^^ Jelesnye aku dia dapat 50 tiket percuma :wallbash: :wallbash:

Budget airline Airasia launches variety in-flight menu


AIRASIA, showcased a vast selection of hot meals, available onboard recently.

The “In-Flight Food Experience” event was held at the Borneo Baruk Club in Kuala Lumpur, graced by the presence of local celebrities in the likes of Afdlin Shauki, Camelia, Norman KRU, Noryn Aziz and celebrated food expert chef Ismail unveiling wider choices of hot meals made available on AirAsia flights.

http://thestar.com.my/archives/2008/6/28/central/m_47airasia.jpg
Hot meals: Artists like Norman of KRU (second from left) and Afdlin Shauki (squatting) as well as chef Ismail were on board to be a part of AirAsia’s launch of its in-flight food experience.

To add to the excitement, AirAsia also showcased new merchandise and memorabilia such as caps, T-shirts, keychains and other exclusive items.

The regional menu offers a wide range of Malaysian and Asian delicacies. Served hot and fresh, the menu provide choices that are guaranteed to satisfy the guests.

Guests can choose from a selection of hot sellers, like Pak Nasser’s nasi lemak and popular 1901 hotdogs.

Sri Melur Jaya’s nasi briyani with chicken curry, roti canai and roti jala are also available, all prepared fresh from the best ingredients available.

For dessert, guests will be spoilt for choice by the selection of local fruits, handpicked to ensure freshness and quality.

The new dishes soon to be available are chicken rice, and Indonesian fried rice with satay.

Its chairman, Datuk Aziz Bakar, said: “There is nothing better than a good selection of hot meals onboard.

“The best thing is, you can have it at 30,000ft.

“We have a new Airbus fleet, supple leather seats, spacious cabins and the new on time guarantee which makes perfect air travel a dream come true.

“Among the delicacies available on our Thai flights are roasted chicken in French bread, crabstick and ebiko sandwich, chicken fried rice, rice with chicken krapro with healthy drinks; lemon, lemongrass and ginger juices.

Guests onboard Indonesia flights can have a choice of nasi kuning, chicken, beef and tuna sandwiches. Passengers may pre-book their meals online at www.airasia.com when buying their tickets.

AirAsia X to rake in RM1b revenue next year
by Doreen Leong
Email us your feedback at fd@bizedge.com


KUALA LUMPUR: Long haul low cost carrier, AirAsia X is expected to post RM1 billion revenue next year as it expands its network after taking delivery of two new planes this year.

“We are already doing about RM200 million sales and by next year, with three planes we are going to be a billion ringgit company,” its chief executive officer Azran Osman-Rani told The Edge Financial Daily.

He added that this year’s revenue target would be US$100 million (RM330 million) and it aimed to be profitable by 2010. Only then will AirAsia X consider listing on the local stock exchange.

However, Azran said it was more important to be cash positive than to merely look at profits. “In April and May, we were already RM25 million cash positive. For the five-month period, net cash was about RM15 million. What is more important is that we are adding to our cash reserves of about RM10 million to RM15 million a month,” he added.

To facilitate its expansion plans, AirAsia X has recently firmed up orders of 25 Airbus 330 planes to be delivered from October 2008. It currently operates a single aircraft on an operating lease.

“The new planes will start coming in October and December. We will immediately get 24% reduction in terms of cost per seat. Our total cost remains the same but our unit cost will be lower as we will get more seats on our new planes,” Azran said.

He added that currently, AirAsia X’s cost per available seat per kilometre (ASK) was four US cents, which is lower than other low cost carriers (LCCs).

Despite views that long haul low cost carriers would find difficulties in surviving in a high fuel cost environment, Azran believed that AirAsia X would succeed as its strategy was to ride on creating volume.

“Airlines are now increasing fares and cutting capacity. But there is another way to cope with high fuel cost. For instance, Ryanair is also expanding. The strategy here is volume. When other airlines retreat from a certain route, that’s where we will go,” he said.

Azran said AirAsia X would start flying to Perth, Australia, in November this year and start adding frequencies in China and Australia once it takes delivery of its planes. Next year, it would go to Stansted, Essex (UK), India and either Japan or Korea.

While demand for the travel industry may slow down due to economic uncertainties, Azran said its products would become more competitive as other airlines start raising prices.

Also, critics said in general, LCCs may find it tough to reduce costs further as its fuel costs could account for as high as 70% of its total costs.

However, Azran said even though fuel accounts for half of its total cost, in absolute term, it was still lower than that of full service carriers (FSCs).

For example, AirAsia X’s total cost per ASK is four US cents, of which about two US cents per ASK is fuel cost. But for FSCs such as Malaysia Airlines, its total cost per ASK is 17.5 sen (5.4 US cents), of which about 40% or seven sen (2.16 US cents) is fuel cost.

Azran said when fuel price increased, AirAsia X had advantage over its FSC peers due to its new planes, which were more fuel-efficient and had more seats.

“We are flying new planes. In comparison, for airlines flying to London using old Boeing 747-400s planes, they are 12% less fuel-efficient and 18% more costly to maintain. Every dollar hike in fuel, the planes will see higher fuel burn rate.

“We also have more seats than 747s, we will have 390 seats on the A340 while MAS has 349 seats. In terms of incremental fuel cost per seat, they will suffer more because they are spread over fewer seats,” he added.

Azran admitted that AirAsia X would fail if it operated on a standalone basis, like Oasis Hong Kong Airlines. He said AirAsia X depended on the strong branding of its parent company AirAsia and support of its shareholders to pull through.

“For instance, 70% of our Gold Coast-KL passengers don’t make KL their final destination. They will get on AirAsia flights to go to Bangkok and other destinations. It is the network that we provide. That connectivity is important,” he said.

Meanwhile, AirAsia share price, which fell to its low of 79 sen last Tuesday, recovered to close at 86.5 sen last Friday after huge off-market transactions. Data compiled on Bloomberg showed some 162.9 million shares or 6.86% changed hands in block trades between 79 sen and 88 sen on June 26.

No Intention To Ask AirAsia To Operate From Subang


KUALA LUMPUR, July 1 (Bernama) -- The government has no intention to ask low-cost airline, AirAsia Bhd, to operate from Sultan Abdul Aziz Shah Airport, Subang.

Deputy Transport Minister, Datuk Seri Panglima Lajim Ukin, a decision has been made to upgrade the Low-Cost Carrier Terminal to cater to the needs of the airline.

"About 124 million has been allocated to upgrade LCCT to make it comfortable for those using the terminal," he said at a question-and-answer session at the Dewan Rakyat here Tuesday.

Lajim said this in reply to a supplementary question from Razali Ibrahim (BN-Muar) seeking clarification on the proposal to shift the LCCT operations to Subang.

"The government or my ministry has no plan to ask AirAsia to shift its operations to Subang because we have decided to upgrade the LCCT in KL International Airport to cater to the needs of low-cost airline," he said.

Lajim said work to upgrade LCCT started in April last year and was expected to be completed by year-end.

Meanwhile, he said, the price war between Malaysia Airlines and AirAsia was healthy because it would benefit the travellers.

"The travellers now has more choices to pick a travel plan which will suit their needs," he said this in reply to a question from Fong Kui Lun (DAP-Bukit Bintang).

-- BERNAMA

AirAsia will stay in Sepang



THERE are no plans to move AirAsia's flights from the Low-Cost Carrier Terminal in Sepang to Subang airport, the Dewan Rakyat was told yesterday.

Deputy Transport Minister Datuk Seri Lajim Ukin said the government had spent RM124 million to upgrade the LCCT.

"This will cater to the airline's needs and improve passengers' comfort," he said in reply to questions from Fong Kui Lun (DAP-Bukit Bintang).

Among the facilities that are being upgraded are the check-in counters, outbound baggage system, international departure hall, parking area and expansion of the terminal building.

Once the upgrading works are completed by year-end, the LCCT could handle up to 15 million passengers a year compared with its present 10 million.

He said the competition between Malaysia Airlines and AirAsia benefited travellers.

"Passengers are enjoying the best deals," he said.

Lajim said MAS' "Everyday Low Fare" campaign was one of its strategies to increase its competitiveness.

The campaign is aimed at encouraging domestic and regional tourism, adding 500,000 new passengers and increasing online transactions from four per cent to 60 by 2010.

Thai AirAsia posts H1 loss: Paper
Published: 2008/07/02


THAI AirAsia Co, partly owned by AirAsia Bhd, had a loss in the first half of this year as rising oil costs outweighed higher passenger traffic, Krungthep Turakij said, citing chief executive officer Tassapon Bijleveld.

Passenger numbers in the six months to June climbed to 2.1 million from 1.7 million a year earlier, the newspaper said.

Tassapon didn't elaborate on the loss. - Bloomberg

AirAsia to fly daily to Krabi, Palembang, Banda Aceh
Published: 2008/07/08


LOW-cost airline, AirAsia Bhd, will begin daily flights from Kuala Lumpur to Krabi in Thailand and to the Indonesian cities of Palembang and Banda Aceh, from today.

Tickets are from as low as RM3.

AirAsia previously offered only four weekly flights to Krabi and Palembang and thrice to Banda Aceh.

“Due to strong demand, we are now offering daily flights to the three destinations starting tomorrow (Tuesday),” AirAsia said in a statement yesterday.



AirAsia’s regional head of commercial Kathleen Tan said the carrier is the only one offering direct flights to the three destinations.

“Travellers flying from these destinations can also use Kuala Lumpur as the gateway to South-East Asia and fly to over 102 routes serviced by AirAsia,” she said.

The booking period for this special promotion begins today till July 13 and for the travel period between August 7, 2008 and April 30, 2009. — Bernama

AirAsia mounts more flights to Thailand, Indonesia

Email us your feedback at fd@bizedge.com


KUALA LUMPUR: AirAsia Bhd is increasing flight frequencies to Krabi in Thailand and Palembang and Banda Aceh in Indonesia to meet higher demand from passengers.

In a statement yesterday, it said AirAsia was now offering daily flights from here to those destinations in Thailand and Indonesia starting from July 8. Previously, the low-cost carrier offered only four weekly flights to Krabi and Palembang and three weekly flights to Banda Aceh from Kuala Lumpur.

AirAsia regional head of commercial, Kathleen Tan said: “Currently, we are the only airline to offer daily direct flights from Kuala Lumpur to Krabi, Palembang and Banda Aceh.

International Flights coming soon...
٭ Kuala Lumpur - Makassar (New!)
٭ Kuala Lumpur - Guangzhou (2X Daily)
٭ Kuala Lumpur - Trichy (Coming soon)
٭ Kuala Lumpur - Guilin (Coming soon)

trichy & Guilin??? ekkk......where is it???

AirAsia can apply for routes cut by MAS
From Sharon Tan in Parliament
Email us your feedback at fd@bizedge.com


KUALA LUMPUR: Budget carrier AirAsia Bhd is welcome to apply for unprofitable international routes that have been cut by Malaysian Airline System Bhd (MAS), Transport Minister Datuk Ong Tee Keat said in Parliament this morning.

The final decision on the matter, however, would depend on the outcome of more in-depth research and discussion by all parties, including the two airlines. Discussions will first be held before any decision is made, the minister said.

International routes deemed unprofitable by MAS include the Kuala Lumpur-Manchester, KL-Vienna, KL-Nagoya, KL-Xi'an, KL-Kolkata, KL-Padang, KL-Ahmedabad as well as Kuching-Perth, Kuching-Sydney, Langkawi-London and Penang-London flights. MAS had announced plans to terminate these flights as far as two years back when it began rationalising its operations by shedding unfeasible routes, excess fleet and staff to stem losses.

The minister is already meeting representatives from both MAS and AirAsia to ensure that the on-going price war between the two companies does not hurt the local aviation industry. Ong reportedly said he would personally look into claims by AirAsia group chief executive Datuk Tony Fernandes that MAS was using subsidies for international flights for its domestic low-fare promotions.

AirAsia offers both local and international budget flights, while another Fernandes-owned entity, AirAsia X that's affiliated with Richard Branson's Virgin Group, operates what the airline industry calls "long haul" budget flights. AirAsia X's first flight was to Gold Coast, Australia in September last year.

trichy & Guilin??? ekkk......where is it???



Trichy or Tiruchirappalli is the fourth largest city of the Indian state of Tamil Nadu. Trichy encompasses Srirangam, a Vaishnavite temple and the biggest functioning Hindu temple in the world. It is a popular historical destination in Tamil Nadu. Malaysia Airlines and AirAsia plan to connect the city by next year.
http://img157.imageshack.us/img157/9212/trichy05rm6.jpg http://img157.imageshack.us/img157/9461/trichy083dy7.jpg http://img157.imageshack.us/img157/7349/trichyrockfortos2.jpg


Guilin, a city in Guangxi Province Southern China, is world renowned for its unique natural scenery. Guilin is hailed by many as one of the most beautiful place in China and is one of the must-see destinations for most foreign tourists. Its natural scenery is often depicted in Chinese traditional paintings. Guilin's stone mountains along the Lijiang River Scenic Zone is an UNESCO World Heritage Site.
http://img257.imageshack.us/img257/1677/guilinsd3.jpg http://img157.imageshack.us/img157/9730/guilin1rxq1.gif http://img157.imageshack.us/img157/5567/490320china20guilin20thds7.jpg


So prepare your holiday to these new destinations soon!

AirAsia to take only commercially viable routes
by Doreen Leong
Email us your feedback at fd@bizedge.com


KUALA LUMPUR: Neither AirAsia Bhd nor its associate AirAsia X is jumping in at the chance of taking over all the unprofitable international routes that Malaysian Airline System Bhd (MAS) has given up in the last two years because some of those routes do not make commercial sense.

"We apply for routes that make sense to us, where we believe we can create new markets and offer consumers choice. It does not make sense to have our strategy being dictated by another airline's failures," AirAsia X chief executive officer Azran Osman-Rani told The Edge Financial Daily .

AirAsia X is the long haul budget carrier of AirAsia. He added that it also did not make sense to stop AirAsia X from flying on overlapping routes when foreign airlines were allowed to compete directly with MAS.

Azran was responding to comments by Transport Minister Datuk Ong Tee Keat that AirAsia was "welcomed" to apply for those routes cut by MAS.

Ong told the Dewan Rakyat in a parliament session yesterday that it was up to AirAsia to apply to take over the routes before the requests could be considered.

Those international routes deemed unprofitable by MAS include the Kuala Lumpur-Manchester, KL-Vienna, KL-Nagoya, KL-Xi'an, KL-Kolkata, KL-Padang, KL-Ahmedabad as well as Kuching-Perth, Kuching-Sydney, Langkawi-London and Penang-London flights.

Azran said except for the KL-London route, other European routes were not commercially viable, as its planes to be used for ultra-long haul destinations would not have enough seats to make those routes profitable.

It plans to use an Airbus 340 plane, which would have 390 seats for the KL-London route, which is expected to start commercial service early next year.

"What we want is trunk routes such as Sydney, Melbourne, New Delhi, Mumbai, Tokyo, Shanghai and Beijing, not those non-trunk routes that MAS has abandoned," Azran added.

He said it was vital to enable AirAsia to connect passengers on those trunk routes in order not to lose out to its low cost competitors such as Jetstar and Tiger Airways that were aggressively expanding their networks.

"Competition is biting at our heels. The government should make strategic decisions based on what is good for the country, not reactive to what MAS can or cannot do," Azran added.

Meanwhile, AirAsia chief executive officer Datuk Seri Tony Fernandes said the access to routes should be driven by the principle of safeguarding consumer interest to ensure that there were choices available and competition to keep airfares in check.

"Limiting access to any airline would deprive air travellers of choice and reasonable fares. The issue of non-competition between AirAsia and MAS should not arise because there is overwhelming concrete proof that all routes where our airlines compete, the overall market has grown by leaps and bounds

"MAS has also benefited as it is now making money in the domestic sector, whereby previously it was losing despite being the sole operator," he added.

Fernandes said it would also be a "travesty" to hold back AirAsia X from certain routes, while at the same time, Malaysia Airports was providing incentives to foreign carriers to fly routes that competed head-to-head with MAS.

"Moreover, history shows that these foreign carriers such as British Airways, Air France and now Jetstar have no loyalty to KLIA - retreating at the first sign of trouble," he added.

"Moreover, history shows that these foreign carriers such as British Airways, Air France and now Jetstar have no loyalty to KLIA - retreating at the first sign of trouble," he added.
airlines don't have loyalty. They fly to wherever they can make money and cut lost making routes. What kind of airline would 'remain loyal to KLIA' and support a route that is loosing hundreds of thousands of dollars a flight?

Pejabat jualan AirAsia di Ho Chi Minh



AIRASIA Bhd (AirAsia), semalam, melancarkan pembukaan pejabat jualan barunya di bandar Ho Chi Minh bagi memenuhi matlamatnya agar lebih dekat dengan pelanggan.

Pejabat jualan baru AirAsia ini berperanan besar dalam mengukuhkan lagi pertumbuhan ekonominya di rantau Asia Tenggara.

Dilengkapi dengan suasana ceria dan mesra, pejabat jualan baru itu ditubuhkan sempena kejayaan jualan di rantau berkenaan.

Selain itu, pejabat jualan baru itu juga menawarkan perkhidmatan secara dalam talian atau tempahan melalui Internet.

Row over RM100mil owed by AirAsia


AN argument broke out between Deputy Transport Minister Datuk Seri Lajim Ukin and Wee Choo Keong (PKR – Wangsa Maju) over the more than RM100mil owed by AirAsia to Malaysia Airport Holdings Bhd (MAHB) for use of its airports in the country.

Wee questioned why MAHB did not initiate legal action against AirAsia to recover the money owed since 2002.

“If nothing is done, it would seem that a private company has been given subsidy by a GLC (government-linked company),” he said.

Lajim replied that only the Finance Ministry, and not his ministry, could take legal action in such matters.

“We will work together to recover the money,” he added.

However, Wee said that he had been informed that the matter was not within the purview of the Finance Ministry.

“I was told it was a private transaction between the two parties.

“If this is not settled, public confidence will be affected,” he added.

Lajim insisted that the query should be handed to the Finance Ministry since MAHB is a GLC.

He said the rates owed by AirAsia was different than the rates stated by the MAHB.

“The AirAsia rates also included discounts which it had requested, but not agreed to by MAHB,” he added.

It was reported that AirAsia still owed MAHB RM110.36mil since 2002 until March 31.

Deputy Speaker Datuk Wan Junaidi Tuanku Jaafar then advised Wee to discuss the matter with both the Transport and Finance ministries.

Wee later called on the Tourism Ministry to have a transparent investigation into national tourism company Pempena Sdn Bhd in a series of scams involving millions of ringgit.

Wee said minister Datuk Seri Azalina Othman Said’s reply in the Dewan Rakyat on Wednesday was unsatisfactory.

“She received the complaint on March 24 and four months have now lapsed.

“If they are still investigating, then the investigation is at snail’s pace,” he said.

In her reply, Azalina said she had ordered an internal audit to investigate claims that implicated two senior officials of Pempena in a series of scams.

AirAsia raih Anugerah Strategi Penerbangan
Oleh Zuraidah Mohamed
zmohamed@bharian.com.my

AIRASIA Bhd mencatat satu lagi pencapaian dalam sejarah penerbangan Malaysia apabila meraih Anugerah Strategi Penerbangan dalam kategori Kewangan yang tahun lalu dimenangi Cathay Pacific Airways.

Penyampaian anugerah itu diadakan di London, baru-baru ini yang sekali gus membuktikan kemampuan syarikat penerbangan tambang murah itu dalam menguruskan kewangannya melalui langkah berkesan dan inovasi berterusan secara bijak.

Anugerah Strategi Penerbangan anjuran majalah antarabangsa, Airline Business itu adalah acara tahunan bagi mengiktiraf pencapaian entiti penerbangan dalam lapan kategori iaitu Kepemimpinan Eksekutif, Kepemimpinan Tambang Murah, Kepimpinan Serantau, Kewangan, Pemasaran, Operasi, Teknologi dan Anugerah Airline Business.

Ketua Serantau Kewangan AirAsia, Rozman Omar, berkata anugerah berkenaan adalah penghargaan terbaik diberikan khususnya kepada AirAsia.

"Pesawat A320 yang digunakan memberikan penjimatan minyak yang lebih baik bagi setiap penerbangan dan kecekapan operasinya membabitkan perbelanjaan penyelenggaraan yang rendah," katanya dalam kenyataan dikeluarkan di Kuala Lumpur, semalam.

EPF ups AirAsia stake to 6.45%
THE STAR


KUALA LUMPUR: AirAsia Bhd share price, which had fallen sharply in recent weeks, saw the Employees Provident Fund board acquiring 3.13 million shares on July 9.

A filing with Bursa Malaysia showed that after the acquisition, the EPF board’s total shareholding increased to 153.35 million shares or 6.46%.

The low-cost carrier’s share price closed at 84.5 sen on July 9.

AirAsia’s share price was at a 52-week low of 76.5 sen on June 25 while its 52-week high was RM2.14 on Oct 26 last year.

At the current price of 87 sen, it is trading at a price to earning of 4.10 times.

AirAsia wins Airline Strategy Award: World Best In Finance Category


SEPANG, 14 July 2008 – AirAsia, the leading and largest low cost carrier in Asia reached another great milestone in Malaysia’s aviation history by clinching the prestigious Airline Strategy Award in the Finance Category, previously won by Cathay Pacific Airways in 2007. The ceremony was held at The Honourable Society of Lincoln’s Inn in London recently, with the award bolstering AirAsia’s competency in managing its finances through brilliant cost effective measures and incessant innovations.

The Airline Strategy Awards, organized by Airline Business, is an annual occasion of recognizing the achievements of aviation entities in 8 categories: Executive Leadership, Low Cost Leadership, Regional Leadership, Finance, Marketing, Operations, Technology and The Airline Business Award. It is a significant acknowledgment especially to AirAsia, as only true achievers in the industry will be bestowed with such honour. Potential winners are carefully scrutinized by distinguished judges who are experts in their respective fields, justifying AirAsia’s reputation as one of the best low cost carriers in the region. Sitting on the judging panel were Mark Pilling (Editor, Airline Business), Sir Rod Eddington (transport policy expert), Jeffrey Katz (member of the Board of Directors, Northwest Airlines), Professor Rigas Doganis (author, The Airline Business), Peter Harbison (Managing Director, CAPA), Dr Julius Maldutis (transportation economist), Chris Tarry (aviation analyst), Micheal Bell (global aviation specialist) and Thierry Lindenau (global aviation specialist).

On hand to receive the Finance category award, AirAsia Regional Head of Finance, Rozman Omar said, “Our success comes from good planning of resources. The lowest cost structure of AirAsia enables it to be and remain a highly profitable airline. To achieve this, we utilize the newest fleet of aircraft which provides us with better fuel management. The A320’s that we use gives better unit fuel consumption per flight and its operational efficiency involves lower maintenance expenditures, which is cost savings for us. We also have a competitive maintenance program for our fleets, which knocks the costs down even further. We see this as a benefit to our guests, as all the savings are passed down as low fares”

“Similar with other airlines, fuel is undoubtedly the single largest variable cost. However, instead of dropping routes and reducing frequencies to cut costs, we create routes or add more frequencies. This may be illogical to many, but the higher frequency enables us to substantially reduce the unit overheads cost. Therefore, overall operating costs will remain low to enable us to offer the lowest fares throughout our vast route network. Besides, there will always be demand for air travel whatever the fuel price is. Furthermore, we believe our continuous low fare offerings with our aggressive marketing campaigns and innovative efforts in introducing new products and services will capture the demand for air travel further. Recently, we generated more than RM2 million in revenue via our marketing efforts through the ‘A Big Sale’ campaign and established the fact that we are The Real 5 Star airline by offering high quality hot meals and exclusive merchandises onboard our flights. We expect to enjoy high profit margins in years to come,” Rozman concluded.

Six and a half years of flying, continuing growth and profits in every quarter since day one resulted in AirAsia coming out tops in the Airline Strategy Awards’ finance category this year for “delivering outstanding financial results and industry-leading profit margins while bringing low-fare airline service to Southeast Asia”.

Editor of Airline Business, Mark Pilling said, “The 2008 Airline Strategy Awards have once again recognised the best this industry has to offer in management and leadership talent. Now in their seventh year, the Awards have quickly become a highly sought-after and respected badge of honour among the industry elite. When it comes to recognising boardroom excellence, the Airline Strategy Awards are the benchmark.”

http://www.strategyawards2008.com/images/2008_pdfs/13Finance.pdf

by Steve Flint

http://www.pbase.com/steveflint/image/96294211.jpg

http://www.pbase.com/steveflint/image/96294163.jpg

WHAT'S DIFFERENT?
by Steve Flint

http://www.pbase.com/steveflint/image/96294436.jpg

http://www.pbase.com/steveflint/image/96294445.jpg

The difference is one is Airbus which is part of latest fleet and another is Boeing.

AirAsia adds new route to its Indonesian network


SEPANG: AirAsia has added a new route to its Indonesian network.

The Pekan Baru-Singapore route, managed by AirAsia in Indonesia, will be the first to be offered by a local-based airline in the archipelago. Currently, the airline serves two international destinations from Indonesia, which are Malaysia and Thailand, as well as eight domestic routes from Jakarta.

AirAsia group chief executive officer Datuk Seri Tony Fernandes said the latest route was a sign of the airline's confidence in capturing the Asean market.

“This new route, supported with the already established Pekan Baru-Kuala Lumpur route, provides enhanced connectivity for Indonesians to the rest of the region.

“It is a pleasure for us to provide accessibility and low fares to the people of Pekan Baru and Singapore. We expect our low fares and innovative services to continue to attract guests to fly with us,” said Fernandes in a statement on Friday.

AirAsia opens ticket sale for KL-Manado route
Published: 2008/07/22




AIRASIA Bhd will open for sale today tickets to the new route to Manado, Indonesia, from Kuala Lumpur where it will start its inaugural flight with three direct weekly flights on September 12.

In a statement yesterday, AirAsia said Manado was its 15th destination and it was the first international airline to service the route from KL.

Manado, the capital of North Sulawesi, is the main gateway to the Indonesian archipelago comprising Minahasa, Bolaang, Mongondow and the island of Dangihe Talaud.

Group chief executive officer Datuk Seri Tony Fernandes said AirAsia’s guests in North Sulawesi could take advantage of its vast network to over 102 routes.



“With this new air connectivity, the people of Manado will have a better access to more low-cost and other international routes where AirAsia and affiliate, AirAsia X, flies to and from KL,” he said.

The promotional fare starts from as low as RM49 for the booking period from July 22-27, 2008 for the travel period from September 12, 2008 to April 30, 2009. — Bernama

Booking started for Guilin flights , from RM 88 one-way. Flight starts on Sept 3

AirAsia to fly to Guilin from Sept 3
Published: 2008/07/23




AirAsia will become the first and only airline from Malaysia to offer direct service between Kuala Lumpur and Guilin in north-east Guangxi Region of China


AIRASIA Bhd today announced its seventh destination to China — Guilin — in north-east Guangxi Region.

Guilin is one of China's most popular tourist spots, having welcomed over 13 million foreign visitors last year, the budget airline said in a statement.

It is set to start the inaugural flight on September 3, with four direct weekly flights between Kuala Lumpur's Low Cost Carrier Terminal and Liangjiang Airport in Guilin.

AirAsia will become the first and only airline from Malaysia to offer direct service between the two cities, it said.



To mark Kuala Lumpur-Guilin route announcement, AirAsia is offering a special launch fare from as low as RM88 (200 yuan) for booking period between today and Sunday.

Travel period for the promotion begins from September 3 to April 30 next year.

On-line bookings can be made via www.airasia.com to enjoy the special fare. — Bernama

AirAsia jumps most in 3 years as carriers advance
Published: 2008/07/23




Airline stocks gain today after the price of oil fell to a six-week low on forecasts that Hurricane Dolly would miss oilfields in the Gulf of Mexico


AIRASIA Bhd, Southeast Asia’s largest low-cost carrier, jumped the most in more than three years in Kuala Lumpur trading, leading airlines higher, after the price of oil fell to a six-week low.

The carrier rose 8.7 per cent to RM1 at 1.30 pm. Qantas Airways Ltd gained 5.6 per cent to A$3.58 in Sydney. China Southern Airlines Co, Asia’s biggest carrier by passenger numbers, surged 10 per cent to HK$3.43 in Hong Kong.

Oil fell to US$127.95 a barrel yesterday in New York, down almost US$20 from July 14’s record close, on forecasts that Hurricane Dolly would miss oilfields in the Gulf of Mexico. Lower oil prices help airlines by cutting the cost of jet fuel, most Asian carriers’ biggest expense.

“The drop in crude oil prices is definitely driving gains in airlines today,” said Um Kyung A, a Seoul-based analyst at Shinyoung Securities Co. “Still, there’s long way to go for airlines to turn profitable.”



Korean Air Lines Co, South Korea’s largest carrier, gained 5.4 per cent to 47,900 won in Seoul. Air New Zealand Ltd rose 7 per cent to NZ$1.23 in Wellington. Malaysian Airline System Bhd, the country’s national carrier, jumped 4.8 per cent to RM3.50 in Kuala Lumpur.

In Hong Kong, Cathay Pacific Airways Ltd, the city’s biggest carrier, gained 5.2 per cent to HK$15.48. Air China Ltd, the world’s biggest airline by market value, climbed 5.4 per cent HK$4.49. Singapore Airlines Ltd rose 3.4 per cent to S$15.78 in Singapore.

Airlines Plunge

AirAsia has plummeted 38 per cent this year amid concerns that a near doubling of jet-fuel prices and a weaker ringgit will crimp earnings. The Bloomberg Asia Pacific Airlines Index, which tracks 17 airline stocks, has plunged 39 per cent.

Surging fuel prices have forced airlines across Asia to raise surcharges, cut services and ground planes in a bid to defend profits. Qantas said last week it would axe 1,500 jobs worldwide, cancel plans to hire new staff and ground as many as 22 aircraft. Korean Air expects to post a second-quarter operating loss, president Lee Jong Hee said on July 17.

The price of jet fuel rose 0.5 per cent to US$165.20 a barrel yesterday in Singapore. That’s 9.2 per cent lower than July 3’s record close of US$181.85. - Bloomberg

When many airlines are struggling to survive, AirAsia is expanding like mad...

New Destinations from KL:
Kuala Lumpur - Makassar, Sulawesi (25 July 08)
Kuala Lumpur - Guilin, Guangxi (3 Sept 08)
Kuala Lumpur - Manado, Sulawesi (12 Sept 08)
Kuala Lumpur - Tiruchirapalli, Tamil Nadu (Oct 08)
Kuala Lumpur - Perth, Western Australia (2 Nov 08 via AirAsiaX)
Kuala Lumpur - Balikpapan, Kalimantan (mid-Nov 08)
Kuala Lumpur - Batam, Riau (early 09)
Kuala Lumpur - Tianjin, 3rd largest city in China (early 09 via AirAsiaX)
Kuala Lumpur - Stansted, London (March 09 via AirAsiaX)
Kuala Lumpur - Nagoya, 4th largest city in Japan (end 09 via AirAsiaX)


Added Frequency:
Kuala Lumpur - Phuket
Kuala Lumpur - Guangzhou

it's about time that airasia will resume KL-Nagoya route...

When many airlines are struggling to survive, AirAsia is expanding like mad...

New Destinations from KL:
Kuala Lumpur - Nagoya, 4th largest city in Japan (end 09 via AirAsiaX)



sweeeeeeeeetttttttttttt......................

it's 3rd actually!

Guilin is AirAsia’s seventh China stop


KUALA LUMPUR: AirAsia has announced its seventh destination in China – Guilin in the north-east Guangxi Province.

Guilin is one of China's most popular tourist spots, having welcomed over 13 million foreign visitors last year, the budget airline said in a statement.

The inaugural flight is set for Sept 3.

The airline will operate four weekly flights between the Low-Cost Carrier Terminal in Sepang and Liangjiang Airport in Guilin.

AirAsia will be the first and only airline from Malaysia to offer a direct service between the two cities, it said.

To mark the Kuala Lumpur-Guilin route, AirAsia is offering a special launch fare starting at RM88 (200 yuan) for the booking period until Sunday.

Travel period for the promotion is from Sept 3 to April 30.

Online bookings for the special fare can be made via www.airasia.com. – Bernama

AirAsia-MAHB dispute centres on terminal fees
By Lokman Mansor Published: 2008/07/28




AirAsia is unhappy that operating rates at both terminals are the same even though the Low-Cost Carrier Terminal has minimal facilities compared with KLIA


AIRASIA Bhd is disputing the amount it owes Malaysia Airports Holdings Bhd (MAHB) because it believes charges should be lower at the Low-Cost Carrier Terminal (LCCT) where infrastructure and facilities are inferior to the KL International Airport (KLIA) main terminal, sources said.

The low-cost carrier (LCC) has been in the news in recent weeks over what it owes MAHB.

The actual amount, accumulated since 2002, varies from the RM60 million mentioned in some reports to up to RM110 million as reported in Parliament.

The matter has been brought to the Finance Ministry to resolve, but there has been no development to date.



Sources said AirAsia's main contention is that while it has been operating from the LCCT, which has minimal facilities compared with KLIA, operating rates at both terminals are the same.

AirAsia does not own the LCCT, but is merely a tenant, sharing it with three other airlines.

The LCCT is seven times smaller than KLIA; has no walkalators or aerobridges; limited immigration counters, X-ray machines, and food and shopping outlets; and a manual baggage-handling service.

"Facilities at the LCCT are basic and minimal in comparison with the KLIA main terminal, so it is only fair that charges are reduced.

"Why should the airline bear the burden of passenger complaints, negative public perceptions, when it has to pay the same charges as those operating at the KLIA main terminal building?" one source questioned.

MAHB officials have previously clarified that the rates are determined by the government and not the airport operator.

The International Air Transport Association (IATA) and main carriers have in the past contended that differential rates present an unfair advantage to LCCs, but it is believed that many international airports still practise it.

An international airport consultant said that there are at least 20-30 major cities in the world, including London, Chicago, Los Angeles, and Bangkok, that have succeeded with separate terminals for LCCs and full-service airlines.

"The low-cost business model is all about lowering costs, and keeping them low, in all possible areas of the travelling experience so that customers can travel at the lowest possible price.

"The reason for building a simple, inexpensive terminal is to lower costs. If an airline operates from a cheaper facility, then their operating costs are lower and they can charge less for their tickets," the consultant said.

He said that in such a scenario, the airline benefits with more sales, profit and growth, while the airport enjoys more passenger movement and revenue. These will in turn contribute towards the national economy.

AirAsia X likely to drop plans to fly to Japan
Published: 2008/07/28




LONG-HAUL budget airline AirAsia X is likely to drop plans to fly to Japan next year, despite several airports having welcomed it, due to tough visa rules, a top official said.

"Give me a chance now and I'd rather fly to South Korea, the Middle East and India. Other countries are competing for Malaysian tourists," AirAsia X chief executive officer Azran Osman-Rani, said in a weekend interview.

"To get a Japanese visa, a Malaysian has to visit the embassy in Kuala Lumpur twice and even then the person is not sure a visa will be issued," he said.

The Australian-based Centre for Asia Pacific Aviation (CAPA) said recently that Japan's highly restrictive visa system virtually rules out AirAsia X from starting a service in 2009 as it had planned.



CAPA said Japan would have to remove the visa restrictions - which are highly inconvenient to travellers with non-refundable low-cost tickets - to make it attractive to regional budget carriers.

Azran said that when he visited airports in Japan this month, the operators were eager to accept AirAsia X flights, to compensate as full-service carriers like Qantas cut back their frequencies.

"I am looking at all airports except Narita due to congestion and high costs," he said, adding AirAsia X was keen to fly to Japan as a wealthy country with a huge population.

If Japanese authorities were to come up with a good proposal, "I will change my plan," he said.

An affiliate of regional low-cost carrier AirAsia and Virgin Group, AirAsia X was launched in January 2007. AirAsia and AirAsia X share common shareholders, including AirAsia founder and CEO Datuk Seri Tony Fernandes.

Sir Richard Branson's Virgin Group has taken a 20 per cent stake in the airline and the British billionaire has vowed to ensure that the project turns a profit.

Azran said the carrier would take delivery of two brand new A330-300 by year end. It has signed a deal with Airbus to buy 25 A330-300s.

AirAsia X now has one A330-300. It currently mounts a four-weekly return flight to Australia's Gold Coast which began in November last year and also flies to China's Hangzhou.

It plans to offer six return flights per week between Perth and Kuala Lumpur starting November 2.

But Azran declined to confirm if AirAsia would be able to carry out its plan to fly to Britain - either London or Manchester - by year-end.

"I am still looking at it," he said. - AFP

Visa rule could scupper AirAsia X flights to Japan


KUALA LUMPUR: Long-haul budget airline AirAsia X is likely to drop plans to fly to Japan next year due to tough visa rules, said a top official with the airline.

“Give me a chance now and I’d rather fly to South Korea, the Middle East and India ... other countries are competing for Malaysian tourists,” AirAsia X chief executive officer Azran Osman-Rani told AFP in an interview.

“To get a Japanese visa, a Malaysian has to visit the embassy in Kuala Lumpur twice and even then the person is not sure a visa will be issued,” he said.

The Australian-based Centre for Asia Pacific Aviation (Capa) said recently that Japan’s highly restrictive visa system virtually rules out AirAsia X from starting a service in 2009 as it had planned.

Capa said Japan would have to remove the visa restrictions to make it attractive to regional budget carriers.

Azran said that when he visited airports in Japan earlier this month, the operators were eager to accept AirAsia X flights to “compensate” as full-service carriers like Qantas had cut back their frequencies.

An affiliate of regional low-cost carrier AirAsia and Virgin Group, AirAsia X was launched in January 2007.

Meanwhile, AirAsia has extended its service to Makassar’s main gateway, the Hasanuddin International Airport, making it the first international airline to service the route.

The airport in Sulawesi, Indonesia, connects to other international routes via Kuala Lumpur and domestic destinations in the region.

it's OK, japanese can be pretty disgusting sometimes. then...we shall go to Seoul!!

http://www.tourism.jp/english/statistics/inbound.php

Last year, Malaysians to Japan : 100890

From that data, it was the first time the number of Malaysians to Japan, breached 100000 mark....

http://www.tourism.jp/english/statistics/outbound.php

The trend of Japanese tourist to south east Asian nations from January to May this year...

In May 2008 alone, the number Japanese tourists came to Malaysia increased by 31.2 % compared to previous year....

31.2%?? really meh???

31.2%?? really meh???

http://www.tourism.jp/english/statistics/outbound.php

Look at that website and the excel format data....there's comparison with other south east Asian countries and growth rate...

For example, this year Japanese tourists to Malaysia in May 2008, 30560...........May 2007, 23293....

sweeeeeeeeetttttttttttt......................

it's 3rd actually!

Airasia flights to Japan would be popular.

Jetstar flights to Japan has been quite popular among Aussie and Asian students.

^^ as Osman Rani said...hard for malaysian to get visa going to japan. but other way round...we can see huge number of japanese coming to malaysia. and South Korean mostly are not rich, seriously. despite their per capita is more than $12,000...but the real thing is, they are not in the same league as japanese in term of money spending.

^^ as Osman Rani said...hard for malaysian to get visa going to japan. but other way round...we can see huge number of japanese coming to malaysia. and South Korean mostly are not rich, seriously. despite their per capita is more than $12,000...but the real thing is, they are not in the same league as japanese in term of money spending.

http://www.traveldailynews.com/pages/show_page/26534

I thought Malaysians need visa to enter China? In this excerpt from the article, he said Malaysians visit China, receive VOA...is that so?

From a Japanese tourism website, it seems the number of Malaysians visited Japan as tourist, increased a lot...the only thing good for Malaysians is that, visa is free....

2006 : 49197
2007 : 62551

But these days, it is relatively easy to spot Japanese in KL....

AirAsia starts special promotion
Published: 2008/07/30

http://www.btimes.com.my/Current_News/BTIMES/Wednesday/Nation/airas.xml/Article/Current_News/BTIMES/Images/btgraph9/fare.jpg

AIRASIA Bhd, Asia's largest low-cost carrier (LCC), is offering airfares from Kuala Lumpur to eight domestic destinations for as low as RM9 each way, excluding taxes, fuel surcharges and fees.

The destinations comprise Alor Star, Johor Baru, Kota Baru, Langkawi, Penang, Kuala Terengganu, Kuantan and Labuan.

In a statement yesterday, AirAsia said the booking period for this special promotion began on Monday to August 5 for travelling between September 1 and November 13.

The move is in conjunction with Tourism Malaysia's ZOOM Malaysia tourism campaign, which aims to strengthen and stimulate domestic tourism.



Other routes offered under the promotion include Bintulu, Kuching, Miri and Sibu in Sarawak and Kota Kinabalu, Sandakan and Tawau in Sabah, which are priced from RM29 one way.

AirAsia expects to resolve LCCT debt issue in 2 weeks
By Marina Emmanuel Published: 2008/07/31



BUDGET carrier AirAsia Bhd expects to resolve any outstanding issues it has over the Low-Cost Carrier Terminal (LCCT) charges in two weeks.

Group chief executive officer Datuk Seri Tony Fernandes said he met with Malaysia Airports Holdings Bhd (MAHB) managing director Datuk Seri Bashir Ahmad on Monday to discuss the amount it owes the airport operator.

"I am optimistic that we can resolve this because it was a meeting of minds... the issue with MAHB is coming to an end," he said, but did not elaborate.

Fernandes was speaking to reporters at the inaugural session of investPenang's "The CEO Speaks" series in Penang yesterday.



Fernandes presented a talk on "Branding: Jazzing Up Your Business", which was launched by Penang Chief Minister Lim Guan Eng.

AirAsia is disputing the amount it owes MAHB because it believes that charges at the LCCT should be lower than the KL International Airport's main terminal.

It was reported that the actual amount accumulated since 2002 varies from the RM60 million mentioned in some reports to up to RM110 million as reported in Parliament.

The matter was reported to have been brought to the Finance Ministry to resolve.

"It is a bonus for us to clear that," Fernandes said, adding that the low-cost carrier business is a new one and therefore took a little longer for various parties to understand its operating concept.

Asked whether AirAsia is planning to settle its debts with MAHB, Fernandes said: "We have resolved whatever historical issues which are outstanding and will need further discussions on the future."

On the business outlook for AirAsia amid rising fuel costs, Fernandes said: "Despite 24 airlines around the world going bust, I am optimistic that people will still want to fly and we will continue doing what we are doing and ride through the storm."

AirAsia expects to end dispute with MAHB in two weeks
By DAVID TAN


GEORGE TOWN: AirAsia Bhd’s dispute with Malaysia Airports Holdings Bhd (MAHB) is expected to end in two weeks.

AirAsia chief executive officer Datuk Seri Tony Fernandes said he had met MAHB managing director and chief executive officer Datuk Seri Bashir Ahmad Abdul Majid to discuss some of the issues related to the charges that AirAsia owed MAHB.

“I expect the issues with MAHB to be over in two weeks,” he told reporters after speaking at The CEO Speaks seminar organised by investPenang for government officers and the business community to interact and obtain feedback from leaders of industries in the country.

The event is supported by the Penang Development Corp, The Star, Global Malaysian Network and Telekom Malaysia Bhd.

The charges AirAsia owe to MAHB are believed to range from between RM60mil and RM110mil, accumulated since 2002.

AirAsia believes the charges at the Low-Cost Carrier Terminal (LCCT) operated by MAHB, should be lower because the facilities available are basic and minimal compared with those at the KL International Airport.

“We are still keen on having our own LCCT in Penang, as that would make us more competitive. We are still in talks with the federal government on the matter,” Fernandes said.

He said AirAsia was still seeing strong business growth in Malaysia.

“The growth in passenger traffic is better than last year around this time. Our business in Indonesia and Thailand are strong, although several airlines in these countries have gone bankrupt,” he said.

AirAsia's Debt Issue To Be Resolved With MAHB Will Settle Within Next Two Weeks, Says AirAsia CEO


PENANG, July 30 (Bernama) -- Budget carrier AirAsia will resolve problems relating to it reportedly owing RM100 million to Malaysia Airports Holdings Bhd for the use of the latter's airports in the country within the next two weeks.

AirAsia's chief executive Datuk Seri Tony Fernandes said discussions were ongoing with MAHB and both sides have reached an agreement.

"I have met Datuk Seri Basher Ahmad, Malaysia Airports' managing director and I'm optimistic that within the next two weeks, there would not be any issue between AirAsia and Malaysia Airports," he told reporters after a dinner meeting with the Penang business community.

During the dinner, he met Basher Ahmad where they discussed the issue.

He said both parties had a fruitful dinner and that they would be happy with the resolution.

It was reported in May that the low-cost carrier owes MAHB more than RM100mil for its use of airports in the country since 2002 until March 31 this year.

AirAsia's debts included RM5.4mil that the low cost carrier owed when it was operating the Rural Air Services (RAS) in Sabah and Sarawak.

It had appealed for the amount to be reduced.

However, he said the budget airline is urgently in need of low cost terminals in Malaysia as it was not getting low charges for using the country's airports.

"I am very keen on setting up our own low-cost terminal but its really in the hands of the Federal government to decide and work on it," he said.

Despite the recent fuel hike, he said AirAsia will continue to expand its route and will not increase the fuel surcharge.

"It will certainly be a wrong move for the company to cut back on routes as we want to take a different view. We have launched a new "ZOOM" domestic flight package in cooperation with Malaysia Tourism," he said.

-- BERNAMA

Any of you guys tried tigerairways? Which one seems better?

Tigerairways is expanding like crazy in Australia,probably rivaling Jetstar.The flights are cheap but some have complained that the aircrafts are not as comfortable as Jetstar.

AirAsia to offer fares as low as RM15
Published: 2008/08/01



AIRASIA Bhd will offer fares as low as RM15 from Johor Baharu (JB) hub to Kuala Lumpur in conjunction with the 10th Malaysian Association of Tour & Travel Agents (Matta) Fair which will be held in JB from Aug 1-3.

In a statement in Kuala Lumpur yesterday, the company said the fares would also be priced as low as RM40 from JB to Penang with two flights available daily while the JB to Kota Kinabalu daily flights would be at as low as RM70.

AirAsia said it would also include several regional destinations as an added treat for budding travellers.

“A one-way flight to Jakarta or Surabaya is offered from as low as RM50 from JB with three flights a week for each route.



“Daily flights to Macau are also offered with fares from as low as RM100,” it said.

It said it would also give away free return flights from JB hub to Macau, Bangkok, Kuala Lumpur and Jakarta and from Kuala Lumpur hub to the Gold Coast, Banda Aceh and Vientiane.

Four free seats are allocated for each destination, it said.

AirAsia regional head of commercial, Kathleen Tan, said the MATTA fair gave the company an opportunity to reach out to the public.

“With low fares going even lower at the fair, it is the time for the public to take full advantage as the routes offered are among our best sellers,” she said. — Bernama

AirAsia offers cheap fares at travel fair


KUALA LUMPUR: AirAsia Bhd will offer fares as low as RM15 from Johor Baru to Kuala Lumpur in conjunction with the 10th Malaysian Association of Tour & Travel Agents (Matta) Fair to be held in Johor Baru from today to Sunday.

The company said fares would also be priced as low as RM40 from Johor Baru to Penang with two flights available daily while the Johor Baru-Kota Kinabalu daily flights would be priced as low as RM70.

AirAsia said it would also include several regional destinations as an added treat for travellers.

“A one-way flight to Jakarta or Surabaya is offered from as low as RM50 from JB with three flights a week for each route,” the statement added.

Daily flights to Macau would also be offered with fares from as low as RM100, it said.

The airline said it would also give away free return flights from Johor Baru to Macau, Bangkok, Kuala Lumpur and Jakarta and from Kuala Lumpur to the Gold Coast, Banda Aceh and Vientiane.

Four free seats are allocated for each destination. AirAsia regional head of commercial Kathleen Tan said the fair gave the company an opportunity to reach out to the public. – Bernama

AirAsia’s inaugural flight to Makassar receives warm welcome


The largest low-cost carrier in Asia, AirAsia celebrated its inaugural flight from Kuala Lumpur to Makassar (Ujung Pandang) in a warm welcoming ceremony held at the Hasanuddin International Airport recently.

Hasanuddin International Airport is Makassar’s main gateway and it connects to other international routes which AirAsia flies to via Kuala Lumpur.

http://thestar.com.my/archives/2008/8/2/central/m_21airasia.jpg
Welcome: CEO of Indonesia AirAsia, Capt Dharmadi (left) receiving a memento from South Sulawesi Governor Dr H. Syahrul Yasin Limpo.

It also serves other domestic points in that region such as Bajarmasin, Kendari, Palu, Mana-do, Gorantalo, Ambon and Jayapura.

Guests on Flight AK1026 from Kuala Lumpur were welcomed with a traditional cultural dance before being garlanded by the VIPs.

Among those present at the ceremony were South Sulawesi Governor Dr H. Syahrul Yasin Limpo, director-general of Indonesia’s Marketing Culture and Tourism Department Sapta Nirwandar, CEO of Indonesia AirAsia Capt Dharmadi and H. Jafrie Arief, Indonesia AirAsia’s director of airport & public policy as well as representatives from the Culture and Tourism Office of South Sulawesi.

Guests from Makassar who were travelling to Kuala Lumpur received goodie bags courtesy of Tourism Malaysia.

AirAsia group chief executive officer Datuk Seri Tony Fernandes said: “AirAsia’s low fares has enabled this new route to escalate in terms of the growth of passenger traffic between both countries and stimulate the local economies and tourism. This is evident as our first flight today recorded over 77% of load factor and this is a good indication of the strong growth for this sector.

“We hope that with this new air connectivity, the people of Makassar will have access to more low-cost alternatives to international routes and additional destinations from Kuala Lumpur.


One for the album: A group photo of AirAsia’s management, captains with the Governor of South Sulawesi and his entourage.

“Many Malaysian Malays are of Bugis descent with roots in South Sulawesi, hence the striking resemblance in terms of food and culture. Perhaps our revolutionary low fares will also initiate them to renew family ties and visit each other more frequently.”

Governor Dr Syahrul said: “We are pleased that AirAsia has become the first international airline to service this route, opening up our market to the world once again.

“Indeed this service has been long awaited by the people of Makassar and certainly will increase the integration between Makassar and Kuala Lumpur, enhance the trade and tourism industry of both countries in addition to further drive passenger traffic between the two cities.”

For more information, visit www.airasia.com

AirAsia will launch 2nd KL-HK direct flight
Published: 2008/08/05




AIR Asia Bhd will launch its second direct daily flights from Kuala Lumpur to Hong Kong to meet the increase demand from business and leisure travellers.

In a statement, its regional head of commercial, Kathleen Tan, said Hong Kong has always been a prominent destination due to its significance as a growing centre of international commercial and financial hub.

The promotional fares start from as low as RM88 for the booking period from Aug 5 to 8, 2008 for the travel period from Aug 27 to Apr 30, 2009. — Bernama

LTBB sedia jadi hab tambang murah AirAsia
Oleh Nasir Abd Wahab
anasir@bharian.com.my

MELAKA: Kerajaan Negeri akan berbincang dengan pengurusan syarikat penerbangan Air Asia bagi membolehkan Lapangan Terbang Batu Berendam (LTBB) yang dijangka siap Disember ini dijadikan hab tambang murah bagi zon selatan.

Ketua Menteri, Datuk Seri Mohd Ali Rustam berkata, cadangan itu akan dibincangkan ketika Ketua Pegawai Eksekutif Air Asia, Datuk Tony Fernandes mengadakan lawatan ke LTBB minggu ini.

"Kerajaan negeri sedia membuka laluan kepada AirAsia kerana menerusi kerjasama itu LTTB dapat dijadikan laluan penerbangan ke pelbagai destinasi berbanding hanya ke Pekan Baru saja ketika ini," katanya.



Beliau berkata, walaupun AirAsia belum memberikan kata putus mengenai cadangan itu, tetapi yakin pembesaran landasan LTTB memberi pilihan untuk syarikat itu memilih Melaka lebih-lebih lagi selepas permintaan mereka menjadikan Lapangan Terbang Antarabangsa Subang sebagai hab penerbangan tambang murah ditolak kabinet tidak lama dulu.

Katanya, syarikat penerbangan AirAsia perlu beroperasi di LTBB kerana Melaka kini menjadi tumpuan utama pelancong selepas mendapat status Bandaraya Tapak Warisan Dunia Unesco.

Selain itu, perkhidmatan AirAsia ke Melaka juga dapat membantu merealisasikan hasrat kerajaan negeri yang ingin membangunkan sektor pelancongan khususnya pelancongan perubatan sebagai sumber ekonomi utamanya pada masa depan.

"Melaka menawarkan pelbagai kepakaran dalam bidang perubatan dan setakat ini mendapat sambutan hangat pesakit dari Indonesia yang kebanyakannya tinggal di sini berbulan-bulan.

"Saya yakin, jika perkhidmatan penerbangan terus ke Melaka, mereka akan mendapatkan rawatan di sini kerana kosnya jauh lebih murah daripada di Jakarta," katanya dan menambah pembesaran LTTB boleh memudahkan jemaah haji berlepas ke tanah suci tanpa perlu ke Kelana Jaya.

AirAsia X: No charging passengers by weight
Published: 2008/08/05



MALAYSIAN long-haul budget carrier AirAsia X has denied it was considering charging passengers according to how much they weigh.

An Australian executive with the airline had been quoted as telling a travel industry magazine that an initiative to charge larger passengers “could help Aussies lose weight”. But the carrier said the comment had merely been a joke.

“We never planned nor even considered charging passengers by weight,” chief executive Azran Osman-Rani said in a statement.

An affiliate of regional low-cost carrier AirAsia and Virgin Group, AirAsia X was launched in January 2007.



From its base in Kuala Lumpur it operates services to Australia’s Gold Coast and Hangzhou in China.

It is set to begin flying to Perth from November but plans to fly to Britain are yet to be finalised. - AFP

AirAsia X denies plan to weigh passengers



KUALA LUMPUR: Long-haul budget carrier AirAsia X yesterday denied it was considering charging passengers according to how much they weigh.

An Australian executive with the airline had been quoted in a travel industry magazine that an initiative to charge larger passengers "could help Aussies lose weight". The comment had been a joke, the carrier said.

"We never planned, nor even considered charging passengers by weight," chief executive officer Azran Osman-Rani said in a statement.

The carrier operates services to Australia's Gold Coast and Hangzhou in China.

It is set to begin flying to Perth from November but plans to fly to Britain have yet to be finalised. -- AFP

AirAsia dapat LCCT di Kuching


KUCHING: Permintaan AirAsia untuk mendapatkan terminal penerbangan tambang murah (LCCT) di Lapangan Terbang Antarabangsa Kuching (LTAK) akan dipenuhi, berikutan kesediaan kerajaan negeri memberikan tapak berdekatan kepada syarikat tambang murah berkenaan.

Menteri Kewangan II Sarawak, Datuk Sri Wong Soon Koh, berkata kerajaan akan cuba memenuhi permintaan AirAsia berdasarkan syarikat berkenaan turut berjanji memperkenalkan beberapa laluan baru penerbangan terus ke sini.

Kerajaan katanya, sudah mengenal pasti tapak LCCT berkenaan dan terpulang kepada syarikat itu untuk menerimanya atau tidak, namun pandangan saya lokasinya memang sesuai kerana terletak hanya bersebelahan LTAK.



“AirAsia sebelum ini sudah berjanji menjadikan Kuching sebagai hub serantaunya di kawasan ini dan kami berharap dengan kemudahan LCCT baru ini mereka dapat beroperasi lebih efisien di sini,” katanya.

AirAsia diminta teruskan operasi Kuching-Bali

KUCHING 7 Ogos - Kerajaan negeri meminta syarikat penerbangan tambang murah, AirAsia Bhd. memberi sedikit tempoh kepada mereka menggiatkan promosi bagi tujuan menarik lebih ramai pelancong dari Bali datang ke Sarawak.

Menteri Kewangan Kedua Sarawak, Datuk Seri Wong Soon Koh berkata, kerajaan negeri memerlukan sekurang-kurangnya tempoh enam hingga 12 bulan untuk membawa pelancong dari Bali, Indonesia ke destinasi menarik di negeri ini.

''Beri kita sedikit masa kerana Lembaga Pelancongan Sarawak (STB) akan berada di Jakarta dan Bali bagi tujuan promosi untuk menarik kehadiran pelancong ke negeri ini," katanya.

Beliau berkata demikian kepada pemberita selepas majlis penyerahan nota tugas Menteri Pembangunan Bandar dan Pelancongan Sarawak di Bangunan Baitulmakmur di sini semalam.

Beliau diminta mengulas penangguhan penerbangan AirAsia dari Kuching ke Bali selepas dua bulan beroperasi.

Difahamkan penangguhan tersebut berpunca daripada kekurangan penumpang.

Soon Koh berkata, tindakan menggantung penerbangan ke Bali itu juga diharap tidak berlaku kepada penerbangan terus AirAsia dari Kuching ke Macau.

''Ini kerana, kerajaan negeri telah bersetuju untuk menyediakan terminal tambang murah bagi kemudahan AirAsia beroperasi di negeri ini dengan menjadikan Kuching sebagai hab penerbangan serantau," ujar beliau.

Jelas beliau, Kementerian Pelancongan Sarawak dalam tempoh terdekat akan cuba bekerjasama dengan syarikat penerbangan Indonesia untuk beroperasi ke Kuching.

Beliau memberitahu, kerajaan negeri juga sedang menunggu lampu hijau dari Kerajaan Pusat bagi membenarkan AirAsia dan Tiger Air beroperasi dari Kuching ke Singapura dan sebaliknya.

Ujarnya, industri pelancongan merupakan industri yang sedang berkembang pesat dan amat penting di Sarawak.

Sementara itu, Menteri Pelancongan Sarawak, Datuk Michael Manyin Jawong berharap, penggantungan penerbangan AirAsia dari Kuching ke Bali hanyalah bersifat sementara.

Beliau yang baru memegang portfolio berkenaan memberitahu, pihaknya sedang berusaha membuka laluan baru bagi syarikat penerbangan luar beroperasi di Kuching.

''Saya akan ke Indonesia dalam tempoh terdekat untuk berbincang dengan Batavia Air supaya membuka laluan Jogjakarta ke Kuching," katanya.

Hong Kong 2x daily
Hanoi 2x daily
Balikpapan & Trichy to start soon

KK is Air Asia’s most popular destination
11th August, 2008
KUALA LUMPUR: Kota Kinabalu has emerged as the most popular among 56 destinations budget airline AirAsia flies to now.

Kuching and Langkawi came second and third respectively in a survey conducted by the airline based on the average of passengers flying to each destination per month.

According to ‘Travel 3 Sixty’, the airline’s monthly inflight magazine, the other seven most popular destinations in its top 10 list were Bangkok, Jakarta, Macau, Bali, Kota Baharu, Shenzen and Phuket.

But the August issue of the magazine does not seem to live up to its publisher’s description of being “your sexy, stylish 5-star onboard companion”.

Its editorial team’s ignorance of some local geographical facts was obvious.

In its column of second most popular destination, Kuching (the capital of Sarawak), it urges tourists to visit the 560km Kinabatangan River Wildlife Sanctuary. (Actually Kinabatangan River is in Sabah, not Sarawak).

The magazine also says that the rainforest in Kuching is sanctuary to some of the world’s most stunning wildlife.

(This is also misleading as Kuching, being a city, does not have such a sanctuary).

AirAsia tidaktaja lagi MU

BANGKOK 10 Ogos - Syarikat penerbangan tambang murah Malaysia AirAsia tidak akan memperbaharui perjanjian penajaan dengan juara liga Eropah dan Liga Perdana Inggeris Manchester United untuk musim baru.

Ketua Pegawai Eksekutifnya, Datuk Seri Tony Fernandes mengesahkan bahawa niaga janji baru tidak dicapai dengan kelab bola sepak berprestij dunia itu yang mempunyai kira-kira 75 juta penyokong di seluruh dunia.

"Memang sah. Kami telah mencapai apa yang kami mahu," kata Fernandes dalam jawapan melalui SMS semasa diminta untuk mengesahkan spekulasi yang AirAsia tidak memperbaharui penajaannya.

Penumpang yang menaiki pesawat AirAsia tidak melihat sebarang logo dan pelekat MU di beberapa pesawatnya sejak awal bulan ini tetapi barangan kelab itu masih dijual dalam penerbangan.

AirAsia pertama kali menandatangani perjanjian penajaan selama setahun sebagai syarikat penerbangan tambang murah rasmi bagi MU untuk musim Liga Perdana Inggeris mulai Ogos 2005 hingga Mei 2006, dan memperbaharuinya hingga akhir musim 2007/2008, yang dimenangi kelab itu di bawah pengurusan Alex Ferguson.

Fernandes, bagaimanapun, enggan mendedahkan nilai penajaan sebelum ini serta tidak mahu mengesahkan sama ada MU telah meminta lebih banyak lagi.

"Saya tidak boleh beritahu," jelas beliau.

Semasa memperbaharui perjanjian itu pada 2006, Fernandes memberitahu media bahawa kos pernajaan setahun itu dalam lingkungan bajet tahunannya yang diperuntukkan kepada pengiklanan dan promosi yang berjumlah RM60 juta.

Terdapat laporan bahawa penajaan berkenaan bernilai kira-kira 2.5 juta hingga 3.0 juta pound.

- Bernama

AirAsia not renewing deal with MU



The budget airline confirms that a new sponsorship deal was not reached with Manchester United and that AirAsia has achieved what it wants, says its chief


BANGKOK: Malaysian low-cost carrier AirAsia will not renew a sponsorship deal with European and English Premier champions Manchester United for the new season.


Its Chief Executive Officer, Datuk Seri Tony Fernandes confirmed that a new deal was not reached with one of the most prestigious football clubs in the world with about 75 million fans around the globe.


“Confirmed. We have achieved what we want,” Fernandes said in a SMS reply when asked to confirm speculation that AirAsia has not renewed its sponsorships.


Passengers boarding AirAsia’s planes could not locate any logos and stickers of MU on some of the flights since early this month, but the club’s merchandises are still being sold onboard.


AirAsia first signed a one-year sponsorship deal as the official low fare airline for MU for the English League Premier season from August 2005 to May 2006, and had renewed it until the end of 2007/2008 season which was won by the club under legendary manager Alex Ferguson.


Fernandes, however, declined to reveal the value of previous sponsorships and also refused to confirm if MU has demanded for more money. “I can’t tell you,” he replied. When he renewed the deal in 2006, Fernandes had told the media that the cost of the one-year deal was within its annual RM60 million budget allocated for advertisements and promotions.


There were reports that the sponsorships was worth about 2.5 million pounds to 3.0 million pounds.


When AirAsia first struck the deal with MU in 2005, Fernandes had said the airline was hoping to woo foreign tourists to Asia and at the same time, leverage on the club’s huge fan base in Asia. In 2005, the deal was said to be worth RM14 million and AirAsia was entitled to market MU merchandise and paint at least one of its aircraft with images of its logo and players, while AirAsia’s logo was displayed on the digital “A” boards at Old Trafford, home of the Red Devils. On Nov 14, 2007, AirAsia and Tourism Malaysia signed a new deal with MU for the 2008 season.


Under the terms of the deal, AirAsia will continue to fly its MU branded Airbus aircraft, as well as producing joint merchandise, Asian trophy tours and player appearances at various AirAsia events. — Bernama

KL-Melbourne is coming soon

MELAKA, Aug 13 (Bernama) -- Low cost carrier AirAsia is expected to start its operations this December 8 at Melaka's Batu Berendam Airport (LTBB) which is undergoing a facelift worth RM131.5 million.

Chief Minister Datuk Seri Mohd Ali Rustam said six destinations had been identified by Air Asia for its initial operations comprising four places in Sumatra and two domestic destinations.

"The destinations jointly agreed upon, using the Boeing 737 aircraft, are Palembang, Pekan Baru, Padang and Medan in Sumatra, and Pulau Pinang and Langkawi," he told reporters after chairing the Exco meeting here Wednesday.

Also present at Wednesday's event was Air Asia chief executive officer Datuk Seri Tony Fernandes, chairman of Air Asia Datuk Aziz Bakar and the general manager of Malaysia Airports Bhd, Abdul Rahman Karim.

Mohd Ali said the four major towns in Sumatra were selected based on their potential for medical tourism while Pulau Pinang and Langkawi for their popularity as tourist destinations.

"Among other destinations being suggested are Jakarta, Kota Kinabalu and Nanjing in China and we have opened negotiations to other airline companies besides Air Asia which showed an early commitment to use the LTBB," he said.

The expansion and upgrading work on LTBB which started last April is expected to be completed in April next year and a major aim is to provide facilities to medical tourists.

The number of medical tourists who sought medical assistance in the specialist hospital in Melaka is estimated to have gone up to more than 67,000 people last year compared with 18,000 people in 2004 with most of them coming from Sumatra.

Work on LTBB is being carried out by the Uni-Integrated consortium which will construct a new terminal covering 7,000 sq metres and is expected to be equipped with various facilities to cater to both domestic and international flights.

Mohd Ali said the Batu Berendam airport will be able to handle a capacity of 1.5 million passengers a year, adding that some 500,000 visitors were expected in the first five years.

On the runway, which would have to be extended by 400 metres to 2,200 metres from the current 1,800 metres, he said the contractors involved in the expansion of LTBB had agreed to first bear the cost of RM40 million.

"I am giving the guarantee to the contractors that the state government will pay the RM40 million after a period of several years," he said.

He said that the application for the RM40 million has been also submitted to the Transport Ministry and is currently under consideration.

The extension of the runway to 2,200 metres is in line with international specifications for the safe and comfortable landing of an Airbus 320.

Meanwhile, Tony said Air Asia was ready to cooperate with the Melaka government. He also described Melaka as having great potential as a tourist destination especially in medical tourism.

"Coincidentally, Dec 8 is also the anniversary date of Air Asia and we are ready to take on a role in LTBB and hope to transport many tourists through the LTBB," he said.

AirAsia’s Indon-S’pore flight launched

Email us your feedback at fd@bizedge.com


SINGAPORE: Low-cost carrier AirAsia Bhd launched its direct flight from Indonesia to Singapore yesterday, following its inaugural flight to the island-republic from Kuala Lumpur in February this year.

In a statement yesterday, AirAsia said its new Pekanbaru-Singapore route would be serviced three days a week, while bringing the number of destinations it flew out of Indonesia to three.

Indonesia AirAsia chief executive officer Captain Dharmadi said the service would complement the carrier’s aggressive growth in Indonesia and allow it greater access to the established gateways of Singapore and Pekanbaru.

He added: “We are proud of the inclusion of this first direct flight from Indonesia as travellers can now benefit from AirAsia’s revolutionary low fare to connect to over 106 routes which AirAsia currently serves, in addition to the international destinations serviced by AirAsia X.”

AirAsia will start KL-Melbourne flights from November. Bookings start this midnight.For more info see

http://www.airasia.com/site/my/en/promotion.jsp?reference=mel2008

sigh,already bought cheap MAS tickets on Perth-KL and KL-Brisbane routes.But it'd be easier if I booked at least Melbourne-KL instead of Perth-KL.

I'm so happy that they decided to fly to Tulmarine Melbourne's main airport rather than to Avalon.

I remember we had to sleep at the Tullamarine airport after we missed the night flight to Sydney with Virgin Blue. Thank God they have this ticketing kiosk so I could buy tickets for next day's earliest flight. We had so much fun in Melbourne that we actually didn't check the time. I'm so gonna go to Melbourne soon.

Source : http://biz.thestar.com.my/news/story.asp?file=/2008/8/22/business/1860176&sec=business

Friday August 22, 2008
AirAsia X plans three more destinations
By By YVONNE TAN

The plan will take off when it gets more aircraft

PETALING JAYA: In an environment where airlines are seen struggling to keep profits afloat by cutting routes, homegrown long-haul low-cost carrier AirAsia X is doing the reverse.

Having announced its latest route to Melbourne, it is now working on plans to fly to South Korea, Japan and north India.

Chief executive officer Azran Osman-Rani said as soon as the company got more new planes, it would expand its routes to these countries.

AirAsia X is planning to obtain two new planes this year and three more next year. It currently has one plane.

On the rationale behind its expansion plans, Azran said “there was a very clear rush now.

“The airlines that are cutting down on routes are all legacy airlines which have non-profitable routes to cut out.

“For me, what is there to cut from? I currently only have one plane,” he told StarBiz when contacted yesterday.

Azran said the company’s strategy was “to get size and sales” and grow from there.

OSK Research Sdn Bhd associate director Chris Eng said it was “good” the carrier was flying to Melbourne’s Tullamarine airport rather than the earlier-preferred Avalon airport which was further.

On customer response, Eng said it depended on the fuel surcharge.

“We have indication that longer-haul traffic is suffering from high fuel surcharge,” he said.

In this current era of high oil prices, Azran said the traditional strategy employed by airlines was to increase price and cut capacity.

“But we keep prices low and prefer to grow our volumes,” he said.

The carrier announced Wednesday that it would add Melbourne to its current routes of Perth, Gold Coast and Hangzhou.

It also announced fares from RM99 from Kuala Lumpur and A$199 (RM577.94) from Melbourne to Kuala Lumpur. There will be four flights a week to Melbourne, with the first taking off on Nov 12.

Azran said “a high percentage” of seats would be based on the lowest fares. “On certain flights, more than half would comprise cheap tickets,” he said.

On when he expected the Melbourne route to be profitable, Azran said: “We’re looking at the end of 2009.”

As for the first day sales of its Melbourne tickets, he said the company was “very happy” about it . “It surpassed our Perth ticket sales and we are very confident we are going to do well.”

AirAsia X to fly direct to Melbourne

Email us your feedback at fd@bizedge.com


MELBOURNE: Long-haul low-cost carrier AirAsia X will start flying direct from Kuala Lumpur to Melbourne, its third Australian destination, from Nov 12.

In a statement yesterday, AirAsia X said it would have four return flights per week between Melbourne and Kuala Lumpur and was already planning to increase that to daily return flights during the peak season from December to mid-January 2009.

The carrier had also announced travel deals of fares from as low as RM99 from Kuala Lumpur and A$199 (RM577.94) net from Melbourne to Kuala Lumpur.

AirAsia X said the route would be serviced by the airline's first brand new wide-bodied Airbus A330 aircraft. Melbourne will be AirAsia X's fourth destination in its long-haul network following the launch of services to the Gold Coast, Hangzhou (Shanghai) and Perth.

AirAsia X chief executive officer Azran Osman-Rani said: "The daily peak season service during Christmas would offer Malaysian and Australian travellers attractive low fares at a time when other airlines typically gouge passengers with super high airfares because demand outstrips capacity."

He said the new flights servicing Kuala Lumpur and Melbourne were the result of a collaborative effort between the Victorian Government, AirAsia X and industry.

"We estimate that more than 60% of AirAsia X passengers to Melbourne will be first-time visitors, based on our Gold Coast experience, which will contribute significantly to tourism growth, allowing AirAsia X the opportunity to open up new market segments from Malaysia with its low fares," Azran said.

AirAsia X operates four weekly flights to Gold Coast and will be serving Perth with five flights per week.

Fernandes: AirAsia to fly to London in March


KUALA LUMPUR: Budget carrier AirAsia X has reiterated that it will fly to London in March, with Stansted airport the likely destination.

“Definitely, it is going to happen and I am optimistic that it will happen in March,” said Datuk Tony Fernandes, AirAsia X director, founder and group CEO of South-East Asia’s largest budget carrier, AirAsia.


»Definitely, it is going to happen« DATUK TONY FERNANDES
He said high fuel prices would not deter expansion plans.

The long-haul budget carrier had planned to launch flights to London in December but difficulties in securing a leased airplane forced it to postpone.

Fernandes said AirAsia X favoured Stansted, on the outskirts of London, but would finalise its plans in September when it meets officials from Stansted as well as Manchester airport, which is its other option.

He said the carrier would use a leased A340-300 to mount direct flights from Kuala Lumpur, which will act as a hub for other regional destinations in the AirAsia network.

Fernandes added there were plans to fly to South America and Africa.

AirAsia X CEO Azran Osman Rani rejected pessimism among aviation analysts about the prospects for long-haul budget carriers.

“Our model proves that low-cost long-haul can work if you do it right. The faster we expand, the faster our costs drop and the faster we can be more aggressive on pricing,” he said.

AirAsia X has purchased 25 Airbus A330-300 aircraft and is expecting delivery of the first two in October and December this year.

AirAsia X is an affiliate of AirAsia and Virgin Group and was launched in January 2007. – AFP

AirAsia X to fly direct to Melbourne

Email us your feedback at fd@bizedge.com


MELBOURNE: Long-haul low-cost carrier AirAsia X will start flying direct from Kuala Lumpur to Melbourne, its third Australian destination, from Nov 12.

In a statement yesterday, AirAsia X said it would have four return flights per week between Melbourne and Kuala Lumpur and was already planning to increase that to daily return flights during the peak season from December to mid-January 2009.

The carrier had also announced travel deals of fares from as low as RM99 from Kuala Lumpur and A$199 (RM577.94) net from Melbourne to Kuala Lumpur.

AirAsia X said the route would be serviced by the airline's first brand new wide-bodied Airbus A330 aircraft. Melbourne will be AirAsia X's fourth destination in its long-haul network following the launch of services to the Gold Coast, Hangzhou (Shanghai) and Perth.

AirAsia X chief executive officer Azran Osman-Rani said: "The daily peak season service during Christmas would offer Malaysian and Australian travellers attractive low fares at a time when other airlines typically gouge passengers with super high airfares because demand outstrips capacity."

He said the new flights servicing Kuala Lumpur and Melbourne were the result of a collaborative effort between the Victorian Government, AirAsia X and industry.

"We estimate that more than 60% of AirAsia X passengers to Melbourne will be first-time visitors, based on our Gold Coast experience, which will contribute significantly to tourism growth, allowing AirAsia X the opportunity to open up new market segments from Malaysia with its low fares," Azran said.

AirAsia X operates four weekly flights to Gold Coast and will be serving Perth with five flights per week.

It will be interesting to see how MAS will perform on this route after it is launched. I hope the market is big enough for both to survive and with competition, the prices will go down.

Source : http://biz.thestar.com.my/news/story.asp?file=/2008/8/22/business/1860176&sec=business

Friday August 22, 2008
AirAsia X plans three more destinations
By By YVONNE TAN

The plan will take off when it gets more aircraft

PETALING JAYA: In an environment where airlines are seen struggling to keep profits afloat by cutting routes, homegrown long-haul low-cost carrier AirAsia X is doing the reverse.

Having announced its latest route to Melbourne, it is now working on plans to fly to South Korea, Japan and north India.

Chief executive officer Azran Osman-Rani said as soon as the company got more new planes, it would expand its routes to these countries.

AirAsia X is planning to obtain two new planes this year and three more next year. It currently has one plane.

On the rationale behind its expansion plans, Azran said “there was a very clear rush now.

“The airlines that are cutting down on routes are all legacy airlines which have non-profitable routes to cut out.

“For me, what is there to cut from? I currently only have one plane,” he told StarBiz when contacted yesterday.

Azran said the company’s strategy was “to get size and sales” and grow from there.

OSK Research Sdn Bhd associate director Chris Eng said it was “good” the carrier was flying to Melbourne’s Tullamarine airport rather than the earlier-preferred Avalon airport which was further.

On customer response, Eng said it depended on the fuel surcharge.

“We have indication that longer-haul traffic is suffering from high fuel surcharge,” he said.

In this current era of high oil prices, Azran said the traditional strategy employed by airlines was to increase price and cut capacity.

“But we keep prices low and prefer to grow our volumes,” he said.

The carrier announced Wednesday that it would add Melbourne to its current routes of Perth, Gold Coast and Hangzhou.

It also announced fares from RM99 from Kuala Lumpur and A$199 (RM577.94) from Melbourne to Kuala Lumpur. There will be four flights a week to Melbourne, with the first taking off on Nov 12.

Azran said “a high percentage” of seats would be based on the lowest fares. “On certain flights, more than half would comprise cheap tickets,” he said.

On when he expected the Melbourne route to be profitable, Azran said: “We’re looking at the end of 2009.”

As for the first day sales of its Melbourne tickets, he said the company was “very happy” about it . “It surpassed our Perth ticket sales and we are very confident we are going to do well.”

Hopefully, one day it will fly to the North America.

Jala is saying OMG ...
Perth, Melb and soon London... head to head with MAS... in future LA, NY, Dubai etc

Jala is saying OMG ...
Perth, Melb and soon London... head to head with MAS... in future LA, NY, Dubai etc

well, if MAS keeps offering its RM0 from time to time, i'll take MAS anytime and firefly in Malaysia is also a good alternative coz only need to go to subang :)

I was gonna take AIr Asia for Perth-KL but MAS cutprice fare is only $50 above AK with IFE and meals included.I also took MAS for KL-Brisbane(only RM700 and on B747!!), coz more convenient than flying through Perth and GC. But MAS will lose this strategic advantage as AK encroach upon major cities like Melbourne where I am sure many Malaysian students flying back to Melbourne,Adelaide and Sydney from KL will gladly take AK.The fact that AK will use new A330 is also an attraction.

The competition is really good for us.Hopefully MAS offer RM0 fare on its KL_melbourne route.I am sure many Malaysian students will leave MAS in droves for AK and MAS will surely do something about it.

AirAsia: One million free seats up for grabs
Published: 2008/08/26




LOW-COST carrier AirAsia Bhd is giving away one million free seats from today for all its destinations from its seven hubs. The hubs are Kuala Lumpur, Kota Kinabalu, Kuching, Johor, Bangkok, Jakarta and Bali.

The six-day booking period ends on August 31 for the travel period starting April 1 2009 till July 31 2009.

AirAsia’s free-seat campaign includes over 105 routes in the Asean and China network plus AirAsia X’s long-haul destinations. Such destinations include Makassar, Manado, Solo, Shenzhen, Bandung, Vientiane, Phuket, Macau, Ho Chi Minh City, Bali, Perth and Melbourne.

“We are also offering great hotel rates and exciting packages under Go Holiday, to go along with the free flight,” said AirAsia Bhd regional head of commercial Kathleen Tan in a statement issued yesterday.



Tan said the one-stop travel portal, goholiday.airasia.com, offers a wide range of over 25,000 hotel partners. Guests can also enjoy savings when they book online at www.airasia.com, for either the hot meals or checked baggage fees.

“The free-seat campaign is AirAsia’s commitment to the lowest fare online to our guests, despite rising fuel cost,” she said.

Check out the crazy sale.Even the KL-Melbourne route have sales :banana:
http://www.airasia.com/site/my/en/page.jsp?reference=1mfs

:gaah: Tiruchirapalli masih takdak dalam senarai !

Sekarang dah akhir bulan 8.. dengaq kata Trichy akan mula awal Oktober ? Maksudnya tak lama lagi muncul eh ?

seronok gak jalan2 ke India ni....baru ada 'adventure' skit....i prefer Mumbai anyway

AirAsia to shift finance department
By Racheal Lee Mei Nyee
Email us your feedback at fd@bizedge.com


AirAsia Bhd will be shifting its Sepang-based finance department to its Bangkok shared-service centre by September, says a source.
"A meeting was held in early August to finalise the matter, and the existing finance department will be dissolved upon the completion of the move," the source says.
"The shifting will be done in two phases, and is scheduled for completion by September," the source tells The Edge. It is learnt that the decision to move the finance operation to Bangkok is to cut costs and is inline with the airline "being Asean" Generally, a shared-service centre involves the centralising of back-office functions such as human resources and finance, but it can also be applied to the middle or front offices. It enables economies of scale, where there is the potential to create synergies. The setting-up of shared-service centres can eventually allow an organisation to streamline its functions, while ensuring its services are delivered effectively and efficiently.
While both Bangkok and Kuala Lumpur are multinational companies' top picks in Asia to set up their shared-service centres, why is AirAsia shifting one of its core departments — finance — to Bangkok when its headquarters is located in Sepang, Kuala Lumpur? Does it mean that the budget airline will shift its other departments and eventually its headquarters to Bangkok?
In Kuala Lumpur, multinational companies, such as Shell and Standard Chartered Bank, have set up their shared-service centres here. Philips Group and ExxonMobil have their shared-service centres in Bangkok.
Is the decision to relocate its finance department to Bangkok merely a normal practice by a company to cut costs? In its six-month report ended Dec 31, 2007, AirAsia says it will streamline its operations and is working towards a single aircraft fleet to reduce duplicating manpower requirements as well as stocking of maintenance parts. If the move to Bangkok is to cut cost, how much can AirAsia eventually save?
Crude oil prices remain high despite the recent fall. The price surged to a record high of US$147.27 a barrel last month and has recently retreated to US$120 a barrel, which is still 20% higher than it was at the beginning of the year.
Oil prices were above US$121 last Friday after jumping more than US$5 overnight as investors mulled the likelihood that tension with Russia (over Georgia) would further disrupt crude supplies to the West.
Earlier, AirAsia CEO Datuk Seri Tony Fernandes said the airline would face margin erosion and it would be difficult to maintain the same profit level, going forward. The airline is expected to release its earnings for 2Q ended June 30 this week.
OSK Research analyst Chris Eng expects AirAsia to post a slight decline, or break even in profit before tax. "Generally its 2Q is not strong. The oil prices are high, and AirAsia is using its fuel hedge," he says.

According to the source, AirAsia will have to lay off some employees, while others will be relocated to other departments. The number of employees who will lose their jobs after the move is not known yet. "Coincidentally, several managerial staff have also resigned after the announcement (to shift the finance department)," the source adds.
It is believed that the compensation to affected employees would not involve a huge amount, as they have served the company for not more than three years. If AirAsia pays its employees according to Malaysia's Employment (Termination and Layoff Benefits) Regulations 1980, an employee will be entitled to the following layoff benefits:
• One to two years' service — 10 days' wages for each year of service;
• More than two but less than five years — 15 days' wages for each year of service; and
• Five years' service or more — 20 days' wages for each year of service.
For an incomplete year, the calculation will be on a pro-rata basis to the nearest month. However, employees who serve less than 12 months on the date of termination are not entitled to termination or layoff benefits.
As at Dec 31, 2007, AirAsia in Malaysia had 3,474 staff. Thai AirAsia and Indonesia have staff strength of 1,533 and 1,100, respectively.
In its six-month report, AirAsia said total operating expenses exceeded RM897 million, of which staff cost accounted for 12.44%, or RM111.7 million. The staff cost includes RM102.4 million for wages, salaries, bonus and allowances, as well as RM9.26 million for defined contribution retirement plan.
When contacted, AirAsia management would not comment any further, saying the company is still ironing out the details.

AirAsia X yakin potensi Hangzhou
Oleh Mohd Nasif Badruddin
mnasif@hmetro.com.my

AIRASIA X optimis penerbangannya ke Hangzhou, China yang kini hanya mencapai purata jualan 70 peratus tempat duduk, akan meningkat kepada 80 peratus sejurus selepas Sukan Olimpik berakhir.

Sejak melancarkan penerbangan pertama pada 4 Februari lalu, AirAsia X menjadi syarikat penerbangan Asia Tenggara pertama menyediakan perkhidmatan penerbangan terus ke Hangzhou dari Kuala Lumpur, lima kali seminggu.

Ketua Pegawai Eksekutif AirAsia X, Azran Osman Rani, berkata AirAsia X menyediakan perkhidmatan penerbangan ke Hangzhou kerana laluan baru itu membolehkan mereka meneroka peluang lebih besar pada masa depan khususnya di negara Asia Timur itu.

“Kami belum lagi mendapat untung besar kerana hanya menggunakan satu pesawat dan menjangkan mencapai sasaran tahun depan dengan dua pesawat baru Airbus A330-300 akhir tahun ini, untuk penerbangan jarak jauh seperti ke Hangzhou, Perth dan Gold Coast di Australia.

“Dengan kepadatan tujuh juta penduduk, Hangzhou menjadi tarikan terbaru pelancong ke sana, sesuai dengan jolokan ‘Bandar Syurga China’ yang memiliki landskap dan seni bina tradisional yang dijaga baik selain pusat perdagangan dan teknologi.

“Kami sekarang mencari ejen pelancongan di Hangzhou yang boleh menyediakan perkhidmatan visa kepada pelancong tempatan yang berminat ke Malaysia dan mampu memenuhi selera tempatan seperti makanan halal untuk pelancong Malaysia” katanya ketika menghantar rombongan media yang mengikuti penggambaran Majalah 3 ke Hangzhou, China di Lapangan Terbang Tambang Rendah (LCCT), Sepang baru-baru ini.

Sementara itu Konsul Jeneral Malaysia di Shanghai, Azmil Zabidi, berkata sejak adanya penerbangan AirAsia X ke Hangzhou, jumlah pelancong China ke Malaysia meningkat 48 peratus berdasarkan statistik dari Februari hingga Jun tahun lalu kepada tempoh sama tahun ini.

“AirAsia X membuka pintu baru kepada pelancong kedua-dua negara untuk ke Hangzhou atau sebaliknya tanpa melalui Shanghai. Namun ia memerlukan publisiti lebih meluas kerana pelancong di sini mahukan pakej lengkap meliputi tempat penginapan dan makan minum, bukan sekadar penerbangan semata-mata.

“Hanya tiga Konsulat Malaysia di sini yang mengeluarkan visa iaitu Beijing, Shanghai dan Kunmin di mana 30 peratus daripadanya dikeluarkan di Shanghai. Ia menunjukkan kadar pelancong yang tinggi dari sini ke Malaysia,” katanya.

Konsul Pelancongan, Konsulat Jeneral Malaysia di Shanghai, China, Edzuar Zar Ayob, pula berkata pihaknya banyak membantu promosi AirAsia X mengadakan penerbangan ke sana dan kelebihannya kerana ada tempahan on-line membolehkan pelancong bebas merancang sendiri perjalanan.

“Kami akan menjemput AirAsia X menyertai ekspo perdagangan yang akan diadakan nanti. Apa yang penting ia perlu berkerjasama dengan ejen pelancongan tempatan bagi menyediakan pakej pilihan yang sesuai.

“Sehingga Julai tahun ini, kita mendapat 568,660 pelancong China ke Malaysia dan kita mensasarkan mencapai 750,000 pelancong tahun ini,” katanya.

'Amount owed to MAHB settled'
Published: 2008/08/29



The airline can't provide the amount as it has a non-disclosure agreement, but it has settled the old debts, says its group chief executive officer


BUDGET carrier AirAsia Bhd says it has settled the amount owed Malaysia Airports Holdings Bhd (MAHB) for its operation at the Low-Cost Carrier Terminal (LCCT) in Sepang.

"We have reached an amicable resolution with MAHB. We have paid the agreed settlement amount to MAHB and accordingly taken credit for the disputed cost items ruled in our favour," AirAsia group chief executive officer Datuk Seri Tony Fernandes said in a statement released yesterday in Kuala Lumpur.

The amount paid to MAHB was not disclosed.

"We can't provide the amount as it has a non-disclosure agreement, but we have settled the old debts," Fernandes said in a conference call with analysts yesterday.



In May, Transport Minister Datuk Ong Tee Keat said AirAsia owed MAHB RM110.36 million in service charges since 2002.

The airline disputed the amount, saying that it owed only RM62.6 million.

Fernandes also said that the airline was in discussion with the government to lower airport charges at the LCCT and to provide incentives for high-growth airlines.

"We pay the same charges as the other terminal (KL International Airport's main terminal) and this is ludicrous," he said.

It is understood that AirAsia has proposed to MAHB that the charges be reduced as of May last year.

AirAsia Q2 net profit plummets
By Jeeva Arulampalam Published: 2008/08/29



A forex loss of RM76.9 million and record high jet fuel prices hurt the budget airline, leading to a 95 per cent drop in net profit to RM9.4 million


LOW-COST carrier AirAsia Bhd said second quarter net profit plunged 95 per cent to RM9.4 million due to foreign exchange losses and high fuel costs.

It had a forex loss of RM76.9 million because a weaker ringgit increased the amount of its foreign debt.

It expects a challenging third quarter, traditionally AirAsia's weakest. Last month, it had to contend with record high jet fuel prices.

Revenue grew 41 per cent to RM608 million in the three-month period ended June 30 2008, attributed to higher passenger volume as well as ancillary income.



It carried 20 per cent more passengers, or 2.8 million people, while ancillary income jumped 60 per cent to RM50.3 million.

Ancillary income refers to sales of food, beverage and travel insurance, among other things.

"The per passenger ancillary spend has increased 34 per cent to RM17.80 and ancillary income now represents 8.3 per cent of total revenue," group chief executive director Datuk Seri Tony Fernandes said in a statement released yesterday in Kuala Lumpur.

It filled 76 per cent of its planes, down from 81 per cent previously, as it added new planes and new routes had yet to do well.

Fernandes said that AirAsia had some short-term hedging, but its fuel requirements were largely not hedged.

"We will do a vanilla hedge if required, but hedging is expensive right now, so we'd rather not," he said in a conference call with analysts yesterday.

AirAsia's associate companies in Thailand and Indonesia posted losses.

"The Thai operation endured a challenging period due to escalating domestic political uncertainties," he said.

However, Fernandes said he was optimistic over the long term as other airlines had ceased operations or cut back on capacity in Thailand.

"We can invest in the business and rejuvenate the fleet with new Airbus A320 aircraft and expand our route network," he said.

The Indonesian operation was affected by the costlier fuel due to its usage of the Boeing 737-300 aircraft.

"Indonesia will receive its first Airbus A320 on September 19 and this will reduce operational cost and enhance efficiency," Fernandes added.

In the half-year period, net profit declined 37 per cent to RM170.7 million from RM272.3 milion previously.

Revenue, however, was up 38 per cent to RM1.1 billion as passenger growth increased 20 per cent.


LOCAL

AirAsia’s 2Q hit by weaker ringgit
by Ellina Badri
Email us your feedback at fd@bizedge.com


KUALA LUMPUR: Low-cost carrier AirAsia Bhd saw its net profit for the second quarter (2Q) ended June 30, 2008, plunging 95% to RM9.42 million from RM185.05 million after accounting for deferred taxation, mainly due to a RM77 million translation loss resulting from the weakened ringgit.

Revenue rose 41% to RM608.38 million from RM432.15 million a year earlier, on the back of higher passenger volume and higher contributions from ancillary income. Passenger volume grew 20% year-on-year, while the average fare was higher by 16% at RM198. Earnings per share (EPS) fell to 0.4 sen from 7.9 sen. No dividend was declared.

AirAsia said the load factor was 4.4% lower at 76%, due to significant capacity addition and the initial underperformance of new routes. The low-cost airline said the group’s core operating profit was at RM29 million, 2% higher from a year earlier.

For the six-month period, its net profit fell 37% to RM170.69 million from RM272.29 million a year earlier, while revenue rose 40% to RM1.14 billion from RM828.33 million. EPS decreased to 7.2 sen from 11.6 sen.

In a statement, AirAsia group chief executive officer Datuk Seri Tony Fernandes said ancillary income grew 60% from last year. “The checked baggage fee introduced in the quarter has helped to recover some impact of the higher fuel prices without undermining passenger demand,” he said.

On its Thai operations, Fernandes said it had endured a challenging period due to escalating domestic political uncertainty, leading travellers to hold back their travel plans.

“We have seen other airlines cease operations and cutting back on capacity in Thailand. This is the perfect opportunity for us to invest in the business and to rejuvenate the fleet with new Airbus A320 aircraft and expand our route network,” he said.

He added the carrier’s Indonesian route network reorganisation had produced positive outcomes, with greater passenger flow and substantially higher yields. The fuel cost rise had, however, impacted the Indonesian operations severely as it operated Boeing 737-300 aircraft, while Indonesia would receive its first Airbus A320 aircraft on Sept 19.

“We have seen greater passenger demand in Indonesia with strong forward bookings with higher yields. We will see significant improvements in the performance of our associates in the third quarter,” Fernandes said.

Going forward, he said 3Q would be a challenge as it was traditionally its weakest quarter, compounded by the record levels of jet fuel prices in July.

“Passenger demand remains strong and we are able to achieve higher yields as compared to the same period last year. Despite the added challenge for the third quarter, we are confident that we will remain profitable for the full year accounted,” he said.

AirAsia to offer exclusive deals


KUALA LUMPUR: AirAsia is offering fares to local and overseas destinations from as low as RM10 as well as holiday packages from RM156 as part of its largest-ever participation at this year’s Matta Fair.

Its regional head of commercial Kathleen Tan said that while the airfares were available online from its website, the Go Holiday packages, which include flight and accommodation, would only be on offer at the fair.

Matta Fair will be held at the Putra World Trade Centre from Friday to Sunday.

Tan said the Go Holiday packages for three-day, two-night trips were priced from RM156 to domestic destinations and from RM165 to international destinations.

“We are aware that the crowd that goes to this fair is different from those who book our tickets and packages online. This is why we have made these offers only available at the fair site only,” she said.

Tan added that the airline was also working closely with travel agents at the fair to enable them to come up with special tour packages.

“AirAsia is also working closely with Tourism Queensland, Gold Coast Tourism and Western Australia Tourism for the fair to promote AirAsia X’s destinations in Australia.

“Especially flown in from Queensland will be Warner Movie World’s Batman, Tweety and Bugs Bunny. The cartoon characters will add to the show’s atmosphere with four daily performances,” Tan said.

Those buying a flight or accommodation from the low-cost carrier will be eligible to enter a “Spin the Wheel” competition and stand a chance to win a variety of prizes. They include return air tickets to one of AirAsia’s destinations, free passes to tourist attractions, hotel accommodation, gift vouchers and MP3 players.

AirAsia worst hit by Thai political woes
by Doreen Leong
Email us your feedback at fd@bizedge.com


KUALA LUMPUR: Budget carrier AirAsia Bhd is among the worst hit by the current political tension in Thailand due to its substantial business exposure there, analysts said.

The stock fell to an intra-day low of RM1 yesterday, despite lower crude oil prices as the carrier was expected to be negatively impacted via its 48.9%-owned Thai AirAsia Co Ltd and its high passenger traffic to the country. It closed one sen lower at RM1.05, heavily traded with more than 11 million shares done.

However, AirAsia group chief executive officer Datuk Seri Tony Fernandes told The Edge Financial Daily that business was still robust and the airline would market its way out of the current calamity, just as it had successfully done so in the past.

"This is another calamity but people still fly. We have no intention to cut any flight, just like when the tsunami and Bali bombing occured. We will be launching our eighth flight to Bangkok due to strong demand," he said.

But analysts are concerned about the uncertainties in the protracted stand-off between Thai Prime Minister Samak Sundaravej and his opponents, which was turning away tourists from the country and inevitably, AirAsia's loads and bottom line would be impacted.

"AirAsia will be among the worst hit Malaysian companies in Thailand as Thailand is one of the airline's substantial destinations," OSK Investment Research analyst Chris Eng said.

He added that there could also be a lingering negative stigma on Thai AirAsia, which was previously co-owned by Shin Corporation. Shin Corp was owned by Thai's ousted prime minister Thaksin Shinawatra's family. Currently, Thai AirAsia is 50% owned by Asia Aviation, 49% by AirAsia, and 1% by Thai AirAsia CEO Tassapon Bijleveld.

Similarly, Aseambankers Research said in its note that AirAsia was the most exposed to the tensions in Thailand.

"With a likely downturn in the air travel industry in Thailand, AirAsia could be forced to cut down the number of flights at its Thai AirAsia associate. Thai AirAsia reported a loss of RM57 million in the first half of this year and any injection of fresh capital into Thai AirAsia could lower AirAsia's forecast earnings in at least 2008 and 2009," it added.

Thailand entered its second day of a state of emergency, with the election commission formally requesting the Constitutional Court to disband the ruling People Power Party.

Malaysian Airline System Bhd and AirAsia had to cancel or postpone flights to Hatyai, Phuket and Krabi airports over the last few days.

However, the research house said the declining crude oil prices, which trend below US$110 (RM345) per barrel yesterday, would provide a much-needed relief for airlines. But the stronger US dollar may dampen the positive impact of lower fuel costs for Malaysian carriers.

"While there should be trading interest in MAS given crude oil's downtrending, interest in AirAsia could be capped by worries over cash requirements at its Thai associate," Aseambankers said.

Meanwhile, UBS called a sell on AirAsia as it expected the carrier to post losses this year and 2009 due to the weakening ringgit, higher fuel costs and slowing demand.

New aircraft expected to weigh on AirAsia capex
By Francis Fernandez Published: 2008/09/05
BusinessTimes

http://www.btimes.com.my/Monday/OurPick/AIRA.xml/Article/Current_News/BTIMES/Images/btgraph10/airplanes.jpg

AIRASIA Bhd, Asia's fastest-growing budget airline, may have to delay taking delivery of new aircraft or resort to sale-and-leaseback deals to reduce its capital expenditure bill, Morgan Stanley said in a report this year.

"We think it could encounter difficulties raising the huge capital requirement of RM2.8 billion to RM3 billion in the next 12 months without a substantial increase in funding cost.

"If both issues lead to a credit crunch for the carrier, we see AirAsia shares trading down to our bear case valuation of 64 sen," analyst Chin Y. Lim wrote in the report.


The carrier has 43 aircraft as of June 30, up from 34 a year earlier. It is scheduled to take delivery of 17 Airbus planes next year, at a catalogue price of US$60 million (RM206 million) each.

The research house also feels that the carrier's net equity and income has been boosted by a substantial deferred tax credit under the Investment Tax Allowance programme for purchase of planes.

"We estimate AirAsia's net equity could be inflated by as much as 31 per cent by deferred tax assets in 2008, and by about 38 per cent to 56 per cent for the next two to three years," Chin wrote.

AirAsia's net profit for the second quarter ended June 30 slumped 95 per cent to RM9.42 million from RM185 million a year ago, as it suffered a RM77 million translation loss due to a weaker ringgit.

Deutsche Bank considers the stock a "sell" as its second quarter results have been blurred by dubious writeback, making core operating results unclear.

"Uncertain demand, the lack of fuel hedging and high gearing levels are negative factors heading into the second half. The stock looks overvalued. We do not rule out AirAsia re-testing its historical low," analyst Nik-hadi Nik-mahmood wrote in a report.

Meanwhile, UBS AG expects AirAsia to suffer two years of losses due to the weakness in the ringgit, and its aggressive pricing to grab market share. It advised selling the stock, as the airline is unlikely to meet UBS' earlier target of breaking even this year and the next.

AirAsia to start daily KK-Labuan flights
Published: 2008/09/05




LOW-COST carrier AirAsia Bhd will start daily flights between Kota Kinabalu and Labuan from September 26, with fares from as low as RM9 one-way, excluding airport fees, administration and fuel surcharges.

AirAsia group chief executive officer Datuk Seri Tony Fernandes said the air linkage provided by AirAsia has opened various economic and business opportunities since it launched its first flight in Sabah six years ago.

AirAsia will also increase the frequency of flights between Kota Kinabalu and Sandakan, and Kota Kinabalu and Tawau.

New route for AirAsia


KUALA LUMPUR: AirAsia has launched a new domestic route from Kota Kinabalu to Labuan with fares from as low as RM9.00.

The daily flight, commencing on Sept 26, will provide foreign visitors an added entry point into Kota Kinabalu, the main gateway to Sabah.

AirAsia chief executive officer Datuk Tony Fernandes said that the air linkage provided by AirAsia has in some ways opened up various economic and business opportunities since the first flight in Sabah six years ago.

He added that more flights would be added from Kota Kinabalu to Sandakan and Kota Kinabalu to Tawau.

Airasia To Start Kota Kinabalu-labuan Route On Sept 26


KUALA LUMPUR, Sept 4 (Bernama) -- AirAsia Bhd will launch a new domestic route, Kota Kinabalu-Labuan beginning this September 26.

The low-cost airline said this daily flight would increase air connectivity in Sabah and provide an added entry point to get into Kota Kinabalu, the main gateway to Sabah.

"The air linkage provided by AirAsia has someway assisted to open various economic and business opportunities since we launched the flight in Sabah six years ago," its group chief executive officer Datuk Seri Tony Fernandes said in a statement Thursday.

The fares for new routes start from as low as RM9.00, excluding airport taxes, fuel surcharges and fees and are applicable for one-way travel only.

AirAsia is also adding more frequency on the Kota Kinabalu-Sandakan and Kota Kinabalu-Tawau routes due to strong demands.

-- BERNAMA

AirAsia 'making risky bet'
Published: 2008/09/08



AIRASIA, the region's biggest budget carrier, is making a risky bet.

As soaring fuel prices have forced other airlines to cut back, shed jobs and ground planes, AirAsia is doing the opposite: increasing flights, adding routes and boosting capital investment.

Last month, it even gave away a million free seats (although passengers still had to pay taxes and fuel surcharges). The seven-year-old company is aiming to fill the vacuum as other airlines reduce capacity, betting that more travellers will opt for budget flights amid a global economic downturn.

Analysts say if it survives the industry slump, AirAsia could come out a winner with increased customer loyalty and a strong route network to catch the growth wave when good times return.



"They are reasonably well-positioned for the long run, but there's always a trade-off. It's a long-term decision, which will cause some short-term pain," said Damien Horth, Asia transport analyst at UBS AG in Hong Kong.

Of course, the strategy could also backfire badly.

Last month, AirAsia reported a 95 per cent plunge in its net profit for April-June quarter to RM9.42 million. But the company chalked that up mostly to a RM77 million foreign exchange loss from a weakened ringgit, not weakness in its underlying business.

Average load factor - the percentage of seats taken up in an airplane - dipped to a still relatively strong 76 per cent, from 80 per cent in 2007.

It has a cash reserve of about RM1 billion, but outstanding debts stand at RM5.4 billion, giving it a net debt position of RM4.4 billion. Debts are set to grow as it receives new planes.

Chris Eng, analyst with OSK Securities in Malaysia, said AirAsia's growth prospects may be curbed, while its joint ventures in Thailand and Indonesia are expected to remain in the red.

"It will be challenging but we believe AirAsia can survive," Eng said, citing its efficient regional network and good cost control. - AP

AirAsia X unscathed, thanks to low fares
Published: 2008/09/08



LONG-HAUL budget airline AirAsia X will not hit the wall like other low-cost carriers, with ticket sales strong despite faltering economies and high fuel costs.

AirAsia X chief executive officer (CEO) Azran Osman Rani said while there was an overall "dampening in consumer demand for travel", the carrier's low fares meant it was unscathed by the downturn.

He said the carrier's operating costs are low compared to other airlines, and that it would not meet the fate of UK-Canadian carrier Zoom and Hong Kong-based Oasis, which have gone under in recent months.


"We are a low-fare carrier. There is a big demand for travel at the prices we offer," he said in a recent interview.

Aviation experts have expressed cautious optimism over the business model of AirAsia X, which has fares generally half those offered by full-service carriers.

Azran said the arrival of two brand-new, fuel-efficient A330-300s in October and December will further lower its operating costs.

"A lot of carriers used old planes. Some of the planes are 15 to 20 years old. Oasis and Zoom went down because they used old planes. With today's high fuel costs, it does not work anymore," he said.

AirAsia X has signed a deal with Airbus to buy a total of 25 of the A330-300 aircraft.

Azran said Airbus will deliver three A330-300s in 2009, and that it was fast-forwarding an aircraft originally scheduled to be handed over in 2011.

"We need the aircraft to cater for our strong passenger demand on existing routes and for our new routes," he said.

AirAsia X currently operates with just one A330-300, mounting four return flights a week between Kuala Lumpur and Australia's Gold Coast, and also to China's Hangzhou. - AFP

AirAsia flights a boost for Labuan


LABUAN: The soon-to-be launched new domestic route, Kota Kinabalu-Labuan, by AirAsia Bhd will help to boost economic activities on the island.

Consumers Association of Sabah and Labuan (CASH) president Datuk Patrick Sindu said consumers, especially those with businesses, had been facing difficulties travelling between Kota Kinabalu and Labuan due to limited flights by Malaysia Airlines.

“The move by the airline company should have been implemented long ago. Travellers have to use the ferry to travel between Labuan and Kota Kinabalu which takes about three hours,” he said. – Bernama

AirAsia adds flights for Hari Raya
Published: 2008/09/08


AIRASIA Bhd has announced additional flights to meet the demand for services during Hari Raya.

In a statement today, AirAsia said it is offering additional flights from Kuala Lumpur to Sandakan on September 27, 29, October 5 and Kuala Lumpur to Tawau on September 28, 30 and October 6.

There will also be additional flights from Kota Kinabalu to Penang on September 27, 28, from Kuala Lumpur to Yogyakarta on September 25, 26 and from Kuala Lumpur to Medan from September 27 until October 5.

AirAsia’s regional head of commercial Kathleen Tan said the airline would also introduce second frequency flights from Kuala Lumpur to Alor Star beginning September 26.



“With the high fuel price, we strongly believe that it is cheaper to fly on AirAsia as an alternative mode of transportation to ’balik kampung’ or even go for short breaks with friends during the holiday period,” she added.

For more information, the public can log on to www.airasia.com. — Bernama

Yes, finally twice daily flight to Alor Star. The early morning flight is really inconvenient.

Extra domestic flights in the pipeline


SUBANG JAYA: Extra domestic flights between Sept 29 and Oct 6 are in the pipeline to meet travel demand for Hari Raya Aidilfitri.

Malaysian Airlines (MAS) and AirAsia will have additional flights from Kuala Lumpur to cities like Sandakan, Kuching, Kuala Terengganu and Alor Star. MAS subsidiary Firefly is mounting three extra flights on its Subang-Kota Baru sector.

“We want to enable those celebrating Hari Raya to balik kampung to be with family and friends,” said MAS commercial director Datuk Rashid Khan.

For MAS, its 28 additional flights mean 8,064 seats in both directions.

“We will continue to monitor customer demand and will mount more flights if needed,” he added.

AirAsia regional head of commerce Kathleen Tan said with the high fuel price, AirAsia was providing a cheaper way to balik kampung or to go on a short holiday with family or friends.

AirAsia has also added flights to some international routes, namely, Kuala Lumpur-Yogyakarta and Kuala Lumpur-Medan.

For more information and to book online, log on to www.airasia.com, www.malaysiaairlines.com or www.fireflyz.com.my.

For phone enquiries call MAS at 1-300-88-3000 or Firefly at 03-785 4543.

AirAsia X to expand daily flight capacity to Gold Coast
Published: 2008/09/10


AirAsia X is running at more than 80 per cent load factor on its Gold Coast-KL route and that forward bookings continue to be exceptionally strong, says its CEO


AS a commitment to Gold Coast, AirAsia X will be increasing its daily flight capacity during the mid-December to mid-January peak season, chief executive officer Azran Osman Rani said today.

“We are thrilled with the progress of AirAsia X here in Australia,” he said in a statement.

Azran said the response to AirAsia X services to Gold Coast has been excellent since the airline was launched in November 2007.

He said AirAsia X is running at more than 80 per cent load factor on its Gold Coast-Kuala Lumpur route and that forward bookings continue to be exceptionally strong.



The carrier will also permanently expand its seat capacity by a further 20 per cent when it takes delivery of its new Airbus A330-300.

The low-cost airline announced its 100,000 passenger onboard in March this year and since then, AirAsia X has experienced a surge in bookings, taking the number of people travelling with AirAsia X to more than 200,000, which is a major accomplishment.

Azran said AirAsia X will operate a new direct service from Perth to Kuala Lumpur as of November 3 and from Melbourne to Kuala Lumpur from November 12.

Meanwhile, AirAsia X held its first offsite meeting at the Gold Coast, the first time an AirAsia X board meeting was held outside Malaysia.

“AirAsia X’s decision to hold its first offsite board meeting at the Gold Coast is a testimony of the company’s commitment to the Australian market,” Azran said.

A delegation of AirAsia X leaders arrived today in Gold Coast for the meeting. Azran was joined by AirAsia X’s board of directors.

“Our services have been received enthusiastically by the Gold Coast and travellers from around Australia who use the Gold Coast Airport as a launching pad to Asia. As such, it is only fitting we hold our meeting here,” he added. — Bernama

Yes, finally twice daily flight to Alor Star. The early morning flight is really inconvenient.

Is it only for hari raya or permanent??

Airasia Remains Asia's Best Budget Airline


KUALA LUMPUR, Sept 11 (Bernama) -- For the third year running, AirAsia Bhd was voted the Best Budget Airline in Asia in the recent SmartTravelAsia.com 2008 Best in Travel Poll, an annual poll that tabulates readers' perceptions and favourite travel brands.

Out of 10 budget airlines that made the cut, AirAsia garnered the highest percentage of votes at 30 percent.

The low cost carrier outpaced its nearest rival, Jetstar Asia which is at second place, with a remarkable margin of 12 percent of votes, it said in a statement here Thursday.

AirAsia has been voted tops in the Best Budget Airline in Asia category since it was first introduced in 2006.

"It is a great honour for us to receive this accolade, as it reflects on our commitment in providing guests with the best services. We strive hard to ensure that our guests derive utmost satisfaction when flying AirAsia," AirAsia Group chief executive officer, Datuk Seri Tony Fernandes said.

-- BERNAMA

AirAsia best budget airline in Asia again

Email us your feedback at fd@bizedge.com


KUALA LUMPUR: Budget carrier, AirAsia Bhd beat nine others to emerge as the best budget airline in Asia for the third consecutive year.

According to a recent annual poll conducted by SmartTravelAsia.com ‘2008 Best in Travel Poll”, AirAsia obtain the highest percentage of votes of 30% while Jetstar Asia was second best, with 12% votes.

The poll was tabulated based on readers’ perceptions and favourite travel brands. Votes are based on substantial hands-on travel experience, word-of-mouth, as well as an idea of the brand drawn from advertising and editorial exposure in the media.

AirAsia has been voted tops in the Best Budget Airline in Asia category since it was first introduced in 2006.

SmartTravelAsia.com said in its review that the poll was a broad measure of airlines' ability to deliver low prices, reliable schedules and decent service while route network and access was also crucial.

AirAsia group chief executive officer, Datuk Seri Tony Fernandes said: “It is a great honour for us to receive this accolade, as it reflects on our commitment in providing guests with the best services. We strive hard to ensure that our guests derive utmost satisfaction when flying AirAsia, and being chosen as the Best Budget Airline will only make us strive even harder to deliver better services.”

AirAsia provides not only low fares, but also the most extensive route network in Southeast Asia with over 105 routes. This is complemented by its affiliate airline AirAsia X that flies to Australia and Hangzhou in China.

Is it only for hari raya or permanent??
Permanent I guess. I checked in December 2008 and January 2009, AirAsia offers twice daily flight.

http://smarttravelasia.com/images/POLLBudgetAirlines.jpg
2008 Rank 2007 Rank
1. AirAsia 1
2. Jetstar Asia 2
3. Nok Air 3
4. Tiger Airways 5
5. Cebu Pacific 6
6. Virgin Blue 8
7. Air Deccan 7
8. SpiceJet 9
9. Viva Macau 10
10. Hong Kong Express

Best Budget Airlines
The emergence of Asia’s new and remarkably popular budget airlines required the introduction of a brand new category in 2006. Our 2008 list has grown to include newcomers and reflects some egregious exits – Oasis Hong Kong, was one closely-watched long-haul carrier that wound up at the liquidator’s door. For families and even, sometimes, executives in a jam, cheap flights have come in handy, gradually opening up more and more of Asia, from capital cities to remote holiday or small corporate meeting locations that might otherwise have remained firmly off the map.

The Best Budget Airline in Asia poll is a broad measure of the newer airlines' ability to deliver not just low prices and cheap tickets, but also reliable schedules, decent service - and the occasional smile. Route network and access play a major role.

Leading the no-frills airlines pack, and by a wide margin, is feisty AirAsia with 30 percent of the vote (its share was 22 percent in 2007). As the signature red-tail airline that defined budget flights in Asia, it clearly outstripped its nearest rival with a convincing margin of 12 percent. Ranked second is Jetstar Asia, which has won increasing support for efficient service, assigned seating, and reliable operations. It polled a strong 22.5 percent (up from just 6.97 percent in 2007). Ranked third best Asian budget airline was Thai Airways feeder carrier Nok Air with 8.4 percent. Nok Air has made huge strides within Thailand and has recently added select regional flights. Nok Air was placed third in 2007 too.

Singapore-based Tiger Airways ranked fourth with Cebu Pacific in fifth. The remaining Asian budget airlines in the Top Ten in descending order were, Virgin Blue, Air Deccan, SpiceJet, Viva Macau and Hong Kong Express. More on these emerging low cost airlines in our Small Airlines of Asia story.

No reduction in fuel surcharge


KUALA LUMPUR: AirAsia will consider reducing its fuel surcharge if world crude oil prices continue to drop.

Its commercial regional head Kathleen Tan said: “We will have to watch the situation. If fuel prices drop low enough, we will consider reviewing the fuel surcharge.”

She said this when asked if AirAsia would follow in the footsteps of Singapore Airlines, which reduced its fuel surcharge on Tuesday .

“We are not reducing it for the time being as we had only increased our fuel surcharge once, while Singapore Airlines increased theirs many times in recent months,” she said after AirAsia signed a Memorandum of Understanding (MoU) with the Malaysian Association of Tour and Travel Agents (Matta) yesterday to provide affordable travel for government servants across Asia.

The budget airline is hoping to sell more than 100,000 seats to civil servants by the end of the year which will translate into about RM50mil in revenue.

Since introducing the Government Fare Scheme in June through an MoU with the Bumiputra Travel and Tours Association of Malaysia (Bumitra Malaysia), she said more than 5,000 discounted tickets have been sold every month to civil servants.

Under the scheme, all government officials can get a 20% to 30% discount of the published fares on all AirAsia destinations on work-related trips.

Meanwhile, AirAsia has been voted the Best Budget Airline in Asia for the third year running. In a recent annual SmartTravelAsia.com 2008 “Best in Travel” poll, the airline garnered the highest percentage of votes among 10 budget airlines.

AirAsia group chief executive officer Datuk Tony Fernandes said it was a great honour to receive the accolade as it reflected the airline’s commitment to providing customers with the best services.

AirAsia targets half of govt air travel market
by Yong Min Wei
Email us your feedback at fd@bizedge.com


KUALA LUMPUR: AirAsia Bhd plans to capture half of the estimated RM500 million government air travel market in the next two to three years with the help of Malaysian Association of Tour and Travel Agents (Matta).

AirAsia executive vice-president (commercial) Kathleen Tan said the low-cost carrier would leverage on Matta’s 2,000 agents to promote air travel to government servants at an affordable price together with high flight frequencies for domestic and Asian routes.

She also said AirAsia expected government servants to take up some 100,000 seats to various destinations by year-end which would rake in about RM50 million revenue for the September to December period

“AirAsia and Matta will jointly promote the airline’s recently introduced ‘Government Fare Scheme’, which offers government servants between a 20% and 30% discount on our published fares,” she said at a press conference after the signing of a memorandum of understanding (MoU) between AirAsia and Matta.

The MoU, which was signed by AirAsia chairman Datuk Aziz Bakar and Matta president Ngiam Foon, would see the two working together to promote the scheme. Besides lower fares, the scheme also enables government servants to have Xpress boarding, check-in baggage of 15kg, and hot meals at no extra charge.

Aziz said the agreement would extend AirAsia’s reach further as well as make travel accessible for all. “As the people’s national airline, we are committed to supporting the government’s dedication to keep costs at a minimum,’’ he added.

Tan also said AirAsia would maintain its fuel surcharge rates for the rest of the year, adding that the low-cost carrier only increased the rates this year when crude oil hit US$140 (RM485.80) per barrel.

“Increasing fuel surcharges many times is like a drug. As a low-fare airline, the challenge for us is to get people flying,” she said. Tan added that AirAsia passengers could also enjoy savings for their travel as online check-in baggages and online booking for in-flight hot food items were given discounts.

Meanwhile, AirAsia has for the third year running been voted ‘Best Budget Airline in Asia’ in the recent SmartTravelAsia.com ‘2008 Best in Travel Poll’, which tabulates reader’s perceptions and favourite travel brands. A statement by AirAsia said it garnered the highest percentage of votes at 30% out of 10 budget airlines that made the cut, adding that it outpaced its nearest rival Jetstar Asia with a margin of 12% of votes.

AirAsia chief executive officer Datuk Seri Tony Fernandes said that receiving the accolade reflected the low-cost carrier’s commitment to providing passengers with the best services.

Wish they could start flights to Moscow ... cause now no direct flight from Malaysia to Moscow, and people really need it, we have to reach Malaysia via Singapore or BKK, hope soon any airliner will start these flights!

^^is there any demand? i heard very few business activities between russia-eastern europe with malaysia...

but looking forward to visit those nations..

Air Asia Inaugural flight KL - Manado

Taken from Manado Post (mdopost.com)
Wisatawan Mulai Ramai
Sep 13, 2008 at 08:27 AM
Penerbangan AirAsia Manado-Kuala Lumpur Mulai Beroperasi

MANADO- Buah atas rencana pelaksanaan even World Ocean Conference (WOC) 2009 di Kota Manado mulai dipetik. Terbukti, geliat pariwisata Sulut mulai ramai menyusul kemarin, ratusan turis mancanegara menginjakkan kaki di Manado.
Mereka turun dari perut maskapai penerbangan AirAsia yang resmi membuka jalur Manado - Kuala Lumpur yang dimulai 12 September.
Pesawat AirAsia dengan nomor registrasi 9M-AFQ landing di Bandara Sam Ratulangi sekitar pukul 11.05 Wita. Penerbangan perdana ini disambut Gubernur Sulut SH Sarundajang didampingi Muspida dan Country Director PT AirAsia Berhad Jafrie Arie.
Penyambutan diawali pengalungan selendang oleh Gubernur kepada semua awak pesawat yang dipimpin Kapten Adrian Jenkins. Saat berada di lobi, para penumpang dijemput dengan suguhan tarian Cakalele. Total penumpang pesawat yang berkapasitas 156 sheet pada kedatangan perdana ini kurang lebih 100 orang.
Air Asia jenis AK 1030 type Airbus 320 ini take off dari Kuala Lumpur, Malaysia pukul 06.40 pagi dan menempuh perjalanan sekitar 3 jam lebih. Kedatangan para turis karena tertarik informasi tentang objek wisata Sulut.
Koid Boon Sek, salah satu penumpang warga Malaysia mengaku telah beberapa kali datang ke Manado. Menurutnya, kehadiran penerbangan direct langsung Air Asia Kuala Lumpur-Manado sangat ditunggu. “Saya seorang instruktur diving yang telah beberapa kali membawa warga Malaysia ke Manado,” ujarnya dengan bahasa Indonesia tertatih.
Ia menambahkan, kedatangannya hari ini hanya selama lima hari. Katanya, ia membawa beberapa kawannya untuk diving di pulau Bunaken. “Dua minggu depan saya akan kembali lagi bersama sepuluh orang turis Malaysia,” tambahnya dibenarkan Zack salah satu turis yang datang bersamanya.
Kata Zack, ia merasakan kesan yang baik dengan kedatangannya yang baru pertama kali ini. “Suasana kota ini sangat menyejukkan, saya suka juga dengan warga di bandara yang murah senyum,” tambahnya.
Ia mengatakan, rencananya ia akan kembali lagi bersama keluarganya saat liburan. Sebab, suasana seperti di sini sangat cocok dengan kebutuhan liburan keluarganya. “Menarik, banyak yang bisa dipelajari oleh anak-anak saya. Terutama budaya dan keseniannya,” tegasnya.
Hal yang sama diungkapkan Theresa Wong. Baru pertama kali bertandang ke Bumi Nyiur Melambai, wanita cantik yang datang bersama suami dan seorang anak perempuannya tersebut terlihat kagum dengan penampilan penari Cakalele. “Seru tariannya, suami dan anak saya sagat menyukainya,” paparnya di samping suami dan anaknya yang terlihat serius menonton tarian.
Ia mengungkapkan, kedatangannya saat ini untuk berlibur. Lanjutnya, informasi yang diperoleh dari beberapa kawannya yang pernah ke sini, Manado sangat menyenangkan. “Yang paling saya tertarik adalah makanan Manado yang terkenal sampai ke Malaysia,” ujarnya dengan bahasa Inggris fasih.
Lanjutnya, keindahan wisata laut adalah yang paling sering didengarnya. “Selain informasi dari teman, saya juga pernah membuka internet dan melihat beberapa daerah wisata unggulan di Indonesia seperti Bali, Lombok termasuk Manado dan Bunaken,” tandasnya.
Menariknya, di antara penumpang, terdapat pasangan pengantin baru asal Kanada, Aran dan Krista. Keduanya baru pertama kali datang. Dan, Manado menjadi pilihan terkhir mereka berdua diantara beberapa pilihan seperti Singapura dan Bali. Keinginan untuk mengetahui wisata kuliner dan bahari membawa mereka ke sini.
Aran mengungkapkan, bulan madunya sangat berkesan karena mendatangi tempat yang belum pernah dikunjungi. “Beberapa kawan saya di Malaysia pernah ke sini, cerita mereka sangat menarik bagi saya,” ujarnya sambil menggandeng Krista, isterinya.
Ia menambahkan, pulau Lembeh adalah lokasi wisata yang sangat eksotis dan cocok untuk bulan madu. “Selain Bunaken, pulau Lembeh juga sering didengarnya saat ia berkunjung ke Lombok beberapa waktu lalu,” ungkapnya.
Tak hanya itu, wisata religi juga ikut menarik perhatiannya. Lanjutnya, kehidupan beragama daerah ini patut dicontohi. “Umat Kristen di daerah ini terkenal sangat taat dalam beribadah dan toleransinya tinggi,” katanya dibenarkan isterinya.
Ia memaparkan, kesan pertama saat di bandara terhadap kota ini membuatnya berkeinginan untuk bisa datang lagi. “Bukan hanya sekali tapi, kedua, ketiga dan seterusnya selalu ke sini,” ujar pria bule itu seraya berharap, bisa lebih banyak lagi penerbangan internasional yang direct langsung ke Manado. Sarannya, dengan promosi dan pelayanan yang baik mampu menjadikan kota ini melebihi Bali. “Potensi wisata yang ada harus dikembangkan, termasuk seni budaya,” katanya menunjuk para penari Cakalele.
Gubernur SH Sarundajang mengaku bangga mulai bergairahnya sektor pariwisata. Ini ditandai dengan masuknya Air Asia yang membuka jalur penerbangan langsung Kuala Lumpur – Manado. Katanya, dengan dibukanya penerbangan langsung dari Kuala Lumpur ini, telah menjadi babak baru untuk mengenalkan potensi pariwisata Sulut, dan terbukanya peluangan kerjasama ekonomi lainnya. Betapa tidak, jika sebelum Air Asia masuk, untuk mencapai Sulut, turis harus mengeluarkan duit yang banyak untuk ongkos transportasinya. “Air Asia sudah mempermudah turis masuk ke Sulut. Kami berterima kasih atas upaya Air Asia memilih Manado sebagai salah satu bandara tujuannya,” imbuh Gubernur, kemarin.
Dengan terbukanya jalur transportasi internasional dengan hadirnya Air Asia ke Manado, tentunya membuka peluang untuk daerah lain di sekitar Sulut, seperti Gorontalo, Maluku Utara, Maluku, dan Papua, yang memiliki destinasi wisata. “Bukan hanya Sulut, tapi daerah lain akan menikmati manfaatnya,” kata Sarundajang..(cw-01)

^^waaaa...ma kasih yea mas!!!

AirAsia offers 5,000 free seats for Hong Kong route
Published: 2008/09/16




AIRASIA is offering 5,000 free seats in conjunction with the launch of its direct daily flight between Hong Kong and Bangkok on its brand new Airbus 320.

In a statement today, the largest low cost carrier in Asia said the offer was available only online at AirAsia’s website within the booking period from tomorrow until Sept 21 for the travel period from Oct 26 until March 28, 2009.

“The launch of our direct daily flight between Hong Kong and Bangkok will work hand-in-hand with our existing connections, especially our Hong Kong to Kuala Lumpur route, and will further strengthen our position in Asean, China and Australia,” the regional head of commercial AirAsia, Kathleen Tan, said.

AirAsia has continued to buck up industry trends with its rapid expansion plans and has grown its regional network considerably in the past months offering leading low cost-service to meet the increased demand from business and leisure travellers alike.



“The Hong Kong - Bangkok route will provide increased access to Thailand for the huge tourism market in China,” she said. For more information log on to www.airasia.com. — Bernama

FYI KL - KK - Manado route previously operated by MH. Due to lack of promotion, the load factor was quite low, operation ceased in 2004. Today AK flies non stop KL - Manado thrice weekly.

AirAsia tawar diskaun 90%



AIRASIA menawarkan diskaun tambang murah sehingga 90 peratus atau serendah 90 sen bagi kesemua penerbangan ke destinasi Asia menerusi hab utamanya di Kuala Lumpur, Kota Kinabalu, Kuching, Johor, Thailand (Bangkok) dan Indonesia (Jakarta dan Bali).

Tawaran itu dibuka untuk tempahan bermula 15 hingga 28 September depan bagi perjalanan antara 6 Januari hingga 31 Julai tahun depan.

Dengan tawaran serendah 90 sen itu, penumpang berpeluang terbang dari Kuala Lumpur ke Singapura atau ke mana-mana destinasi dalam Semenanjung Malaysia, termasuk Langkawi, Pulau Pinang dan Kuala Terengganu.

AirAsia turut menyediakan promosi tambang serendah RM9 bagi perjalanan ke Kuching, Miri, Kota Kinabalu, Labuan atau Sibu.

Dalam kenyataan yang dikeluarkan di Kuala Lumpur semalam, AirAsia berkata, bagi mereka yang ingin melancong dan membeli-belah di Jakarta atau Bangkok serta menikmati keindahan pantai di Krabi dan Phuket, boleh menggunakan perkhidmatan penerbangan AirAsia pada tambang serendah RM9.

“Manakala, mereka yang ingin menjelajah ke Makassar, Manado, Yogyakarta, Surabaya dan Bandung berpeluang mendapat tambang serendah RM49.

“Destinasi lain seperti ke Hanoi, Ho Chi Minh, Siem Reap, Haikou, Guangzhou dan Guilin juga ditawarkan pada harga RM49,” katanya.

Sementara itu, laluan popular seperti Bali, Hong Kong dan Shenzhen pula di tawarkan pada harga RM90.

Selain itu, kempen promosi tambang murah itu turut membabitkan pengendali penerbangan tambang murah, AirAsia X di mana syarikat itu turut menawarkan tambang serendah RM199 bagi laluan ke Gold Coast, Perth dan Melbourne manakala Hangzhou pula serendah RM90.

AirAsia takes delivery of its 50th A320
Published: 2008/09/18

The the aircraft will initially be operated on the Jakarta to Batam, Padang, Balikpapan and Denpasar routes

AIRASIA has received its 50th new A320 aircraft from Airbus and it will be operated out of Jakarta by AirAsia Indonesia as part of the growing route network.

In a statement, Airbus said the A320s are steadily replacing AirAsia’s Boeing 737 fleet accross its network, now covering Malaysia, Indonesia and Thailand.

It said for AirAsia’s Indonesian operation, the aircraft would initially be operated on the Jakarta to Batam, Padang, Balikpapan and Denpasar routes.

Altogether, AirAsia has placed orders for 175 aircraft for use by airlines within the group, making it one of the largest customers in the world for Airbus’ best selling single aisle product line.

“We are also delighted to see this partnership between our two companies expand with the addition of a new A320 base in Jakarta,” said Airbus chief operating officer John Leahy. - Bernama

AirAsia aims to fly to Japan next year
Published: 2008/09/19




The carrier appears to be planning to set airfares for its Japan-bound flights at 50 to 60 per cent lower than those offered by major airlines


TOKYO: Visiting AirAsia chief executive officer Datuk Seri Tony Fernandes said yesterday the Kuala Lumpur-based discount airline intends to launch flight services to Japan in 2009, Jiji Press reported.

Fernandes told a press conference here that the Japanese market has enormous potential, adding that AirAsia hopes to help increase the number of Malaysian tourists to Japan.

The firm appears to be planning to set airfares for its Japan-bound flights at 50 to 60 per cent lower than those offered by major airlines.

To celebrate the launch of Japan flights, AirAsia plans to offer US25 one-way tickets for flights between Japan and Malaysia.



AirAsia is considering launching flights to Tokyo International Airport at Haneda and an airport now under construction in Ibaraki Prefecture, northeast of Tokyo.

The company also hopes to start services to such major Japanese cities as Sapporo, Nagoya, Osaka and Fukuoka in the future.

AirAsia is the leading low-cost airline in Southeast Asia. — Bernama

:banana::banana::banana::banana::banana:

Kuala Lumpur-Tiruchirapalli flight from November 1

:dance2: :dance2:




— FILE PHOTO: R.M. Rajarathinam

ALL SET: A view of the Tiruchi airport.

TIRUCHI: Air Asia, an international low cost carrier, will enter the Indian market with its first service to the country on the Kuala Lumpur-Tiruchi-Kuala Lumpur sector, scheduled for launch from November 1.

The airline had obtained the security clearance from Bureau of Civil Aviation Security and is awaiting clearance from the Directorate General of Civil Aviation for commencing operations.

A two-member team from the airline, led by Ahmad Ismail, Manager, Standards and New Stations, Air Asia, visited the airport on Thursday for finalisation of the operational and logistical details. They held separate discussions with S. Sreekumar, Airport Director, and T. H. Radhakrishnan, Station Manager, Air India, which will be the ground handling agency.

Speaking to The Hindu after inspecting the facilities at the new terminal building under construction at the airport, Mr. Ismail said the flights on the Kuala Lumpur-Tiruchi-Kuala Lumpur sector would be a daily service. The airline would deploy an all-economy class Airbus 320, with a passenger capacity of 180, on the route. The flight from Kuala Lumpur would arrive here at 8.55 a.m. and depart at 9.25 a.m. (Airports Authority of India officials at the Tiruchi Airport have already cleared the schedule, sources said). Mr. Ismail said the airline would look to connecting more Indian destinations after the launch of the Tiruchi service. Tiruchi, he said, offered a good potential and the airline would seek to tap the central and south Tamil Nadu market. Meanwhile, airport sources said the state-of-the-art new terminal building, being built at an investment of Rs.70 crore, would become operational by the end of this financial year. Airport sources said Silk Air has also evinced interest in launching services in the Tiruchi-Singapore sector.

AirAsia to launch flights to Japan
Published: 2008/09/20




TOKYO: AirAsia chief executive officer Datuk Seri Tony Fernandes said on Thursday the Kuala Lumpur-based discount airline intends to launch flight services to Japan in 2009, Jiji Press reported.


The firm appears to be planning to set airfares for its Japan-bound flights at levels 50 to 60 per cent lower than those offered by major airlines.


To celebrate the launch of Japan flights, AirAsia plans to offer US$25 one-way tickets for flights between Japan and Malaysia.


AirAsia is considering launching flights to Tokyo International Airport at Haneda and an airport now under construction in Ibaraki Prefecture, northeast of Tokyo. - Bernama

AirAsia to head for Japan next year


TOKYO: Visiting AirAsia chief executive officer Datuk Tony Fernandes said on Thursday that the Kuala Lumpur-based discount airline intends to launch flight services to Japan next year, Jiji Press reported.

Fernandes told a press conference here that the Japanese market had enormous potential, adding that AirAsia hoped to help increase the number of Malaysian tourists to Japan.

The firm appears to be planning to set airfares for its Japan-bound flights at half the price of those offered by major airlines.

To celebrate the launch of Japan flights, AirAsia plans to offer US$25 (RM87.50) one-way tickets for flights between Japan and Malaysia.

AirAsia is considering launching flights to the Tokyo International Airport at Haneda and an airport now under construction in the Ibaraki prefecture, north-east of Tokyo.

The company also hoped to start services to major Japanese cities such as Sapporo, Nagoya, Osaka and Fukuoka later. - Bernama

AirAsia X: Japan plans on track despite hurdles
Published: 2008/09/22



LONG-HAUL budget carrier AirAsia X said yesterday its plans to fly to Japan were on track despite hurdles, including high airport charges and strict visa rules.

The carrier hopes to launch flights to Tokyo and major cities, including Osaka and Kukuoka, chief executive Azran Osman Rani said.

"We are still optimistic and on track with our plans to fly to Japan next year, but it is subject to so many things being fulfilled," he said.

"We see a lot of potential and it is a market worth pursuing, but it depends on factors like a good airport deal or some progress on the visa rule," he said.



Azran said it was difficult for Malaysians to get a Japanese visa.

"They require air tickets as part of the documents needed to process the visa and our tickets are non-refundable, so it is a setback for us," he said.

AirAsia X was launched in January 2007 and is an affiliate of regional low-cost carrier AirAsia and Virgin Group. AirAsia and AirAsia X share common shareholders, including AirAsia founder and chief executive officer Datuk Seri Tony Fernandes.

British billionaire Sir Richard Branson's Virgin Group has taken a 20 per cent stake in the airline.

Azran said the airline was gearing up to fly to Britain early next year.

"We are looking forward to the Britain route which everyone is talking about," he said. - AFP

AirAsia X Awarded Worlds Best New Airline 2008


KUALA LUMPUR, Sept 26 (Bernama) -- AirAsia X, the low-cost, long-haul affiliate of AirAsia, has made Malaysia proud after being named the winner of the "Best Newcomer" Award at the prestigious 2008 Budgie World Low Cost Airline Awards held last night at the London Queen Elizabeth II Centre.

AirAsia X, whose shareholders include the Virgin Group, was commended for its ground-breaking new business model and excellence in launching its services across Asia Pacific.

AirAsia X beat British Airways subsidiary airline, Open Skies, as well as Jin Air and K-Rabi, to the "Best Newcomer" accolade.

It also received the highest number of nominations among all entries. In total, AirAsia Group was shortlisted in four categories, including "Best Low Cost Airline", "Best Low Cost Airline: Asia Pacific" and "CEO of the Year".

Since its inaugural flight to Australia's Gold Coast in November 2007, AirAsia X has announced daily flights to Hangzhou, China, Melbourne and Perth, with plans to launch services to London as early as next year.

At the ceremony to receive the award, Azran Osman-Rani, CEO AirAsia X, said: "It is a great honour for us to receive this award and be in the same peer group with other winners such as Southwest Airlines, EasyJet and Virgin Blue.

"The recognition of our pioneering model proves that Malaysian companies can succeed in the global marketplace. Were proud to keep the Jalur Gemilang flying high," he said in a statement from London to Bernama Friday.

Azran said despite tough market conditions in 2008, AirAsia X has provided its guests with lowest fares to long-haul destinations many have never had the opportunity to travel before, alongside an enhanced travel experience, including comfortable leather seats and a newly launched "5 star" menu.

"The result has been tremendous and we have already recorded load factors of over 300,000 passengers since inception," he said.

Present was Datuk Seri Tony Fernandes, AirAsia Group CEO and founder of AirAsia X. The Budgie World Low Cost Airline Awards recognises leaders, innovators and pioneers in the global low-cost aviation industry.

This years awards were judged by renowned industry consultants including John Hanlon, secretary-general of European Low Fare Airline Association, John Strickland, CEO of JLS Consulting, Jay Sorensen, CEO of IdeaWorks and Peter Harbison, Executive Director of Centre for Asia Pacific Aviation.

-- BERNAMA :banana::banana::banana::banana::banana:

AirAsia adds daily direct flights on KL-Singapore route
BERNAMA


KUALA LUMPUR, Fri:

Low-cost carrier AirAsia is adding four more daily direct flights to the Kuala Lumpur-Singapore-Kuala Lumpur route beginning tomorrow.

With these new frequencies, AirAsia will have six daily direct flights connecting the two major cities and hubs in the region now, the airline said in a statement today.

In conjunction with the new flights and celebration of the country’s 51 years of nationhood, AirAsia is giving away 51,000 free seats to its guests.

AirAsia is also waiving the fuel surcharge, so guests will only bear the airport tax and administration cost for the new flights which will start in December. The booking period is from Sept 26-Oct 3 and the travel period from Dec 1-July 31, 2009.

AirAsia Group chief executive officer, Datuk Seri Tony Fernandes, said these additional flights demonstrate the airline’s commitment to making air-travel convenient and affordable for everyone.

“In addition to that, we strongly believe that this will pave the way for more tourism, investments and that both countries will enjoy the mutual benefits of feeding the traffic between the hubs,” he added.

More AirAsia direct flights to Singapore from Dec 1
Published: 2008/09/27




AIRASIA Bhd will start flying six daily direct flights to Singapore from December 1.

The four extra daily flights were granted to AirAsia yesterday, after months of lobbying for more flights on the highly profitable route.

In May, AirAsia submitted an application to the Ministry of Transport to increase the number of frequencies to Singapore from two to six flights daily.

Thanking the government for its support, AirAsia chief executive officer Datuk Seri Tony Fernandes in a statement yesterday, said it hopes Malaysia Airports Holdings Bhd will assist them in building the world's biggest hub by providing the budget carrier with facilities which are viable for its business model.



He said the airline has been seeing demand of over 90 per cent load factor for the route since its inception last February.

"These additional flights, further demonstrate our commitment to making air travel convenient and affordable for everyone.

"In addition to that, we strongly believe that this will pave the way for more tourism, investments and that both countries will enjoy mutual benefits of feeding the traffic between the hubs," Fernandes said.

To celebrate, AirAsia is giving away 51,000 free seats and waiving the fuel surcharge for those seats. Passengers will have to pay only for airport tax and administration cost.

The offer is valid for the booking period from September 26 to October 3 2008 and for the travel period from December 1 2008 to July 31 2009, and is available only through online booking.

AirAsia unleashes its X-factor
By CECILIA KOK

http://biz.thestar.com.my/archives/2008/9/27/bizweek/bw_pg08airasia.jpg
Barely a year since the launch of Malaysia’s no frills long haul carrier, AirAsia X has firmly carved a seat for itself in the ever competitive and increasingly challenging market.

IN the city of Gold Coast in Australia, Kuala Lumpur has suddenly become the talk of the town. That is because a new budget airline has emerged in the Aussie city and painted it red with advertisements for “cheap” flights to KL.

AirAsia X Sdn Bhd’s aggressive marketing campaign has resulted in the smashing success of its Gold Coast-KL route that was launched last November. The fact that most of the airline’s Gold Coast passengers are first-timers to the Southeast Asian region is testament to the success of the route.

http://biz.thestar.com.my/archives/2008/9/27/bizweek/bw_01airasia.jpg
AirAsia group CEO Tony Fernandes and AirAsia X CEO Azran Osman-Rani.

At the same time, an increasing number of Malaysians are choosing Gold Coast as their favourite holiday destination, as evidenced by AirAsia X’s recent survey that shows 67% of its Malaysian passengers are first-timers to Gold Coast.

The Australian city is one of the two destinations to which AirAsia X flies currently from its hub at the low-cost carrier terminal (LCCT) in Sepang.

Hangzhou, China, was added to the airline’s stable early this year, and business for the route is fast picking up, according to AirAsia X chief executive officer Azran Osman-Rani.

“We attribute this to our pricing strategy that has enabled more people the affordability to travel long haul,” he explains.

Low-cost long-haul, as the business model for AirAsia X, is an extension of AirAsia Bhd’s success with its low-cost short-haul model.

While both airlines share the same brand, uniform and logo, they are maintained as separate entities, with AirAsia X focusing on destinations beyond a four-hour radius from LCCT and AirAsia focusing on the Asian region within a four-hour radius from its KL hub.

Separate entities that belong

AirAsia group founder Datuk Tony Fernandes says the move to keep the two airlines as separate entities is part of a strategy to ensure the best use of capital for the group and the continuous profitability of its Main Board-listed short-haul business.


Fernandes: We fly to where others dare not fly or have given up.
“Being an unproven model, the low-cost, long-haul business is rather risky. But it is a feasible business with tremendous growth opportunities, hence it qualifies for us to put our money on it,” Fernandes explains.

Fernandes and a group of individual investors, including Datuk Kamaruddin Meranun and Datuk Seri Kalimullah Hassan, collectively hold a 48% stake in AirAsia X.

The other prominent shareholders in AirAsia X include British billionaire Richard Branson’s Virgin Group, with a 16% stake; Japanese conglomerate ORIX Corp with 10%; and Bahrain-based Manara Infrastructure Fund with 10%. AirAsia holds the remaining 16% stake.

Spreading its wings

At the recent World Low Cost Airline Congress in London, AirAsia X was named the World’s Best New Airline for 2008.

Azran, the man anointed to take AirAsia X to greater heights, shares: “There is clear synergy between AirAsia and AirAsia X. The latter is positioned to bring in passengers from the world over to KL either for a stay or stopover to get connected to the rest of Asia via our sister carrier.”

With this vision in mind, both AirAsia X and AirAsia are continuously expanding their network.


Azran: Clear synergy between AirAsia and AirAsia X.
Come November, AirAsia X would have roped in two new Australian destinations, namely Perth and Melbourne.

On top of that, it plans to increase its frequency on the Gold Coast-KL route from the current four times a week to daily flights by the end of the year, while next year will see the launch of the highly anticipated direct flights to London and some major cities in Japan.

AirAsia X has also set its eyes on the South Korean, Northern Indian and the Middle Eastern markets.

According to Azran, the long-haul budget carrier has also received enquiries from some European and New Zealand airports for the possibility of launching connections with KL.

AirAsia, on the other hand, has on its list 106 new routes to be added to its current list of 60 over the next few years.

Acknowledging that the current market condition presents a challenging environment for many businesses, Fernandes, who is also the CEO of AirAsia, says: “Our group thrives on innovation in disruptive market by taking the opportunities to fly to where others dare not fly or have given up.”

Virgin Management Asia-Pacific CEO and Head of Aviation David Baxby is confident that AirAsia’s strategy in expanding its network could provide the group good prospects for the long term.

He says: “Over the years, AirAsia has shown success in being a visionary company that sees a new market and believes in its potential when others could not see it.”

Take its routes to Bandung in Indonesia, and Hainan in China. Many were sceptical when AirAsia started flying there. Today, Bandung and Hainan are among the company’s fastest-growing markets.

Going against the tide

Another contrarian approach by AirAsia group that has raised eyebrows is the group’s order of 200 new planes from Airbus in spite of the slowing global economy.

“Acquiring new planes is necessary to support the growth of our business on top of us innovating on new routes,” Azran explains.

“If we have not placed our orders earlier, we would not be able to get the planes in time to ply the new routes,” he adds.

The group’s new plane orders include 25 Airbus 330 for its long-haul routes, two of which will be delivered in the next two months in time for the launch of AirAsia X’s new destinations to Perth and Melbourne. Three of the units will be delivered next year and 15 over the subsequent three years.

The remaining new orders of 175 planes are for the Airbus A320 model, 60 of which will be delivered over the next five years, for the short-haul business.

Analysts are concerned with AirAsia’s expansionary mode in the midst of what they view as a shrinking market condition.


“Expanding where demand is falling is a major concern because there is a risk of its ticket sales not matching its capacity growth. Fact is, share prices move according to market expectations, and the current market expectation is rather negative,” says an analyst.

However, some analysts do acknowledge that AirAsia’s strategy has well positioned the group to emerge as one the strongest aviation players once the market condition improves.

“We defy logic. Our view is that people still want to travel in a down market, and they are most likely going to trade down in order to save more money,” Fernandes says.

“Even if our regular customers may cut down on their travel with us, we will gain some new customers who previously use premium flights,” he adds.

The migration of passengers who are price-sensitive has enabled AirAsia group to gain new ground. While the group’s focus has always been on the non-business, leisure sector, it has, of late, seen the increase of business travellers on its flights.

Azran opines that the current environment may hurt airlines in high-cost positions, but AirAsia group is set to benefit from the slowing economy because of its ability to offer comparatively lower fares.

AirAsia believes that most passengers do not have loyalty to any particular brand because their choices depend on ticket prices.

“Therefore, we believe demand for budget travel is here to stay,” Azran says, adding that AirAsia X is currently operating on a positive cash flow because it has already sold tickets for travelling period of up to the middle of next year.

Survival of the fittest

The first half of this year, during which crude oil prices were rising to record levels, was a turbulent period for the aviation industry as a whole. Several low-cost carriers (LCCs) have since ceased operations because of their inability to cope with the high fuel prices. This list includes Hong Kong’s Oasis, Indonesia’s Adam Air and Thailand’s One-Two-Go.

The closure of these airlines is boost to AirAsia’s market share and enhances its position as the ultimate leader in the region’s low-cost sector, says a local analyst.

Bahrain-based Perigon Advisory, which manages the Manara Infrastructure Fund, is confident that AirAsia group has the marketing know-how and X-factor to capitalise on such opportunities that arise from its competitors falling out of the game.

“The group has been able to take its business to successful level because it has a deep understanding and discipline in following its low-cost model,” says Perigon Advisory partner Michael Rodriguez.

AirAsia has managed to ride through the stormy period, with a net profit of RM9.42mil for the second-quarter (2Q) ended June 30, 2008.

The figure represents a 95% year-on-year (y-o-y) decline, mainly due to its high translation loss of RM77mil resulting from the weakened ringgit.

The 65% y-o-y increase in its unit fuel costs from US$86.20 per barrel to US$142.5 per barrel during the period had also eaten into AirAsia’s profit.

On a positive note, AirAsia actually recorded a rise in its passenger numbers by 20% y-o-y from 2.3 million to 2.8 million for 2Q08, despite its average fares rising 16% y-o-y from RM170 to RM198.

Its revenue for the period under review rose an impressive 41% y-o-y from RM432mil to RM608mil.

Nevertheless, the high fuel prices remain a major concern for most investors because fuel represents around 40% to 50% of AirAsia’s cost, and that element alone can determine whether the company makes or loses money, an analyst points out.

To this, Fernandes says: “We always find ways to adapt to the high-cost environment. We are continuously working on improving our efficiency, although we believe we are already operating at very efficient levels”.

He explains that the group’s employment of new planes which are more fuel-efficient for all its routes helps mitigate the effects of rising fuel costs, and its simple business model helps keep its non-fuel costs at minimum levels.

These are factors that have provided AirAsia group the edge over its major rivals, some of which are still using inefficient planes that are as old as 10 to 15 years and operate on a complicated system that requires high maintenance.

In addition, the sharing of resources, such as the online booking platform and cabin crew, between AirAsia and AirAsia X has enabled the group to operate on high economies of scale. This is more to the benefit of AirAsia X, which according to Azran, is on track to achieve profitability by next year.

Azran also reveals that the group has hedged 100% of its fuel at US$115 per barrel for up to the end of the year.

The stumbling block

Hence, come down market and high fuel cost, AirAsia group will go on with its expansionary plan. The only complaint that the group has is its overcrowded main hub at LCCT, which Fernandes claims as posing a real resistance to the group’s growth.

“We have built a world-class business that is growing rapidly, but the infrastructure at LCCT is not catching up,” Fernandes explains.

“Airport is an urgent issue to us because it is a crucial element for us to expand our connectivity. We cannot be successful if we do not have better airport infrastructure,” he adds.

The LCCT in Sepang is currently undergoing an extension to increase its annual passenger capacity from the present 10 million to 15 million.

Scheduled for completion in March next year, the extension is to cater to the growing numbers of budget carrier passengers.

But based on AirAsia group’s expected growth rate plus that of other low-cost carriers that stop at LCCT, the newly installed capacity will again be fully utilised within the next two years.

A new LCCT terminal, with an annual capacity of 30 million, has been proposed by Malaysia Airport Holdings Bhd.

Not knowing when exactly the new terminal will be ready, Azran says AirAsia group cannot afford to wait for the new LCCT terminal to be ready.

“We project that our passenger number would to reach 28 million by 2015. If our KL hub cannot cope with our passenger numbers, we may have to end up stopping at other regional airports, which will then be a loss to our country,” Azran explains.

Fernandes says, “the growth of the low-cost airline sector in Malaysia hinges on the support of MAHB, not only in terms of the infrastructure it provides, but also the way it imposes the airport charges.”

According to Fernandes, AirAsia group currently pays higher airport charges in Malaysia compared with the fees that it pays to its other hubs in foreign land, on top of having to endure the under-capacity of the LCCT in Sepang.

Fernandes sees the future of Malaysia’s aviation industry as underpinned by carriers that offer low fares. He points to national carrier Malaysia Airlines Bhd (MAS)’s “Everyday Low Fare” campaign to support his argument.

“It is an acknowledgment that low-cost model works and can bring in the numbers,” he says.

On whether the various promotional campaign and branding strategies launched by other airlines are a major threat to AirAsia group, Fernandes says: “We do not focus on what others do because we believe in our own strategy. And as far as we are concerned, our business has been growing at a healthy pace.”

But what both Fernandes and Azran seek is a level-playing field for AirAsia group. For instance, to be allowed to fly to where the national carrier flies.

Despite having its flight destinations and frequencies severely limited by the Malaysian government under a protectionism policy for MAS in the early days of its operations, AirAsia has over the years built an amazingly strong brand presence in many international markets.

Many observers have attributed AirAsia’s success to the leadership of Fernandes.

‘Culture eats strategy for lunch’

A great strategy will not be effective if there is no team work, says H. Dale Ichida, the managing director for aviation and alternative investments for ORIX Corp.

“AirAsia has the right corporate culture to grow. There is no bureaucracy and Fernandes is easily accessible to his staff members, hence enabling important discussions to take place on the spot. In a competitive environment, corporate bureaucracy can impede growth,” Ichida says.

Virgin group’s Baxby and Perigon Advisory’s Rodriguez also believe that the management philosophy practised by AirAsia group is the key element to its success.

“Fernandes has used his entrepreneurial skills, something which is intangible, to steer the company out of difficult times before, and we believe his management philosophy will continue to promote the growth of the group,” Rodriguez shares.

AirAsia to mount more flights to Viet city
Published: 2008/09/30




BUDGET carrier AirAsia Bhd will add weekly flights from its hubs in Kuala Lumpur and Bangkok to Ho Chi Minh City in response to strong demand.

From October 26 2008, it will increase its frequency between Kuala Lumpur and Ho Chi Minh City from seven to 11 flights weekly.

Bangkok flights will go daily from four to seven flights a week.

To celebrate the additional flights, AirAsia has introduced promotional fares from RM49 one way from Kuala Lumpur to Ho Chi Minh City, with bookings beginning on September 25 to October 10 2008 for travel period between October 26 to July 31 2009.



The fares exclude airport taxes, fuel surcharges and fees.

Fares from Bangkok to Ho Chi Minh City, meanwhile, will start from 699 baht one-way, with bookings from September 29 to October 10 2008, for travel from October 26 to March 28 2009.

"The demand for the existing routes made it clear of the need to introduce additional flights. Kuala Lumpur-Ho Chi Minh City was operating with an average load factor of 86 per cent since the launch of the route in April 2008.

"On the other hand, the Bangkok-Ho Chi Minh City route recorded average 90 per cent load factor," AirAsia commercial regional head Kathleen Tan said in a statement yesterday.

Since April, AirAsia has carried more than 30,000 passengers between Bangkok and Ho Chi Minh City, and more than 50,000 passengers from Kuala Lumpur to the Vietnamese city.

Apart from Ho Chi Minh City, AirAsia has also increased flights from Kuala Lumpur to Bintulu to 11 times weekly, Penang to six daily flights and Bali to five daily flights.

Passengers may book online for promotional fares from as low as RM6 to Penang, RM20 to Bintulu and RM99 to Denpasar from Kuala Lumpur for the additional flights beginning September 26 to October 5 2008 for travel period from October 5 2008 to July 31 2009.

The carrier has also introduced a route between Johor Baru and Denpasar, Bali, operating with three flights per week.

Fares for this new route start from RM49 beginning September 26 to October 5 2008 for travel period from October 5 2008 to March 28 2009.

More AirAsia flights to Ho Chi Minh City



KUALA LUMPUR: AirAsia has announced additional flights to Ho Chi Minh City from here and Bangkok.

The decision was in response to strong demand for air travel between Ho Chi Minh City and the Malaysian and Thai markets, AirAsia said.

Effective Oct 26, the frequency of flights from Kuala Lumpur will increase from seven to 11 weekly.

There will also be seven weekly flights from Bangkok to Ho Chi Minh City from the present four.

To celebrate the extra flights, AirAsia has introduced special fares.



It also announced extra flights from Kuala Lumpur to Bintulu (11 times weekly), Penang (six daily flights) and Bali (five daily flights).

It introduced a new destination, from Johor Baru to Bali, with three weekly flights.

For details, visit www.airasia.com or mobile.airasia. com. -- Bernama

AirAsia gets nod to fly to S’pore from KK, Kuching, Miri
By MUGUNTAN VANAR


KOTA KINABALU: The federal government has agreed for AirAsia to undertake direct flights from three major towns in Sabah and Sarawak to Singapore, Transport Minister Datuk Ong Tee Keat said.

He said officials from his ministry and their Singapore counterparts will meet later this month to discuss direct flights from Kota Kinabalu, Kuching and Miri to the island republic.

“Our negotiations would be based on reciprocity. We hope to finalise negotiations this month,” he told reporters Saturday after attending the Sabah MCA convention here.

He said the Transport Ministry had been given the green light by the Government to negotiate for the low-cost carrier to provide direct flights to Singapore from the three major cities in Sabah and Sarawak.

He also disclosed that his officials would be discussing increasing the frequency of the current daily two flights to Singapore during their meeting with their counterparts.

“We hope by December the additional flights to Singapore by AirAsia will be implemented,” Ong said, adding that the move was part of Asean’s roadmap towards liberalising aviation.

On issues pertaining to the services of Puspakom and the Road Transport Department, he said that he had issued a warning to privately-operated Puspakom to act against their staff who might be involved in corrupt practices or abuse of power.

He noted that certain Puspakom centres in the country had forced clients to buy highly-priced accessories like reflectors from vendors operating at the centres to get their vehicles' fitness passed.

“I have told Puspakom to stop such practices immediately as they are arm-twisting their clients and such a practice is unacceptable,” he said, adding that it was among various measures taken to tackle problems faced by the people at such centres.

He also said that he would be expediting effective e-services to help overcome long queues at their counters as well as fighting corruption.

Sarawak Tourism Minister to meet Tony Fernandes discuss reinstatement of flights
2008/10/04 Bernama

KUCHING:

Sarawak’s Tourism Minister, Datuk Michael Manyin, will meet AirAsia Bhd group chief executive officer, Datuk Tony Fernandes, to discuss the reinstatement of the Kuching-Bali and Kuching-Macau direct flights.

Manyin, who expected tough talks with Fernandez on Wednesday, said AirAsia decided to suspend the routes due to low passenger load.

“They have asked us to give an assurance that the passenger loads on the flights be between 60 and 70 percent if we want the routes to be reinstated.

“How can we give the assurance when we were given only two months to market the Kuching-Bali route, which was introduced in May this year and suspended in August,” he told reporters at the Hari Raya Open House of state Second Minister of Planning and Resource Management Datuk Seri Awang Tengah Awang Ali Hassan here today.

The Kuching-Macau flights will be suspended from Oct 26.
Manyin proposed that AirAsia stop flying directly back to Kuching and instead have one stop-over on the return flight for the two routes.

He said AirAsia could also use smaller aircraft for the return flights.

“The outbound flights do not pose problems as there are passengers.

However, the return flights from the two routes have low passenger loads,” he said. Meanwhile, Manyin said the target of four million tourist arrivals was unlikely to be achieved this year due to the current global economic turmoil.

“Now people may just decide to stay at home,” he said.

Deal to take AirAsia private could be worth RM1.25b
By Jeeva Arulampalam Published: 2008/10/06
BusinessTimes

http://www.btimes.com.my/Current_News/BTIMES/Monday/Frontpage/jasia05-2.xml/Article/Current_News/BTIMES/Images/btgraph10/air6.gif

This is not the best time for AirAsia to be taken private, says a research head, adding that being listed will help it secure financing for new planes

AIRASIA Bhd's major shareholders may have to pay some RM1.25 billion to take the budget carrier private, analysts say.

However, they believe this was not the best time for the carrier to be taken private, given present global economic challenges.

As at September 16 2008, AirAsia has some 2.4 billion shares out, of which 1.29 billion have been floated. AirAsia closed last Friday at RM1.23 per share, with a market capitalisation of RM2.92 billion.


A report over the weekend by a business weekly cited sources as saying that the carrier's major shareholders were contemplating privatisation as they believe the stock was undervalued.

AirAsia's major stakeholders are Tune Air Sdn Bhd with 31 per cent, followed by the Employees Provident Fund with 7.7 per cent.

Tune Air's shareholders are AirAsia group chief executive officer (CEO) Datuk Seri Tony Fernandes and deputy group CEO Datuk Kamarudin Meranun.

Talk of privatisation was ripe as AirAsia's share price has risen steadily since early last month, hitting a high of RM1.26 per share on September 29. However, the shares have lost 23.13 per cent of its market value since the beginning of the year.

While OSK Research Sdn Bhd acting research head Chris Eng is not surprised by the "possible" privatisation of AirAsia, he said a premium of 20 per cent should be given to minority shareholders if the major shareholders of AirAsia believe that the stock is currently undervalued.

However, analysts contacted by Business Times yesterday, including Eng, believe that AirAsia shares were not undervalued.

According to Bloomberg data, the average target price for AirAsia's share set by 17 out of 19 research houses was RM1.06 per share. Eng's target price was RM1.10 per share.

Eng also said this was not the best time for AirAsia to be taken private.

"AirAsia needs to raise funding for its new planes and thus a need for equity-financing. Having it listed would help secure this financing," said Eng.

Another senior analyst with a local brokerage concurs, saying it will require a huge amount of money to buy out an airline at a time of an impending global recession.

The International Air Transport Association had recently said that the global airline industry was to remain in the red at US$4.1 billion (RM14.10 billion) for 2009, as airlines deal with higher fuel costs.

When contacted yesterday, Fernandes declined to comment on the report while Kamarudin could not be reached.

However, AFP on Saturday quoted Kamarudin as saying that AirAsia has continuously been exploring various options at both shareholder and company level. "There is nothing to confirm at the moment," he said in response to the report.

Kamarudin said the management is focused on ensuring the carrier remains profitable during challenging times.

"We are the controlling shareholders. We still feel the company has a lot of potential. We are a fairly young carrier," he said.

AirAsia has room to expand and is concentrating on building an infrastructure to ensure growth and profit, he added.

More S'pore-M'sia air links
SINGAPORE and Malaysia have taken yet another step towards liberalising air links.
By Karamjit Kaur, Aviation Correspondent
The Straits Times, published:6/10/2008

From next month, low-cost carriers will be allowed to fly out of Singapore to three cities in East Malaysia - Kuching, Kota Kinabalu and Miri.

For a start, Singapore low-cost carriers will be allowed a total of seven flights a week on each of the three routes.

From March 1, this will be doubled to 14 dailies.

Malaysian low-cost carriers will have the same rights, Singapore's Transport Ministry said in a statement on Monday.

SilkAir and Malaysia Airlines are the only two carriers now that operate between Singapore and Kota Kinabalu and Kuching in East Malaysia. There are no direct flights from Singapore to Miri in Sarawak.

Low-cost carriers on both sides of the Causeway welcomed the move, adding that it will provide consumers with more options and bring fares down.

The liberalisation comes about 10 months after both governments lifted restrictions - but with a cap on the number of flights allowed - on the Singapore-Kuala Lumpur market.

In February, Singapore's Jetstar Asia and Tiger Airways, as well as Malaysia's AirAsia were given the all-clear to operate between the two cities.

Between them, the low-cost carriers operate four flights a a day.

All restrictions will be removed in December to allow an unlimited number of flights.

The liberalisation is part of a larger agenda to free the skies above Asean.

good that Airasia will be taken private. most of these short term investors are not interested in its potential, in fact they just want to take small profit for any good news on AirAsia. KLCI is too fragile for a developing and ambitious companies like AirAsia...

many of these small companies gain nothing form its listing, OGAWA WORLD for instance.

Pros and cons of AirAsia delisting
By Presenna Nambiar Published: 2008/10/07




ANALYSTS are taking a mixed view on whether budget carrier AirAsia Bhd will stand a better chance of securing financing if it were delisted from the stock market.

A business weekly reported on Saturday, citing unnamed sources, that AirAsia is considering delisting itself due to a sharp drop in its value. It has lost 23.13 per cent of its market value since the beginning of the year.

Kenanga Research Sdn Bhd said it would be easier for AirAsia to get financing if it remains a public listed entity.

"By staying as a listed entity, AirAsia would have better access to capital markets for financing of its aggressive fleet expansion programme," it wrote in a note yesterday.



The carrier will take delivery of 17 A320s next year and another 23 in 2010.

Kenanga Research estimates that it will cost AirAsia some RM2 billion to buy back the public's shares, based on its last closing price of RM1.23 per share.

OSK Research Sdn Bhd acting research head Chris Eng said the carrier may have to dig at least RM2.19 billion to take itself private, if major shareholders Tune Air Sdn Bhd and the Employees Provident Fund (EPF) work in concert, and a privatisation price of RM1.50 is offered.

"We believe that the privatisation could indeed be successful if investors can be found to take up stakes in the carrier should the exercise proceed," he said.

He said by securing investors, the carrier's major shareholders would not have a problem in getting short-term bridging loans to fund the privatisation.

"As to whom these investors may be, we believe EPF could be willing to increase its stake in AirAsia while financial institutions that have provided funding for airlines would also be possibilities," said Eng.

Meanwhile, an analyst from a local brokerage said taking the carrier private may be a good move given the increasing difficulty in raising money on the capital markets.

"By going private, AirAsia would be free to place out its shares to holders who are willing to wait for long term gain," he said, citing the delisting of Maxis Communications Bhd.

Major shareholder Binariang GSM Sdn Bhd had managed to secure a foreign buyer to pay US$3.05 billion (RM10.6 billion) for a 25 per cent stake in Maxis a month after successfully taking it private in June 2007.

For Standard & Poor's Equity Research aviation analyst Shukor Yusof, he believes that AirAsia is right to consider privatisation in the current global economic situation and high cost of borrowing.

"AirAsia would not be the only one thinking along these lines. Several airlines in the US have thought of delisting as well, to salvage their companies," he told Business Times yesterday.

Shukor said because of the credit crunch, irrespective of whether an airline is listed or not, the question will be how much an airline is willing to pay for the financing.

"AirAsia got listed as an avenue to provide for financing for its expansion plans ... now that the market is not delivering, looking at exiting the market will save the carrier a lot of hassle and money," Shukor said.

AirAsia's shares rose 1.62 per cent yesterday, to close at RM1.25 per share.

AirAsia to fly from Singapore to KK, Kuching and Miri


KOTA KINABALU: Low-cost carrier AirAsia has been given the green light to operate new routes between Singapore and three cities in Sabah and Sarawak.

Transport Minister Datuk Ong Tee Keat said the cities were Kota Kinabalu, Kuching and Miri.

“Detailed negotiations between my ministry and Singapore authorities will be finalised this month and we hope AirAsia can operate the routes as soon as possible. Definitely by this year,” he told reporters after attending the Sabah MCA convention here.

Ong said the negotiations would involve increasing AirAsia’s frequency between Kuala Lumpur and Singapore by December.

Currently, AirAsia operates the Kuala Lumpur-Singapore route twice daily.

Meanwhile, Ong quashed misconceptions that Malaysia was not practising the open sky policy.

“People seem to have a misconception on the open sky policy when it is actually in place,” he said.

“We have reached agreements with other countries to practise this policy in Sabah and Sarawak and our secondary airports,” he added.

On separate matter, Ong said he had directed the computerised vehicle test centre or Puspakom to put an immediate stop to operations at centres involved in graft.

“The feedback I get from transport operators is mostly of practices at certain Puspakom centres,” he said.

“What I have learnt is that certain centres denied commercial vehicles from being tested if the vehicle owners refused to purchase vehicle parts from suppliers suggested by the centres. This sort of arm-twisting is unacceptable,” he said. - Bernama

Sceptic rewarded with AirAsia's lifelong free flights
Published: 2008/10/08
BusinessTimes

IF YOU have been to one of Datuk Seri Tony Fernandes' talks, you probably would have heard about the reporter who dared to doubt that AirAsia Bhd would be a success.

In 2001, Utusan Malaysia assistant news editor Khairuddin Mohd Amin had asked Fernandes how long he planned to keep the company afloat.

An impertinent question to some, perhaps, but true to his nature Fernandes turned those words to his advantage, never failing to remark on the incident during the many ceremonies to celebrate AirAsia's success some seven years down the road.

Those words had also prompted Fernandes, in one of his first interviews as CEO of AirAsia in 2002, to say that Malaysians are the biggest sceptics and the only way to convince them is to deliver whatever had been promised.

Yesterday, in a surprise move during a ceremony to celebrate the retirement of its last Boeing in operations in Malaysia, Fernandes honoured the very same person who asked him the provocative question, with lifelong free flights on AirAsia.

^^damn! lucky guy...i can't be sceptical on AirAsia bcoz i believe on its future...

Haha....possibly, next time Malaysians can shout "Hawaii" for their travel, as if Airasia offer flight there, people can travel avoid having to travel to Japan, then change flight to Honolulu!


Source : http://www.thestar.com.my/news/story.asp?file=/2008/10/8/nation/2212467&sec=nation



AirAsia looks to US and African markets

SEPANG: Having made a successful foray into the European market via London, low-cost carrier AirAsia is now looking at the United States and Africa.

Group chief executive officer Datuk Seri Tony Fernandes told reporters he was particularly interested in Hawaii as another of the carrier’s long-haul destinations.

“I know many Malaysians want to go to Hawaii although we have better beaches here,” he said, quipping that he “wanted to surf before he got too fat”.

“We are going to Europe soon with AirAsia X so we want to expand next to the United States and South Africa. We want a strong presence in these three continents.”

Fernandes said he remained optimistic of the travel and low-cost airline industry despite the current world economic crisis brought on by the collapse of several banks in Europe and the US.

“AirAsia can expect growth next year with the opening up of new routes to Indonesia as well as the introduction of nine to 10 additional aircraft to our fleet,” he said.

“People will always travel. They may even switch from flying other airlines to AirAsia during the crisis,” he added.

However, Fernandes refused to comment on the purported deal by AirAsia to go private.

Earlier, Fernandes led AirAsia staff in bidding farewell to the last of the Boeing 737-300 aircraft in its fleet.

The carrier has switched entirely to the Airbus 320, which was expected to help the airline save through fuel efficiency.

The Boeing aircraft on its final flight from Kota Kinabalu landed at the Low-Cost Carrier Terminal here at 9.55am.

As part of the ceremony, local strongman M. Muniandy pulled the aircraft for 45.72 cm with his hair.

Tune Air mulls taking AirAsia private
By Presenna Nambiar Published: 2008/10/08



AIRASIA Bhd's major shareholder Tune Air Sdn Bhd said it may take the airline private at an indicative price of RM1.35 per share.

Tune Air told Bursa Malaysia in reply to a query yesterday that it is one of the options the company is developing to optimise and expand the operations of the airline.

The company, however, said that the price is subject to change, depending on the market conditions at the point of decision.

"It must be emphasised that this option is subject to the availability of financing on acceptable terms from financial institutions and other potential investors in these challenging times, as well as conducive market and industry conditions," Tune Air told Bursa Malaysia.



The announcement did not list out any of the airline's other options.

AirAsia bosses Datuk Seri Tony Fernandes and Datuk Kamaruddin Meranun have been dodging questions on the privatisation of AirAsia since news of it first broke.

At a ceremony to mark the retirement of the budget carrier's final Boeing 737-300 aircraft on its Malaysian operations, Fernandes said he is optimistic of the airline's prospects despite a worsening global economy. He said the worst has not hit yet and is in fact just starting.

"I predict a recession, which will happen in two years or so. The world's financial system needs a good cleaning ... economies are driven on real value, no make-believe value is going to last for long," Fernandes said in Sepang yesterday.

He maintained though that AirAsia is in a position to capitalise on the situation.

Meanwhile, Fernandes hinted of re- tiring soon as he reminisced about the airline's beginnings in a speech to his staff yesterday.

When questioned on it, he backtracked, saying that he was only referring to the fact that he will have to retire one day.

"Malaysia Airlines can't celebrate yet ... what I am trying to say is, when I go you will not see me sticking around as a consultant or anything like that," Fernandes said.

He also said he wants to close the Subang chapter, saying that the airline has outgrown Subang Airport. AirAsia had lobbied for the use of Subang but the government did not relent as it wanted to make KL International Airport a regional aviation hub.

Tune Air mulls taking AirAsia private


PETALING JAYA: Tune Air Sdn Bhd, the major shareholder in AirAsia Bhd, is mulling plans to privatise the low-cost carrier at an indicative price of about RM1.35 per share.

In a statement to Bursa Malaysia yesterday, AirAsia said Tune Air’s RM1.35 per share plan was subject to change depending on the market conditions at the point of decision.

It said Tune Air was continually exploring various options to optimise and expand its operations, especially during the current times due to the volatile fuel prices, business environment and the financial and capital markets.

“One option being considered by Tune Air is a potential privatisation exercise of AirAsia at an indicative price of about RM1.35 per AirAsia share, which is subject to change,” it said.

AirAsia closed two sen higher at RM1.27 yesterday.

Laluan tiga benua
Oleh Hayati Ibrahim
ya_t@hmetro.com.my

SELEPAS bertapak kukuh di rantau Asia, AirAsia Berhad (AirAsia), syarikat penerbangan tambang murah terbesar Asia, merancang meluaskan laluan ke tiga benua utama iaitu Eropah, Amerika Utara dan Afrika.

Ketua Pegawai Eksekutif Kumpulan AirAsia, Datuk Seri Tony Fernandes, berkata beliau memang menyimpan impian menyediakan laluan ke tiga benua itu dan juga Hawaii bagi memberi peluang kepada orang ramai melancong ke luar negara, sekali gus menjadikan AirAsia sebagai syarikat penerbangan tambang murah terkemuka dunia.

“Kami mempunyai tapak yang kukuh di rantau Asia dan bercadang meluaskan laluan penerbangan ke tiga benua utama termasuk Afrika dan Amerika Utara.

“Kami akan ke Eropah tidak lama lagi dengan AirAsia X dan juga bercadang ke Hawaii. Saya tak pernah ke Hawai dan ingin menyediakan perkhidmatan ini kepada penumpang. Saya mahu impian itu menjadi kenyataan,” katanya pada sidang media selepas majlis selamat tinggal kepada pesawat Boeing 737 di Terminal Penerbangan Tambang Murah (LCCT) di Sepang, semalam.

Hadir sama, Pengerusi AirAsia Bhd, Datuk Aziz Bakar.

Pesawat B737 digunakan AirAsia ketika memulakan operasi di negara ini enam tahun lalu, dan penamatan khidmat pesawat itu menyaksikan syarikat menggantikannya dengan Airbus 320.

Menurut Tony, pada tahun pertama operasi AirAsia, jumlah penumpang syarikat itu hanya 200,000 orang tetapi bilangannya meningkat drastik menjadi 22 juta penumpang tahun lalu.

“Kami tidak akan melupakan jasa Boeing dan penggantiannya dengan Airbus 320 menjadi langkah penting kepada kami untuk terus menjadi syarikat penerbangan tambang murah terkemuka dunia,” katanya.

Pada masa sama, Tony optimis AirAsia mencatatkan pertumbuhan memberangsangkan tahun depan yang disandarkan kepada peningkatan jumlah penumpang dan pengenalan laluan baru.

“Saya sangat yakin. Kami akan menambah 10 lagi pesawat baru, membuka laluan baru ke India November ini manakala operasi di Indonesia dan Thailand mencatatkan pertumbuhan menggalakkan.

“Malah, saya juga yakin kadar pertumbuhan penumpang juga akan meningkat dengan ketara tahun depan,” katanya.

Tune Air mulls taking AirAsia private
by Gan Yen Kuan 08 Oct 2008 THEEDGEDAILY

http://www.theedgedaily.com/cms/storage/images/com.tms.cms.image.Image_da6d35c7-cb73c03a-98350a00-bd5d065e/1/cover_inside.jpg

KUALA LUMPUR: AirAsia Bhd’s single largest shareholder Tune Air Sdn Bhd is considering taking the low-cost carrier private at an indicative price of about RM1.35 per share, but this remains an option and is subject to market conditions.

“This option is still being developed and it must be emphasised that this option is subject to the availability of financing on acceptable terms from financial institutions and other potential investors in these challenging times, as well as conducive market and industry conditions.

“An appropriate announcement will be made when Tune Air has formed a firm intention to proceed or not,” AirAsia said in a carefully-worded statement to Bursa Malaysia yesterday.

The announcement confirms a report by The Edge weekly this week on the possible privatisation of AirAsia, whose shares were considered undervalued.

According to the report, AirAsia group chief executive officer Datuk Seri Tony Fernandes and his associates were believed to have lined up investors from the region to take up stakes in the carrier with the view of holding them as a long-term investment, if the privatisation plan goes through.

Tune Air, which is controlled by Fernandes and AirAsia executive director and deputy CEO Datuk Kamarudin Meranun, held 729.46 million shares, or 30.73%, of AirAsia as of end-March. The other major shareholder is the Employees Provident Fund (EPF) with 7.82% of the carrier as of Sept 15.

Based on the indicative price of RM1.35 a share, Tune Air, together with Fernandes and Kamarudin, would have to fork out some RM2.2 billion to buy out the other shareholders, including the EPF.

AirAsia said Tune Air was continually exploring options on how best to optimise and expand the operations of the company, especially given the current volatility in fuel prices, the uncertain business environment and the turmoil in capital markets.

“One option being considered by Tune Air is a potential privatisation exercise of AirAsia at an indicative price of about RM1.35 per AirAsia share, which is subject to change depending on the market conditions at the point of decision,” the statement said.

The partnership of Fernandes and Kamarudin is well-etched in the history books of entrepreneurship in the region. Starting from a two-plane and debt-ridden operation, the duo built up AirAsia to become the largest low-cost carrier in Asia. Fernandes, especially, is well-known for using the Internet to foster the habit of online booking of air tickets, which was rare before AirAsia came into the picture.

However, since its listing, the stock has not been fully appreciated by investors who found its bulging debt that resulted from its rapid expansion, a cause for concern.

Yesterday, AirAsia closed two sen, or 1.6%, higher at RM1.27. It was one of the 10 most active stocks, with trading volume of 8.17 million shares.

Meanwhile, at an event in Sepang yesterday, AirAsia retired its last Boeing 737 in Malaysia, marking the completion of the phase-out exercise that replaced its entire fleet with the more fuel-efficient Airbus A320 aircraft.

The airline currently operates 50 Airbus A320 planes — 42 in Malaysia, seven in Thailand and one in Indonesia. Its associates Thai AirAsia Co Ltd and Indonesia AirAsia PT are still operating eight and 10 Boeing 737s, respectively.

Fernandes said Thai AirAsia would complete phasing out its Boeing 737s by the end of 2009, while Indonesia AirAsia would do so within two years.

AirAsia has a firm order for 175 Airbus A320 planes with an option for 50 more. This fleet expansion plan enables it to secure additional planes until 2014.

i want to go to CUBA! any chance to use Airasia travelling to central-South America? such an exotic continent need to be explored...:yes:

i want to go to CUBA! any chance to use Airasia travelling to central-South America? such an exotic continent need to be explored...:yes:

I hope they fly to Mexico, it is just too big to be missed!

^^ Been There done that for 3 years :lol:

Haha....possibly, next time Malaysians can shout "Hawaii" for their travel, as if Airasia offer flight there, people can travel avoid having to travel to Japan, then change flight to Honolulu!


Source : http://www.thestar.com.my/news/story.asp?file=/2008/10/8/nation/2212467&sec=nation

Welcome to San Francisco, Chicago, New York, Dallas, Atlanta, Houston, Seattle, LA, Miami, Boston

Is it going to replace MAS for the Singapore-Kuching, and Singapore-KK flight?

AirAsia To Launch Kuching-Singapore Direct Flight On Nov 1
October 08, 2008 18:24 PM

KUCHING, Oct 8 (Bernama) -- AirAsia, which has secured rights to fly from Kuching direct to Singapore, will launch its first flight on the Kuching-Singapore sector on Nov 1 as part of the efforts to enhance air connectivity to Sarawak.

Its group chief executive officer Datuk Seri Tony Fernandes said on Wednesday the low-cost carrier, which obtained the approval only yesterday, would open for sale 5,000 free seats beginning midnight today until Oct 19 this year, excluding surcharge and airport tax, on the new route.

"We fought for six years (for the further liberalisation of aviation industry, especially between Malaysia and Singapore) and have a very aggressive marketing campaign in Singapore," he told a media briefing here, which was also attended by Sarawak Urban Development and Tourism Minister Datuk Michael Manyin.

Fernandes said AirAsia would initially have one flight daily but would expand the frequencies in future once its proposed low-cost carrier terminal (LCCT) here was established.

It was also looking at the direct flight connectivity between Kota Kinabalu and Sibu, following numerous requests from the state's tourism industry and people to service that sector as well as reinstate the daily Kuching-Macau route within three months after the flight was scheduled to be suspended on Oct 26, he said.

Fernandes said when the airlines started its operations in Sarawak, it was committed to developing both the state's tourism and business industry by opening up new air links with other regional destinations but the lack of support from Malaysia Airports Holdings Bhd in granting certain concessions had caused it to review and rationalise some of its routes from here recently.

He said the Kuching-Bali direct flight was being stopped because the high charges and bureaucratic management had hampered its efforts to changing market conditions, especially when the airlines industry was experiencing a tough period due to the global fuel hike.

AirAsia, which flies a total of 182 flights weekly into and within Sarawak, has carried more than 3.6 million passengers in the state so far, with its market share of the Kuala Lumpur-Kuching sector growing to 68 percent at present from 33 percent in 2003.

Fernandes said almost one million passengers were recorded in the Sarawak sector so far this year, generating about RM718 million in revenue.

He projected that some five million passengers would have flown AirAsia into and out of the state by 2013.

-- BERNAMA

^^ Been There done that for 3 years :lol:

wow, how was mexico? you work or run a business there?

AirAsia ends flights to Macau

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JOHOR BARU: The state government said it was not informed by budget airline Air Asia that it was terminating its direct flights from Senai to Macau as of last Sunday.
"I cannot comment on the matter before finding out what prompted the move by Air- Asia," state Tourism, Domestic Trade and Consumer Affairs Committee chairman Hoo Seong Chang said.



Hoo said during his recent trip to China, airlines such as the Guangzhou-based China Southern Airlines (CSA), had expressed an interest in starting flights from several Chinese provinces to Senai.

"We are enthusiastic about this as Senai Airport is gearing up to become an international airport," he said.

3 believed keen to finance AirAsia buyout
Published: 2008/10/09




According to ECM Libra Investment Research, the three are Kuwait Finance House, Calyon and Virgin Group


KUWAIT Finance House (KFH), the US-based Calyon and Richard Branson's Virgin Group are three potential investors rumoured to be interested in providing the financing that budget carrier AirAsia Bhd needs to take itself private.

ECM Libra Investment Research said rumours abound that financial institutions KFH and Calyon are to provide funding for the carrier, which had said on Tuesday that major shareholder Tune Air Sdn Bhd was considering a plan to buy out the rest of the company at RM1.35 per share.

"There is a possibility that the Virgin Group could be another investor," ECM Libra said in a note yesterday.

The research house said that at RM1.35 per share, Tune Air, which holds 30.7 per cent of AirAsia, would still need to fork out some RM2.2 billion for the buyout.



ECM Libra valued the stock at RM1.90 per share.

Meanwhile, OSK Research Sdn Bhd is advising investors to sell AirAsia and take the profit, maintaining its view that the stock was overvalued.

At the RM1.27 sen per share it closed on Tuesday, there is a 13.4 per cent downside to the research house's fair value on AirAsia.

OSK Research acting research head Chris Eng also doubted that a bid to privatise AirAsia would go through if Tune Air proceeded with an offer of RM1.35 per share.

"At RM1.35, the indicative offer price would only be 6.3 per cent above AirAsia's closing price on Tuesday and, given the time taken to privatise a company, would not offer significant premium for minorities," he said.

"As such, if the indicative offer is not raised, we doubt that the privatisation exercise will succeed," Eng wrote in his note to investors.

He believes there is still time for profit-taking before AirAsia comes out with a higher revised offer price if, indeed, the privatisation does materialise.

AirAsia shares closed at RM1.26 yesterday, down 0.01 sen.

AirAsia to fly direct from Kuching to more places
By Desmond Davidson Published: 2008/10/09




AIRASIA will reinstate the Kuching-Macau route in two to three months, chief executive officer Datuk Seri Tony Fernandes said yesterday.

However, the low-cost carrier will continue to suspend the loss-making Kuching-Bali route, he said after a closed-door meeting with Sarawak Tourism Minister Datuk Michael Manyin in Kuching.

Manyin had called for the meeting as there had been concern that the suspension of direct flights to two such well-known destinations would be a setback in the state's drive for greater air connectivity.

Fernandes also announced yesterday that AirAsia will bear all the costs of building a low-cost carrier terminal (LCCT) at the newly-refurbished and expanded Kuching International Airport.



He said the carrier will begin the long sought-after Singapore-Kuching route on November 1.

It will increase the frequency of its Kuala Lumpur-Bintulu and Bintulu-Kuching flights and mount a direct Kota Kinabalu-Bintulu service.

A site had been earmarked for the LCCT in Kuching, but construction was held up because of a delay in getting the go-ahead from the Ministry of Finance and AirAsia's request for a site bigger than what was allocated.

To date, AirAsia has carried 3.6 million passengers to Sarawak. Its market share of the lucrative Kuala Lumpur-Kuching route has risen from 33 per cent in 2003 to 68 per cent at present.

AirAsia ends flights to Macau

JOHOR BARU: The state government said it was not informed by budget airline Air Asia that it was terminating its direct flights from Senai to Macau as of last Sunday.
"I cannot comment on the matter before finding out what prompted the move by Air- Asia," state Tourism, Domestic Trade and Consumer Affairs Committee chairman Hoo Seong Chang said.



really huh??? i tot macau a big market....maybe malaysian prefered genting kot....:nuts:

AirAsia and Firefly eyeing LCCT in Batang Padang
By SYLVIA LOOI


IPOH: Budget carriers AirAsia and Firefly are courting the Perak government to operate a low-cost carrier terminal at the Batang Padang district.

Mentri Besar Datuk Seri Mo**hammad Nizar Jamaluddin said discussion on the airport offering international flights started in May and to date two meetings on the matter had been held.

The state’s commitment is only to provide between 1,212ha and 1,616ha of land while the operator would foot the development cost of the airport, he said yesterday. The new airport would also handle cargo flights.

Speaking to reporters after receiving a courtesy call from Japanese ambassador Masahiko Yoire at his office, Nizar said that the plan, however, still hinged on clearance from the Transport Ministry and Malaysia Airport Holdings Bhd (MAHB).

The state, said Nizar, needed an international airport to attract foreign investors.

Nizar also added that the Sultan Azlan Shah Airport here would be used only to service local flights if the Batang Padang airport project took off.

On the courtesy call, Nizar said that the ambassador had expressed Japan’s confidence in the Pakatan Rakyat-led states.

He had received positive feedback from Perak-based Japanese companies of which two of them would expand their operations here.

The ambassador, said that Nizar, also discussed plans to package Perak’s tourism products to attract Japanese tourists.

They also discussed student exchange programmes between Fukuoka University and universities in Perak.

Free flights from Kuching to Singapore for 5,000


KUCHING: AirAsia is offering 5,000 free seats for its new Kuching-Singapore route which commences next month.

Tickets went on sale on the airline’s website yesterday at midnight with the free seats available for booking between now and Oct 19.

AirAsia chief executive Datuk Tony Fernandes said that the Kuching-Singapore route would give Sarawak a huge tourism boost.

“We’re currently doing a very aggressive marketing campaign in Singapore and our first flight will be on Nov 1.

“We will start with one flight a day and from March onwards we will increase the frequency,” he said at a media briefing here yesterday.

On the Kuching-Macau flight, which will be suspended on Oct 26 due to low passenger load, Fernandes said AirAsia would look into reinstating it in three months’ time.

He also announced that AirAsia would increase the frequency of its Kuala Lumpur-Bintulu route from seven to 11 flights a week and Kuching-Bintulu from seven to 14 flights weekly beginning Oct 26.

State Urban Development and Tourism Minister Datuk Michael Manyin said Sarawak would work together with Sabah to jointly promote the two states.

“For example, we will promote Mulu and Mount Kinabalu together as both have been listed as Unesco World Heritage Sites.

“We will also promote our indigenous festivals together, with plans for tourists to go to Sabah first for Kaamatan before continuing on to Sarawak for Gawai Dayak,” he said.

AirAsia to fly direct from Kuching to more places:banana:
By Desmond Davidson
Published: 2008/10/09

AIRASIA will reinstate the Kuching-Macau route in two to three months, chief executive officer Datuk Seri Tony Fernandes said yesterday.

However, the low-cost carrier will continue to suspend the loss-making Kuching-Bali route, he said after a closed-door meeting with Sarawak Tourism Minister Datuk Michael Manyin in Kuching.

Manyin had called for the meeting as there had been concern that the suspension of direct flights to two such well-known destinations would be a setback in the state's drive for greater air connectivity.

Fernandes also announced yesterday that AirAsia will bear all the costs of building a low-cost carrier terminal (LCCT) at the newly-refurbished and expanded Kuching International Airport.

He said the carrier will begin the long sought-after Singapore-Kuching route on November 1.

It will increase the frequency of its Kuala Lumpur-Bintulu and Bintulu-Kuching flights and mount a direct Kota Kinabalu-Bintulu service.

A site had been earmarked for the LCCT in Kuching, but construction was held up because of a delay in getting the go-ahead from the Ministry of Finance and AirAsia's request for a site bigger than what was allocated.

To date, AirAsia has carried 3.6 million passengers to Sarawak. Its market share of the lucrative Kuala Lumpur-Kuching route has risen from 33 per cent in 2003 to 68 per cent at present.

Source @ NST Business

AirAsia jadikan Sarawak hab pelancongan serantau



AIRASIA Bhd (AirAsia) meneruskan komitmennya untuk menjadikan Sarawak sebagai hab pusat serantau pelancongan selain bekerjasama rapat dengan kerajaan negeri dan agensi berkaitan terutama dalam menyediakan pelbagai peluang pekerjaan kepada penduduk tempatan.

Sarawak pasaran utama bagi syarikat pengendali penerbangan tambang murah itu dan pelbagai rancangan sudah dirancang untuk merancakkan aktiviti pelancongan, meningkatkan pendapatan dan membuka peluang pekerjaan di negeri berkenaan.

Ketua Pegawai Eksekutif Kumpulannya, Datuk Seri Tony Fernandes, berkata pihaknya juga berharap dapat meningkatkan terminal penerbangan tambang murah (LCCT) di negeri itu dengan sokongan kerajaan negeri.

Beliau berkata, kerajaan negeri Sarawak dan agensi berkaitan banyak memberi sokongan dalam beberapa tahun ini dan AirAsia berbangga dapat bekerjasama bagi membangunkan negeri itu sebagai destinasi pelancongan utama di negara ini.

“Malah, kami turut mendapat hak untuk terbang terus dari hab Kuching dan Kota Kinabalu ke Singapura sebagai menampung kepada peningkatan kekerapan penerbangan bagi sektor Kuala Lumpur - Singapura.


“Kami turut melihat untuk memperluas perkhidmatan bagi sektor Pulau Pinang - Singapura,” katanya dalam kenyataan yang dikeluarkan di Kuala Lumpur, semalam.

Menurutnya, pengenalan penerbangan terus antara laluan Sabah dan Sarawak ke Singapura akan merancakkan industri pelancongan dan ekonomi secara amnya.

3 believed keen to finance AirAsia buyout
Published: 2008/10/09




According to ECM Libra Investment Research, the three are Kuwait Finance House, Calyon and Virgin Group


KUWAIT Finance House (KFH), the US-based Calyon and Richard Branson's Virgin Group are three potential investors rumoured to be interested in providing the financing that budget carrier AirAsia Bhd needs to take itself private.

ECM Libra Investment Research said rumours abound that financial institutions KFH and Calyon are to provide funding for the carrier, which had said on Tuesday that major shareholder Tune Air Sdn Bhd was considering a plan to buy out the rest of the company at RM1.35 per share.

"There is a possibility that the Virgin Group could be another investor," ECM Libra said in a note yesterday.

The research house said that at RM1.35 per share, Tune Air, which holds 30.7 per cent of AirAsia, would still need to fork out some RM2.2 billion for the buyout.



ECM Libra valued the stock at RM1.90 per share.

Meanwhile, OSK Research Sdn Bhd is advising investors to sell AirAsia and take the profit, maintaining its view that the stock was overvalued.

At the RM1.27 sen per share it closed on Tuesday, there is a 13.4 per cent downside to the research house's fair value on AirAsia.

OSK Research acting research head Chris Eng also doubted that a bid to privatise AirAsia would go through if Tune Air proceeded with an offer of RM1.35 per share.

"At RM1.35, the indicative offer price would only be 6.3 per cent above AirAsia's closing price on Tuesday and, given the time taken to privatise a company, would not offer significant premium for minorities," he said.

"As such, if the indicative offer is not raised, we doubt that the privatisation exercise will succeed," Eng wrote in his note to investors.

He believes there is still time for profit-taking before AirAsia comes out with a higher revised offer price if, indeed, the privatisation does materialise.

AirAsia shares closed at RM1.26 yesterday, down 0.01 sen.

KFH not involved in funding AirAsia buyout
Published: 2008/10/10


KUWAIT Finance House (KFH) said yesterday that it was not involved in the proposed financing of budget carrier AirAsia Bhd's potential privatisation.

In response to a Business Times article, the Islamic bank also said that it was not part of the buy-out plan of Tune Air Sdn Bhd.

Business Times had reported yesterday that three potential investors - KFH, the US-based Calyon and Richard Branson's Virgin Group - were rumoured to be interested in providing the financing that AirAsia needs to take itself private based on an ECM Libra Investment Research report.

The report also said that financial institutions KFH and Calyon are to provide funding for the carrier, which had said on Tuesday that major shareholder Tune Air was considering a plan to buy out the rest of the company at RM1.35 per share.

Funding remains a concern for AirAsia
News analysis by B.K. Sidhu


Tune Air’s delisting proposal is subject to change


ALTHOUGH the delisting of AirAsia Bhd is on the cards, there are concerns about how the carrier’s major shareholder will fund the privatisation and the large aircraft deliveries that are coming soon.

It will cost Tune Air Sdn Bhd about RM2.2bil, or RM1.35 a share, to delist AirAsia. Well and good if it has lined up investors from the Middle East to Britain to help finance its mission but, until details are made transparent, funding will remain a concern.

Kuwait Finance House yesterday denied it was an interested party, saying that “being an Islamic bank we cannot fund a buyout of a company that has conventional debt.’’

Tune Air’s delisting plan is subject to change as it hinges on market conditions.

A submission was said to have been made to Bursa Malaysia, with the Securities Commission and CIMB Merchant Bankers Bhd being the advisers for the privatisation.

AirAsia is also expanding and taking delivery of more aircraft at a time when experts are warning that the “next 12-18 months will be extremely difficult for Asia Pacific carriers.”

The Association of Asia Pacific Airlines has predicted that some airlines will not survive the current crisis and it is extremely cautious about prospects of the airline industry in 2009. Since the oil spike, about 26 airlines - including some low-cost carriers in Asia - have gone bankrupt so far.

AirAsia has ordered 175 aircraft with 50 more under option - that puts the carrier as potentially one with the largest fleet in the region. Thus far, AirAsia has taken delivery of 45 A320s, with six more later this year, 14 next year and 24 in 2010. Funding has been arranged for 60 aircraft purchases until June 2009.

An analyst, who tracks this stock, said AirAsia needed about RM4bil to fund aircraft buys from July next year to December 2010. This should be a challenge for AirAsia amid the backdrop of an ongoing global credit crunch and air travel demand getting slower.

Another analyst said he believed banks might also be more reluctant to give AirAsia 100% financing for aircraft purchases due to the fact that they might not have as much funds at their disposal for lending and aircraft values were under pressure.

“AirAsia would have to bear higher interest costs on future loans to reflect rising credit spreads ... a weaker ringgit will make US dollar-denominated acquisitions more expensive than previously anticipated,’’ he wrote in his report.

With more debts the carrier’s net gearing ratio of 1.9 times presently will rise. As at end-June, it had debts of RM4.3bil and cash reserves of RM1.1bil.

With slower growth in air travel, analysts said that even though AirAsia was expanding rapidly, it might not be able to generate enough cash flow to pay its debts going forward.

http://biz.thestar.com.my/archives/2008/10/10/business/p2-airasiaplane.JPG
AirAsia has ordered 175 aircraft with more than 50 under option - that puts the carrier as potentially one wiith the largest fleet in the region.

All these factors will have an impact and may drag the share price down since market players rarely favour companies with large debts.

AirAsia also does not have a dividend policy to keep investors interested.

To the major shareholder it seems pointless at this juncture to keep the company listed only to see its share price battered. Privatising will take it off the radar screens but it does not resolve the funding issue either. When contacted, Datuk Seri Tony Fernandes, AirAsia group CEO and also a shareholder in Tune Air, declined to comment.

AirAsia shares closed one sen lower at RM1.25 yesterday.

AirAsia terbaik di Asia



KUALA LUMPUR: Syarikat penerbangan tambang murah, AirAsia, memenangi anugerah Syarikat Penerbangan Tambang Murah Terbaik Asia dari penerbit berita utama Asia Pasifik, TTG.

Syarikat penerbangan itu memenangi anugerah itu bagi kali kedua selepas pihak berkepentingan industri itu yang termasuk agen pengembaraan, pengendali perjalanan dan syarikat pengurusan destinasi memilihnya dalam pungutan pendapat selama tiga bulan oleh TTG.

Syarikat itu memenangi anugerah yang sama pada 2005.

Ketua Komersil Serantau AirAsia Kathleen Tan berkata AirAsia akan terus meningkatkan tahap perkhidmatannya dan berusaha dengan gigih untuk menyokong rakan industrinya bagi meningkatkan permintaan perjalanan.

“AirAsia sudah menerbangkan lebih 55 juta tetamu dan kami pasti, inovasi kami melalui Internet memudahkan tempahan, cepat dan selesa kepada pengembara jenerasi baru, yang sekaligus mempercepatkan permintaan perjalanan dan merubah lanskap pengembaraan,” katanya.

AirAsia wins Best Asian Low-Cost Carrier Award :banana::banana:

Email us your feedback at fd@bizedge.com


KUALA LUMPUR: Low-cost carrier, AirAsia, has won the Best Asian Low-Cost Carrier Award from Asia Pacific’s leading travel news publisher, TTG.

The airline won the award for the second time after industry stakeholders, including travel agents, tour operators and destination management companies, voted for it in a three-month poll conducted by TTG.

It won the same coveted award in 2005.

AirAsia regional head of commercial Kathleen Tan said AirAsia would continue to raise its bars of service level and work closely to support its industry partners to boost travel demand.

"AirAsia has flown over 55 million guests and we are certain our innovation through the internet has made travel booking seamless, fast and convenient to the new generation of travellers, thus accelerating travel demand and changing travel landscapes," she added. -- Bernama

AirAsia celebrates all A320 Malaysian fleet with low fare blitz
Published: 2008/10/13


AIRASIA is offering fares from as low as RM1 for international and domestic destinations through its latest campaign, “Absolute”.

The low fare campaign is being introduced in conjunction with AirAsia’s move to set a new benchmark for efficiency, reliability and quality with an all Airbus A320 fleet in its Malaysian operations, the airline said in a statement today.

AirAsia said the campaign covers all domestic and international destinations from six of its hubs, primarily in Malaysia (Kuala Lumpur, Kota Kinabalu, Johor), Thailand (Bangkok) and Indonesia (Jakarta and Bali).

AirAsia said some of the hottest international destinations include flying directly to/from Kuala Lumpur are Singapore, priced as low as RM1, Bangkok, Phuket, Krabi and Vientiane for only RM11 as well as the newly launched Guilin, Melbourne and Perth routes with fares ranging from RM101 to RM199.



The hot deals also include new routes and frequencies AirAsia launched recently such as to Hong Kong from Bangkok, from Pekan Baru to Singapore and the additional six daily flights from Kuala Lumpur to Singapore.

The booking period for the campaign is from October 11-27 for the travel period of February 9-July 31, 2009.

For domestic routes from Jakarta to Makassar and Yogyakarta, the booking period is from October 11-27 with the travel period from October 20-July 31,2009.

The campaign period includes flights from Kuala Lumpur to Makassar as well. — Bernama

KFH nafi sedia dana
Oleh Rozimi Hashim
rozimi@hmetro.com.my

KUWAIT Kuwait Finance House (KFH) menafikan khabar angin menyatakan syarikat kewangan dan perbankan itu bersama syarikat berpangkalan di Amerika Syarikat, Calyon, dan Kumpulan Virgin sebagai tiga pihak yang berpotensi membiayai proses penswastaan syarikat penerbangan tambang murah, AirAsia Bhd.

Dalam kenyataan di Kuala Lumpur kelmarin, Kuwait Finance House Malaysia Berhad (KFHMB) menyatakan pihaknya tidak terbabit sebagai pihak yang akan menyediakan pembiayaan untuk proses penswastaan AirAsia atau dalam rancangan pembelian oleh Tune Air Sdn Bhd.

Laporan akhbar minggu lalu menyatakan ECM Libra Investment Research mendakwa khabar angin menyatakan KFH dan Calyon akan menyediakan pembiayaan kepada AirAsia yang pemegang saham majoritinya, Tune Air Sdn Bhd, sedang menimbangkan rancangan membeli baki saham syarikat itu dengan harga RM1.35 sesaham.

ECM juga menyatakan ada kemungkinan syarikat penerbangan milik Richard Branson, Kumpulan Virgin, adalah pelabur ketiga.






Menurut ECM pada harga RM1.35 sesaham, Tune Air yang memegang 30.7 peratus ekuiti AirAsia, masih perlu membelanjakan RM12.2 bilion bagi pembelian itu.


Sebelum ini, Ketua Pegawai Eksekutif AirAsia, Tony Fernandes, enggan mengulas mengenai penswastaan syarikat penerbangan itu dan menyerahkan kepada pengurusan AirAsia dan Tune Air Sdn Bhd memberikan kenyataan.

AirAsia yang dianggap syarikat penerbangan tambang murah terbaik Asia dan memenangi anugerah Syarikat Penerbangan Tambang Murah Terbaik Asia dari penerbit berita utama Asia Pasifik, TTG, bagi kali kedua tahun ini.

Syarikat itu yang menerbangkan lebih 55 juta penumpang merancang meningkatkan lagi peluasan rangkaian destinasi penerbangannya melalui AirAsia X ke tiga benua baru, iaitu Eropah, Amerika Utara dan Afrika.

Menjelang hujung tahun ini, Air Asia X akan meneruskan peluasan rangkaian ke Australia, bermula dengan penerbangan ke Melbourne dan Perth pada November.

AirAsia X plans to start flying to London in March
By Adeline Paul Raj and Presenna Nambiar Published: 2008/10/14




AIRASIA X expects to start flying to London in March 2009, chief executive Azran Osman-Rani said.

The long-haul budget airline hopes to fly to London's Stansted Airport but is also discussing with two other possible low-cost airports there.

Stansted is preferred because of its self-connectivity, he said.

"We hope to launch our first flight to London in March. Bookings will open in November," he said on the sidelines of the Routes Leaders Forum 2008 in Kuala Lumpur yesterday.



The airline had originally intended to start the flights late this year.

Azran said however, that it had to be delayed as the airline was still finalising operational details.

AirAsia X, which currently flies to Australia's Gold Coast and Perth as well as Hangzhou in China, also expects to initiate flights to Melbourne next month.

Meanwhile, Azran said the airline's operations have so far escaped brunt of the global financial crisis.

"We haven't seen a drop in customer demand. This year, we don't expect a problem, but next year, it's anybody's guess," he remarked.

Later, speaking at a forum on environmental issues, he said one of the major issues affecting new airlines such as AirAsia X, is having to comply with the European Union's emissions trading scheme (ETS).

Under the new directive, all flights in, to or from the EU area will be included in the ETS from 2012.

In aviation the aim is to cap (the quantity of aviation allowances allocated each year to airlines) in 2012 at 97 per cent of their average level between 2004-2006.

Without a baseline (an average of 2004-2006) to work with a growing airline such as AirAsia X will be accorded with a special reserve of free allowances of up to a limit of one million allowances.

Should it exceed the carbon footprint it is allocated, AirAsia X will then have to purchase carbon credits to offset the additional increase.

"Despite having possibly the most fuel efficient and technologically advanced fleet of planes we will be at a disadvantage. And we are trying to expand...., the scheme is obviously anti-growth," Azran said.

Azran said Asian airlines are seen to be less environmentally correct because "we do not talk in environment language".

"We do talk a lot about being extremely efficient, which comes to about the same thing. We do not de-couple environment as one issue, we see it as part of operational efficiency," Azran said.

Low-cost carriers still see strong demand
By B.K. SIDHU


They say forward bookings are healthy

PETALING JAYA: The global financial crisis may be depressing demand for air travel but low cost carriers say they have yet to see a slowdown in forward bookings.

“Forward bookings are still strong and up to today we have not seen any drop in daily sales,” long haul low cost carrier AirAsia X chief executive Azran Osman Rani told StarBiz.

Azran said AirAsia X was in fact, expanding and would begin launching flights to London by March and selling the tickets by November this year.

Sister airline AirAsia Bhd is also doing well with its bookings.

http://biz.thestar.com.my/archives/2008/10/14/business/p3-azrani.JPG
Azran Osman Rani

AirAsia regional head of commercial Kathleen Tan said forward bookings were very healthy.

She said as companies cut back on their travel budgets, the next best alternative was low cost travel and AirAsia would benefit as it had the capacity to serve more people.

Singapore’s budget carrier Tiger Airways spokesman Matthew Hobbs reportedly said the airline’s bookings were up.

“Forward bookings show that people are still booking and they are still travelling but they are looking for the best price,” Hobbs said.

Even Europe’s biggest low cost carriers - EasyJet and Ryanair - say they will benefit from the economic storm.

“We’re clearly winning market share from our competitors,” said EasyJet’s chief executive Andy Harrison. “In a world where all you can see in the papers today is about the credit crunch and cutbacks, you can see that EasyJet is doing incredibly well.”

Ryanair said last week passenger numbers rose 20% in September while British Airways reported carrying 5.6% fewer travellers in the same month.

Global premium carriers have reported a slowdown in passenger traffic especially for their first and business classes and predicted difficult times ahead.

But Malaysia Airlines senior GM network and revenue management Datuk Bernard Francis said the carrier’s forward bookings were still steady and at encouraging levels.

He said the airline would promote low fares online and it regularly reviewed its fares versus its full service competitors to maintain fares at levels attractive to the customers.

Fare was only one component of its product, he said.

What mattered more was the total offering, which included seamless connectivity and interlining, travel with code share partners, more baggage weight allowance, frequent flyer programs and airport lounges to influence the customer to fly with them.

Cathay Pacific recently said it was hard hit by the crisis and registered a significant drop in the number of first and business class travellers.

British Airways has warned of a drop in passenger demand for its most lucrative sector, the premium class market, and even Emirates, a premier carrier, has witnessed weaker demand.

So far 28 airlines have gone bankrupt, and more are expected to fail.

Demand for premium travel is expected to continue to fall as companies hurt by the credit crisis trim travel budgets.

Crude oil prices have fallen by 47% since its July 11 peak of US$147.27but air travellers have yet to see a correlating drop in air fares from the premium carriers.

The only respite is a drop in fuel surcharge by some airlines.

Premium carriers have cut routes and frequencies but they would onlycut fares if they were desperate for business, an analyst said.

AirAsia tawar tiket RM1



AIRASIA meneruskan kempen tambang murahnya apabila menawarkan tiket penerbangan serendah RM1 sehingga RM199 bagi semua operasi laluannya di Malaysia dan serantau sempena ketibaan pesawat terbarunya, Airbus A320.

Kempen itu ditawarkan bagi tempoh tempahan antara 11 Oktober lalu hingga 27 Oktober ini bagi penerbangan antara 9 Februari hingga 31 Julai tahun depan menerusi enam hab penerbangan utamanya iaitu Kuala Lumpur, Kota Kinabalu, Johor, Thailand (Bangkok) dan Indonesia (Jakarta dan Bali).

Ketua Komersial Serantaunya, Kathleen Tan (gambar), berkata sebagai syarikat penerbangan tambang murah yang paling cepat berkembang, AirAsia sentiasa menawarkan peluang kepada penumpang mendapatkan tambang yang kompetitif.

Beliau berkata, kempen kali ini menggabungkan tambang penerbangan yang murah dan destinasi yang menarik kepada penumpang.


“Antara destinasi popular yang termasuk dalam kempen ini adalah penerbangan terus AirAsia dari Kuala Lumpur ke Singapura serendah RM1 manakala, bagi perjalanan ke Bangkok, Phuket, Krabi, Vientiane pula bermula RM11.


“Selain itu, destinasi terbaru kami ke Guilin, Melbourne dan Perth pula ditawarkan bermula RM101 hingga RM199,” katanya dalam kenyataan yang dikeluarkan di Kuala Lumpur, semalam.

AirAsia X prefers Stansted Airport due to connectivity

Email us your feedback at fd@bizedge.com


KUALA LUMPUR: Malaysia’s premier long-haul, low-cost carrier, AirAsia X, is starting its flights to London next March and has stated a preference for using Stansted Airport due to good connectivity.

Its chief executive officer Azran Osman-Rani said yesterday that the airline was, however, still finalising operational details for the inaugural flight.

“We hope to announce this year the start of sales for the flight to London,” he told reporters on the sidelines of the 14th World Route Development Forum (Routes KL 2008) here.

Stansted Airport is located 56km north-east of London.

Azran also said that the global economic uncertainity had in no way affected AirAsia X’s business operations and in fact, it had registered a higher customer demand.

“Operationally, things are going well,” he added, while indicating that the airline did not anticipate any problem in securing financing for its new fleet of aircraft ordered.

He also said that the higher oil prices had not affected AirAsia X as much as others, as the new aircraft were fuel efficient.

He disclosed that AirAsia X would pick up the first of its 25 units of wide-bodied A330 aircraft by the end of the month and receive another by the year’s end. Three more aircraft would be delivered next year.

AirAsia X, which began operations in November 2007, currently flies to Australia’s Gold Coast and Perth as well as Hangzhou in China.

The airline has stated it would launch flights to Melbourne next month. — Bernama

AirAsia may stump critics by going private
By Doreen Leong
Email us your feedback at fd@bizedge.com


When news of AirAsia Bhd's privatisation surfaced, its shares saw active trading, although many were sceptical about whether the deal would go through. Even now, sceptics don't think AirAsia will be able to rope in buyers with a global financial meltdown looming.
Similarly, when AirAsia first started out, not many gave the budget carrier much chance of surviving, let alone growing to what it is today. This time, sceptics find it hard to believe AirAsia co-founder Datuk Seri Tony Fernandes has managed to convince investors to take up stakes in the company post-privatisation, if it materialises. But Fernandes may indeed have the last laugh. This is because it is likely that there are buyers who believe in AirAsia's model and are willing to pay a premium for the company despite the generally negative perception about it.
While the adverse sentiment about the company stems from various issues such as its accounting treatment and hedging policy, as well as its contrarian approach of coping with high fuel costs and slowing global traffic demand, early investors would have been pleased to see the appreciation in their investments. From its initial public offering (IPO) price of RM1.40, AirAsia's stock has appreciated 39.3%, reaching its high of RM1.95 on Jan 10, 2005. The counter went even higher to RM2.11 on May 7, 2007.
In terms of financial performance, AirAsia has also registered commendable growth. For its FY2004 ended June 30, its net profit was RM49 million. This increased to RM498 million in FY2007. But a point to note is that AirAsia adopted a different accounting policy with regards to deferred taxation in FY2006, which boosted its net profit.
AirAsia's foreign investors — IDB Infrastructure Fund, Crescent Air Asia Investments Ltd and Deucalion Capital II Ltd — acquired a 26% stake during its IPO.
Bahrain-based IDB bought a 10% stake, while Saudi Arabian company Crescent acquired 9% and Germany-based Deucalion Capital, 7%. But soon after the moratorium period of a year following the IPO, they reduced or completely disposed of their stakes. However, some of these stakes were taken up by T Rowe Price Associates Inc in FY2006.

Best way out for AirAsia
Suffice to say, news of AirAsia's privatisation did not come as a surprise. Many believe this is the best way out for the budget carrier in the face of the current challenging operating environment and global financial meltdown. This is because the airline may face difficulties in securing funding for its aircraft acquisitions given the current credit crunch.
That said, AirAsia's major shareholder, Tune Air Sdn Bhd, in explaining its rationale for considering a privatisation exercise, says it is looking at how to optimise and expand its operations given the volatility of fuel prices and market turmoil.
Tune Air, which holds 30.7% in AirAsia, is controlled by Fernandes and Datuk Kamarudin Meranun. The Employees Provident Fund (EPF) holds 7.7%.
AirAsia has huge commitments as it has a firm order of 175 Airbus A320 planes up to 2014. It is taking delivery of 23 and 19 A320s in 2008 and 2009 respectively.
"The credit market is so tight right now that it may be hard to get funding. I believe the privatisation of AirAsia will happen eventually," says a foreign research house analyst.
"As a public entity, AirAsia could tap the equity markets for funding but the perceived value of the company is affected mostly by the tough operating environment and its accounting policy," he adds. The alternative, turning to the debt market, is also not a viable option given AirAsia's high gearing level.
Analysts' concerns have always centred on the health of AirAsia's balance sheet. They are of the opinion that the airline, which has a net debt of RM3.5 billion, may find it tough to secure financing for its expansion plans during this period of turmoil.
"AirAsia's margins, which are already low, are taking a hit as crude oil continues to climb. Banks will get more cautious as AirAsia has little margin for error," says an analyst.
According to research reports, AirAsia also needs to pay a significant amount to meet its aircraft purchases and its operational cash flow may not match its obligations.
The airline could opt for a sale and lease back for its existing planes but that will probably cause a dent in its profit and loss account. This is because AirAsia recognises its deferred tax as income on the simple basis that it will not have to pay taxes given its huge tax credits obtained from its plane acquisitions.
If AirAsia sells its planes and leases them back, it will no longer enjoy the tax credits and its earnings may be affected.
Two years ago, AirAsia's accounting policy on the treatment of deferred taxation attracted negative reactions from the investing community, deeming the accounting treatment as inappropriate.
FRS112 essentially does not allow companies to recognise unutilised investment tax allowances as deductible timing differences, even though this is permissible under the International Financial Reporting Standards (IFRS). As a result, AirAsia will have to provide for deferred taxes on the portion of income that would otherwise have been offset against the investment allowances, and on which no actual cash tax is payable.
But AirAsia obtained the government's green light to treat deferred taxation as an asset in its books. As at June 30, 2008, AirAsia's deferred tax asset stood at RM588.43 million.
Analysts reckon that with capital and investment allowances likely to come to RM18 billion in all, the company will not have to pay cash taxes for decades.
Despite the accounting-related issues surrounding the company, investors are not writing off the company. Perhaps as competition in the aviation industry intensifies and the operating environment proves to be tough, privatisation is the answer for AirAsia to stave off intense scrutiny on its operations and books.

AirAsia tight-lipped on privatisation
Published: 2008/10/18

BUDGET airline, AirAsia Bhd, remains tight-lipped on its privatisation plan details.

“It (privatisation) is in the process. We are working on it, we are looking at the options,” said its chairman Datuk Aziz Bakar, declining to reveal the reasons as to why AirAsia is being taken private.

A lot of factors were taken into account before the decision was made to privatise the low-cost carrier, including the current volatile financial market, he said when met at Sime Darbys Hari Raya open house.

“Hence, we can’t pin down the timeframe (by when it will be done),” Aziz said.

Asked whether AirAsia will be listed on other bourses after privatisation, he said: “We have not gone that far yet.”

Early this month, AirAsias major shareholder, Tune Air Sdn Bhd, said it may take the airline private at an indicative price of RM1.35 per share.

Tune Air told Bursa Malaysia in reply to a query on Thursday it was one of the options the company was developing to optimise and expand the airline’s operations.

The company, however, said the price was subject to change, depending on the market conditions at the point of decision.

“It must be emphasised that this option is subject to availability of financing on acceptable terms from financial institutions and other potential investors in these challenging times as well as conducive market and industry conditions,” Tune Air told Bursa Malaysia. — Bernama

AirAsia mulls further cut in fuel surcharge
Published: 2008/10/18

AIRASIA may cut its fuel surcharge further if there is some stability in the slide of oil price and the ringgit movement, its chief executive officer Datuk Seri Tony Fernandes says.

"I think it (surcharge cut) is possible. We are working on it. We will announce (the decision) within the next few weeks," he told reporters on the sidelines of the Regional Eisenhower Fellowships Conference in Kuala Lumpur yesterday.

By mid-afternoon yesterday in Europe, light sweet crude for November delivery was US$70.68 (RM249.50) a barrel in electronic trading on the New York Mercantile Exchange.

AirAsia's fuel surcharge is based on crude oil price at US$80 (RM282.40) a barrel.

On talk of plans to take the airline private, he declined comment.

Fernandes, who was one of the speakers at the conference yesterday, talked about how entrepreneurs, particularly small- and medium-scale enterprises, could take advantage of the current financial situation.

"There is always a silver lining in every crisis," he said, adding that bigger companies tend to avoid risks during such times in favour of protective measures.

"It is not all gloomy. There's a lot of business out there, and a lot of opportunities, especially in Southeast Asia." - Bernama

AirAsia CE - upside capped
By ALAN VOON


AIRASIA-CE is one of very few warrants that have been resilient to the slump in equities recently due to the relative out-performance of its mother share on news that the company may be taken private.

The company had announced that its major shareholder Tune Air Sdn Bhd may consider a privatisation exercise at an indicative price of RM1.35.

Despite the relative strength in the mother share, AirAsia-CE remained thinly traded as investors’ appetite for warrants remain, understandably, weak.

At the time of writing, AirAsia closed at RM1.21 while the warrant was last traded at 15 sen.

AirAsia needs no introduction as the region’s leading low cost carrier.

The company reported a drastic drop in net profit in the second quarter of 2008. From a net profit of RM185mil the corresponding period a year ago, Air Asia suffered a 95% drop in net profit in the second quarter of 2008 to RM9.4mil.

This was achieved in spite of a 41% increase in turnover to RM608mil.

The company attributed the drop in profit to the depreciation of ringgit resulting in translation loss of RM77mil.

Core operating profit of the company actually improved 2% to almost RM30mil.

For the first half of 2008, AirAsia recorded a net profit of RM170.7mil - still some 37% below the net profit of RM272.3mil achieved in the first half of 2007.

Despite that, AirAsia indicated in its quarterly report that the price of jet fuel has come off the highs recorded in the early part of the third quarter.

The impact of lower jet fuel prices and the continued strong demand for its services should augur well for the company in the rest of the financial year.

Net asset per share of AirAsia as of end June 2008 was 96 sen. At the last traded price of 15 sen, AirAsia-CE is now trading at an implied volatility of 45.8%, much higher than the company’s short-term historical volatility of 23.6%.

The price of AirAsia mother share is considered relatively stable compared to the free fall of other blue chips shares on Bursa Malaysia, largely on the back of the possible privatisation plan.

This made the price of AirAsia-CE at implied volatility of 45.8% expensive according to warrants pricing model.

Although its premium of 11.6% is not considered high from a traditional break-even analysis, this warrant may not be attractive with the privatisation plan looming over the horizon.

AirAsia-CE has a gearing of 4.0x. After multiplying gearing with the delta value of 0.73, the effective gearing of the warrant was calculated to be at 2.9x.

Effective gearing gives a more accurate measure of actual leverage provided by the warrant.

In AirAsia-CE case, an investor investing in the warrant can expect it to outperform the underlying share by 2.9x when the underlying share goes up.

The company has announced that the indicative privatisation offer price could be about RM1.35. The potential upside of AirAsia-CE is nil if an offer is indeed made at that price. The intrinsic value of AirAsia-CE is worth 15 sen based on the indicative privatization price after adjusting for the exercise ratio.

When a general offer is made, time value of the warrant will be destroyed.

As the stock market is still vulnerable to sharp falls, punting on call warrants is a very dangerous act.


Alan Voon, a warrants specialist, can be reached at alan@warrantscapital.com

Airasia X Set To Take Delivery Of New Airbus A330


KUALA LUMPUR, Oct 21 (Bernama) --AirAsia X, the low-cost long-haul affiliate of AirAsia, is set to take delivery of the first brand new Airbus A330, which is expected to reduce the airlines fuel consumption and maintenance costs, its Chief Executive Officer Azran Osman-Rani says.

The handing over ceremony in Toulouse, France, the aircraft manufacturer's headquarters next Friday (Oct 31), comes more than three weeks after AirAsia bade farewell to the final Boeing 737-300 aircraft on its Malaysian operations. The low-cost short-haul airline, has now switched to Airbus A320 fleet, which is expected to help the airline save through fuel efficiency.

"The new A330 will enable AirAsia X to dramatically reduce operation costs. With the new aircraft, we can reduce costs from 4.0 cents per available seat kilometre (ASK) to 3.5 cents per ASK, which is significantly lower than the cost of 7.5 to 8.0 cents per ASK on traditional carriers," Azran told a media briefing last week.

"An all-new aircraft fleet gives us a strong differentiation against airlines that operate aged aircraft. The new aircraft will lower our fuel consumption and maintenance costs and enable us to raise our efficiency level by up to 30 percent. The new aircraft is the main factor in changing the global aviation industry," said Azran.

The first Airbus A330 will be the first of a batch of new fleet of 25 aircraft AirAsia X has ordered from Airbus.

Both AirAsia and AirAsia X, are no frills carriers. AirAsias Airbus A320 has a 18-seat capacity while the Airbus A330 has more than 330 seats. The long haul affiliate provides both economy and XL seats while AirAsia operates a single seater.

-- BERNAMA

AirAsia rancang bina terminal -Tidak akan terus memohon beroperasi di Subang

Oleh AZMAN IBRAHIM





SEPANG 9 Okt. – AirAsia Bhd. (AirAsia) tidak menolak kemungkinan untuk merangka pelan membina sebuah terminal sendiri setelah permohonan syarikat itu untuk beroperasi di Lapangan Terbang Sultan Abdul Aziz Shah (LTSAAS), Subang tidak dilayan oleh kerajaan.

Ketua Pegawai Eksekutifnya, Datuk Seri Tony Fernandes berkata, pihaknya tidak mahu lagi memikirkan mengenai permohonan terhadap LTSAAS, sebaliknya akan merancang sesuatu yang lebih baik daripada itu.

Beliau bagaimanapun tidak memberitahu lokasi terminal yang masih dalam perancangan tersebut.

Tony memberitahu, melalui pelan baru itu, pihaknya akan memastikan kemudahan di terminal baru berkenaan akan menjadi lebih baik daripada LTSAAS.

“Syarikat penerbangan kami mengalami pertumbuhan perniagaan yang amat baik, oleh itu, syarikat kami tidak lagi bersesuaian untuk menjalankan operasi di LTSAAS.

“LTSAAS pernah menjadi terminal impian yang baik untuk AirAsia, tetapi sekarang tidak lagi dan ia dianggap terlalu kecil bagi kami,’’ katanya pada majlis perpisahan pesawat Boeing 737-300 terakhir yang diadakan secara rasmi hari ini.

Beliau berkata demikian kepada pemberita ketika ditanya mengenai keputusan Kementerian Pengangkutan yang tidak berganjak untuk tidak membenarkan AirAsia beroperasi di LTSAAS.

Baru-baru ini, Kementerian Pengangkutan melalui temu bual eksklusif Utusan Malaysia menyatakan keputusannya untuk mengekalkan operasi AirAsia di Terminal Syarikat Penerbangan Tambang Murah (LCCT) di Sepang.

Timbalan Menteri Pengangkutan, Datuk Seri Lajim Ukin menegaskan tiada sebab untuk kerajaan menimbangkan permintaan syarikat berkenaan, meskipun AirAsia berkali-kali membuat permohonan untuk beroperasi di Subang.

Menurut beliau, kerajaan telah membelanjakan RM108 juta untuk membangunkan LCCT, selain RM124 juta lagi bagi melaksanakan kerja-kerja menaik taraf terminal dalam usaha meningkatkan keselesaan penumpang di terminal tersebut.

Katanya, kerja-kerja menaik taraf itu sudah cukup untuk menampung keperluan syarikat penerbangan tambang murah terbesar di Asia Tenggara itu.

Dalam pada itu, Fernandes menambah, pihaknya tidak akan memikirkan lagi mengenai hasrat untuk beroperasi di LTSAAS sejajar dengan majlis perpisahan pesawat Boeing 737 yang diadakan secara rasmi hari ini.

‘’Setelah habis majlis perpisahan Boeing 737 hari ini, kami tidak akan membuat permohonan seumpamanya lagi,’’ ujarnya.

AirAsia among top 5 most admired airlines
Published: 2008/10/22
BusinessTimes

AIRASIA Bhd is among the top five most recognised and admired airlines in the Asia-Pacific region in a survey by market insight company, TNS.

In a statement yesterday, AirAsia said it was the only low-cost carrier to be listed among the "Top 10 Asia-Pacific Airlines" category, which saw it coming ahead of other full-service, legacy carriers including Qantas and Malaysia Airlines.

It said the category formed part of the Asia-Pacific Top 1,000 Brands 2008 survey which was produced in cooperation with the Hong Kong-based Media magazine.

A total of 3,600 people were surveyed across 10 countries, covering 12 major product and service categories.

Group chief executive officer Datuk Seri Tony Fernandes said to be the only low-cost carrier featured in the category was a great achievement for the airline.

He said AirAsia's low-cost model was an attractive customer proposition which was strong enough to compete with premium airlines such as Singapore Airlines and Cathay Pacific.

“Over the last seven years AirAsia has quickly become a household name, and with flights operating from every Asean country, we are making air travel an affordable reality for everyone across Asia,” he said. — Bernama

AirAsia rancang bina terminal -Tidak akan terus memohon beroperasi di Subang


ni kenapa degil sangat mamat ni? dah besar kepala lah ni...

didn't he knows anything about making KLIA as an important airport (well, hub might be)? and to make it happen, we (MAS and AA) need to make an extensive network. and if AA moved to somewhere else, then....what?

government shall not tolerate on this. give him a lesson a bit.

AirAsia among top 5 most recognised in Asia Pacific

Email us your feedback at fd@bizedge.com


KUALA LUMPUR: AirAsia Bhd has emerged as one of the top five most recognised and admired airlines in the Asia-Pacific region in a recent survey conducted by market insight company TNS. It was the only low-cost carrier to be listed among the “Top 10 Asia-Pacific Airlines”, beating other full-serviced carriers such as Qantas and Malaysia Airlines.

“To be the only low-cost carrier featured in the Top 10 Asia-Pacific Airlines category is a great achievement for AirAsia,” AirAsia group chief executive officer Datuk Seri Tony Fernandes said in a statement.

He added that AirAsia’s low-cost model enabled the airline to compete with premium airlines such as Singapore Airlines and Cathay Pacific.

Fernandes said AirAsia was expanding its market share and bought more aircraft when other airlines were cutting back on routes.

AirAsia among top 5 most admired airlines
Published: 2008/10/22
BusinessTimes


Yes, but they better start watching the competitiveness of their pricing - I've observed that their fares are pricier than other budget carriers, particularly those operating out of S'pore on SIN-KUL, SIN-BKK.

AirAsia sees robust growth despite global crisis
Published: 2008/10/23

Although it is not going to be easy, the airline has to maintain demand by having the lowest fares and good products, says its chief executive officer

DESPITE the challenging global financial crisis, low-cost carrier AirAsia is confident of continuing to experience robust growth, bolstered by a sustainable business model, chief executive officer Datuk Seri Tony Fernandes said.

“We think that we are in a strong position. We will continue to invest in our brand and increase demand through quality products while expanding routes,” he told reporters after a media briefing on AirAsia’s latest 5-Star Enhancement in Kuala Lumpur today.

He, however, said nothing was guaranteed as it was not known what was around the corner.

According to Fernandes, AirAsia was ready to face this challenging period as he had earlier predicted the eventuality.

“All I can say is that we will maintain a consistent strategy and change our products. We are a low-cost carrier and will not pretend to be something else.

“But, we are a high-quality low-cost carrier,” he said.

Fernandes said the way out of recession for AirAsia was growth.

He said some airlines would deal with the recession by contracting. “But I am not going to waste five years of hardwork by throwing away the routes and brand development.

“It is going to be a long recession. I have been predicting this for two years and we are ready for it.

“Although it is not going to be easy, we have to maintain demand by having the lowest fares and good products,” he stated.

Being the largest low-cost carrier in Asia, AirAsia is able to compete with other full service airlines by maintaining its low fares and adding yet another sparkle to its already 5-star service, by enhancing its On-Time Guarantee.

The On-Time performance of flights refers to the departure of flights within 15 minutes of their scheduled departure times.

AirAsia is the only airline in the world that provides its customers with an innovative protection like the On-Time Guarantee. It is an innovative protection provided by the airline for customers against flight delays.

Beginning November 1, 2008, the AirAsia On-Time Guarantee cuts waiting time from three to two hours. Customers affected by flight delays of more than two hours are eligible to receive an e-gift voucher.

Each e-gift voucher is worth RM200 and may be used to buy a seat on another AirAsia flight or redeemed for any AirAsia product or service. - Bernama

AirAsia ready to ride out global crisis
By Presenna Nambiar Published: 2008/10/24

http://www.btimes.com.my/Current_News/BTIMES/Friday/Nation/aapo.xml/Article/Current_News/BTIMES/Images/btgraph11/hoour.jpg


BUDGET carrier AirAsia Bhd is prepared to weather a recession, thanks to its focus on brand-building and cost reductions.

"What makes us ready? It is a combination of many things ... and putting in all these measures way beforehand.

"The purchase of our planes at a time when prices were at the bottom of the market, investing in building up our brand, cost-cutting - all this should help us weather the (global financial) crisis," group chief executive officer Datuk Seri Tony Fernandes said after a briefing on AirAsia's on-time guarantee in Kuala Lumpur yesterday.

He said AirAsia will continue to expand its way out of a recession.



"We have always taken the contrarian approach and gone against conventional wisdom. That is how we have managed to beat our competitors," Fernandes said.

He added that continuous efforts to improve its product offerings have primed the carrier to reach out to the corporate market even now.

"On one side, because of the economic scenario, business people are cutting costs and opting for AirAsia. On the other side, there have been dramatic improvements in the quality of our products," Fernandes said.

The number of corporate customers flying on AirAsia has increased fivefold in the last four months, from six per cent of total passenger numbers.

Beginning November 1, AirAsia passengers subjected to a flight delay of more than two hours will be eligible to receive e-gift vouchers under its on-time guarantee.

The vouchers, worth RM200 each, may be used to buy a seat on another AirAsia flight or to redeem an AirAsia product.

On the fuel surcharge, he said there must be stability in the price of fuel before AirAsia considers a review.

Two-hour delay at most for AirAsia


KUALA LUMPUR: Low-cost carrier AirAsia has reduced its on-time guarantee from three to two hours.

From Nov 1, AirAsia passengers would receive a RM200 e-voucher if their flight is delayed for more than two hours, said its group chief executive officer Datuk Seri Tony Fernandes. “I dare say we are the only airline that is offering this service. It is a clear case of a low-cost carrier doing what premium airlines have not done,” he said at a press conference yesterday.

On how the current recession would affect the carrier, Fernandes said the objective was to improve demand from travellers by giving them incentives to switch from premium airlines to AirAsia. When asked by reporters whether AirAsia would raise fuel surcharges, Fernandes said the airline would not, unless global fuel prices went past US$100 (RM357) per barrel.

“We are looking at getting rid of the fuel surcharge actually. We need to see consistency and stability in the world (oil) prices first,” he said.

AirAsia has been chosen one of the top five most recognised and admired airlines in the Asia-Pacific region, based on a survey in which 3,600 people in 10 countries participated.

It is also the sole low-cost carrier to be listed in the “Top 10 Asia-Pacific Airlines” category in the survey conducted by market research company TNS.

Fernandes expressed his pride in the ranking, calling it “a great achievement” for the airline.

“Over the last seven years, AirAsia has quickly become a household name with flights operating from every Asean country,” he said in a statement yesterday.

The results indicate the success of a brand in understanding and meeting the needs of its clients, said TNS Hong Kong & Singapore client services and insight director Guy Hearn.

AirAsia tawar RM200 jika berlaku kelewatan

KUALA LUMPUR 23 Okt. - Bilangan ahli perniagaan tempatan yang menggunakan perkhidmatan AirAsia Bhd. (AirAsia) dijangka meningkat berikutan amalan perbelanjaan mereka yang lebih berhemat ketika ketidaktentuan ekonomi global.

Ketua Pegawai Eksekutifnya, Datuk Seri Tony Fernandes berkata, sejak beberapa bulan kebelakangan ini, syarikat penerbangan tambang murah itu telah mencatatkan peningkatan dalam segmen perniagaan korporat sebanyak 500 peratus.

"Kelembapan ekonomi akan menyebabkan ahli korporat mula mengambil langkah berjimat cermat dan ini memungkinkan mereka menggunakan AirAsia bagi urusan perniagaan," kata beliau pada taklimat penambahbaikan perkhidmatan lima bintang AirAsia di sini, hari ini.

Pada majlis itu, Fernandes mengumumkan pemberian baucer elektronik bernilai RM200 sekiranya penumpang menghadapi kelewatan selama dua jam berbanding tiga jam sebelum ini.

Pada tahun ini, AirAsia mengunjur membawa 20 juta penumpang.

Mengulas lanjut, beliau menerusi penambahan kekerapan penerbangan antara Kuala Lumpur - Singapura yang bermula Disember ini juga akan meningkatkan bilangan ahli perniagaan yang menggunakan perkhidmatan syarikat penerbangan tambang murah tersebut.

Tambah beliau, AirAsia mencatatkan faktor muatan sebanyak 86 peratus bagi laluan tersebut ketika ini.

Pada 26 September lalu, AirAsia mengumumkan penambahan empat lagi penerbangan terus harian bagi laluan Kuala Lumpur-Singapura-Kuala Lumpur.

Dengan kekerapan baru itu, AirAsia kini mempunyai enam penerbangan terus harian menghubungkan dua bandar raya utama itu pada Disember ini.

Fernandes juga berkata, pihaknya tidak risau tentang prestasi kewangan syarikat penerbangan tambang murah itu pada tahun ini meskipun syarikat mencatat keuntungan yang menurun pada suku terakhir.

Katanya, syarikat itu mempunyai struktur perniagaan yang mantap untuk tempoh panjang

AirAsia to add one more frequency to Singapore

Email us your feedback at fd@bizedge.com


SEPANG: AirAsia Bhd is adding one more additional frequency to Singapore from its Kuala Lumpur hub, due to an overwhelming response from its guests, the low-cost carrier said yesterday.

With the new addition, AirAsia will now have a total of seven daily direct flights from Kuala Lumpur-Singapore starting Dec 1, 2008.

In a statement yesterday, AirAsia said to celebrate the new frequency, it was offering free seats and waiving the fuel surcharges. Passengers will have to bear the taxes and administration fee.

This offer is available exclusively online at www.airasia.com for the booking period from Oct 23 to Oct 28 for the travel period from Dec 1 to July 31, 2009.

AirAsia regional head of commercial Kathleen Tan, said: “We have been steadily building up our presence in the Lion City, having only recently announced four additional frequencies from Kuala Lumpur and new daily flights from Kota Kinabalu and Kuching to Singapore in October alone."

"There are robust demands between the two major cities and tourist gateway in the region. Since its inception last February, we have recorded over 90% load. We are confident that this new additional frequency will do just as well."

Jointly, the AirAsia group will have a total of 101 flights weekly to Singapore from various points in the region which include 49 flights weekly from Kuala Lumpur, seven weekly from Kota Kinabalu, seven weekly from Kuching, seven weekly from Phuket, 28 weekly from Bangkok and three flights weekly from Pekanbaru, Indonesia.

AirAsia reduces waiting time of on-time guarantee by one hour
2008/10/24
Bernama

KUALA LUMPUR, Fri:

AirAsia, the largest low-cost carrier in Asia, will enhance its on-time guarantee, a protection for its passengers who are affected by flight delays.

Beginning next month, the on-time guarantee cuts waiting time from three to two hours, making those affected by flight delays of more than two hours eligible to receive e-gift vouchers.

Each e-gift voucher is worth RM200 and may be used to buy a seat on another AirAsia flight or redeemed for any AirAsia product or service, the airline said in a statement.

Commenting on the revised on-time guarantee, AirAsia’s group chief executive officer Datuk Seri Tony Fernandes said: “The gap between us and full-service airlines has narrowed from our first day and I dare say we are better than many of them.”

The airline said in just three months since the on-time guarantee was launched in June this year, the number of AirAsia flights that were delayed by an hour or more has dropped from three per cent in July and four per cent in August to two per cent in September.

As a direct effect, AirAsia has seen its on-time performance for flight departures improving from 89 per cent in July and 85 per cent in August to 90 per cent in September, it added. — BERNAMA

AirAsia gets nod to fly to India
Updated: Monday October 27, 2008 MYT 2:46:32 PM
By ROYCE CHEAH

KUALA LUMPUR: AirAsia has finally conquered its “last frontier” with the Indian Government giving the low-cost carrier approval to fly to India.

AirAsia chief executive officer Datuk Tony Fernandes said the airline would start selling tickets to Tiruchi in Tamil Nadu at midnight on Wednesday with the first flight to take off on Dec 1 at 7.40am.

“It will be a daily flight and we are looking at even adding a second flight now as the initial response has been tremendous,” he told reporters Monday during a press conference here.

Special promotional prices for the flight will cost RM49 one-way while the normal ticket price will cost about RM200 one-way.

Fernandes said plans are now in the works for the next one and a half years to fly to many more destinations in India including Madras, Madurai and Kochi with AirAsia.

“AirAsia-X meanwhile will fly to places like New Dehli, Bombay, Hyderabad, Bangalore and Calcutta,” he added.

He said AirAsia would initially invest between RM5mil to RM7mil to set up infrastructure in India and he is confident that it will do well.

“This is an exciting period for us and I’m looking at a high load factor of at least 90% for our first flight,” he said.

Fernandes said it had taken the airline seven years to reach this stage and with India now in its pocket, his mission as CEO is complete.

“I had said then that India would be the last place we need to get to. It is now over to AirAsia-X to grow the business to Japan, South Korea, Europe and the United States.”

Fernandes said he expects a huge growth in Indian tourism in Malaysia and that he is not worried about the global economic slowdown.

“I believe that you have to be innovative. While other airlines are cutting back we are expanding and can take up their slack.

“Maybe some of the population in India cannot afford to fly with us, but there are many more who can and this is the market we are after,” he said.

Fernandes also said, in response to recent Malaysia Airlines (MAS) advertisements, that his battle with MAS is over and that it is time to move on.

AirAsia To Fly To India From Dec 1
October 27, 2008 15:44 PM

KUALA LUMPUR, Oct 27 (Bernama) -- AirAsia Bhd will fly to India beginning Dec 1 with its inaugural flight to Thiruchi in the South Indian state of Tamil Nadu.

AirAsia's group chief executive officer, Datuk Seri Tony Fernandes, said the airline expected a huge growth from Indian tourism to contribute to its new route.

"I anticipate very high load factor for this flight (probably) about 90 percent from the first week, which should probably be the strongest route we have ever done," he told a media briefing here Monday.

He said there was a huge potential for the airline as Thiruchi was the fourth largest city in Tamil Nadu with a population of 1.6 million.

Thiruchi, famous for its fusion architecture and monuments, will be the first destination for AirAsia, before it embarks on nine other locations in India within the next one-and-a-half years.

Other routes include Madras, Cochin, Madurai and Kovaibutore while for AirAsia X, they are looking at New Delhi, Mumbai and Hydrabad.

Tony said to cater to the new routes, the carrier would be spending about RM5 to RM7 million for new infrastructure including the opening of an office in Thiruchi.

Booking for the flight, which will be on a daily basis, will start on Wednesday midnight with offer price starting from RM49 while an average fare price of RM200 for one-way flight.

For India, AirAsia would be using 10 A320 planes.

-- BERNAMA

great continent to explore...ahh...i hope they would fly to Mumbai...:okay:

AirAsia X terima Airbus A330 Jumaat
Oleh Norfatimah Ahmad
tim@bharian.com.my

AIRASIA X, syarikat penerbangan jarak jauh tambang murah akan menerima pesawat terbarunya, Airbus A330 Jumaat ini yang dijangka bakal mengubah industri penerbangan dunia.

Pesawat yang direka bentuk khas untuk syarikat yang memenangi kategori ‘Pendatang Baru Terbaik’ dalam Anugerah Syarikat Penerbangan Tambang Murah Dunia Budgie 2008 itu akan membuat penerbangan sulungnya dari pusat penyerahan Airbus di Toulouse, Perancis.

Ketua Eksekutif AirAsia X, Azran Osman-Rani, berkata penggunaan pesawat baru itu akan menjimatkan kos minyak dan penyelenggaraan syarikat itu.



Katanya, tahap kecekapan syarikat dijangka meningkat sehingga 30 peratus dengan penggunaan pesawat baru itu, sekali gus mampu mengubah suasana industri penerbangan dunia.

“Pesawat terbaru itu sememangnya sesuatu yang dinantikan kerana dijangka mampu mengurangkan kos operasi syarikat dengan lebih berkesan.

“Penggunaan pesawat terbaru ini membolehkan kami mengurangkan kos daripada empat sen untuk unit kos setiap tempat duduk bagi satu kilometer (ASK) kepada 3.5 sen, lebih rendah berbanding 7.5 hingga lapan sen setiap ASK ketika menggunakan pesawat lama,” katanya pada sesi taklimat kepada wakil media yang akan membuat liputan penyerahan pesawat A330 di Perancis, Jumaat ini.

Azran berkata, pesawat terkini milik syarikat itu akan menjadi perintis kepada reka bentuk global bagi keseluruhan kategori pesawat baru, malah ia akan mengetengahkan pelbagai ciri khusus yang belum pernah dilengkapkan pada pesawat lain.

Pesawat A330 milik AirAsia X itu akan dilengkapkan dengan tempat duduk kulit dengan pilihan saiz XL untuk lebih keselesaan dan kemewahan, set makanan bertaraf lima bintang, kit pelbagai guna, tempahan tempat duduk mengikut pilihan penumpang serta sistem hiburan dalam penerbangan yang serba baru.

Majlis penyerahan pesawat baru A330 itu berlangsung tiga minggu selepas AirAsia menamatkan penggunaan pesawat Boeing 737-300 bagi penerbangan dalam negara.

Berikutan itu juga, syarikat berkenaan memilih pesawat Airbus A320 yang juga diharap dapat menjimatkan penggunaan minyak.

Pesawat serba baru A330-300 itu akan diterbangkan dari Touluose ke Kuala Lumpur sebaik majlis penyerahannya selesai dengan jumlah penumpang pertamanya seramai kira-kira 60 orang.

Ketika ini, AirAsia X secara keseluruhannya sudah melangkaui empat destinasi penerbangan iaitu Perth, Melbourne, dan Gold Coast di Australia dan Hangzhou, China.

Kini, ia dalam peringkat akhir pemilihan destinasi ke United Kingdom iaitu sama ada London atau Manchester.

Location: Low Cost Carrier Terminal KLIA, Sepang
by Pak Brahim

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AirAsia Offers Free Seats To Singapore
October 28, 2008 19:58 PM

KUALA LUMPUR, Oct 28 (Bernama) -- Asia's largest low-cost airline, AirAsia, is launching a free seat campaign to celebrate its newly added frequencies and services to Singapore from East and West Malaysia, Thailand and Indonesia.

"We are thrilled to be adding frequencies and introducing new services to Singapore.Giving out free seats to our customers is the perfect way to share the excitement with them," Regional Head of Commercial AirAsia, Kathleen Tan said in a statement Tuesday.

To celebrate, the airline is giving away free seats to Singapore from Kuala Lumpur, Kota Kinabalu, Kuching, Pekanbaru, Phuket and Bangkok.

Customers only have to bear the fuel surcharges, airport tax and admin cost.

The free seat promotion will commence on Oct 29-Nov 2 for the travel period of Dec 1, 2008-July 31, 2009.

"While other airlines are cutting back on routes, we are expanding and have the ability to service the underserved markets," she added.

This offer is available exclusively via online at AirAsia's website at www.airasia.com.

-- BERNAMA

AirAsia launches promotion for flights to Singapore

Email us your feedback at fd@bizedge.com


SEPANG: AirAsia is launching a free-seat campaign to celebrate its newly added frequencies and new services to Singapore from Kuala Lumpur, Kota Kinabalu, Kuching, Pekanbaru, Phuket and Bangkok.

In a statement yesterday, AirAsia said guests would have to bear the fuel surcharges, airport tax and administration cost. The promotion will start today and end on Nov 2 for the travel period from Dec 1 to July 31, 2009.

AirAsia has 101 weekly direct flights to Singapore from various points in the region which include Kuala Lumpur, Kota Kinabalu, Kuching, Phuket, Bangkok, and Pekanbaru in Indonesia.

The airline said the first 1,000 guests who successfully booked their free seats online would be rewarded with a RM20 E-gift voucher.

AirAsia looking at reducing fuel surcharge

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KUALA LUMPUR: AirAsia Bhd is looking at reducing fuel surcharge following the decline in global crude oil prices.

In a note to its registered website users yesterday, AirAsia chief executive Datuk Seri Tony Fernandes said: "I have been working very hard with the team at AirAsia to look at reducing our fuel surcharge, and you should look forward to the good news in the next couple of months." He did not elaborate.

Meanwhile, Fernandes said in the same note that there had been a sudden unanticipated surge in call volume to its call centre. "I notice that lately we have received numerous complaints on our call centre response time," he said.

Fernandes said this was due to the huge success of AirAsia X, especially with the Perth and Melbourne route announcements. "These new, exciting long-haul routes have resulted in longer talk-time between callers and our agents, and subsequently caused our lines to be congested."

He assured guests that the call centre team was working with its IT department to upgrade the facility and that by Nov 6, the centre would have enough agents and sufficient IT infrastructure to deal with the influx.

"By this, we aim to improve our call centre performance to 90%, ie a drop-call rate of 10% only. By January, we'll be moving to a high-tech call centre to cater to more calls," Fernandes.

AirAsia X: No slowdown for us
Published: 2008/10/30



LONG-haul budget airline AirAsia X said it remained bullish about its outlook amid an economic slowdown which has forced many carriers to go bankrupt in recent months.

AirAsia X chief executive officer Azran Osman-Rani said passengers who flew full fledged carriers would opt for AirAsia X as it offered lower fares.

He said its low-cost terminal near the Kuala Lumpur International Airport was always busy with passenger traffic.

“There is no slowdown (for us). Our load factor is good,” he told AFP by phone from Toulouse, France where he is collecting the carrier’s first new fuel-efficient A330-300.



The carrier is expected to receive its second carrier in December which would further lower its operating costs.

AirAsia X has signed a deal with Airbus to buy 25 A330-300 aircraft.

Azran had said last month that Airbus would deliver three of them in 2009, and that it was fast-forwarding an aircraft originally scheduled to be handed over in 2011.

Azran made the remarks after an industry group warned yesterday that airlines in the Asia-Pacific face a tough future as the global financial crisis bites deeper.

Andrew Herdman, director-general of the Kuala Lumpur-based Association of Asia Pacific Airlines (AAPA), said carriers will suffer a decline in revenue.

“We are braced for a very rough ride over the next few months as the global economic slowdown begins to bite hard,” he said in a statement.

The latest casualty is Denmark-based low-cost carrier Sterling Airways which yesterday said it would file for bankruptcy because its cash-strapped Icelandic owner was unable keep it airborne.

AirAsia X, launched in January 2007, is an affiliate of regional low-cost carrier AirAsia and Virgin Group. AirAsia and AirAsia X have common shareholders, including AirAsia founder and CEO Tony Fernandes.

Richard Branson’s Virgin Group has also taken a 20 per cent stake in the airline, and the British billionaire has vowed to ensure the project turns a profit.

AirAsia X now operates with just one A330-300, which carries out four return flights a week between Kuala Lumpur and Australia’s Gold Coast, as well as to China’s Hangzhou.

The airline plans to offer six return flights per week between Perth and Kuala Lumpur starting November 2 and to service Melbourne from November 12.

AirAsia X is also expected to fly to Britain in the first quarter of 2009. - AFP

Dear AirAsia Guests,


I notice that lately we have received numerous complaints on our Call Centre response time. This is due to the huge success of AirAsia X, especially with the Perth and Melbourne route announcements. These new, exciting long-haul routes have resulted in longer talk-time between callers and our agents and subsequently caused our lines to be congested.

We did not anticipate this sudden surge in calls volume. However our Call Centre team headed by
Sri Velayuthan has now identified and worked with our IT department to upgrade the Call Centre facility.

By Nov 6, our Call Centre will have enough agents and sufficient IT infrastructure to deal with the influx.
By this, we aim to improve our Call Centre performance to 90% i.e. a drop call rate of 10% only.
By January, we'll be moving to a high-tech Call Centre to cater to more calls.

We sincerely apologise for the frustrations caused by our Call Centre congestion but this is only due to our overwhelming business expansion. We have always been mindful in increasing cost as it will certainly lead to increasing fares. As the People's Airline, this is the last thing we want to happen.

We acknowledge that technology will cost us more but at the same time we are committed to giving you excellent service.

On another note, I have been working very hard with the team at AirAsia to look at reducing our fuel surcharge and you should look forward to the good news in the next couple of months.

In the meantime, if you have any problems or enquiries, do not hesitate to email Sri Velayuthan (srivelayuthan@airasia.com) or Hani Mohamad (haninurlena@airasia.com). Having a combined experience of
15 years in customer service between them, they will be happy to assist you.


Best regards,
Tony Fernandes

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Airasia X terima anugerah syarikat penerbangan baru tahun ini


KUALA LUMPUR: AirAsia X, syarikat penerbangan tambang rendah jarak jauh, menerima Anugerah Syarikat Penerbangan Baru Terbaik Tahun Ini, daripada Pusat Penerbangan Asia Pasifik (CAPA) 2008.

Anugerah CAPA mengiktiraf sumbangan penting AirAsia kepada industri penerbangan di rantau ini menerusi tambang udaranya yang kompetitif, rangkaian yang berkembang dan peneraju utama produk dan perkhidmatan.

“Kejayaan AirAsia X memanfaatkan rangkaian serantau peneraju sekutunya AirAsia di Asia Tenggara dan China, dengan penumpang mendapat kemudahan lebih daripada 105 laluan dan kekerapan penerbangan harian tertinggi ke kebanyakan bandar raya Asia,” kata AirAsia X dalam satu kenyataan hari ini.



“Untuk dipilih sebagai “Syarikat Penerbangan Terbaik Tahun Ini” mendahului pesaing kami, menunjukkan AirAsia X menetapkan penanda aras strategi perniagaan yang berpandangan jauh dan inovatif,” kata Ketua Pegawai Eksekutif AirAsia X, Azran Osman-Rani.

Beliau berkata tahun pelancaran operasi AirAsia X menyaksikan permulaan cemerlang kepada rancangan masa depan syarikat penerbangan itu dan anugerah berkenaan akan memperkukuhkan jenamanya dalam pasaran. - Bernama

AirAsia X wins New Airline of the Year award
Published: 2008/10/31

LOW-cost long-haul airline AirAsia X has received the 2008 Centre of Asia Pacific Aviation (http://www.centreforaviation.com/aviation/) (CAPA) New Airline of the Year Award.

The CAPA award recognised AirAsia’s significant contribution to the aviation industry in the region by way of its competitive airfares, growing network and market leading product and services.

“The success of AirAsia X rides on the back of affiliate AirAsia’s leading regional network in Southeast Asia and China, where passengers have access to more than 105 routes and the highest daily flight frequencies to most Asian cities,” AirAsia X said in a statement today.

“To be named ’Airline of the Year’ ahead of our competitors demonstrates AirAsia X is setting the benchmark foresight and innovative business strategies,” said AirAsia X’s chief executive officer Azran Osman-Rani.

He said AirAsia X’s inaugural year of operation saw an excellent start to the airline’s forward plans and the award would strengthen its brand in the market. — Bernama

AirAsia CEO Sees Silver Lining In Financial Crisis
October 31, 2008 15:02 PM
From Salbiah Said

TOULOUSE, (France) Oct 31 (Bernama) -- AirAsia Berhad group chief executive officer Datuk Seri Tony Fernandes sees a silver lining in the current global financial crisis for the low-cost airliner which has survived past turbulence.

"We have gone through SARS (severe acute respiratory syndrome), terrorism, the bird flu, Bali bombing. The worse was SARS but we found a way to get out of it," he said.

"During the health scare in 2003, there was no demand in passenger traffic. But we were able to create demand. With our business model, which has been successful to date, we managed to sell 5,000 seats during the SARS outbreak," said Fernandes at a press conference here Thursday.

He was here to witness the handing over of the first delivery of the first brand new A330 aircraft to AirAsia X, its low-cost long haul affiliate on Friday.

Transport Minister Datuk Ong Tee Kiat will be guest-of-honour at the ceremony.

The handover marks the first deliver of an order AirAsia X placed for 25 Airbus A330 aircraft earlier this year, and comes just weeks after AirAsia switched its entire Malaysian operations to an all Airbus A320 fleet.

Despite the current financial crisis, Fernandes said AirAsia was not cutting down on expenditure nor was it slowing down on growth.

"We are in fact talking about accelerating our orders for the remaining 24. We are looking at a few more," he said.

"Now is the right opportunity to grow while everyone else is cutting back and Airbus has the capacity. We can get sooner," he told the Malaysian media.

Also present were AirAsia X chairman Datuk Seri Kalimullah Hassan and chief executive officer Azran Osman Rani.

Earlier at a media briefing, Airbus regional communications Asia manager Sean Lee said the second A330 aircraft was scheduled to be delivered to AirAsia X by the end of this year with the entire fleet of 25 airplanes to be delivered by 2013.

Lee said since 2005, AirAsia has ordered 225 aircraft worth US$6.3 billion (list price) from Airbus, with each A320 and A330 costing US$77 million and US$200 million respectively.

-- BERNAMA

THE AIRASIA ECONOMICS
Source: AirAsia.com and CLSA Research
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The only LCC in Asia that is making money


Disciplined to the pure LCC model
– short haul only (note: AirAsia X is a separate company)
– no frills


Five years of Building a Solid Foundation

– lowest cost airline in the world
– growth pipeline secured with purchase order of 200 Airbus A320 aircraft
– Academy to ensure ample supply of high quality manpower
– globally recognizable brand
– Successful JV structure, ability to replicate in other countries
– Solid balance sheet, very liquid and lower than intrinsic value
– Government supports the LCC, built 3 LCCT and provide concessions
– proven management team



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To be the largest low cost airline in Asia and serving the 3 billion people who are currently underserved with poor connectivity and high fares.



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There are generally five phases in every flight. Each phase is unique and has exerts different characteristics on the engines and structure of the aircraft.

Idle
Even when the aircraft is sitting idle in the runway, the engines is burning 15 litres of fuel every minute and producing more than 1000 lbs of thrust.

Takeoff
This is the only stage of a flight whereby full power is applied. At full throttle, a CFM56 powered Airbus A320 can accelerate to 320 kmh in under 60 seconds. The intensity of the engine is so much that the exhaust gas temperature is approximately 1026 oC, equal temperature of an erupting volcano!

Climb
The time taken for ascend depends on the weight of the aircraft, a heavier aircraft will take more time to reach the cruising altitude.

Cruise
When reaching cruise mode, pilot will decrease the engine's thrust to the optimal setting of fuel burn and thrust produced in order to conserve fuel.

Landing
During landing, a commercial aircraft will touch on the runway at over 240 kmh. Thrust is redirected forward to help slow the plane.


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The maximum cruising speed of the Airbus A320 is 903 kmh, but the aircraft typically flies at an economical cruising speed of 840 kmh. Before the aircraft can reach cruise mode, significant amount of time is required to climb to the suitable cruising altitude and not to mention time taken before being allowed to take-off and land. Therefore, flight journey time is not necessarily proportional to the distance travelled. The table above depicts the average speed of a typical flight versus the stage length.


Facts that figure

• Every 3 minutes, an AirAsia aircraft is either taking off or landing somewhere in Asia.
• Our aircraft flies an average of 2.8 million kilometers each year; that’s an equal distance to the moon and back, four times over.
• Our pilots and cabin crew travel 500,000 kilometers every year; roughly circling the Earth 13 times.
• Our aircraft consumes approximately 14 million litres of fuel each year.
• Our aircraft makes contact on the tarmac approximately around 13,000 kilometers every year, about half the distance a normal passenger car puts in every year. BUT, our aircraft will require 16 tyre changes every year.


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The key components of the LCC business model are the following;

1. High aircraft utilization
Aircraft is kept flying as much as possible, the first flight starts as early in the morning commercially possible and the final flight typically ends at midnight. A fast turnaround is critical to ensure time spent of the ground is minimal – an airline makes money when the aircraft is flying, not when the aircraft is parked. AirAsia’s turnaround time is 25 minutes; compare that against 1 hour for a FSC. On average, AirAsia’s utilization per aircraft is 12 block hours per day, a FSC might do about 8 block hours per day.

2. No frills
The underlying business for a LCC is to get a person from point A to point B. Everything else is considered to be luxury item or “frill”, of which can be acquired for a small fee. Among many of the frills that AirAsia has do away are;

No free food & beverages. Why give away something that you don’t appreciate? Passengers are most welcome to purchase food & drinks at an affordable price from the cabin crew.

Free seating. There is no assigned seating. Passengers receive a generic boarding pass and they will have to take any of the available seats.

Ticketless airlines. Less hassle for the customer, who doesn't have to worry about collecting tickets before traveling, and cost-effective for the airlines (paper, printing, distributing).

No refund. Airlines waste a lot of money when passengers do not show up for a flight due to refunds and rescheduling. Whether a passenger shows up or not, the cost of flight to the airline is the same. LCC are unforgiving to no show passengers and do not offer refunds for missed flights.

No loyalty programme. We believe our customers are loyal to our low fares, so who needs frequent flyer miles programme then.


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3. Streamline Operations
Making the process as simple as possible is the key of a successful LCC. AirAsia’s day to day operational principle is K.I.S.S (keep it simple stupid).

Single type of aircraft. Pilots, flight attendants, mechanics and operations personnel are specialized in a single type of aircraft, which means, among others, that there is no need for costly re-training of staff, for maintaining a stock with parts for different types of aircraft, for knowledge and skills in order to operate and maintain different types of aircraft with their own characteristics, or for new work requirements.

Single class seating. There is only one class seating, i.e first class, and passengers are free to sit where they choose. Should you want to have the privilege to choose your seats, you can by purchasing Xpress boarding.
Standard Operating Procedures. SOPs are important to ensure same level of competence among all the staff. This way we can ensure the homogeneity of service throughout the company.

4. Basic Amenities

Secondary airports. Low cost carriers mostly fly to and from airports that are not necessarily the busiest, for example, London - Stanstead rather than London - Heathrow. These are often referred to as secondary airports. Operating from so called secondary airports is cheaper than from the bigger major airports and they are also a lot less congested and “turnaround times” for aircraft are a lot shorter. For instance, to minimize fees AirAsia fly into Clark Airbase which is 70km away from Manila as appose to flying into Manila Ninoy Aquino airport.

Business Lounges. Forget about it.

5. Point to point network
Point to point network. LCC shuns the hub-and-spoke system and embraces the simple point-to-point network. Almost all AirAsia flights are short-haul (3 hour flight or less). No arrangements have been made with other airline companies on connecting flights, on possibilities of flight transfers, nor on having the luggage labeled and passed through from one flight to another.


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6. Lean Distribution System

Distribution costs are something that FSC most often ignore. Very often, FSC relies on travel agents and from their posh sales office. Furthermore, FSC always blows the budget by complicating their distribution channels by integrating their systems with multiple Global Distribution Systems. LCC will keep their distribution channel as simple as possible and will cover the whole spectrum of the clientele profile. For example, AirAsia can cater to the most sophisticated European traveler via internet and credit card sales. And at the same time, AirAsia has an established system to sell our tickets to the most remote and technology deprived locations, such as in Myanmar.

Internet Sales. The bulk of sales (±65%) are done via the airline’s website, whereby the fares are paid using a credit card. This is the most cost effective distribution channel.

Sales office. AirAsia only has a few sales offices. We only establish a call centre if we are confident the sales derived from the centre will be worth it. Furthermore, we are not fixated with having our sales office in the posh side of town.

Travel agents. LCC avoids reliance for sales via travel agent as much as possible. This means that the airlines do not pay any commission to a travel agent, which would otherwise have been reflected in the fares. Also, as they do not use travel agents, they do not use, nor participate in the world wide reservation systems and thus save costs, which again are reflected in their pricing.

Call centres. Ticket sales can be done via telephonically; this is a simple and cost effective method.


AirAsia's Destinations and Fleet as of October 2008

http://img384.imageshack.us/img384/6656/airasiafleetbw2.jpg

http://img91.imageshack.us/img91/3669/airasiavi9.jpg


--

Dear AirAsia Guests,


I notice that lately we have received numerous complaints on our Call Centre response time. This is due to the huge success of AirAsia X, especially with the Perth and Melbourne route announcements. These new, exciting long-haul routes have resulted in longer talk-time between callers and our agents and subsequently caused our lines to be congested.

We did not anticipate this sudden surge in calls volume. However our Call Centre team headed by
Sri Velayuthan has now identified and worked with our IT department to upgrade the Call Centre facility.

By Nov 6, our Call Centre will have enough agents and sufficient IT infrastructure to deal with the influx.
By this, we aim to improve our Call Centre performance to 90% i.e. a drop call rate of 10% only.
By January, we'll be moving to a high-tech Call Centre to cater to more calls.

We sincerely apologise for the frustrations caused by our Call Centre congestion but this is only due to our overwhelming business expansion. We have always been mindful in increasing cost as it will certainly lead to increasing fares. As the People's Airline, this is the last thing we want to happen.

We acknowledge that technology will cost us more but at the same time we are committed to giving you excellent service.

On another note, I have been working very hard with the team at AirAsia to look at reducing our fuel surcharge and you should look forward to the good news in the next couple of months.

In the meantime, if you have any problems or enquiries, do not hesitate to email Sri Velayuthan (srivelayuthan@airasia.com) or Hani Mohamad (haninurlena@airasia.com). Having a combined experience of
15 years in customer service between them, they will be happy to assist you.


Best regards,
Tony Fernandes



yeah i got that via email too.... i like his personal "touch" ....

Airasia X Flying From Kota Kinabalu?
November 01, 2008 22:27 PM

KOTA KINABALU, Nov 1 (Bernama) -- In future, Sabah may see AirAsia X, the long-haul franchise of AirAsia, commencing its service from the Kota Kinabalu International Airport (KKIA), according to an AirAsia top official.

AirAsia Bhd chairman Datuk Aziz Bakar has not denied this possibility but declined to elaborate on those destinations they were eyeing.

While not specifying the time period to achieve this, he said: "I am sure AirAsia X will look into it.

"But right now, the airline probably does not have sufficient aircrafts (to accomodate the flights)," he told reporters at the launch of the Kota Kinabalu-Singapore route at Terminal 2 of KKIA here Saturday.

Aziz was asked if the airline was interested in introducing long-haul services from KKIA, such as Australian destinations. AirAsia X's inaugural flight was on Nov 2, last year to Gold Coast, Australia.

The airline currently operates with just one A330-300, which undertakes four return flights a week between Kuala Lumpur and Gold Coast, as well as China's Guangzhou.

The long-haul budget airline is 48 per cent owned by Aero Ventures (a venture of AirAsia's chief executive Datuk Tony Fernandes and several of his business associates), followed by 16 per cent by Virgin Group and 16 per cent owned by AirAsia.

AirAsia X has also secured rights to land in China, Korea and West Asia and future destinations, include those in India, the Middle East and Europe.

AirAsia X is expected to launch its second Australian destination which is Perth Airport tomorrow, with six flights a week between the two cities, and services to Melbourne expected from Nov 12.

It is also expected to fly to Britain in the first quarter of 2009.

-- BERNAMA

4. Basic Amenities

Secondary airports. Low cost carriers mostly fly to and from airports that are not necessarily the busiest, for example, London - Stanstead rather than London - Heathrow. These are often referred to as secondary airports. Operating from so called secondary airports is cheaper than from the bigger major airports and they are also a lot less congested and “turnaround times” for aircraft are a lot shorter. For instance, to minimize fees AirAsia fly into Clark Airbase which is 70km away from Manila as appose to flying into Manila Ninoy Aquino airport.

and due the the flight from KL to Clark which is as early as 7am, it is wiser to opt for MAS for its flexible time. additional RM200 is not a problem for a better amenities and accessibility offered by MAS.


AirAsia's Destinations and Fleet as of October 2008

http://img384.imageshack.us/img384/6656/airasiafleetbw2.jpg

--

possible future profitable destination for AirAsia; Dhaka (Bangladesh), Taipei (Taiwan), Colombo (Sri Lanka)
btw, what's goin on now with VinaAirAsia and Lankan AirAsia? how about the bangladeshi's subsidiary of it?

and Philippines AirAsia, does this company really exist?

I cant wait for the ASEAN air liberalisation by december 2008. Then airasia can fly jakarta and surabaya and bali to singapore. airasia needs to streamline its operation well and increase flight as the new planes are online replacing boeing 747.

The 9th malaysia plan says it wants to achieve a balanced regional development. I have a few question

why we never host a asean summit outside KL maybe in JB or Penang or KK or Kuching?
Thailand on the other hand tries to promote chiang mai to develop the 2nd city. In malaysia where is the 2nd city?
why we never host the SEA games outside of KL? or combine it with brunei to co host with miri?
We always plan but we never implement the plan properly.

i have a feeling by 2020 ipoh, seremban, gemas and kuantan will be a massive commuter metropolitian region of KL. We should really spread the development than to centralise it.

In 1957, our founding fathers envision Penang, JB/Singapore, KL to be the 3 largest city in Peninsular. after 50 years everything is still concentrated in KL.

Desaru is fighting with Batam and Bintan to attract Singaporean. Transportation is a means that can boost the economy and efficiency not more buildings and malls. human capital will be more important as we become more developed.

If we notice closely, airasia Singapore network is expanding very fast. I believe in the future it will be more connection from Singapore than Penang will ever have.

Next to come will be Singapore-Penang which is a guarded route by MAS. Singapore does has a big international passenger base. Thats y airasia cannot easily ignore this 4.5million city state.

the liberalisation only covers capital cities which means only SIN-CGK, no SUB or DPS rights... and I think you mean Boeing 737s... :lol:

The D7 inaugural PER-KUL flight today on the brand new 330 had some major hydraulic problems. The plane took off from Perth and 20 minutes later had to divert back to Perth as the plane shook and vibrated heavily. Emergency equipment were deployed on the ground and it landed safely but was inmobile in the middle of the runway and needed tow assistance... The pax deboarded and were re-accomdated on MH/SQ+AK flights back. The plane was ferried back to KUL w/o pax.
-updates from m-wings

Dharmadi, Chief Executive Officer AirAsia Indonesia said “In compliance with Indonesia’s DCA regulation Keputusan Menteri no. 25 tahun 2008, commencing today AirAsia Indonesia has introduced assigned seats for our guests involving our QZ flights to all of our domestic and international routes. Guests with Xpress boarding will be able to board first and will be assigned the first to the fifth front row seats in the aircraft. The assigned seats for the QZ flights is part of our strategic plan to provide better service and higher comfort level to our guests. As Asia's biggest low cost carrier with a strong domestic and extensive network within the Asean region, we believe our amazing low fares and innovative services have an edge over the masses and empower more travelers to fly with us.With our delicious hot meals, spacious cabin, comfortable leather seats, fun and friendly crew, AirAsia On Time Guarantee and now assigned seats, AirAsia is indeed providing 5-star value to its guests.”

AirAsia may fly from KK to Bali, Bangkok again
By Jaswinder KaurPublished: 2008/11/03



BUDGET carrier AirAsia Bhd (5099) may re-introduce flights to Bali and Bangkok from Kota Kinabalu, its chairman Datuk Aziz Bakar said.

The flights were suspended after several months of operations, owing to scarcity of passengers and the need to deploy its aircraft to newer routes.

"It does not mean that when we scrap a flight, it is forever. Timing is important and so is growth in cities or attractiveness of tourism products. We need to see whether there is a demand for flights before we decide on continuing with them," Aziz said at the launch of the inaugural Kota Kinabalu to Singapore daily flight on Saturday.

"In the case of these two destinations (Bali and Bangkok), we were below breakeven point and passenger load was low both ways.
"We also need to use our resources more efficiently. Sometimes we have to deploy our aircraft for other new destinations," he added.

Aziz was asked if the new route to Singapore would eventually suffer the same fate as flights to Bali and Bangkok, which had people in Sabah all excited at one point.

AirAsia X terima pesawat A330-300



AIRASIA X, penerbangan tambang murah jarak jauh menerima penyerahan pesawat A330-300 baru pertamanya di ibu pejabat Airbus di Toulouse, Perancis, baru-baru ini.

Pesawat baru itu adalah antara 25 pesawat A330-300 baru ditempah AirAsia X bagi mengembangkan operasi jarak jauh menghubungkan Kuala Lumpur ke destinasi di Australia, Asia Utara, Asia Barat dan Eropah, sebagai melengkapi rangkaian AirAsia.

Ketua Pegawai Eksekutif AirAsia X, Azran Osman-Rani, berkata pesawat A330-300 dipacu enjin Rolls-Royce Trent 700, dengan tempat duduk kepada 383 penumpang dalam dua kelas iaitu 355 kelas Ekonomi dan 28 kelas premium XL.

Katanya, pesawat A330-300 paling sesuai membolehkan kumpulan AirAsia melanjutkan kejayaan model tambang murahnya ke pasaran jarak jauh.






“Dengan kadar pembakaran bahan api sangat rendah, A330 yang bersih dan mesra alam ini membolehkan kami menjimatkan kos dan mengembangkan pasaran udara keseluruhan dengan memanfaatkan segmen penumpang baru dan menawarkan tambang paling berpatutan,” katanya dalam satu kenyataan di Kuala Lumpur, baru-baru ini.

AirAsia X plans expansion to Europe
NST Online » NewsBreak 2008/11/03

KUALA LUMPUR:

AirAsia X plans to expand its destinations to Europe, including United Kingdom, by March next year and also fly to 10 cities in India in the next five years.
These routes will be served by the new Airbus A330 aircraft the long-haul low-cost carrier has ordered, said its chief executive officer Azran Osman-Rani.

AirAsia X took delivery of its first 25 Airbus A330 on Saturday and more are scheduled to arrive from end of this year till 2013.

AirAsia X to soar on the wings of cost-efficiency
By Santha Oorjitham
Published: 2008/11/04

http://www.btimes.com.my/articles/asix/pix_bottom

AS AIRASIA X celebrates its first anniversary of commercial service, chief executive officer Azran Osman Rani is confident it offers the first truly "low-cost" long-haul service.

Many have tried - and some have failed. Hong Kong-based Oasis, for example, went into liquidation in April this year, 18 months after it was launched.

Although Oasis offered low fares, Azran pointed out, it used the same infrastructure and system as full-service carriers - so it was not cost-efficient.

With its new Airbus 330-300, the first of 25, AirAsia's low-cost long-haul affiliate halves the cost - flying at 3.5 US cents per available seat kilometre compared to up to eight US cents on traditional carriers. (It has been using a leased Airbus 330 until now.)

"AirAsia X is the biggest budget airline in Southeast Asia and the cheapest in the world in operating cost," noted Chris Eng, associate director of OSK Research.
AirAsia Bhd group chief executive officer Datuk Seri Tony Fernandes "told us to question everything a normal airline does", explained Azran on the "ferry flight" of the new airplane from Airbus headquarters in Toulouse, France, to Kuala Lumpur last weekend.

By asking whether every part of the aircraft and the system was necessary, AirAsia X was able to trim the superfluous.

Azran attributes a third of his savings to how the airline uses its planes, including the frequency of flights, leveraged on AirAsia's network of over 70 destinations across Southeast Asia.

Seat density makes up 25 per cent of the cost cuts, with 383 seats on the new plane. On its new flight to Perth, AirAsia X has 28 "XL" seats, each of which is the equivalent of 1.4 economy seats.

The fares for the XL seats are comparable to economy fares on full-service carriers. "That is a good move," said Eng. "Business travelers might 'downtrade' to XL on AirAsia X."

Another 20 per cent of the savings comes from having a single-type mixed fleet. The Airbus planes have very similar flight decks and handling characteristics which reduce training costs and spare parts stockpiles.

Ten per cent more is saved on fuel and fuel-related practices. For example, the CEO pointed out, "We monitored the amount of water for the lavatories. We found that on night flights, passengers use only about half a tank so we fill between 60 to 70 per cent of the tank. That cuts a lot of weight."

And the rest of the savings comes from overheads, including low-cost airports such as the Low-Cost Carrier Terminal (LCCT), which charges 50 per cent less than Kuala Lumpur International Airport.

Out of Singapore, Tiger Airways also offers long-haul flights, with an Airbus fleet similar to AirAsia X. But staff costs and airport charges are lower in Malaysia, OSK's Eng pointed out: "AirAsia X has the base and can maintain that low cost."

And with a larger population, "AirAsia X can feed more passengers into LCCT since it has a bigger domestic base, compared to Tiger Airways."

For now, group CEO Fernandes said, the group is "unhedged and happy. We've kept our model the same and never veered away from our long-term strategy".

And that strategy should pull them through: "If anybody has the chance to succeed, AirAsia does - on long-haul in particular," said Eng.

Transport Minister Datuk Ong Tee Keat, who witnessed the delivery of the Airbus 330-300 in Toulouse, also believes that AirAsia X has a successful strategy.

He said he was confident that the airline could "become a global leader in pioneering and innovative and revolutionary low-cost long-haul business model".

AirAsia X to tap Malaysia, foreign funding
By Jeeva Arulampalam
Published: 2008/11/04

LONG-HAUL budget carrier AirAsia X will look at foreign and local banks to fund the purchase of its 25 A330 planes, estimated at US$5 billion (RM17.6 billion), says its chief executive officer, Azran Osman-Rani.

With an average market value of US$200 million (RM704 million) per plane, Azran said, AirAsia X's positive cashflow since April has helped convince financiers to lend to the carrier in such challenging times.

Also, having an established brand such as AirAsia has helped in its search for funding in markets plagued by the credit squeeze. "When we presented to financial institutions in August, we were very fortunate because financiers in Europe had confidence in the brand and that it was not a start-up," he said, adding that financing for the first couple of planes have been secured.

Azran was speaking to the media at the carrier's one year commercial service anniversary.

The first A330 was used in AirAsia X's inaugural flight between Kuala Lumpur and Perth on November 2. It was supposed to arrive in Kuala Lumpur yesterday for a media tour but was delayed six hours in Perth due to a computer glitch.

Azran said the second A330 will be delivered in mid-December, followed by three each in 2009 and 2010. The remaining planes are slotted for delivery up to 2013.

"There is an opportunity to accelerate some of the orders because some other airlines are deferring the orders due to problems related to market demand or financing," said Azran.

If AirAsia X took delivery of its planes sooner, Azran said, this would allow it to open up more routes quickly.

It will commence its flights between Kuala Lumpur and Melbourne on November 12.

AirAsia X could also look at flying between eight to 10 cities in India within five years, he added.

Azran said the carrier was on track to start its new flights to London in March. For its London flights, AirAsia X is in talks with three airports - Stansted, Manchester and East Midlands.

While the International Air Transport Association said passenger traffic declined 2.9 per cent and international load factors tumbled to 74.8 per cent in September, Azran said the carrier is still experiencing strong forward bookings from November to March.

"We are starting to see more people in suits at our terminal here. So I think some people are trading down from flying with a full service carrier," he added.

On fuel hedging, Azran said the airline was looking at the option as jet fuel prices have lowered significantly from the middle of this year.

To mark its first year anniversary, AirAsia X is offering free seats for destinations including Gold Coast, Hangzhou, Perth and Melbourne from today to November 9.

AirAsia X hopeful of getting loans for new aircraft
By LAW KAI CHOW


SEPANG: Long-haul budget airline AirAsia X Sdn Bhd is confident of getting bank loans to finance the purchase of its remaining Airbus A330 fleet despite the current turbulence hitting the airline industry.

Chief executive Azran Osman Rani said AirAsia X was hopeful of getting loans for the remaining “20-plus” Airbus A330 it ordered after managing to get loans for the first few aircraft.

The carrier had ordered 25 Airbus A330 planes, which costs about US$200mil each.

“The negotiation (for the loans) for the first few aircraft was intense because the foreign bank was more cautious but fortunately, we were able to the clinch the deal due to the lender’s confidence in the AirAsia brand,” Azran said after the celebration of AirAsia X’s first anniversary yesterday.

“For the remaining planes, we are in talks with foreign as well as local banks, including CIMB Bank Bhd, RHB Bank Bhd and Bank Kerjasama Rakyat Malaysia Bhd.”

http://biz.thestar.com.my/archives/2008/11/4/business/p4-airasiai.JPG
AirAsia X's first Airbus A330 was delievered on Nov 1.

AirAsia X took delivery on Saturday of the first of the 25 Airbus A330 it ordered and promptly launched an inaugural flight on the Airbus A330 between Kuala Lumpur and Perth, Australia, the very next day.

But the flight encountered a six-hour delay due to a computer glitch in the plane’s cockpit.

Another aircraft is scheduled for delivery in December and three more in 2009. All the Airbus A330 aircraft it ordered are scheduled to be delivered by 2013.

AirAsia X’s current debt-to-equity ratio is over three times, which, according to Azran, is acceptable in the airline sector.

The carrier has not hedged its positions in foreign currencies and jet fuel, he said, pointing out that 50% of the group revenue was in foreign currencies.

However, it was planning to lock in jet fuel supplies as the current price was attractive, he added.

On its expansion plan, Azran said AirAsia X would continue to grow its routes and aircraft fleet despite the economic slowdown.

“When others (airlines) retreat, it is a good time for us to expand because we can grow at a faster rate by taking over their routes and cancelled aircraft,” he said, adding that AirAsia X planned to expand into Europe, China and India soon.

Launched in November 2007, AirAsia X has flown over 200,000 people and operated flights to Gold Coast and Perth, both in Australia, and Hangzhou, China.

Its next inaugural flight would be to Melbourne, Australia, on Nov 12 and to Britain on March 9 next year.

AirAsia-X’s new Airbus from Perth hits a glitch
By ROYCE CHEAH


SEPANG: The anticipated tour of AirAsia-X’s new Airbus A330 ended up as a computer slide show after the plane failed to touch down on schedule here due to a delay in its departure from Perth.

AirAsia-X chief executive officer, Azran Osman-Rani told the media, guests and AirAsia staff waiting at the low-cost carrier terminal (LCCT) here yesterday that the plane was delayed in the interests of safety.

The plane was to have touched down at the LCCT at 1pm but it only arrived hours later.

“Warning lights for a certain component lit up as the plane was flying here from Perth. The pilot then decided to return to Perth.

http://thestar.com.my/archives/2008/11/4/nation/airasia.jpg
AirAsia-X Sdn Bhd chief executive officer Azran Osman Rani (right) and AirAsia Bhd regional head of commercial Kathleen Tan (2nd from right) celebrating the first anniversary of AirAsia-X's commercial service in Sepang.
“Back there, the onboard computer system was restarted and everything was rechecked. This took six hours, including getting a new time slot to depart,” Azran said.

In an e-mail sent to The Star, a passenger claimed the plane had encountered hydraulic problems.

Asked if he was disappointed with the performance of the first Airbus A330 that AirAsia-X had acquired, Azran said such delays did not necessarily impact the ability of the plane to fly.

“We must test everything. Even if it is going to take three, six or 24 hours, I would not risk it for the safety of the passengers,” he said.

Azran said affected passengers, both from Kuala Lumpur and Perth, were provided with the necessary assistance such as replacement flights and hotel stays.

AirAsia-X had taken delivery of its first A330 on Friday in Toulouse, France. The delivery of the second A330 is expected in mid-December.

Yesterday was AirAsia-X’s first anniversary of commercial service.

Peluang AirAsia X monopoli tambang murah di India

SEPANG 3 Nov. - AirAsia X menyasarkan krisis kewangan akan memberikan peluang untuk syarikat penerbangan itu memonopoli pasaran penerbangan tambang murah di India dalam tempoh lima tahun akan datang.

Ketua Pegawai Eksekutifnya, Azran Osman Rani berkata, secara keseluruhan, pihaknya kini menikmati kesan positif daripada krisis kewangan dunia apabila ramai ahli perniagaan termasuk dari India dan China semakin beralih menggunakan perkhidmatan syarikat penerbangan tambang murah jarak jauh itu.

Beliau berkata, banyak syarikat penerbangan menerima tempias yang amat buruk sehingga ada yang terpaksa memberhentikan penerbangan ke beberapa destinasi namun ia tidak berlaku kepada AirAsia X.

''Sebenarnya, kami tidak melihat sebarang kesan daripada krisis ini malahan perniagaan kami semakin bagus dan semakin kukuh.

''Apabila berlakunya krisis sebegini, ramai yang terpaksa menukar pilihan penerbangan mereka daripada kelas bisnes atau kelas pertama kepada kelas ekonomi dan ini merupakan peluang terbaik bagi kami untuk berkembang mahupun memasuki pasaran baru,'' katanya.

Beliau menyatakan demikian pada sidang akhbar selepas sambutan ulang tahun pertama pesawat Airbus A330-300 AirAsia X, di Terminal Syarikat Penerbangan Tambang Murah (LCCT) di sini, hari ini.

Kebanyakan penerbangannya seperti ke China, menerima sambutan yang baik setiap hari dan sebahagian besar penumpangnya adalah daripada kalangan ahli perniagaan, tambah beliau.

Azran memberitahu, AirAsia X mungkin akan menerima kesemua 25 buah pesawat A330-300 lebih awal kerana terdapat beberapa syarikat penerbangan yang telah membatalkan tempahan kerana menghadapi masalah kewangan.

Sementara itu, Ketua Komersial Serantau AirAsia, Kathleen Tan memberitahu, syarikat mendapat pelbagai pertanyaan mengenai beberapa destinasi yang sering dikunjungi ahli perniagaan.

''Kami menerima banyak tempahan daripada ahli perniagaan daripada China yang sering menjalankan urusan di Asia. Kami juga yakin akan menerima tempahan yang tinggi apabila AirAsia X memulakan penerbangan ke London pada Mac depan,'' ujarnya.

AirAsia giat segmen korporat


http://www.bharian.com.my/Tuesday/Ekonomi/20081103233145/mainpix
AZRAN (dua dari kanan) bersama Kathleen (kanan) memotong kek merai ulang tahun pertama AirAsia X di Sepang, semalam.


AIRASIA Bhd sudah mengatur program bagi menarik lebih banyak segmen korporat menggunakan perkhidmatannya, bertujuan meraih manfaat daripada kelembapan ekonomi yang sedang melanda dunia ketika ini.

Syarikat bersekutunya, AirAsia X pula bercadang mengembangkan destinasi ke Eropah Mac depan.

Ketua Komersial Serantaunya, Kathleen Tan, berkata sungguhpun kelembapan ekonomi melanda dunia ketika ini, tinjauan bagi industri penerbangan mendapati banyak syarikat kini mencari penerbangan alternatif lebih murah bagi urusan rasmi masing-masing.

“Banyak syarikat masih mengembara menggunakan pengangkutan udara bagi tujuan rasmi dan kami percaya dengan program korporat menarik, lebih banyak segmen korporat akan menggunakan AirAsia.

“Satu program khusus sudah dirangka AirAsia untuk menarik segmen berkenaan, termasuk membabitkan perniagaan berkaitan kawasan komersial, mesyuarat, insentif, konvensyen dan pameran (Mice),” katanya sambil menambah hanya 25 peratus pengguna AirAsia hari ini terdiri daripada sektor korporat.

Beliau berkata demikian pada majlis meraikan ulang tahun pertama syarikat itu semalam. Hadir sama Ketua Eksekutif AirAsia X, Azran Osman-Rani.

AirAsia X menerima pesawat baru pertama Airbus A330 daripada 25 yang ditempahnya Sabtu lalu dan lebih banyak lagi dijadualkan tiba mulai akhir tahun ini sehingga 2013.

Sementara itu Azran berkata, AirAsia X bercadang mengembangkan destinasi penerbangannya ke Eropah, selepas penerbangan pertamanya ke London akan menjadi kenyataan Mac tahun depan.

Beliau berkata, termasuk dalam pelan lima tahun AirAsia X ialah mengadakan penerbangan ke 10 bandar di India, menggunakan pesawat jarak jauh Airbus A330 yang sudah ditempah.

AirAsia X’s financing for planes on track, says Azran
by Tony C H Goh
Email us your feedback at fd@bizedge.com


KUALA LUMPUR: AirAsia X Sdn Bhd is confident in meeting the financial obligations for the purchase of 25 new Airbus A330 planes.

“Since April 2008, we have well in excess of RM300 million cash in hand, including cash from our foreign equity partners. We have been operating on positive cash flows and are confident that we could continue to raise funds in Europe as banks have to continue lending,” AirAsia X chief executive officer Azran Osman-Rani said.

“The plan for equity financing will proceed as planned, and we are eyeing 2010 for a possible IPO (initial price offer) or through private placements to our existing shareholders

He was speaking to reporters on board its first Airbus A330 last Friday en route here from Toulouse, France, where the aircraft was delivered to AirAsia X.

The Airbus A330-300 ordered by AirAsia X carry a catalog price tag of US$200 million (RM704 million) each or US$5 billion in total, though discounts are usually given for large orders. The delivery period of the plane is from the end of last month to 2013.

Azran said the ability to raise funds for the purchase of new planes was crucial for AirAsia X to grow. “With these new planes, we would probably be profitable by December and start registering full-year profit beginning next financial year,” he said.

Azran pointed out that the A330 could help the airline maintain its low-cost advantage, with its operating cost forecast to go down from four US cents per km now to 3.6 and 3.3 cents for next year and 2010, respectively.

“This is why we felt that the planes we are purchasing now are very important to ensure that we stay ahead of our competitors. We are one of the first airlines to phase out the Boeing 747 that burns around 15% more fuel and costs 15% more in maintenance,” he said.

According to Azran, aircraft financing is very specialised and very few Asian financial institutions have experience in it. However, he added that the company would try to convince Malaysian financiers that AirAsia X’s business model was viable.

Foreign shareholdings in AirAsia X now stand at 36%, comprising 16% held by Virgin Air Ltd and 10% each by Orix Group from Japan and Perigon Capital of Bahrain.

To another question, Azran said the long-haul budget carrier was going ahead with its route expansion to Japan, United Kingdom and continental Europe despite concerns that the possible visa ruling by the UK government could complicate matters.

“We are making progress on these issues and from the feedback we received, we are confident that Malaysia will pass the test,” he said, referring to the six-month grace period given until the end of the year by the British government for Malaysia to cut down the number of its citizens abusing the visa-free privilege by overstaying in the country.

Thai AirAsia positive despite challenges
by Tony C H Goh
Email us your feedback at fd@bizedge.com


KUALA LUMPUR: AirAsia Bhd’s associate, Thai AirAsia Ltd, is confident of weathering Thailand’s political storm with the group’s right choice of planes and established brand name.

Thai AirAsia chief executive Tassapon Bijleveld said the company would be able to increase its revenue and contribute to the group’s profitability when political tension in the country eased.

“We are about half the size of our Malaysian counterpart, and the two additional Airbus A320 this year would increase our load capacity by 20%. We are optimistic that the targeted load factor of 80% could be achieved this year,” he told reporters on a flight home from Toulouse, France, where AirAsia X took delivery of its Airbus A330-300.

He said for the year through September, the company registered a negligible 2% to 3% drop in passenger traffic, mainly due to a drop in tourist arrivals. AirAsia holds a 49% stake in the company.

Out of the total of 175 Airbus A320s ordered by AirAsia, 30 are meant for its Thai associate. The company would be operating a fleet of 30 Airbus planes by 2013, Bijleveld said.

Bijleveld said Thai AirAsia had a 40% share of Thailand’s domestic air travel market and the new aircraft would help promote its low fare strategy.

The company currently has 14 aircraft and it flies to 20 domestic and international destinations, including Penang, Kuala Lumpur, Singapore and Macau. It hopes to start its Bali, Indonesia and Guangzhou, China flights by next February.

Out of Singapore, Tiger Airways also offers long-haul flights, with an Airbus fleet similar to AirAsia X. But staff costs and airport charges are lower in Malaysia, OSK's Eng pointed out: "AirAsia X has the base and can maintain that low cost."
Tiger offers long haul flights? since when?
Airport Tax in SIN is SGD7, in LCCT its RM35?

Tiger offers long haul flights? since when?
Airport Tax in SIN is SGD7, in LCCT its RM35?


(medium haul routes)


Tiger Airways (SG) flies to Perth and Darwin (terminated in Oct 2008) in Australia, and Bangalore and Chennai in India.

Its subsidiary Tiger Airways (AUS) now flies 11 destinations across Australia.

Lately, Tiger Airways (SG) has also set up a new low cost airline in SKorea, based in Incheon that will fly domestically and to China, Japan, Mongolia and Russia beginning 1Q 2009.

I luv to see d cabin interior of airasia new A330. :)

I luv to see d cabin interior of airasia new A330. :)


Jeng jeng jeng! Here are the most awaited interior photos of 9M-XXA: (taken from this blog, http://joenyuin.blogspot.com/2008/11/guess-who.html

Normal Economy seat

From the front:
http://img440.imageshack.us/img440/466/c5dw4000copyug0.jpg

From the back: (with IFE on every seat)
http://img87.imageshack.us/img87/3721/c5dw3976copykf6.jpg


XL seat (Self conjecture, as the blog does not say so, correct me if I am wrong):
http://img151.imageshack.us/img151/4192/c5dw3899copymf8.jpg

If my conjecture is true, then the XL seats are really small and just a little bit bigger than the usual economy seat on other airlines. :blink:


Credits to MalaysiaWings

ada IFE !??

^^nice..Thx Forrestcat. :)

Transfer Of Airasia Operations From Main Terminal Of KKIA To Terminal 2 Is Temporary

KUALA LUMPUR, Nov 5 (Bernama) -- The Transport Ministry's decision that AirAsia Bhd transfer its operations from the Main Terminal of the Kota Kinabalu International Airport(KKIA), to the Terminal 2, is a temporary measure.

The Deputy Minister of Transport Datuk Seri Panglima Lajim Ukin said the move was until upgrading works to the KKIA's Main Terminal is completed.

"The move is intended to avoid any disruption to flight operations and work at the site where the upgrading to the Main Terminal is being undertaken," he said.

AirAsia had been informed of the matter and was ready to transfer operations back to the Main Terminal once the project was completed, he told the Dewan Rakyat today.

Lajim was responding to a question from Dr Hiew King Cheu (DAP-Kota Kinabalu) on the reason for AirAsia to transfer operations from Terminal 2, which had cost millions of ringgit to build, back to the Main Terminal after the upgrading works.

He said that the original objective of upgrading the Main Terminal would not be realised if the terminal building and parking apron was not fully utilised.

"The issue of passenger traffic still arises, especially for those from and to selected airports, planning to use AirAsia or MASWings," said Lajim.

At the same time, he said the facilities for aircraft operations on the parking apron of Terminal 2 was very limited.

"As such, the transfer is to support the need of additional aircrafts or that of aircrafts bigger than the Boeing 737 or the Airbus A320 as well as operational service requirements," he added.

He said that if AirAsia continued with its operations at the Terminal 2, it would impact on the efficiency of air traffic control with problems related to runway crossings, continuing to exist for the airlines' aircraft taking off from runway 02 and landing on runway 20.

With the completion of upgrading works to the Main Terminal, he said that there would be greater efficiency and comfort with regards to the transfer of passengers and flight connections.

The KKIA masterplan will focus on infrastructure expansion in the vicinity of the Main Terminal as there was vacant land available for development.

The Terminal 2 vacated by AirAsia, will not be left idle.It will be used by agencies such as the Royal Malaysian Air Force, the Police and others as Transmile, flying clubs, private aircraft and serve as a cargo handling centre.

-- BERNAMA

British trade report recognises AirAsia as the brand to watch


KUALA LUMPUR: Low-cost carrier AirAsia has been recognised as the top brand to watch in Britain’s Trade and Investment’s New World Brands annual report.

The report said AirAsia was the only South-East Asian company to make the list of top 10 brands from emerging markets across Brazil, Russia, India and China.

AirAsia in a statement said it was also recently ranked in the top five among the Asia-Pacific’s airline brands in a Top 1,000 Brands 2008 survey. – Bernama

AirAsia jenama terunggul

KUALA LUMPUR 7 Nov. - Syarikat penerbangan tambang murah, AirAsia, diiktiraf dalam laporan tahunan jenama baru, New World Brands Perdagangan dan Pelaburan UK, sebagai jenama terunggul yang harus diberikan perhatian.

Laporan itu menyebut bahawa AirAsia merupakan satu-satunya syarikat Asia Tenggara yang berjaya menduduki senarai sepuluh jenama terunggul dari pasaran sedang berkembang meliputi Brazil, Russia, India dan China.

AirAsia berkata, pihaknya baru-baru ini juga disenaraikan sebagai antara lima jenama terunggul di kalangan syarikat penerbangan Asia Pasifik dalam satu kajiselidik 1,000 Jenama Terunggul 2008.

"Diiktiraf sebagai satu jenama baru terunggul di dunia merupakan pencapaian yang sangat besar bagi AirAsia. Ini mencerminkan usaha gigih dan sikap perintis kami ke arah menjadikan perjalanan udara sebagai realiti termampu bagi semua orang di seluruh Asia," katanya.

AirAsia scraps fuel surcharge
Published: 2008/11/11


MALAYSIAN budget carrier AirAsia has scrapped fuel surcharges on all its flights, including on long-haul carrier AirAsia X, in response to the decline in global oil prices.

AirAsia chief executive officer Datuk Tony Fernandes said the regional carrier’s fares will remain unchanged.

“We want to get rid of all surcharges and we have been able to ... be the first airline in the world that is completely getting rid of fuel surcharges,” he told reporters.

AirAsia stands to lose at least RM940 million in fuel surcharge revenues in 2009, as Fernandes predicts more than 20 million passengers will fly the airline next year.

AirAsia passengers pay an average fuel surcharge of RM47 (US$13) on each sector.

The carrier said passengers will still have to pay other taxes — a RM22.50 administration and insurance charge and airport tax of RM6.00 for domestic flights and RM25.00 on international routes.

It is also offering 500,000 free seats, with no fare or fuel surcharge, in a five-day campaign beginning midnight Wednesday for flights in the third quarter of 2009.

Fernandes said, however, that the fuel surcharge could return if oil prices surged again.

He said that although many airlines are cutting capacity as a result of an expected global recession, AirAsia is planning on increasing routes and capacity because of its low prices, high load factors and aggressive marketing.

“What we are doing is to produce more routes and lower prices to fight out of the (global) economic recession,” he said.

Fernandes said while scrapping the fuel surcharge is unlikely to affect the airline’s profitability, the carrier will initiate other programmes to make up for the loss of revenue. - AFP

AirAsia removes fuel surcharge, offers free seats:banana::banana:


KUALA LUMPUR Malaysia's AirAsia today abolished fuel surcharges on all its flights and said it will give away half a million free tickets next year in an attempt to lure travelers amid the global slowdown.

AirAsia Chief Executive Tony Fernandes said the region's biggest budget carrier will offer 500,000 free seats for travel between June 22 and Oct. 24, 2009, on all its domestic and international destinations.

"It will be completely free. Passengers will only have to pay airport tax,'' Fernandes told a news conference.

He said the recent steep drop in fuel prices has allowed AirAsia to adopt the bold strategy, adding that the loss of revenue should be offset by higher ticket sales, which will also be bolstered by new marketing strategies.

http://biz.thestar.com.my/archives/2008/11/11/business/latestmainopicairasiai.JPG
Datuk Seri Tony Fernandes (right) and Datuk Shahrir Abdul Samad at the launch of new low AirAsia air fares on Tuesday. - Starpic by Kevin Tan

Fernandes said AirAsia is the first carrier in the world to abolish fuel surcharges, which became a standard industry practice a few years ago as oil prices rose on their way to peaking at nearly $150 a barrel in mid-July. But since then, crude prices have tumbled because expectations that slower global growth will mean less demand.

"We want to do is get rid of these surcharges,'' Fernandes said. "The best way to do it is aggressive marketing and low fares.''

Eliminating the surcharges is expected to cost AirAsia about 940 million ringgit ($63 million) a year.

Fernandes said the move will boost Malaysia's economy as well as domestic and regional tourism by encouraging travel.

When AirAsia started in December 2001, it focused on flying within Malaysia. It has since expanded to Southeast Asia and China, and is scheduled to launch flights to India next month.

Malaysian Domestic Trade and Consumer Affairs Minister Shahrir Samad praised the decision.

"Anything that reduces costs to consumers and keeps money in their pocket gets my support,'' he told reporters after the announcement. "What we need now is optimism instead of grumbling and quarreling.''

Fernandes added that he could not guarantee that the removal of fuel surcharges would not hit AirAsia's profits, but said the company does not anticipate that would happen. He refused to say what the possible losses might be.

He noted AirAsia does not hedge its fuel purchases like other airlines do. To protect against the possibility of prices going up, some carriers make advance orders at current prices.

Fernandes said AirAsia will not implement a corresponding increase in base ticket prices with the removal of fuel surcharges, but said he could not guarantee that the surcharge would not be re-imposed if oil prices surge again.

"It would be foolish of me to say that fuel surcharges will not be imposed again but we will resist it for as long as possible,'' Fernandes said. - AP

No fuel surcharge and 500,000 free seats: AirAsia
By LISA GOH
Updated: Tuesday November 11, 2008 MYT 8:46:18 PM

KUALA LUMPUR: All AirAsia and AirAsia X passengers will now no longer have to pay for the fuel surcharge for all local and international flights.

AirAsia Bhd group chief executive officer Datuk Seri Tony Fernandes said the move - effective Tuesday - would mean that passengers would now only have to pay for the fare, airport tax and administration fee when flying with them.

Fernandes explained that “getting rid of the fuel surcharge” would not affect the base rate of the air fare, but he could not guarantee that the airline would never re-impose the surcharge should world fuel prices skyrocket again.

“We're not increasing the base rate. It is what it is.

“But if fuel prices shoot up ... I’ll be crazy to say I’ll never add the fuel surcharge again. But we will resist for as long as we can,” he told reporters Tuesday after making the announcement here.

The check-in baggage handling fee, however, would be maintained as it was imposed not only because of rising fuel prices earlier this year.

“We did it (in April) for three reasons - fuel prices, to limit the number of luggage, and to be more environmentally-friendly.

“The lighter the plane is, the less emissions it will have,” he said.

Fernandes also announced that beginning Wednesday, the airline would be offering some 500,000 free seats to all AirAsia destinations.

The booking period is until Sunday, and the travel period for the free seats is from June 22 to Oct 24 next year.

“There are two ways to deal with a slow economy. You’ve got to give more value, and you’ve got to stimulate people to travel.

“That’s what we’re doing now,” he said.

On the fuel surcharge, he said that it had previously cost passengers an average of RM47 per person.

Asked how the he planned to deal with the impact by removing the fuel surcharge, he replied:

“Higher load factor and newer initiatives to increase our revenue will help cover it. We’re keeping our 76% load factor, while adding 20% more seats.

“We’ll look at other ways of increasing our revenue. The easiest drug is fuel surcharge but it also destroys the business.”

Also present at the announcement was Domestic Trade and Consumer Affairs Minister Datuk Shahrir Abdul Samad, who applauded AirAsia’s move.

^^ huh tiada lagi surcaj bahan api eh !? hari ni bila aku check laman web Air Asia tengok harga tiket tu sendiri naik mendadak. Tak caya cuba tengok ...

^^rugi teruk lah AirAsia kalo betul2 dia kasik free surcharge. mesti ada pusing2 tang lain...and sorry AirAsia, i've already booked ticket to Bangkok via MAS, not you..:D

for me, it's not about cheap that matter, but value

AirAsia: Dropping fuel surcharges unlikely to hit profits
By Adeline Paul RajPublished: 2008/11/12

The airline is confident as it banks on higher load factors and new initiatives to generate extra income, says its group chief executive officer Datuk Tony Fernandes

BUDGET airline AirAsia Bhd (5099) said its move to abolish fuel surcharges is not likely to hurt profits as it is counting on higher passenger loads and new revenue-generating initiatives to help mitigate the impact.

"We are confident because a lot of our routes will mature so we'll have higher load factors, and our ancillary income is also very strong.

"Over the next month, you'll see quite a few new initiatives from AirAsia which will generate extra income," group chief executive officer Datuk Tony Fernandes told reporters yesterday.

While he doesn't anticipate profits being hurt by the removal of fuel surcharges, he however can't guarantee that it won't, he said.
The airline has no plans to increase its air fares to make up for the loss of revenue from the surcharges.

Fernandes said it was important for airlines to keep fares low to stimulate travel during an economic slowdown.

"Some airlines have kept fares very high and their load factor has suffered quite dramatically," he remarked.

AirAsia had a relatively high load factor of 76 per cent in the first half this year and expects to be able to main this while adding 20 per cent more seats.

Analysts cautioned that it would be an uphill task for the airline to maintain high passenger volume as globally, the numbers have tended to fall during an economic slowdown.

Many, however, think it was a good move for AirAsia to remove the fuel surcharges.

"It's a good, eye-catching move and necessary for them to attract passengers amid the slowdown," said Aseambankers equity research.

OSK Research yesterday upgraded the company to "neutral" with a target of RM1.11.

The shares fell two sen to RM1.10 on the stock market yesterday.

Fernandes said the airline hasn't seen a decline in forward bookings. For December, it has already sold more than 50 per cent of its seats and sales for January 2009 also looks strong, he said.

AirAsia does away with fuel fees on all flights


KUALA LUMPUR: Passengers on AirAsia and AirAsia X flights will no longer have to pay a fuel surcharge for both local and international flights.

AirAsia Bhd group chief executive officer Datuk Seri Tony Fernandes said with the move – effective midnight yesterday – passengers need only pay the fare, airport tax and administrative fee.

AirAsia becomes the first airline in the world to do away with the fuel surcharge for all its flights.

Previously, passengers paid an average of RM47.

Fernandes, however, added that he could not guarantee that the airline would not reimpose the surcharge should world fuel prices skyrocket again.

“I would be crazy to say I’ll never impose a fuel surcharge. But we will resist for as long as we can.”

The check-in baggage handling fee, however, would remain. “We imposed that (in April) for three reasons – fuel prices, to limit luggage, and to be more environmentally friendly.

The lighter the plane, the less emissions there will be,” he said.

Fernandes also announced that beginning today, the airline would be offering 500,000 free seats covering all its destinations.

The booking period is until Sunday, and the travel period is from June 22 to Oct 24 next year.

“There are two ways to deal with a slow economy. You’ve got to give more value, and you’ve got to stimulate people to travel. That’s what we’re doing now,” he said.

Asked how the he planned to deal with the impact of the fuel surcharge removal, he replied:

“Higher load factor and newer initiatives to increase our revenue will help cover it. We’re keeping our 76% load factor, while adding 20% more seats. We’ll also look at other ways of increasing revenue.”

Also present at the announcement was Domestic Trade and Consumer Affairs Minister Datuk Shahrir Abdul Samad, who applauded AirAsia’s move.

In an immediate reaction, Malaysia Airlines (MAS) senior general manager (sales) Datuk Bernard Francis said MAS had already reduced its fuel surcharge by 50%-73%.

“Our sales surged by 400%. We are looking at reducing the surcharge further to give customers what they want – low fare plus five-star products and services,” he said in a statement.

He added that what was special about its promotion was that passengers could travel almost immediately.

No fuel hedging need for AirAsia now
By B.K. SIDHU


Airline has also scrapped fuel surcharge effective Tuesday

KUALA LUMPUR: AirAsia Bhd has stopped hedging its fuel requirements for now, said group chief executive Datuk Seri Tony Fernandes.

AirAsia also scrapped its fuel surcharge effective yesterday for all its flights.

Last month the budget carrier bought back all its contracts up to December 2008 as the airline was paying higher fuel prices of nearly US$80 a barrel when crude oil prices were hovering around US$60 a barrel.

“We are un-hedged and this is the best way to be,” Fernandes said. “The time is not right to look at new hedges as it is too volatile right now as there is still too much speculation in the market place. The best thing to do is stay clean at the moment.”


Fernandes said AirAsia had bought back its hedging contracts under US$80 a barrel, for 150,000 barrels a month, which was a third of its consumption.

“We paid cash to buy the contracts last month. We are in a reasonable position now but that does not mean we will not go into hedging contracts in the future,” he said.

Any loss from its hedging positions will be reflected in AirAsia’s third quarter results, Fernandes said, without offering details.

Analysts said AirAsia would have sold its contracts at US$79.50 and US$82.50 a barrel and might have lost RM40mil each for the third and fourth quarter 2008.

“They speculated on fuel and the deal has gone sour,” said an analyst.

Yesterday, crude oil for December delivery traded at US$60.29 a barrel on the New York Mercantile Exchange.

Jet fuel has come down from its high of US$181.83 on July 3 to US$82.05 a barrel in Singapore yesterday.

Fernandes was speaking to the media after announcing the abolishment of fuel surcharges for international and domestic flights effective yesterday.

To compensate for the shortfall of its fuel levy income of RM47 per passenger, the airline is hoping to sell more seats.

It will keep its fares low and come up with new marketing strategies.

The airline also announced offering half a million free seats for the travel period from July to October 2009.

Fernandes said AirAsia’s forward bookings were still looking good, with a load factor of about 76%.

AirAsia drops fuel surcharge
By Adeline Paul Rajnews@nst.com.my



KUALA LUMPUR: Budget airline AirAsia Bhd has withdrawn the fuel surcharge on all its flights and is offering half a million free tickets in a move to woo travellers amid a global economic slowdown.

The fee waiver, effective yesterday, also applies to all long-haul flights operated by its unit, AirAsia X.

From now on, a traveller will pay only for the airfare, administration fee and airport tax when buying seats on the two airlines.

"This initiative recognises the current economic situation and the need to provide more affordable and transparent airfares for business and leisure travellers," AirAsia's group chief executive officer Datuk Tony Fernandes said yesterday.

He said the waiver was possible because oil prices had tumbled from recent highs. They soared to a record US$147 (RM530) a barrel earlier in July but have now eased to around US$60 a barrel.

Fernandes said the fuel surcharge, which was first implemented in July 2005, could be brought back if oil prices surged again.

AirAsia passengers used to pay an average fuel surcharge of RM47 on each sector, while AirAsia X's passengers paid double.

AirAsia will, from today, also offer passengers 500,000 seats with no airfare, for travel between June 22 and Oct 24, 2009, on all its domestic and international destinations. The promotion will last for five days.

Airlines around the world had, from last week, begun eliminating or cutting fuel surcharge in response to lower oil prices.

American Airlines, for example, eliminated surcharges on most of its domestic flights and reduced many others.

In Asia, Vietnam's national flag carrier, Vietnam Airlines, abolished fuel surcharge on all domestic routes from Nov 1.

Chris Eng, an analyst with OSK Research Sdn Bhd, said AirAsia's move was an indication that it was going all out to capture the market to utilise its rapidly expanding fleet.



While many airlines are cutting capacity amid a possible global recession, AirAsia is going right ahead with its expansion plans.

Fernandes said: "What we're doing is producing more routes and lowering our fares to fight our way out of this slowdown. We're optimistic we'll get through this."

The move to abolish the fuel surcharge would not hurt the airline's profitability as the low fares would stimulate new demand.

AirAsia and AirAsia X expect to carry some 20 million passengers this year, and even more next year.

The two airlines will also carry out some innovative programmes to make up for the loss of revenue.

Domestic Trade and Consumer Affairs Minister Datuk Shahrir Abdul Samad lauded AirAsia's move in abolishing the fuel surcharge.

"Anything that reduces costs to consumers and keeps money in their pockets gets my support. Optimism is what we need in these times, instead of grumbling and quarrelling."

Penurunan harga minyak jimatkan kos penerbangan
Oleh Azli Ayob
azliayob@bharian.com.my


http://www.bharian.com.my/Wednesday/Ekonomi/20081112001521/mainpix


AirAsia hapus surcaj bahan api, MAS turut kaji pengurangan

SEJAJAR dengan penurunan dalam harga minyak mentah dunia, orang ramai kini berpeluang untuk menggunakan perkhidmatan penerbangan pada kos lebih rendah.

AirAsia Bhd semalam mengumumkan menghapuskan surcaj bahan api ke atas semua penerbangannya berkuatkuasa serta-merta.

Syarikat penerbangan tambang murah itu turut menawarkan 500,000 tempat duduk percuma bagi menggalakkan lebih ramai orang menggunakan perkhidmatannya di tengah-tengah kelembapan ekonomi global.



Tempat duduk percuma yang tidak termasuk cukai lapangan terbang dan yuran pentadbiran itu ditawarkan mulai hari ini hingga 16 November ini bagi semua destinasinya di Asia untuk penerbangan antara 22 Jun hingga 24 Oktober 2009.

Penerbangan Malaysia (MAS) dalam kenyataannya pula berkata, ia sedang mengkaji kemungkinan mengurangkan lagi kadar surcaj bahan apinya selepas pengurangan antara 50 peratus hingga 73 peratus yang ditawarkan bagi tiket promosi tambang murahnya.

Ketua Eksekutif AirAsia Bhd, Datuk Seri Tony Fernandes pada sidang media mengumumkan penghapusan surcaj bahan api dan pemberian tiket percuma itu berkata, langkah berkenaan bertujuan mengurangkan beban pengguna dalam keadaan ekonomi yang agak sukar ketika ini.

http://www.bharian.com.my/Wednesday/Ekonomi/20081112001521/mainpix2

Ia juga, katanya, adalah sejajar dengan penurunan dalam harga minyak dunia.

Namun, beliau menjejaskan, meskipun surcaj bahan api dihapuskan, ia tidak bermakna AirAsia akan menaikkan kadar asas tambangnya bagi mengimbangi pengurangan pendapatan daripada surcaj bahan api itu.

"Harga tambang yang lebih murah akan menggalakkan lebih ramai orang menggunakan penerbangan AirAsia dan ini boleh mening-katkan pendapatan kami," katanya pada sidang media mengumumkan penghapusan surcaj bahan api di Kuala Lumpur, semalam.

Turut hadir, Menteri Perdagangan Dalam Negeri dan Hal Ehwal Pengguna, Datuk Shahrir Abdul Samad.

Tony berkata, dengan penghapusan surcaj bahan api, pelanggan AirAsia dan AirAsia X kini hanya perlu membayar harga tambang asas, cukai lapangan terbang dan yuran pentadbiran.

Langkah itu, katanya, menjadikan AirAsia syarikat penerbangan pertama dunia menghapuskan caj berkenaan yang diguna pakai industri penerbangan ketika harga minyak meningkat beberapa tahun lalu.

Bagaimanapun, katanya, AirAsia tidak dapat menjamin surcaj bahan api tidak akan diperkenalkan sekali lagi jika harga minyak meningkat pada masa depan.



Sementara itu, Pengurus Besar Kanan (Jualan) MAS, Datuk Bernard Francis dalam kenyataan dikeluarkan syarikat penerbangan kebangsaan itu berkata, MAS sedang mengkaji kemungkinan mengurangkan lagi kadar surcaj bahan apinya bertujuan memenuhi kehendak pelanggan yang memang mencari harga paling rendah di pasaran.

"Pelanggan sukakan penetapan harga pada kadar paling murah. Jualan kami meningkat sehingga 400 peratus susulan kempen promosi harga murah yang ditawarkan bagi penerbangan domestik, Asean, Australia dan lain-lain negara," katanya.

AirAsia set to close deal on purchase of 37 planes
By B.K. SIDHU


PETALING JAYA: As airlines globally struggle to get financing for future aircraft deliveries, AirAsia Bhd says it is close to finalising a deal worth close to RM3.5bil to fund the purchase of 37 new aircraft over the next two years.

Deputy group chief executive officer Datuk Kamarudin Meranun told StarBiz yesterday the airline had given Barclays Capital and BNP Paribas the mandate for the financing.

“It is an ECA-backed (export credit agencies) financing that would fund the next 37 aircraft for which delivery will begin on Dec 19,’’ he said.

“So far discussions have been held with ECA in Paris and we are now going through the documentation process. We hope to sign the financing agreement before the first delivery,’’ he added.

Asked about the borrowing rates, he said they “are very attractive.’’

AirAsia has ordered 175 aircraft with 50 under option. This year the low-cost carrier will take delivery of four more aircraft, followed by 14 next year and 23 in 2010.

AirAsia had debts of RM4.3bil as at end-June and cash reserves of RM1.1bil. The carrier’s net gearing is 1.9 times and analysts expect its gearing ratio to rise with the additional borrowings for the new deliveries.

The airline, which abolished its fuel surcharges on Tuesday, hopes to rev up revenue by selling more seats.

Market talk is that AirAsia, since abolishing its fuel levy, has raised its administrative fees by RM30 to RM70 one-way. This was denied by AirAsia group CEO Datuk Tony Fernandes.

“No, we have not increased our administration fees. It is still the same,’’ Fernandes said.

Daily flights to Melbourne during peak season


PETALING JAYA: AirAsia X will mount daily flights to Melbourne for the peak Australia tourist season from Dec 18 to Jan 16, up from four times a week currently.

In a statement to mark its inaugural flight to Melbourne, which touched down at 11.40am (Australian local time) yesterday, the airline said regular daily flights would commence in March next year.

Its CEO Azran Osman-Rani led a delegation that included chairman Datuk Seri Kalimullah Hassan and board members and Transport Minis*try secretary-general Datuk Zakaria Bahari on the inaugural flight.

The airline’s other Australian destinations are Perth (six return flights weekly) and the Gold Coast (four return flights weekly). It also operates five return flights each week between Kuala Lumpur and Hang*zhou and Shanghai in China.

AirAsia X set to make profits next year: CEO
Published: 2008/11/13


TOULOUSE (France): Long-haul budget carrier AirAsia X Sdn Bhd, which has well over RM300 million cash in hand, is set to turn in profits next year, says its chief executive officer Azran Osman-Rani.

“Probably within three to four months from operating our new planes, we will be profitable. With new planes, more passengers will fly,” Azran said.

“Most important is cash flow and this is how we convince our financiers. We have been cash positive since April 2008,” he said on board AirAsia X's brand new Airbus A330 aircraft on its ferry (first) flight from Toulouse to Kuala Lumpur recently.

On October 31, AirAsia X took delivery of its first new A330-300 costing US$200 million (RM704 million), which is for its long-haul operation, linking Kuala Lumpur with destinations in Australia, North Asia, the Middle East and Europe, complementing the existing AirAsia network.

Launched in January 2007, the affiliate of low-cost AirAsia Bhd earlier this year placed an order for 25 Airbus A330 aircraft.

Powered by Rolls Royce Trent 700 engines, the carrier's new A330 can seat 383 passengers in a two-class layout, with 355 in economy and 28 in the airline's new XL premium class. It is also equipped with the latest in-flight entertainment systems by Thales of UK.

Azran said the airline is also looking at local and foreign funds to finance the purchase of its 25 A330 planes, estimated at US$5 billion (RM17.6 billion). So far, financing for the first few planes had been secured.

Besides its positive cash flow, he said AirAsia's branding helped the long-haul airline to seek funds in markets which were already badly hit by the credit crunch.

“When we presented to financial institutions in August, we were very fortunate because financiers in Europe had confidence in our brand. We had AirAsia,” he said.

“End of August I was still in London. I was trying to convince the financiers. So much details you have to work through. Normally with aircraft financing you have to settle everything at least six weeks before delivery. We settled everything three and a half hours before take-off,” he said.

“October 2008 will always be remembered when the (stock) market crashed. The timing couldn't have been worse. Nobody was supposed to lend. Nature of banks is that they only make money when they lend at higher rates. If you (banks) don't lend, you don't make money.”

Despite reports of a global decline in passenger traffic, he said the carrier was still experiencing a strong forward bookings from November to March.

Azran said the second A330 will be delivered in mid-December, followed by three each in 2009 and 2010. The remaining planes are slotted for delivery up to 2013.

“With three planes next year, we can add five destinations. We hope to fly to Japan, Korea, China, India and at least one more somewhere else,” he said.

Azran said the carrier was on track to start its new flights to London in March. For its London flights, AirAsia X is in talks with three airports — Stansted, Manchester and East Midlands.

“We have made all applications and everything looks positive. Hope to announce our sales launch in a months time.

“UK will be exciting as so many people are waiting for it... students, families, friends. To me, what's exciting is not just UK, I am interested in getting new markets,” he said. - Bernama

AirAsia X mula terbang ke Melbourne



AIRASIA X, penerbangan tambang murah jarak jauh selamat tiba di Lapangan Terbang Melbourne, Australia pada jam 11.40 pagi kelmarin sempena penerbangan sulungnya dari Kuala Lumpur, menandakan bermulanya era baru pengangkutan udara antarabangsa antara Victoria dan Malaysia.

AirAsia X akan terbang di laluan menghubungkan Melbourne dengan Kuala Lumpur sebanyak empat penerbangan pergi balik seminggu menggunakan pesawat berbadan lebar A330-300.

Ketua Pegawai Eksekutif AirAsia X, Azran Osman Rani, berkata AirAsia X kini terbang secara kerap ke tiga destinasi di Australia termasuk Melbourne, Perth dan Gold Coast.

Katanya, syarikat itu turut beroperasi lima penerbangan pergi balik setiap minggu di antara Kuala Lumpur dan Hangzhou (Shanghai).

“Kami menjangka laluan ini akan menyumbang secara positif,” katanya ketika menjejakkan kaki di Lapangan Terbang Melbourne.

AirAsia secures financing for 37 planes
Published: 2008/11/14

AIRASIA Bhd, Southeast Asia’s biggest discount airline, said it has secured financing for 37 new planes, easing concerns about its ability to fund expansion plans.

The Airbus SAS aircraft are due to arrive over the next two years, chief executive officer Datuk Seri Tony Fernandes said in an e- mailed response to Bloomberg questions late yesterday.
He didn’t provide details on the Sepang, Malaysia-based carrier’s funding arrangements.

The funding may allay fears that AirAsia would be forced to slow its expansion because of a lack of financing. Analysts including K & N Kenanga Holdings Bhd’s Yeonzon Yeoh have said
that the carrier may struggle to raise funds because of the global credit crunch.

A daily said yesterday that AirAsia was close to signing a loan agreement valued at almost RM3.5 billion (US$974 million) to fund aircraft purchases. Barclays Capital and BNP Paribas were given the mandate for the financing, which will be backed by European credit agencies, the newspaper said, citing deputy chief executive officer Datuk Kamarudin Meranun.

The airline has 123 outstanding orders for Airbus A320s, according to the planemaker’s website. The carrier has already received 52 of the single-aisle planes. - Bloomberg

from blog airasia
http://blog.airasia.com/media/users/azranosmanrani/Airgo%20FX%20AirAsia%20030000.jpg

I cant understand AirAsia made so many options. First they wanted Subang. Then, they planned Malacca at 8 December. They left Malacca like never said before (????????). They discussed the LCCT with MAHB and blamed them. In the KLIA masterplan there would be a ne LCCT. And lastly, they wanted to build an airport at Labu.. ??????????????

Crazy I tell you. Tony Fernandez is everything choicer.

----------------------------------I hope stop making choice and just take the new LCCT------

I think for Labu's case is not Tony's problem but the proposal was suggested by the Stateman in charge there.

The Labu suggestion, i think is made by the MB of N9...

I think Airasia still loves Subang very much, haha....

I cant understand AirAsia made so many options. First they wanted Subang. Then, they planned Malacca at 8 December. They left Malacca like never said before (????????). They discussed the LCCT with MAHB and blamed them. In the KLIA masterplan there would be a ne LCCT. And lastly, they wanted to build an airport at Labu.. ??????????????

Crazy I tell you. Tony Fernandez is everything choicer.

----------------------------------I hope stop making choice and just take the new LCCT------

MAHB should just ignore Tony's request and concentrate on designing the new permanent LCCT at KLIA instead. It is long overdue. They should design for a 35 Mil capacity terminal w/ extra space for future expansion. Building a terminal elsewhere just doesn't make sense and too risky if one day Air Asia just says flying to Malacca or Labu is not profitable and decides to pull out. MAHB has to realize that over 90% of the budget air traffic is from Air Asia. Nobody is going to use Labu or Malacca terminal except AA.

Air Asia mungkin terbang ke Uzbekistan, kata Abdullah
18/11/2008 11:37am


TASHKENT (Uzbekistan) 18 Nov. – Datuk Seri Abdullah Ahmad Badawi berkata, AirAsia kemungkinan terbang ke Uzbekistan dalam usaha untuk mewujudkan hubungan udara antara kedua-dua buah negara.

Perdana Menteri berkata, beliau telah memberitahu Ketua Pegawai Eksekutif Kumpulan AirAsia Tony Fernandez mengenai perkara itu dan Tony bersetuju untuk mengkaji perkara itu secepat mungkin.

“Presiden Uzbekistan Islam Karimov mahu kita wujudkan satu hubungan udara dan saya rasa AirAsia dapat memainkan peranan itu kerana ia merupakan sebuah syarikat penerbangan tambang murah,” katanya kepada para wartawan Malaysia di sini pada hari ketiga daripada lawatan rasmi empat hari ke negara ini.

Pada masa ini, Uzbekistan Airways terbang dua kali seminggu ke Malaysia dan balik manakala Malaysian Airlines mengendalikan laluan itu melalui perkongsian kod dengan syarikat penerbangan tersebut.

Mengenai Memorandum Persefahaman (MoU) yang kurang dilaksanakan selepas ditandatangani di masa-masa yang lepas, Abdullah percaya iklim perniagaan di negara itu akan bertambah baik apabila ia meliberalisasikan lagi ekonominya. - Bernama

AirAsia privatisation still in the pipeline

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KUALA LUMPUR: Tune Air Sdn Bhd is still in negotiations with financial institutions and prospective investors to fund the potential privatisation of AirAsia Bhd, the low-cost carrier told Bursa Malaysia yesterday.

AirAsia said Tune Air was still negotiating the terms and conditions with the institutions and investors and would make an appropriate announcement when Tune Air had formed a firm intention on whether to proceed or not with the privatisation.

AirAsia had said last month that Tune Air was considering taking the carrier private at an indicative price of about RM1.35 per share, subject to change depending on the market conditions at the point of decision.

It said the options of how best to optimise and expand its operations were being developed and the privatisation option was subject to the availability of financing on acceptable terms from financial institutions and other potential investors, as well as conducive market and industry conditions.

The stock rose two sen to RM1.13 with over 2.4 million shares traded yesterday.

Air Asia mungkin terbang ke Uzbekistan, kata Abdullah
18/11/2008 11:37am


TASHKENT (Uzbekistan) 18 Nov. – Datuk Seri Abdullah Ahmad Badawi berkata, AirAsia kemungkinan terbang ke Uzbekistan dalam usaha untuk mewujudkan hubungan udara antara kedua-dua buah negara.

Perdana Menteri berkata, beliau telah memberitahu Ketua Pegawai Eksekutif Kumpulan AirAsia Tony Fernandez mengenai perkara itu dan Tony bersetuju untuk mengkaji perkara itu secepat mungkin.

“Presiden Uzbekistan Islam Karimov mahu kita wujudkan satu hubungan udara dan saya rasa AirAsia dapat memainkan peranan itu kerana ia merupakan sebuah syarikat penerbangan tambang murah,” katanya kepada para wartawan Malaysia di sini pada hari ketiga daripada lawatan rasmi empat hari ke negara ini.

Pada masa ini, Uzbekistan Airways terbang dua kali seminggu ke Malaysia dan balik manakala Malaysian Airlines mengendalikan laluan itu melalui perkongsian kod dengan syarikat penerbangan tersebut.

Mengenai Memorandum Persefahaman (MoU) yang kurang dilaksanakan selepas ditandatangani di masa-masa yang lepas, Abdullah percaya iklim perniagaan di negara itu akan bertambah baik apabila ia meliberalisasikan lagi ekonominya. - Bernama

i think politicians should back off when making such decision. let the business guy decide.

anyway, central asian market is unexplored, but better just stop to Tehran...and there, many regional airliners could connect to uzbek

AA will fly to Uzbek? Meaning AirAsia X right? Theres no way AA goes Uzbek. Your right oshkoshbgood .They could just stop at South Asia only.

AirAsia plans flights to Uzbekistan


AIRASIA is looking into the possibility of flying to Uzbekistan following a request by Datuk Seri Abdullah Ahmad Badawi .

The prime minister said AirAsia group chief executive officer Datuk Seri Tony Fernandes was receptive to the idea and assured him that he would make an immediate appraisal of the proposal.

Uzbekistan Airways flies twice a week between Tashkent and Kuala Lumpur on a code-sharing basis with Malaysia Airlines.

Fernandes said in Kuala Lumpur yesterday: "We are more than 70 per cent sure of going to Uzbekistan. We will make a trip there and if we can get the right rates such as airport charges, we will definitely operate flights."

Abdullah said the proposal to increase the frequency of flights between the countries was raised during his meeting with Uzbek President Islam Karimov.

He said having more flights would benefit both countries, especially in tourism.

Abdullah was speaking to reporters after a meeting with Karimov, during which both leaders witnessed the signing of three memorandums of understanding on cooperation in the areas of science and technology, higher education and development of human capital in the oil and gas industry.

Abdullah is leading a delegation which includes ministers in the Prime Minister's Department, Datuk Seri Nazri Aziz and Tan Sri Amirsham Abdul Aziz, Higher Education Minister Datuk Seri Mohamed Khaled Nordin, National Unity, Culture, Arts and Heritage Minister Datuk Ser Shafie Apdal and Petronas president and chief executive officer Tan Sri Hassan Marican.

The Malaysian delegation, including the prime minister's wife Datin Seri Jeanne Abdullah, left yesterday for Samarkand, a popular tourist destination.

In Kuala Lumpur, long-haul budget airline AirAsia X said it was studying the possibility of mounting flights to Central Asia, including Uzbekistan, as early as next year.

"We've been looking at (operating) new routes. We have looked at countries in Central Asia such as Uzbekistan and Kazakhstan, and will make a trip to Uzbekistan, probably in January, to meet officials there and explore possibilities for new routes," Fernandes told the New Straits Times yesterday.

"We think Uzbekistan has enormous tourism potential and people there will have a chance to come to Southeast Asia.

"We are proud the government has asked us (to establish the air link). \

"It shows the importance of AirAsia to the economy and that the country now has a choice (besides Malaysia Airlines)."

Fernandes also said the airline was "serious" about mounting flights to Uzbekistan but had been held back by a lack of aircraft.

AirAsia X has ordered 25 A330-300s planes from Airbus.

It recently took delivery of its first plane, with the second one arriving next month. Four planes will be delivered next year.

The airline has begun operations to Australia's Gold Coast, Perth and Melbourne, as well as Hangzhou in China.

It is scheduled to begin flights to London in March, and also plans to operate flights to Japan and the Middle East.

Teroka penerbangan ke Asia Tengah tahun depan


KUALA LUMPUR: Syarikat penerbangan tambang murah jarak jauh, AirAsia X, sedang meneliti untuk membuat penerbangan ke Asia Tengah, termasuk Uzbekistan, awal tahun depan.

Ketua Pegawai Eksekutif AirAsia, Datuk Seri Tony Fernandes, berkata AirAsia X sentiasa memandang jauh ke hadapan untuk meneroka kawasan baru di Asia Tengah seperti Uzbekistan dan Kazakhstan.

"Kami mungkin mengunjungi Uzbekistan Januari ini untuk menemui pegawai di sana bagi membincangkan peluang penerbangan ke sana," katanya kepada New Straits Times, semalam.

Beliau berpendapat Uzbekistan adalah potensi besar pelancongan dan memberi peluang kepada rakyat negara itu mengunjungi Asia Tenggara.

"Kami berasa amat bangga apabila kerajaan meminta kami berbuat demikian (melakukan hubungan udara ke sana). Ia menunjukkan bahawa pentingnya sumbangan AirAsia kepada ekonomi negara dan negara kini sudah mempunyai pilihan (selain Penerbangan Malaysia)," katanya.

Fernandes berkata, pihaknya memandang serius terhadap penerbangan ke Uzbekistan, tetapi tetap bergantung kepada kecukupan pesawat.

"Keyakinan kami lebih daripada 70 peratus untuk ke Uzbekistan. Kami akan ke sana untuk berbincang dan jika mendapat persetujuan kadar terbaik seperti caj lapangan terbang, kami akan beroperasi ke sana," katanya.

AirAsia X, baru-baru ini menerima penyerahan pesawat A330-300 yang pertamanya di Ibu Pejabat Airbus di Toulouse, Perancis dan penyerahan berikutnya pada bulan depan.

Pesawat baru itu antara 25 pesawat A330-300 baru ditempah AirAsia X bagi mengembangkan operasi jarak jauh yang sudah menghubungkan Kuala Lumpur ke destinasi Perth, Melbourne dan Gold Coast di Australia dan Hangzhou, China. Syarikat penerbangan itu juga merancang melabuhkan sayap ke Jepun dan Asia Tengah.

AirAsia gains most in 2 months on potential buyout

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KUALA LUMPUR: AirAsia Bhd climbed the most in two months after reiterating that its largest shareholder, Tune Air Sdn Bhd, is still considering buying out the carrier.

AirAsia gained as much as five sen to an intra-day high of RM1.18 in the morning before falling to a low of RM1.11 in the afternoon. The stock closed two sen higher at RM1.15, with more than 5.58 million shares done.

Tune Air, whose backers include AirAsia chief executive officer Datuk Tony Fernandes, said on Monday it continued to pursue a plan to take the airline private.

With the global economy entering a recession and Malaysia’s government forecasting the slowest growth in eight years in 2009, the proposal could meet challenges, analyst Juliana Ramli told Bloomberg.

“There are major hurdles to a privatisation — the increase in debt, the weaker economic outlook and the tightening credit conditions,” Juliana, a Hwang-DBS Vickers Research analyst, said by phone. She has a “fully valued” rating on AirAsia.

Tune Air is still in talks with financial institutions and potential investors to fund a buyout, AirAsia said in a statement on Monday after the stock exchange closed. Tune Air owns about 31% of AirAsia, according to Bloomberg data.

AirAsia said on Oct 7 that the “indicative” price for a potential buyout was RM1.35 for each share. AirAsia stock closed at RM1.27 on that day.

The potential offer is “still quite low,” even compared to today’s prices, said Ramli at Hwang-DBS. Malaysia’s government expects domestic economic growth to slow to 3.5% in 2009 from about 5% this year.

Meanwhile, Bernama reported Prime Minister Datuk Seri Abdullah Ahmad Badawi as saying in Tashkent that AirAsia may fly to Uzbekistan in a move to establish air links between the two countries. He said he had informed Fernandes on the matter and the latter had agreed to study it as soon as possible.

“Uzbekistan President Islam Karimov wanted us to establish air linkages and I think AirAsia could play that role as it is a low-cost carrier,” Abdullah who is on a third-day of the four days official visit to this country told Malaysian journalists, here.

At the moment, Uzbekistan Airways flies twice a week to Malaysia and vice-versa while Malaysia Airlines cooperated with the airline through code-sharing basis.

Malaysia Air Asia
by xibei

http://farm4.static.flickr.com/3030/2965546675_9b2e9539c5_b.jpg

AirAsia plans flights to Uzbekistan
NST Online » Frontpage
2008/11/19

AIRASIA is looking into the possibility of flying to Uzbekistan following a request by Datuk Seri Abdullah Ahmad Badawi .

The prime minister said AirAsia group chief executive officer Datuk Seri Tony Fernandes was receptive to the idea and assured him that he would make an immediate appraisal of the proposal.

Uzbekistan Airways flies twice a week between Tashkent and Kuala Lumpur on a code-sharing basis with Malaysia Airlines.

Fernandes said in Kuala Lumpur yesterday: "We are more than 70 per cent sure of going to Uzbekistan. We will make a trip there and if we can get the right rates such as airport charges, we will definitely operate flights."

Abdullah said the proposal to increase the frequency of flights between the countries was raised during his meeting with Uzbek President Islam Karimov.
He said having more flights would benefit both countries, especially in tourism.

Abdullah was speaking to reporters after a meeting with Karimov, during which both leaders witnessed the signing of three memorandums of understanding on cooperation in the areas of science and technology, higher education and development of human capital in the oil and gas industry.

Abdullah is leading a delegation which includes ministers in the Prime Minister's Department, Datuk Seri Nazri Aziz and Tan Sri Amirsham Abdul Aziz, Higher Education Minister Datuk Seri Mohamed Khaled Nordin, National Unity, Culture, Arts and Heritage Minister Datuk Ser Shafie Apdal and Petronas president and chief executive officer Tan Sri Hassan Marican.

The Malaysian delegation, including the prime minister's wife Datin Seri Jeanne Abdullah, left yesterday for Samarkand, a popular tourist destination.

In Kuala Lumpur, long-haul budget airline AirAsia X said it was studying the possibility of mounting flights to Central Asia, including Uzbekistan, as early as next year.

"We've been looking at (operating) new routes. We have looked at countries in Central Asia such as Uzbekistan and Kazakhstan, and will make a trip to Uzbekistan, probably in January, to meet officials there and explore possibilities for new routes," Fernandes told the New Straits Times yesterday.

"We think Uzbekistan has enormous tourism potential and people there will have a chance to come to Southeast Asia.

"We are proud the government has asked us (to establish the air link). \

"It shows the importance of AirAsia to the economy and that the country now has a choice (besides Malaysia Airlines)."

Fernandes also said the airline was "serious" about mounting flights to Uzbekistan but had been held back by a lack of aircraft.

AirAsia X has ordered 25 A330-300s planes from Airbus.

It recently took delivery of its first plane, with the second one arriving next month. Four planes will be delivered next year.

The airline has begun operations to Australia's Gold Coast, Perth and Melbourne, as well as Hangzhou in China.

It is scheduled to begin flights to London in March, and also plans to operate flights to Japan and the Middle East.

Strong bookings to fuel AirAsia's revenue
By Presenna NambiarPublished: 2008/11/20

http://www.btimes.com.my/articles/ptony/pix_bottom


AirAsia Bhd (5099) is poised for a record fourth-quarter revenue, driven by a blistering pace of bookings for its flights.

"I think bookings are at a record pace ... it's such a record pace that our computer systems crashed on the first day," AirAsia chief executive officer Datuk Seri Tony Fernandes told Business Times in Kuala Lumpur yesterday.

The airline industry is not in good shape as a slowing global economy has hurt demand for travel amid high fuel prices.

Although this is changing, falling fuel prices present another problem as airlines had locked in prices with hedging contracts to deal with price volatility. This means that carriers could be stuck with hedging losses.

AirAsia's second-quarter net profit plunged almost 95 per cent due mainly to foreign exchange losses and its third-quarter numbers are not out yet.
Fernandes, however, expects the airline to remain profitable this year, despite provisions and costs which will be incurred.

AirAsia will make provision for losses from the collapse of Lehman Brothers investment bank.

"We had a trade (on fuel) with them (Lehman Brothers) and some money outstanding, I don't think we are going to get it back, but we would have paid for it anyway," he said.

That, together with hedging losses, which even Fernandes admits will be heavy, will be quite a sum. However, he declined to reveal any figures.

"We'll take the loss now to be clean in 2009. Over the next two to three months we will recover it," he said.

On the budget carrier's position on hedging, Fernandes said its principle has always been that if the airline can hedge 100 per cent, it will do it to take the risk out.

"It's at what point you hedge really ... it's a very tricky situation now, because people are saying oil might go down to US$30 (RM108.30) a barrel, logically it should be US$40 to US$50 (RM144.40 to RM180.50) per barrel but I really don't know, because recession hasn't really even started yet," he said.

Meanwhile, in a separate statement, AirAsia announced that BNP Paribas and Natixis Transport Finance, the lead arrangers, global coordinators and book runners of AirAsia, have been able to secure a US$336 million (RM1.2 billion) syariah-compliant French Single Investor Ijarah, for the financing of up to eight Airbus 320-200 aircraft.

This is the first Islamic French-Malaysian optimised transaction of its kind.

Purchase of each aircraft is through a mix of euro-denominated equity, a US dollar-denominated investment agency agreement, Wakala from Islamic financiers and a US dollar-denominated Wakala granted by AirAsia and refinanced by a ringgit-denominated commodity - Murabaha.

Above a cost-efficient 100 per cent financing structure, the Islamic Ijarah ensures that AirAsia's capital and investment allowances are preserved.

"This unique structure has not only allowed us to continue to enjoy overall competitive financing terms for our aircraft purchases, especially under the current market situation, but also encouraged the innovation and creativity in structuring Islamic products and promote the development of aircraft financing in Malaysia with the participation of RHB Islamic and Bank Rakyat.

"AirAsia is privileged to have this partnership with BNP Paribas and Natixis. Their commitment and support is evident from the very first A320 delivery in 2005, which was also arranged and financed by them," said AirAsia deputy group chief executive officer Datuk Kamarudin Meranun.

Financing for AirAsia privatisation almost sealed
By JOSEPH CHIN


PETALING JAYA: While AirAsia Bhd’s major shareholders are nearing completion of a deal to finance the privatisation of the company, the airline managed to secure a US$336mil syariah-based financing package for eight aircraft.

Sources said the airline’s major shareholder, Tune Air Sdn Bhd, was likely to announce a general offer next week.

The indicative offer price is said to be RM1.30 to RM1.35 a share. The arranger was said to be CIMB Bhd, which was leading a consortium of banks for this deal.

Earlier this week, AirAsia told Bursa Malaysia that Tune Air was still negotiating the terms for the financing needed to take AirAsia private.

It will cost Tune Air RM2.14bil to RM2.22bil to buy the remaining stakes in the airline that it does not have. Tune Air now has 30.72% stake in AirAsia.

The other substantial shareholders of AirAsia are the Employees Provident Fund with 8.87% (210.57 million shares), T. Rowe Price Associates 6.01%, Nomad Investment Partners 5.83% and Fidelity World Investment 4.96%.

The sources said the privatisation of the low-cost carrier was the right move as the market had undervalued the company.

Its share price closed two sen lower at RM1.13 yesterday. This was 9.6%, or 12 sen, below its initial public offer of RM1.25 to institutional investors when it was listed in November 2004. The offer price to retail investors was at RM1.16.

AirAsia’s 52-week high was on Dec 3 last year at RM1.94, while it hit a 52-week low of 76.5 sen on June 25.

The sources said there was more upside for AirAsia, which is flying more than 100 routes. Over the past six years of operation, it had carried over 50 million passengers and expanded its fleet from just two aircraft to 70.

The recent plunge in crude oil price was also a positive factor for the airline. Crude oil price had skidded from a historic high of US$145 per tonne on June 11 to US$54 yesterday.

Of the 21 research houses covering AirAsia, four had a “buy” call, five others had a “hold” recommendation and the remaining 12 recommended a “sell”, according to Bloomberg data.

According to Bloomberg consensus, AirAsia’s pre-tax profit was estimated at RM99.89mil for the financial year ending Dec 31 (FY08) and RM178.42mil for FY09.

Yesterday, BNP Paribas and Natixis Transport Finance said they had closed a US$336mil syariah-compliant financing for AirAsia’s acquisition of up to eight Airbus 320-200 aircraft.

According to a joint statement, BNP Paribas and Natixis were the lead arrangers, global coordinators and book runners for the financing, which is the first Islamic French-Malaysian transaction of this kind.

“Above a cost efficient 100% financing structure, the Islamic Ijarah ensures that AirAsia’s capital and investment allowances are preserved,” the statement said.