now can open it.. with latest update.

now.. 3 daily flights from KL to Kuala Terengganu

and Daily flight from KL to Padang

AirAsia: Daily flights to Vientiane from May
From Hamisah Hamid
Published: 2008/02/21


AirAsia will also fly to Luang Prabang, a popular tourist destination in Laos, when the runway of the airport there is extended


VIENTIANE: Low-cost carrier AirAsia Bhd will fly daily from Kuala Lumpur to Vientiane starting May this year, from the current three flights a week, given the good response from passengers, especially tourists.

Group chief executive officer Datuk Tony Fernandes said the airline initially planned to start daily flights within one year of the launch of KL-Vientiane flight on December 1 2007.

"The load factor for December was almost 90 per cent and in January, it was 65 per cent.

"It's way beyond our expectation, in short time, we'll have two flights a day," he told a news conference after the official launch of AirAsia's KL-Vientiane route yesterday.

Also present at the launching ceremony, which was held on the Mekong riverside, were Laos Public Works and Transportation Minister Sommat Pholsena, Asean seceretary-general Dr Surin Pitsuwan, Loas ambassador to Malaysia Dr Bountheuang Mounlasy, Malaysian ambassador to Laos Zainal Abidin Ahmad and AirAsia chairman Datuk Pahamin Rajab.

Fernandes also said AirAsia would fly to Luang Prabang, a popular tourist destination in Laos, when the runway of the airport there is extended.

With Vientiane, AirAsia now covers all the 10 Asean countries. Since 2001, the budget airline has carried more than 46 million passengers over 90 routes.

Pitsuwan said AirAsia's vision dovetails with Asean's vision to make the region as a stable, secure and prosperous, so that Asean becomes the world's destination.

He said in two decades from now, it is expected that at least one-third of the 700 million population of Asean would become middle-class citizens.

AirAsia X: Airbus order hinges on engine options
Published: 2008/02/21



AIRASIA X Sdn Bhd, the Malaysian budget airline that may buy as much as US$5.7 billion of Airbus SAS A350 planes, said the order will hinge on the planemaker’s ability to provide a choice of engines.

Airbus, which uses Rolls-Royce Group Plc engines in the long-range A350, is in talks to also use General Electric Co’s engines. AirAsia X, backed by Richard Branson’s Virgin Group Ltd, is also considering rival Boeing Co’s 787-900 plane, Azran Osman Rani, the airline’s chief executive officer, said in a telephone interview yesterday.

“We don’t like to be in a position where we are left with no engine choices,” Azran said. “That’s what we need to sort out with Airbus.”

Global orders for Airbus’s A350 plane are lagging behind those of Chicago-based Boeing’s 787 Dreamliner, partly because the European planemaker doesn’t give engine options on the model. That’s helped the 787, which starts test flights this quarter, to become the most successful aircraft unveiling ever.

AirAsia X will decide this year on as many as 25 A350s and an option to buy the same number, Azran said. The A350-900 that the airline is considering sells for an average US$230 million.

The long-haul budget airline started flights last year with a service to the Gold Coast in Australia from its Malaysia base.

GE Negotiations

Airbus’s lack of engine choice on its long-range, midsized A350 has made some customers reticent about placing orders, Hans Peter Ring, the planemaker’s chief financial officer, said in an interview last year.

Toulouse, France-based Airbus, the world’s largest planemaker, is still negotiating with GE on the engines, the planemaker’s chief operating officer John Leahy said Wednesday at the Singapore Airshow.

“GE has to come up with the engine that we need and not tell us we should modify our airplane,” Leahy said. “We are very happy with the Rolls engine and the market is very happy with the Rolls engine. Our business case always envisions a second engine.”

Airbus expects to get orders for 100 A350s this year, Leahy said. The plane is sold out through 2017, four years after the first delivery is expected, in 2013.

The A350 got off to a bad start after Airbus had to redesign it several times to make it technologically competitive with Boeing’s 787. The model gathered momentum last year, winning 290 orders. The backlog as of February 15 was 338 planes, including 18 orders in January.

Boeing’s 787 was originally set for entry into service by May 2008. The first test flights are now due next month with a scheduled entry date in early 2009. Boeing has 857 orders for the plane. - Bloomberg

'Big Sale' causes jam at AirAsia website
Published: 2008/02/21


Internet traffic on airasia.com surges tenfold, resulting in the airline posting its highest single-day sales ever


LOW-cost carrier AirAsia said its big sale campaign generated such a massive Internet frenzy in Asia that many are unable to book tickets on its website.

In a statement, AirAsia said barely 24 hours of the campaign’s launch, Internet traffic on airasia.com surged tenfold, resulting in the airline posting its highest single-day sales ever.

AirAsia’s regional commercial head Kathleen Tan said 300,000 of the promotional seats were snapped up in the first 12 hours.

The big sale campaign began last Tuesday, offering millions of seats at fares as low as five sen for domestic and international routes.

“With over 78 million Internet users from Southeast Asia and 215 million Internet users from Greater China, we expect huge waves of Internet traffic to our websites, which is frequented by users from over 205 countries,” Tan said.

She urged those who want to access the airline website to be patient and to keep trying, or alternatively book their seats via their mobile devices through mobile.airasia.com.

She said for the campaign, AirAsia has also added destinations in China and Vietnam, as well as Singapore and Gold Coast in Australia, to its list of routes. — Bernama

AirAsia to increase Kuching-Macau flights

BUDGET carrier AirAsia plans to increase the frequency of its Kuching-Macau international direct flight route with the positive response received since the launch on November 15 last year, its East Malaysia and Brunei regional manager Shanmugamnathan Suppiah said today.

He said the airline is also considering the possibility of using its Airbus fleet to cater the growing number of passengers on the route.

"Hopefully, this can be implemented soon,” he told reporters after a meeting in Kuala Lumpur with officials of the Sarawak Tourism Board (STB), the state government tourism marketing and promotion arm.

Without disclosing the average passenger load for Kuching-Macau route since the launch, Shanmugamnathan said AirAsia is now flying from Kuching to Macau three times a week using the Boeing 737 aircraft.

"We are planning to use Airbus because among the feedback we received was that the three-hour flight was uncomfortable for certain people due to space constraints,” he said.

STB chief executive officer Gracie Veronica Geikie, who chaired the meeting, said capitalising on the availability of the Kuching-Macau direct flight, a six-day roadshow to woo more tourists from Macau, Hong Kong and Shengzhen, China, to Kuching would start from February 26. - Bernama

When will Air Asia launch KL-Kuantan ? KL-Lahad Datu ?( using 737 )

When will Air Asia launch KL-Kuantan ? KL-Lahad Datu ?( using 737 )

If i am not mistaken, the Lahad Datu airport currently cannot accomodate B737...

AirAsia aims to be region's biggest carrier
By Anna Maria Samsuddin
bt@nstp.com.my

BUDGET airline AirAsia Bhd has drawn up a six-year business plan that will see it carry 70 million passengers a year from 2014, which will make it Asia's biggest carrier.

The figure is 3.5 times higher than this year's target of 20 million passengers.

Group chief executive officer Datuk Tony Fernandes is optimistic of achieving the target, which will in turn make the low-cost carrier terminal at the KL International Airport the regional hub for budget travel, given the foundation laid out over the past six years.

Factors going for the airline include its extensive regional network comprising 90 routes and its huge order of 175 Airbus A320s.

"Six years going forward, I think things will look rosy and optimistic. This is mainly because we have worked hard to build the necessary foundation for the airline, namely in terms of network and the brand, and we have already acquired the aircraft to support our growth," Fernandes told Business Times in an interview.

"With the recent inclusion of Singapore in our network, we are basically connected to all points within the region; and what we are going to do now is to further develop each of these existing routes. We are indeed in a strong position now, stronger than we have ever been," he said.

From an unknown airline which started operations in 2001 with RM40 million debt inherited from its previous owner, DRB-HICOM, AirAsia has evolved into the region's largest budget carrier.

The airline, which carried more than 15 million passengers annually in its five years of operation, has been recognised as the fastest-growing low-cost carrier in history - faster than the US' Southwest Airline and Europe's Ryanair, which only breached the 10-million passenger mark after operating for more than a decade.

After taking delivery of some of its new A320s, the airline has achieved 95 per cent on-time performance.

Fernandes said the airline will not just strive to provide affordable airfares, but will also improve its inflight services, including promoting Malaysian hospitality and the huge varieties of local food.

"To date, AirAsia's inflight meal has an interesting selection of local favourites such as roti canai, nasi lemak and nasi briyani. Of course, when we started the airline six years ago this was not in our plan.

"Now, we want our passengers to be able to enjoy some of Malaysia's popular food and hospitality onboard our flights as well," he said.

"We will also continue to improve other services, such as our Internet and mobile bookings.

"We are now in the midst of completing our mobile and Web check-in system. We hope to introduce this in March."

Despite the airline's enthusiasm to improve the quality of its services, Fernandes stressed that AirAsia will remain as a budget airline.

"AirAsia is successful because we are very focused in our business model, which is providing affordable airline service.

"The other improvements that we are doing are basically to improve passengers' experience when flying with us. We want to be an LCC offering five-star service," he said.

Fernandes also said that AirAsia will continue to look out for potential joint-venture opportunities with symbiotic benefits for the parties involved.

It is in the process of establishing a potential joint venture in the Philippines and Vietnam.

In addition, the airline plans to introduce more routes, add frequencies and develop the existing ones.

AirAsia's Pre-tax Profit Up 137 Pct To RM202.024 Mln In Q2 '08

KUALA LUMPUR, Feb 27 (Bernama) -- Low cost carrier AirAsia Bhd has posted a pre-tax profit of RM202.024 million for its second quarter ended Dec 31, 2007 up by 137 percent from the RM85.189 million in the previous corresponding quarter.

Revenue grew 43 percent to RM632.792 million from RM442.835 million on the back of a 21 percent growth in passenger volume, 17 percent higher average ticket prices and 49 percent growth in ancillary income.

It said these reflected the increased service penetration and the success of the firm's travel insurance as well as greater number of hotel rooms booked through its website portal.

Chief executive officer Datuk Tony Fernandes said in a statement today the demand for AirAsia's low fares remained strong, with its load factors held at high levels despite a significant capacity addition of 40 percent.

"Due to the higher average fares and ancillary income, yield was 11 percent higher than in the same period last year," he added.

He said the combination of higher yields and contained unit cost had resulted in a net profit of RM246 million, a 73 percent growth compared to the same period last year.

Despite soaring fuel prices, AirAsia's profit margins also expanded, contrary to initial reservations, he noted.

Fernandes said the airline is forecasting a passenger growth of 20 percent in 2008 while the bulk of the new capacity will be for international routes which are relatively longer distance sectors.

"But based on the expectation that some routes will mature and continued strong contribution from ancillary income, we expect yields to remain largely flat for the year," he added.

He expected cost items excluding fuel to reduce further due to the induction of cost efficient Airbus A320 aircraft into the fleet and productivity drivers.

---------------------------------------------------------------------------------

AirAsia upbeat after posting strong profits

KUALA LUMPUR, Feb 27, 2008 (AFP) - AirAsia, Asia's largest low-cost carrier, said Wednesday the outlook for 2008 was bright despite volatile oil prices after posting a 73 percent profits surge in the quarter ending December 2007.

Tony Fernandes, group chief executive officer, said passenger volume was expected to grow by 20 percent in 2008 on the back of lower operating costs with the introduction of new efficient Airbus A320 aircraft.

"Cost items excluding fuel is expected to reduce further due to the induction of cost efficient Airbus A320 aircraft into the fleet," he said.

AirAsia has 26 A320 aircraft and 39 Boeing 737s serving 90 routes. It has ordered 175 A320 planes, becoming Airbus's largest customer for the model, which can carry between 150 and 180 passengers depending on its configuration.

AirAsia said its profits soared to 246 million ringgit (77 million dollars) for the three-month period ended December 31, 2007 after 24 consecutive profitable quarters.

"We are now the highest profit margin airline in the world," Fernandes said, adding his firm had posted robust growth and record profits last year.

Revenue for the quarter was 633 million ringgit, up 43 percent, while passenger volume jumped 21 percent, he said.

Fernandes said the demand for low fares remained strong and that the airline's load factors "held up at high levels."

But he said "escalating and volatile fuel price remains as our principle challenge for the year."

AirAsia's shares closed flat at 1.54 ringgit each.

The firm, which launched as a budget carrier in December 2001 with just two aircraft, has become a significant player in the industry.

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 Singapore, Thailand, Indonesia, the Philippines and China.

AirAsia quarterly earnings soar
By Kang Siew Li
Published: 2008/02/28




The combination of higher yields and contained unit cost have resulted in a fourth-quarter net profit of RM246 million, a 73 per cent growth from a year ago



BUDGET carrier AirAsia Bhd's net profit in the October-December 2007 quarter soared 73 per cent from a year ago, helped by increased passenger traffic, higher fares and growth in ancillary income from services such as hotel bookings and travel insurance.

Net profit rose to RM245.7 million for the fourth quarter, from RM142.1 million in the same period of the previous year.

Quarterly revenue rose 43 per cent to RM632.8 million from RM442.8 million.

For the six-month period, net profit doubled to RM425.7 million from RM212.1 million for the corresponding period in 2006. Revenue for the half year was RM1.1 billion against RM774.9 million a year ago.

The airline has changed its financial year ending from June to December, starting with the financial period July 1 2007 to December 31 2007.

Chief executive officer Datuk Tony Fernandes said AirAsia had the highest operating profit margin of the world's airlines in 2007, at 23.5 per cent, higher than the average of all the low-cost carriers, which was 9.6 per cent.

Operating margin measures profit or loss as a percentage of the airline's total operating revenue.

AirAsia carried 6.5 million domestic passengers last year, overtaking Malaysia Airlines' (MAS) 5.4 million passengers to become the largest domestic airline.

"Becoming the largest domestic airline has proved that both AirAsia and MAS can be successful. It shows that the government's rationalisation (of domestic routes) was the right thing to do," Fernandes told Business Times yesterday.

Fernandes also said escalating fuel prices would not slow or derail the airline's growth plans for the year, thanks to the past six years of investments in its network.

AirAsia profit rises to RM246mil

By CHAN CHING THUT

PETALING JAYA: AirAsia Bhd’s net profit for the quarter ended Dec 31 expanded 73% to RM245.72mil from RM142.05mil in the previous corresponding quarter due to higher yields and contained unit cost.

Revenue rose 43% to RM632.72mil from RM442.84mil previously. This was attributed to 21% growth in passenger volume, 17% higher average ticket sales and 49% growth in ancillary income.

Group chief executive officer Datuk Tony Fernandes said demand for low fares remained strong and load factors were at high levels despite significant capacity addition of 40%.

“Ancillary income rose 49% to RM41.53mil. This reflects the increased service penetration and the success of our travel insurance and greater number of hotel rooms booked through our website.


An AirAsia plane taxis on the runway after landing at Singapore's Changi Airport.
“Due to the higher average fares and ancillary income, yield was 11% higher than the previous corresponding period,” he said in a statement.

Unit cost was 3.43 US cents per available seat kilometre, which was 7% higher due to unit fuel price increasing 31% to US$101 per barrel in the period.

Fernandes said fuel hedge had partially mitigated the impact of rising fuel prices with a net contribution of RM17mil in the quarter.

The budget carrier also recorded its highest profit margin so far in comparison with other airlines worldwide. Based on revenue of RM1.92bil and earnings before interest, taxes, depreciation/amortisation and rent (Ebitdar) of RM671.02mil for the full 12 months of 2007, margin was 34.9%.

In comparison, airlines such as VirginBlue, EasyJet and Ryanair had Ebitdar margin of 25.3%, 16.6% and 29.3% respectively.

Beginning this year, AirAsia changed its financial year-end to Dec 31 from June 30.

Fernandes forecast 20% growth in passenger volume for 2008.

“The bulk of new capacity will be injected into international routes, which are relatively longer-distance sectors. Based on the expectation that some routes will mature and continuous strong contribution from ancillary income, we expect yields to remain largely flat for the year.

“Cost items, excluding fuel, are expected to reduce further due to the induction of cost-efficient Airbus A320 aircraft into the fleet and productivity drivers,” he said.

With the assumption that WTI oil prices remained above US$90 per barrel, 30% of AirAsia’s fuel requirements were hedged from January to June at an equivalent price of US$79.50 per barrel.

Despite worry of a slowdown in the world economy, tightening credit and rising cost of aircraft and fuel, Fernandes remained “bullish and optimistic” of the airline industry for the next five years.

“These factors are seen as doom and gloom for airlines but it is an opportunity for AirAsia. If there is an economic recession, airlines such as us, which focus on value and low fares, would benefit,” he told StarBiz.

On the possibility of AirAsia consolidating or forming partnership with local or foreign airlines, Fernandes said he believed in organic growth as the airline had grown without acquisition.

Latest info,KCH base will be closed in the near future,with all flights exKCH originating from KUL,JHB and BKI.By May 08 all stations will be 100% A320.New destinations for AXM/AK will be HCM/SGN (Ho Chi Min / Saigon) and south India.New company JV will be in Vietnam (Vina AirAsia) and the Philipines (Phil AirAsia).Next AirAsiaX (XAX/D7) destinations will be Pearth and Melbourne in Australia and Amritsar in India.

where did u hear that stupid rumours? kuching is a very big market for AK in term of passengers and even bigger than JHB base.It is a waste for them to closed this hub.just for ur info, beginning may08, kuching base will start operate the Kch-Bali and Kch - JKT.This source is viable as it is shown in Berita harian today post..

my friend in AK. ex military guy. Management pilot. Captain (A330 and A320) with over 6000 TT. Stupid or not we'll see. And i prefer to believe my friend compared to what was written in newspaper. Flights to and from KCH, like i said, will originate from other AK bases. So KCH-CGK flight may be done by a320 based in KUL, JHB, or BKI. As far as i believe my friend, we'll read about it in newspaper. It's only then you can tell me which is right and which is wrong.

where did u hear that stupid rumours? kuching is a very big market for AK in term of passengers and even bigger than JHB base.It is a waste for them to closed this hub.just for ur info, beginning may08, kuching base will start operate the Kch-Bali and Kch - JKT.This source is viable as it is shown in Berita harian today post..

its not a stupid rumour...the news already making its news in the local aviation forum, MW. AK's pilot confirmed it already. too bad...

FEEL FREE TO COMMENT.

Fasten Your Seat Belts : The Air Asia, Badawi, Singapore, Kamaludin, Tg Adnan, Kalimullah Story
Wednesday, 27 February 2008

By Little Bird

Kawan-kawan, please fasten your seat belts now. I thought that I knew something about what is really going on in the administration of Abdullah Badawi. Today I found out I have not even scratched the surface. The following is panas-panas news. You may want to hit the ejection button (not yours but theirs) after reading this.

Firstly, the shareholders and/or stakeholders of Air Asia (directly, indirectly, through proxies, etc.) include Kamaluddin bin Abdullah Badawi, Kalimullah Maseerul Hassan (also into Tune Hotels), Khairy Jamaluddin, Tony Fernandez, etc.

We all know the story of Air Asia. Well, we all thought it was a rags to riches story. It is actually a story about riches. The rags part is actually very hazy.

When MAS entered into a phase of 'restructuring' about three years ago, Air Asia, through Tony Fernandez, struck fast and furious.

Before we go further, you may want to ask why did MAS have to suffer yet another 'restructuring'? That is a story by itself for another day but just bear in mind that Badawi's brother, Ibrahim, is the owner of the catering company (Skychef?) that used to supply mineral water at RM35 a case to MAS.

With that kind of pricing, surely MAS would need 'restructuring'.

Anyway, Air Asia stepped in and pushed the Gomen for a 'rationalisation' of the domestic air routes in Malaysia. Air Asia asked to be given MAS' Sabah and Sarawak routes. MAS could keep flying in Semenanjung, they said. Despite objections by MAS, Air Asia was granted its wish.

But the wish did not just happen. Zaki, a fourth floor boy at the PM's office, helped Air Asia make its wish come true.

Once MAS lost its Sabah and Sarawak routes to Air Asia, there was a staff redundancy. So MAS had to organise a VSS. MAS demanded that since Air Asia was taking over their Sabah and Sarawak routes it would make some of their staff redundant so Air Asia should pay MAS some compensation.

Everyone (MAS, Gomen and even Air Asia) agreed that compensation was payable to MAS. But Air Asia would not pay anything. Finally, the Gomen (err that means you and me lah, Encik Taxpayer) paid the compensation to MAS, which MAS promptly used in one of the most expensive VSS payments in our history.

If your blood is starting to boil, stop reading and better cool off because it does not get better.

Then, within one year, Air Asia realised that the Sabah and Sarawak routes were not profitable. They never were. MAS was performing national service in Sabah and Sarawak. Flying chickens and goats is not a money-making venture.

No problem. Air Asia made another wish. They told the Gomen, we have to return these air routes back to MAS. Again MAS objected. Again overruled. Not relevant.

Then came the handing over ceremony of the air routes and the airplanes. When they took over the Sabah/Sarawak routes, Air Asia had 'acquired' seven airplanes from MAS in perfect working condition. (MAS does have one of the best safety records in the world.)

However, when Air Asia 'returned' the planes to MAS, only one was left in working condition. The other six planes were grounded, not fit for flying and could not fly.

In actual fact, Air Asia was cannibalising parts from the six planes to keep the seventh one flying. Again MAS objected. Again overruled. Not relevant. It eventually cost MAS in excess of RM50 million to make the planes flyable again. This was a direct subsidy to 'rags to riches' Air Asia's profits.

Then Air Asia started eyeing the lucrative KL-Singapore routes. Tighten your seat belts. This one will really jolt. But they went about it the roundabout way. They said they wanted to go international. They did (some) but international routes are tough. No Zaki, Badawi, Khairy, Kalimullah or Kamaluddin to make your wishes come true.

But the KL-Singapore sector was generating RM40 million in PROFITS to MAS. This was the plum in the pudding. Air Asia wanted it badly.

So they made another wish. It came true. This is how they did it. Air Asia's bid to break into the KL-Singapore sector was first discussed in Cabinet when Badawi was on holiday overseas. Najib chaired the meeting and Air Asia's application was rejected.

The application was rejected for two main reasons:

i. By 2009 the whole of ASEAN becomes open sky anyway. ASEAN airlines can fly to all ASEAN capitals without restrictions. So why open up KL-Singapore in double quick time?

ii. If budget flights are allowed between KL-Singapore, KLIA will die an unnatural death. KLIA will become a feeder airport for Singapore's Changi. People will fly from KL to Singapore and then fly off from Singapore to the rest of the world. MAS will then die a natural death. So the request was declined.

Then Badawi came back from his travels and asked Tengku Adnan the Minister of Tourism to prepare a paper on tourism, linking MAS, Air Asia, SIA, etc., to tourist arrivals. At the next Cabinet meeting chaired by Badawi, he asked Tengku Adnan to present the 'Cabinet paper'.

Insiders say that the paper was an 'out of Agenda' item - meaning it surprised everyone, but the dunggus approved it nonetheless. Air Asia got its wish again. Tengku Adnan also secured his Putrajaya seat.

Now here is the killer. Soon after Air Asia started flying the KL-Singapore sector, they started giving away 300,000 free tickets, 5 sen tickets and all the other gimmicks. Singapore is believed to be subsidising Air Asia for all these expensive gimmicks.

For SIA, losing RM40 million (S$17 million) profit from the KL-Singapore sector is chicken feed. Air Asia is feeding thousands of transit passengers from KL to Changi . Air Asia is providing RM19 bus rides from KL to KLIA. From KLIA, passengers fly almost free to Changi. From Changi the passengers can connect to the world.

Now, Air Asia is making another wish - they want to fly direct from Kuching, KK, Penang, Alor Setar, Kota Bharu, etc., to Changi. They will earn even more 'subsidies' from Singapore. KLIA will drop dead later, MAS will die first.

This is how we go from 'rags to riches'. And we all thought Tony Fernandez was such a great guy too. The shareholders and/or stakeholders of Air Asia (directly, indirectly, through proxies, etc.) include Kamaluddin bin Abdullah Badawi, Kalimullah Maseerul Hassan (also into Tune Hotels), Khairy Jamaluddin, Tony Fernandez, etc.

Yes, we believe in open skies, competition and all that. But friends, fellow Malaysians, this is the PM, his son, his S-I-L and his cronies lah. How can they sell out their own country? But this is what they are doing.

Kawan-kawan, come March 8th, 2008 you have an opportunity to hit the button for the ejecion seat. Hit the ejection button and send these people out into oblivion. Don't give them any parachutes either.

Lim Eng Ban

^^aduhh...macam2 cerita daa....dah bosan aku mendengarnya. bersepah2 cerita macam ni kat malaysia-today.

apa kata daripada membebel...baiklah nkorang 'beli' saham2 kalimullah/SIL/anak bodowi tu...habis cerita.

http://farm3.static.flickr.com/2005/2235283497_85c0da2bcd_b.jpg

http://farm3.static.flickr.com/2071/2236070346_61c375b2da_b.jpg
approaching Indonesian shore..

http://farm3.static.flickr.com/2360/2236065956_4484b17581_b.jpg
inside AK

http://farm3.static.flickr.com/2325/2236061796_f04462c4e4_b.jpg
me

its not a stupid rumour...the news already making its news in the local aviation forum, MW. AK's pilot confirmed it already. too bad...

how can tat be relate?how bout flight between kuching & other local airport within swk?

flights from KCH to other points in Sarawak or outside Sarawak will be like BKI-KCH-wherever. KUL-KCH-wherever. JHB-KCH-wherever. Just like once they operate KUL-PEN-medan and CGK-Medan-Penang.

Any reason for dehubbing Kuching?

Local Singapore media reports that Tiger and Jetstar are seeing 50% loads on flights between KL and Singapore. SQ and MH are reportedly giving a sigh of relief at the news.

What are loads like for AirAsia on the route? It was not mentioned at all in local media.

wat is the rationale of they doing as such since most passengers are originate from kuching?

for example, KCH-MIRI, KCH-SBW and KCH-BTU and vice versa is mostly loaded by those originate from kuching. Where is the logic for them to implement the BKI-KCH-SBW @ JHB-KCH-BKI?

However, the 'closing' of word hub is maybe due to kch didnt have the LCCT and AK has to impose high aircraft parking charges.They'll however transform KIA as a transit centre for them instead of placing their aircraft overnite here.

wat is the rationale of they doing as such since most passengers are originate from kuching?

for example, KCH-MIRI, KCH-SBW and KCH-BTU and vice versa is mostly loaded by those originate from kuching. Where is the logic for them to implement the BKI-KCH-SBW @ JHB-KCH-BKI?

However, the 'closing' of word hub is maybe due to kch didnt have the LCCT and AK has to impose high aircraft parking charges.They'll however transform KIA as a transit centre for them instead of placing their aircraft overnite here.

read the link below

http://www.malaysianwings.com/forum/index.php?showtopic=8398

AirAsia reports strong load for Kuala Lumpur-Singapore

AirAsia reports strong passenger load on its Kuala Lumpur-Singapore route, which reached over 85% in its first month in Feb-08. With the liberalization of the Kuala Lumpur-Singapore route since 01-Feb-08, AirAsia currently operates two daily services on the route.

AirAsia bookings to date have shown strong demand for this 55-minute route since its introduction. Both bookings for March and April have already surpassed the 50% load mark, which is a good indication that the carrier is set on achieving its target of over 85% load for the sector.

From the overall bookings to date including flights from/to Kuala Lumpur, over 63% guests travel for business, while over 37% travel for leisure. Malaysians made up a total of 59% of the passengers and 41% by Singaporeans.

AirAsia’s Regional Head of Commercial, Kathleen Tan, said “We have pursued this route for six years and finally, we are quite ecstatic to see our efforts paid off with such strong load for both ways… we are also working very closely with Singapore Tourism Board to promote places of interest in the island and are currently in discussions with them to see if we can offer attractive deals or discounts of up to 50% on theme park entry fees, etc for Malaysians visiting Singapore on AirAsia.”

The Kuala Lumpur-Singapore route is serviced by AirAsia’s new Airbus A320.

AirAsia currently serves 12 countries in the region and has the most extensive connectivity in the ASEAN region including China (Xiamen, Macau, Shenzen, Guangzhou as well as Hangzhou) and Gold Coast, Australia via AirAsia X.

© Centre for Asia Pacific Aviation. Date posted: 05-Mar-08

^^ I hear report that Tiger n Jetstar only achieved 60% load with one flight/day each

AirAsia - cheap and new plane
Tiger - cheap but bad press for its "inconsistent" services
JetStar - expensive relative to the rest but offers direct connection to ERL to KLS/XKL

AirAsia to fly to Jakarta, Medan from Penang

FROM March 30, AirAsia will start flying to Jakarta and Medan in Indonesia from Penang, its second and third international flights respectively from the island, after Bangkok.

AirAsia group chief executive Officer Datuk Tony Fernandes announced the new routes today as well as the company’s intention to gain rights to fly from Penang to China, Singapore and India the moment Penang builds a low cost carrier terminal (LCCT).

“Penang has been on the tourist route-map for decades. And we are confident that the state tourism board would help us promote this route. We would be investing around RM250 million in the next two years,” Tony told a press conference at the Penang International Airport today.

He also added that the airline company plans to make Penang its fourth and final hub within the country once it has a LCCT airport.

Meanwhile, Air Asia Indonesian marketing and distribution director Widijastoro Nugroho said Indonesians are very interested in medical tourism.

Thus, it has become the intention of AirAsia to boost medical tourism by ensuring Indonesians visit Penang, he said.

“We have done our calculations and by far, Penang has some of the best infrastructures and products for medical tourism within Southeast Asia. It has a great atmosphere, good medical facilities, great hotels and let’s not forget the superb food,” said Widijastoro.

Penang state exco for Tourism, Development and Environment Teng Chang Yeow, meanwhile, said that the new routes and AirAsia’s plans for the near future would open a new chapter in Penang’s tourism.

“Greater air accessibility makes traveling easy, cheap and convenient. The Penang Tourism Action Council fully supports AirAsia and we will help promote them. We have already approved the land for the LCCT but now it lies in the hands of the other government agencies such as the Transport Department,” said Teng. — Bernama

we shud be proud with air asia....the best brand in malaysia after petronas

see, fourth and final hub within malaysia...

KUL
BKI
JHB
PEN.....

AirAsiaX (D7/XAX) will be getting the first owned A330 sometime in Oct 08 and the second in Nov 08.For 2009,D7 will be getting 3 to 4 A330s and in 2010,they will receive a whopping 9 A330s.TF has indicated that he will takeup on 10 A330s on option,so altogether there will be 25 A330.After the second A330-342 is taken,A330-301 XAA will be going into hangar for modifications and schedule maintainance.The ordered A330-342 are the E (enhanced) instead of X (extended) versions.

well, as i said it could be due to kch didnt have a LCCT.to park the aircraft overnite at an normal airport will cost them much.

AirAsia to invest RM250m in Penang
By Marina Emmanuel
Published: 2008/03/06


Group chief executive officer says the airline company plans to make Penang its fourth and final hub within Malaysia once it has a low-cost carrier terminal

http://www.btimes.com.my/Current_News/BTIMES/Friday/Nation/aapng.xml/Article/Current_News/BTIMES/Images/btgraph7/airasia6.jpg

LOW-COST carrier AirAsia Bhd will invest close to RM250 million in Penang over the next two years to make the island's international airport its fourth and final hub.

Group chief executive officer Datuk Tony Fernandes said the company will also aggressively pursue its proposal to set up a low-cost carrier terminal (LCCT) on the island state.

"We can set up the LCCT in as early as nine months if we can work out a deal with Malaysia Airports Holdings Bhd (MAHB)," he said in Penang yesterday when announcing the airline's direct flights from Penang to Jakarta and Medan respectively.



The new service, which will start on March 30, will be AirAsia's second and third international route respectively from Penang after Bangkok.

Fernandes also said that the airline is awaiting approval to fly the Penang-Singapore route. There are also plans to offer more flights from Penang to cities in India and China next year.

AirAsia plans to fly from Penang to cities like Shenzhen and Guangzhou, while Indian cities of Trivandrum, Chennai and Calcutta are also on the cards.

"The time frame for us to introduce these direct flights hinges on the setting up of the LCCT," Fernandes said.

The Penang state government has earmarked a 35ha site adjoining the Penang International Airport in Bayan Lepas for an LCCT.

Business Times had reported last August that the Penang government had already given its nod although final approval lies with the federal government, Department of Civil Aviation and MAHB.

Fernandes said when AirAsia first began flying into Penang in 2002, the airline had brought in 20,000 passengers.

AirAsia to start flying to three new destinations

KUALA LUMPUR: Hong Kong, Ho Chi Minh and Haikou are the three new destinations for AirAsia as part of its expansion of its Asian network.

The budget carrier will fly to the Vietnamese city on April 15 with fares starting from RM49.99.

AirAsia will start it much-awaited Kuala Lumpur-Hong Kong route on May 15 with fares starting from RM49.99.

The airline had obtained approval for this route earlier but had waited for an opportune time to launch it.

According to an airline statement, AirAsia will fly to Haikou on May 22 with introductory fares starting from RM29.99.

This city is located on the north of the Hainan island and AirAsia hopes to tap into a market of 400,000 Hainanese in Malaysia.

The airline will operate daily flights to all three destinations.

“With our current 140 weekly flights to China including AirAsia X flights, the three new routes will certainly boost our connectivity into China and vice versa, making AirAsia as the preferred choice of travel to China.

“The launch of this campaign will further strengthen our network to boost tourism in the country as well as place Kuala Lumpur as the gateway to our extensive route network of over 93 destinations in Asia,” the airline’s regional head of commercial Kathleen Tan said.

Ak has been tremendous!!good job tony.keep it up

Wow !! Very good news !! Thanks rizal n tony :D

Hope Indian cities will come soon !! Trivandrum and Tiruchirapalli !! Then Amritsar, Goa, Cochin, Jaipur, Agra, Calcutta, Coimbatore, Ahmedabad, Pune, Lucknow .... :banana:

i lurve india too.....where's my aishwarya rai???? huhu....india a gr8 city 2 visit!!! a city 4 backpakers....

taken from the australian forum

http://www.skyscrapercity.com/showthread.php?t=466195

i'm so happy for KL-HONG KONG!!:banana:

hong kong!..thats aweosme.i'm hoping for flight to japan as thier next route.

>> Fly to Hatyai also please!!!!!! :baaa:

Will they planning to fly to London? :banana:

AirAsia terbang harian KL-Yogyakarta 15 April

KUALA LUMPUR 13 Mac - Syarikat penerbangan tambang murah AirAsia Bhd. (AirAsia) telah merekodkan 75 peratus pesawat penuh ke Yogyakarta, selepas sebulan beroperasi sejak Februari lalu.

Sebagai menghargai sambutan di luar jangkaan tersebut, syarikat penerbangan itu yang kini mengadakan penerbangan empat kali seminggu bagi destinasi itu, hari ini mengumumkan penerbangan harian bagi laluan Kuala Lumpur - Yogyakarta yang akan bermula pada 15 April ini.

Penerbangan bagi laluan itu berlepas dari Terminal LCC menggunakan pesawat Airbus A320 yang mempunyai 180 tempat duduk.

Ketua Pegawai Eksekutif AirAsia, Datuk Tony Fernandes berkata, AirAsia gembira dengan sambutan yang diterima, membolehkan penerbangan harian dilaksanakan.

''Kami telah menjalankan promosi hebat kepada penduduk Malaysia tentang Yogyakarta dengan pemberian tempat duduk percuma dan jualan murah secara besar-besaran.

''Peningkatan jumlah penumpang menunjukkan kempen yang kami jalankan berjaya dan jumlah penumpang kami bertambah berbanding pesaing kami,'' katanya dalam satu kenyataan yang dikeluarkan di sini.

Katanya, penumpang boleh mula menempah tiket penerbangan secara dalam talian di laman web AirAsia dari 13 hingga 23 Mac untuk menikmati tawaran istimewa pada harga RM29 bagi penerbangan 15 April hingga 15 Mei ini.

Indonesia AirAsia to spend RM200m for new routes
From Anna Maria Samsudin
Published: 2008/03/14


Besides Kuala Lumpur, the airline wants to fly to Kota Kinabalu, Kuching and Penang from its two hubs, Jakarta and Bali, as well as Medan and Jogjakarta


JOGJAKARTA: Indonesia AirAsia, a 49 per cent subsidiary of AirAsia Bhd, will pump in RM200 million to develop more new routes to Malaysia from four of its points in Indonesia this year.

Instead of flying solely to Kuala Lumpur, the airline will be expanding its wings to other new destinations in Malaysia namely Kota Kinabalu, Kuching and Penang from its two hubs, Jakarta and Bali, as well as Medan and Jogjakarta.

To date, it has already obtained approval to fly to some of these destinations and expects to commence some of the flights as early as March 30.

AirAsia group chief executive officer Datuk Tony Fernandes said despite the huge investments and high risk involved, the airline is optimistic of making these new services profitable.


He pointed out that the budget airline has always been adventurous in introducing routes that have not been served by other airlines such as its Kuala Lumpur-Bandar Acheh and Kuala Lumpur-Bandung flights.

"I always believe that with the right marketing strategy as well as hard work and good planning, all routes can be profitable.

"Besides, I think operating routes not provided by others would enable us to widen our network and offer our passengers more destinations to go to," he told reporters after the official launch of the Kuala Lumpur-Jogjakarta flight here on Wednesday.

Indonesia AirAsia president-director Captain Dhamardi said looking at its aggressive international route expansion, the airline is optimistic of making profits by this year.

In line with Visit Indonesia Year, the airline aims to see its international fights account for 50 per cent of the flights operated from 30 per cent last year.

Apart from Malaysia, he said the airline also plans to introduce more international routes such as Jakarta-Bangkok and Bali-Perth.

"Looking at our route expansion plan, we expect to see higher yield from our international flights. We are optimistic of becoming profitable this year," he added.

Meanwhile, in addressing soaring fuel prices, Fernandes said the airline may need to review its fares if the need arises.

However, this would only be as a last resort measure after it has exhausted all of its options.

The four times weekly Kuala Lumpur-Jogjakarta flights, which is AirAsia's 13th entry into Indonesia and started on January 13 2008, has already reached more than 75 per cent average load factor. AirAsia will mount daily flights on the Kuala Lumpur-Jogjakarta route by April 15.

Going forward, under Indonesia AirAsia, more routes will be operated via Jogjakarta namely to Jakarta, Bali and Singapore.

AirAsia wants to be synonymous with travel

By B.K. SIDHU

PETALING JAYA: AirAsia is not a beverage, yet Datuk Tony Fernandes, who has been instrumental in building the low-cost airline, believes that the AirAsia brand can become as popular as Coca-Cola.

His wish is to see the AirAsia’s name plastered across billboards and banners in travel offices around the globe, even on watches and football stadiums, in six years.

A recent article described Coke as “truly a model of marketing power as its image has transcended national borders to cultural barriers to reach almost everyone on earth”.

http://biz.thestar.com.my/archives/2008/3/15/business/b_02airasia1.jpg
AirAsia aircraft parked at the KL International Airport. AirAsia, one of the pioneers of budget airline travel in the region, today flies 90 routes and to 47 destinations. –Reuters

“I would like the AirAsia brand to be as big as Coca-Cola,” Fernandes, the group CEO of AirAsia, told StarBiz in an interview recently.

“Given fair competition, we can be as big or even bigger than Singapore Airlines (SIA) too.

“We can be, and it is my goal that we, AirAsia, become bigger than SIA, and carry more passengers than SIA.”

He is using SIA as the benchmark as it is a well-recognised global airline brand although the national carrier, Malaysia Airlines, has for several years been winning accolades for having the world’s best crew.

But in terms of brand reach, Fernandes prefers the market reach to be as big as that of Coke.

“Even before AirAsia can fly to Europe, it was already flying Europeans and other nationalities around Asia and that just goes to show that our brand is spreading all over.

“AirAsia is a strong brand and an airline that has managed to create a market for itself. It has gone beyond Malaysia’s borders and would continue to carry the Malaysian flag to more countries,” he said.

Today, AirAsia flies 90 routes and to 47 destinations, has a fleet of 67 aircraft and has ordered 175 new aircraft in the hope of becoming as big as Ryanair. It employs nearly 5,000 people.


http://biz.thestar.com.my/archives/2008/3/15/business/b_02airasia2.jpg
People queuing before the AirAsia Penang sales office is opened at 9am to grab tickets offered during a promotion. With AirAsia, Malaysians now have the choice to travel cheap.

Ryanair, according to its website, was set up in 1985 and is today Europe’s largest low-fare airline. This year, Ryanair will carry 52 million passengers on 645 low-fare routes across 26 European countries.

By the end of March, Ryanair will operate a fleet of 163 new Boeing 737-800 aircraft and has placed firm orders for 99 more new aircraft to be delivered over the next five years. The airline employs 5,000 people.

AirAsia's sister company, AirAsia X, is a long-haul low-cost carrier which began flying passengers last November. Its first destination was Australia's Gold Coast and the airline has now added Hangzhou to its network.

More destinations are on its route map but the airline needs to get new planes before it can start operating more routes. It wants to reach out to as far as London to connect Asians to Europe and vice-versa.

AirAsia was incorporated in 1983. It started off as a joint venture between Hicom Holdings Bhd and Mofaz Air Sdn Bhd but only took to the skies in November 1996 after a two-year delay.

The idea of setting up a second airline for Malaysia was to offer travellers new destinations to complement MAS' regional services. But it did do as expected and was sold to Tune Air Sdn Bhd in September 2001 for RM1.

The deal was completed five days before the Sept 11 attacks that threw the aviation sector into a tailspin. Many people had then wondered if Fernandes and his friends, who were from the music industry, knew how to operate an airline amid turbulent times. Not long after that, the Severe Acute Respiratory Syndrome outbreak also shook up the aviation sector.

Tune Air’s strategy was tactical. It re-launched the brand and used red as a base coat. The airline lured travellers by offering several hundreds free seats. Low-cost travel was a new thing then and the promoters of AirAsia just knew how to get people excited with its low, and at times zero, fares.

Many first timers flew with AirAsia and this speaks volumes of the airline's tagline “Now, everyone can fly.” With AirAsia, Malaysians had the choice to travel cheap and it is no a surprise that one planning a holiday would ask: “Does AirAsia fly there?''

AirAsia, as a brand, has gone beyond cities to towns and small villages. Today, it links many Asian cities to Kuala Lumpur. Soon, it will be linking Europe, India and the Middle East to Malaysia.

Entering the Singapore market was a major coup for the airline, which initially had no future in the republic. Today, it provides the linkage for many travellers from Singapore and via Singapore to Malaysia and Asia at low fares.

Giving away free seats and dropping fares to very low levels has helped the brand spread. Encouraging travellers to book online has allowed many to book seats from remote cities anywhere in the world.

Fernandes said many new routes and destinations were on the cards. “We will fly to Amritsar and London soon,” he promises.

Many AirAsia billboards and banners will be put up in other countries but will the AirAsia brand eventually come close to the omnipresence of the Cocal-Cola name?

A lot of work lies ahead of AirAsia as the clock starts ticking.

Air Asia will reopen KL-Pekanbaru on 31 Mar 2008

AirAsia tawar 50,000 tempat duduk percuma
Oleh Shahrizan Salian

AIRASIA Bhd menawarkan 50,000 tempat duduk percuma bagi semua destinasi domestik daripada empat hab penerbangannya di Terminal Penerbangan Tambang Murah (LCCT) Sepang, Kuching, Kota Kinabalu dan Johor Bahru.

Tempat duduk percuma itu yang hanya boleh diperoleh menerusi tempahan dalam talian itu mula ditawarkan semalam dan berakhir Jumaat ini bagi tempoh penerbangan bermula 11 Jun hingga 25 September ini.

Ketua Komersial Serantau AirAsia, Kathleen Tan, berkata bagi hab LLCT, AirAsia akan menawarkan tempat duduk ke 14 destinasi domestik iaitu Alor Star, Bintulu, Johor Bahru, Kota Bahru, Kota Kinabalu, Kuching, Labuan, Langkawi, Miri, Penang, Sibu, Sandakan, Tawau dan Terengganu.



Katanya, bagi hab Johor Bahru pula, ia menawarkan tempat duduk percuma ke Miri, Penang, Sibu dan Kota Kinabalu.

“Bagi hab Malaysia Timur pula, penerbangan dari Kuching akan menawarkan tempat duduk percuma ke Bintulu, Johor Bahru, Kota Kinabalu, Miri, Penang dan Sibu manakala hab Kota Kinabalu menawarkan tiket percuma ke Miri, Pulau Pinang, Sandakan dan Tawau,” katanya dalam satu kenyataan, semalam.

Tan berkata, tawaran itu adalah bagi menghargai penumpang yang memberi sokongan kepada AirAsia sejak ia melancarkan perkhidmatan penerbangan tambang murahnya.

Katanya, kempen tempat duduk percuma itu juga adalah sebahagian daripada pencapaian syarikat yang dijangka bakal mencatatkan penumpang ke-50 juta menjelang Jun tahun ini.

“Sambutan yang diberikan penumpang kini membolehkan AirAsia menjadi syarikat penerbangan tambang murah utama dan terbesar berbanding ketika kami memulakan operasi enam tahun lalu,” katanya.

Beliau menambah, promosi itu membolehkan orang ramai mengambil peluang untuk melawat keluarga dan rakan dengan menggunakan penerbangan yang ditawarkan AirAsia.

“AirAsia akan terus komited dalam menyediakan produk dan perkhidmatan yang selesa dan relevan kepada penumpang kami sepanjang masa,” katanya.

AirAsia to fly to India by Oct

Email us your feedback at fd@bizedge.com


KUALA LUMPUR: Low-cost carrier AirAsia Bhd expects to open a new route to India by October this year, its chief executive officer Datuk Tony Fernandes said.

“We are in the final process of applying to the Indian government. We received the rights from the Malaysian government,” he told reporters on the sidelines of a political ceramah in Bangsar.

Fernandes said while AirAsia X would focus on flying to Amritsar in Punjab, AirAsia would be looking at a new route to South India but it had not decided on the exact destination.

“It’s our final frontier. I am sounding like Star Trek. The first plan was Malaysia. Second plan was Asean, which we kind of dominated. Then, we went into China, which we are growing, and finally India. With that our mission will be completed,” he added.

AirAsia X to fly to London by year-end

By EUGENE MAHALINGAM

SEPANG: AirAsia X Sdn Bhd, the long-haul low-cost carrier and sister company of AirAsia Bhd, is targeting flights to London by year-end.

Chief executive officer Azran Osman-Rani said it hoped to have flights to London in time for Christmas. The time frame was to accommodate delivery of a long-haul aircraft that it hoped to secure within six months.

“We need to get a plane that is capable of accommodating direct flights. Right now, we do not have the plane but over the next six months, we hope to get at least one, if not two,” he said prior to the unveiling of AirAsia’s AT&T Williams Formula One A320 aircraft yesterday.

http://biz.thestar.com.my/archives/2008/3/21/business/b_5azran.jpg
Azran Osman-Rani
“If we use our existing fleet, we would need to stop in between. That would not bode well when competing against the more aggressive Middle Eastern airlines.”

AirAsia X, which covers flights that are longer than four hours, began flying passengers last November. Its first destination was Australia’s Gold Coast, which had already registered over 100,000 bookings to date, according to Azran.

He also said having flights to London would be a significant boost to the group.

“It is going to be huge. For our flights to the Gold Coast for instance, travellers from Britain were the third highest number of passengers after Malaysians and Australians,” he said.

“This means that (British) travellers are actually coming to Malaysia to fly to Australia. Today, people travelling to and from Britain and Australia are paying a fortune for tickets and we can offer similar trips at a fraction of the cost,” Azran added.

Meanwhile, AirAsia is now flying an A320 aircraft bearing the colours of the AT&T Williams Formula One racing car.

The unveiling of the aircraft yesterday was held to coincide with the 10th edition of the F1 Petronas Malaysian Grand Prix this Sunday.

The unveiling also marks the group’s extended three-year partnership with the AT&T Williams Formula One team. Drivers Nico Rosberg and Kazuki Nakajima were present at the event.

Why Is KL Missing Out On Aussie Tourists?

MELBOURNE, March 23 (Bernama) -- AirAsia chief executve Tony Fernandes cannot understand "the lack of (Aussie) tourists Kuala Lumpur attracts".

In an interview with travel writer Lisa Allen, from The Australian Financial Review, Fernandes says the Malaysian capital punches well above its weight when it comes to providing excellent shopping, food and cut-price luxury hotels in comparison with other Asian destinations.

The Australian Bureau of Statistics reveals that while Malaysia attracted just 15,700 Australian tourists in January this year, up nearly seven per cent on January 2007, Thailand attracted almost double the number, drawing 30,800, up 14.1 per cent. Indonesia drew 26,700 Australians, up 43.5 per cent in January while Singapore received 16,200 Australian tourists, up 6.6 per cent. Even Vietnam did better than Malaysia, luring 17,800 Aussies, up nearly 12 per cent on the corresponding period.

Fernandes told Lisa Allen Malaysia lacked "sufficient global marketing campaigns".

He said Malaysia Airlines was not marketing the destination properly. "I think Malaysia Airlines has done a very poor job in marketing," he is quoted in The Australian Financial Review as saying.

"Most Australians use it (MAS) to go to London. We (AirAsia) are marketing Kuala Lumpur as a hub, as Singapore does," he said.

"You stay in a five-star hotel (in KL) at a 10th of the price of most places (in the region).

"You can use AsiaAsia to fly (cheaply) to other destinations such as Siem Reap, Borobudur or the jungles of East Malaysia," Fernandes said.

AirAsia flies from Kuala Lumpur to the Gold Coast and the service is proving popular. (really?, anyway had a very good xperience recently and it was my first time on AirAsia)

-- BERNAMA

Lack of global marketing? Bullshit. I ave seen so many Visit Malaysia Ads in Adelaide and Melbourne. Just accept that Aussies are not traditional tourists in SEA. Most OZ blokes I know even do their internship as far as London rather than Asia. It's their mentality to skip Asia as much as possible. Their media is also to blame for making SEA look like hell.

aussie goes to bangkok/bali for its georgeus temples and culture..

KL?..what KL got..?skyscrapers,shopping complex and KLCC?...huh, if were australian, i would also NOT to prefer KL as my destination....

it's a common sense...Tony!

I was at the F1 race yesterday and was proud to see 2 major companies of Malaysia (AirAsia and Petronas) sponsoring the F1 Teams. I love seeing the AT&T Williams car with AirAsia stickers passing by while an AirAsia A320 climbing up the sky since KLIA is right beside the circuit...

KL- Kuantan coming soon !

Ex-Air Canada CEO takes stake in AirAsia X
By Anna Maria Samsudin
Published: 2008/03/25


ACE Aviation's chairman Robert Milton says what attracted him is that AirAsia X is the first truly low-cost long-haul carrier

http://www.btimes.com.my/Current_News/BTIMES/Tuesday/Nation/amcanada.xml/Article/Current_News/BTIMES/Images/btgraph7/milton.jpg

AIR Canada's former chairman and chief executive officer, Robert Milton, has joined the list of AirAsia X's prominent international shareholders after acquiring a stake in parent company Aero Ventures Sdn Bhd.

His less than five per cent share in Aero Ventures, which owns 48 per cent of the long-haul budget airline, is estimated to be worth some RM28 million, based on the airline's current value of RM1.2 billion.

AirAsia X chief executive officer Azran Osman-Rani said that having Milton on board will contribute to its business as it can capitalise on the latter's vast expertise and knowledge of the industry.

Milton's participation will also serve as recognition of foreign investors' growing confidence in AirAsia X's business model, he added.


"Robert brings us the credibility and experience. This is indeed valuable for a start-up company like AirAsia X as it will give financiers more confidence in our business," Azran told reporters in Kuala Lumpur yesterday.

Aero Ventures is a holding company founded by Datuk Seri Kalimullah Hassan, AirAsia Bhd chief executive officer Datuk Tony Fernandes and deputy chief executive officer Datuk Kamarudin Meranun, and Lim Kian Onn to invest in aviation ventures.

Other shareholders in AirAsia X include Sir Richard Branson's Virgin group (16 per cent), AirAsia (16 per cent), Manara Consortium (10 per cent) and Orix Corp (10 per cent).

Milton said he was excited to be part of an airline that will revolutionise air travel.

"What attracted me to this proposition was the fact that AirAsia X is the first truly low-cost long-haul carrier, with its base in Malaysia and focused on the Asia-Pacific region, that holds great promise and to which I have strong personal ties," he added.

Milton is the chairman and chief executive officer of ACE Aviation Holdings, which owns 75 per cent of Air Canada. It also holds stakes in publicly-listed Aeroplan, a loyalty management company, and Jazz, Canada's second largest airline.

ACE Aviation also has an interest in ACTS - an aircraft maintenance, repair and overhaul (MRO) organisation - in partnership with KKR and Sageview.

Milton, regarded as one of the world's most experienced aviation executives, is best known for his successful restructuring of Air Canada.

On AirAsia X's listing plans, Azran said it expects to undertake the exercise within two to three years, adding that it would prefer to list in Malaysia.

"We would prefer to be listed on Bursa Malaysia. I believe that the investment climate in Malaysia has matured," he said.

aussie goes to bangkok/bali for its georgeus temples and culture..

KL?..what KL got..?skyscrapers,shopping complex and KLCC?...huh, if were australian, i would also NOT to prefer KL as my destination....

it's a common sense...Tony!

bangkok not 4 da temples lah my friend.....its da sex sex sex industry.......lol!!!

Air Canada group chief invests in AirAsia X

By C. S. TAN

KUALA LUMPUR: Robert A. Milton, chairman and chief executive officer of Ace Aviation Holdings Inc, parent company of Air Canada, is an investor in AirAsia X Sdn Bhd, and advising it as it charts a course as a low-cost, long-haul carrier.

Milton, who was CEO of Air Canada from 1999 to 2007, said he owned “a very small piece of Aero Ventures Sdn Bhd”, which holds a 48% stake in AirAsia X.

http://biz.thestar.com.my/archives/2008/3/25/business/b_01milton.jpg
Robert A. Milton (right) and Datuk Tony Fernandes.

He is a founding shareholder of Aero Ventures although this was not revealed by the company until yesterday. Milton invested in his personal capacity with the approval of the Ace Aviation board.

Although Air Canada is a full-service airline, Milton told the media here yesterday that he could advise AirAsia X. “I know where the pitfalls are in the long-haul business,” he said.

Furthermore, Air Canada is an innovative airline group. Its frequent-flyer programme, a cost centre for other airlines, was formed into the Aeroplan Income Fund and spun off and listed on the Toronto Stock Exchange.

Aeroplan, with a market value of RM9.6bil, had a larger market cap than many airlines, he said.

Ace Aviation, which owns 75% of Air Canada, holds a 20% stake in Aeroplan.

Air Canada sells seats to Aeroplan, and while the banks pay the airline on day one, the points “live” for 30 months.

However, 17% of that didn't get used, he said.

When Milton led Air Canada, he looked at ways for the 70-year-old airline to operate differently.

“We pursued a low-cost approach. For our domestic routes, 65% of sales are made on the Internet. That's extraordinarily high for a full-service airline,” he said.

The airline is also transparent with its charges for the choices passengers make. “If you want food, you pay for it. If you don't have check-in luggage, we give you a C$3 discount,” he added.

He will also be helping AirAsia X source for long-haul aircraft. AirAsia X chief executive officer Azran Osman-Rani said the airline had just one leased plane but would have three by the end of the year. These would be for regional routes and he is looking to lease an Airbus A340 for the London route.

Azran said he was thrilled to have Milton on board AirAsia X as the latter had so much experience for the fledgling airline to capitalise on.

AirAsia X was able to make share placements at a good valuation partly because of the participation of the Virgin group and Milton, he said.

“Ultimately, billions of dollars of debts will be required for aircraft financing and the banks will want to see a company that is well guided, well advised,” he added.

Aero Ventures' founding shareholder Datuk Tony Fernandes said he was against in-flight entertainment systems, even on long-haul flights, but after looking at how Air Canada charged for that, it was being considered.

AirAsia X, which started flying last November, “is already profitable, with a net income of RM300,000 last month,” he added.

AirAsia traffic resilient, says Fernandes

By C.S. TAN

KUALA LUMPUR: Passenger traffic at AirAsia Bhd is holding up and meeting management targets, contrary to concerns over a global, US-led economic slowdown.

Its chief executive officer Datuk Tony Fernandes said the company's business was not experiencing a slowdown. “We're still seeing buoyant demand,” he told StarBiz yesterday.

http://biz.thestar.com.my/archives/2008/3/25/business/b_03tony.jpg
Datuk Tony Fernandes

The reason for that could be travellers “trading down” when there is a slowdown or uncertainties over the economy.

“When I was at Warner Music, we'd fly economy class whenever there was an economic slowdown,” he said.

Fernandes was vice-president of Warner Music for the Asean area before he set up the airline.

In addition to more affordable fares, passenger traffic was also growing because “we're developing new markets all the time,” he added.

On the horizon, new destinations for AirAsia include Haikou in China, Ho Chi Minh City and Hong Kong.

While AirAsia already flies to Macau and Shenzhen, which also serves the Hong Kong market, “we want to fly everywhere,” according to Fernandes.

There were customers who wanted to fly directly into Hong Kong and were willing to pay a higher fare for that “but it'll still be better value than the full service airlines,” he added.

AirAsia will start flying to Ho Chi Minh City next month and to Haikou and Hong Kong in May.

To analysts' remarks that AirAsia's pre-tax profit of RM202mil in its second quarter ended Dec 31, 2007 included a foreign exchange (forex) gain of RM107mil, but was nevertheless good even after they stripped that out, Fernandes said most of the forex gain was recurring.

“We bought planes in US dollars and had swapped that into ringgit. We're repaying the loans in ringgit. When we bought the planes, the US dollar was RM3.80,” he said.

The dollar has since weakened to about RM3.20. Instead of taking a one-off translation gain, the gains are registered each month as the loan repayments are made.

ACE CEO revealed as AirAsia X shareholder
by Gan Yen Kuan, 25 Mar 2008 4:55 PM
THEEDGEDAILY

http://www.theedgedaily.com/cms/storage/images/com.tms.cms.image.Image_e51397af-cb73c03a-158f1fa0-f6099da0/1/cover_inside.jpg

KUALA LUMPUR: Aero Ventures Sdn Bhd, which owns 48% of AirAsia X Sdn Bhd, yesterday unveiled the identity of another of its founding shareholders — Robert Milton who is the chairman, president and chief executive officer of ACE Aviation Holdings Inc. It is the parent company of Air Canada.

Milton, in his personal capacity, took up a less than 5% stake in Aero Ventures at par in mid-2007. He founded the company together with AirAsia Bhd CEO Datuk Tony Fernandes, Datuk Seri Kalimullah Hassan, Datuk Kamarudin Meranun and Lim Kian Onn. Aero Ventures called the media to unveil Milton’s identity yesterday, “in conjunction with Milton’s visit to Kuala Lumpur”.

In an interview here yesterday, Milton said AirAsia X was a “truly low-cost long-haul airline”, and he hoped his expertise in network expansion, route scheduling and aircraft purchasing would contribute to the growth of AirAsia X.

“I’ve listened to many plans (about low-cost long-haul airline) but they just didn’t make sense because the cost to produce a seat just was not low enough. But I really like this story (from Fernandes) in terms of what they are doing with the airline and the way they are designing it.

“It’s also because of the fact that it’s based in Malaysia. In the region, you have strong underlying economic growth. It’s a combination of the growth, the design of the airline and the association of AirAsia,” he said.

In view of his relationship with Air Canada, Milton said it would be possible for Air Canada and AirAsia X to collaborate in the future. “If it benefits both Air Canada and AirAsia X, there will be partnerships.”

Flying out of its four hubs in Toronto, Montreal, Vancouver and Calgary, Air Canada has extensive network in Asia, Europe and Latin America. Air Canada is also the founding member of Star Alliance, an alliance that consists of 19 airlines.

Milton, who has been in the aviation industry for more than 20 years, was the chairman, president and CEO of Air Canada from August 1999 to December 2004. He was appointed to his current position on Sept 30, 2004. He is best known in the industry for his successful restructuring of Air Canada.

Fernandes said he and Milton came to know each other last year during a conference by International Air Transport Association (IATA) in Tokyo, Japan, and they subsequently became good friends.

He said Milton was excited about the idea of a low-cost long-haul airline. “We always speak about ideas. (When) I mentioned to Robert that we are going to start a (low-cost) long-haul carrier, he straight away looked at ACE being a shareholder.”

However, ACE Aviation did not manage to take up a stake in AirAsia X because Sir Richard Branson’s Virgin group had started the negotiations with AirAsia X ahead of ACE Aviation, Milton said.

“They (ACE Aviation’s directors) were aware (of AirAsia X) and they were ready (to buy into AirAsia X) but Tony was so far ahead with Virgin,” he said.

Although ACE Aviation did not invest in AirAsia X, Milton was however invited by Fernandes to join the team. “I asked my board of directors if this will be alright and they said yes, and that’s how I made it here,” Milton said.

AirAsia X is in need of more capital for its fleet expansion plan. Last month, it roped in two new shareholders — Bahrain-based Manara Consortium and Japan-based Orix Corp, which took a 10% stake each in the airline. With that, Aero Ventures’s stake in AirAsia X now stands at 48%, followed by AirAsia and Virgin group, which has a 16% stake each.

AirAsia X launched its maiden flight in November last year to Gold Coast, Australia. Last month, it started flying to Hangzhou, China. Both the routes are serviced by one leased A330 aircraft. Another two leased A330 aircraft would come on stream by year-end, AirAsia X CEO Azran Osman-Rani said, adding that it would make a major announcement soon on its fleet expansion plan.

AirAsia X to buy 10 more Airbus A330s
Published: 2008/03/26



MALAYSIA'S first long-haul budget airline AirAsia X will buy another 10 Airbus A330 aircraft as part of its fleet expansion, a top company official said yesterday.

“We are exercising our option for 10 more A330s,” chief executive Azran Osman-Rani told Dow Jones Newswires.

He didn’t say how much the deal is worth. The company said a signing ceremony with Airbus will be held Thursday. No further details are immediately available.

AirAsia X, which launched flights in November, has already ordered 15 wide-bodied A330s, two of which will be delivered this year and another two in 2009.


The new purchase comes after AirAsia X raised more funds last month by selling a 10 per cent stake each to Japan’s Orix Group and Bahrain-based Manara Consortium for a total of RM250 million (US$78 million; euro51 million).

After the sale is completed, AirAsia X’s parent, Aero Ventures Sdn Bhd, will own 48 per cent of the carrier while billionaire Richard Branson’s Virgin Group will hold 16 per cent. AirAsia, the region’s top low-cost carrier, holds the remaining 16 per cent.

AirAsia X now flies from Kuala Lumpur to Australia’s Gold Coast and to Hangzhou in China using leased aircraft.

The airline hopes to add 50 extra-wide body A350 or Boeing 787-10 jetliners to its fleet as it expands routes to China, Britain, India, South Korea, Japan and the Middle East over the next few years, officials said. - AP

irAsia X: Plans to fly to UK hinge on plane availability
Published: 2008/03/27




AirAsia X has received approvals from the authorities for the UK flight and now just needs the aircraft, says its chief executive officer


LONG haul budget carrier AirAsia X’s plans to fly to UK this year will depend on the availability of aircraft, its chief executive officer Azran Osman-Rani said.

“We are looking at the possibility of getting long range aircraft such as Airbus A340 to enable us to go to UK. At the very least, we will need two aircraft,” he said, adding that the carrier is open to the option of acquiring or leasing them.

AirAsia X has received approvals from the authorities for the UK flight and now just needs the aircraft, he said at a press conference following the signing of an agreement today between AirAsia X and Airbus.

The airline is acquiring an additional 10 A330 aircraft to be delivered in the next five years. The deal is worth US$2 billion.


AirAsia X earlier this year announced its plans to fly to UK this year.

Azran said AirAsia X had been offered the A340 previously but it was not taken up as the price was too high.

AirAsia X has also ordered 15 wide-bodied A330s, two of which will be delivered this year and another two in 2009.

It now flies from Kuala Lumpur to Australia’s Gold Coast and to Hangzhou in China using leased aircraft.

The airline also hopes to add 50 extra-wide body A350 or Boeing 787-10 jetliners to its fleet as it expands routes to China, Britain, India, South Korea, Japan and the Middle East over the next few years.— Bernama

irAsia X: Plans to fly to UK hinge on plane availability
Published: 2008/03/27




AirAsia X has received approvals from the authorities for the UK flight and now just needs the aircraft, says its chief executive officer


LONG haul budget carrier AirAsia X’s plans to fly to UK this year will depend on the availability of aircraft, its chief executive officer Azran Osman-Rani said.

“We are looking at the possibility of getting long range aircraft such as Airbus A340 to enable us to go to UK. At the very least, we will need two aircraft,” he said, adding that the carrier is open to the option of acquiring or leasing them.

AirAsia X has received approvals from the authorities for the UK flight and now just needs the aircraft, he said at a press conference following the signing of an agreement today between AirAsia X and Airbus.

The airline is acquiring an additional 10 A330 aircraft to be delivered in the next five years. The deal is worth US$2 billion.


AirAsia X earlier this year announced its plans to fly to UK this year.

Azran said AirAsia X had been offered the A340 previously but it was not taken up as the price was too high.

AirAsia X has also ordered 15 wide-bodied A330s, two of which will be delivered this year and another two in 2009.

It now flies from Kuala Lumpur to Australia’s Gold Coast and to Hangzhou in China using leased aircraft.

The airline also hopes to add 50 extra-wide body A350 or Boeing 787-10 jetliners to its fleet as it expands routes to China, Britain, India, South Korea, Japan and the Middle East over the next few years.— Bernama

Airasia going to expand thier route to europe this year and I wonder why don't they order long range aircraft like A340 rather order an extra 10 of A330:) or they can order 2 A340 & 8 A330. A350 or Boeing 787 will take long time to deliver:)

they will lease 2 a340 for UK route. As for A330 replacement, announcement will be made and words around suggest that it will be a350, first delivery in 2013.

pheewwiitt....can imagine A345 in AK's livery now..with the red Trent 500 Engine...very Virgin-ish indeed!!

AirAsia X in US$2b deal with Airbus
By Anna Maria Samsuddin
Published: 2008/03/28


Meanwhile, Airbus chief operating officer has expressed confidence that MAS will not cancel its order of six A380s


BUDGET long-haul carrier AirAsia X has firmed up orders for 10 additional units of the A330-300, with a list value of US$2 billion (RM6.4 billion), bringing the airline's total order for the aircraft to 25 units.

Under an agreement signed with European-based airframe maker Airbus, the aircraft will be delivered progressively over the next five years.

Chief executive officer Azran Osman-Rani said the additional orders are in line with the airline's aggressive network expansion plans.

It aims to introduce more new medium-haul routes in Australia, China as well as India - targeting cities such as Amritsar, Poona, Jaipur, Calcutta and Ahmedabad.


The airline also plans to start flights to Japan by late 2009 or mid-2010.

To serve its long-haul networks, he said the carrier may buy 25 new generation widebody planes, either the A350s or the Boeing B787s.

"We now have more planes in our arsenal to ramp up our global route network. We will have real scale to dominate Asia Pacific over the next five years," he said at the agreement signing ceremony, witnessed by Transport Minister Datuk Ong Tee Keat in Kuala Lumpur yesterday.

Meanwhile, Azran said AirAsia X is also looking at buying or leasing two long-range A340s for its long-haul flights to London's Stansted Airport, scheduled to take off by the fourth quarter of this year.

"We've got UK and Malaysian government approvals and airport support. Everybody is ready to receive us ... but this depends on aircraft availability," he said.

AirAsia X, which commenced flights in November last year and had carried some 120,000 passengers, has already placed orders for 15 A330s, two of which will be delivered later this year and another two in 2009.

It now flies from Kuala Lumpur to Australia's Gold Coast and to Hangzhou in China using one leased plane.

Airbus chief operating officer John Leahy said the AirAsia group is reshaping the future of the Asia Pacific air transport industry.

"The long term confidence of AirAsia X in the long haul, low-cost model is inspirational and we are delighted to see this further endorsed by the A330."

Meanwhile, on the latest development on Malaysia Airline's six A380s order, Leahy expressed confidence that the national carrier will not cancel its order.

"No, we are not discussing a cancellation at this point. We don't want to comment on ongoing discussions and negotiations but I'll be hopeful that we'll have something to announce in the not-too-distant future," he added.

AirAsia X to add flights

KUALA LUMPUR: AirAsia X intends to fly to five more cities each in Australia and China with two additional A330 aircraft, which should come on stream by year-end.

Chief executive officer Azran Osman-Rani said the low-cost airline, which currently operates its long-haul service with a single A330 aircraft, would make an announcement soon on its new destinations.

“With these new aircraft, our strategy is to expand our core markets which we service at the moment,” he said after signing an agreement with Airbus chief operating officer for customers John Leahy for an additional 10 A330 aircraft with a list value of US$2bil yesterday.

In June last year, AirAsia X placed an order for 15 A330s.

http://biz.thestar.com.my/archives/2008/3/28/business/b_pg02azran.jpg
AirAsia X CEO Azran Osman-Rani (foreground and Airbus chief operating officer for customers John Leahy at the signing ceremony

“The aircraft would be delivered progressively over the next five years,” Azran said, adding that yesterday's contract would be financed by both domestic and international bank borrowings.

“The A330 has proven to be a profitable and efficient aircraft. As the world's lowest operating cost per seat aircraft in its segment, these uniquely configured A330 aircraft are critical to our mission to liberate long-haul air travel with low fares for customers,” he said.

AirAsia X currently flies four times weekly to Australia's Gold Coast, and five times weekly to Hangzhou in China.

Azran said the airline's plan over the next five years was to expand its routes to four cities in India and three cities each in South Korea, Japan and the Middle East.

“We would be flying to Japan by end-2009 or early 2010 as the Japanese airports have shown keen interest in our services,” he added.

Transport Minister Datuk Ong Tee Keat commended AirAsia X, which had sold some 120,000 seats to date.

“It is also pleasing to note that some 50% of its passenger traffic has been foreign nationals, in line with the government's vision of driving tourism in Malaysia,” he said.

He added that AirAsia X had doubled the total passenger traffic between Kuala Lumpur and Queensland in Australia, proving that the low-cost model stimulated new passenger demand and enhanced growth of the overall market.

AirAsia advertisement around Brisbane CBD, Australia !!!
http://img252.imageshack.us/img252/7115/img7269lv9.jpg

AirAsia going all out to promote KL in OzLand

awesome.lucky you.. can fly to KL anytime you want.

AirAsia boss: This year, we will...
FLY MORE PASSENGERS THAN S'PORE AIRLINES

SIA says comparison based on passenger numbers alone is meaningless

LAUGH all you want, but one day, AirAsia will be bigger than Singapore Airlines (SIA).

By Joyce Lim (The New Paper, Singapore)
27 March 2008

LAUGH all you want, but one day, AirAsia will be bigger than Singapore Airlines (SIA).

This is the brash claim of the Malaysian budget airline's chief, Mr Tony Fernandes, who added: 'We are already carrying more passengers than SIA.'

Dressed in a blue polo T-shirt and jeans, sans his signature AirAsia red cap, he exuded self-confidence - that some might perceive as arrogance - during an exclusive interview in Kuala Lumpur last week.

He said: 'I'm sure many people who read this report will laugh at us.

'That's okay. It's good to dream. It's good to have a mission. It's better to do that than sit down and say, 'I'm never going to be as good as SIA'.

'What's the point of getting up in the morning? We want to be as good as the best.'

AirAsia has carried 47 million passengers to date. Its media relations officer, Ms Janet Leow, revealed that from advance bookings so far, AirAsia would reach 50 million passengers by June this year.

Mr Fernandes added: 'Last year, we carried 16 million passengers and SIA's figure was lower.

'This year, we will be carrying about 20 million passengers and SIA will be carrying about 18 million.'

SIA posted a net profit of $1.52 billion for the nine months ended December 2007. Its financial year ends in March. In comparison, AirAsia made about RM452million ($197m) in pre-tax profit for 2007.

So are these brave words just a pipe dream for Mr Fernandes?

He said: 'It's a truth that we carry more passengers. We're only 6 years old. SIA is 35.

'It has the backing of Temasek Holdings and the Singapore Government. Here, it's little me and four other guys who started this airline.

'Look at what we've done in six years. We grew faster than Malaysia Airlines or SIA.

'So why can't we be bigger (one day)?'

Still, the flamboyant businessman admitted that 'profit wise', he was far from his target.

The 44-year-old Malaysian, who is also chairman of Singapore Slingers (a franchise basketball team who play in Australia's National Basketball League), added: 'But that's my target.

'You always set yourself targets and SIA is one of the best airlines in the world.'

Asked if he thinks that SIA will sit back and let him fly past, he said, 'No'.

'I think SIA has responded by investing in Tiger Airways,' Mr Fernandes said with a s******, adding that he didn't think Tiger was a threat to AirAsia.

'I think SIA also realises that we're in a market it is not interested in. I've always predicted what SIA is doing now.

'I always said the airline industry would go two ways - one that focuses on the low-cost segment and the other on the premium segment.'

He added: 'Singapore thrives on competition. I used it too. I used them (SIA) as a benchmark, they probably used us.'

'TOO EXPENSIVE'

When told of Mr Fernandes' claims, Singapore Airlines responded by saying it's a different airline from AirAsia and that a comparison based on passenger numbers alone was meaningless.

Tiger Airways said it has firmly established itself as a leading low-fare airline in the Asia-Pacific region.

AirAsia flies to 49 destinations.

Though Mr Fernandes is a frequent flyer and a big admirer of SIA, he said he finds it 'too expensive' to fly Singapore's national carrier.

He would love to travel in the Airbus A380 one day though.

Mr Fernandes, who is part Goan and part Malaccan Portuguese, graduated from the London School of Economics and became an accountant.

He sprinted up the corporate ladder and, at 28, became the youngest vice-president of South-east Asia's Warner Music Group.

But Mr Fernandes wanted to fly higher - by fulfilling his childhood dream of owning anairline.

So he approached former prime minister Mahathir Mohamad for a licence to start a new airline in Malaysia.

Dr Mahathir persuaded him to take over AirAsia for RM1.

Mr Fernandes mortgaged his home and dumped his savings into a business that was near bankruptcy.

AirAsia, the heavily-indebted subsidiary of the Malaysian government-owned conglomerate, DRB-Hicom, was losing money big-time, had only two planes and was RM25m in debt.

The deal was struck in 2001, a few days after New York's World Trade Centre was attacked by terrorists. It seemed like the worst time to start an airline, particularly in Asia which also saw the Sars epidemic and terrorist bombings in Bali.

But Mr Fernandes saw opportunities.

He hired pilots and airline crews retrenched by other airlines and relaunched AirAsia.

He offered low-cost, no-frills travel with the tagline, 'Now Everyone Can Fly'.

Last month, AirAsia flew into Singapore and now offers two flights a day from Changi Airport to Kuala Lumpur.

ELATED

Mr Fernandes said: 'I'm elated. We have 91 per cent load factor. I wish we have more flights. I'm keeping my fingers crossed.'

His next target destination is India.

Aiming to be as popular as global brand Coca-Cola, Mr Fernandes has dumped huge sums of money for his airline to be associated with Manchester United football club and Formula One - part of his branding strategy.

He said: 'I know many people will laugh at me when I make that statement. But my whole life, people have laughed at me.

'From the moment we started AirAsia... 'This guy is a nut case, will go bankrupt'.

'But slowly, slowly we're getting there.'

He would love to travel in the Airbus A380 one day though.


heh, you should own A380 too, Tony! :okay:

an Airasia's A380..w0ow! once you get them, you can proudly change AirAsia's tagline..."Now Everyone Can Fly A380"

Thank god TF is not,no offense intended, Malay when he made this challenge:nuts:.hehe.And thanx for taunting the Singaporeans, Malaysians' favourite past time :lol:

AirAsia among world's most innovative firms
Published: 2008/04/03



AIRASIA Bhd has been recognised as one of the world's most innovative companies by Fast Company magazine, the only Asean brand and the only airline to make it to the "Fast 50" list.

Other notable companies include Google, Nike, Facebook, Apple, Disney, GE, BMW and IBM.

AirAsia ranked number 43 this year on the "Fast 50" list, announced in the March 2008 issue of Fast Company.

From green consumer-products phenomenon Method to 100-year-old Corning, which spends US$2 million (RM6.38 million) each workday on R&D, the list celebrates companies that are redefining the rules of business through new ideas.


http://www.btimes.com.my/Monday/OurPick/top50.xml/Article/Current_News/BTIMES/Images/btgraph7/tony3.jpg



Twelve of the 50 firms are based outside the US. Fifteen of them are based in and around the Silicon Valley.

"This is a feat we are very proud of, considering we are placed in the same platform as some of the most recognised brands in the world. We are humbled by this news as we've evolved from a Malaysian brand to an Asean brand within a short span of six years and to be recognised on the global front by the coveted Fast Company magazine, is indeed very rewarding," AirAsia group chief executive officer Datuk Tony Fernandes said in a statement.

Fast Company editors described AirAsia as "innovative down to its corporate bones".

"Most passengers think of it as one carrier, but it's actually a co-branded collection of several, a unique structure Tony Fernandes devised to allow AirAsia to set up hubs in three countries (Malaysia, Thailand, and Indonesia)," it said.

It also credited AirAsia for operating costs that are the lowest of any airline in the world, and so are its fares.

Previous awards won by AirAsia include "Airline of the Year 2007" by the Centre for Asia Pacific Aviation (CAPA) and the "Best Low Cost Airline in Asia" by Skytrax Research of London.

Fast Company's final 50 were selected from a list of 300 finalist companies. The magazine placed a high premium on companies that had demonstrated significant innovation over the past year. Actual rankings were determined by vote by a panel of editors and writers.

Fast Company is a monthly business magazine that reports on innovation, digital media, technology, change management, leadership, design and social responsibility. It was launched in November 1995 by Alan Webber and Bill Taylor, two former Harvard Business Review editors.

AirAsia upbeat on travel demand
Published: 2008/04/04




BANGKOK: Malaysian budget airline AirAsia Bhd is optimistic about travel demand as the US economic slowdown could mean passengers shifting to low-cost airlines, its top executive said yesterday.

“Obviously, we’re going to benefit from a recession,” chief executive Datuk Tony Fernandes told reporters on the sidelines of industry forum in Bangkok.

“When the recession comes, one of the first things people cut is travel and entertainment. So if you’re flying on a full service airline, you’re probably going to trade down.”

AirAsia, Asia’s largest budget carrier, has expanded aggressively since it began its low-fare, no-frills flights in December 2001.






Growth of global travel demand is expected to slow this year, with crude oil more than US$100 a barrel pushing up jet fuel prices and fares, analysts said.

But Fernandes said rising oil prices were less of an issue than high airport charges in some countries.

“Oil isn’t unique. It affects everybody. It isn’t just AirAsia,” he said.

“You can’t transfer cost of oil to the consumer because people won’t fly. We’re going have to find another way to do it and that’s why we sell more food. We charge for bags,” he said.

“Airports are my big problem. That’s most of my grey hair.”

ENOUGH FOR NOW

AirAsia, which expected to carry up to 20 million passengers this year, had no plan to order more aircraft any time soon after its AirAsia X long-haul carrier ordered 10 Airbus A330-300 aircraft last month, Fernandes said.

AirAsia, which started with just two aircraft, and Britain’s Virgin Group, controlled by billionaire Richard Branson, each hold 16 per cent stakes in AirAsia.

Low-cost carriers in Asia have proven more resilient than those in the United States and Europe and AirAsia expects to open more routes to India either in October or November, Fernandes said.

“We’ll be looking at southern India. For the Bangkok side, we’ll be looking Kolkata.”

Fernandes added that AirAsia is also looking at destinations in Dubai to serve workers from Malaysia, Thailand and the Philippines.

Fernandes said he expects there would be further deregulations to allow low-cost airlines to use airports in Asia.

“The world is going to change dramatically in the next six years in Asia. I don’t think anyone should fear about it. There are markets for all of us.” - Reuters

they will lease 2 a340 for UK route. As for A330 replacement, announcement will be made and words around suggest that it will be a350, first delivery in 2013.

I think you are the pilot that fly air asia?
Since you change your avatar, i almost didn't recognise you, Pilot.

The Star Online > Nation

Monday April 7, 2008
MYT 4:41:37 PM



AirAsia to have check-in baggage fee (updated)

By ROYCE CHEAH

SEPANG: AirAsia will be charging all its passengers a fee for check-in baggage from April 21 in a bid to defray rising fuel costs, its group chief executive officer Datuk Tony Fernandes said.

The fee would be RM3 per piece of baggage through online check-in and RM5 per piece of baggage when checking in at the airport.

Checked-in baggage will be charged on a per piece basis up to a maximum combined weight of 15kg. Anything over 15kg will be charged as excess in addition to the checked-in baggage fee.

According to Fernandes, charging the fee for check-in baggage made more sense than charging everyone an additional fuel surcharge, which was what other airlines were doing.

“With the rising fuel costs, we have to find new and innovative ways to keep our fares low.

“When it comes to bags, we notice that many passengers bring a lot of bags making our planes heavier which in the end makes the plane consume more fuel,” he said.

Fernandes said he did not think that there would be a negative reaction to the move as the fee was not high.

“It will help to defray up to 10% of the fuel cost. It is not much, but it adds up with all the other things we are doing such as priority boarding, selling merchandise and food on the flights.”

According to AirAsia’s statement, the airline believed that passengers should be given the option to choose the services they require and pay for those services.

“This approach has enabled AirAsia to provide continuous low fares, which is a priority for us,” it said.

The statement added that AirAsia was looking to change travellers’ behaviour by encouraging people to travel lighter.

“Lighter baggage weight on board the aircraft means burning less fuel, hence, less pollution and a better environment. Fewer checked-in baggage improves airport efficiency and will eventually lead to shorter check-in queues.”

AirAsia: Fee on checked baggage to offset fuel costs
By Anna Maria Samsuddin
Published: 2008/04/08


BUDGET carrier AirAsia Bhd said it will start charging a fee for all checked baggage on flights from April 21 to offset rising fuel prices.

Passengers travelling on an online reservation with checked baggage will have to pay RM3 per piece, while those who buy their tickets over the counter will have to pay RM5 per piece.

The maximum allowable combined weight for checked baggage is 15kg, and anything above this will be charged an excess baggage fee, on top of the handling fee.

Group chief executive officer Datuk Tony Fernandes said it is a way to distribute overall costs, by shifting the costs to passengers who require the service, while those travelling with hand luggage will not have to pay for this additional charge.

Currently, the costs of checked baggage are included in the airfare, which means passengers with no checked baggage have been subsidising those who were travelling with baggage.

"A major reason for implementing the fee is due to the costs of fuel. You use more fuel when the aircraft is heavier," he told a news conference in Sepang yesterday.

"These are some of the innovative measures that we are doing to keep our airfares low. The way I see it, raising fuel surcharge is an easy way to deal with higher fuel cost.

"However, it will not be fair to the passengers as not all of them are travelling with baggage," he said.

Jet kerosene traded at a record of US$132.65 (RM423.15) a barrel in Singapore last Friday, according to data compiled by Bloomberg.

Applicable for all bookings made after April 21, passengers are advised to pre-book their checked baggage, at least 24 hours before departure, to save time and cost at check in.

To date, AirAsia X and several European airlines such as Ryanair and British Airways are among those that have implemented this system. More airlines across the globe are expected to follow suit.

Meanwhile, Fernandes said the airline has no immediate plans to increase its airfares at the current oil price level.

"The current level is already high enough. I am hoping that it will not go beyond that. However, we may need to review our fares if jet fuel prices get to the level beyond US$130 to US$150 per barrel," he added.

He said AirAsia will continue to focus on efforts to further increase its ancillary income, which currently represents nine per cent of its total revenue, to help offset the impact of higher fuel.

A smart alternative to fuel surcharge.

I found alot of daytrip traveller taking airasia, escpecially those executives carried only a laptop. So it is wise to get them a waive since they don't contribute to the place at the cargo.

hmm...what's next,

when the next fuel hike occurs, impose charge fee for overweight people....

could drive msians to be slimmer and of course healthier...he he

long haul Oasis went bankrupt due to high oil prices... be careful AirAsia X.....


Oasis Hong Kong Airlines goes bankrupt
IHT News, London
10 April 2008


HONG KONG: Oasis Hong Kong Airlines, a long-distance budget carrier that tried to offer premium service and spacious seats at low prices, suddenly went into liquidation Wednesday and canceled all flights, the fourth budget carrier to halt operations in the past week and a half.

The bankruptcy filing by Oasis stranded thousands of passengers in Hong Kong, London and Vancouver, British Columbia. Many of the would-be passengers stuck in Hong Kong are children trying to return to British boarding schools after going home for the spring break.

High jet fuel prices have taken a heavy toll on the airline industry and particularly on budget carriers trying to compete on price with low profit margins. The other three to shut down since March 31, all in the United States, are Aloha Airgroup, ATA Airlines and Skybus Airlines.

The spate of bankruptcies threatens to undermine travelers' confidence in budget carriers. But airline industry experts say that Oasis's business model of punctual, top-notch service and lots of legroom at discount prices made it especially vulnerable to high oil prices.

For other budget carriers, the lesson of Oasis's demise is that, "they have to pack more seats and more passengers into their aircraft," said Derek Sadubin, the chief operating officer of the Center for Asia Pacific Aviation, a consulting company in Sydney.

Continue: http://www.iht.com/articles/2008/04/09/business/air.php

^^ this week 3 US airlines filed bankruptcy then Oasis is the latest... hope Air Asia can survive high oil cost....

AirAsia X: London flights will take off
By Anna Maria Samsudin
Published: 2008/04/11



AirAsia X's business model and cost structure provide the carrier with a better chance to succeed compared with Oasis, says OSK Research associate director



LONG-HAUL budget airline AirAsia X is unfazed by the collapse of Oasis Hong Kong Airlines and is proceeding with its plans to start flights to London from Kuala Lumpur.

Its chief executive officer Azran Osman-Rani said that its current cost structure, the world's second lowest at US$0.04 (RM0.13) per available seat kilometres after AirAsia Bhd's, enables the airline to stay in good shape to operate its long-haul routes profitably.

Commenting on the closure of budget airline Oasis 18 months after it first took to the skies, Azran said it was not an indicator that the business model had failed.

"It is more to do with the impact of rising fuel cost, which has been putting pressure on the entire airline industry," he told Business Times in a telephone interview yesterday.






"Oasis is not the only casualty. Legacy full-service carriers, too, are not spared from feeling the impact of higher fuel cost. Several premium airlines, such as the US-based Aloha Air, have gone bankrupt because of the current situation," he said.

This makes it more crucial for both low-cost (LCCs) and full-service carriers (FSCs) to stick to their respective business models to better manage their cost structure. "Mixing both models would only bring disaster," he said.

Azran believes that to be a successful LCC, an airline must operate the right aircraft type and have the right seat configuration and efficient use of planes - all of which AirAsia X adheres to.

In addition, being part of the AirAsia group has enabled the airline to benefit from the globally recognised brand, sales infrastructure and resources such as pilots and cabin crew.

OSK Research Sdn Bhd associate director Chris Eng said that AirAsia X's business model and its strong parent company will help the airline weather the challenging aviation climate.

Since AirAsia X is unlikely to start the London-Kuala Lumpur flights this year, the carrier can make use of the opportunity to build up its plane capacity and improve its services to China and Australia.

"I do not see AirAsia X folding anytime soon. As for its long-haul service to London, I think its business model and cost structure provide the carrier with a better chance to succeed compared with Oasis," Eng said.

A local analyst, who declined to be named, said that AirAsia X has an added advantage over other start-up airlines when it comes to market outlook and sharing of resources as it has industry veterans such as AirAsia's Datuk Tony Fernandes and Virgin's Richard Branson as shareholders.

AirAsia X's financial position is sound, he added.

"And if it does need to raise more cash, it can easily do so by selling more of its shares to investors," he said.

Aras Sejagat to be AirAsia vehicle
Published: 2008/04/11


AIRASIA Bhd has bought a company for RM2 that will be used to arrange for any financial requirements initiated by the budget carrier.

AirAsia told Bursa Malaysia yesterday that Aras Sejagat Sdn Bhd is "to be used as a special purchase vehicle with regard to any financing arrangements required and initiated by AirAsia".

Sarawak to consider AirAsia's LCCT proposal
By Firdaus Abdullah
Published: 2008/04/10



THE Sarawak state government is prepared to consider a proposal by AirAsia Bhd to set up a dedicated low-cost carrier terminal (LCCT).

Chief Minister Tan Sri Abdul Taib Mahmud said that although talks were still in the infancy stage, chances were high for such a development given that the budget carrier has earmarked Kuching as its hub in Sabah and Sarawak.

"The whole region stands to benefit from the impending implementation of the 'open sky' policy within Asean, and we must create more opportunities while taking advantage of the evident ones," he said at the launch of AirAsia's Kuching-Jakarta service in Kuching yesterday.

"Sarawak has what it takes to be a preferred tourist destination and transforming it into a hub for air travel will further boost our position in the global arena," he added.






Meanwhile, AirAsia group chief executive officer Datuk Tony Fernandes said that having an LCCT in Kuching was crucial for the airline's aggressive expansion in the Asean region.

"We agreed sometime ago that Kuching was to be developed into a regional low-cost air travel hub with extensive domestic and international connections.

"We need a terminal badly as the current airport charges are high and, at the same time, our passenger load is increasing," Fernandes said.

"I have talked to the Chief Minister (Abdul Taib) about this and we are committed towards turning Sarawak into a magnet for air travellers, thus doubling into higher tourism-based revenue."

Fernandes said that Kuching, as a hub for low-cost air travel, would eventually be connected to all the capital cities in Asean to capitalise on the increased mobility of people in the region.

He added that while China and India may be huge markets, Asean, with more than 600 million people, was an enormous market on its own.

Apart from the Kuching-Jakarta service, which started on April 1, AirAsia's other international destination out of Kuching is Macau.

^^ this week 3 US airlines filed bankruptcy then Oasis is the latest... hope Air Asia can survive high oil cost....

actually AirAsia has its’ own fuel policy. if i'm not mistaken early this year..tony had bought call options up to $130 a barrel to hedge against oil prices within 6 months like he always do.i think airaisa can survive.

Oasis Hong Kong Airlines goes bankrupt


having all 747 is probably one of the reason. a large aircraft type contributes to oversupply than demand....other than higher fuel consumption...

emm, so my idea for airasia to have A380 is quite stupid hah...:lol:

This air asia TF is starting to show arrogance, telling state gahmens to build LCCs here and there with taxpayers money..build your own laaaa....

soon msia will have tonnes of LCCT airport... soon all airports at every state capital will have LCCT and become AirAsia hubs...all of them hahaha

i tot hub is like limited to one place for one region like kl lcct for whole msia and SEA...

haha now they want to set up a special purpose vehicle (SPV).. i just learned it in lecture last week ... pretty smart way of "un-associating" and "splitting" liabilities for risky projects...

AirAsia Kuching-Taipei direct flight before year’s end

KUCHING: AirAsia will have a direct flight from Kuching to Taipei before the end of this year.

AirAsia Berhad’s Group CEO Dato’ Tony Fernandes said yesterday that the decision to start direct flight from Kuching to Taipei is in view of the potential of the Taiwanese market and also in view of the fact that quite a number of Taiwanese have their second homes here in Sarawak.

“I am sure very soon there will another dot on the map, from Kuching to Taipei,” he disclosed at a press conference after the official launching of AirAsia Jakarta-Kuching New Destination by Chief Minister Pehin Sri Haji Abdul Taib Mahmud at Hilton Hotel here yesterday.

According to Dato’ Tony, being from the music industry, he personally has a strong history in Taipei. “In the same way I started the Bandung flight because of Bandung music,” he said.
We will start working on the flight from Taipei straight away and bring the flight to Kuching and many more Taiwanese over here. Hopefully, before the end of the year, he told reporters.

According to Tony, Sarawak is an amazing state and one of the most beautiful states in the whole of Malaysia, a peaceful place where people get along so well.

“The World Rainforest Music Festival has been an eye opener to the world. We always look at Sarawak having so much to offer. From Kuching to Miri, Sibu, down the Rajang River, Mulu and all the parks here in Sarawak.”

But air connectivity is always a typical problem, and we have tremendous competition and people want direct flight and the only way to do that is to have a hub here, he said.

He said domestic tourism is also very important. “We started the first ever flight between Kuching and Penang, which had been a big success.”

“We believe Kuching can be a major tourist destination and a gateway to the wonderful treasures of Sarawak and we would like to bring as many capital cities and other big tourist leisure destinations such as Bali to Kuching.”

“We think Singapore and Bangkok are also very important and we want to link up directly with Australia and other points where this can be done,” he said.

“We don’t believe in the strategy of pushing everyone through to KL or big hubs like Bangkok or Singapore. We believe the modern traveller wants point to point entry and exit and at a lower cost because time is precious.

“So we will try to put as many flights from Kuching and we need the airport to support us to develop the new routes. We are optimistic that the Kuching hub could be generating five million passengers in three years time.”

We very bullish and optimistic. Each time I come here my optimism grows and I discover new facts like there are many Taiwanese who have second homes here, he said.

I think medical tourism is something that is not been exploited because there is no direct link. For the BIMP-EAGA area, Sarawak can be the capital of medical tourism for Indonesians and Filipinos. We will also look at the possibility of having a direct flight to Manila from Kuching, he said.

“There are a lot of things that we can do. We need more hotel rooms. We are very bullish and we will work very hard together with the Sarawak Government to ensure that this hub will be very successful.”

He also disclosed that AirAsia is accelerating the deployment of its Airbus A320 aircraft here from November to May this year. From May all flights operating out of Kuching will be on the new Airbus aircraft.

Source: Eastern Times

well, i told u guys tat kuching hub will never be closed and it seem to be expand even bigger...

having all 747 is probably one of the reason. a large aircraft type contributes to oversupply than demand....other than higher fuel consumption...

emm, so my idea for airasia to have A380 is quite stupid hah...:lol:

An airline goes bankrupt usually more due to finance than passenger oversupply. Oasis, as far as it has been reported, has always reported good loads on both flights to London and Vancouver. The problem is sale from passenger tickets alone cannot finance the airline and shield it from high oil prices, pay salaries, all that jazz. Its not the Boeing 747 problems.

AirAsia X I believe, will not fall because it has good financial backers from its various stockholders like Virgin, ACE and that Middle East and Japanese investors.

I guess AirAsia is trying to make every major city an AirAsia hub.... Before the mad rush of the full ASEAN Open Skies in 2011 or something...

An airline goes bankrupt usually more due to finance than passenger oversupply. Oasis, as far as it has been reported, has always reported good loads on both flights to London and Vancouver. The problem is sale from passenger tickets alone cannot finance the airline and shield it from high oil prices, pay salaries, all that jazz. Its not the Boeing 747 problems.


if the loads are good, than exactly the management is to be blamed. well, it's tough managing airline company in this competitive world...hopefully MAS will not end up like oasis.....but, if you say AA has a strong backup...then MAS has a stronger and powerful backup....the government :lol: same goes to SIA, right? ;)

AirAsia gesa kerja naik taraf LCCT disegerakan

Oleh SARAH NADLIN ROHIM

SEPANG 12 April - AirAsia Bhd. (AirAsia) menggesa Malaysia Airport Holdings Bhd (MAHB) supaya menyegerakan kerja-kerja menaik taraf Terminal Tambang Murah (LCCT) di sini.

Ketua Pegawai Eksekutif AirAsia, Datuk Tony Fernandes berkata, AirAsia berharap kerja-kerja menaik taraf terminal LCCT yang sedang dijalankan dapat disiapkan secepat mungkin bagi mengatasi kesesakan di terminal tambang murah itu.

‘‘Kami akan mengadakan pertemuan dengan MAHB untuk membangkitkan isu tersebut dan mencari penyelesaian konstruktif,’’ katanya katanya selepas majlis pelancaran pesawat A320 khas untuk orang kurang upaya (OKU) dan ambulift, di sini hari ini.

Beliau berkata, pada masa ini LCCT telah begitu sesak dengan peningkatan pendaratan penumpang dan pesawat.

Sehubungan itu, AirAsia memerlukan lapangan terbang dan terminal penerbangan yang lebih besar bagi menampung perkembangan pesat syarikat penerbangan tambang murah itu, terutama dalam misinya menjadi syarikat penerbangan tambang murah terbesar di ASEAN, katanya.

Fernandes berharap pihak terbabit dapat membantu AirAsia menampung perkembangan pesat operasinya.

‘‘AirAsia sedang mengembangkan operasinya dan mendapat sambutan daripada orang ramai dengan jumlah penumpang mencecah 22 juta orang dan kami memerlukan sokongan termasuklah mempunyai lapangan terbang yang efisien dan penambahan laluan udara yang baru.

‘‘Sokongan diperlukan, termasuklah kerajaan dan pihak penyedia dan penyelenggara lapangan terbang,’’ katanya.

Sementara itu, AirAsia telah membelanjakan kira-kira RM1.3 juta bagi menyediakan perkhidmatan kepada penumpang OKU dengan menyediakan kemudahan kenderaan ambulift bagi membantu mereka menaiki pesawat.

‘‘AirAsia sentiasa prihatin dengan kehendak penumpang termasuk menyediakan kemudahan untuk penumpang OKU, selaras dengan moto kami iaitu ‘everyone can fly’ (semua orang boleh terbang),’’ jelasnya.

Fernades juga berharap lebih banyak lapangan terbang dan syarikat penerbangan dapat menyediakan kemudahan untuk keselesaan penumpang OKU.

Kiko,

i might get the info wrong, after all..it's just rumour about KCH hub to be closed. Hope to see new development in KCH from Air Asia :)

AirAsia launches KL, Bangkok-Ho Chi Minh flights

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HO CHI MINH: AirAsia yesterday launched its direct daily Kuala Lumpur-Ho Chi Minh city and twice weekly Bangkok-Ho Chi Minh city flights.

In a statement yesterday, AirAsia said the Bangkok–Ho Chi Minh city flights would be increased to four times weekly starting April 27, 2008. Together, AirAsia group has a combined 11 flights weekly to Ho Chi Minh city.

Collectively, AirAsia group has nine points into Indochina, comprising Phnom Penh and Siem Reap (Cambodia), Vientiane (Laos), Hanoi (Vietnam), Ho Chi Minh (Vietnam) from Kuala Lumpur and Phnom Penh (Cambodia), Yangon (Mynmar), Hanoi (Vietnam) and Ho Chi Minh city (Vietnam) from Bangkok.

The group has a combined 101 routes, 53 destinations serviced by AirAsia group and two international destinations serviced by AirAsia X, AirAsia’s long-haul low-lost affiliate.

“Twenty thousand seats have been snapped up since we opened the Kuala Lumpur — Ho Chi Minh (Saigon) on March 12, 2008 and Bangkok — Ho Chi Minh (Saigon) on March 3, 2008,” said AirAsia chairman Datuk Pahamin Ab Rajab.

To date, AirAsia group has carried over 49 million passengers and has grown from a two-aircraft fleet to 70 today, and now has the most extensive low-cost network in the region.

Coming Soon
٭ Kuala Lumpur - Tiruchirapalli (India)
٭ Kuching - Brunei
٭ Kota Kinabalu - Brunei

New Destinations
٭ Kuala Lumpur - Kuantan
٭ Kuala Lumpur - Hong Kong
٭ Kuala Lumpur - Haikou
٭ Kuala Lumpur - Ho Chi Minh City

how bout kch-singapore?tis must be a great flights as silk air and MAS will have stiff competition

AK can probably launch more flights to Singapore. But they risk inviting Tiger and Jetstar in with even more competition.

Coming Soon
٭ Kuala Lumpur - Tiruchirapalli (India)


:banana: :banana: :banana:

Hope they will launch Dhaka and Colombo too asap !

KL-Kuantan to start on 1 June :banana:

Who will fly to Kuantan from KL anyway :? Transit passengers :? It takes 3 hrs or less by car from KL to Kuantan using EC Highway...

:banana: :banana: :banana:

Hope they will launch Dhaka and Colombo too asap !

dhaka is a veeeeeeery big market tho....as well as tamil nadu. nepal also a potential route...

AirAsia spared Airbus price hike
By Anna Maria Samsudin
Published: 2008/04/24


Airbus’ decision to raise aircraft prices by up to US$4 million will not hit the budget carrier due to a fixed deal to buy 175 units of the A320 aircraft signed earlier

http://www.btimes.com.my/Current_News/BTIMES/Thursday/Frontpage/ambeli.xml/Article/Current_News/BTIMES/Images/btgraph7/air24.jpg

BUDGET carrier AirAsia Bhd, the world's largest buyer of the A320s, will not be affected by Airbus' decision to raise prices of its aircraft.

Chief executive Datuk Tony Fernandes said the airline is spared from additional costs as it has fixed the price for the 175 planes it ordered from the airframe maker.

AirAsia has already factored in the possibility of Airbus reviewing its prices and this was among the areas discussed before signing the deal.

"We are serious in managing our cost and because of that we have to look into everything before we decide to make a huge investment such as the aircraft orders.






"The AirAsia team has made a wise move by fixing the price for these aircraft when we signed the deal," he told Business Times in a phone interview yesterday.

AirAsia has placed firm orders for 175 units of the A320 aircraft, with the option to buy 50 more. So far, it has received 40 units and is on track for full delivery by 2014.

Airbus said it will raise prices by between US$2 million and US$4 million (RM6.2 million and RM12.5 million) per aircraft, as of May 1, to offset rising metal prices and the weak greenback.

"On top of the 2.74 per cent normal escalation for 2007, the price increase comprises an additional US$2 million per single-aisle aircraft and US$4 million per wide-body long range and A380 family aircraft," Airbus said in a statement yesterday.

It was reported that Airbus incurs most of its production costs in euros, but sells its aircraft in dollars, putting it at a disadvantage to US rival Boeing Co.

Airbus said the US dollar is at its lowest rate in 20 years. The US dollar has shed 15 per cent of its value against the euro in the past 12 months from 1.35 to almost 1.60.

Metal prices have also gone up by at least 6.5 per cent, Airbus said.

Titanium, steel, aluminium and aluminium-lithium ac-count for at least 40 per cent by weight in modern aircraft design.

"We have to keep pace with the world market price developments and secure profitable deals," said Airbus chief operating officer (customers) John Leahy.

As at March 31 2008, Airbus sold over 8,800 aircraft to more than 370 customers and operators and has delivered over 5,100 aircraft since it first entered service in 1974.

Its backlog now stands at above 3,700 aircraft, securing up to six years of production.

AirAsia to fly Kuching-Macau route daily
Published: 2008/04/24


AIRASIA Bhd is increasing its Macau route frequency from Kuching to daily flights from May 15, 2008 in an effort to enhance the city’s international connectivity.

In a statement yesterday, AirAsia said it is now serving three flights a week to Macau.

“With a strong average load of 80 per cent since its inception, the airline is gearing up for the strong travel demands by locals and visitors alike to and from Kuching for the rest of the year with the increased capacity,” it said.

Group chief executive officer Datuk Tony Fernandes said Kuching is ready to embrace the global low-cost travel as there is so much tourism potential in Sarawak in terms of cultural diversity.


“We hope to grow the hub further with the support of a low-cost terminal in the state,” he said.

AirAsia said it would further enhance its East Coast route connectivity with the start of Kuala Lumpur-Kuantan route on June 1, 2008. — Bernama

AirAsia’s Internet sales to account for 80% of total sales in two years
by Doreen Leong
Email us your feedback at fd@bizedge.com


KUALA LUMPUR: AirAsia Bhd hopes to increase its Internet sales to 80% of its total sales from the present 65% in two years’ time. This would effectively help boost sales without incurring additional costs.

“We want to grow our Internet sales as this would help increase sales tremendously without having to set up additional sales counters and manpower,” its head of sales and distribution Rayner Teo said. Currently, the remaining portion of AirAsia’s sales channel is via call centres, sales counters and travel agents.

He added that ticket sales via its Internet portal has grown over the years from less than 50% since it first started operations six years ago.

When AirAsia introduced the online sales facility in 2002, total sales generated via the Internet was 25% but it grew to over 40% of its total sales or about RM50 million the following year.

Speaking at an airline distribution conference here yesterday, Teo said AirAsia was also exploring the possibility of tying up with PayPal as one of its payment methods.

PayPal, which is a subsidiary of eBay, is an e-commerce business allowing payments and money transfers to be made through the Internet. PayPal performs payment processing for online vendors, auction sites, and other corporate users, for which it charges a fee.

Currently, passengers booking AirAsia’s flights have the option to pay via credit card, debit card, online banking or Pos Malaysia.

Meanwhile, Bernama reported that AirAsia is increasing its Macau route frequency from Kuching to daily flights from May 15, 2008 in an effort to enhance the city’s international connectivity.

In a statement yesterday, Air Asia said it was currently serving three flights a week to Macau.

“With a strong average load of 80% since its inception, the airline is gearing up for the strong travel demands by locals and visitors alike to and from Kuching for the rest of the year with the increased capacity,” it said.

dhaka is a veeeeeeery big market tho....as well as tamil nadu. nepal also a potential route...

but why Tiruchirapalli dats i dun understand- Madras, Madurai, Coimbatore are much bigger n more popular among tourists...

AirAsia’s Internet sales to account for 80% of total sales in two years
by Doreen Leong
Email us your feedback at fd@bizedge.com


KUALA LUMPUR: AirAsia Bhd hopes to increase its Internet sales to 80% of its total sales from the present 65% in two years’ time. This would effectively help boost sales without incurring additional costs.

“We want to grow our Internet sales as this would help increase sales tremendously without having to set up additional sales counters and manpower,” its head of sales and distribution Rayner Teo said. Currently, the remaining portion of AirAsia’s sales channel is via call centres, sales counters and travel agents.

He added that ticket sales via its Internet portal has grown over the years from less than 50% since it first started operations six years ago.

When AirAsia introduced the online sales facility in 2002, total sales generated via the Internet was 25% but it grew to over 40% of its total sales or about RM50 million the following year.

Speaking at an airline distribution conference here yesterday, Teo said AirAsia was also exploring the possibility of tying up with PayPal as one of its payment methods.

PayPal, which is a subsidiary of eBay, is an e-commerce business allowing payments and money transfers to be made through the Internet. PayPal performs payment processing for online vendors, auction sites, and other corporate users, for which it charges a fee.

Currently, passengers booking AirAsia’s flights have the option to pay via credit card, debit card, online banking or Pos Malaysia.

Meanwhile, Bernama reported that AirAsia is increasing its Macau route frequency from Kuching to daily flights from May 15, 2008 in an effort to enhance the city’s international connectivity.

In a statement yesterday, Air Asia said it was currently serving three flights a week to Macau.

“With a strong average load of 80% since its inception, the airline is gearing up for the strong travel demands by locals and visitors alike to and from Kuching for the rest of the year with the increased capacity,” it said.

Eh tak tahu pulak... aku ingat kebanyakan tempahan secara telefon atau di Kaunter. Tapi lebih baik book dalam net.... lagiii murah !!

Nod for AirAsia Islamic bond sale
Published: 2008/04/29



THE Securities Commission (SC) has approved a plan by AirAsia Bhd to raise RM500 million from an Islamic bond sale to fund its capital expenditure requirements.

Wholly-owned Aras Sejagat Sdn Bhd will issue the sukuk under the Islamic principle of Ijarah under a five-year issuance programme.

The sukuk has been assigned a long-term rating of AA+ by Malaysian Rating Corp Bhd.

AirAsia proposes RM500m sukuk issue

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KUALA LUMPUR: AirAsia Bhd yesterday announced an Islamic bond issue to raise RM500 million for capital expenditure and debt refinancing purposes.

It said its wholly owned subsidiary Aras Sejagat Sdn Bhd had proposed to issue bank-guaranteed sukuk of up to RM500 million under an issuance programme of up to five years. The company said it had received approval from the Securities Commission for the sukuk issue, which has been assigned a long-term rating of AA+ (bg) by Malaysian Rating Corp Bhd.

“The proceeds raised from the sukuk programme shall be utilised to part finance the capital expenditure requirements of AirAsia, to pay the estimated expenses incurred or to be incurred for the purposes of or in connection with the sukuk programme, funding the ijarah service reserve account for the purpose of the sukuk programme and general working capital of AirAsia,” said the company.

The joint principal advisers, joint lead arrangers and joint lead managers for the sukuk programme are Bank Islam Malaysia Bhd and Kuwait Finance House (M) Bhd, which is also the guarantor for the sukuk programme. The joint lead arrangers for the bank guarantee facility are Bank Islam, Bank Kerjasama Rakyat Malaysia Bhd and KFH.

AirAsia lifts Sabah tourism profile
By Jaswinder Kaur
Published: 2008/05/03

http://www.btimes.com.my/Current_News/BTIMES/Saturday/Nation/sbar.xml/Article/Current_News/BTIMES/Images/btgraph7/musa3.jpg

LEADING low-cost carrier AirAsia yesterday heightened Sabah's position as a premier tourism destination following the launch of direct flights from Kota Kinabalu to Denpasar in Bali and Jakarta.

With four weekly flights to each of the destinations with a flying time of between two and three hours, passengers no longer have to transit in Kuala Lumpur or other regional airports in order to travel between Sabah and the two Indonesian cities.

The Kota Kinabalu-Jakarta route started operations on March 30 while return flights to Denpasar commenced yesterday.

AirAsia group chief executive officer Datuk Tony Fernandes said the two new routes would draw more inbound international tourist traffic from Bali and Jakarta to Kota Kinabalu.






The latest initiative brings to five the number of international routes the airline now serves from its hub in Kota Kinabalu. The other foreign destinations are Shenzhen and Macau in China and Clark in Manila.

Fernandes said the Kota Kinabalu-Bangkok route, which was suspended, will be reopened once several matters, including cost, were ironed out.

He said the airline hopes to start flying to Singapore soon and it is also keen to serve Australian cities from Kota Kinabalu, but that plans for the long-haul flights to places like Sydney may take two years to materialise.

"Sabah sits in between countries like Australia (in the south) and Korea, China and Japan (in the north). There has been some phenomenal growth, but similar to long-term plans, we will look at certain destinations under the second phase of plans.

"By geographic location, air linkages play a crucial role in Sabah and it is vital for AirAsia to play its role to spearhead Sabah as the gateway for trade, investment and tourism as envisioned under the Sabah Development Corridor," he said yesterday.

Fernandes also paid tribute to the Sabah state government, in particular Chief Minister Datuk Seri Musa Aman, for believing in the airline's potential when it was just starting out.

AirAsia launches Jakarta-KK, Bali-KK flights
Published: 2008/05/03



AIRASIA has launched direct flights to Kota Kinabalu (KK) from Jakarta and Bali, Indonesia, as part of its expansion plans towards becoming an Asean airline.

In a statement yesterday, AirAsia, said Jakarta-KK’s first flight commenced on March 30 and Bali-KK’s inaugural flight started yesterday. “Both routes are being served three times a week,” it said.

AirAsia X to go international from KKIA


KOTA KINABALU: Budget carrier AirAsia X may operate international flights out of the Kota Kinabalu International Airport (KKIA) in two years’ time, its managing director Datuk Tony Fernandes said.

He said Sabah’s geographic central location between Japan, China and Australia made KKIA an obvious choice as another hub for AirAsia X.

However, there were various conditions which had to be fulfilled before the budget carrier could use the airport and they include having more direct air links between the state capital and regional destinations, said Fernandes, who is also AirAsia group chief executive officer.

For a start, AirAsia will re-establish its Kota Kinabalu-Bangkok flights and is keen on getting its air services between Kota Kinabalu and Singapore going.

“Ideally, we would have liked the Kota Kinabalu-Singapore flights launched yesterday. But this is now in the hands of the Government,” he said after the launching of AirAsia’s services between Kota Kinabalu and Jakarta as well as Bali by Chief Minister Datuk Musa Aman here yesterday.

Musa said the state government was keen on seeing AirAsia start direct air services between Kota Kinabalu and Singapore.

Fernandes said improvements were needed at KKIA’s low-cost carrier terminal, which he described as “bursting at the seams”.

“At times, we have difficulty finding a place to park our aircraft because of the limited space there,” he said, adding that AirAsia had turned down Malaysia Airport Bhd’s suggestion for the airline to relocate to KKIA’s new main terminal.

Isn't it abit stupid for AirAsia X to go into Kota Kinabalu in 2 years time when it has barely made a dent in KLIA?

I would have thought that AirAsia X should go attack the kangaroo route market via KUL first, before Jetstar finally gets to it.

^^ What's wrong with having an Abu Dhabi of Malaysia ?

Isn't it abit stupid for AirAsia X to go into Kota Kinabalu in 2 years time when it has barely made a dent in KLIA?

I would have thought that AirAsia X should go attack the kangaroo route market via KUL first, before Jetstar finally gets to it.

market forces will tell if air asia did the right thing. if it didn't work, they can always pull back.

1st new plane should arrive in Q4 2008. if they get 2 new plans per quarter, in two years time (Q2 2010), they should have at least 12 planes flying around, plenty of planes doing the kangaroo route IMHO.

AirAsia seeks more flights into Singapore
Published: 2008/05/06



LOW-COST carrier AirAsia Bhd will submit an application to the government today to allow the airline more flights into Singapore.

Group chief executive officer Datuk Tony Fernandes said AirAsia hopes to get approval for additional flights to Singapore not only from Kuala Lumpur but also from Kota Kinabalu, Kuching, Penang, Langkawi and Terengganu.

AirAsia was given twice-daily flights on the Kuala Lumpur-Singapore route in February after Malaysia and Singapore agreed to open up the route to more competition.

"Now that Malaysia Airlines (MAS) is able to compete with us for zero fares, we must be able to compete with them," Fernandes told Business Times in a phone interview yesterday.

He said Malaysia Airlines and AirAsia were not competing on a level playing field.

"I am all for a free market, but they should not stop us as well," Fernandes said.

He said in order to ensure that the two carriers were given equal opportunity for growth, the government should remove subsidies, if any, given to MAS and free up the KL-Singapore route to the budget carrier.

Fernandes was commenting on MAS' announcement to offer 1.3 million seats under its Everyday Low Fares campaign launched yesterday.

Despite MAS' campaign, he guarantees that AirAsia still has the lowest fares in the market.

Fernandes said AirAsia charges up to RM59.50 for one-way flights within Peninsular Malaysia, and up to RM110.50 for flights between Peninsular Malaysia and Sabah and Sarawak.

In contrast, he said MAS is offering RM76 fares for one-way flights within Peninsular Malaysia and RM120 fares for flights between Peninsular Malaysia and Sabah and Sarawak under its Everyday Low Fares campaign.

AirAsia will also be announcing the launch of a new campaign called "Sub-Zero" by the end of the week, he added.

Fernandes said MAS' campaign will have some impact on AirAsia's performance but maintained that it is nothing the airline could not handle with rights to fly to Singapore. - By Presenna Nambiar

AirAsia makes it a battle in the skies with its own offer
By WONG SAI WAN


KUALA LUMPUR: AirAsia has countered Malaysia Airline’s Zero Fare campaign claiming that their cheapest air ticket still costs less than the national carrier’s latest product that was launched yesterday.

The budget carrier’s chief executive officer Datuk Tony Fernandes announced that his airline would come out with two new initiatives. They are:

> AirAsia will pay the difference to any of his passengers if they can find any MAS airfare that is lower than the cheapest offered by AirAsia.

> A sub-Zero Fare campaign.

“Just print out the confirmed booking from MAS and I will pay the difference. As for the sub-Zero Fare, which will be launched in the next few days, it will be cheaper than zero,” said Fernandes in an interview.

Reacting to the MAS campaign which was launched by its managing director Datuk Seri Idris Jala yesterday, Fernandes said he was “very flattered” by the full-service carrier’s latest initiative because it was a copy of what AirAsia had been doing.

“This is the10th time that MAS has copied us. I guess imitation is the best form of flattery,” he added.

MAS announced that it has launched a new product that it called Zero Fare whereby domestic travellers need only pay the airport tax and surcharges. Jala also announced that the airline had set aside one million tickets for the travel period between June 10 and Dec 14.

For the domestic offer, the total charge for travel between the peninsula and Sabah and Sarawak is RM122.40. For domestic travel without crossing the South China Sea, the charge will be RM81.45.

The tickets can only be purchased on-line. MAS is expected to expand this offer to Asean routes soon.

The Star front-paged this report yesterday and by mid-day the MAS website (www.malaysiaairlines.com) was reporting heavy traffic.

Fernandes also produced a list of prices to compare the fares offered by AirAsia against MAS' to prove that his was cheaper.

He said that he was sure that consumers would know which airline is making a better offer especially since his AirAsia gives better service.

“We have newer aircraft, better and hot food – although passengers have to buy them on board – better seats which are more spacious and we definitely have better crew.

“We have more frequency to local destinations.

“We have more point-to-point routes; for example one can fly directly from Penang to Kota Kinabalu or Johor Baru to Miri without having to transit at another airport,” said the AirAsia boss.

He also revealed that his airline had started selling hot roti canai on board his planes last month and would introduce chicken rice and satay soon.

AirAsia boss: Let us compete against MAS


KUALA LUMPUR: AirAsia has hit out at Malaysia Airlines for competing directly with its business model but at the same time not allowing the budget carrier to compete against the national airline.

AirAsia group chief executive officer Datuk Tony Fernandes said that while he welcomes competition, he urged that his company be allowed to compete against MAS.

“The first thing they should do is to allow us to fly more flights to Singapore instead of asking the Government not to allow us to do so. They should also allow us to stage more flights from different points in Malaysia to Singapore,” said Fernandes.

He was responding to a statement by MAS managing director Datuk Seri Idris Jala who said the national carrier was creating new demand from low fares, just like AirAsia.

He said MAS should work together with AirAsia instead of competing and accused the full service airline of “surrendering” to Singapore Airlines (SIA).

“MAS and AirAsia will go to war and the only beneficiary will be SIA,” said Fernandes.

“AirAsia and AirAsia X are doing more to bring in foreign tourists than MAS. Although we have only a flight a day to Australia (Gold Coast), we are spending A$350,000 in advertising compared to SIA’s A$1.2mil (RM3.6mil). I know MAS is spending a lot less.

“Our two airlines are dedicated to turn KLIA into a major Asian hub again. MAS should join us in this mission,” he added.

No certain victor in AirAsia-MAS price war
By Presenna Nambiar
Published: 2008/05/07



What is important is that the interests of the consumer are taken care of - from the way prices are quoted and promoted, says Malaysian Association of Tours and Travel Agents


A FARE fight between full-service carrier Malaysia Airlines (MAS) and AirAsia could dent the latter's profitability, but how deep the cut would depend on the "Sub-Zero Fare" campaign the budget airline is launching in the next few days.

While analysts had mixed views as to who would win the price war, they believed AirAsia was likely to see a drop in load factors and its share of the domestic market.

"If AirAsia's Sub-Zero Fare campaign were to involve more than 500,000 seats and steep discounts, our forecast yields (for AirAsia) would be further compressed," OSK Research Sdn Bhd associate director Chris Eng said in his report yesterday.

He expects MAS to win this round of the price war as the national carrier has more room to play around with on its fuel surcharge.

Aseambankers Malaysia Bhd research head Vincent Khoo said the campaign by AirAsia may involve discounts - before surcharge, fees and taxes - with the headline ticket price quoted at below zero.

For instance, a fare could be marketed as "-RM10", but, after all the add-ons, the one-way fare could, in fact, be RM90 instead of the RM100 without the "Sub-Zero" offer.

Intra-Asean Travel Committee chairman of the Asean Tourism Association and Mitra Travel group president, Datuk Seri Tunku Iskandar Tunku Abdullah, does not see MAS' latest campaign as unfair competition "unless, in offering these zero fares, MAS has used the buffer of any government subsidies which are not available to AirAsia".

MAS does not receive subsidies from the government, apart from the operations of rural air services in Sabah and Sarawak by its subsidiary MASwings.

Tunku Iskandar said the "blurring" of lines between low-cost and traditional airlines is prevalent worldwide.

"With the cost of fuel now almost US$120 (RM378) per barrel, all airlines have to strive to keep costs low and sell as many seats as possible," he said.

However, he voiced concern over the extension of price undercutting, whether done by MAS or AirAsia, to international routes as it may discourage foreign airlines from flying into the KL International Airport (KLIA) in Sepang.

"This will happen if the foreign airlines find that they are unable to compete, and will stop or reduce their flights to Malaysia. KLIA's objective of becoming a major airline hub in the region may be negatively affected if that is the outcome," Tunku Iskandar said.

On Monday, MAS announced that it would extend its "Everyday Low Fares" to include regional destinations soon.

However, it has no plans to offer them on international destinations, saying that the load factors did not necessitate such a move.

Jet Airways (India) Ltd country manager for Malaysia, Kavin Martinus, said there was no issue as long as the competition was healthy and consumers benefited.

"All airlines are free to follow what strategy they feel is necessary to ensure profitability," he said.

Malaysian Association of Tours and Travel Agents president Ngiam Foon expects the MAS-AirAsia price war to boost travel.

However, he urged the government to have the prices quoted on an all-inclusive basis, as is done in Europe, Australasia and the US.

"What is important is that the interests of the consumer are taken care of - from the way prices are quoted and promoted. Is there such a thing as free or zero? Surely not, as they have to pay something no matter what you call it," Ngiam said.

this news is really great..wat a rally between both airlines.

Battle for Malaysian sky hots up
Published: 2008/05/07


MAS has answered AirAsia's call for liberalisation of the KL-Singapore route by saying that there are enough destinations for AirAsia to fly to, if it really wants to do so


MALAYSIA Airlines (MAS) and AirAsia appear to be heading towards a battle for the sky as the tension over each other's price campaigns escalates into a war of words.

Yesterday, MAS issued a statement to answer points raised by AirAsia Bhd chief executive officer Datuk Tony Fernandes on Monday in response to the national carrier's "Everyday Low Fares" campaign.

MAS managing director and chief executive officer Datuk Seri Idris Jala answered Fernandes' call for liberalisation of the Kuala Lumpur-Singapore route by saying that there were enough destinations AirAsia could fly to if it really wanted to do so.

He said that Malaysia has "open sky" agreements with the US, the United Arab Emirates, New Zealand, Taiwan and Scandinavian countries.


"AirAsia is free to fly to any of these destinations with no limitations on frequency or capacity."

Idris pointed out that AirAsia had introduced services to several destinations which MAS serves, such as Hong Kong and Ho Chi Minh City.

"We are fine with this as it is allowed under the bilateral arrangements," Idris said.

In the statement, Idris gave the reminder that the Asean open-sky pact had been collectively agreed to by all the grouping's ministers and had a clear timetable.

He also refuted claims that MAS' promotional spending in Australia did not compare with AirAsia's.

Idris said MAS and Tourism Malaysia are jointly investing more than RM1.3 million in this year's marketing campaign.

The year before, MAS and Tourism Malaysia jointly invested more than RM2 million in direct promotional activities with wholesalers, Australian media and direct consumer events, contributing to a 15.6 per cent increase in the number of Australian tourist arrivals in Malaysia.

In addition, MAS offers the Malaysia Stopover Programme under which Australians can avail themselves of free domestic flights from Kuala Lumpur to other destinations in Malaysia and enjoy discounted rates for hotels, with other benefits thrown in.

"All these promotions do not include our promotions of Malaysia worldwide at all our overseas offices. We successfully returned the airline to profitability, without any aid or subsidies," Idris said.

Open skies pacts: AirAsia wants similar rights as MAS
By Kang Siew Li
Published: 2008/05/07




BUDGET carrier AirAsia Bhd wants to be granted similar rights as national carrier Malaysia Airlines (MAS) in future open skies pacts between Malaysia and other countries.

An open skies agreement gives carriers of both countries unlimited rights to fly between each other's borders.

"The current mindset is that MAS, being the country's national carrier, should automatically be given more rights than AirAsia or should be protected. Why? We have done more for the country than MAS has done in the last three years," AirAsia group chief executive officer Datuk Tony Fernandes told Business Times in a phone interview yesterday.

"We have carried more passengers, invested more in promoting Malaysia and sponsored Manchester United, Formula One's Williams team and professional referees in English soccer.

"We have also won countless awards and recognition, ordered 175 A320 planes, beat Singapore in the low-cost carrier market, taking Malaysia to another level," he said.

"We are not asking for more rights than MAS, but 50 per cent ... for equality within the aviation sector," he added.

AirAsia is seeking to level the playing field, following the launch of MAS' "Everyday Low Fares" campaign to all domestic destinations on Monday.

AirAsia is expected to launch its own campaign early next week, which would see it lowering its fares further.

Apart from equal rights, the carrier also wants to increase its current two daily flight frequencies between Kuala Lumpur and Singapore with another six flights per day.

It also seeks to fly from Singapore to other destinations in Malaysia such as Kota Kinabalu, Kuching and Penang.

"Don't hold us back. You can let the consumers choose (by having two choices - MAS and AirAsia), but you must also allow us to maximise our profits by granting us the Singapore-Malaysia routes, which will also lead to much lower fares," he added.

Fernandes said while AirAsia is aware that it is free to fly to countries such as the US, the United Arab Emirates, New Zealand, Taiwan, Maldives, the UK, Germany and the Scandinavian countries - markets which Malaysia has an open skies agreement with, these routes are more suited to its long-haul LCC AirAsia X.

"AirAsia's current fleet of A320s would not work beyond three to four hours' range. Anyway, why isn't MAS operating those routes if they (the company) are profitable?" he asked.

Still, the AirAsia group is expected to take on MAS managing director and CEO Datuk Seri Idris Jala's suggestion to fly to these countries with its AirAsia X brand.

Meanwhile, in an online circular to its customers yesterday, AirAsia maintained that its current fares are still the lowest in Malaysia.

K.L --> Makasar to be launched soon !!

MAS clears air on low fare campaign
By Zuraimi Abdullah
Published: 2008/05/09



MALAYSIA Airlines' (MAS) top executive yesterday said its latest low fare offer was not to drive budget carrier AirAsia Bhd to the ground.

Managing director Datuk Seri Idris Jala said MAS was only selling cheap seats which would otherwise have been empty.

MAS launched its 'Everyday Low Fares' campaign this week, offering zero one-way fares for about one million seats on all domestic flights.

Industry analysts see the move as a start to a price war between the two airlines as they increasingly engage in direct competition.

AirAsia said it is putting together a new fare scheme that is expected to beat whatever MAS offers. The new AirAsia fare scheme will be launched next week.

Speaking at a luncheon talk on MAS turnaround strategy in Putrajaya yesterday, Idris said the situation is like two competing supermarkets which would naturally lower prices of their perishable goods after a certain time to make sure they would not be wasted.

AirAsia group chief executive officer Datuk Tony Fernandes told Business Times on Wednesday that as MAS is now in direct competition with the budget airline, it wanted to be granted similar rights as MAS in future open skies pacts between Malaysia and other countries.

To London and back - for RM1,200


KUALA LUMPUR: AirAsia X will start its flights to London in March next year. And it will cost only about RM1,200 for a return trip on an economy ticket.

The country’s first long-haul budget carrier had announced last year that the Kuala Lumpur-London route would be its mainstay but could not take off because there was no suitable aircraft.

AirAsia group chief executive officer Datuk Tony Fernandes said he had signed up for the lease of an Airbus A340 aircraft a few days ago.

“We will take delivery of the plane in January and it will take us several months to refurbish it.


He estimated that the average cost of a return fare to London would be about RM1,200 while the higher-class flatbed seats would cost about RM8,000return.

The economy return fare on full service carriers like Malaysia Airlines and Singapore Airlines is between RM4,000 and RM4,500 while a business-class ticket on these airlines costs more than RM20,000.

Fernandes said his airline was still negotiating with a couple of airports near the Greater London area but “chances are we will settle for London's Standsted Airport.''

The airport is located in the Uttlesford district of the English county of Essex, about 48km northeast of London. Stansted is a hub for a number of major European low-cost airlines. It is Britain’s third largest airport serving the London area after Heathrow and Gatwick.

Fernandes said AirAsia X would start with five flights a week using the first aircraft but “we will build it up to eventually two flights on a daily basis.”

“Our on-board entertainment system will be a state-of-the-art touch screen unit. You can watch movies, listen to music and even order your food from the unit,” he added.

On the permanent aircraft for the long-haul routes, he said AirAsia X was still looking at the Airbus A350 or the Boeing 787 (commonly called the Dreamliner).

“We have not decided on which wide-body aircraft but we want one that can give us the flexibility to serve Europe and the Americas. We want to turn Kuala Lumpur into a truly low-cost hub,” the AirAsia founder said.

AirAsia X operates long-haul flights that take six hours or more. It now operates flights to two destinations – Gold Coast in Australia and Hangzhou in China. The airline had announced that it would be flying to Tiruchirapalli in India in a couple of months.

[SIZE="4"]

On the permanent aircraft for the long-haul routes, he said AirAsia X was still looking at the Airbus A350 or the Boeing 787 (commonly called the Dreamliner).

“We have not decided on which wide-body aircraft but we want one that can give us the flexibility to serve Europe and the Americas. We want to turn Kuala Lumpur into a truly low-cost hub,” the AirAsia founder said.

AirAsia X operates long-haul flights that take six hours or more. It now operates flights to two destinations – Gold Coast in Australia and Hangzhou in China. The airline had announced that it would be flying to Tiruchirapalli in India in a couple of months.

i expect tony will take A350 cause the whole fleet is airbus. single vendor make it easy to operate and keep operating costs down. either way, if they order either of the aircraft today, they will only get it in 2013/2014, that's 5 years from now....

i think tony doesn't like the A340 cause it'd have 4 engines and it will drink fuel like nobody's business, but operating the B777 will increase the complexity and operating cost, something an airline would do without nowdays... can anybody attest the a340 fuel consumption against b777?

as for the flight to india, i bet it'd would be after they got their 1st aircraft delivered...

I think that RM1200 after including taxes and whatever charges will amount to RM3000 eventually.

Can't wait to see the touch screen IFE.It'd be embarrassing if the IFE is better than MAS.

So the plane will stop in Dubai/ Sharjah for refuelling or flying straight to London..??

Can't wait anymore Air Asia flying into Dubai/ Sharjah or Bahrain !

I think that RM1200 after including taxes and whatever charges will amount to RM3000 eventually.

Can't wait to see the touch screen IFE.It'd be embarrassing if the IFE is better than MAS.

nah, impossible to be so expensive. even malaysia airlines from London Heathrow to KLIA the charges are 200pounds max for a return ticket. Furthermore, Airasia is not flying to London Heathrow and KLIA MTB. so im sure the charges wouldn't be as expensive as u think.

Hopefully the in-flight experience will be a lot better than the bankrupted Oasis Hongkong.

look again at the article..1200 ringgit is the AVERAGE price..

they will be leasing a widebody A340 (-500?), that means it it will be a direct KL-London. oh my...hopefully the leased plane is not the old,2nd hand punya plane....going london with vibrating here and there punya old plane is a pain in da ass...:lol:

If they sell satay onboard or decent drinks, then it maybe enough to lure me to AAX....

From Wikipedia: There are 5 next-generation inflight entertainment: Studio CX by Cathay Pacific, Krisworld by SIA, Select 3000i by MAS, ICE (Information, Communication, Entertainment) by Emirates and Red by Virgin America (another low-cost subsidiary of Virgin Group).

http://en.wikipedia.org/wiki/In-flight_entertainment#Systems

AirAsia goes head-to-head with MAS by slashing fuel surcharge
By WONG SAI WAN


KUALA LUMPUR: Travellers are in for a treat as budget airline AirAsia is going all out to compete with Malaysia Airline's Everyday Low Fare promotion by launching its own Sub-Zero campaign today.

The low-cost carrier will not only offer passengers more than one million tickets at zero fare, it is also offering RM5 off on fuel surcharge for domestic routes.

The domestic offer is for the travelling period between June 10 this year and April 30 next year.

The booking period is for the next four days.

AirAsia charges fuel surcharge of RM16 for domestic flights that do not cross the South China Sea and RM43 for flights between the peninsula and Sabah and Sarawak.

A one-way trip from KLIA to Kuala Terengganu during the zero fare campaign will start from as low as RM17 (including fuel surcharge and airport tax) while a trip to Kota Kinabalu from here could be as low as RM44.

On Wednesday, AirAsia will launch its offer for international routes for the travelling period between Jan 12 till April 30 next year. The tickets must be booked online by Friday.

These offers come a week after MAS came out with its Zero Fare campaign. The booking period for that campaign is from May 5 to 19 for travel from June 10 to Dec 18.

AirAsia group chief executive officer Datuk Tony Fernandes said the budget carrier’s latest campaigns showed that the airline knows what travellers want.

“No one knows the low-cost business like AirAsia,” he added.

However, MAS is set to come up with its zero fare campaign for Asean routes next week.

Both of MAS' promotions for domestic and Asean routes may become a permanent feature because the seats on offer are “not sold”.

The national carrier said 30% of the seats are set aside for these offers.

With the combination of offers from the two airlines, travellers are looking at over three million cheap tickets on offer.

AirAsia offers discount on fuel surcharge

Email us your feedback at fd@bizedge.com


KUALA LUMPUR: AirAsia Bhd, in its latest sub-zero campaign, is throwing in a RM5 discount on its fuel surcharges on top of its domestic free seats promotion, a week after Malaysia Airlines launched its low fares for domestic routes.

According to AirAsia’s latest newsletter, passengers travelling on AirAsia flights would be able to save up to 40% on surcharges via the much-anticipated campaign.

The budget carrier’s sub-zero campaign is applicable to domestic flights from here to 15 destinations, Johor Bahru to six destinations, Kuching to seven destinations and Kota Kinabalu to seven destinations.

Currently, AirAsia’s passengers save 40% when they pre-check baggage online, up to 33% on airport tax (from low cost carrier terminal) and up to 20% on pre-book meals online.

Under MAS’ “Everyday Low Fares” campaign, the national airline is offering one million free seats on domestic flights booked online.

In response, AirAsia highlighted that its low fares were lower than MAS’ and offered to fork out the difference if its cheapest fare was higher than MAS’.

how do i love healthy competition.....

AirAsia still owes MAHB RM5.4m
Published: 2008/05/14


LOW-cost carrier Air Asia Bhd still owes Malaysia Airport Holdings Bhd RM5,443,746, Transport Minister Datuk Ong Tee Keat said yesterday.

“AirAsia is still in the process of paying the debt,” he said in a written reply to a question from Wee Choo Keong (PKR-Wangsa Maju) at the Dewan Rakyat sitting yesterday.

Wee wanted to know if AirAsia had paid back the subsidy of RM60 million to the government and its debts to MAHB after Malaysia Airlines (MAS) took over the air services in the interiors of Sabah and Sarawak.

Ong said following the rationalising of domestic air services carried out by the government in March 2006, it had given AirAsia the mandate to provide the interior air services. AirAsia subsequently appointed Fly Asia Xpress (FAX) to operate the service effective August 1, 2006.

“Considering that the service is a social obligation for the areas in Sabah and Sarawak and a non-economic service, the government therefore will bear in full the operation cost through subsidy,” he said.

Whoever the operator of the service, the government will provide the full subsidy which need not be paid back, he added. — Bernama

I never expect fuel discharge to be reduced because fuel price still high, hehe......what next? Maybe more room for check-in baggage for limited period? Haha, wishful thinking!

hai... boleh buat duit ke air asia sampai turunkan caj lebih2 nih...

AirAsia wants a level playing field
By Kang Siew Li
Published: 2008/05/15



BUDGET carrier AirAsia Bhd said a developing price war triggered by Malaysia Airline (MAS) could lead to its eventual demise, especially if it is not allowed to compete on a level playing field.

"There is a limit to what you can put us under. Oil prices are now US$159 per barrel. The government will never allow MAS to fail, but a private company? Who is going to save us?" AirAsia group chief executive officer Datuk Tony Fernandes told reporters in Kuala Lumpur yesterday.

He said AirAsia has seen sales grow by some 20 per cent since MAS launched its zero fare campaign for domestic destinations on May 5 2008.

"This is only a few days. MAS has announced that it is going to be an everyday campaign kind of thing. But we don't know what impact the campaign will have (on AirAsia) in the long term," he added.

irAsia wants to be given equal rights to fly the Singapore-Kuala Lumpur air route, which is reported to be one of Asia's most lucrative and fourth busiest routes.

Currently, MAS has 69 flights per week between Singapore and Kuala Lumpur while AirAsia operates 14 flights per week.

AirAsia also seeks to fly from Singapore to other destinations in Malaysia such as Kota Kinabalu, Kuching, Langkawi and Penang.

Fernandes said it has applied to the government for more rights to fly to Singapore and is now awaiting the outcome.

The carrier also wants the government to do away with the subsidy granted to MAS for routes to Los Angeles, Paris and New York to help even the playing field.

It is understood that the subsidy amounts to as much as RM400 million per year.

"We are led to believe that MAS gets government subsidies to operate these routes. This raises questions about how you quantify that subsidy? You can dump all other costs into that subsidy," said Fernandes, questioning whether the national carrier is using part of this subsidy to cover any lost revenue of its "Everyday Low Fares" campaign.

MAS launched its zero fare campaign for domestic destinations on May 5 2008 and extended its coverage to include Southeast Asia yesterday to boost sales and revenue.

On MAS selling free seats that would otherwise remain unsold and that they make up a small percentage of the total seats on offer, Fernandes said: "I am not taking risks over whether it hurts or not. I want to have my 'full ammunition' ... that I have all my routes and that MAS should not be given subsidies.

"I'm not against competition, but it has to be a level playing field. You can't send me into a boxing match with one hand tied behind my back.

"MAS has lucrative Singapore-Malaysia routes. It can take all that profit and use that profit to fight AirAsia (through its current free seats offer). We don't have access to those routes. It is not fair," he said.

"Overall, I think it is bad for Malaysia that two airlines are going after the same market.

"MAS should concentrate on the premium, full-service market (and AirAsia on the low-cost, no frills end of the market)," he added.

"I'm not against competition, but it has to be a level playing field. You can't send me into a boxing match with one hand tied behind my back.

"MAS has lucrative Singapore-Malaysia routes. It can take all that profit and use that profit to fight AirAsia (through its current free seats offer). We don't have access to those routes. It is not fair," he said.

"Overall, I think it is bad for Malaysia that two airlines are going after the same market.

"MAS should concentrate on the premium, full-service market (and AirAsia on the low-cost, no frills end of the market)," he added.

you go Tony!, but hey..isn't that one of AA's shoreholder is Kalimullah?...KJ's closest crony?...you should know how to do the trick lah tony...

AirAsia raps MAS over deals


KUALA LUMPUR: The battle between the two local carriers AirAsia and Malaysia Airlines has turned up a notch after waging their fare wars.

Yesterday, AirAsia called on Malaysia Airlines to keep the competition fair and healthy and “not to take toys from its playground.”

Its group chief executive officer Datuk Tony Fernandes also questioned yesterday why MAS was not promoting zero fares for non-AirAsia routes such as London and Sydney, to give more options to customers.

He also challenged MAS managing director and chief executive officer Datuk Seri Idris Jala to publicly deny or accept allegations that subsidies for international flights were used to promote domestic low-fare promotions.

“Idris has not denied this openly. You cannot take subsidies and use it to promote zero fares.

“Subsidy, in any form, is dangerous if it causes predatory pricing. We also believe MAS received free subsidy to fund free trips to Europe,” he said.

Fernandes said while it was difficult for an entrepreneur to go up against a government-linked airline like MAS, a level playing field would keep things fair and balanced.

“Why are they only concentrating on our routes? MAS is turning into a low-cost carrier instead of being the premium airline it was set up to be.

“This fighting is ridiculous. We should be competing against foreign airlines,” said Fernandes, who challenged Idris to a public debate on the matter.

Later, MAS executive director and chief financial officer Tengku Datuk Azmil Zahruddin denied that international flight subsidies had been diverted to fund the national carrier’s Everyday Low Fares product.

He said that “there was no such thing” and that the statements were baseless.

“There is no such thing as diverting our international flight subsidies into funding our low fare product.

“Each international and domestic route stands on its own and is subject to its respective profit and loss (P&L) mechanism,” he said.

Tengku Azmil also acknowledged that AirAsia had accused the national carrier of “tying the hands” of the budget carrier, but stressed that MAS was not competing with them.

AirAsia X to begin KL-Perth flights Nov 2
Published: 2008/05/15


The average fare to Perth, including other cost like fuel surcharge, will be just under RM400


AIRASIA X will start a new direct service to Perth, Western Australia, from Kuala Lumpur on November 2 this year, said its director Datuk Tony Fernandes today.

He said the average fare to Perth, including other cost like fuel surcharge, will be just under RM400.

For those opting for the business class seats, the return fare is about RM2,000, he said at the launching of the carrier’s destination to Perth in Kuala Lumpur.

The long haul, low cost carrier will offer six return flights per week between Perth and Kuala Lumpur, and is already planning to increase the flights to daily return flights by March 2009.


In a statement today, AirAsia X said the route will be serviced by the airline’s new wide-bodied Airbus A330 aircraft, giving passengers a level of service not normally expected from low cost airlines.

This is the airline’s third international destination following its launch to Hangzhou, China, in February this year with five return flights per week and to Gold Coast Australia in November last year with four return flights.

Fernandes said to date, AirAsia X has carried over 50,000 guests between Gold Coast and Kuala Lumpur, and 30,000 between Hangzhou.

“Looking at what we’ve done with these two routes, we are confident of creating a bigger market in Western Australia and influencing the travel trends among the budget-conscious travelers, to a point where we are looking at daily service to Perth by early next year,” he added. — Bernama

^^hopefully the bloody bastard MAS will not jeopardise AA on this route...:bash:

Lama lama dua dua lingkup baru semua orang happy may be before that they will pay us to fly ha ha

Great PERTH !!!!!!!! :banana: :banana:

Next: Sharjah !! ( pleeeeeeeeeeeeease )

^^ not all flights are sub-zero. i booked 3 tickets yesterday and they are all just "normal" cheap flights. the cheapest was RM70 not including the taxes :(

the sub zero is only for unsold seats....

Malaysia’s air battle intensifies
by Doreen Leong
Email us your feedback at fd@bizedge.com


SUBANG: The air battle between Malaysian Airline System Bhd (MAS) and AirAsia Bhd is intensifying as they go neck-and-neck in throwing in low fares to woo passengers.

MAS is extending its zero and low fares campaign starting from May 21 by offering one million seats on all its Asean destinations and selected routes to China, after launching the same fare offers on its domestic routes last week.

Meanwhile, AirAsia is offering free seats on all of its over 100 international routes, including AirAsia X’s long haul destinations to Gold Coast in Australia and Hangzhou in China.

The zero and low fares campaign by MAS is a first for the national carrier and it has managed to sell an additional 150,000 seats, which included those at normal fares, during the week of launch with a 900% increase in online penetration.

Passengers who book free seats on MAS’ domestic flights pay for fuel surcharge, administration fees and airport taxes amounting to RM76 for travel within Peninsular Malaysia and within Sabah and Sarawak, and RM120 for travel between Peninsular Malaysia and Sabah and Sarawak.

Its executive director and chief financial officer Tengku Azmil Zahruddin told reporters at the launch of the latest campaign here yesterday that MAS was not losing any revenue from the low fares offer as the one million seats represented 30% of its surplus seats, which would otherwise be unsold.

He added the move to offer low fares would enable the airline to recover some of the fuel costs, which would otherwise be lost as the seats were deemed perishable.

“To prevent dilution, “Everyday Low Fares” are only offered on lean flights and stringent terms and conditions have been put in place,” Tengku Azmil said.

He added that under the latest campaign, MAS was giving away free seats on 20 of its Asean routes and nominal fares on four Asean routes. For instance, passengers are able to purchase tickets on MAS’ KL-Singapore flight for a nominal fare of RM49.

Tengku Azmil said the fares ranged from zero to RM99 for one-way travel on those Asean routes under the campaign.

“We are the first full service airline to do this in a big way. In the past, there were other airlines which tried to do this, but were not successful.

“However, we believe MAS can do it as we are already managing tight seat inventory control under our Project Omega. If MAS were to do this a year ago, I don’t think we could be successful,” he added.

Many analysts saw some risks of MAS cannibalising its existing 70% passenger load, which could lead to yield dilution but Tengku Azmil believed that MAS would be able to sell 30% of the unsold seats without cannibalising on itself.

The need for MAS’ passengers to book their tickets early means that there should be minimal cannibalisation of existing passengers, while collection of fuel surcharges and other taxes should cover additional costs.

MAS senior general manager of network revenue management Datuk Bernard Francis said the campaign was aimed at helping the airline to sell between three million and four million unsold seats for domestic and Asean routes annually.

Will try to get a free seat on Perth-KL flight tonite :banana:

In a twist, according to today's Buletin Utama, Airasia X looking to launch flights to Japan and Korea....

And news on TV3 today got lots of news regarding MH-AK showdown...

So... Malaysia currently has the lowest domestic airfare on earth- agree ?

Source : http://www.bernama.com/bernama/v3/news_business.php?id=333198

AirasiaX Aiming To Fly To Japan By End 2009


KUALA LUMPUR, May 15 (Bernama) -- AirAsiaX, Malaysia's long-haul low-cost airline, is confident of launching flights to Japan by end of next year with huge demand due to the high cost of flying there, its director Datuk Seri Tony Fernandes said Thursday.

He said the airline had received interest from Japanese travellers frequenting Southeast Asia, adding that the routes were currently underserved.

"Japan is a very high cost market, so I think they will appreciate our low fares. And again, they are very underserved to Malaysia. There are not many flights from Japan to Malaysia," he told reporters here after launching AirAsiaX's flight to Perth, Western Australia.

Fernandes said he will be going to Japan in July this year with AirAsiaX chief executive officer Azran Osman-Rani to iron out details and the airline was looking to serve three routes, including Nagoya.

"I would say hopefully somewhere next year, Japan would definitely happen without a doubt. I think it is about getting the rights," he said.

"Japanese love Southeast Asia. So when you arrive in Malaysia, you can go to Kota Kinabalu, Penang, Bali or Bangkok. It is a paradise for Japanese."

Asked about the airline's plans for South Korea, Fernandes declined to elaborate.

"Korea, I can't tell. It also depends on the planes," he said.

On another note, Fernandes said the airline was awaiting its second new aircraft, an Airbus A330, due Oct 25 this year that will serve either the China or India routes. -- BERNAMA

AirAsia to remain profitable despite challenges




KUALA LUMPUR: AirAsia Bhd expects to remain profitable this year despite rising jet fuel prices and the heightened competition, group chief executive officer Datuk Tony Fernandes said.

He said the zero fare campaign had yet to hurt its business but it was still early days.

http://biz.thestar.com.my/archives/2008/5/16/business/b_05airasia.jpg
Datuk Tony Fernandes with AirAsia stewardesses after the announcement of its new direct service.

“We have absolutely no problem with Malaysia Airlines' (MAS) zero fares but please allow competition to be fair,” he said yesterday after announcing the group's long-haul budget carrier, AirAsia X, would launch flights from Kuala Lumpur to Perth on Nov 2.

Perth is AirAsia X's third destination in its first year of operation after the Gold Coast in Australia and Hangzhou in China. It will also be giving away 5,000 free seats for the new route for bookings made on May 16-17.

The group would also be launching flights to Japan next year, Fernandes said, adding that he would be going to Japan in July with AirAsia X chief executive officer Azran Osman Rani to iron out details and the airline was looking to serve three cities, including Nagoya.

Saying that AirAsia would be defending its low-cost market, Fernandes urged the Government to remove subsidies on loss-making domestic routes for MAS and allow AirAsia to increase its flight frequencies to Singapore.

AirAsia, which is currently offering a RM5 discount on fuel surcharge in retaliation to MAS' fare campaign, has no plans to roll back the reduction despite rising oil prices.

“We will live with it (rising fuel price). We will just have to be more ingenuous and creative. We have to manage increases in fuel costs more effectively,” Fernandes said, adding that the fuel surcharge discount would be compensated by higher passenger volume.

Some analysts said AirAsia could also face a cash crunch due to high oil prices and the increasing competition.

“We do not have any cash problem but the analysts seemed to be predicting otherwise since we started. Just look out for our first-quarter results,” Fernandes said, adding that AirAsia might be hit if competition remained unfair.

“Yesterday (Wednesday) was a record day for AirAsia. We achieved RM27mil sales in a single day. It was about six times more than our daily average daily record,” he added.

“AirAsia has to compete as we to ensure job stability for our employees; provide fares that are affordable and, at the same time, maintain financial viability to our shareholders. God willing, we will all survive the current challenging time,” deputy group CEO Datuk Kamarudin Meranun said.

AirAsia had proposed to issue a RM500mil bank-guaranteed sukuk programme of up to five years for capital expenditure and debt-refinancing purposes.

Kamarudin said the group was not raising the money just to finance its fleet expansion programme but also as “insurance”.

He also said there was no reason for the group to raise additional funds.

AirAsia starts Perth route on Nov 2



5,000 free AirAsia Perth-KL tickets

KUALA LUMPUR: AirAsia X’s service to Perth will start from Nov 2 and it is offering 5,000 free seats.

The offer will only be available for bookings today and tomorrow and for the travel period between Nov 2 and April 30.

“From midnight today (yesterday), you can try to get free seats to Perth. I’ve already received 27 SMSes from Malaysians and Australians in Perth asking what time they can start booking,” AirAsia X director Datuk Tony Fernandes told reporters after the announcement of the long-haul destination here yesterday.

He said the average fare to Perth would be under RM400 including fuel surcharge and the return fare for business-class seats was about RM2,000.

http://thestar.com.my/archives/2008/5/16/nation/n_12airasia.jpg
Budget babes: AirAsia X cabin crew (from left) Zuhaizah Isa, Eistisha Saleh, Shihal Awang and Stella Quek at the announcement of their new direct service.

“Many people have been asking when we are going to Perth. It has the largest Malaysian student population as well as Malaysians and Singaporeans,” Fernandes said.

Perth is the third international destination following its launch to Hangzhou, China, in February with five return flights per week and to the Gold Coast Australia last November with four return flights.

AirAsia X will offer six return flights per week between Perth and here, and is already planning to increase to daily return flights by March 2009. The airline’s new wide-bodied Airbus A330 aircraft will service the route.

When asked later about AirAsia still owing Malaysia Airports Holdings Bhd RM5mil as raised in Parliament, Fernandes said the matter would be sorted out in the next few weeks.

“We’re in dispute. The Finance Ministry is helping us sort it out. I am confident that we will sort it out soon. We obviously feel that we’ve been overcharged in some areas.”

Meeting on airline price war


KUALA LUMPUR: Transport Minister Datuk Ong Tee Keat will meet representatives from MAS and AirAsia to ensure the price war between the two airlines does not harm the local aviation industry.

Ong said he would also personally look into claims by AirAsia group chief executive officer Datuk Tony Fernandes that MAS was using subsidies for international flights for its domestic low-fare promotions.

“I will find out more details about the subsidy and the validity of the subsidy,” he said.

Ong said any negative statements by either party would affect the aviation industry.

He said he would meet both parties but stressed that the meeting should not be seen as him meddling into the airlines’ business models.

“It is my duty to ensure that whatever happens now won’t affect the industry negatively,” he said.

Ong hoped the two airlines would keep competition healthy.

Meanwhile, Wangsa Maju MP Wee Choo Keong said the Government should not interfere in the aviation industry.

He said that Singapore Airlines was allowed to have a low-cost carrier but MAS was not allowed to.

“Why must the Government be so protective of AirAsia? Competition is always healthy and the public will benefit from competition,” he said.

Wee had submitted a parliamentary question to Ong on why MAS was not allowed to operate a low-cost service, thus allowing AirAsia to monopolise the low-cost aviation industry.

In a written reply, Ong said MAS had never proposed to conduct its operations as a low-cost carrier.

“The Government also had not received any applications from other companies wanting to be low-cost carriers,” said Ong.

Ong added in the reply that under the domestic rationalisation policy in 2006, MAS had been designated as a full service carrier while AirAsia would operate as a low-cost carrier.

Meanwhile, MAS managing director and chief executive officer Datuk Seri Idris Jala will not participate in the public debate suggested by AirAsia.

“I do not have the time, nor the interest, to indulge in such futile exercises when there are other priorities that I need to attend to,” he said, in response to the challenge thrown by AirAsia's chief executive officer Datuk Tony Fernandes.

Idris also said that AirAsia had been giving away free seats for years without any protest by MAS.

Idris also denied the accusation by Fernandes that MAS was using international subsidies to fund its Everyday Low Fares.

On the contrary, Idris pointed out that AirAsia had been given various forms of subsidies including initially zero and subsequently lower airport charges as well as funding of its brand on the English Premier League referees, not to mention outstanding amounts owed by AirAsia/FAX to MAS and Penerbangan Malaysia.

Source : http://www.bernama.com/bernama/v3/news_business.php?id=333198

AirasiaX Aiming To Fly To Japan By End 2009


KUALA LUMPUR, May 15 (Bernama) -- AirAsiaX, Malaysia's long-haul low-cost airline, is confident of launching flights to Japan by end of next year with huge demand due to the high cost of flying there, its director Datuk Seri Tony Fernandes said Thursday.

He said the airline had received interest from Japanese travellers frequenting Southeast Asia, adding that the routes were currently underserved.

"Japan is a very high cost market, so I think they will appreciate our low fares. And again, they are very underserved to Malaysia. There are not many flights from Japan to Malaysia," he told reporters here after launching AirAsiaX's flight to Perth, Western Australia.

Fernandes said he will be going to Japan in July this year with AirAsiaX chief executive officer Azran Osman-Rani to iron out details and the airline was looking to serve three routes, including Nagoya.

"I would say hopefully somewhere next year, Japan would definitely happen without a doubt. I think it is about getting the rights," he said.

"Japanese love Southeast Asia. So when you arrive in Malaysia, you can go to Kota Kinabalu, Penang, Bali or Bangkok. It is a paradise for Japanese."

Asked about the airline's plans for South Korea, Fernandes declined to elaborate.

"Korea, I can't tell. It also depends on the planes," he said.

On another note, Fernandes said the airline was awaiting its second new aircraft, an Airbus A330, due Oct 25 this year that will serve either the China or India routes. -- BERNAMA

these 3 penang, bali and bangkok are so famous among japanese...and i believe flying from japan to KL would be another success route for AAX.

but i wish AAX would further to Seoul as well, really wanna see how progress south koreans are.....

^^ smlm tony dah cakap tokyo and seoul will be their next plan...... airflight in japan really expensive so this will be a gr8 succes specialy since japanese and korean really in2malaysia/indo/thai and sgpore..... goodluck tony fernandez

AirAsia mitigates lower fuel surcharge, builds war chest
by Doreen Leong
Email us your feedback at fd@bizedge.com


KUALA LUMPUR: AirAsia Bhd’s move to offer a discount on fuel surcharge would undoubtedly affect its earnings but this would be compensated by higher sales volume and further cost-cutting measures, its deputy group CEO Datuk Kamarudin Meranun said.

He said the budget carrier’s move to reduce fuel surcharge was needed in order to protect its turf. “We have to compete as we have responsibilities to our employees to provide job stability, the passengers on flight affordability and at the same time maintain viability to safeguard shareholders’ value,” Kamarudin added.

Speaking to reporters after the launch of AirAsia X’s Kuala Lumpur-Perth route yesterday, he said the cost of fuel has gone up by about 40% over the year but the increase in its cost per available seat kilometre (CASK) was not as high.

AirAsia’s CASK rose to 3.16 US cents for the financial year ended Dec 31, 2007 from 2.95 US cents in the previous year. However, stripping out fuel cost, the carrier’s CASK fell to 1.57 US cents in FY2007 from 1.63 US cents last year.

“We can’t control the fuel price. Financial hedging is not a permanent solution to increasing fuel cost. The key here is for us to have a business model that is robust enough to absorb the spike in cost,” Kamarudin said.

He said AirAsia was constantly seeking ways to enhance its revenue and managing other costs. “For one, by enhancing our ancillary income, we can cushion oil price hike.”

Kamarudin said AirAsia has hedged 40% of its fuel requirement at about US$80 (RM262) per barrel until the end of this year. “We are constantly layering our position — meaning we have positions that would give us the desired effect.”

Meanwhile, he said AirAsia has no immediate requirement to use the funds of RM420 million raised under a bank guaranteed sukuk programme.

“We have no immediate need to use the funds at the moment because we have already mandated our aircraft purchases,” Kamarudin explained.

He said RM420 million would only be sufficient to buy between three and four aircraft.

“We wanted to hedge on the current liquidity in the market at the current rates as we anticipate rates to go up further,” Kamarudin
added.

He said AirAsia was not speculating on interest rates but merely being prudent by raising funds to build its war chest for future needs.

AirAsia could lose fare war with MAS

Both airlines are offering free seats, but analysts say MAS will gain more

By S JAYASANKARAN
IN KUALA LUMPUR

A FARE war between Malaysian Airline System (MAS) and AirAsia has spilled into the open, with analysts predicting that AirAsia could lose.

On May 5, MAS announced a 'zero fare' campaign, offering one million free seats on domestic flights from June 10 to Dec 14. To qualify, bookings have to be made a month in advance over the Internet, and passengers have to pay taxes, administrative fees and surcharges. Average Peninsular Malaysia flights cost a possible RM82 (S$35) and East Malaysia flights, RM122.

Not to be outdone, AirAsia countered with 'sub-zero' fares a week later, offering free seats for three months plus discounts on surcharges and taxes. Peninsular flights with the budget carrier could be as low as RM17, while a trip to Kota Kinabalu, say, from Kuala Lumpur might cost RM44.

On Wednesday, MAS upped the ante, offering one million free seats - plus taxes - to 10 regional destinations and the Chinese cities of Hong Kong and Guangzhou.

This appeared to anger AirAsia's temperamental chief Tony Fernandes. 'There is a limit to what you can put us under,' he told reporters on Wednesday. 'The government will never allow MAS to fail. But a private company? Who is going to save us?'

According to him, MAS and AirAsia do not compete 'on a level playing field'. He claims that MAS is subsidised by the state to the tune of RM400 million to ply some international routes.

In a report last week, he also said that MAS seemed to have thrown in the towel in the competition against premier airlines such as Singapore Airlines and Cathay Pacific but was now clearly competing with AirAsia in the only segment in which AirAsia has the advantage: low-cost fares.

Yesterday, he seemed to have cooled down, suggesting that the two airlines cooperate instead of fighting each other to the benefit of foreign competitors.

AirAsia's bottom line has not been affected so far, Mr Fernandes said, but he warned darkly that 'there will be blood on the floor' if the price war continues.

MAS, however, has little to lose. Its campaign has been a triumph.

Traffic on its website has grown by triple digits, with 150,000 more seats filled since it launched free domestic tickets.

Its tactics are also grounded in logic. Free seats plus taxes and fuel charges mitigate costs that would have otherwise not have been absorbed by unfilled seats. 'These represent the 30 per cent of seats that would have otherwise have been unsold,' said MAS chief executive Idris Jala.

Analysts agree. 'Passengers are clearly the winner, followed by MAS,' securities house KNN Kenanga said in a report. 'Passengers will shift to MAS because of the free services offered, such as baggage handling and food.'

Indeed, analysts are already seeing a drop in AirAsia's load factor - to 78 per cent - in its last quarter. This has been put down to increased capacity and new, underperforming routes.

But with the intensifying competition, the budget carrier could run into more turbulence.

Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.

Business Times - 15 May 2008

Tried to book a seat Perth-KL for 19 Dec, total cost $251, not bad. $0 fare fliught are around Nov and Jan 09. But a flight Adelaide-Perth already $200 :nuts:, I'd save more if I fly from Syd via Jetstar.U guys if wanna study OZ dun come Adelaide la..flight connectivity really bad. :nuts:..have to go Melbourne/Sydney for LCC flight to KL.Only MAS fly KL from Adelaide.

RM251? including the taxes? so cheap????

RM251 IS the tax, flight is free... BUT take note:
http://i179.photobucket.com/albums/w285/blizzardtweaker/aax.jpg
D7 has squeezed a extra seat into the normally 2-4-2 configured A330 to make it 3-3-3, so expect it to be a REALLY small and extremely uncomfortable seat... Most pax will just book thinking the seats are regular sized as the popular 777s on mainstream airlines use 3-3-3 configuration...
They have also decreased the number of XL seats to just 4 rows and added an extra seat in each row (normally 2-2-2, now 2-3-2), so thats 'premuim economy' at best.
This means that the 'main door' now has a row of seats (row 15 is where the current a330 exit is for econ pax) and everyone will have to enter through the XL exit at the very front of the plane.
compare this to the original leased a330 with a normal configuration...
http://i179.photobucket.com/albums/w285/blizzardtweaker/aax-old.jpg

RM251? including the taxes? so cheap????

wooppss..sorry mate..i mean OZ dollars :nuts:

Tapping the Japanese market could present a challenge.

Japanese are basically not sold on budget airlines. They will fly with the best option available and have brand loyalty. So I wonder how Tony will market Southeast Asia to the Japanese. He certainly can't sell flights on marketing low low fares...

^^ Japan already has low-cost airlines ( but not as Xtreme as Air Asia ) such as SKYMARK air..

Tapping the Japanese market could present a challenge.

Japanese are basically not sold on budget airlines. They will fly with the best option available and have brand loyalty. So I wonder how Tony will market Southeast Asia to the Japanese. He certainly can't sell flights on marketing low low fares...

not at all. The japanese love low fares! Brand loyalty doesnt really exist airline-wise, its usually which ever airline offers cheap fares with reasonable service and comfort (AAX doesnt exactly fall in this category of 'comfort')
1.The JQ flights from AUS to Japan were doing so well that JQ decided to include Japanese translations in their in flight magazine.. (but then again, JQ offers a more 'premium' and comfortable product)
2. Japan already has its own budget carriers, but unfortunately all of them only fly domestically... i bet if any LCC flies HND-GMP or even NRT-ICN, they'd make a HUGE profit... (think SIN-KUL pre-LCC times)
3. Japanese people LOVE south east asia! M'sia, Thailand and SG are common Japanese travel destinations...

Tapping the Japanese market could present a challenge.

Japanese are basically not sold on budget airlines. They will fly with the best option available and have brand loyalty. So I wonder how Tony will market Southeast Asia to the Japanese. He certainly can't sell flights on marketing low low fares...

challenge but worth try. if a cheaper option with reasonable service (AAX got its 'premium class' too, don't forget about it) are available, why people still opt for an expensive one? as these japanese travellers are mostly college students, sure they think about budget. as well as old couples (note that 30's-40's salaryman don't travel overseas much).

and that 'brand loyalty', where did you learn that from? it does not exist!

seat configuration at 3-4-3...seat pitch would be around 29'-30'...hhm..DVT in the making perhaps?

DVT is overhyped, seriously.

Emirates and Air France flies 3+4+3 on B777s and we're not hearing anything bad happening.

by prakashdaniel

http://img31.picoodle.com/img/img31/4/5/17/f_05m_bb15062.jpg

AirAsia X flights seen boosting W. Australia tourism
Published: 2008/05/20



AirAsia is offering one-way flights from Perth to Kuala Lumpur for A$99 for travel between November and next April


MELBOURNE: Budget carrier AirAsia X flights from Kuala Lumpur to Perth from November will inject nearly A$100 million into the state of Western Australia’s (WA) economy in the service’s first year, its Tourism Minister Sheila McHale said.

McHale said Malaysia is already one of WA’s top tourism markets, with nearly 40,000 visitors every year spending A$157 million.

The AirAsia X services to will start with six flights a week, increasing to daily services by next March.

AirAsia, which also has a Kuala Lumpur to Gold Coast service, announced an introductory offer on one-way flights from Perth to Kuala Lumpur for A$99 for travel between November and next April.

Next year, AirAsia plans to link Australia with London via Kuala Lumpur, which will further boost the number of United Kingdom visitors to WA.

McHale said low-cost carriers had historically been successful in boosting tourism by offering competitive fares and attracting visitors who had not travelled widely before.

Westralia Airports Corporation chief executive Brad Geatches said the arrival of AirAsia would be a profitable win for the state’s tourism industry.

He said the deal presents an opportunity for Perth Airport to become a major hub for low-cost carriers. — Bernama

For Japanese, safety is a huge huge concern, followed by fares, of course. :)

AirAsia falls below IPO price
By Goh Thean Eu
Published: 2008/05/21



The main issue everyone is concerned about is the fuel price, says OSK Research


SHARES of AirAsia Bhd fell below its initial public offering price in 2004 for the first time yesterday as investors feared that near-record high jet fuel prices and mounting competition could hurt its bottom line.

The budget carrier's stock closed 4.3 per cent, or five sen lower, at RM1.12.

"I don't think the investors are worried about the company's gearing. Its cash flow looks good. The main issue everyone is concerned about is the fuel price," OSK Research Sdn Bhd associate director Chris Eng said.

Investors were also concerned over AirAsia's soon-to-be announced first quarter earnings, expected to be out sometime next week.





Jet fuel prices closed at a record US$162.55 (RM528.29) a barrel in Singapore trading last Wednesday.

AirAsia is also facing increased competition from Malaysia Airlines (MAS), which recently cut its fares to woo customers.

"Across the board, all airlines are forced to innovate to come to terms in a higher fuel cost scenario," an Aseambankers analyst said.

AirAsia shares have depreciated by almost 30 per cent, or 48 sen, so far this year.

It has been a tough month for AirAsia. The stock closed higher only on two trading days, unchanged on another two, and lower on eight trading days.

Since last week, several research houses have downgraded the stock to a "sell", while OSK has a target price of RM1.01.

AirAsia, headed by group chief executive officer Datuk Tony Fernandes, is among 18 budget carriers that started flying in South and Southeast Asia in the past five years.

Since then, increased competition has forced some of the low-cost carriers to go out of business.

Indonesia's PT Adam Skyconnection Airlines shut down two months ago as funds dried out, while Oasis Hong Kong Airlines Ltd faced an almost similar problem and stopped flying last month.

Several other such carriers have postponed their share sale.

AirAsia X service a boon to W. Australia economy
Published: 2008/05/21



MELBOURNE: Long-haul low-cost carrier AirAsia X's flights from Kuala Lumpur to Perth, starting November, will inject nearly US$100 million (RM325 million) into Western Australia's economy in the service's first year, its Tourism Minister Sheila McHale said.

McHale said Malaysia is one of the Australian state's top tourism markets, with nearly 40,000 visitors every year spending A$157 million (RM493 million).


AirAsia X will start with six flights a week, increasing to daily service by next March.

The airline, which also serves the Kuala Lumpur-Gold Coast route, announced an introductory offer for one-way flight between Perth and Kuala Lumpur of A$99 (RM311) for travel between November and April next year.

It plans to link Australia with London via Kuala Lumpur next year.

McHale said that low-cost carriers have historically been successful in boosting tourism by offering competitive fares and attracting visitors who have not travelled widely before.

Westralia Airports Corp chief executive Brad Geatches said the arrival of AirAsia X would benefit the state's tourism industry.

He said the deal presents an opportunity for Perth Airport to become a major hub for low-cost carriers. - Bernama

T. Rowe Price reduces AirAsia stake


KUALA LUMPUR: US-based T. Rowe Price Associates reduced its shareholding in AirAsia Bhd to 167.64 million shares after the disposal of 5.5 million shares on May 14.

A filing with Bursa Malaysia showed the shares were disposed of in the open market. After the disposal, its indirect stake was reduced to 7.06%.

AirAsia share price closed at RM1.19 on that day.

Its share price surged to a 52-week high of RM2.14 on Oct 26 last year while its 52-week low was RM1.06 on Wednesday.

At 11.10am Thursday, the share price was up three sen to RM1.11. It is trading at a price-to-earnings of 5.24 times.

AirAsia owes MAHB RM110m in service charges
by Pauline Puah
Email us your feedback at fd@bizedge.com


KUALA LUMPUR: Low-cost carrier AirAsia Bhd still owes Malaysia Airports Holdings Bhd (MAHB) a total of RM110.36 million in disputed service charges accumulated from 2002 to March 31, 2008, said Transport Minister Datuk Ong Tee Keat.

In his winding-up speech on the royal address in the Dewan Rakyat here yesterday, he said: “AirAsia does not agree with the outstanding balance. They have asked for a lower rate. Thus, the matter has been brought to the finance ministry to be resolved there.”

To which, Wee Choo Keong (Wangsa Maju-PKR) pointed out that the minister had said in a written answer to him last week that the debts which AirAsia owed to MAHB was only RM5.4 million.

“You also mentioned that AirAsia is in the process of paying back the debt. Are you trying to confuse the House?” asked Wee.

In his reply, Ong said the amount that he had mentioned was only part of the outstanding amount.

“The amount (of RM110.36million) which I have just mentioned is for the total amount for all the airports nationwide that AirAsia has used. It is not limited to only one particular sector,” he explained.

Ong also refuted claims that the government’s policies had benefitted AirAsia more than national carrier Malaysian Airline System Bhd (MAS).

“We have never menganak-tirikan (treated like a stepchild) the national carrier MAS as it has not been excluded from the open skies concept,” he said.

He also declined to reply to Wee’s question on whether the government would bail out AirAsia in the event the low-cost carrier ran into financial difficulties. “This is a hypothetical question, so I don’t want to answer,” he said.

Ong also said the government would not stop the price war between AirAsia and MAS as long as the competition was healthy.

Nonetheless, he added: “The cut-throat competition would not benefit both airlines.”

On the suggestion of open sky skies policy in Malaysia to allow more budget airlines to operate here, Ong said the government had offered open skies agreements to all the foreign countries.

“However, it is up to the country concerned whether they want to accept the offer,” he said.

“So far, we have open skies agreements with the United States, the United Arab Emirates, Scandinavian countries, New Zealand, Yemen, Austria and Taiwan,” he added.

T. Rowe Price reduces AirAsia stake


KUALA LUMPUR: US-based T. Rowe Price Associates reduced its shareholding in AirAsia Bhd to 167.64 million shares after the disposal of 5.5 million shares on May 14.

A filing with Bursa Malaysia showed the shares were disposed of in the open market. After the disposal, its indirect stake was reduced to 7.06%.

AirAsia share price closed at RM1.19 on that day.

Its share price surged to a 52-week high of RM2.14 on Oct 26 last year while its 52-week low was RM1.06 on Wednesday.

At 11.10am Thursday, the share price was up three sen to RM1.11. It is trading at a price-to-earnings of 5.24 times.

teruknya jatuh...kenapa sampai macam tu sekali?

AirAsia to operate from KK international airport


KOTA KINABALU: Low-cost carrier AirAsia will have to operate from the international airport terminal here after May next year despite appeals to stay on at Terminal Two.

Deputy Transport Minister Datuk Lajim Ukin said that they would cease operating at the airport’s Terminal Two complex in Tanjung Aru and move to the main airport complex that is currently being upgraded.

“All airlines, even domestic ones, will use the main terminal block as soon as it is ready for operations,” Lajim said after visiting the RM1.4bil upgrading works at Kota Kinabalu International Airport here yesterday.

“The move to house all airline operations under one roof is practical and will benefit travellers whether local or foreign,” Lajim said, adding that the current Terminal Two would be converted into a dedicated cargo terminal.

On the progress of the airport expansion and refurbishment, he said the main terminal should be ready by May 20, 2009, with partial operations beginning in July this year.

The fat one owes MAB millions for landing, parking, aerobridge, Passenger service charges, baggage handling charges etc.

He owes the states of Sarawak and Sabah countless millions in lost tourist revenue regarding the total screw up of FAX. He also owes the people of the abovementioned states an apology and compensation for destroying their rural economy and social transportation services as enshrined in the Borneo Treaty.

He owes the Government and MAS countless millions for the destruction of the DHC-6 and F-50 fleets, cannibalising them and leaving the repair bill to MAS.

He should resign as CEO for loosing 300 million plus in his gambling exercise where he used share holders money to gamble that the price of fuel would fall. A debt that he is still paying for and is the reason that AK is not presently hedged.

He owes full disclosure into the A320 deal to the shareholders. And how much money was paid to the board in so closing the deal. The company accounts and accounts of the board inclusive of the fat one should be open to independent scrutiny.

In short the so called great one has been and is continuing to waste taxpayers money. It would be an interesting exercise to total the complete monetary cost to taxpayers the fat one has caused. It may just be more than the so called benefit he is perceived to have created.

So now he is back to the same old LEVEL PLAYING FIELD crap. His idea of a level playing field is one that is 90 degrees stacked in his favour. He is so devoid of new ideas he keeps harping on the same old line like a broken record.

Sorry fatty, Idris negotiated and got the 737ng so you are screwed. You can't hand unwanted 320's to MAS. Guess one of your exit strategies is screwed. Ouch.

Now MAS is rebranding its product. What a brilliant strategy. And I guess it was invented by a certain revenue manager who was a founder of airasia that you screwed. If they were a team perhaps your bus service would be running smoothly. These guys were the real brains to airasia, they were the true founders and visionaries. They also put in all the work. The fat one had the idea but really was not the brains of the operation those guys were.

^^Who are the other founders of AK besides 'the fat one'. One of these founders already working with MAS?

Seems TF is fast losing popularity these days.

captain ahmad razlah, flight ops guy, left air asia, to mas, but now left mas already. heard he's setting up malaysia's newest airline using 2 datuk's money. Charter. Haj contract from malaysian and indonesian government. other guys i dont really know. But they are important, the fat bangla didn't pay his dues to them (promised pay etc) they left. AK's lost, MH's gain.

AK is in deep trouble.

Lotsa innuendo there which I seem to be in the dark about there :nuts:

Why is AK in deep trouble?

Call for direct flights to Langkawi
By SIRA HABIBU


LANGKAWI: Malaysia Airlines and AirAsia should look into providing direct international flights or transit flights via Langkawi, said Tourism Minister Datuk Seri Azalina Othman Said.

“The airport, which is an international airport, is not getting international flights, other than from Singapore," she said, adding that the ministry would write to MAS and AirAsia to provide direct international flight services to Langkawi.

She said Langkawi needed more direct international flights to attract more tourists.

She also said the ministry had allocated RM10mil to implement tourism projects in Langkawi last year and this year.

The projects include upgrading the pedestrian walkway in Pantai Cenang and upgrading public toilets at tourist attraction sites including in Pasir Hitam.

Azalina said having Langkawi declared as part of the Unesco network of global geopark was something to be proud of.

“But we need to package the product and make it saleable.

“This is in line with our objective to sell unique attractions in Malaysia,” she said.

She also noted that Langkawi was a duty-free zone, “but people are complaining there are no new products.”

AirAsia falls to record low
Published: 2008/05/27


The stock dropped 5.6 per cent to RM1.02 as at mid-day, the lowest since it started trading on November 19, 2004


AIRASIA Bhd, Southeast Asia’s biggest budget carrier, fell to a record low in Kuala Lumpur on concern higher oil prices will hurt passenger traffic and erode future earnings.

Sepang-based AirAsia dropped 6 sen, or 5.6 per cent, to RM1.02 as of 12.30pm, the lowest since it started trading on November 19, 2004. It’s the second-worst performer on the 100-member Kuala Lumpur Composite Index today.

The price of jet fuel, the carrier’s biggest expense, jumped to a record US$173.10 a barrel yesterday, boosting year-to-date gains to 57 per cent.

Singapore Airlines Ltd, Cathay Pacific Airways Ltd and other Asian carriers have increased surcharges on tickets this year to cover the higher fuel costs.



“If surcharges were to be raised much further, you might actually see some demand slowdown,” said Scott Lim, who helps manage US$431 million as chief investment officer at CMS Dresdner Asset management in Kuala Lumpur.

The airline’s passengers are mostly “price sensitive” holidaymakers, who may opt to defer travel if fares increase, said Lim, who doesn’t own the airline’s shares.

The discount carrier said last month it will start charging a fee of RM5 per piece for checked-in baggage.

AirAsia, due to report earnings on May 29, is also facing increasing competition from bigger rival Malaysian Airline System Bhd, the nation’s biggest airline, which has cut fares and given away free tickets to win travelers.

“Very Difficult”

Malaysia Airlines on May 20 said its first-quarter net income fell 9.5 per cent. The company also said it will be “very, very difficult” to reach the top end of its profit forecast due to higher jet fuel costs.

“So long as oil prices have upward momentum, that’s going to impact the outlook on earnings for airlines worldwide,” Vincent Khoo, an analyst at Aseambankers Malaysia Bhd in Kuala Lumpur, said by phone today.

Airlines may lose as much as US$40 billion this year as higher fuel prices and too many unoccupied seats wipe out earnings, independent aviation analyst Chris Tarry said May 20.

A possible slowdown in the region because of high inflation may also lead to cutbacks in discretionary spending including travel, said Khoo, who has a “fully valued” rating on AirAsia.

AirAsia, run by chief executive officer Datuk Tony Fernandes, is among the 18 budget carriers that started flying in South and Southeast Asia in the past five years as economic growth in the region fueled demand for air travel. - Bloomberg

Earnings worries dampen AirAsia stock
By LOONG TSE MIN


PETALING JAYA: AirAsia Bhd shares have been sliding in the past two trading weeks on concerns the budget carrier's first-quarter results, to be announced tomorrow, would not be as good as last year's.

The shares have fallen from RM1.23 on May 13 to an all-time low of RM1.01 yesterday.

According to analysts, the market's main concern was that AirAsia's first-quarter results would not be as good as the previous corresponding period's.

“Higher fuel prices and lower-than-expected load factors, especially on regional routes, contributed to the concerns,” a senior analyst at a local brokerage told StarBiz.

The sell-down in the counter was sparked by the disposal of 5.5 million shares on May 14 by substantial foreign shareholder T. Rowe Price Associates although this was not the main cause.

After the disposal, T. Rowe's stake was reduced to 7.06%.

With its recent route expansion, the load factor for AirAsia's regional routes is estimated by some analysts at 72.1% versus almost 80% for domestic routes.

Another analyst at local brokerage felt that the main reason for the sell-down was concerns over AirAsia's earnings.

On the stake sale by the foreign investor, he said: “We have been seeing a fair number of foreign parties reducing their stakes in Malaysia mainly for liquidity needs, maybe to meet cash calls in the US due to the subprime meltdown.”

The analyst added that this was likely in AirAsia's case as it was a stake reduction rather than an outright sell-out.

“Nonetheless, the reasons for the sale could be very different from that of domestic investors,” he said.

His concern is AirAsia's derivatives position of selling call options at US$82.6 per barrel, which became effective at US$90 per barrel.

Nymex crude oil crossed US$90 a barrel on Oct 25 last year.

The position would have cost AirAsia about US$50 a barrel and should have made its impact in the last quarter but did not, the analyst said.

As such, the market was expecting some impact in the first quarter ended March 31, he said, adding that the amount was “quite large'' but did not elaborate.

That said, AirAsia has taken opposite positions to offset the shorted calls at US$82.6 per barrel, so costs on fuel hedging would not be so high, but some net costs were still expected.

However, on the flipside, if crude oil prices were to fall below US$90 a barrel, AirAsia was expected to “gain doubly” from having lower direct fuel costs as well as gains from trading derivatives, the analyst said

I think alot of people are too harsh on AK.

But I must agree that Tony has screwed up the airline quite badly for Borneo and MAHB and that may not work to AK's advantage especially since the $13+ oil price is expected to hurt low cost carriers the most...

JQ/3K/BL/VF (Jetstar) and TR/TT (Tiger) are safe because they have their parents to help them.

Low-cost long-haul players will be worst hit
by Doreen Leong
Email us your feedback at fd@bizedge.com


KUALA LUMPUR: Low-cost carriers (LCCs), especially those operating long-haul flights, are likely be the worst hit by rising crude oil prices as they may not have much room to raise prices.

“Players at risk in the current high oil price environment include LCCs whose growth-based business model could be curtailed by massive increases in fares,” KLM Royal Dutch Airlines director of alliances Henk de Graauw said.

Speaking at the Malaysia Airlines Speaker Series recently, de Graauw said LCCs getting into long-haul flights such as AirAsia X, would find it difficult amid the rising fuel bill and economic slowdown.

Oil prices touched a record high of US$135 (RM438.75) per barrel recently and many experts are not expecting a decline in price anytime soon.

De Graauw said AirAsia X would need deep pockets to weather the storm.

However, AirAsia X has stated that the key to its cost competitiveness is to stick to its low-cost principles by focusing on a single aircraft fleet, high aircraft utilisation and seat density as well as tight control of operating and overhead costs.

Still, aside from rising fuel prices, AirAsia already faces increasing competition from Malaysia Airlines’ unprecedented zero and low fares campaign.

Budget carriers may not have much flexibility in terms of raising fares.

This is because their passengers are mostly price-sensitive holidaymakers and may opt to defer travel plans if fares increase.

“The rise in fares to compensate for higher fuel costs will weigh on demand for the time being,” de Graauw said.

He said other players at risk in the current challenging operating environment include airlines that are operating with an older fleet and those that do not have strong hubs.

De Graauw also said that the new landscape in the aviation industry includes capacity reduction, acceleration of mergers and acquisition activities, the exit of some players and the reinforcement of the strongest players.

Q1 revenue soars to RM535m
By Presenna Nambiar
Published: 2008/05/30


BUDGET airline AirAsia Bhd's fiscal first quarter net profit almost doubled from a year ago, thanks to higher passenger volume and growth in ancillary income from services such as hotel bookings and travel insurance.

Its net profit in the January-March 2008 quarter rose 86 per cent year-on-year to RM161.3 million, from RM86.9 million.

A RM51.5 million gain from deferred tax was recorded in the income statement.

Revenue rose 32 per cent to RM535.2 million, from RM406.2 million a year ago.



AirAsia carried some 2.6 million passengers in the first quarter of 2008, compared with 2.1 million passengers a year ago.

Average fare was higher by 10 per cent at RM189 as compared with RM171 achieved in the 2007 first-quarter.

AirAsia attributed the higher average fare to the robust demand for its services and maturity of certain routes in the network.

However, the airline saw a 4.4 per cent decline in its load factor to 72 per cent due to a significant capacity addition, initial under-performance of new routes and snowstorms in China.

AirAsia Q1 earnings surge to RM161mil


PETALING JAYA: AirAsia Bhd posted a net profit of RM161.27mil for the first quarter ended March 31, up 85.6% from RM86.87mil a year earlier, boosted by an improvement in its operations, foreign exchange gains and deferred taxation.

Announcing the strong results yesterday, AirAsia said revenue rose 31% to RM535.15mil from RM406.22mil before. Gross profit from operations rose 39.2% to RM129.31mil from RM92.88mil while pre-tax profit jumped 155% to RM110.17mil from RM43.07mil.

At net profit level, the low-cost carrier also benefited from RM51.54mil in deferred taxation. Earnings per share rose to 6.6 sen from 3.7 sen. It also recorded a foreign exchange gain of RM86.16mil against RM26.32mil a year earlier.

Reviewing the results, the airline said the positive growth was underpinned by higher passenger volume and bigger contribution from ancillary income. Passenger volume rose 21% to 2.61 million from 2.16 million previously.

http://biz.thestar.com.my/archives/2008/5/30/business/b_pg01planes.jpg
AirAsia aircraft park at the KL International Airport. — Reuters

“Average fares were higher by 10% at RM189 compared with RM171 in the first quarter of 2007,” it said, adding that the higher average fare reflected robust demand for its services and the maturity of certain routes in the network.

However, its load factor eased by 4.4 percentage points to 72% due to significant capacity addition and initial underperformance of new routes. There was some decline in load factors in certain routes due to specific local issues such as snowstorms in China.

On its fuel requirements, AirAsia said it had hedged part of its needs for the second quarter, enabling it to save about US$10mil (RM32.23mil) in the second quarter. Thereafter, it would remain unhedged and buy fuel at spot market rates.

On the outlook, it said the airline industry was facing one of its toughest challenges, with record jet fuel prices, tightening of the credit markets and a slower world economic growth.

AirAsia said a consumer slowdown would see passengers, who would normally take a full-service carrier, opting for a low-cost carrier.

“We are driving this consolidation process as we continue to offer irresistible fares, stimulate new markets, encourage price-sensitive customers and expand to new destinations,” it added.

The budget carrier said that no one was certain how long this situation would continue and that this could see weaker competitors reducing capacity and disappearing eventually.

”In the end, AirAsia will emerge even stronger, reflecting our brand, our sound business model, our unmatched cost advantage, efficient fleet, strength of our route network and our hardworking people,” it added.

AirAsia asks for incentives and reduction of RM110m charges
by Toh Mei Ling
Email us your feedback at fd@bizedge.com


SEPANG: AirAsia Bhd has requested the government to reduce airport charges as well as grant the airline incentives in relation to the carrier’s debt of RM110.4 million owing to Malaysia Airports Holdings Bhd (MAHB).

“AirAsia has made a request to the government for sub-consideration for reduction in charges and for incentives,” MAHB managing director Datuk Seri Bashir Ahmad Majid told reporters after MAHB’s AGM here yesterday.

The Transport Ministry revealed recently that the disputed amount owed to MAHB for service charges were accumulated from 2002 to March 31, 2008.

Bashir, whose term at MAHB has been extended for another two years from June 6, 2008, said AirAsia had referred the dispute to the government, which was now looking into the matter as it had to do with approved published rates.

On the other hand, carriers operating out of KLIA pay higher airport charges than those operating out of the Low Cost Carrier Terminal (LCCT), such as Airasia.

The International Air Transport Association (IATA) and main carriers have contended that the differential rates presented an unfair advantage of low-cost carriers.

On the matter, Bashir said Singapore started the practice first and MAHB had been asked by the Malaysian government to do the same.

“Of course, the traditional airlines have their concerns and it has in fact been taken up by IATA. But we asked IATA about Singapore because they started it first,” he said.

MAHB chairman Tan Sri Aris Othman said: “We want to clear up this misconception. These rates are not determined by us. It is determined by the government.”

Meanwhile, Bashir said MAHB was targeting a 10% revenue growth and expected five new airlines to start operating out of KLIA this year.
MAHB senior finance manager Faizal Mansor said it had allocated RM400 million for capital expenditure this year and a large portion of it would be used for its retail optimisation plan.

He added that MAHB’s retail business had been growing by 15% to 20% annually over the past few years.

MAHB yesterday announced that its net profit rose 28.5% to RM91.59 million in its first quarter ended March 31, 2008, from RM71.25 million a year earlier, due to the improved contributions by its airport operations, retail, agriculture and event management businesses.

Revenue grew 23.4% to RM409.86 million from RM332.05 million, ahead of the 10% overall passenger growth. Ahmad Bashir said the better results were achieved despite a 19% increase in operating expenses, which was due to higher repair and maintenance, staff related costs and event management costs.

Aik can buy so many A320 no money to pay ahh?? Wa this guy ah too muchlah

^^ aircraft purchases are seldom made by outright cash pymt but by syndicated loans.

Am I the only one that is missing something here?

1. AirAsia owes MAHB a lot of money
2. An investor of AirAsia X pulls out; long haul low cost aviation questioned
3. AirAsia share price goes below initial IPO
4. Load factors are apparently down.

So am I supposed to really believe AirAsia is still doing well considering they announced a profit of RM 161 million?

Slide continues at AirAsia
by Jose Barrock
Email us your feedback at fd@bizedge.com

KUALA LUMPUR: The shares of low-cost carrier AirAsia Bhd continued to slide yesterday on the back of negative news flow.

Deutsche Bank yesterday reduced its target price for AirAsia’s stock to RM1.05 per share or down 16% from its previous target. This comes on the back of several other downgrades by both international and local research outfits, which have revised their take on AirAsia largely because of rising oil prices.

Kenanga Investment Bank, meanwhile, reduced its target price for AirAsia to 95 sen in line with the budget airline’s net tangible asset per share. Kenanga Investment Bank also reduced FY2008 and FY2009 core net profit projection by 58.7% and 62.5% to RM65.4 million and RM94.8 million, respectively.

Much of the negative sentiment was centred on high oil prices, coupled with increased competition from national carrier Malaysian Airlines System Bhd (MAS), which could pressure near-term performance. MAS has come out with a sub zero fare campaign, which rivals AirAsia’s low fare model.

For the three months ended March this year, AirAsia raked in RM161.3 million in net profits from RM535.2 million in revenue. In contrast to a year ago, net profits gained by 86% while revenue improved 32%. However, Kenanga adds that core net profit of AirAsia is RM23.5 million (excluding a foreign exchange gain of RM86.2 million) which is only 14.9% of Kenanga’s forecast for AirAsia.

AirAsia’s stock ended trading at RM1.16 yesterday, the same level as its initial public offering (IPO) which took place in November 2004. Year-to-date, AirAsia shares have shed about 37%.

Much of the fall in AirAsia’s stock price has been in tandem with the steep increases in fuel prices.

Overall sentiment for the airline industry has also been weak, fuelled by International Air Transport Association chief executive officer Giovanni Bisignani’s statement that traffic growth in the industry could be at best 3.9% this year from 5.9% in 2007.

He also forecast industry-wide losses of US$2.3 billion (RM7.4 billion) this year if crude oil prices were to maintain at US$107 this year, and losses of US$6.1 billion should oil prices maintain at prices of US$135 per barrel.

AirAsia seeks 4 more Singapore daily flights
By Rupinder Singh Published: 2008/06/04

http://www.btimes.com.my/Current_News/BTIMES/Wednesday/Nation/airsia03.xml/Article/Current_News/BTIMES/Images/btgraph8/tony4.jpg

The airline needs more profitable routes to help cover fuel costs which make up half of its operating cost


AIRASIA Bhd, Asia's biggest budget carrier, wants another four daily flights to Singapore to boost income and counter rising fuel costs, its top executive said.

It now flies twice daily to the island republic.

Group chief executive officer Datuk Tony Fernandes said the airline needs more profitable routes to help cover fuel costs which make up half of its operating cost.

"We will be badly affected if we cannot get those routes. Every airline needs profitable routes. We will reach a point where we will break as well and we will fail along with other airlines," he said.



However, he said, even if crude oil prices hit US$200 per barrel, AirAsia will be able to survive, provided it gets more flights to Singapore.

The Kuala Lumpur-Singapore route is Asia's fourth busiest route and one of the most lucrative. After years of lobbying, the no-frills carrier was given the green light to fly there in February.

AirAsia plans to have flights to Singapore from Penang, Kuching and Kota Kinabalu as well.

Fernandes said the outlook on the airlines industry is "tough" mirroring the sentiment by International Air Transport Association chief executive officer Giovanni Bisignani that traffic growth could be at best 3.9 per cent this year, compared with 5.9 per cent in 2007.

Bisignani also forecast industry-wide losses of US$2.3 billion (RM7.40 billion) this year if crude oil prices were to stay at US$107 this year, and losses of US$6.1 billion (RM19.64 billion) should oil prices maintain at prices of US$135 per barrel.

Nevertheless, Fernandes said AirAsia aims to increase its market share by introducing new routes.

It plans to fly to Makasar and Balik Papan in Indonesia, and fly to Thiruchirapally, its first Indian destination, in late August.

It also added one more flight to Guangzhou, China as of yesterday.

He said AirAsia will take delivery of another three new Airbus A320 in 2009.

"We have asked Airbus for more planes but they could only give us three," he said.

AirAsia will now receive 12 new Airbus A320s this year and in 2009 respectively

AirAsia adding new flights and routes


SEPANG: Despite the soaring jet fuel prices, AirAsia Bhd plans to add new routes and more flights to current destinations to build its market share.

Group chief executive officer Datuk Tony Fernandes said the low-cost carrier was implementing a different strategy from other airline companies.

“Most airlines are cutting capacity and reducing cost. Of course we will reduce cost also but that's something we are doing everyday,” he told reporters after the company AGM yesterday.


“AirAsia will continue to grow (market share) and we will do that by adding more flights and routes.

Fernandes said it was not feasible for the company to survive a crisis by cutting cost.

“Adding more routes and flights would help us increase revenue which would help us deal with the rising (oil) cost,” he said.

He said the company was looking to have more flights to Singapore. AirAsia currently flies twice daily to Singapore.

“We would like to have six flights daily. This will also benefit AirAsia X. Many Singaporeans are actually coming into Malaysia to catch our (AirAsia X) flights,” he said.

AirAsia X is the company's low-cost, long-haul affiliate.

Fernandes also said having more routes (to Singapore) would benefit AirAsia.

“We would like to fly into Singapore from Penang, Kuching and Kota Kinabalu. These routes would be profitable for us and it would affect us badly if we do not get them.”

He said he was optimistic the Government would grant the company additional rights to fly to Singapore.

He also said he would like to operate from the Subang Airport because the Low-Cost Carrier Terminal at KL International Airport was becoming too congested.

“We need to have some planes in Subang to spur domestic tourism,” he said.

Fernandes said AirAsia had added a second flight to Guangzhou and was looking to launch a couple of routes in Indonesia soon. It will be offering its maiden flight to Thiruchirapalli, India, by late August.

AirAsia had also ordered three planes from Airbus, which would be delivered next year, he added.

He also said AirAsia had no hedging plans for its fuel requirements currently as market conditions were too volatile.

On the industry's outlook, he said: “We expect the second quarter of the year to be tough. But our topline has been very good. The key for us is to get more topline to cover the extra cost.”

:ohno:Group chief executive officer Datuk Tony Fernandes said the low-cost carrier was implementing a different strategy from other airline companies.“ Fernandes said it was not feasible for the company to survive a crisis by cutting cost.



We would like to have six flights daily. This will also benefit AirAsia X. Many Singaporeans are actually coming into Malaysia to catch our (AirAsia X) flights,”.

“We would like to fly into Singapore from Penang, Kuching and Kota Kinabalu. These routes would be profitable for us and it would affect us badly if we do not get them.”

He said he was optimistic the Government would grant the company additional rights to fly to Singapore.

He also said he would like to operate from the Subang Airport because the Low-Cost Carrier Terminal at KL International Airport was becoming too congested.
“We need to have some planes in Subang to spur domestic tourism,” he said

He said the company was looking to have more flights to Singapore. AirAsia currently flies twice daily to Singapore.

“We would like to have six flights daily. This will also benefit AirAsia X. Many Singaporeans are actually coming into Malaysia to catch our (AirAsia X) flights,” he said.
I am one such person... and as unpleasant as the experience was, I'd probably still do it again if I need to travel cheap (i mean dirt cheap! i paid SGD140 for KUL-OOL!)... i wished AAX would fly out of Singapore or even JB...

on another note, does anyone know why direct Singapore-Senai bus services cant be launched? I rmb reading somewhere about it a long time ago... there cant be law disallowing private companies from offering bus services SG-M'sia?
If customs could be simplified and a direct Woodlands - Senai bus service could be started, JB could become a massive hub for Singaporeans (especially those living in the north), much like how Shenzhen's Airport is to Hong kongers...

He also said he would like to operate from the Subang Airport because the Low-Cost Carrier Terminal at KL International Airport was becoming too congested.
“We need to have some planes in Subang to spur domestic tourism,” he said

Yes but only Ipoh & Kuantan flights please

I get this from Australia forum.


Linfox faces terminal bid knockback

http://www.theage.com.au/national/li...0604-2lw3.html


Mathew Murphy
June 5, 2008


LINFOX's plan to build a $30 million international terminal at Avalon Airport has received a setback after the Federal Government rejected its proposal.

The decision is also a blow for Malaysian budget carrier Air AsiaX, which already flies to the Gold Coast and had plans to make Avalon, near Geelong, its next destination.

Linfox managing director David Fox said he could not comment on the reasons why the Avalon application was rejected, but said "three or four issues" were standing in the way of receiving Federal Government approval.

"We are going through the process of reworking things and ticking those concerns off one by one, maybe not to (the Federal Government's) satisfaction," Mr Fox said.

"It was never going to be an easy process having to deal with state, local and federal politicians, and while I can't mention the specific issues, I can say we are continuing to work with the Federal Government and that Linfox is committed 150% to sorting this out."

A spokesman for Defence Minister Joel Fitzgibbon also declined to state the reasons for rejecting the proposal, but said the Government had no objection in principle to an international terminal at Avalon.

"Defence, as the owner of the Avalon Airport, was required to consult with other Commonwealth departments," he said.

"These consultations revealed a number of concerns and objections about the proposal, and based on the existing information provided, it would not be appropriate for Defence to approve the major development proposal at this point," he said.

"Defence would be pleased to receive a fresh major development proposal for consideration in accordance with the Avalon Airport lease, when all relevant matters have been addressed."

Mr Fox said the setback meant it was too late to meet Air AsiaX's planned timetable of flying into Avalon early next year.

"We had Air AsiaX on board, they were the foundation of where we wanted to go with this. They want to start up in the first quarter of next year or second quarter. The reality is that we will not be able to fulfil that commitment," Mr Fox said.

Linfox is hoping to establish an 8000-square metre international terminal at Avalon, which would become a low-cost carrier hub.

The site, which is the main base for Qantas' budget offshoot Jetstar's domestic services, would include quarantine and customs facilities and possibly a hotel and retail precinct.

It is hoped the new terminal would triple annual passenger numbers to more than 2 million international passengers a year.

Air AsiaX could not be reached for comment.

Lets see what other goodies he wants from pakl lah!A very interesting way of doing business when half the time his flights are not on time!Or may be we should swap him with the jala guy and what will happen!

Stop pressuring Government, MAS union tells AirAsia


PETALING JAYA: The Malaysia Airlines Employees Union wants AirAsia to stop pressuring the Government to allow it to operate from Subang airport or turn it into a low-cost hub.

A statement from the union said that the Government had already spent hundreds of millions of ringgit to build the Low-Cost Carrier Terminal (LCCT) to accommodate AirAsia's operations.

“In addition, among the proposals in the Transport Ministry's action plan is the building of a more comfortable and bigger LCCT which would cost some RM1bil.

“This is because the Government has plans to expand the capabilities of Subang airport to develop the flight industry and also for aerospace study purposes,” said union executive secretary Mustafar Maarof.

He said AirAsia should also not push for more flights on the Kuala Lumpur-Singapore route, as too many such routes had been opened by the Government to other airlines in the spirit of liberality and camaraderie.

He added that to accept AirAsia's call for more flights would result in heated and uncontrolled competition among local airlines, which could ultimately force local airlines to contemplate closure.

“As such, we hope AirAsia will cease making all these claims and provide space for the Government to address more pertinent issues,” Mustafar said.

AirAsia to fly Man Utd trophy

KUALA LUMPUR: AirAsia has been appointed the official low-fare airline for Manchester United's Barclays Premier League Trophy Tour 2008.

The airline's group chief executive officer, Datuk Tony Fernandes, said AirAsia was proud and honoured to be given the confidence to fly the prestigious trophy to Malaysia and other selected Asean venues.

"The preference for AirAsia as the official low-fare airline signifies the trust Manchester United Football Club has in our service."

Fernandes said AirAsia and MUFC had an excellent relationship, with AirAsia having an A320 aircraft emblazoned with the team's colours.

The tour kicked off here yesterday with an opportunity for the public to view the trophy at the Highstreet Floor, 1 Utama Shopping Centre.

Next stop is Jakarta, followed by Singapore on June 8 and Bangkok the next day.

Malaysia Airlines, AirAsia staff in row
Published: 2008/06/07



IN A twist of events, staff of the country's two major airlines, Malaysia Airlines (MAS) and AirAsia, are at loggerheads over the latter's request for more flights on the Kuala Lumpur-Singapore route to compete on a level playing field.

Staff of AirAsia have come to the defence of the budget airline, accusing the Malaysian Airline System Employees Union (Maseu) of deliberately confusing the facts of the issue or that it has a fundamental lack of knowledge about how the free market works.

Maseu earlier had told AirAsia to stop pressuring the government to allow it to operate from Subang airport and turn it into a low-cost hub as well as to not push for more flights on the Kuala Lumpur-Singapore route.

"At a time when the challenges faced by our respective airlines - and their management and staff - grow exponentially day-by-day, we would hope that all airline employees in Malaysia would focus on helping their respective companies overcome these hurdles rather than waste time, resources and energy in undermining these efforts," AirAsia communications team, representing the staff, said in a statement yesterday.



AirAsia does not have a staff union.

"It is not 'pressure' but simple fairness that the government do its utmost to enable AirAsia to perform at its ultimate capability. Doing so can help AirAsia generate even more revenue and employment in Malaysia's tourism industry.

"Unlike MAS, AirAsia is not a government-linked company but a private firm, founded and operating under its own team and in a free market environment," said AirAsia communications team.

KL-Trichy sector set to become bustling route
Other News & Views
Compiled by SIM LEOI LEOI, TAN SIN CHOW AND A. RAMAN


WHEN budget carrier AirAsia X starts flying to Trichy in October, the city’s airport authorities expect passenger traffic from Malaysia to the South Indian city to at least double, reported Malaysia Nanban.

Given the region's proximity to Malaysia and Singapore, the Kuala Lumpur-Trichy sector is likely to be a bustling route. Trichy, also known as the Rock City and a popular travel destination, is about 300km from South India’s main gateway, Chennai.

Trichy Airport director S. Sreekumar told reporters in Chennai on Saturday that the current passenger flow to Kuala Lumpur was between 60,000 and 100,000 yearly.

AirAsia wants level playing field


PETALING JAYA: AirAsia is not putting pressure on the Government but merely asking for fairness so that it can perform at its best, said its 5,000-strong staff.

This, they said, would help the airline generate more revenue and employment in Malaysia’s tourism industry.

“We welcome the competition (from Malaysia Airlines) but we hope the Government will provide a level playing field to ensure that the competition is fair and conducted in a regulated environment that benefits all stakeholders,” they said in a statement yesterday.

The statement was in response to MAS Employees Union executive secretary Mustafar Maarof’s remark on Wednesday that AirAsia should stop pressuring the Government to allow it to operate from Subang airport or turn it into a low-cost hub.

AirAsia to offer low fares for 250,000 seats
Published: 2008/06/10


AIRASIA Bhd will offer low fares starting from RM1 one way for about 250,000 seats for its domestic, regional and international routes under its Mega Sale promotion.

In a statement yesterday, it said the seats are made available from its hubs in Kuala Lumpur, Johor Baru, Kota Kinabalu and Kuching.

The promotion is for booking period from June 10 until June 22 and the travel period from July 1 until September 25.

The offers are only applicable through Internet bookings at www.airasia.com.



The fares are for one way from Kuala Lumpur hub to Langkawi, Penang, Johor Baru, Alor Star, Kota Baru, Terengganu and Kelantan.

AirAsia also offers RM1 from Kuala Lumpur to Singapore, Banda Aceh, Medan, Padang and Palembang.

Some other hot destinations which are priced at RM20 one way included Kuching, Miri, Kota Kinabalu, Sibu, Sandakan, Bangkok, Phuket, Krabi, Vientiane, Jakarta, Surabaya and Yogyakarta, it said.

Fares to Chiang Mai, Phnom Penh, Siem Reap, Hanoi, Clark (Manila), Macau, Shenzen and Haikou (Hainan) are priced at RM70 and Hong Kong at RM150, it said.

AirAsia X also included in this promotion a RM199 fare to Gold Coast, Australia.

All fares exclude airport airport taxes, fuel surcharges and fees, and are applicable for one-way travel only. — Bernama

AirAsia slashes fares to just RM1


KUALA LUMPUR: AirAsia has returned with irresistible promotions with some 250,000 seats up for grabs with fares from as low as RM1 to domestic and regional destinations in line with the Mega Sale Carnival 2008.

Fares as low as RM1 are for one-way from Kuala Lumpur hub to popular destinations in Peninsular Malaysia including the new stop, Kuantan, and international destinations such as Singapore, Banda Aceh, Medan, Padang and Palembang.

One-way tickets to certain destinations in Sabah and Sarawak and Southeast Asia are priced at RM20.

Fares to Chiang Mai, Phnom Penh, Siem Reap, Hanoi, Clark (Manila), Macau, Shenzhen and the new destinations of Haikou (Hainan) are at RM70 and Hong Kong at RM150.

To top it off, this promotion also includes AirAsia X service to Gold Coast, Australia, at RM199.

These low fares come with the lowest surcharges and airport tax in the country.

“From the past Mega Sale promotion, there was an increase in the number of tourists to Malaysia which helped stimulate the growth of the tourism industry,” said AirAsia group chief executive officer Datuk Tony Fernandes.

“Therefore, we believe this year’s campaign would encourage more visits from tourists.

“The Mega Sale also gives us a chance to enhance our customer satisfaction by providing exceptional holiday experience for a minimal fare,” he said.

Booking period is from today to June 22, while travel period is from July 1 to Sept 25.

KL - Tianjin (China) approved and coming soon.

Air Asia just launch another sale today!!! Probably to counter MAS!!

KL-Perth is just RM430 from 1 feb-30 April 2009!!!

I just booked KL-Brisbane yesterday on MAS for RM700 when MAS launched their sale!! :bash:

I just booked KL-Brisbane yesterday on MAS for RM700 when MAS launched their sale!! :bash:

syok!!! more wars for mas n airasia please can benefit me hahaha

btw bila u datang? feel free to contact me to meetup n bawa u jalan2 :)

one thing about MAS zero fare is...you only can get zero fare for a one way trip but if you take a return ticket, the you have to pay a little bit higher.

eg. my next trip to ho chi minh city which cost RM0 from KL-Saigon but RM399 for a return back.

anyway, better to fly 5 star than a 'new airbus'...:D

AirAsia: No plans to cut routes, trim flights
By B. Suresh Ram Published: 2008/06/11



BUDGET airline AirAsia Bhd said it will focus on building its passenger volume and reducing costs to offset high fuel prices.

Unlike carriers such as Malaysia Airlines and Jetstar, it has no plans to cut routes and destinations or trim its flights.

AirAsia group chief executive officer Datuk Seri Tony Fernandes said it is looking to shake itself out of the current airline industry crisis through marketing, which will help improve its revenue.

“There is only so much cost that you can cut … fuel price is growing at such a rate that you have to replace it with revenue as well,” he told reporters after the launch of its Kuantan-Kuala Lumpur route in Kuantan yesterday.



On May 30 2008, jet fuel price was hovering at US$160.7 (RM525.48) per barrel.

Fernandes believes that the airline can remain cost-effective in its operations and is developing areas such as Kuantan.

“We have developed many ways of keeping our air fares low despite the fuel price increase,” he said, adding that these include investing in a new aircraft fleet which burns lower fuel.

Meanwhile, AirAsia is looking at making Kuantan its east coast international gateway.

Fernandes said it plans to operate routes to Singapore, Jakarta and Bangkok from Kuantan.

Proposals for the routes have already been submitted to the Transport Ministry and the airline is awaiting the green light before proceeding.

“The first route we would like to do is the Kuantan-Singapore route,” he said.

So far, AirAsia has developed three hubs in the country, namely Kota Kinabalu, Johor Baru and Kuching to serve its domestic and international flights in the region.

“We feel there is an enormous potential (in Kuantan). That’s how we have to innovate,” Fernandes said.

Kuantan set to be AirAsia’s eastern hub


KUANTAN: Low-cost carrier AirAsia plans to have direct flights from here to international destinations like Singapore, Jakarta and Bangkok.

This follows the airline's introduction of flights from the Low Cost Carrier Terminal (LCCT) at KLIA to the state capital from June 1.

Present at the official launch here yesterday were Tengku Puan Pahang Tengku Azizah Aminah Maimunah Iskandariah Sultan Iskandar, Mentri Besar Datuk Seri Adnan Yaakob and AirAsia Group Chief Executive Officer Datuk Seri Tony Fernandes.

Speaking to reporters later, Fernandes said there was potential for Kuantan to become the airline’s east coast hub.

“We have been looking for an east coast hub as we think the east coast has enormous potential. If there is good infrastructure, there is no reason we cannot sell the whole of east coast from Kuantan,” he added.

There was a huge demand from Singaporeans for direct flights from Kuantan, he noted.

Fernandes said the airline had already submitted its application to the Transport Ministry and was awaiting a reply.

On the fuel price rise and the company’s efforts to remain cost- effective while introducing new routes and more flights, Fernandes said the way to deal with the increase was for the airline to market its way out of the problem.

“We have developed many ways of keeping our fares low despite the rising oil price,” he added.

“We also sell more things now, including hot food instead of boxed food. We have to find ways to deal with it. We have a brand new fleet, and fuel burn is much lower. “

Tengku Abdullah, in his speech earlier, said he hoped AirAsia would continue to operate in Kuantan despite the oil price rise.

one thing about MAS zero fare is...you only can get zero fare for a one way trip but if you take a return ticket, the you have to pay a little bit higher.

eg. my next trip to ho chi minh city which cost RM0 from KL-Saigon but RM399 for a return back.

anyway, better to fly 5 star than a 'new airbus'...:D

Well, I had to console myself that my KL-Brisbane flight would be on a 744 :banana: and would at least have meals.

syok!!! more wars for mas n airasia please can benefit me hahaha

btw bila u datang? feel free to contact me to meetup n bawa u jalan2 :)

My flight will be on the 26th Feb 2009.:)Available ka?

I have not actually booked any flight to KL for December though.Planning to take AirAsia from Perth and at the same time jalan2 there also.

My flight will be on the 26th Feb 2009.:)Available ka?

I have not actually booked any flight to KL for December though.Planning to take AirAsia from Perth and at the same time jalan2 there also.


Amboi bersemngat nak balik nampak :naughty: Sampai book 8 bulan lebih awal :naughty:

Amboi bersemngat nak balik nampak :naughty: Sampai book 8 bulan lebih awal :naughty:

Balikla.Dun wanna waste my time in Adelaide.:nuts:I dun really berjolly in Malaysia..have to 6 weeks of practical work experience..tu pun belum jumpe keje lagi.:)

U think I go back to marry?:nuts: But that's what 3 of my friends did though last summer:lol:But not me.

Idris jala is so angry with the fat bangla (aka tony fernandes...doesnt he look like one?) he revoked discounts given to TF each time the fat bangla wants to travel in mas,

rupanya, all this while when on overseas trip, the fatty travels on business or first class at 50% discount. Special discount. Even though mas and ak dont have staff travel arrangement but this was made in a good faith and malaysian spirit, too bad the fatty gone overboard with his emotion...and now we can see who's the victim and who's the culprit in malaysia's aviation industry

AirAsia starts second daily flight to Guangzhou
Published: 2008/06/13



AIRASIA Bhd has started its second daily flight to Guangzhou amid strong demand for its services.

AirAsia regional regional head of commercial Kathleen Tan said the demand for the route has been phenomenal since the no-frills airline first launched its Guangzhou flight in January 2008.

The route has been recording a monthly average load of between 90 and 95 per cent.

Guangzhou is China's third busiest city and is under-served from both sides of China and Malaysia.



"AirAsia's commitment in offering low fares is key for value-conscious and growing small- and medium-size enterprises in both countries, and we are definitely stimulating a new demand and creating a new market," Tan said.

She said Guangzhou's significance as a commercial and manufacturing hub has many Malaysians venturing into the region to look for business prospects.

"AirAsia decided to be a prominent 'bridge' between the two regions, thus promoting economic growth for both countries and enhancing economic collaborations," Tan said.

She said a growing trend of mainland Chinese seeking outbound travel to Southeast Asia and AirAsia's connectivity to Guangzhou come at the most opportune time to tap the big leisure market.

AirAsia: KL-Haikou route gets good response
Published: 2008/06/13



HAIKOU (Hainan Island): The response to AirAsia Bhd’s latest route, Kuala Lumpur-Haikou, has exceeded expectations since it was inaugurated on May 22.

AirAsia group executive officer Datuk Tony Fernandes said the low-cost budget carrier sold more than 35,000 seats, both ways, since it started receiving bookings over the Internet about two months ago.

“AirAsia recorded an amazing 100 per cent load factor for the inaugural flight,” Tony said.

“It is also noteworthy that AirAsia’s load factor for this route in May was 78 per cent which is quite strong for a new sector not previously served by any airline” he told reporters after the launch of the route by Transport Minister Datuk Ong Tee Keat yesterday.



The promotional fare for a one-way flight from KL to Haikou begins at RM32 or RMB68.

AirAsia is the first airline to offer daily direct flights from Kuala Lumpur.

Tony said a reason why AirAsia started the daily direct flight to Hainan island was because of strong families ties between the people there and in Malaysia.

Speaking to reporters later, Ong who is also a Hainanese, welcomed the new route to Haikou.

“It used to take a whole day to get to Haikou with connecting flights from Hong Kong, Macau or Shenzhen.

“But now with the direct flight, it takes only about three hours,” he said. — Bernama

Fuel price hike: AirAsia will not reduce routes
By : Minderjeet Kaur in Haikou, China

NO-FRILLS airline AirAsia will continue to expand its routes despite the recent fuel hike.

It will also not increase the fuel surcharge.

AirAsia group executive officer Datuk Seri Tony Fernandes said it would be a wrong move for the company to cut back on routes.

"We want to take a different view. We cannot be reducing routes due to the fuel price hike," he said after the official launch of AirAsia's latest route between Kuala Lumpur and Haikou in Hanan.

Fernandes said since the service began on May 22, the route had exceeded all expectations.

"We have sold more than 35,000 seats," he said, adding that the passenger load had increased from 78 to 85 per cent within two months.

He said some airlines might think it was not a good idea to launch new routes especially after the fuel price hike but AirAsia's results have been encouraging.

"KL-Haikou is going to be profitable because we have also received support from the Hainan administration," he said at the Sheraton Haikou hotel here yesterday.



He said AirAsia introduced daily flights to Hainan Island because there were strong family ties between the Hainan community and Malaysians.

There are about 400,000 Malaysians of Hainanese origin in the country.



The launch was also attended by Transport Minister Datuk Ong Tee Keat, who praised AirAsia for going into untapped markets.



"This new service would also widen Malaysia's network in southern China. We have 141 flights per week flying to China," Ong said.

He said with such an extensive network in the region, the ministry wanted to draw more international and regional guests to China, using Kuala Lumpur as its connecting gateway.

"It used to take a whole day to get here (Haikou), where you would need connecting flights from Hong Kong, Macau or Shenzhen, but now with the direct flight, it will only take about three hours," he said.

Haikou is the fifth destination for AirAsia in China, with the others being Macau, Hong Kong, Shenzhen and Guangzhou.



AirAsia's promotional fare for a one-way flight on the KL-Haikou route begins from RM32.

Nomad Investment accumulates AirAsia shares


KUALA LUMPUR: AirAsia Bhd, whose share price had come under some selling pressure recently, saw Nomad Investment Partnership LP accumulating 10 million shares of the low-cost carrier.

A filing with Bursa Malaysia showed the Cayman Islands-registered fund buying 8.23 million shares on June 10 and another 1.77 million shares the next day.

The recent acquisitions saw the fund’s shareholding increased to 5.58% or 130 million shares.

Meanwhile. T. Rowe Price Associates, Inc. sold 3.2 million shares in the open market on June 6, cutting its stake to 157 million shares or 6.61%.

According to a filing, the shares are owned by various individuals and institutional investors where T. Rowe Price is an investment adviser with the power to direct investments and/or power to vote on the securities.

AirAsia’s share price fell to an all-time low of 82 sen on June 10.

Tengku Abdullah hopes AirAsia’s KL-Kuantan flight will boost tourism
Saturday June 14, 2008
By ROSLINA MOHAMAD
TheStar

KUANTAN: More should be done to highlight the state’s natural wonders as AirAsia flights to Kuantan are expected to spur tourism, said Tengku Mahkota Pahang Tengku Abdullah Sultan Ahmad Shah.

“I hope it will promote Pahang and the tourism spots which I feel have not been fully tapped,” he said in his speech at the official launch of the Kuala Lumpur-Kuantan flight at a hotel here on Tuesday.




http://thestar.com.my/archives/2008/6/14/southneast/ms_03fernandes.jpg

Improving links: Fernandes (second from left) presenting a memento to
Tengku Abdullah (left) while Adnan (third from left) looks on at the launch of
the Kuala Lumpur-Kuantan AirAsia flight in Kuantan on Tuesday.




Also present were Tengku Puan Pahang Tengku Azizah Aminah Maimunah Iskandariah Sultan Iskandar, Mentri Besar Datuk Seri Adnan Yaakob and AirAsia Group chief executive officer Datuk Seri Tony Fernandes.

Tengku Abdullah urged Tourism Malaysia and the state to do more publicity as the state had beautiful islands, highlands, freshwater lakes, beaches, caves, as well as national and state parks.

“Some of these places do not get extensive promotions.

“Another aspect that needs attention is land and sea transportation to facilitate travel,” he said.

The public and private sectors should come up with a comprehensive plan on projecting Pahang as the place to visit, he added.

“To know Malaysia is to experience Pahang,” Tengku Abdullah said.

He said he did not want to see facilities being built merely for physical presence or to meet a target, adding that they should be well constructed.

“If a hotel is built, it should have good finishings so that visitors will feel the time and money spent here is worth every sen.

“The same attention must be given in the delivery of food and ensuring a clean setting for diners,” he added.

Speaking to reporters later, Tengku Abdullah said there was lack of billboards in Pahang and other states displaying tourism attractions.

Meanwhile, Fernandes said that AirAsia would work with holiday agencies to deliver packages to promote Pahang.

“The airline is selling a lot of products, including hot food instead of boxed food, and we may introduce some Pahang traditional delicacies,” he said.

He added that there was enormous potential to promote Kuantan as the gateway to the east coast while agreeing with Tengku Abdullah on the need for good land and sea links.

AirAsia presses ahead with new routes
Published: 2008/06/16



AIRASIA, the region's largest low-cost carrier, said yesterday that despite surging fuel prices it will not scale back growth plans and will press ahead with an ambitious route expansion programme.

"We will continue to put on new routes. As long as we can make a profit from our operations, we will not hold back our growth plans," chief executive officer Datuk Tony Fernandes said.

"I am taking a contrarian view. There is a limit to how much I can cut costs. If I cut my routes, where is my growth going to come from? In our case, we still can make money from our routes," he said.

Airlines worldwide including Virgin Blue, Qantas Airways and US Airways have cut back their growth plans and axed loss-making routes to weather spiralling fuel prices.



AirAsia recently launched three new routes - one to Kuantan in Pahang, and to Haikou (China) and to Hong Kong.

"By year-end, we will fly to south India, new destinations in India and mount more flights to Singapore," the aviation tycoon said.

Fernandes also said the carrier's new A320 Airbus jets were more efficient.

"Our operational costs have come down due to the Airbus's better fuel burn," he said.

The c arrier's fuel cost represents 50 per cent of total operational costs.

He said AirAsia has frozen the hiring of new staff who are not related to fleet growth, but that it would not reschedule the delivery of the A320 Airbus aircraft.

The carrier has to date received about 67 A320s and is phasing out its old Boeing 737s. It has agreed to buy a total of 175 aircraft.

Fernandes remained upbeat about the carrier's performance amid economic uncertainties due to escalating food and fuel prices worldwide.

"We are seeing a slight increase in passenger volume. Our business is still good. I expect our revenue to be better than budgeted in 2008," he said. - AFP

Flight delayed more than 3hrs? Get a RM200 voucher
By PAUL CHOO


KUALA LUMPUR: AirAsia will compensate passengers whose flights are delayed for more than three hours.

The budget carrier announced Monday that it would give RM200 e-gift vouchers to passengers delayed from the scheduled time of flight departure.

Labelled as its “On Time Guarantee”, the e-gift voucher can be used to purchase one’s next AirAsia flight or any AirAsia products and services online and is valid for three months.

All flights beginning Monday have been accorded the service, which comes at no extra cost to passengers.

It is however only applicable to delays caused by AirAsia, and does not cover circumstances such as bad weather, air traffic control, airport closures and acts of God.

Passengers eligible for the compensation will receive the voucher within three working days of the delayed flight via e-mail. A call centre will be set up soon for those without e-mail accounts.

Describing it as the first initiative to a string of “5-star” services that will be revealed in weeks to come, the budget carrier’s chief executive officer Datuk Seri Tony Fernandes touted the move as possibly a world first.

He said the three-hour period was just the start, adding that once an order of a dozen Airbus 320 materialise within this year there would be room for other improvements.

How AirAsia keeps its fares low
By PAUL CHOO


PETALING JAYA: AirAsia is able to retain its low fares despite the rising cost of fuel by reducing other costs, its director Conor McCarthy said.

“We’ve adopted various measures to offset our costs, such as charging for checked-in luggage, and promoting more merchandise and food sales on flights.

“We also have to rely on our tour packages and insurance to help alleviate costs,” said McCarthy, adding that low fares were a “need” to stimulate demand.

McCarthy, who is also adviser to AirAsia, was responding to public queries on whether price increases were in store following the recent rise in fuel prices after subsidies were restructured last week.

He added that AirAsia’s fleet of Airbus A320 aircraft also reduced fuel costs by 25% per seat.

However, even with such measures in place, McCarthy said AirAsia was being bogged down by the Government.

“Malaysia, and South-East Asia for that matter, is ripe for development and one method would be to liberalise the airways, especially the Kuala Lumpur-Singapore route, of which AirAsia is now accorded only two flights per day.

“In addition, AirAsia has requested to partially move its operations to Subang airport due to the congestion in the Low-Cost Carrier Terminal (LCCT), and that too has not been allowed.

“There is no harm in encouraging competition among airlines, because it is Malaysians that stand to gain whilst the airlines improve themselves over time,” added McCarthy, who is also PlaneConsult.com managing director, an international aviation consultation company.

I hope my next flight by Air asia to be delayed :banana:

AirAsia says has not hedged fuel for H2 2008
Published: 2008/06/16



MALAYSIA'S budget airline AirAsia has not hedged its fuel requirements for the second half of 2008, chief executive Datuk Tony Fernandes said today.

He also said that profitability will be hurt after fuel costs climbed to record levels and a weaker ringgit in the past few months raised its US dollar debt repayments.

The Sepang-based airline doesn't see the need to exercise an option to buy more planes in addition to its firm order for 175 Airbus A320 planes, he said.

Instead, the carrier has requested that Airbus accelerates its plane delivery to allow it to add routes faster, Fernandes said.



AirAsia will receive as many as 20 aircraft in 2009 if its request for additional delivery of three more planes is approved, he said. New planes are more fuel efficient, he said. - Reuters, Bloomberg

AirAsia CEO sees profit even if oil hits US$200
By Chong Pooi Koon Published: 2008/06/17


The key is to launch more high demand routes that will keep sales growing, coupled with a strong marketing skill that will ensure those seats are filled, says Fernandes


BUDGET airline AirAsia Bhd can still make a sustainable profit even if crude oil price hits US$200 (RM654) a barrel, its chief executive officer Datuk Tony Fernandes said.

The spiralling price of oil is beyond any airline's control and fuel hedging can only be a "temporary pain relief" at best, he said.

Fernandes said the key to AirAsia's sustainability, regardless of crude oil prices, is to launch more high demand routes that will keep sales growing, coupled with a strong marketing skill that will ensure those seats are filled.

"We've taken a very different approach, in that we will market ourselves out of this problem. I think to put your head in the sand and cry about oil and cut routes is not the solution," Fernandes told reporters on the sidelines of the World Economic Forum on East Asia in Kuala Lumpur yesterday.



At a time where airlines around the world are scrambling to drop less profitable routes to contain rising fuel cost, and others are being forced out of the business, AirAsia has continued to expand routes aggressively.

It has just added four routes over the last two months, and has another four coming up in the next two months, Fernandes said.

"We find ways to innovate," he said, citing as an example its recent route to the Chinese city of Haikou, which enjoys good demand from passengers.

"We started KL-Haikou. No one had ever done it, and now we are full, with 92 per cent load factor. We are making good profit from that route. If we didn't do that route, we'd have less profit to cover the price of oil," Fernandes added.

He is also not worried about a potential economic slowdown, or that rising food prices may force consumers to keep their money for other things more essential than travel. Instead, he believes people may go for holiday even more as they seek refuge from the reality of the life.

"There are two things that will benefit from an economic slowdown - the movie industry and travel. Because what do you want to do if the economy slows? You want to go out and have some fun! So you'll lose yourselves in it," he said.

He said during the Great Depression of the 30s, the movie industry in Hollywood prospered. The same theory applies now to the travel sector.

At least for now, he said, AirAsia will not need to raise airfares or slap a fuel surcharge to compensate for the higher costs. If oil prices reach US$200 per barrel, the company is prepared and still has many ways to stay profitable. This includes selling more products onboard, and finding ways to "monetise the 22 million ready audience" on its flights.

Fernandes also dismissed fuel hedging as a strategy, due to the current volatile nature of oil prices.

AirAsia going after the five-star market now
By Rupinder Singh Published: 2008/06/17

http://www.btimes.com.my/Current_News/BTIMES/Tuesday/Nation/airaziaf.xml/Article/Current_News/BTIMES/Images/btgraph8/improve.jpg

BUDGET carrier AirAsia Bhd says the number of corporate passengers using its no-frills service has increased by 300 per cent in the last three months, taking a chunk of the premium market largely served by full-service carriers like Malaysia Airlines (MAS).

In yet another show to compete directly with MAS, group chief executive officer Datuk Seri Tony Fernandes said AirAsia is taking initiatives to improve its five-star services - in both products and services - to add more value to its low-fare airline tag.

With the introduction of new aircraft and increased connectivity between regional destinations, he said, the corporate sector, mindful of escalating prices, has been starting to use the budget carrier.

"The five-star market isn't exclusive. Just as the same way the zero fare market (referring to MAS zero fare campaign) isn't exclusive. We are now going after the five-star market," Fernandes told a news briefing to introduce its "AirAsia On Time Guarantee" programme in Kuala Lumpur yesterday.



Fernandes said he got the "inspiration" to market the top-end business as he foresaw MAS zero fare campaign neglecting its full-service paying passengers.

Fernandes also said that surging fuel prices will force the global aviation industry to consolidate whereby some carriers will merge and some others go into bankruptcy.

On AirAsia's part, it has been approached by other airlines about tie-ups and operating deals, but did not elaborate.

Meanwhile, AirAsia plans to beat the fuel price pressure by expanding routes, increasing flight frequency and accelerating the delivery of the remainder of its 175 new A320s.

On the "AirAsia on Time Guarantee" programme, Fernandes said passengers whose flights are delayed for more than three hours from the scheduled time of flight departure will be entitled to a RM200 AirAsia e-gift voucher.

The e-gift voucher is valid for a three-month period and can only be used for a one-time payment for one booking only.

AirAsia: We owe MAHB only RM62.6m
Published: 2008/06/17



BUDGET airline AirAsia Bhd said its owes Malaysia Airports Holdings Bhd (MAHB) RM62.6 million in service charges, and not RM110.36 million as quoted by a government minister recently.

Last month, Transport Minister Datuk Ong Tee Keat said the airline had accumulated the amount outstanding between 2002 and March 31 this year for its use of airports in the country.

Contrary to claims made, AirAsia said it has been making monthly payments to MAHB and denied allegations raised in Parliament that it has not paid the airport operator since 2002.

"Payments made by AirAsia over the last five years have grown substantially and the amount to date is in excess of RM279.34 million," said AirAsia said in a statement yesterday.



It said a portion outstanding was pending its request for MAHB to review its charging mechanism.

Since moving into the low-cost carrier terminal in Sepang in March 2006, AirAsia said it has continued to be charged the same rates as those applied at the main terminal building of the KL International Airport (KLIA), which it feels is too high.

"We received indication that MAHB would review the terminal charges to reflect the basic facilities available. However, two years on after the move, there is still no commercial agreement prepared," it said.

AirAsia also called for the implementation of an incentive scheme for all carriers flying in and out of Malaysian airports, "that will provide MAHB with growth in the number of passengers and landings as well help achieve tourism growth in Malaysia".

AirAsia unfazed over high fuel prices


KUALA LUMPUR: AirAsia Bhd is unperturbed by the prevailing high fuel prices even if crude oil reaches US$200 per barrel, said chief executive officer Datuk Tony Fernandez.

“We’re comfortable even with (crude oil price at) US$200 per barrel. We will market ourselves out of this problem,” he said on the sideline of the World Economic Forum on East Asia yesterday.

He said if the oil price were to breach US$200 a barrel, AirAsia might have to tweak airfares slightly, expand its food menu and sell more duty-free products on board to generate extra income.

In addition, it would add on services like use of mobile phones on flights and work with airport operators for lower charges.

AirAsia does not intend to take on a fuel hedging strategy due to the volatility in oil prices.

“Fuel hedging is a painkiller, which relieves in the short-term. In the long term, we need to build a sustainable business that has a strong topline growth,” Fernandez said, adding that it would require volume, innovative routes and network development.

The budget airline, which has launched two new routes in the last two days, is expected to launch four more destinations in the next two months including Tianjin, Tiruchirapalli and Makassar.

While a number of airlines are increasing fuel surcharges due to the high oil prices, AirAsia is unlikely to follow suit.

“We’re comfortable with the current surcharge level,” Fernandez said.

He also believes that the travel business and the music industry would benefit the most in an economic slowdown.

“People would want to run away and have a break. Airfares in Malaysia are the only thing that has come down. SARS is a lot worse than high oil and we survived SARS,” he said.

Compensation for AirAsia flight delays


KUALA LUMPUR: AirAsia will compensate passengers whose flights are delayed for more than three hours.

The budget carrier said it would give RM200 e-gift vouchers that can be used to buy their next AirAsia flight or any AirAsia product or service online. The e-voucher would be valid for three months.

Labelled as its “On Time Guarantee,” all flights from yesterday were accorded the service, which comes at no extra cost to passengers.

“We decided to put our money where our mouth was (in giving 5-star service).

“And interestingly enough the idea came from one of our staff,” said the budget carrier’s chief executive officer, Datuk Seri Tony Fernandes.

“I dare say we’re the first in the world to do this, and the fact that it’s gonna “hurt us” if we’re late is testament to our commitment to 5-star service for passengers,” he told a press conference here yesterday.

The refund, however, will only be applicable for delays caused by AirAsia and will not cover circumstances such as bad weather, air traffic control, airport closures and acts of God.

Passengers eligible for the compensation will receive the voucher within three working days of the delayed flight via e-mail. A call centre will be set up soon for those without e-mail accounts.

He said the three-hour period was just a start, adding that once the 12 new Airbus 320 were delivered, likely within this year, there would be room for improvement. The delay period would be reduced to one hour.

“In addition, over the last few weeks, we were the only airline to announce new routes to 'market ourselves' to survive the skyrocketing oil prices,” he said, adding that ticket sales had not been affected.

Tomorrow, AirAsia is expected to announce an array of new additions to their food menu.

In a separate statement, AirAsia clarified that it was financially strong and had been making monthly payments to Malaysia Airports Berhad in response to reports that AirAsia had not paid the latter since 2002 for airport terminal charges and tariffs.

“Contrary to claims made, the current management of AirAsia has made payments to Malaysia Airports Berhad over the last five years,” it said.

The statement further places on record that the amount owed was RM62.67mil, and not RM110.36mil purportedly claimed by the airport operator.

MAS terminates travel privileges for AirAsia CEO
By LISA GOH




PETALING JAYA: The war of words between AirAsia and Malaysia Airlines seems to have moved to a personal level with the latter terminating discount benefits for the former's group chief executive officer Datuk Seri Tony Fernandes.

In a letter dated May 28, MAS managing director Datuk Seri Idris Jala said the MAS management team had decided it was “best to withdraw” Fernandes' travel privileges following protest letters from many MAS staff.

“I thought I should let you know that there have been numerous complaints from MAS staffers questioning the special privileges granted to you since 2006.

“Many of them feel hurt and frustrated with what they read in the news ... in the wake of your various negative statements about Malaysia Airlines,” he said in the letter.

Fernandes said he had been enjoying 50% discounts for first/business class and 75% for economy class. He said he never used the 75% discount as it was only for domestic routes which he flew on AirAsia.

When contacted, Fernandes said he felt surprised when he received the letter “about three weeks ago”.

He explained that discounted or free seats were a courtesy offered to fellow airline chief executive officers and this was practised even between the “bitterest of enemies”.

“We also offer free seats to Idris, but he’s never taken up the offer,” he said. That offer to Idris, he said, would not be withdrawn.

Asked if he was offended by MAS’ withdrawal, he replied: “No, just a little disappointed.”

“I never complained when MAS launched its free fares promotion. It is nothing personal and I will continue to ask for a level playing field.”

“I'd like to say that MAS has the best crew and I've always been treated warmly by MAS staff. They have always paid me utmost compliments on what we’ve done with AirAsia.

“I’ve always preferred to fly with MAS but I guess all good things must come to an end,” he said.

He said he received 75% discounts from Cathay Pacific and Qantas Airlines, and flew free with Virgin Airlines.

MAS confirmed this move.

“We've provided the travel privilege out of goodwill since 2006 in response to Tony’s request for interline facility for his own travel on our international routes although AirAsia does not have an interline agreement with Malaysia Airlines,” Idris said.

The statement added that according to industry practice, “only airlines with interlining agreements will consider granting such travel privileges for airline employees”.

Not to worry SIA will for sure pick him anywhere anytime!!!As long as he can deliver more PAX to changi ha ha

Fuel, weaker ringgit to affect AirAsia profitability
by Gan Yen Kuan
Email us your feedback at fd@bizedge.com


KUALA LUMPUR: AirAsia Bhd said its profitability will be hurt after fuel costs climbed to record levels and a weaker ringgit in the past few months raised its US dollar debt repayments.

The airline also did not see the need to exercise an option to buy more planes in addition to its firm order for 175 Airbus A320 planes, its chief executive officer Datuk Tony Fernandes told Bloomberg in an interview here yesterday.

Instead, the carrier had requested that Airbus accelerates its plane delivery to allow it to add routes faster, Fernandes said.

AirAsia would receive as many as 20 aircraft in 2009 if its request for additional delivery of three more planes was approved, he said. New planes were more fuel efficient, he said.

Meanwhile, Yong Min Wei reported Fernandes as saying that AirAsia would continue to fly even if soaring oil prices were to hit US$200 (RM660) a barrel.

He said it would not cut routes nor increase its fares. “We will continue to build the business to be sustainable,’’ he told reporters on the sidelines of the World Economic Forum on East Asia yesterday.

Fernandes also said AirAsia was expecting the delivery of 12 new Airbus within the next six months. On AirAsia’s outlook if oil prices were to exceed US$200 a barrel, he replied: “I’m an optimist and will not give up.”

At a separate event, Gan Yen Kuan reported that AirAsia Bhd was going full steam to grow its customer base by introducing several initiatives, in a move to counter Malaysian Airline System Bhd’s (MAS) recently launched low fares campaign.

For a start, it has launched ‘On Time Guarantee’, an initiative that will compensate travellers whose flights are delayed for more than three hours with a RM200 AirAsia e-gift voucher.

The low-cost carrier would start its branding campaign soon around Asia and launch several more “five-star products” in the next two to three weeks, said Fernandes.

“We think initiatives like this will get us a new market that wasn’t there before. Growing our market by 10% will help to cover a lot of the oil cost.

“The five-star market isn’t exclusive, just the same way the zero-fare market isn’t. MAS gave me the inspiration, in the same way AirAsia gave them inspiration,” he told reporters here yesterday prior to the launch of ‘On Time Guarantee’.

Tagged “Now that’s what we call the real five star”, the initiative is aimed at tapping the corporate customer segment, Fernandes said. He claimed that AirAsia was the first airline in the world to provide on-time guarantee. In May, it reported an on-time performance of 89% for the Malaysian operations.

“Many corporates are coming to our market now. Obviously, pricing is going up and people are looking for more values. We grew our corporate customer base by 300% in the last two months,” he said.

AirAsia’s current fleet consists of 43 Airbus A320s and 17 Boeing B737s. As it is taking delivery of more new A320 aircraft, and with the expansion of the low-cost carrier terminal in Sepang, Fernandes said his ultimate target was to guarantee that its flights would not be delayed for more than one hour.

In Malaysia, AirAsia still has two B737s operating out of Kota Kinabalu. These aircraft would be replaced in September, he said, after which it would have a common fleet of A320s.

Thai AirAsia and Indonesia AirAsia will phase out their B737 aircraft in stages. AirAsia has ordered 175 A320s, with an option for 50 more. It is taking delivery of 12 A320s in the second half of this year, and 17 aircraft next year.

Asked how MAS’ low fares campaign has affected AirAsia’s sales, Fernandes said: “We don’t see any slowdown. Our load factor has been very strong. Our sales have been exceptionally good over the last few months.”

To counter rising fuel prices, he said part of AirAsia’s effort was developing and marketing new routes and existing profitable routes, such as adding a second frequency to Guangzhou and soon Hong Kong.

“Oil is not a permanent issue. There is a silver lining. If we can survive this oil crisis, then we will be in a very strong position because a lot of people are not going to survive this,” he added.

Meanwhile, Fernandes said AirAsia had been approached by several airlines in the past few months that requested mergers and acquisitions. However, he did not give further details on that matter.

Jala withdraws privilege for Fernandes
by Gan Yen Kuan
Email us your feedback at fd@bizedge.com


KUALA LUMPUR: The bitter feud between Malaysian Airline System Bhd (MAS) and AirAsia Bhd may have come to a head following AirAsia chief Datuk Seri Tony Fernandes’ decision not to fly MAS anymore, given the national carrier’s move to withdraw his “travelling privilege”.

MAS managing director and chief executive officer Datuk Seri Idris Jala wrote a letter dated May 28 to Fernandes, informing him that MAS had decided to withdraw the “travelling privilege” given to him in 2006, local online news website Malaysiakini reported.

The priviledge entailed a 50% discount on first and business class, and a 75% discount on economy class. However, these had been lifted effective June 1.

Confirming the report, Fernandes told The Edge Financial Daily: “Yes, it’s true. We all laughed at it (the letter). I think it’s funny.” Fernandes said he would not fly MAS anymore and it was not entirely because he no longer enjoyed the discounts.

“Even with the 50% discount given by MAS, the fares are still more expensive than what Etihad and Qantas sell,” he quipped. “Etihad’s fares are cheap. I also get more than 75% discount from Qantas and Cathay Pacific.”

According to Fernandes, it is a common practice for airlines’ chiefs to give discounts to rival airlines’ chiefs as goodwill.

“I have also given Idris Jala his privilege. When I wrote the letter to him requesting for discounts, I told him, ‘you can travel on mine for free’. He and his family can travel on any AirAsia flights for free. And this privilege still stands,” he added.

Fernandes said he had utilised the travelling privilege given by MAS for about seven times on international flights in the past two years. However, Jala has never utilised the privilege given by AirAsia.

“I never used it for domestic flights; we have our own airline. It is no big deal if you want to take it (travelling privilege) away. I was just surprised that even MAS’ unions and its workers know about me getting discounts,” Fernandes added.

In the letter, Jala told Fernandes that MAS’ decision to withdraw the privilege was a result of the anger among its unions and workers over Fernandes’ consistent criticisms of MAS.

“We have received a lot of letters of protest from many MAS staff regarding your travelling privilege in the wake of your negative statements about MAS.

“Many of our staff feel extremely hurt and frustrated with what they read in the news. The sense of unhappiness among our staff is growing and the pressure from the unions is mounting by the day,” Malaysiakini reported, quoting Idris.

“Left with no choice, the management team decided it would be best to withdraw your travelling privilege with immediate effect beginning June 1, 2008.”

On that note, Fernandes said Jala was “hiding behind the unions” because “MAS staff treat me very well.

“If they (MAS staff) feel hurt, what about the hurt done to AirAsia staff on the routes issue?” he asked. AirAsia has long been lobbying for open competition, particularly on the full opening of the Kuala Lumpur-Singapore route, without which he feels AirAsia was deprived of a level playing field.

“This is competition. There is nothing personal. If MAS wants to take it personal, I’m fine with it,” he added.

Meanwhile, in an emailed statement, MAS stressed that it withdrew the travel privilege given to Fernandes due to “growing employee dissatisfaction”.

“We have provided the travel privilege out of goodwill since 2006 in response to Fernandes’ request for interline facility for his own travel on our international routes although AirAsia does not have an interline agreement with Malaysia Airlines.

“According to industry practice, only airlines with interlining agreements will consider granting such travel privileges for airline employees,” Jala said.

....funnylah....mcm budak2!!!

Cabinet to decide on AirAsia's proposal



KUALA LUMPUR: AirAsia's proposal to increase the number of flights to Singapore will be referred to the cabinet, Transport Minister Datuk Ong Tee Keat said yesterday.

"I am mindful of the increase in passenger load, but I will have to seek a fresh mandate from the cabinet," he said after the launch of AirAsia's Kuala Lumpur-Haikou (China) route.

"If we increase the number of AirAsia's flights to Singapore, we will have to increase Singapore's budget airliner's flights frequency to here, too," he said, adding that his ministry would study how this would benefit the country.

AirAsia flies twice daily to Singapore while Tiger Airways has the same number of flights to here.

AirAsia's group executive officer Datuk Seri Tony Fernandes said the plan was to increase the number of flights to six a day.

"It is our most profitable route and the demand is high."

Fernandes said demand for other destinations was also high as the airline offered attractive fares.

"We will continue to provide low fares and attract more tourists to come here."

Later in Muar, Bernama reports that Ong said the government would not hesitate to rent or buy new train coaches from abroad to improve the services of Keretapi Tanah Melayu Berhad (KTMB).

However, he added, the effort could not be undertaken overnight as it would take time.

"Just to order new train coaches will take two years," he said after opening the new building of Sekolah Jenis Kebangsaan Cina Kung Yu in Kundang Ulu town.

He said his ministry had received feedback from various quarters on conditions inside the train coaches and stations which needed to be refurbished and upgraded.

"Some of the old train coaches with the engines running on diesel or electricity also need to be repaired for reuse.

"In May, I had also asked KTMB to restructure their plans and to solve arising problems in restoring and improving train services."

Ong said he was personally monitoring the punctuality of the train services in the effort to make rail travel a popular choice of the people.

AirAsia moves to boost ancillary income
By Jeeva Arulampalam Published: 2008/06/19


BUDGET airline AirAsia Bhd seeks to increase its ancillary income from services such as in-flight meals, hotel bookings and travel insurance to 13 per cent of its total revenue, from nine per cent currently, to recoup rising fuel costs.

However, no time frame has been specified.

Group chief executive officer Datuk Seri Tony Fernandes said this 13 per cent result is equivalent to RM390 million from the group's annual consolidated revenue of RM3 billion, which includes its Indonesian and Thai operations.

"When we first started, it was one per cent. So 13 per cent pays for a lot of oil," he said after launching AirAsia's latest in-flight menu in Kuala Lumpur yesterday.



He said the airline has to be innovative in dealing with surging oil prices and thus, selling hot meals on board and AirAsia merchandises online are some ways to increase its income.

"A much easier solution is to increase our fuel surcharge, and the harder way is to market yourself out of this," he added.

AirAsia had repeatedly said that it will not raise its fuel surcharge despite the current high oil prices.

Fernandes said contribution per passenger for food sold on board has increased to RM3.12 from RM1 two years ago and he expects it to grow further.

"So what is a cost item for many airlines is a revenue item for us," he said, adding that AirAsia is mulling the possibility of operating its own kitchen.

"Other airlines have even asked us if they can have these food. This will bring in third-party revenue for AirAsia," he said.

Its hot meal items include roti jala, roti canai, chicken rice, Indonesian fried rice with satay, and nasi lemak, which are supplied by local entrepreneurs such as Sri Melur and 1901.

Fernandes believes that offering a varied selection of hot meals will draw a new audience to travel with AirAsia, which inevitably increases its sales.

"This is part of our five-star response. We have seen our audience change as well and more corporations are flying with us," he said.

Passengers can pre-book their meals online when purchasing flight tickets and enjoy savings of up to 10 per cent.

AirAsia to raise ancillary income, not fuel surcharge[/size]


KUALA LUMPUR: AirAsia Bhd will not raise its fuel surcharge but will seek ways to expand its ancillary income to cover the rising cost of jet fuel, which has surged 92.7% to US$168.10 per barrel from a year ago.

“I don’t foresee it (raising the fuel surcharge), this is why we’ve other forms of revenue. All these things add to the bottomline,” group chief executive officer Datuk Seri Tony Fernandes said.

Last Thursday, Malaysia Airlines managing director Datuk Seri Idris Jala said the airline would be raising its fuel surcharge substantially on a route-by-route basis soon.

“High oil price is not going to go away, we must find new ways to replace the cost,” Fernandes told reporters at an “In-Flight Food Experience” event in which AirAsia showcased its new and expanded food and beverage menu yesterday.

He said expanding the menu and merchandise selection was one way of dealing with the high price of jet fuel.

Fernandes said the airline was targeting 13% of revenue to come from ancillary income, such as food and beverage and merchandise, from the current 9%.

The consolidated revenue of AirAsia, taking into account its operations in Malaysia and associates in Thailand and Indonesia, was RM3bil last year.

“We’re adding 12 new items to the menu, all sourced from local entrepreneurs,” Fernandes said.

“If you’ve a good selection people will buy it. We’ve seen sales contribution per passenger increase from RM1, when we first started selling food on our flights six years ago, to RM3.12 per passenger today,” Fernandes said.

The airline was pushing the online model of purchasing food and beverage and merchandise, he said.

AirAsia in deal to fly Malaysian civil servants
By Jeeva Arulampalam Published: 2008/06/20


http://www.btimes.com.my/Current_News/BTIMES/Friday/Nation/jbumit19.xml/Article/Current_News/BTIMES/Images/btgraph8/budget20.jpg

MALAYSIAN civil servants on official duties can now opt to fly either Malaysia Airlines (MAS) or budget carrier AirAsia to destinations plied by the two airlines.

This comes in the wake of Prime Minister Datuk Seri Abdullah Ahmad Badawi's announcement last week on austerity measures to save public spending amounting to RM2 billion annually.

Previously, civil servants were allowed to fly only on the national carrier as a means of supporting the government, said Bumiputra Travel and Tours Association of Malaysia (Bumitra Malaysia) president Syed Mohd Razif Syed Yasin.

AirAsia Bhd chairman Datuk Aziz Bakar said it hopes to secure half of the RM500 million spent per year for flight tickets by civil servants on work-related travel.



"They can travel (with AirAsia) at fares 20 per cent to 30 per cent lower than the published fares offered by other airlines," he told reporters after signing a memorandum of understanding with Bumitra Malaysia in Kuala Lumpur yesterday.

Aziz said the special fare for government officials include an in-flight meal, priority boarding and complimentary checked baggage handling fee for one bag.

He added that civil servants will soon be able to use long-haul budget airline AirAsia X for work-related travel as it finalises discussions by the end of the third quarter.

"It is a cost-efficient decision as government officials can enjoy low fares. It also seals the government's dedication in keeping costs at a minimum," he said.

The number of domestic and international trips made by civil servants amount to 250,000 per year.

AirAsia is said to have access to a new group of one million civil servants.

Bumitra Malaysia has 250 agents nationwide facilitating the booking of tickets for all government officials using the airline as a mode of transport for official duties through AirAsia's warrant booking system.

The programme, made available since January, was not fully implemented due to technical issues but has since been rectified.

AirAsia eyes half of civil servants’ work travel mart
by Gan Yen Kuan
Email us your feedback at fd@bizedge.com


KUALA LUMPUR: AirAsia Bhd is optimistic of capturing some 50% of the civil servants’ work travel market, which is estimated at RM500 million a year, with its offerings of low fares and value-added services.

Its chairman Datuk Aziz Bakar said there were increasing numbers of civil servants flying with AirAsia for work, and this represented a new market segment for the low-cost carrier.

“If we can get 20% to 30% (market share), we will be quite happy. It will definitely contribute quite a bit to our bottom line. There’s a half-a-billion business a year from government travel. If we can get 50%, that will be great,” he told reporters after the signing of a memorandum of understanding (MoU) between AirAsia and Bumiputra Travel and Tours Association of Malaysia (Bumitra) here yesterday.

Under the MoU, AirAsia is offering fares to government officials who travel for work at 20% to 30% discount to published fares of other airlines. The airfares also include in-flight meals, express boarding and free check-in of one luggage per passenger.

In Malaysia, civil servants’ flight bookings are made via Bumitra, which has some 250 members. Employees of government-linked companies were also categorised as civil servants, according to Aziz.

He stressed that AirAsia would not use the sales generated from its ordinary customer base to subsidise civil servants’ work travel. “This is a separate fare bucket and we are offering fair and fixed rates to the government.”

The MoU would soon cover routes operated by AirAsia’s sister airline AirAsia X, which currently flies to Gold Coast in Australia and Hangzhou in China, he added.

While travelling with AirAsia was not an obligation, Aziz said civil servants would likely be encouraged to choose AirAsia, in line with recent calls by the government to reduce costs and to manage public funds more efficiently.

AirAsia group chief executive officer Datuk Seri Tony Fernandes, who was absent at yesterday’s event, had on Tuesday told Financial Times that the new agreement with the government allowed the country’s one million civil servants to choose AirAsia instead of Malaysian Airline System Bhd (MAS).

Bumitra president Syed Mohd Razif Syed Yasin said the government required civil servants to fly with only MAS previously.

“Previously, if the flight was fully booked or MAS was not operating the sector, (then) they had the option to take airlines other than MAS,” he said, adding that the country’s civil servants made about 250,000 work-related domestic and overseas trips every year.

Syed Mohd Razif said the partnership between Bumitra and AirAsia began last January, but was only formalised yesterday as there were several “technical problems” previously that related to invoicing the government.

Mas, AirAsia urged to stop quarrel over cheap fare
Published: 2008/06/20



Both airlines must think of the travellers' interests and the low fare issue could be settled at the ministry level, says the Deputy Minister


MALAYSIAN Airline System Bhd (MAS) and AirAsia Bhd must stop the quarrel in the media over the issue of cheap fares offered by both companies.

Deputy Transport Minister, Datuk Seri Panglima Lajim Ukin, said there were only two airlines in the country and the ministry encouraged competition which was healthy.

“But this must not be at the expense of the nation. Both must respect each other,” he told reporters at the Sultan Abdul Halim airport in Kepala Batas near Alor Star today.

He said both companies must think of interests of the travellers and the low fare issue could be settled at the ministry level.



Lajim said this when asked to comment on the statement by AirAsia chief executive officer, Datuk Tony Fernandes, that MAS’ ’Everyday Low Fares’ campaign and offer of free tickets for domestic travel were not fair. — Bernama

30% discount for govt officers on AirAsia flights


PETALING JAYA: Government officers on official trips will enjoy up to a 30% discount when flying with AirAsia.

AirAsia Berhad chairman Datuk Aziz Bakar said this was in line with recent calls by the Government to reduce costs, promote savings and reflect its dedication in managing public funds efficiently.

He said this after AirAsia signed a memorandum of understanding with Bumiputra Travel and Tours Association (Bumitra) at the Malaysia Tourism Centre. The memorandum was signed by Aziz and Bumitra president Syed Mohd Razif Syed Yasin.

Aziz said that with the agreement the low-cost carrier was able to offer a “one-fare offer” exclusively for government officers.

“It is a smart business and cost-efficient decision. Now, government officers can enjoy low fares and have good connectivity to all places in the country and around the region.

“Flying with a low-cost carrier like AirAsia is a positive move and seals the Government’s dedication in keeping costs at a minimum,” he added.

Aziz said government officers would also enjoy in-flight meals, priority boarding and complimentary checked baggage handling fee.

To be entitled for the special fare, a government officer must first obtain the Waran Perjalanan Udara Awam from their ministry and produce them to the appointed travel agents.

AirAsia shares slump

AIRASIA Bhd, Southeast Asia's biggest discount carrier, tumbled the most in almost a month amid speculation investors are cutting their holdings on concern rising crude oil prices will erode earnings.

Shares of AirAsia fell for a third day, losing 5.2 per cent to 82 sen at the mid-day break on the Kuala Lumpur stock exchange, set for its worst drop since May 27. The stock is also the largest decliner on the benchmark Kuala Lumpur Composite Index today.

Some investors have already reduced their stakes in AirAsia and other airlines. T. Rowe Price Associates Inc said last week it sold 14.5 million shares in the carrier, trimming its holding to 6.2 per cent.

"For now, there's no particular reason to buy into airlines," said Chris Eng, an analyst at OSK Research Sdn Bhd, who has a "neutral" rating on the stock.

AirAsia chief executive officer Datuk Tony Fernandes said last week profitability will be hurt after jet fuel doubled in the past year and a weaker ringgit in the past few months raised its US dollar debt repayments.

Crude oil rebounded from the lowest in a week, climbing 2 per cent to US$134.62 in New York on June 20 and recently traded at US$135.85.

AirAsia has slumped 49 per cent this year, faster than the Composite Index's 18 per cent slide. Malaysian Airline System Bhd, the national carrier, dropped 14 sen, or 4.2 per cent, to RM3.20, headed for the biggest decline since June 4. - Bloomberg

Lebih 200,000 tempat duduk AirAsia X dijual
Oleh Kamarulzaidi Kamis


PERMINTAAN MENGGALAKKAN: Azran bersama model pesawat AirAsia ketika ditemui di Sepang, baru-baru ini.



Syarikat raih RM200j sejak mula operasi tujuh bulan lalu

AIRASIA X, mencatatkan jualan lebih daripada 200,000 tempat duduk dengan meraih pendapatan kira-kira RM200 juta sejak memulakan operasinya tujuh bulan lalu.

Ketua Eksekutifnya, Azran Osman Rani, berkata permintaan bagi perkhidmatan AirAsia X amat memberangsangkan dan peningkatan penumpang bagi laluan yang disediakan syarikat penerbangan jarak jauh tambang murah itu telah membantu meningkatkan aktiviti pelancongan.


http://www.bharian.com.my/Monday/Ekonomi/20080622231510/mainpix
"Perkhidmatan kami telah merangsang pasaran dan mencipta permintaan baru dalam pelbagai sektor berkaitan pelancongan," katanya ketika ditemui di Sepang, Selangor baru-baru ini.

AirAsia X ditubuhkan pada Januari 2007, tetapi memulakan operasinya pada November dengan laluan pertama Kuala Lumpur-Gold Coast, Australia.

Pada Februari tahun ini pula ia melancarkan laluan keduanya ke Hangzhou, China.

Azran menegaskan, AirAsia X juga adalah antara penyumbang utama meningkatnya pergerakan pelancongan antara Australia dan Malaysia.

"AirAsia X memberi kesan dramatik mewujudkan permintaan baru sektor pelancongan Australia-Malaysia.

"Berdasarkan kaji selidik, kira-kira 70 peratus penumpang kami adalah pelawat yang kali pertama melawat Gold Coast," katanya sambil menambah Kementerian Pelancongan juga turut mengumumkan rekod pertambahan pelancong dari Australia ke negara ini.

Baru-baru ini pula, katanya, firma penyelidikan laman web terkemuka global, Hitwise dalam laporan kaji selidiknya menyatakan AirAsia X menduduki tempat ketiga paling popular di kalangan laman web syarikat penerbangan di Australia, mendahului Cathay Pacific dan Malaysian Airlines.

Azran berkata, aktiviti pelancongan antara Malaysia-Australia dijangka bertambah rancak dengan pengenalan laluan AirAsia X baru iaitu ke Perth pada November ini.

"Kami akan menyediakan perkhidmatan ke Perth, Australia bermula 2 November ini, iaitu laluan ketiga selepas Gold Coast dan Hangzhou.

"Tambang bagi laluan Kuala Lumpur-Perth adalah serendah AUD$99 (RM308) dan sudah menerima 12,000 tempahan tempat duduk dalam tempoh hanya sepuluh jam selepas dilancarkan," katanya Sambil menyatakan komitmen AirAsia X untuk terus mengekalkan model perniagaan perkhidmatan penerbangan tambang murahnya, di sebalik kenaikan harga bahan api global.

Beliau berkata, bagi laluan baru itu, AirAsia X akan menggunakan pesawat baru berbadan lebar Airbus A330, sekali gus memberikan lebih keselesaan kepada penumpang.

AirAsia X juga, katanya, menerima dua lagi pesawat Airbus A330 sebelum akhir tahun ini sebagai tambahan sebuah pesawat sedia ada.

AirAsia offers free seats for KL-Makassar route
Published: 2008/06/24




LOW-cost carrier AirAsia Bhd is handing out 15,000 free seats for its newly launched Kuala Lumpur-Makassar route.

Makassar is AirAsia’s 14th Indonesian destination and it is the first international airline to fly the route.

The service is expected to provide AirAsia with greater access to new traffic from Manado, Ambon, Maluku and other neighbouring islands in Indonesia.

“Makassar is the regional hub for other destinations in Indonesia,” AirAsia said in a statement today.



The free seats will be available for the June 25-29 2008 period and the July 25 2008-April 30 2009 period, the airline said.

The offer is available exclusively via online at AirAsia's website and all fares quoted exclude airport taxes, surcharges and fees, and applicable for one-way travel only. — Bernama

AirAsia mulakan penerbangan ke Makasar


AIRASIA Bhd, syarikat penerbangan tambang murah, semalam melancarkan penerbangan terus harian ke Makasar, ibu negeri wilayah Sulawesi Selatan, yang juga bandar raya terbesar di Kepulauan Sulawesi.

Sempena pembukaan laluan itu, AirAsia menawarkan 15,000 tempat duduk percuma kepada penumpangnya menerusi tempoh tempahan daripada 25 hingga 29 Jun ini bagi perjalanan dari 25 Julai ini hingga 30 April 2009.

Dalam kenyataan semalam, AirAsia berkata, Makasar adalah destinasi di Indonesia ke-14 dan ia menjadi syarikat penerbangan antarabangsa pertama yang menawarkan perkhidmatan di laluan terbabit.



Katanya, ketika ini AirAsia adalah syarikat penerbangan utama yang menghubungkan Kuala Lumpur ke hampir semua destinasi di Indonesia, dengan menawarkan 346 penerbangan seminggu.

"Laluan Makasar-Kuala Lumpur dijangka menyediakan akses lebih luas kepada AirAsia ke kawasan baru dari Manado, Ambon, Maluku dan pulau berhampiran kerana Makasar adalah hab di wilayah itu ke destinasi lain di Indonesia.

"Justeru, hubungan udara antara gerbang Sulawesi ke Kuala Lumpur adalah gandingan mantap kerana kedua-dua hab mampu menyediakan trafik ke bandar raya yang dihubungkan menerusi syarikat penerbangan jarak jauh AirAsia, iaitu AirAsia X," tambah kenyataan itu.

Menerusi hubungan udara baru itu, penduduk Makasar kini mempunyai akses kepada alternatif tambang murah ke laluan antarabangsa dan destinasi tambahan di di Indonesia serta Kuala Lumpur.

Justeru, gerbang utama Makasar iaitu Lapangan Terbang Antarabangsa Hasanuddin kini mempunyai sambungan ke laluan antarabangsa yang dimiliki AirAsia menerusi Kuala Lumpur dan destinasi domestik wilayah itu seperti Bajarmasin, Kendari, Palu, Manado, Gorantalo, Ambon serta Jayapura.

Ketua Eksekutif AirAsia, Datuk Seri Tony Fernandes, berkata syarikat itu sentiasa memulakan laluan yang tidak pernah dilalui syarikat penerbangan lain.

"AirAsia berbangga memberi perkhidmatan dalam pasaran yang kurang diteroka dan teruja untuk membawa Makasar lebih dekat ke bahagian lain di rantau ini menerusi Kuala Lumpur," katanya.

Beliau menambah, syarikat akan menggunakan pesawat baru Airbus bagi laluan berkenaan sejajar peranannya dalam meningkatkan pengalaman penerbangan penumpangnya.

AirAsia hits 50 millionth passenger mark
Published: 2008/06/26




BUDGET airline AirAsia Bhd celebrated its 50 millionth passenger mark yesterday after six years of operation.

Leading the celebration was the carrier’s guest star Miss Wendy Ng Tze Wee, a 34-year-old boutique owner from Kuching, who was picked as AirAsia’s 50 millionth guest.

Speaking to reporters in Sepang, Ng said AirAsia’s low fares made it possible for her to travel frequently without hurting her budget. — Bernama

Windfall for budget traveller


AirAsia's 50 millionth guest Wendy Ng at the LCCT yesterday with AirAsia stewardesses.

http://www.nst.com.my/Thursday/National/2277717/insidepix1
SEPANG: Advance booking and queuing for the cheapest flight tickets is the norm for Wendy Ng, but she never thought of being rewarded for it.

Yet, Ng was rewarded with 50 flight tickets when she was picked as AirAsia's 50 millionth guest of the no-frills airline after its sixth year of operation.

The boutique owner from Sarawak was shocked when she was informed over the phone of the windfall.

"At first I thought it was a prank call but after a while I realised it was from AirAsia."

She was chauffeur-driven from her hotel in the city to the Low-Cost Carrier Terminal here yesterday for a grand celebration attended by Tourism Minister Datuk Seri Azalina Othman and AirAsia Bhd group chief executive officer Datuk Seri Tony Fernandes.

Also present were AirAsia Bhd's chairman Datuk Aziz Bakar and its deputy group CEO Datuk Kamarudin Meranun.

Ng, 34, said she flew with AirAsia twice a month to Kuala Lumpur for business purposes. She also chose the low-cost carrier for family holidays.

"As a frequent flyer, I find AirAsia offers good and friendly service, and most importantly, low fares. The website is also user-friendly and makes planning a breeze," she said.

The mother of two plans to take her family to the Gold Coast as she can use her tickets to fly to any AirAsia route in one year. She also received exclusive AirAsia freebies.

Later at the press conference, Azalina said she supported AirAsia's plans to use Subang Airport as its terminal due to its proximity to the city.

She said it would benefit the passengers and tourists and would promote the city better.

On AirAsia's proposal to increase flights to Singapore, Azalina said this was vital as it would encourage more tourist arrivals.