FAX - the new Turbo Prop operator for rural air services AirAsia to sub-contract rural services to new airline


June 1 2006


BUDGET carrier AirAsia Bhd will sub-contract operations of rural air services to a new airline, Fly Asian Xpress (FAX).

AirAsia said FAX is currently obtaining the necessary regulatory approvals to start the operations. The low-cost carrier has to serve these routes after the Government split the domestic flights between AirAsia and Malaysia Airlines.

FAX will operate six Fokker 50s and five Twin Otters for the services, which will commence from August 1 2006.

“The new management of the Turbo Prop operations will be working closely with local state tourism authorities to explore the untapped tourism potential of some of the destinations served such as Mulu and Lahad Datu, which is the entry point to pristine rainforest wonders like the Danum Valley,” FAX general manager Mohamed Zahari said in a statement released in Kuala Lumpur yesterday.

In the same statement, AirAsia said following the transfer, the rural air services operations has been re-classified as Turbo Prop operations. “In tandem with the Government’s decision, AirAsia would transfer the day-to-day operations of the Fokker 50s and Twin Otters services to FAX and monitor the performance of this new set-up,” it said.

It is understood that FAX is a newly-established airline to operate such services and that AirAsia does not have any stake in FAX. Details of the routes will be published by June 30.

AirAsia said it is analysing the costs and benefits of operating flights to routes such as Kuala Lumpur-Ipoh and Penang- Langkawi.

hope 2c the new operator expands its turbo prop operation covering cities in Kalimantan and southern Phillipines as well..

gr8 news!!
just wandering...will the plane be in a new livery or will remain in MAS livery..?

will be totally new la.. dont think they will use wau bulan anymore.

makes sense..in that case..dear FAX..pls provide new sets of safety cards..hehehe :D

It's subcontract to Air Asia... I think they will be low cost also.

BTW, musang, where did you get that news?

^ from NST..

I hope Air Asia will keep checking up on FAX. I believe Air Asia can do a good job but the subcontractor is obviously an unproven new company. RAS are not easy to operate and they don't make money easily. I hope they'll learn from Australia's REX which is a private RAS provider in Australia. The airplanes might also need refurbishing or replacement since they are starting to age and it is uneconomical to maintain it long term. Before this plan, MAS have initially wanted to purchase new aircraft for RAS from either Bombardier, Embraer or ATR. Lets hope the cost of flying FAX will not increase as most rural people are unable to afford. One of the most important duty of RAS in Sarawak and Sabah is actually flying in neccesities such as petrol, maintenance parts and etc as many interior places especially highlands are not connected by roads or rivers. FAX BETTER LIVE UP TO EXPECTATIONS!

from NST...

FAX selling tickets two weeks ahead of schedule
06 Jun 2006



--------------------------------------------------------------------------------
KUALA LUMPUR: Fly Asian Xpress is ready to sell tickets for the routes it will manage from June 12, two weeks ahead of schedule.

The new airline, which goes by the acronym FAX, appointed by AirAsia Bhd to operate rural air services, is seven weeks ahead of the Aug 1, deadline set by the Government for the domestic rationalisation structure to be completed.

Among the destinations covered by the airline are Kota Kinabalu, Kuching, Lahad Datu, Miri, Bintulu, Sibu, Mulu, Sandakan, Tawau, Marudi, Limbang, Lawas, Limbang, Bario, Mukah, Long Banga, Long Akah, Long Seridan, Long Lellang, Kudat, Tomanggong and Bakalalan.

FAX said in a statement it would also expand its new operations to attract more international appeal.

More avenues will be opened for people to book their flights including through www.flyasianxpress.com from June 12 and also through AirAsia’s Call Centres at 1300-88-9933 or 03-8660- 4343 and at airport sales counters and sales offices nationwide.

Bookings could also be made through travel agents with access to Galileo GDS Platform. Galileo is a leading global distribution system, and subsidiary of Cendant Travel Distribution Services which covers a network of 50,000 agents worldwide.

The statement said the Government gave both MAS and AirAsia the Aug 1 deadline to complete transfer of operations and schedules in relation to the rationalisation of domestic routes.

"FAX has been working relentlessly to speed ahead with all necessary regulatory approvals to ensure that we not only get things right, but operations can take off to a flying start.

"AirAsia on behalf of FAX had appealed to MAS to withhold cancellations until all details could be announced as FAX needed more time as closing bookings on June 29 would have been two months ahead of schedule.

"FAX had to abide with MAS’ decision and has beaten all its internal planning to put its product up for sale on June 12.

"FAX maintains that MAS had continued to offer seats for travel past the Aug 1 deadline, even after the rationalisation announcement in March.

"FAX believes that the situation in Sarawak, including concerns of travel and tour operators, could have been avoided if only MAS had informed the affected parties about a new airline taking over its operations, and a decision (is made) to postpone its cancellation exercise for another two weeks," it said.

FAX gave an assurance to the public that there would be little disruption to existing bookings and all bookings received would be honoured.

It also appealed to tour operators and travel agents to hold bookings until flights are open for sale on June 12.

from The Star...

New airline to take rural flight bookings on Monday
By FLORENCE A.SAMY

PETALING JAYA: The problem of tourists not being able to get confirmed tickets on the rural air services in Sabah and Sarawak has been resolved as the new airline will open for flight bookings from Monday, seven weeks ahead of schedule.

Initially, FAX, the new airline contracted to manage AirAsia's rural service, set a July 1 target for ticket bookings on the 99 non-trunk domestic routes.

Flight bookings for FAX would be available on its website www.flyasianexpress.com from Monday and in the interim, a temporary helpdesk has been set up at 03-866-04-399 and travel agents could submit manual booking requests to groupbooking@airasia.com.

“FAX has also enlisted assistance from AirAsia to enable flight bookings at all existing distribution channels including AirAsia call centres (1 300 88 9933 or 03-8660 4343), airport sales counters and sales offices nationwide,” AirAsia said in a statement yesterday.

It is learnt that FAX is also negotiating with operators of computer booking systems used by travel agents worldwide to enable ticket purchases to be made.
Yesterday, The Star reported that thousands of foreign tourists could change their plans to travel here if glitches in the handover of key local routes from Malaysia Airlines to AirAsia were not resolved quickly. The country also stands to lose substantially in revenue.

The report highlighted concerns by travel agents and said Mulu National Park would be hardest hit as some 18,000 foreign tourists who booked their trip to the park, would cancel if their flights were not confirmed.

From Aug 1, AirAsia will take over the 99 routes from Malaysian Airlines as part of the Government's rationalisation of the domestic air services sector. Both MAS and AirAsia will also take on 19 trunk routes each.

FAX would first be operating in 39 destinations in Sabah and Sarawak and would fly from Miri to Mulu 14 times a week and to Lahad Datu, another popular eco-tourism spot, 35 times a week from Kota Kinabalu.

General manager Mohamad Zahari assured the public that there would be little disruptions to existing bookings and that routes would not be cut as a result of this exercise.

He said AirAsia, on behalf of FAX, had appealed to MAS to withhold cancellations, which was two months ahead of schedule, until the details were announced as they needed more time.

“We believe the situation in Sarawak and concerns from travel and tour operators could have been avoided if MAS informed the affected parties about the new airline taking over from its operations and made a decision to postpone its cancellation exercise for another two weeks,” he said, adding that current flight schedules and connectivity would be enhanced.

MAS in a statement yesterday defended its move to immediately cancel bookings for travel on the 99 non-trunk domestic routes.

The national carrier said travel agents, tour operators, national tourist organisations and other relevant bodies, were informed of the intention early on to ensure that foreign tourist arrivals were not negatively impacted and flights were not disrupted.
Long haul tourists, travel agents and tour operators required a minimum of three months lead-time before they committed to a particular package, MAS said.
“It will be irresponsible on our part to sell tickets on flights that we will no longer operate from Aug 1,” said MAS managing director Idris Jala in a statement yesterday.
“Some tour operators put out their promotional material a year in advance, having negotiated packages, which involve not only airlines but also hotels and ground operators.

“Despite the minimum three months' notice, we have only put the forward bookings into play on May 27, which is two months ahead of the Aug 1 deadline.
“This was only done after we and the Government received reassurances from AirAsia that it would be ready to take on operations from Aug 1.”

Rural air service to stimulate tourism and economy in Malaysia
Jul 20, 06 | 8:55 am



By Y. Sulaiman l eTN Asia
The new carrier, Fly Asian Xpress (FAX), which will take over interior air services from Malaysia Airlines in the Malaysian states of Sabah and Sarawak, will fly to more than 100 routes with about 250 frequencies in the two states.



"The new airline's management is confident it will provide the impetus for further development of economic, trade and tourism activities in the two states," said Tony Fernandes, a director of the company at a press conference.

"With its hub in East Malaysia, it will enable the carrier to offer services better suited to the needs of our customers here," he added.

FAX will fly from Kota Kinabalu to Mulu Caves daily, and is planning to increase flights to Lahad Datu, which serves Danum Valley. Both sites are popular ecotourism destinations, which this year has been scheduled to receive 18,000 overseas visitors, according to confirmed bookings.

"With more regular flights to the ecotourism destinations, our tourism industry will grow, along with our hospitality and transportation industries," added Fernandes.

Flying a fleet of 11 planes, comprising of Fokker 50s and Twin Otters, the new carrier has absorbed most of the former local staff from Malaysia Airlines, which has surrendered its domestic routes in the two states to AirAsia.

Routes holder AirAsia recently announced launching of its expansion plans in East Malaysia by developing Kota Kinabalu and Kuching airports into fully operational hubs, in preparation of it assuming its new role, effective August 1.

"Low fare travel for East Malaysia will be further enhanced with more exciting and affordable intra state travel opportunities between Sabah and Sarawak as well as to the other ASEAN region."

"Everyone living in remote areas of Sabah and Sarawak can now fly," added Fernandes.

http://www.flyasianxpress.com/site/en/fax/home.jsp

Air Services License To AirAsia


PUTRAJAYA, July 27 (Bernama) -- AirAsia Bhd Thursday received the air services license from the Transport Ministry to enable the low-cost carrier to officially start its domestic flight in Sarawak and Sabah beginning Tuesday.

The air services license is for http://www.flyasianxpress.com/site/en/fax/home.jsp, a wholly-owned company of AirAsia, which will operate its services to 41 destinations.

The license was given to FAX chief executive officer Raja Mohamed Azmi Raja Mohamed Razali by Transport Minister Datuk Seri Chan Kong Choy in a simple ceremony at the minister's office, here.

Chan said the license was given to FAX after the Department of Civil Aviation (DCA) had given its approval.

FAX, which will be based in Miri Airport, can now start its operation with focus to interior areas of Sarawak for a period of five years using seven Fokker 50A aircraft and two twin otter, he said.

-- BERNAMA

FAX and AirAsia in code-sharing partnership
Thursday November 2, 2006
TheStar


KUCHING: Fly Asian Xpress (FAX) will implement code-sharing with budget carrier AirAsia this month.

FAX marketing manager Kaarthik Velu said the move would enable passengers to make bookings directly with AirAsia and subsequently with other airlines.

“The code-sharing with AirAsia will enable passengers to enjoy seamless connectivity while tapping into AirAsia’s growing network,” he added in a press statement.

Kaarthik said FAX would collaborate with Galileo International, a leading global distribution system (GDS) provider, to enable agents to have access to its full range of fares.

FAX, he added, was also negotiating with several other GDS providers popular in Europe and Asia for a tie-up by next month.

The airline, which took over rural air services in Sarawak in August, said it was committed to providing inter-state and intra-state flight connectivity within Sabah and Sarawak to help realise tourism potentials in the two states.

FAX also introduced yesterday a fixed fare – excluding service fees – of RM84 from Miri to Mulu and RM179 from Kota Kinabalu to Mulu.

It has also introduced concession fares for senior citizens and children.

BizBytes: FAX to introduce more routes

-by AYU MUSA KAMAL -
FLY Asian Express is planning to expand its service to Indonesia and the Philippines as early as January or February after its successful debut in East Malaysia earlier this year.


“We will continue to concentrate on our Sabah and Sarawak routes but we plan to expand our network,” Kaarthik Velu, distribution and marketing manager of FAX told Bizbytes yesterday.

Kaarthik said for the time being FAX would use its fleet of of seven Fokker 50s and five Twin Otters.

“We want to use these aircraft efficiently to service the new routes,” said Kaarthik.

Apart from venturing into new routes in Indonesia and the Philippines, FAX is also planning to increase the number of routes in Sabah and Sarawak.

“We are planning to have more frequent flights and destinations in Sabah and Sarawak,” said Kaarthik, adding that details on the new destinations would be made known soon.

Offering interesting packages on 40 routes and 104 flights daily, FAX has attracted more than 200,000 passengers since it started operations in August.

“We expect to attract another 200,000 passengers by year-end,” he said.

“This is due to the school holidays and the festive seasons which will attract more holidaymakers.”

Kaarthik added that Sibu, Mulu, Labuan and Lahad Datu are among favourite holiday destinations.

He said FAX is awaiting Malaysia Airlines’ response for an interlining arrangement which will provide passengers connectivity between key routes of both carriers.

“Baggages will be transferred directly. Passengers will not have to wait for their bags,” said Kaarthik.

“They will get boarding passes in Kuala Lumpur.”

A similar arrangement signed with AirAsia takes effect on Dec 1.

Malaysia carrier Fly Asian Xpress considers ATR, Bombadier to upgrade fleet
11.19.2006, 12:08 AM

KUALA LUMPUR (XFN-ASIA) - Malaysia's rural air service provider, Fly Asian Xpress Sdn Bhd (FAX), is considering purchasing seven new aircraft costing some 100 mln usd from either European aircraft maker ATR or Canada's Bombardier Inc, a FAX top official said.

'We are looking at replacing seven Fokker 50 turboprop planes,' Mohamad Azmi, chief executive officer of FAX -- the air operator in the eastern Sabah and Sarawak states on Borneo Island -- was quoted by Agence France-Presse as saying.

Azmi said FAX officials are evaluating the performances of two aircraft -- the 66-seater ATR-72 and the Bombardier.

'We are looking at a plane that is fuel efficient and reliable,' he said, adding the total cost could run up to about 100 mln usd.

ATR is the leader in the 50- to 70-seat turboprops market, while Bombardier is the world's third-largest aircraft maker.

EADS (European Aeronautic Defence and Space Company) and Italy's Alenia Aeronautica each have a 50 pct stake in ATR.

Azmi said a decision will be made in 'the next few months', adding FAX will either secure bank financing for the purchase or lease the planes.

FAX has already flown some 200,00 passengers since August after taking over the rural route services from loss-making national carrier Malaysia Airlines.

Profit-making budget carrier AirAsia's group chief executive Tony Fernandes is among the shareholders in FAX, which also has five Twin Otters in its fleet.

AirAsia announced on May 30 it would subcontract the rural air service to FAX, after it took over the route from Malaysia Airlines.

FAX plans to expand to Philippines, Indonesia
07 Feb 2007



--------------------------------------------------------------------------------
KUCHING: Fly Asian Xpress (FAX) plans to expand to Kalimantan and southern Philippines by next year.
It is negotiating the purchase of either Italian-French- made Aerei da Trasporto Regionale or the Canadian-made Bombardier aircraft.

"We hope to strike a deal with the two manufacturers," FAX chief executive officer Raja Mohd Azmi Mohd Razali said here yesterday.

In its expansion plans set to unfold in 18 months time, FAX expects to fly to Pontianak and Balikpapan in Kalimantan and "some cities" in southern Philippines.

FAX operates a fleet of seven Fokker 50s and five Twin Otters with a network of 22 routes and 104 flights daily within Sabah and Sarawak.

Raja Azmi said its fleet of Fokker 50s aircraft would eventually be phased out.

Thursday February 8, 2007

Fly Asian Xpress in RM950m fleet revamp

MIRI: Malaysia’s third airline - Fly Asian Xpress (FAX) - is to carry out an aircraft fleet revamp exercise that may cost the airline up to RM950 million.

It wants to buy up to 10 new aircraft from Europe and Canada, each of which may cost up to US$25 million (RM95 million), said its Chief Executive Officer Raja Mohd Azmi Razali on Thursday.

“We are now seeking approval from the Government to acquire these new aircraft. We want to replace the old Fokker aircraft that we inherited from Malaysia Airlines.

“We are looking at French-Italian ATR 42 or 72 Model and Canadian Bombardier Q300 or Q400 that can carry 49 and 70 passengers.

“Each of these new planes would cost between US$20 million to US$25 million. This is part of our plan to improve and expand our services in the country and in the region,” he told a press conference here.

Azmi said FAX has been in operation for six months and had already served up to 400,000 passengers in almost 14,000 flights.

It was time to make some drastic improvement in passenger and flight services, he said, adding that replacing the old aircraft was a key priority as the aged planes had caused a lot of technical and maintenance woes.

Azmi also announced that FAX and Air Asia had agreed on a new arrangement whereby passengers affected by flight delays or cancellations by either airline, would get replacement seats in the other airline at the next earliest available flight.

“If FAX has delayed or cancelled flights, we guarantee that a connecting flight would be found for the passengers on the next available Air Asia flight and vice-versa,” he explained.

FAX has also set up a new customer service hotline for passengers.

The daily 9am to 5pm hotline centre would be based in Miri, and the telephone number is 085-612442.

Passengers or members of the public with any queries on flights and ticketing can call the centre for help.

FAX aims to buy aircraft for new routes
Friday February 9, 2007
TheStar


KUCHING: Fly Asian Xpress (FAX), which operates air services in Sabah and Sarawak, plans to buy new aircraft and expand its routes to the fast-growing Brunei-Indonesia-Malaysia-Philippines-East Asean Growth Area (BIMP-EAGA).

FAX’s chief executive officer Raja Mohd Azmi Mohd Razali said the airline was seriously evaluating the Canadian-made Bombardier aircraft and the French-Italian made 50-seater and 70-seater ATR aircraft.

“We have had a few talks with the aircraft manufacturers. We are also pursuing (our proposals) with the Government,” he told reporters at his first media briefing here on Tuesday.

Raja Mohd Azmi said the price tag of the aircraft was between US$20mil (RM70mil) and US$25mil (RM87mil).

He said FAX , which started operations on Aug 1 last year, hoped to acquire its first new aircraft and launch routes in the BIMP-EAGA area within 18 months.

“There are certainly opportunities in Kalimantan and southern Philippines,” he added.

FAX, which took over rural air services from Malaysia Airlines, now operates a fleet of seven Fokker 50 aircraft and five twin-otters leased from the Government.

Raja Mohd Azmi said the Fokker 50 aircraft were no more in production and their spare parts were expensive and hard to obtain.

He said FAX now flies to 22 destinations and operates 104 flights a day. It has transported 400,000 passengers in the past six months.

“Our average passenger load is about 69%.”

Raja Mohd Azmi said FAX would launch the Kuching-Sibu service in April in view of overwhelming demand from travellers and to encourage greater domestic tourism.

He announced that FAX’s concession fares for senior citizens and children (50% discount), available only on routes served by the twin-otters, would be extended to all Fokker 50 routes from Feb 15.

By April this year, he said that travellers would be able to choose their seats on the flights when booking their tickets on-line.

Malaysia's Fly Asian Xpress to Order 15 Planes, Fernandes Says
Updated : 08-03-2007
Media : Bloomberg
Story By : Chan Sue Ling and Haslinda Amin


March 8 (Bloomberg) -- Fly Asian Xpress, a Malaysian airline that's starting a new long-haul budget carrier, plans to order 15 twin-aisle aircraft from Airbus SAS or Boeing Co., valued at as much as $2.9 billion at list prices.

AirAsia X, the new airline, will pick Boeing's 777-200 or the A330-300 aircraft by Airbus, Fly Asian Xpress shareholder Tony Fernandes said today. The new carrier has also decided to postpone the start of its services by as long as a year because it can't get the aircraft it needs to operate in July, he said.

``We can't find the planes,'' Fernandes, who owns 10 percent of Fly Asian Xpress, said in an interview in Singapore. ``AirAsia X will definitely start at the latest in August 2008. If they can find planes before then, they will start, otherwise they won't.''

AirAsia X is adding to competition for long-haul services, betting that cost-conscious travelers are prepared to forgo the comforts offered by full-service airlines such as Malaysian Airline System Bhd. and Singapore Airlines Ltd. The delay may be a setback for Malaysia, which wants to attract more tourists and turn the country into a budget airline hub.

``The growth in tourism will be pushed back,'' said Raymond Yap, an analyst at CIMB Bhd. in Kuala Lumpur. Still, ``when this happens, it will be big. It will be something that the full- service carriers will have to pay attention to.''

Flights were initially scheduled to start in July after Fly Asian Xpress in January won government approval to begin services. AirAsia X had planned to lease two or three planes this year and purchase more for delivery in 2008.

Aircraft Shortage

AirAsia X is starting at a time when a pickup in air travel demand and the delay in the deliveries of the A380 superjumbo by Airbus may have resulted in a shortage of long-haul aircraft.

Asia-Pacific passenger traffic is estimated to grow at a 5.7 percent annual rate between 2006 and 2010, outpacing the global average, according to estimates by the International Air Transport Association, which represents 250 carriers worldwide.

Dubai, United Arab Emirates-based Emirates this month agreed to lease five Boeing 777-300ER planes from GE Commercial Aviation Service to help fill a shortfall in capacity caused by two-year delays in the delivery of the A380 aircraft.

There are fewer than 20 new A330-200s and only a ``handful'' of A330-300s and 777-200ERs that are being delivered to leasing companies between now and 2008, said Sean Lee, a spokesman at Singapore Aircraft Leasing Enterprise, Asia's biggest plane lessor. Of those, almost all have been placed with airlines, he added.

AirAsia X Routes

AirAsia X had planned to fly to Birmingham or Manchester in the U.K., Tianjin and Hangzhou in China, India, the Middle East, Australia and the U.S. It may also in the future fly the same long-haul routes as Malaysian Airline, the national carrier, Transport Minister Chan Kong Choy said in January.

A return flight on AirAsia X to the U.K. from Kuala Lumpur may cost as low as 9.99 ringgit ($2.85), according to the carrier. Oasis Hong Kong Airlines Ltd., which became the first low-cost Asian carrier to fly to London last year, is selling one-way tickets to London from 75 pounds ($144) for travel this month, excluding taxes and surcharges, according to its Web site.

AirAsia Bhd., Southeast Asia's largest budget carrier headed by Fernandes, in January ``had agreed principally'' to buy 20 percent in Fly Asian Xpress, which operates rural services in Malaysia.

The company is close to an agreement for the 15 planes and has already picked the model, Fernandes said, declining to say which aircraft was chosen.

An A330-300 aircraft can seat as many as 335 passengers, reach a maximum distance of 5,500 nautical miles (10,186 kilometers) and cost $180 million each, based on catalog prices. Boeing's 777-200, which costs $195 million each, can carry up to 400 people and fly as far as 5,210 nautical miles.

-edit-

AIRPLANES OF FAX

Source : www.airliners.net

De Havilland Canada DHC-6-300 Twin Otter

http://img100.imageshack.us/img100/3005/fax1bb3.jpg (http://imageshack.us)

http://img373.imageshack.us/img373/8954/fax3no4.jpg (http://imageshack.us)

Fokker 50

http://img181.imageshack.us/img181/3617/fax6wn0.jpg (http://imageshack.us)

Malaysian Fly Asian in $2.75 bln Airbus deal: report
Updated : 21-04-2007


KUALA LUMPUR (Reuters) - Malaysian low-cost carrier Fly Asian Xpress will buy 10 Airbus A330-300 planes and take an option to purchase five more in a deal worth $2.75 billion, a newspaper reported on Saturday.

Fly Asian, a sister company of Malaysian budget airline AirAsia , will take first delivery of the aircraft in September 2008, Business Times reported, without citing its sources.

Fly Asian is owned by its chief executive officer, Raja Mohd Azmi, AirAsia chief executive Tony Fernandes and AirAsia deputy group chief executive Kamarudin Meranun.

The carrier serves Malaysia's eastern states of Sabah and Sarawak on Borneo island.

Asked to comment on the report, Fernandes told Reuters: "Wait till Monday," referring to a press briefing scheduled to be held by Fly Asian on April 23.

Latest:
FAX in talks with Airbus for 10 more planes
By Anna Maria Samsudin
April 30 2007


FLY Asian Xpress (FAX) is already in talks with the European airframe maker Airbus to purchase 10 more A330-300 planes, less than a week after signing 10 firm orders for the planes with the option to buy five more.

Looking at the strong relationship between the two companies, its chairman Datuk Kamarudin Meranun is optimistic that Airbus can accommodate the additional orders.

He is also upbeat the airline will not be short of options to finance the next round of aircraft purchases, estimated to cost US$1.75 billion (RM5.99 billion), based on its catalogue price of US$175 million (RM598.5 million) per plane.

"The A330s aircraft is very much in demand in the market right now. Since FAX would need 25 aircraft within the next five years to operate the AirAsia Long Haul routes, I think it is better for us to place the orders for the additional 10 planes now.

"As for financing, everything is taken care off. We are not short of financial institutions, as well as investors, who are keen to back us up on this deal. I am happy with the response as it shows that they believe in our business model," he told Business Times yesterday.

FAX's earlier 15 plane orders, with an estimated cost of US$2.63 billion (RM8.99 billion), will be delivered between September 2008 and 2011.

It will raise funds to finance the aircraft purchase exercise through bank borrowings and share sales.

Kamarudin said FAX is close to announcing its engine selection for the new planes. It is also undergoing some management reshuffle to further beef up operations.

"FAX, with the long-haul operations, is going to be big. We need dynamic people to manage the company. We will soon announce some new appointments," he added.

FAX's maiden long-haul flight is expected to take off by September this year, and at the initial stage, the airline will operate with three leased A330s.

To date, FAX has leased one A330-300 and is in the process of looking for two more of such aircraft type.

Its target destinations include Japan, South Korea, China, India, Australia, the Middle East and Europe.

Takeover of FAX rural services likely June
Daily Express News

Kota Kinabalu: Malaysia Airlines is expected to begin taking over rural air services in Sabah and Sarawak from Fly Asian Xpress (FAX) next month.

Transport Minister Datuk Seri Chan Kong Choy said all details related to the handing over of the services by FAX to MAS are expected to be finalised by the end of this month.

"They are still in talks. It is not necessarily Firefly (MAS subsidiary). MAS is still discussing that with FAX, with the participation of my Ministry and the Ministry of Finance. And we can expect they will finalise all the details by the end of this month," he said.

Chan was speaking after attending the 4th convocation ceremony of the Tunku Abdul Rahman College (TAR) Sabah campus held at the Le Meridien Hotel, Saturday.

On April 25 Chan was reported as saying the Cabinet has given the green light for the rural air services to be handed back to MAS. This followed a proposal by FAX shareholder Datuk Tony Fernandes that Firefly take over the operations of all rural air services citing it as the "logical thing to do". It has been less than a year since MAS handed over the rural air services to AirAsia, which then subcontracted them to FAX. Miri-based FAX, owned by some directors of AirAsia, has been operating 22 routes and 104 flights daily in Sabah and Sarawak since last August.

Chan said they also agreed that the provision of such services is the Government's responsibility and a type of social service so it will continue subsidising the cost of running these operations which amount to RM60m per year.

When told about the many complaints received from various quarters especially the commercial sector about the poor air services of FAX in Sabah, Chan said:

"We have received a lot of reports and I think the constraints are related to aircraft. They (FAX) have a fleet of seven planes but only four to five are working, while two are grounded. That is the main reason for all the constraints.

"But I hope the transition (of the rural air services from FAX to MAS) can go very smoothly. They have not decided yet whether it would be Firefly. They are probably thinking of another entity under MAS to run the rural air services of Sabah and Sarawak.

"So once all these are ready, I think all the constraints can be overcome in stages É we are mindful about that."

Chan said the public could expect a gradual transition after they have finalised all the details by the end of this month.

On the application by AirAsia to the Government for a lower airport tax, Chan said he will make the announcement soon. "(But) the public can expect a reduction," he said.

Chan, who is MCA Deputy President, is on a three-day visit to Sabah until Monday. Besides attending the convocation as a TAR Council Member, he would also visit party divisions in the interior and have a dialogue with the industrial leaders and land transport, among others.

Accompanied by MCA Sabah Liaison Chief Datuk Edward Khoo and other party leaders in the State, Chan is also scheduled to pay a courtesy visit on the Chief Minister on Monday.

this tony guy is such a loser, anyone wants me to back that statement?

this tony guy is such a loser, anyone wants me to back that statement?

a loser in your case, this guy is now worth more than RM 700 million, more than you can make in your entire life....and he's doing it legally, albeit some people dont like his business practice..

a loser in your case, this guy is now worth more than RM 700 million, more than you can make in your entire life....and he's doing it legally, albeit some people dont like his business practice..

more than what i can make in my entire life? MYR700M? Wanna bet on that?

a loser in another term for people who dun know, is that he said that he can make it profitable with his so call "low fare" now he use unacceptable reason to hand over the operation back to MAS? So now sir, u tell me whose the winner and the loser?

okay..RM 700 million. wanna bet on that dont you. well i cant promise you another RM 100 million but if you win, you're going to sit with me in the cockpit on the jumpseat behind me. Deal?

What's the timeline? Retirement age for pilot is now 60. I'm 22, you have another 38 years to amass such amount. I cant say you wont make it, but this is a challenge rite :)

Just because he handed back the RAS to MAS doesn't warrant him a loser status. He might be a loser for you but don't forget he's also the want who gave MAHB extra 7 million passengers for KLIA, and a chance for average Malaysian to fly in airplane. Not just Malaysian, but also for Thais and Indonesians.

And he's the one who gave competition to MAS, resulting in more efficient MAS today, under the command of Idris Jala. And because of him there's Tiger Airways of Singapore.

Personally because of him too i was retrenched from MAS when they handed the RAS to FAX, although i lose my job, i didnt curse him instead i take a break from aviation and study for a degree. Look, i'm directly hit with the rationalization plan but instead of blaming others and call him a loser, i view it from a different perspective.

ssangyons, lol of course im kidding, not even working yet.........haha:lol:
It's gr8 that you consider this issue from different perspective, I dunno how being unemploy benefit one, but hey, different people different stuff:cheers: Agree that he does help Malaysia Aviation industry growth, but come one, we are at FAX thread, let's leave those thing behind to their own thread and talk about FAX.....

Weather conditions in the rural area can be unpredictable sometimes, but a month job of flying the twin otter was the best so far for me :cheers:

FAX orders 15 Airbus jets worth RM9.9b
June 20 2007


LE BOURGET: Malaysian budget airline Fly Asian Xpress (FAX) dangled the prospect of flights between Kuala Lumpur and Manchester for as little as US$10 (RM34.30) as it ordered 15 Airbus jets worth US$2.9 billion (RM9.9 billion) yesterday.

The airline plans to start operations in the third quarter using the brand name AirAsia X following a franchise deal with low-cost regional carier AirAsia, whose chief executive Datuk Tony Fernandes has also decided to back the venture.

It is gambling on being able to extend the booming regional market for no-frills airlines to long-distance travel using the 295-seat Airbus A330-300.

It upgraded an existing firm order for 10 of the wide-body planes to 15 in a deal finalised at the Paris air show.

The deal also includes options for an additional 10 aircraft.

Fernandes said the airline was considering starting up a service between the Malaysian capital and Manchester in northern England with an introductory price of US$10 each way or US$20 (RM68.60) return. The average ticket price would be US$300 (RM1,029) return, he said.

"I just have to hope passengers buy a lot of food to eat on the plane," he joked at a joint news conference with Airbus.

The deal also means an order for Rolls-Royce, which said it would be providing engines worth over US$1 billion at list prices to power the new planes.

Fernandes said there was still a market niche for the A330, which suited the economics on most routes the airline planned to use.

"From four to eight hours flying range, this is a super plane. It fits what we want to do," Fernandes said. - Reuters

Fly Asian Xpress - FAX
De Havilland Canada DHC-6-... Twin Otter
by Chaity

http://cdn-www.airliners.net/aviation-photos/middle/7/8/0/1190087.jpg

Fokker 50
by JKSC

http://cdn-www.airliners.net/aviation-photos/middle/6/6/1/1175166.jpg

Fly Asian Xpress (FAX) has ceased operations to the rural air sites in
Sabah and Sarawak.

The service is now operated by MAS Wings Sdn Bhd.

Customers who have purchased flights on FAX for travel from 1 October 2007 onwards
may contact AirAsia Call Centre +603 8775 4000
for refunds and further information.

perhaps this thread can be merged with a thread on MASWings

Cheers, m