four years. Malaysian Airline blamed a jump in operating and fuel costs for the poor results.

Surcharges for cargo to the Americas, Middle East, Africa, and Europe will rise 11% to MYR1.90 a kilogram, the airline said.

Surcharges for cargo to Australia, New Zealand and the Indian subcontinent will increase 20% to MYR1.20 a kilogram.

For cargo to Asian destinations, the surcharge will rise 13% to 90 sen a kilogram while that for the transportation of fruit and vegetables to Europe, the Middle East, Africa and Asia will climb 11% to 72 sen a kilogram, Malaysian Airline said.

Malaysian Airline last raised fuel surcharges for cargo on July 15.

Malaysian airline is still one of the best in d world when talkin about service. impressive staffs too!

Malaysia's AirAsia: July Passenger Traffic Up 35% On Yr
2 September 2005

KUALA LUMPUR (Dow Jones)--Malaysia's AirAsia Bhd. (5099.KU) Friday said passenger traffic in July grew a robust 35% on year due to contributions from its newly-acquired Indonesian associate.

AirAsia's 49%-owned PT AWAir associate carried 56,256 passengers in July, more than seven months after the Malaysian low-cost carrier bought a stake in the Indonesian airline.

AirAsia is Southeast Asia's biggest low-cost carrier in terms of fleet size, and its only publicly-listed one.

The airline's Malaysian operations showed a 25% on-year rise in passengers to 395,667 in July. Its 49%-owned Thai AirAsia associate reported a 16% rise in traffic to 148,953 passengers that month, AirAsia said in an e-mailed statement.

Total passenger traffic in July for the entire company stood at 600,876, AirAsia said.

The strong traffic rise isn't surprising as AirAsia more than doubled the number of passengers it carried in the year ended June 30 to 6.29 million, analysts said.

Malaysia's AirAsia secures loans to buy 33 Airbus A320 aircraft: official

KUALA LUMPUR, Sept 6 (AFP) - Southeast Asia's leading low-cost carrier AirAsia, the single largest buyer of the A320-200 in the Asia Pacific region, said Tuesday it has secured loans at attractive rates to finance 33 of the 60 aircraft it has ordered from Europe's Airbus.

"We secured attractive rates for the 33 aircraft that will delivered to us in the next two years starting December 2005," Kamarudin Meranum, AirAsia's executive director told AFP. He declined to elaborate.

The budget airline has ordered 60 Airbus A320s with an option for another 40 aircraft which will completely replace its current fleet of 28 single-aisle, 148-seat Boeing 737-300s.

Kamarudin said the financing of the remaining 27 aircraft to be delivered in 2008 and 2009 will be confirmed at the end of next year.

"All loans are for a tenure of 12 years starting on the delivery date of each aircraft," AirAsia said.

AirAsia last month said its inaugural annual net profit was 30.2 percent lower than forecast due to higher fuel prices and an aircraft shortage.

It posted a net profit for the year to June of 111.63 million ringgit (29.6 million dollars), well below the 159.9 million ringgit set in its initial public offering (IPO) prospectus of October 2004.

AirAsia was launched as a budget carrier in December 2001 with just two aircraft and has since become a significant regional player, with its business model now imitated by startled national carriers along with a host of new low-cost entrants.

Malaysia's AirAsia says new Airbus fleet will cut cost in long-run
7 September 2005

KUALA LUMPUR, Malaysia (AP) - The purchase of 100 fuel-efficient Airbus A320s will help cut costs of AirAsia, Southeast Asia's largest budget carrier, as it strives to keep fares low amid soaring oil prices, the company's chief said Wednesday.

AirAsia chief executive Tony Fernandes said it is more cost-effective for the company to buy, rather than lease, its planes. The financial strain is minimum because it has hedged against increases in interest rates for the next 15 years, he said.

The Malaysian-based AirAsia, which plans to phase out its current Boeing 737-300 fleet, signed an order in March to buy 60 Airbus A320-200 aircraft for 14.4 billion ringgit (US$3.8 billion; euro3.16 billion), and the right to buy another 40 of the same aircraft.

"Buying Airbus is actually a huge advantage for us ... it uses a lot less fuel. We have huge cost savings with this new technology," he said in a speech at a global leadership conference here.

Soaring fuel costs and tight supply of Boeing 737-300 planes available for lease had dragged down earnings in AirAsia, which last month released its first full-year results as a publicly listed company.

The carrier posted a net profit of 111.6 million ringgit (US$29.7 million, euro24.7 million), 30 percent below the 160 million ringgit that it predicted during its initial share offer last year.

Fernandes said that by buying planes, the airline's cash-flow will increase. He said the company has an "amazing financial scheme, plus we have taken interest rate swaps for the next 15 years."

"Even though the swap rate is higher than the borrowing rates at the moment, we'd rather pay a premium and know that our risk is dealt with," he said.

Fernandes said the airline remains focused on the Southeast Asian market and regional expansion is on track, although Singapore remains difficult to enter.

"The goal of AirAsia is to create an ASEAN brand ... if we get it right, we got a market of 500 million people," he added.

AirAsia currently serves routes in Malaysia, Indonesia, Thailand, the Philippines and Macau. Its joint venture with Thailand's Shin Corp., Thai AirAsia, began flying between Bangkok and Xiamen, China, last year, making it the first foreign low-cost carrier to fly to mainland China.

It is planning flights to Laos, Vietnam and Cambodia by mid-2006.

Malaysia Airlines enhances safety standards
Updated : 14-09-2005
Media : Business Times
Story By : ROZIANA HAMSAWI


http://www.malaysiaairlines.com/main/images/home1.jpg (http://www.masworldwide.com/welcome.asp?user_name=)


MALAYSIA Airlines will keep investing time and money to enhance its safety standards despite no annual budget for such a purpose.

Executive director Tengku Azmil Zahruddin Raja Abdul Aziz said such investment could not be measured in ringgit and sen as the integral part of the aviation business is safety.

We acknowledge that the priority must always be given to safety before profits, he said.

Tengku Azmil said over the years, the airline has invested a substantial amount of resources in terms of finances, time and manpower in flight safety programmes.

He said this at the third International Civil Aviation Organisation/International Air Transport Association/Line Operations Safety Audit (LOSA)/Threat and Error Management Conference in Kuala Lumpur yesterday.

Asked how much has been spent to date to enhance the airlines safety standard, Tengku Azmil said whatever the cost was is not important.

We do not look at the money spent ... prevention and ways to reduce mishaps are more important. There is no annual budget for this purpose ... it is all in our operations, he said.

Civil Aviation Malaysia director general Datuk Kok Soo Choo said the department requires that Malaysia Airlines implements continuous safety programmes.

He said the investments have been worth every single sen as ¡§the safety record of Malaysia Airlines is impeccable.

Kok was present yesterday in place of Transport Minister Datuk Chan Kong Choy who was scheduled to officiate the conference.

Tengku Zamil said the airlines flight operations division last year engaged the LOSA Collaborative of the University of Texas to conduct its first line operations safety audit.

¡§The overall results showed that we fared favourably when benchmarked against six LOSA archive comparison airlines in the Asia Pacific region, he said.

Excluding some other costs, about RM800,000 was spent on this first LOSA programme.

Globally, 25 airlines have conducted LOSA, a methodology that uses trained observers riding in cockpit jump seats to evaluate several aspects of crew performance.

In-flight observers record the various threats encountered by aircrew, the types of errors committed, and most importantly, they record how flight crews manage these situations to maintain safety.

These combined data provide the airline conducting the LOSA with a diagnostic snapshot of safety strengths and weaknesses in normal flight operations.

Business Times - 14 Sep 2005

AirAsia says sponsorship deal with Man United paying off

KUALA LUMPUR - AirAsia, Southeast Asia's pioneering low-cost carrier, said on Wednesday its recent sponsorship deal with Manchester United is already proving its worth in attracting business.

'Its already paying off. The trend is there. We are now seeing customers from Europe who have changed their holiday plans to come to Malaysia instead,' Kamarudin Meranun, executive director with AirAsia, told AFP.

AirAsia signed its one-year, low-fare carrier sponsorship deal with Sir Alex Ferguson's team in July in Hong Kong during the Red Devils' Asian Tour.

MR Kamarudin declined to reveal the cost of the deal which comes with an additional one-year option but said it was a 'win-win agreement' for both AirAsia and Manchester United.

'The sponsorship deal gives AirAsia greater visibility in the global market. United's games are beamed all over the world, including to destinations that we fly and plan to fly like China.

'So when a game is played at Old Trafford, AirAsia's logo and name will be on the electronic (advertising) board and shown across the world to millions of people,' he said.

The agreement, among other things, allows AirAsia to paint its aircraft in the colours of the world's best supported team and sell United's merchandise on its flights.

'It is a partnership to build awareness and encourage potential tourists from Europe to (come to) Asia and fly AirAsia,' Mr Kamarudin said, adding: 'We are confident it will bolster our bottomline.'

Mr Kamarudin said AirAsia is also seeking an alliance with an international carrier, possibly Malaysian Airlines, to fly in European tourists.

'(These) passengers can then use AirAsia to fly local and regional routes. We hope we can work with national carrier Malaysia Airlines,' he said.

Earlier this year the possibility of such a tie-up with Malaysia Airlines was raised by both government and company officials in the face of soaring fuel bills.

AirAsia was the first regional low-cost carrier. It now operates a fleet of 30 Boeing 737-300s and flies to 52 destinations in Malaysia and six internationally. It plans new routes to Brunei, Cambodia, China and Vietnam in the near future.

In the financial year to June, AirAsia carried 4.4 million passengers, up 55 per cent. It recently ordered 100 Airbus A320 aircraft which will completely replace its current fleet of Boeing aircraft.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

MAS in tie-up with National Geographic
Updated : 15-09-2005
Media : The Star



http://www.looedivers.com/images/padi/national_geographic_logo.JPG



MALAYSIA Airlines (MAS) is collaborating with National Geographic Channel (NGC) to present a series of global theme week documentaries to raise awareness among television viewers of MAS as one of the world's top airlines.

MAS is the presenting sponsor of Megacities Week produced by Base Productions and which will be aired on the National Geographic Channel from Sept 18 to 24.

MAS advertising, promotions and branding assistant general manager Yazid Mohamed said this at a press launch in Kuala Lumpur yesterday.

The partnership is aimed at raising awareness of the global destinations that MAS serves and to give viewers an insight into the world's modern metropolises.

Yazid said the partnership is in synergy of both brands.

Our relationship with NGC has been good as we have collaborated for the past three to four years. The content of programmes produced by NGC is excellent and this is what MAS wants, he said.

He added that the partnership with NGC is part of MAS' communication strategy.

MAS flies to over 110 destinations across six continents.

Through these documentaries, viewers are informed of some of the destinations featured and the uniqueness of the destinations, he said.

Yazid declined to reveal the sponsorship value but said it was a significant amount¡¨.

In Asia, MAS sponsorship will be boosted through an integrated marketing communications involving on-ground promotions, radio contests in Kuala Lumpur, Hong Kong and Singapore, and print advertising in Asia.

MAS is also supporting a global contest during this period. The grand prize winner will win a pair of return business class air tickets to one of the megacities destinations served by the airline.

AirAsia Sees Traffic Up, To Exercise Plane Options
Updated : 15-09-2005
Media : Dow Jones
Story By : Rod Stone



AMSTERDAM (Dow Jones)--Malaysia-based budget airline AirAsia Berhad (5099.KU) expects to see a strong rise in passenger traffic this year and intends to exercise all options it has for new Airbus (ABI.YY) planes, its chief executive said Thursday.

CEO Tony Fernandes said in an interview with Dow Jones Newswires that the airline is on course to carry over 8 million passengers in the financial year through June 30, 2006. In the previous fiscal year it carried about 6.3 million passengers, Fernandes said.

AirAsia now operates 53 routes around Asia and is likely to add about 10 over the next year, Fernandes said. He said the main focus at present is on increasing frequency on existing routes.

For its expansion, AirAsia has ordered 60 Airbus A320 planes and has options on another 40 of the short-to-medium haul aircraft. We'll exercise all of these, Fernandes said, adding that two of the options have already been converted to firm orders.

He said the current Airbus order will meet the airline's requirements for the next six to seven years.

The first two A320s are due to be delivered in December. The new Airbus planes will eventually replace the carrier's older Boeing (BA) 737 planes.

Fernandes was speaking on the sidelines of the World Low Cost Airlines Congress in Amsterdam.

MAS Ten's Rugby Invitation Championship 2005 (MASTRIC 2005)
22 Sep, 2005



Kelana Jaya, 22 September 2005. Malaysia Airlines Rugby Club, in collaboration with Kelab Sukan MAS (KSM) and the Melaka State Government, is organizing MASTRIC 2005 in Malacca.

This is the third year the 10-A Side rugby tournament is being organised, after the first two that were held in Langkawi and Kuantan during 2002 and 2003 respectively.

The two-day tournament to be held on 1st and 2nd October 2005 at Stadium Hang Tuah, Malacca will be declared open by Malaysia Airlines’ Chairman Dato' Dr Mohamed Munir Bin Abdul Majid.

A total of 12 teams from 6 countries will battle for the Championship title of this tournament.

The participating teams are:

1. Air New Zealand TSAR, New Zealand
2. Air New Zealand Jumbo, New Zealand
3. Servisair GlobeGround, Manchester, United Kingdom
4. Nordam Europe, Wales
5. Bliss Fox, Sydney Australia
6. Air Caraibe Atlantique, France
7. Nomads, Sydney, Australia
8. Transmile, Malaysia
9. MAS Cougers ‘A’, Malaysia Airlines.
10. MAS Cougers ‘B’, Malaysia Airlines.
11. Melaka High School Old Boy Malaysia.
12. Babarians

Malaysia Airlines and Canterbury Asia Sdn Bhd are the official sponsors of this tournament.

Entrance to all games at Stadium Hang Tuah is FREE. Spectators for the two-day event also stand to win airline tickets to domestic and regional Malaysia Airlines’ destinations. In addition there will be other prizes also up for grabs for spectators.

In announcing the details of the tournament, Organising Chairman Encik Noorazhar Abdul Halim said, “We selected Malacca as the venue for MASTRIC 2005 considering its tourism and historic attractions. These attractions will appeal to the tournament participants and supporters from overseas, thus promoting Malaysia as a choice holiday destination”.

“The event is also yet another active support of Malaysia Airlines towards sports tourism in the country and to also provide a platform to promote social rugby tournament among the international airline fraternity as well as amongst Malaysians,” he added.

MAS & AirAsia To Reduce Scheduled Capacity In Domestic Sector
Updated : 26-09-2005
Media : Bernama


KUALA LUMPUR, Sept 26 (Bernama) -- Malaysia Airlines (MAS) and AirAsia Bhd will jointly reduce their scheduled capacity in the domestic sector to avoid excess capacity and wastage of resources during a period of low demand.

In what is to be the first move towards a healthier cooperation between the country's premier and low-fare airlines, both have for the first time synergised to address low traffic demand.

The move will be during the Ramadan period, covering two weeks from Oct 1.

It is intended to provide better efficiencies and coordination between MAS and AirAsia to combat spiralling jet fuel prices while enabling them to achieve each other's objectives.

'As the owner of the domestic business operated by MAS, we are pleased to see a joint coordinated effort between the country's two national airlines in a move to conserve resources and energy during a period of exceptional low demand,' said Nasution Mohamed, managing director of Penerbangan Malaysia Bhd (PMB), in a statement, Monday.

'The joint exercise to reduce capacity and promote a better utilisation of assets during Ramadan, is a welcome move that would benefit Malaysia's aviation industry, especially during such turbulent times as faced by all airlines in the world,' said Nasution who is also chief executive officer (CEO) of PMB.

MAS' executive director Tengku Azmil Zahruddin Raja Abdul Aziz said both airlines have agreed to a joint effort to address the low demand during Ramadan period while conserving fuel resources.

'Despite the limited cutback on MAS and AirAsia domestic routes, we believe that the move will not materially affect the convenience of passengers carried on both airlines,' he said.

AirAsia's group CEO, Datuk Tony Fernandes, hoped that the move was a start for greater cooperation which would mutually benefit both airlines in reaching their respective objectives.

'This is regarded as a historic day for our country's aviation industry, and one of the happiest moments for AirAsia since our inception,' he said.

'We applaud PMB and MAS for taking the first step towards a healthy and responsible cooperation to resolve excess capacity and unproductive competition during a period of exceptionally low traffic demand,' he added.

10 October 2005

Malaysia Airlines hikes fuel surcharge for international flights

KUALA LUMPUR : Malaysia Airlines, which has been hard-hit by record oil prices, said Monday that it will raise its fuel surcharge by up to 12.3 percent, in its second hike in less than a month.

"With fuel prices continuing to escalate, Malaysia Airlines is compelled to revise the fuel surcharge rates with effect from October 15 2005," it said in statement.

The national carrier said it will raise its fuel surcharge to 137 ringgit (36 dollars) or 12.3 percent, from 122 ringgit for travel between Malaysia and Europe, Australia and New Zealand, North and South America, the Middle East and Africa.

The fuel surcharge for travel between Malaysia and Asia would be increased to 68 ringgit, or 11.5 percent, from 61 ringgit.

Surcharges on tickets sold outside Malaysia and on domestic routes will remain unchanged, it said.

"Malaysia Airlines continues to monitor the fuel price situation and will take further measures to review the surcharge if necessary," it said.

The airline recently announced one of its worst ever quarterly losses at 280.66 million ringgit in the three months to June after a profit of 26.58 million ringgit a year earlier.

After posting the disappointing result quarterly result, Malaysia Airlines announced an ambitious five-year plan to boost profits by up to 1.0 billion ringgit, which included a management shake up.

It last raised its fuel surcharge on September 21. - AFP /ls

Copyright © 2005 Agence France Presse. All rights reserved.

3rd Oct 2005
Press Release
TO BALI, WITH LOVE

Kuala Lumpur – AirAsia – Asia’s leading low fare airline is giving away 5000 free seats* to Bali from 10 th – 14 th Oct, 2005.

“ Bali is one of destinations that bring AirAsia to where we are today. This is small contribution from us to give back to the innocent Balinese whose lives were affected in the recent bombing. We are still maintaining our 2 daily flights from Kuala Lumpur to Bali and we certainly do not intend to cut them despite the incident. The sentiment is made up by our desire to help up our friendly and peace loving Balinese to get back on her feet again. We feel many Malaysians share the same sentiment and we hope our fellow Malaysians will come forward and lend a helping hand too.”
- Dato’ Tony Fernandes, Group CEO, AirAsia Berhad

The 5000 free seats are available for booking at www.airasia.com or via mobile at mobile.airasia.com. The booking period is from October 10 th to 14 th 2005. Traveling date is from October 17 th to December 31 st 2005. 3 days advance booking is required.

Asian solidarity

http://www.brandmalaysia.com/movabletype/archives/airasia-baliwithlove.jpg

AirAsia says fuel costs hedged to June 2006

KUALA LUMPUR, Oct 25 (AFP) - Budget carrier AirAsia, which recently introduced surcharges to combat spiralling fuel costs, said it has hedged all its fuel requirements for the second half of the financial year to June 2006.

"Prior to this transaction, AirAsia had 50 percent of its second half fuel requirement hedged. With the new fuel-hedge in place, AirAsias fuel requirement for (financial 2006) is effectively fully hedged," it said in a statement late Monday.

AirAsia said it has hedged its fuel costs based on a price of 48 dollars per barrel for West Texas Intermediate (WTI) crude oil, the benchmark US product, if market prices stay within a band of 48-60 dollars.

"In the event WTI exceeds 60 dollars per barrel, AirAsia will receive a 12 dollars per barrel discount to the WTI market price," it said.

AirAsia chief executive officer Tony Fernandes said fuel was the single largest expense for the business, accounting for about 60 percent of total operating costs.

"It is crucial to mitigate and manage fuel price volatility in order to successfully operate the business. We took advantage of the recent dip in oil prices, in light that there might be more risk on the downside going forward," he said.

AirAsia announced in August that its net profit for the year to June was 30.2 percent lower than forecast at 111.63 million ringgit (29.6 million dollars) due to higher fuel prices and an aircraft shortage.

In July it announced it would introduce a fuel surcharge on its flights for the first time as part of efforts to combat spiraling fuel costs.

Shares in AirAsia rose sharply in early trade on the Malaysian stock exchange on the back of the announcement, rising 0.05 ringgit or 3.31 percent to 1.56 ringgit.

Early Tuesday, oil was trading at 60.30 dollars per barrel.

Malaysia's AirAsia says gets 5-year tax break

KUALA LUMPUR, Oct 25 (Reuters) - Malaysian budget carrier AirAsia Bhd said on Tuesday it had received an investment-allowance incentive from the government.

The incentive contitutes income tax exemption equating to 60 percent on capital expenditure incurred within 5 years from July 1, 2004, it said in a statement.

CEO: AirAsia to reach more Asian cities soon
Updated : 25-10-2005
Media : The Star
Story By : NG SI HOOI IN CHIANG MAI, THAILAND


AIRASIA aims to offer more flights to different destinations in Asian countries in the near future, chief executive officer Datuk Tony Fernandes said.

The next AirAsia destination would be Phnom Penh, for which daily flights would start on Nov 1.

'We want to bring people in Asia closer by offering cheap air fares so that more people can afford to fly with us,' he said.

He was speaking to reporters after a welcome ceremony with Chiang Mai vice-governor Thongchai Wonglianthong and Thai Tourism Authority director Junnapong Sarakna to mark the first flight from Kuala Lumpur to Chiang Mai here last Thursday.

Fernandes said AirAsia offered daily fights to Chiang Mai, which is popularly known as Rose of the North.

'We have sold over 12,000 seats for the route since the tickets went on sale two weeks ago,' he said, adding that the first fight to Chiang Mai had a passenger load of 90%.

Besides Chiang Mai, AirAsia also offers daily flights to Bangkok, Phuket and Hat Yai from KL International Airport.

Junnapong said with the launch of the new route, more people from northern Thailand would have the opportunity to visit Malaysia and vice versa.

“It's good news for us as it will boost the tourism industry in both countries," he added.

MALAYSIA PRESS : AirAsia To Take Half LCC Terminal Capacity
26 October 2005

KUALA LUMPUR (Dow Jones)--AirAsia Bhd. (5099.KU) has sought half of the 10 million passenger annual capacity at the new terminal for budget airlines being built at Kuala Lumpur International Airport, the New Straits Times reports, citing Bashir Ahmad, chief executive of Malaysia Airport Holdings Bhd. (5014.KU).

AirAsia will occupy 24 of the 30 bays available at the terminal, which starts operations next year, he said, according to the report. The terminal is expected to reach its maximum annual capacity of 10 million passengers "within five to six years," he added.

Malaysia's AirAsia Sep Passenger Traffic +38.7% On Year
27 October 2005

KUALA LUMPUR (Dow Jones)--Malaysia's AirAsia Bhd. (5099.KU) Thursday said it carried 38.7% more passengers on year in September.

AirAsia carried 617,906 passengers in the month, with its Malaysian operations enjoying a 23.2% on-year increase in traffic, while its Thai associate handled 23.4% more travelers.

AirAsia is Southeast Asia's only publicly listed low-cost carrier and the region's biggest such airline. [ 27-10-05 0656GMT ]

Its newly-started 49%-owned Indonesian associate, PT AWAir, carried 68,739 passengers in September, AirAsia said in a statement. AirAsia also holds 49% of the Thai operations, Thai AirAsia.

For the fiscal first quarter to Sept. 30, traffic at AirAsia surged 33.7% on year to 1.81 million passengers.

Traffic at the Malaysian operations rose 21.1% in the quarter, while the Thai operations handled 20.6% more passengers, AirAsia said.

The Indonesian associate carried 172,655 passengers in that period, the company added.

AirAsia didn't explain the data but the rise in passenger traffic comes at a time of strong growth in tourist arrivals to Malaysia and robust travel demand from Malaysians.

Separately, AirAsia said it expects to get its first Airbus 320 plane in early December. The airline has a firm order for 60 180-passenger A320 planes and an option to buy another 40 of the single-aisle planes.

MALACCA, Thurs:

ASIA’s leading low-budget airline is poised to start operating at the Batu Berendam Airport as soon as the airport’s expansion project is completed by the end of 2008.
Describing the airport as “nice and simple”, AirAsia Bhd group chief executive Datuk Tony Fernandes said Indonesia would be the main destination the airline would serve from Batu Berendam.

“But the routes we will take have not been finalised yet. Everything’s still in the planning stages.”

Fernandes said the airline, which focuses on the Asean and China markets, is also in talks to secure landing rights in Myanmar and Laos.

Malaysia Airlines hikes fuel surcharge for international flights

KUALA LUMPUR, Oct 28 (AFP) - Malaysia Airlines, which has been suffering from high oil prices, on Friday announced a third hike in fuel surcharge rates in less than six weeks.

"Given the current level of fuel prices, Malaysia Airlines is compelled to revise the fuel surcharge rates with effect from 15 November 2005," it said in a statement.

Malaysia Airlines raised fuel surcharges on October 10 and September 21.

The national carrier said it would raise its fuel surcharge to 190 ringgit (50 dollars) or by 27.90 percent, from 137 ringgit for travel between Malaysia and Europe, Australia and New Zealand, North and South America, the Middle East and Africa.

Surcharges on tickets sold outside Malaysia for travel from Europe, Australia and New Zealand, North and South America, the Middle East and Africa into Malaysia would be hiked to 50 dollars from 45 dollars, it said.

Surcharges for travel between Malaysia and Asia, from Asia into Malaysia and domestic flights remain unchanged, the airline said.

"Malaysia Airlines continues to monitor the fuel price situation and will take further measures to review the surcharge if necessary," it said.

The airline recently announced one of its worst ever quarterly losses at 280.66 million ringgit in the three months to June after a profit of 26.58 million ringgit a year earlier.

After posting the disappointing result quarterly result, Malaysia Airlines announced an ambitious five-year plan to boost profits by up to 1.0 billion ringgit, which included a management shake up.

is actually in line with the old agreement that MAS/SIA has after the split.. that's y u do not c any other airlines plying KUL-SIN. the old policies also affect SQ operations into any other cities in Malaysia (except for the new MOU that they had with SQ lil brother Silk Air of flying into KCH and Kota Kinabalu..).

Erm, if I'm not mistaken there are other carriers who do the KL-SIN route, for example JAL is one of them.

Erm, if I'm not mistaken there are other carriers who do the KL-SIN route, for example JAL is one of them.

yes..and not forgetting..Emirates (EK) and Sri Lanka (UL)

Business Times - 01 Nov 2005

AirAsia launches flights to Cambodia

PHNOM PENH - Malaysia's low-cost carrier AirAsia on Tuesday launched daily flights from Kuala Lumpur and Bangkok to the Cambodian capital Phnom Penh, the company said.

The carrier said in a statement that it was the first low fare, no frills airline in Asia to gain entry into the Cambodia.

'The new routes Phnom Penh-Bangkok and Phnom Penh-Kuala Lumpur are our second air routes to Indo-China after the Bangkok-Hanoi route,' said Tassapon Bijleveld, chief of the carrier's subsidiary Thai AirAsia.

To promote the new routes, AirAsia said it would offer fares as low as US$25 for a one-way trip to Bangkok and US$29 one-way to Kuala Lumpur, through to March 25.

AirAsia was launched as a budget carrier in December 2001 with just two aircraft and has since become a significant regional player, with its business model increasingly imitated by national carriers and a host of new low-cost entrants.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

Air Asia is a good airline, They should fly Internationally here to Australia from Darwin and Perth at first, Valuair flies to Perth, so why cant JQAsia, Tiger Air or Air Asia do it, we are too considered as SE Asia, but a different continent.

Valuair flies to Perth, so why cant JQAsia, Tiger Air or Air Asia do it.

Not anymore with the QF takeover. 3K, VF and TR will never fly to Perth (again) as they want to minimise competition with their parent companies ie. QF and SQ.

I personally wouldve liked VF to continue the Perth services though.

BTW wasnt AirAsia talking about flying to CMB from KUL earlier?? What has happened to that proposal??

Not anymore with the QF takeover. 3K, VF and TR will never fly to Perth (again) as they want to minimise competition with their parent companies ie. QF and SQ.

I personally wouldve liked VF to continue the Perth services though.

BTW wasnt AirAsia talking about flying to CMB from KUL earlier?? What has happened to that proposal??

Heard Air Asia had plans for parts of the subcontinent too, not just CMB but also MAA. Hope they'd do it.

Heard Air Asia had plans for parts of the subcontinent too, not just CMB but also MAA. Hope they'd do it.

at the moment..Air Asia is eyeing the Chinese market..
flights will be from Bangkok and Kota Kinabalu( M'sia 2nd LCC hub)..wait till those new Airbus arrive...expect AK to be everywhere in Asian region...

yeah..why dun Awair start Denpasar-Darwin, Perth flight...that would be so cool..

at the moment..Air Asia is eyeing the Chinese market..
flights will be from Bangkok and Kota Kinabalu( M'sia 2nd LCC hub)..wait till those new Airbus arrive...expect AK to be everywhere in Asian region...

yeah..why dun Awair start Denpasar-Darwin, Perth flight...that would be so cool..

Read in "The Edge daily" today that Air Asia were seeking approval to fly to Myanmar and Laos. I'm too lazy to put the article up.

Read in "The Edge daily" today that Air Asia were seeking approval to fly to Myanmar and Laos. I'm too lazy to put the article up.

yeah..read it too in local papers ..Myanmar and Laos is the only country missing fro AK destinations..anyway..what happen to the Brunei project?
last few months..AK plans to fly from KUL-BWN ( Bandar Seri Begawan)..still not concrete yet??