Tony already said - they are not competing in the same market as MAS. AirAsia is catering to a different market segment (in terms of affordability).

Btw, I thought AirAsia only operates from Low Cost Terminals?

LCCT? i thought they always use main terminal like Changi terminal 1 and Suvarnabhumi Airport despite Changi have a Budget terminal and Bangkok have Don Mueng (old BKK airport now use by nok air and one-two-go).:ohno:

when MAS entering AA market, they will be blame for competing with LCC. but when AA entering MAS market, AA say that they cater for different market in term of passenger affordability.

Whatever it is, Air Asia is definitely eating into MAS's market. Air Asia, being a more efficient organisation, deserve the right to fly to all destinations. MAS needs a competitor. They have been too inefficient and complacent in the way they conduct their business.

Thumbs up for Air Asia, who has benefited so many passengers worldwide already.

AirAsia is definitely in MAS market already. It's quite sad for MAS as more n more Malaysians in Australia are now catching AA's affordable flights.

I want AA to fly to San Francisco, San Diego, Chicago, Miami, Philadephia and Washington DC. :)

Whatever it is, Air Asia is definitely eating into MAS's market. Air Asia, being a more efficient organisation, deserve the right to fly to all destinations. MAS needs a competitor. They have been too inefficient and complacent in the way they conduct their business.

Thumbs up for Air Asia, who has benefited so many passengers worldwide already.

see... whatever AA do is noble.:bash:

AA is an efficient company heh? ->AirAsia reported a 2008 net loss of MYR471.7 million ($128.3 million), reversed from a MYR697.6 million profit in 2007

MAS is inefficient? -> The national carrier said that net profit in the three months to December fell 81 percent to 46 million ringgit (12.5 million dollars) from 241.9 million ringgit a year ago.

For the full year, it posted net profit of 244 million ringgit, down from 851.4 million ringgit in 2007, and well short of its earnings target of 400-500 million ringgit for 2008.

so...which company is efficient now based on the report in 2008?

i don't say that AA can't fly to those places in US. but i think it's better if we support both of our airlines. MAS and AA is actually cater for different passenger.

AirAsia plans to borrow RM3b next year
Published: 2009/04/01





AIRASIA Bhd, Southeast Asia’s largest low-cost carrier, plans to borrow RM3 billion (US$822 million) next year to help pay for 24 new planes.

The money is on top of the estimated RM2.1 billion already lined up for 14 planes this year, Mohshin Aziz, AirAsia’s head of investor relations, said by phone. The Wall Street Journal reported the plan earlier today.

AirAsia plans to expand its fleet as the region’s economic growth fuels travel demand. Air travel in the Asia-Pacific region, excluding within China, may grow 6.2 per cent a year on average until 2027, according to Boeing Co.

AirAsia is also negotiating with Malaysia Airports Holdings Bhd, which operates the country’s airports, for lower charges including landing fees at a planned new low-cost terminal at Kuala Lumpur International Airport, Aziz added. - Bloomberg

AirAsia plans more flights to Singapore
By Jeeva Arulampalam Published: 2009/04/01


SINGAPORE: Budget carrier AirAsia Bhd (5099) hopes to operate up to 50 daily flights to Singapore from Malaysia, Thailand and Indonesia within the next two years, almost double the daily flights it has now.

It plans to add flight frequencies to its existing routes, including to bump up its Kuala Lumpur-Singapore daily flights to 12 from the current seven, and introduce new routes between the island-city and the three countries.

AirAsia currently has 10 routes connecting Singapore and is looking to introduce at least three new routes this year, which include Penang and Langkawi in Malaysia and Medan and Surabaya in Indonesia.

"We expect to carry some two million passengers to and from Singapore in 2009, compared with 1.4 million in 2008," group chief executive officer Datuk Seri Tony Fernandes said after officially launching its latest four new routes between Indonesia and Singapore yesterday.

Inaugural flights between Singapore and Indonesian cities of Jakarta, Bandung, Yogyakarta and Bali started last week, recording forward bookings of 80,000 so far.
"These new routes signify our effort in realising the open-skies policy. Despite the economic uncertainties, Indonesia still recorded the largest number of tourist arrivals to Singapore among Asean countries," said Indonesia AirAsia chief executive officer Dharmadi.

Fernandes said many Singaporeans were keen to fly to Penang and Langkawi, and the airline would be able to ply those routes as soon as it gets the official green light from the authorities.

Business Times reported last week that the Cabinet had granted permission to AirAsia to fly to Singapore from Penang in addition to Langkawi, Sandakan and Tawau.

Fernandes also told Malaysian reporters later, that Singapore was seen more importantly as a contributor to enhancing its network.

"There was a time when Singapore would have been seen as a larger revenue contributor but because we have diversified our revenue streams by flying to China, India and Indonesia, it is not as big a contributor," he added.

Fernandes also said that its long-haul sister carrier AirAsia X will start flying to Japan by year-end or early next year and added that it will be sponsoring a Japanese sports team to make its mark there.

AirAsia plans flights to Chengdu, Xian
Published: 2009/04/02



LOW-COST carrier AirAsia, which took off on its
inaugural flight to Tianjin this morning, plans to fly to Chengdu and Xian this year as part of its expansion into China.

AirAsia group chief executive officer, Datuk Seri Tony Fernandes, said the airline will have 10 destinations to China this year, attracting over two million passengers from China, Malaysia and Southeast Asia.

Tianjin is the seventh route into China for AirAsia, which has been named the world's best low-cost carrier by Skytrax, the UK-based consultancy which conducts research on commercial airlines.

Currently, AirAsia's other routes to China include Macau, Hong Kong, Guangzhou, Shenzhen, Hangzhou, Guilin and Haikou.

Located in northeast China, Tianjin is the country's sixth-largest city.

"China is crucial to AirAsia’s expansion plan towards becoming a major player in connecting Malaysia and the greater Asean region to East Asia," Fernandes said during the launch of the Kuala Lumpur-Tianjin inaugural flight today.

The event was witnessed by Transport Minister Datuk Seri Ong Tee Keat.

"Despite the gloomy economy, China would remain an important trading and economic partner for Malaysia and the Asean region," Ong said.

"We remain optimistic, we have a great first quarter. Passenger numbers are up significantly," he said.

Fernandes said was thrilled that AirAsia was chosen as the world's best low-cost carrier as the award came much earlier than he expected.

Ong said the flights to Tianjin would attract more tourists from China and bring further stimulus to the local economy.

He also said there were also efforts underway to explore new routes.

"It is my job under the Transport Ministry to get more rights to liberalise the air services sector (and) India is on our radar," Ong said.

However, he added, it was the responsibility of the industry players to ensure flying these routes were sustainable and able to meet the needs of people. -- Bernama

AirAsia chief elated with US award
By GLADYS TAY


SINGAPORE: Multiple award winner Datuk Seri Tony Fernandes is particularly enjoying the prestigious Laureate Award in the Commercial Air Transport category that he won recently in Washington DC mainly because it is from the United States.

The award that recognises exceptional strategy, heroism and leadership in aviation, aerospace and defence was presented by US-based global aviation publisher Aviation Week on March 3.

The AirAsia chief executive officer said it was very difficult for Malaysians to be recognised in the US because the media was concentrated there and in England, thus the companies there (the US) would get a lot more coverage than a Malaysian company.

“When people talk about Asia, they think of China, India and Japan but not Malaysia, so we have to work much harder to get noticed,” he said after the launch of four new AirAsia routes from Singapore to Indonesia on Monday.

Fernandes added that the reward was a little more prestigious than the rest because famous people in the industry had also received it.


Datuk Seri Tony Fernandes

Among them, he said, were Herbert Kelleher of Southwest Airlines and Sir Freddie Laker, who was one of the first airline owners to adopt the no-frills airline business model.

However, he quickly attributed his winning to his wonderful team and to Malaysians whom he referred to as “those who had been giving a great amount of support” to the airline.

“I can’t get an award without fantastic staff. I am just the head of the company. So, it is great for AirAsia and also great for Malaysia,” he said, adding that Malaysians should be proud about a Malaysian company being recognised in the US as an airline that had revolutionised air travel in the world.

He also said the award helped in its brand awareness in the US and thought it had a very good change of entering the market soon.

Fernandes had certainly proved his winning worthwhile by being able to expand AirAsia and continue to create more jobs in a time when many other businesses were seeing red.

“As long as there are people there, there is always business. It’s just how you do to capture that business,” he said.

AirAsia Now "The New Girl" In Singapore


SINGAPORE, March 31 (Bernama) -- "The new girl has finally arrived. She's twice the fun and half the price". Don't be mistaken and be easily excited about the cry. It is not about a girl coming to town and soliciting for customers.

It is actually the newly revived tagline of low-cost carrier AirAsia for its promotion drive to sell its inaugural air services departing from Singapore to four Indonesian cities of Jakarta, Bandung, Yogyakarta and Bali.

AirAsia group chief executive officer (CEO) Datuk Seri Tony Fernandes was here today together with AirAsia Indonesia CEO Dharmadi to reveal the suggestive catchphrase.

Speaking at the grand launch of the new routes, Fernandes said the tagline was first advertised in the local newspapers in 2004 to introduce AirAsia then, except that the old first phrase began with "There's a new girl in town", and he was thrilled by the long journey (seven years) he took to establish the airline's presence in the city state.

He said since the new air services began operation exactly a week ago (March 24), AirAsia managed to sell over 90,000 seats for the four Indonesian routes.

Fernandes said with the latest Indonesian flights, and flights from the Malaysian cities of Kuala Lumpur, Kuching, Kota Kinabalu, as well as Bangkok and Phuket in Thailand, AirAsia was now operating 20 flights daily into Singapore.

AirAsia hoped to more than double the number to 50 flights daily in next two years when the frequency of the existing routes were increased and more new air routes to the city-state were established, he said.

The new routes the airline is looking at are Penang and Langkawi in Malaysia as well as Medan and Surabaya in Indonesia.

Fernandes said AirAsia was expecting to carry a total of two million passengers to and from Singapore this year.

The AirAsia CEO was optimistic when asked whether the ongoing economic recession would eventually clip the wing of the airline, saying he was positive about the matter as the company's growth was not slowing down.

According to him, AirAsia was bucking the trend as the performance of the company for the first quarter of this year was good, and he expects the positive results to continue in the successive remaining quarters.

Fernandes said what mattered most was that AirAsia must continue "to provide better value, ease of travel with good connectivity and high quality of services" to its passengers as these were what they were looking for.

He said that "AirAsia's latest Indonesia-Singapore link forms the final piece of our network jigsaw puzzle as it resembles the importance of AirAsia network, making it the most powerful in Asia".

Fernandes said AirAsia also planned to operate into Japan either by the end of this year or in the first quarter of 2010, adding that the airline would sponsor a Japanese sports team to stamp its mark there.

The four direct scheduled flights from Singapore operate twice daily to Jakarta, and daily to Bali, Bandung and Yogyakarta.

-- BERNAMA

AirAsia To Operate Flights From Batu Berendam Airport


MELAKA, March 31 (Bernama) -- Budget airline, AirAsia, will be asked to use aviation facilities at the newly-upgraded Batu Berendam Airport from May 1, Chief Minister Datuk Seri Mohd Ali Rustam said today.

Mohd Ali said he will meet AirAsia chief executive officer Datuk Seri Tony Fernandes soon on the matter.

The airport, given a RM131.5 million facelift, can be used from mid-April.

It can accommodate Boeing 737 aircraft and Airbus at half-load, he told reporters after inspecting work progress at the airport.

Upgrading work by Konsortium Uni-Integrated started in April 2007 to facilitate health tourist arrivals, particularly from Sumatra, who number close to 60,000 a year.

The airport will have a 7,000 square metre new terminal and will be equipped with facilities to receive domestic and international flights.

Mohd Ali said facilities for full load landing by Boeing and Airbus are expected to be ready in October, with the runway extended by 400 metres to 2,200 metres from 1,800 metres.

Fernandes, after a meeting with Mohd Ali in August last year, had said for a start AirAsia had identified six destinations -- four in Sumatra and two domestic -- from the airport.

Boeing aircraft will be used to land and take off for Palembang, Pekan Baru, Padang and Medan in Sumatra, Penang and Langkawi.

Fernandes however told the state government AirAsia's passenger and cargo planes will use the Batu Berendam Airport only at full load capacity.

Mohd Ali said the airport can handle 1.5 million tourists and rake in RM1 billion revenue when it is fully operational.

The Batu Berendam Airport, the country's first health tourism airport, has plans to handle flights from Indonesia, the Philippines, Thailand and Hong Kong, he added.

-- BERNAMA

AA is an efficient company heh? ->AirAsia reported a 2008 net loss of MYR471.7 million ($128.3 million), reversed from a MYR697.6 million profit in 2007


din you read the reason on the lost before you shoot?

they purchased those aircraft by loan. so, they need to pay back the huge loan...making their profit shrink. it is normal for business.

din you read the reason on the lost before you shoot?

they purchased those aircraft by loan. so, they need to pay back the huge loan...making their profit shrink. it is normal for business.

loss is still loss.... profit is still profit.

.... i'm just wonder how a making loss compay can be labelled as an efficient company? while a profit company continously being humiliated by people.:nuts:

i wonder, has AK pay back their debt to MAHB?

1 more thing, why AK use main terminal in Changi? i think Changi has a Budget Terminal.

^^^^RM177m Q4 loss for AirAsia
By Jeeva ArulampalamPublished: 2009/02/28


Budget carrier AirAsia Bhd (5099) made its second consecutive quarterly loss of RM176.9 million for its fourth quarter, as it took a hit from an exceptional item loss of RM426 million.

Group chief executive officer Datuk Seri Tony Fernandes said the loss was attributed to AirAsia completely unwinding all its remaining fuel hedges and some of its interest rate swap (IRS) derivative structures.

But by doing so, Fernandes said, AirAsia will be better positioned this year to deal with oil prices having fallen and lending rates reduced.

"If we cut our losses now, we will recover very quickly if oil prices remain around US$40 per barrel. Also, we fixed our IRS at 3.25 per cent to 5.2 per cent for roughly 12 years two years ago, not anticipating the current global situation," Fernandes said in a conference call with analysts yesterday.

He remains bullish on AirAsia's outlook, expecting a 15 to 20 per cent increase in AirAsia passengers for 2009 due to routes expansion to China, India and Singapore.
"We will also launch aggressive promotional campaigns and enhance customer service delivery to counter the weak global economy. The focus is on maintaining high load factor, driving ancillary income and expanding market share," he said.

The aim is to increase ancillary income contribution from nine per cent to 15 per cent in relation to overall revenue contribution.

Revenue for the three-month period ended December 31 2008 grew 32 per cent to RM838.3 million from RM632.7 million one year ago.

This was due to higher passenger volume by 21 per cent to 3.3 million and higher contribution from ancillary income by 78 per cent to RM73.8 million

Its core operating profit doubled to RM194 million compared with the previous corresponding period.

For the first time since its listing in 2004, AirAsia posted a net loss of RM471.7 million for its full year ended December 31 2008 due to losses of RM641 million in unwinding its fuel and IRS derivatives structures.

This was a 167 per cent plunge from its net profit of RM697.6 million a year ago.

"In relation to fuel, we are now completely un-hedged for 2009. We will ride the market this year and if we do hedge for 2010, it will be clean vanilla swaps," Fernandes said.

Revenue for the full year grew 37 per cent to RM2.64 billion as passenger volume grew 22 per cent to 11.8 million. Its load factor for last year was 75 per cent.

AirAsia expects it affiliates Thai AirAsia, Indonesia AirAsia and AirAsia X to perform better this year and contribute positively to the group.

Meanwhile, Fernandes said he is optimistic that operating costs in the soon-to-be-built permanent low-cost carrier terminal (LCCT) will be lower.

AirAsia has had five meetings with airport operator Malaysia Airports Holdings Bhd (MAHB) so far on the new LCCT, to be built at the Kuala Lumpur International Airport in Sepang.

"We are confident we will resolve our discussions with MAHB within the next week or so," he said.

Efficiency is not just about profit-making, it's about the overall performance of the decision makings of the company. The rocketed fuel price last year possessed more threats to low-cost carriers in which a few of them had already gone bust. MAS is considered as inefficient all these while because it is not performing as well as it could. AirAsia's choice of making losses now to unwind all of its fuel hedges and interest rate swaps is the right choice. Since it has gone through the hardest period last quarter and the oil price is so low now, the company is regaining its competitive advantage now and have a bright future ahead.

Efficiency is not just about profit-making, it's about the overall performance of the decision makings of the company. The rocketed fuel price last year possessed more threats to low-cost carriers in which a few of them had already gone bust. MAS is considered as inefficient all these while because it is not performing as well as it could. AirAsia's choice of making losses now to unwind all of its fuel hedges and interest rate swaps is the right choice. Since it has gone through the hardest period last quarter and the oil price is so low now, the company is regaining its competitive advantage now and have a bright future ahead.

for me it's unfair justification. when MAS having losses, everybody say MAS inefficient, crap etc. then i use the fact that AK also having losses in 2008, then you say not only profit-making made a company justified as efficient. it's all about overall performance.

MH win the ’World’s Best Cabin Crew’ by Skytrax, UK consecutively from 2001 till 2004, and again in 2007. It is also one of only six airlines worldwide to be accredited a ’5-Star Airline’ by Skytrax, an accomplishment it has achieved for three consecutive years, 2006-2008. not enough? ok, profit is not the only measurement for efficiency, but we all know how MH suffer from losses in 2005. now the loss making company has come back to gain profit, even when all time cherish airlines AK having losses

even when the time where many airlines bankrupt. even BA having losses. so, is that not enough for MH to not to be humiliated anymore? i have no problem if you guys like AK so much. i know, it's budget airlines anyway. everyone now can fly. those who cannot fly in their childhood can now use aircraft to go hometown.

now, anybody can answer me. why AK use terminal 1 instead of budget terminal? they keep complaining MAHB, they want lower price.. but then when they have chance to use a budget terminal, they choose to use main terminal. is Changi main terminal fees lower than main terminal KLIA? i thought KLIA has the most cheapest fees in the region.

AirAsia plans flights to Chengdu, Xian
Published: 2009/04/02

LOW-COST carrier AirAsia, which took off on its inaugural flight to Tianjin this morning, plans to fly to Chengdu and Xian this year as part of its expansion into China.

AirAsia group chief executive officer Datuk Seri Tony Fernandes said the airline will have 10 destinations to China this year, attracting over two million passengers from China, Malaysia and Southeast Asia.

Tianjin is the seventh route into China for AirAsia, which has been named the world's best low-cost carrier by Skytrax, the UK-based consultancy which conducts research on commercial airlines.

AirAsia's other routes to China include Macau, Hong Kong, Guangzhou, Shenzhen, Hangzhou, Guilin and Haikou.

Located in northeast China, Tianjin is the country's sixth-largest city.

"China is crucial to AirAsia’s expansion plan towards becoming a major player in connecting Malaysia and the greater Asean region to East Asia," Fernandes said during the launch of the Kuala Lumpur-Tianjin inaugural flight in Sepang today.

The event was witnessed by Transport Minister Datuk Seri Ong Tee Keat.

"Despite the gloomy economy, China would remain an important trading and economic partner for Malaysia and the Asean region," Ong said.

"We remain optimistic, we have a great first quarter. Passenger numbers are up significantly," he said.

Fernandes said was thrilled that AirAsia was chosen as the world's best low-cost carrier as the award came much earlier than he expected.

Ong said the flights to Tianjin would attract more tourists from China and bring further stimulus to the local economy.

He also said there were also efforts under way to explore new routes.

"It is my job under the Transport Ministry to get more rights to liberalise the air services sector (and) India is on our radar," Ong said.

However, he added, it was the responsibility of the industry players to ensure flying these routes were sustainable and able to meet the needs of people. -- Bernama

AirAsia X looks to raise funds
By B.K. SIDHU


The airline may make an IPO or place out shares



Azran Osman-Rani
SEPANG: AirAsia X is looking at a capital-raising exercise via an initial public offering (IPO) or a private placement to raise funds for future aircraft purchases.

The airline wants to add the Airbus A350 XWB wide-body aircraft to its fleet but any firm order will only be made after the manufacturer is able to firm up delivery dates.

“This year is a watershed year for us in terms of profitability. Our equity value has increased and so have our intangibles. This opens up avenues for equity funding and, in the long term, an IPO or even a private placement is possible,” chief executive officer Azran Osman-Rani told StarBiz.

“It will be when the equity markets turn around and this could be in 2010. Our equity value gives us more capital-raising capabilities and our audited results will have a very compelling story to tell,’’ he said.

It is learnt that investment bankers are already crunching numbers for the airline’s IPO but Azran laughed it off when asked to elaborate.

The last time AirAsia X placed out shares was at the end of 2007/early 2008, to British billionaire Sir Richard Branson, Japanese leasing firm Orix Corp and Bahrain-based Manara Consortium, to raise funds to start up its operations.

http://biz.thestar.com.my/archives/2009/4/3/business/1-airasiacht.JPG

AirAsia X is confident of turning in net profit of RM150mil to RM200mil for the current year ending Dec 31 on revenue of about RM1bil. With this revenue, Azran said, the company would join the ranks of many firms making up the KL Composite Index.

The income will come mainly from its mature routes, such as Gold Coast and Hangzhou, and its profit margins are 20% to 30%. Its cost is low at 2.8 US cents per available seat kilometre and, despite the global slowdown and a slump in air travel, Azran said the airline enjoyed load factors of 75% for the first three months of 2009. For 2008, it was 77%.

Its recently launched London route will only be profitable in a year.

To order new aircraft requires a deposit. “We would be in a position next year (for that). We will have more capital for the deposit,’’ Azran said, adding that he was looking at 25 to 50 A350s as “our’s is an even bigger story going forward’’ and expansion of long and medium-haul routes would be its thrust going forward.

Since flying to London, it has had several US airports knocking on its doors. For Azran, it will be either New York or Los Angeles. The airline would be ready “as early as July’’ to ply the transatlantic route, especially New York, he said, provided it obtained the rights. If not, it should be later this year or 2010.

That should come with a stopover in London but a direct flight is Azran’s dream, which can only be achieved with a long-range aircraft, thus the need for the A350.

A highly-efficient, medium-capacity and long-range aircraft, the A350 is expected to take to the air in 2013. Thus far, Airbus has received over 400 orders.

“We are in extensive discussions with the manufacturer but it is no point placing an order now as the maker cannot firm the delivery dates. We want to see sufficient development to the A350 assembly line, then there will be certainty to commit,’’ he said.

The aircraft will be used to ply the American and African continents, Russia and eastern Europe. The existing A330 and A340 will be used for new routes to Sydney, the Middle East and part of its expansion into Asia.

“This (order of 25 to 50 aircraft) is nothing, look at what other airlines, such as Qatar Airways, are ordering – 100 planes at one go! By going into long-haul markets, AirAsia X will be competing with the bigger boys in the industry and it needs a fleet size to support that route expansion,’’ Azran said. (See also B4)

AirAsia X set for more rapid growth
By LEONG HUNG YEE


SEPANG: AirAsia Bhd’s long-haul sister airline, AirAsia X, which has been busy opening new routes over the past month, is expected to continue its rapid pace of growth.

Barely a month ago, AirAsia X celebrated its inaugural Kuala Lumpur-London flight. Yesterday, AirAsia X took off to another new destination, Tianjin in China.

AirAsia group chief executive officer Datuk Seri Tony Fernandes said the group, which launched its pioneer flight to China via its Kuala Lumpur-Macau route in 2004, would fly to 10 destinations in the republic this year, starting with Chengdu and Xian soon. The group’s other China destinations include Hong Kong, Guangzhou, Shenzhen, Hangzhou, Guilin and Haikou.


“China is crucial to AirAsia’s expansion plan to become a major player in connecting Malaysia and the greater Asean region to East Asia,” Fernandes said at yesterday’s launch of AirAsia X’s maiden flight to Tianjin by Transport Minister Datuk Seri Ong Tee Keat.

Ong said the flights to Tianjin would attract more tourists from China and further stimulate the local economy. “This is not going to be the only new mainland China route that AirAsia is flying to. There are several sectors more.”

He said there were ongoing efforts to explore new routes and negotiations for third, fourth and fifth landing rights for Malaysian carriers.

“It is my job in the transport ministry to get more rights to liberalise the air services sector. India is on our radar,” Ong said.

However, he said, it was the responsibility of the industry players to ensure that these routes were sustainable and able to meet the needs of people.

Ong said the Kuala Lumpur-Tianjin route would help foster stronger bilateral ties between Malaysia and China.

Fernandes, meanwhile, remained optimistic on the group’s business.

“We have had a great first quarter. Our passenger numbers are up significantly and our cost per available seat kilometre is down due to the lowered fuel prices,’’ he said. “Over the past one month, we’ve opened 10 new routes and employed 500 people. Even in the darkest days of the economy, we’re providing jobs.”

Fernandes also announced that AirAsia had been named the world’s best low-cost carrier for 2008 by Skytrax, a Britain-based consultancy.

Fernandes said he was thrilled because the award came much earlier than he expected. “I am really happy to be voted as the world’s best after seven years (in operations).”

Malacca-AirAsia talks

By CHEN PELF YEEN


MALACCA: The Malacca government is set to hold talks with AirAsia in the next two weeks to look at the possibility of the low-cost carrier using the extended Batu Berendam Airport by December.

Chief Minister Datuk Seri Mohd Ali Rustam said the RM131mil project to upgrade the airport was almost completed with operations scheduled to begin in mid April.

“Work to extend the runway will be carried out and completed in October.

“Once this is done, the airport can handle Airbus A-320 and Boeing 737s with full passanger load,” he told reporters after visiting the project site in Batu Berendam on Tuesday.

This is because the extended 1.8km runway will be able to cater only to half-loaded planes as it is currently short of the 2.135km length needed for fully-loaded planes. This, however, will change in October with the additional extension.

Mohd Ali said the state would hold a second round of talks with AirAsia to persuade the company to use the airport in May, although the runway would be able to take only half-loaded planes until the runway extension was completed.

Last August, the state held talks with AirAsia on the use of the airport as a low-cost carrier hub, particularly to promote medical tourism.

However, AirAsia chief executive officer Datuk Tony Fernandez agreed in principle only to use the airport on six routes, with special packages promoting Malacca and Penang as World Heritage Site destinations.

The routes would also cover Langkawi and Indonesian destinations such as Medan, Pekan Baru, Palembang, and Padang.

Following this, the state requested an additional RM62mil from the Federal Government for further extension of the runaway.

Meanwhile, Mohd Ali said that Riau Air would be among the first airlines to use the airport when the new terminal opens later this month.

Besides being crucial for tapping Malacca’s World Heritage Site status, the airport would boost medical-tourist arrivals, which totalled over 60,000 last year.

Making a big din
By DARYL GOH


With the newly-acquired London route, Air Asia X took the opportunity to crank up the volume with their first rock ‘n’ roll trip – a sold-out Metallica concert at the 02 Arena. Ear-plugs not included.

LET’S get it straight from the outset: Air Asia X and a sold-out Metallica concert in London have very little in common. Think again. The former is a low-cost, long haul carrier breaking all the rules in the commercial aviation world while the latter is possibly the biggest, baddest heavy metal band on the planet. But if you need “to make some serious noise and hit the masses with something edgy, exciting and loud,” as the airline’s CEO Azran Osman Rani aptly puts it, then a Metallica gig at the 02 Arena in London would be just what the sandman ordered.

Just as well, then. With Air Asia X making history by being the first Asian budget airline to fly to London on March 11, there was every reason for them to be amped up. This was quite a feat – flying cheap as chips to London.

Early last month we saw Duke of York Prince Andrew, a host of Tourism Malaysia corporate suits and local travel writers wheeled out on the Stansted Airport tarmac in London to celebrate the airline’s maiden flight from this new destination.

Along came the grey business column inches, stiff photo calls and mentions in the broad sheets about this Air Asia X coup. But this bit of corporate news probably didn’t register just as much with the rock ‘n’ roll bloggers, young upstarts and gung-ho traveller types on a mission to party around the world.

Time to make a statement. Move over, Prince Andrew. Make way for James Hetfield, Lars Ulrich, Kirk Hammett and RobTrujillo – who, essentially, are rock royalty in their own right.

Metallica, as we all know, will be inducted into the Rock and Roll Hall of Fame in the United States this weekend.

But let’s not get distracted here. This is more about Air Asia X, with their CEO in tow, lining up an unconventional trip to catch Metallica in concert at the 02 Arena last Saturday, and to do as Azran noted “the crazy weekend thing.” That’s right — fly 26 hours return to London to watch a gig and get home for work in KL the following Monday.

Jet-lag, be damned. This was the local entertainment media being put to the ultimate test, no sleep till London ... or should we say, the 02 Arena.

It was a mad dash like no other, to the Metallica gig. Our entourage hit rainy Stansted at 4pm, got chucked into a waiting van and we had to snake our way through the London weekend snarl to get to the meet-and-greet session with Metallica at 7pm.

Barely time to catch our breath, but with the 02 Arena heaving with over 19,000 metal fans and freaks, you just knew you had arrived at Metallica wonderland.

The opening treats of the evening were Texan stoner rock outfit The Sword and, of course, the mighty Machine Head, a scorching proposition of a band to burn your eyes out.

The 02 Arena was steadily loading up. You name it, they had it: overweight Bob the Builder types, spiky back-pack toting Goth metal fans and balding Californian yuppie expats looking to relive their six-pack frat party years.

All of the crowd, whether with their Scandinavian accents or east London-bred brashness, were up for a wild night and here to watch Metallica play the same venue, the third time in six months! Each concert was a sold-out affair.

Metallica may have made some bad albums for a while, but their fan-base hasn’t diminished at all. And how the faithful have been rewarded with last year’s return-to-form album Death Magnetic, which not only picked up two Grammy awards but is also filled with primal noise and big music made out of these now sober heads.

For this LA-based group that has been around for nearly 28 years, this sort of connectivity with the fans has long been a trade secret. The recent rehab years for Hetfield, the tell-all soap opera movie made by the band and the sluggish spell for Metallica look to be well and truly over.

The band might have been hammering a square peg into a round hole with their previous three albums, but with their new material, the veterans have come full circle – getting back to that sort of hot, tight and fast metal mayhem not heard since Reagan was in the White House.

“We’re here to kick your a**, and we hope you kick ours too,” shouts Hetfield as he hits the stage, which is built “in the round” style to accommodate more fans and allows for closer proximity for the pumped up masses.

Amid blinding laser lights, the frontman was in high spirits, stalking the stage with guitar in hand and creating an almighty ruckus from the start. Just three songs into the show, and there is already a steady wave of meathead fans ejected by bouncers for being overzealous in the mosh-pit area.

Classics like Harvester of Sorrow, ... And Justice for All and the pyromania-laden One, filled with a fountain of massive flames on stage, had the apocalyptic atmosphere going in the venue. This was the sound of bulging veins in full effect, and the crowd’s collective pulse went into overdrive.

Present day material was the preferred choice of the night with the setlist running through five cuts from the new album, especially The End of the Line and Judas Kiss which left fans hanging on to every sinister note.

It’s also good to know that with a career of 100 million albums sold, Metallica has laid to rest the smoke machine.

This concert was slick and well-orchestrated with 3m tall flames shooting up stageside while four giant Death Magnetic coffins lowered ominiously on cables from the venue’s ceiling making for an awesome sight.

The rest of the band, especially bassist Trujillo and guitarist Hammett twisted and jerked themselves around on stage, throwing rock star shapes and looking feral.

They milked it the most from the crowd hysteria when Sad But True, Master of Puppets and Enter Sandman were unleashed.

With eight mikes across the large stage, it was left to Hetfield to assume the ringmaster’s role, charging down the corners and engaging the rampant masses.

Ulrich, on the other hand, was intent on inflicting some serious damage on the drums.

After a two-hour assault on the senses, the band’s consistency and energy remained incredible and outstanding – right from the first track That Was Just Your Life to the blistering Seek and Destroy, the 18th and final salvo of the evening that nailed shut a great black night out for the fans.

Metallica made their goodbyes count, returning to the stage to throw guitar picks and kick giant black beach balls to each side of the stage. Hetfield reached for the mike and roared a big “thank you, London!” and promised to be back soon.

That would necessarily mean summer rock action and Metallica’s headlining slot at the inaugural Sonicsphere festival in Knebworth, England in early August. At least, we now have more lead time to pre-book those Air Asia X flights to London, ensuring the jet-lag is sorted out. But as for the whiplash ...

Browse www.airasia.com for the KL-London travel schedules.

Airasia wins "World's Best Low Cost Airline"
Published: 2009/04/03





AIRASIA took Skytrax's "World's Best Low Cost Airline" award in a ceremony held at the Aircraft Interiors Expo 2009 in Hamburg, Germany on Wednesday.

In a statement here today, AirAsia said the award, given by Skytrax under the 2009 World Airline Awards, was handed to AirAsia following a survey which lasted eight months, covering interviews with more than 16.2 million travellers.

It said the award followed the final results of the annual World Airline Survey by Skytrax between August 2008 and March 2009 and which had respondents from diverse nationalities.

The survey evaluated passenger satisfaction for an airline's products and service standards.

AirAsia said the highly regarded award, also dubbed as the "travellers' choice", has cemented its competency in providing excellent and value-for-money services through its incessant innovations and trend-setting measures.

"The award marks a major milestone for AirAsia as the award is acknowledged the world over and the only award to be conferred based on independent judgements of our very own guests," said Datuk Seri Tony Fernandes, AirAsia's group chief executive officer.

Meanwhile, Skytrax chief executive officer, Edward Plaisted said the dramatic growth of low cost airlines across the world in the past two years has made the award won by AirAsia as one of the most fiercely contested under the Skytrax awards.

London-based Skytrax, established in 1989, are specialist research advisors to the air transpot industry. -- BERNAMA

AirAsia capitalising on low interest rates
By Jeeva ArulampalamPublished: 2009/04/06



Budget carrier AirAsia Bhd (5099) will continue to unwind some of its interest rate swaps (IRS) this year to take advantage of current low interest rate, says its top official.

"We are looking to get rid of some of our IRS. By unwinding the IRS and fixing at a lower rate, you save a lot of money over 12 years," its group chief executive officer Datuk Seri Tony Fernandes told Malaysian reporters in Singapore recently.

He said it was better for the airline to endure short-term pain now to enable it to fare better in the long term.

According to a Bursa Malaysia filing, the airline entered into IRS contracts, of which some are capped, to hedge against fluctuations in the US-Libor (London Interbank Offered Rate for US dollars) rates on its existing and future aircraft financing for deliveries between 2005 and 2009.

The airline pays a fixed interest rate of between 3.25 per cent and 5.20 per cent over a period of 12 to 14 years.
"Right now, the 12-year curve is at three per cent and we generally fixed at five per cent. But who could have predicted how low rates would fall?" he said.

Fernandes added that AirAsia no longer has fuel hedges to unwind.

For its fourth quarter ended December 31 2008, AirAsia posted losses due to an exceptional item loss of RM426 million, attributed to the unwinding of its fuel hedges and some IRS derivative structures.

Fernandes said he was cautiously optimistic about the airline's outlook, adding that AirAsia had a good first quarter in terms of sales.

"At the moment, demand looks good and the trend indicates that we will do well. But I will be a fool to say that I'm 100 per cent (sure of the future) because who knows what is around the corner," he added.

Meanwhile, Fernandes said the airline is in the dark about Malaysia Airports Holdings Bhd's development plans for a low-cost carrier terminal (LCCT) in Penang.

"We don't know what's happening but we definitely need a LCCT to build a hub in Penang," he said.

He said that the incoming (federal) government should look closer at the economical impact of tourism and airport connectivity on the country.

"We should look at how much Singapore has made from being a hub and how much the UK has made from having great airports. There needs to be a clear definitive aviation policy for airports here," he added.

AirAsia flies high in global arena
Published: 2009/04/06




AIRASIA Bhd group chief executive officer Datuk Seri Tony Fernandes is thrilled that the low-cost carrier has reached global heights as a Malaysian brand, with him receiving the Laureate Award recently.

Fernandes, who was the recipient of the Laureate Award in the Commercial Air Transport category, attributed the award to AirAsia's staff for their dedication.

"Fernandes was chosen for his tireless efforts to build the AirAsia brand into one of the most recognisable in Asia-Pacific, while always maintaining its successful low-cost model. We would also like to give a nod to Tony for being one of the more charismatic leaders in the airline industry," said Aviation Week deputy managing editor Jennifer Michels in a statement.

The Annual Laureate Awards recognises exceptional strategy, heroism and leadership in aviation, aerospace and defence.

AirAsia to fly Langkawi-Singapore route soon


SUNGAI PETANI: Direct flights between Langkawi and Singapore by AirAsia will take off soon.

Transport Minister Datuk Seri Ong Tee Keat announced yesterday that the Government had given approval to the low-cost carrier to operate the route.

He said the move would boost tourism and the economy in Langkawi.

“We will leave it to AirAsia to assess the situation and decide on the frequency of flights,” he told reporters after a dialogue with Chinese non-governmental organisations yesterday.

On March 7, 15 Chinese associations in Langkawi called on the Government to allow AirAsia to fly direct between the two destinations to help the resort island weather the current economic storm.

Langkawi MCA division chief Datuk Chen Liau Weng, who made the appeal to Ong, said direct flights were crucial as he claimed that the Kedah government had not been promoting tourism.

In Kuala Lumpur, AirAsia group chief executive officer Datuk Seri Tony Fernandes was elated that the airline had been voted the world’s best low-cost carrier by British-based consultancy group Skytrax.

He said the award was special as it had put a Malaysian brand on the world aviation map again.

“We have won numerous awards but this one is very special. Even though AirAsia is a low-cost carrier, it has high quality products.

“AirAsia can be an inspiration to other Malaysian companies that they, too, can excel in anything and be the best on the world,” Fernandes said yesterday.

Skytrax presented the award to AirAsia during the Aircraft Interiors Expo 2009 in Hamburg, Germany, earlier this month.

The award was conferred based on the results of the annual World Airline Survey by Skytrax, conducted between August 2008 and March this year from respondents of diverse nationalities.

“We are very honoured to triumph over other low-cost carriers like Ryanair, EasyJet and Southwest Airlines,” he said.

AirAsia stood out based on the good performances of its cabin crew, pilots and ground staff.

now, anybody can answer me. why AK use terminal 1 instead of budget terminal? they keep complaining MAHB, they want lower price.. but then when they have chance to use a budget terminal, they choose to use main terminal. is Changi main terminal fees lower than main terminal KLIA? i thought KLIA has the most cheapest fees in the region.

Only 2 airlines are using the Budget Terminal in Singapore; Tiger Airways and Cebu Pacific. Jetstar Asia and Air Asia are using the main terminals. Having interned at the airport before, I can tell you that some budget airlines prefer to be at the main terminal for connectivity issues as well as for the amenities for their passengers.

The Budget Terminal at Changi is separated into an Arrival Hall and a Departure Hall. Therefore if anyone wants to catch a connecting flight, he/she has to come out first, go through the customs and then go in again, through the customs + security check.

The Main Terminal on the other hand is "mixed" (shared area for arrival and departure, security check only when entering gate hold rooms). There are lots of shopping and activities to do, and passengers can move freely between all 3 main terminals. This is also more convenient for connectivity purposes.

As for the "terminal fees" that you mention, yes KLIA is cheaper than Changi, but I don't know how much KLIA LCCT charges.

AirAsia probably is trying to complaining to ask MAHB to cut down costs just because they think they are doing a great service to the nation and deserves that. Hehe... business people, we never know what they are thinking about. See how they "threatened" MAHB with KLIA East @ Labu?

AirAsia To Present RM10,000 Weekly Cash Prizes


KUALA LUMPUR, April 7 (Bernama) -- Airasia is giving away cash prizes worth RM10,000 or S$5,000 weekly for it customers residing in both Malaysia and Singapore for travel via AirAsia and AirAsia X.

In a statement, AirAsia said those who book seats at www.airasia.com or mobile.airasia.com from between April 6-26 this year for travel between May 5 this year and July 31, 2010, stand a chance of winning the cash prizes.

According to AirAsia, a condition is that the booking must be made in Malaysian ringgit or Singapore dollar.

A lucky winner will then be randomly selected by the system every week to receive the cash prize, it added.

Its regional head of commercial, Kathleen Tan said the cash prizes are a special reward for customers who have been supporting AirAsia and enabling it to receive the World's Best Low Cost Airline award from Skytrax.

AirAsia will award three winners from April 6- 26. The first weekly winner will be announced on April 13 with the second and third on April 20 and 27 respectively.

The winners would be announced online at www.airasia.com.

http://www.airasia.com/nl/images/2009//flywin_pic_my.gif

Stand a chance to take home RM10,000 weekly
when you purchase a flight between 6 - 26 April 2009 on airasia.com or mobile.airasia.com

http://www.airasia.com/nl/images/2009/award_skytraxx.gif

http://www.airasia.com/nl/images/2009/recruit_pic.jpg

If you’re looking for an exciting career that will take you places, join our Commercial Team for the career of your lifetime!


• Are you a creative thinker?

• Are you passionate?

• Are you a team player?

• Do have a sharp business mind?

• Do you strive on pressure?

• Do you have a burning desire to succeed?

• Are you outgoing?

• Are you ambitious?

• Can you multi-task?

• Are you a self-starter?

• Do you love travel?

• Are you an adrenalin junkie?


If you think you're what we're looking for, apply now for a rewarding career with us!

Logon to jobs.airasia.com to apply. (Apply before 16 April 2009)
International applicants are encouraged to apply. Only shortlisted candidates will be notified.

Positions available
Marketing Manager
Marketing Executives
Mobile Marketing Specialist
earch Engine Specialist
Interactive Marketing Specialist
Ancillary – Marketing Executive
GoHoliday Business Development Executive
and many more


We’re on the look-out for individuals who fit this description,
• Happy, fun personality
• Inexhaustible smile
• Boundless energy
• Genuine interest in customer service
• Fluent in English & Bahasa Malaysia
• Good communication skills
If you’re interested to be our Flight Attendant, come talk
to us!

Venue : Renaissance Kuala Lumpur Hotel
Room : Function Room 3
Registration : 9.00am – 4.00pm
Date : 18 April 2009

Akaun AirAsia Saver dijangka raih deposit RM350 juta

http://www.utusan.com.my/pix/2009/0410/Utusan_Malaysia/Korporat/ko_01.1.jpg
NAZIR Razak (dua dari kiri) bersama-sama Tony Fernandes (kanan) menunjukkan maskot CIMB Clicks sambil diperhatikan oleh Peter England (kiri) pada majlis pelancaran Akaun AirAsia Savers CIMB Bank di Bangunan CIMB, Kuala Lumpur, semalam.

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



KUALA LUMPUR 9 April - CIMB Bank dijangka meraihkan deposit antara RM300 juta hingga RM350 juta bagi akaun AirAsia Savers pada akhir tahun ini.

Akaun AirAsia Savers yang dilancarkan hari ini adalah hasil perjanjian strategik antara CIMB Bank, AirAsia Bhd. dan Tune Money Sdn. Bhd.

Ketua Perbankan Runcit CIMB Bank, Peter England berkata, pihaknya menjangka produk baru itu mampu menarik 150,000 pemegang akaun.

''AirAsia Savers adalah satu-satunya akaun yang membolehkan pelanggan memberi kepentingan sama rata untuk melancong dan menyimpan.

''Akaun ini memberikan kadar faedah sebanyak dua peratus setahun termasuk pengembalian tunai sebanyak RM5 jika pengguna mengekalkan purata baki bulanan berjumlah RM5,000 tanpa melakukan transaksi di kaunter bank," katanya.

Beliau berkata demikian kepada pemberita selepas melancarkan Akaun AirAsia Savers CIMB Bank, di sini hari ini.

Turut hadir, Ketua Eksekutif Kumpulan CIMB, Datuk Seri Nazir Razak; Ketua Pegawai Eksekutif AirAsia, Datuk Seri Tony Fernandes dan Ketua Pegawai Eksekutif Tune Money, Joyce Lai.

Nazir berkata, CIMB Bank memilih untuk berkerjasama dengan AirAsia kerana kedua-duanya mempunyai matlamat yang sama, iaitu mewujudkan jenama dan produk ASEAN.

''Semalam, saya meminta para Ketua Pegawai Eksekutif CIMB Bank di Thailand, Indonesia dan Singapura untuk berbincang dengan AirAsia melakukan replikasi produk ini di pasaran mereka.

''Kami sedang menilai persepsi pasaran terhadap produk berpotensi supaya dapat bekerjasama melancarkan produk itu di pasaran ASEAN," ujarnya.

Ditanya sama ada langkah penggabungan 60 cawangan CIMB Bank di seluruh negara bertujuan mengurangkan para pekerja, Nazir menegaskan, bank tersebut tidak akan membuang pekerja tetapi tenaga pekerja hanya ditempatkan semula di cawangan yang dikekalkan.

Katanya, langkah itu adalah sebahagian Pelan Rasionalisasi Cawangan Fasa ke-3 yang telah dimulakan sejak penggabungan Bumiputera Commerce Bank dan Southern Bank pada 2006.

''Ini bukan penutupan tetapi penggabungan. Apabila penggabungan berlaku pada 2006, kami memiliki lebih 400 cawangan dan beransur-ansur menjadi 385 cawangan pada fasa pertama, 365 (fasa kedua) dan kini 320 cawangan (fasa ketiga).

''Kami masih lagi membuka cawangan baru, langkah ini hanya mengoptimumkan rangkaian cawangan dan bukan semata-mata berasaskan keputusan ekonomi," jelasnya.

Sementara itu, Fernandes berkata, pihaknya menjangka produk baru itu akan memberi nilai tambahan ke atas penumpangnya.

''Kami masih optimis berdepan dengan kelembapan ekonomi berikutan bilangan penumpang bagi suku pertama telah meningkat sehingga 21 peratus," katanya.

AirAsia tawar dua tiket



AIRAsia menyediakan peraduan yang menawarkan dua tiket pergi balik ke London dan penginapan tiga hari dua malam serta dua pas ehsan Universal Music bagi menonton konsert U2 di London pada 14 Ogos.

Dalam kenyataan di Kuala Lumpur semalam, syarikat penerbangan tambang murah itu menyatakan peraduan itu sebahagian inisiatif AirAsia sempena pelancaran kempen jenama serantaunya, “World’’s Best Low-Cost Airline“ dengan tema bersesuaian iaitu “Have You Flown AirAsia Lately?“.

Kempen itu bermula semalam.

Bagi menyertai peraduan itu, penumpang perlu menyelesaikan teka teki yang dipaparkan setiap dua hari dalam ‘facebook’ AirAsia mulai semalam.

AirAsia X Yet To See 50 Percent Landing Rebate


By Saraswathi Muniappan

KUALA LUMPUR, April 16 (Bernama) -- AirAsia X is still waiting for implementation of the 50 percent rebate on landing charges as announced in the second economic stimulus package, chief executive officer Azran Osman-Rani said today.

AirAsia X, an associate of AirAsia Bhd with shareholders such as the Virgin group and AirAsia, is a low-cost long-haul airline launched in January 2007.

"We are hopeful and waiting for any kind of notification," Azran said when asked if the airline was already benefiting from the rebate.

Any cost reduction will ultimately benefit the customers and more people will be encouraged to travel, he told Bernama here today.

Under the RM60 billion second stimulus package announced by the government last month, the rebate will be given for two years, effective April 1, 2009, to all airlines operating from Malaysia.

The move is mainly to attract more tourists, particularly from abroad, as part of the concerted efforts to encourage more airlines to operate from Malaysia.

-- BERNAMA

Firefly, Airasia Likely To Get New Routes


KUALA LUMPUR, April 17 (Bernama) -- The decision by Malaysia and Singapore to further liberalise air travel between them is expected to benefit low-cost carriers -- Firefly and AirAsia -- when the new traffic rights take effect in June, sources said.

Under the new agreement, which was announced by the Singapore Transport Ministry on Wednesday, carriers from both countries would operate between Singapore and six new destinations in Malaysia and vice versa.

The destinations are Ipoh, Kuala Terengganu, Kuantan, Malacca, Sandakan, and Tawau apart from allowing more flights to Penang, Langkawi, Kuching and Kota Kinabalu.

So far, the Malaysian government has not decided which airline would get to fly the new destinations.

Aviation observers said the existing two low-cost carriers -- Firefly and AirAsia -- were likely be given the routes.

"Firefly is likely to be given permission to fly the Singapore-Ipoh, Singapore-Terengganu, Singapore-Malacca and Singapore-Kuantan and existing Singapore-Penang routes which are already served by other airlines," industry sources told Bernama.

He said Firefly, however, would probably not get the Singapore-Tawau and Singapore-Sandakan routes as its turbo-prop ATR-72 aircraft were not suitable for long-distance flights.

The source said AirAsia would also likely to pick up most of the six routes.

However, he said, it would be up to the Malaysian government to decide on the frequencies and the airline or airlines to fly or share the new routes.

Both airlines had applied to the Transport Ministry for permission to fly the new routes, he said.

Industry sources said Firefly officials recently met with the Civil Aviation Authority of Singapore.

It is believed that Firefly planned to use Changi Budget terminal as its base if it were offered the routes.

Wednesday's decision by the two countries to lift air restrictions was expected to benefit travellers and further boost the economies of both countries which started after several rounds of liberalisation last year.

In February, Tiger Airways, Jetstar Asia and AirAsia were given the green light to operate a limited number of Singapore-Kuala Lumpur services.

All the restrictions on the route would be lifted in December.

In November last year, the two governments also opened up the Singapore- Sabah and Sarawak sector, allowing flights from Singapore to Kuching, Miri and Kota Kinabalu and vice-versa.

The liberalisation of Singapore-Malaysia air links is part of a wider initiative to free the Association of South-East Asian Nations skies.

Transport ministers of the 10-member grouping had agreed on a long-term road map that will see the creation of a Asean single aviation market by 2015.

When that happens, all carriers of member states will be able to criss-cross the region's skies without any restrictions.

-- BERNAMA

Air links for more Sabah towns
By RUBEN SARIO


KOTA KINABALU: Budget air carrier AirAsia and other airlines can begin operating direct flights between Singapore and Sandakan and Tawau in June, Datuk Seri Ong Tee Keat said.

The Transport Minister said this followed the successful conclusion of landing rights talks between officials of both countries on Tuesday.

Direct flights from Singapore are certain to boost the economy of these two towns, particularly in the tourism sector, he said after a three-hour dialogue with Sabah Chinese community leaders at the Kian Kok Middle School here yesterday.

Ong said the new air links were not only aimed at attracting more Singaporeans to Sabah but foreign travellers on transit in the island republic as well.

He said it would be up to the respective airlines to determine the frequency of the flights between Singapore and the two towns known as the gateways to Sabah’s wildlife and diving havens.

Late last year, Ong had announced direct flights between Singapore and Kota Kinabalu, Miri and Kuching. These flights are operated by AirAsia.

On the dialogue, Ong said various issues under the purview of the Federal and Sabah governments were raised at the meeting including those involving education, social issues and matters affecting his ministry.

He said Sabah Chinese community leaders also handed a memorandum containing wide ranging concerns and issues to him at the meeting.

“We will study the memorandum and will seek the assistance of the relevant ministries to respond to the points raised,” he said.

He added that the business community from Sandakan and Tawau had also highlighted to him their concerns over a move to make the Sepanggar port near here a shipping hub whereby containers from the peninsula would be barged to the east coast towns.

AirAsia to fly to at least 6 more cities
Published: 2009/04/20





Low-cost carrier AirAsia is making huge expansion in Asia this year, flying to at least six more cities in India, Colombo in Sri Lanka and Taipei from either Kuala Lumpur or Bangkok.

According to industry sources, the airline is expected to start the Kuala Lumpur-Taipei route in June and Kuala Lumpur-Colombo sector in August.

"More destinations will be added, both in India and China, once new planes arrive. There will be new destinations from both Kuala Lumpur and Bangkok," the sources said.

Thai AirAsia chief executive officer Tassapon Bijleveld confirmed recently that Thailand's popular resort island Phuket would become the airline's second hub in the Kingdom after Bangkok.

He, however, declined to disclose the planned routes although it is believed that Hong Kong would be the first destination.

From September onwards, AirAsia, voted the best low-cost carrier by London-based consultancy group, Skytrax, is expected to fly to Chennai and Hyderabad from Bangkok once Thai AirAsia receives more new Airbus from its European maker.

The sources said AirAsia's long-haul airline, AirAsia X, is likely to fly to several more routes from Kuala Lumpur to India, namely its capital New Delhi, business hub Mumbai, IT City Bangalore, Amritsar in Punjab and Kochi, the second biggest city in Kerala.

The airline, which had advertised for station managers in the seven Indian cities, now flies from Kuala Lumpur to Tamil Nadu's Tiruchirappalli City since last December.

Last week, AirAsia X launched the Kuala Lumpur to Tianjin flight and is planning to fly to Chengdu and Xian soon. Other cities in China served by AirAsia include Macau, Hong Kong, Guangzhou, Shenzhen, Hangzhou, Guilin and Haikou.

AirAsia, which started with only two planes eight years ago, now has over 75 planes and flies to 65 destinations. - Bernama

yeah yeah!!! can't wait for KL-Taipei route...:banana:

AirAsia X to increase flights to London
Published: 2009/04/21




STARTING from July 1, AirAsia X will fly daily to London from Kuala Lumpur, up from five times a week, due to strong demand, especially from business travellers and students.

The higher frequency comes four months after its maiden flight.

“We knew this service would be popular but to increase the requency so soon is beyond our expectations,” chief executive officer Azran Osman-Rani said in a statement.

AirAsia to go big in India
By B.K. SIDHU


But it needs to solve issues with MAS over flights to four cities

PETALING JAYA: The AirAsia group plans to venture into India in a big way but it has to first address some issues with Malaysia Airlines (MAS) over flights to four major cities there, said AirAsia group chief executive officer Datuk Seri Tony Fernandes.

The four cities are Delhi, Mumbai, Hyderabad and Bangalore, currently serviced by MAS.

“Our growth momentum should not be stopped,” Fernandes told StarBiz. “Ideally, we would like to fly to as many cities as we can, pending us getting the rights. But not the four (cities) because there are some issues with MAS. The four (cities) may be possible next year.”

Datuk Seri Tony Fernandes

The issues concern royalties and free and discounted tickets, which are arrangements MAS has with Air India for the four cities.

However, AirAsia can wait till Jan 1 to fly into the four cities if it does not want to share costs as the MAS/Air India agreement lapses by Dec 31, 2009.

But there is nothing to stop AirAsia plying other routes into the Indian subcontinent this year as long as it gets the rights to do so.

The rights may be pending, with Fernandes saying, “We have been warmly welcomed by the Indian government as they see us bringing tourism and economic benefits.

“We have always said that we will first focus on Malaysia, then South-East Asia and China. Our expansion into India will be this year and the next and India is going to be a very big growth story for us.”

Given the issues with MAS, Fernandes said AirAsia would ply the Kochi, Coimbatore, Trivandrum and even Colombo and Maldives routes this year.

“Our experience with the first flight to Tiruchirappalli City since December has been very good and our focus will be more of the South Indian points,” he added.

As for AirAsia X, the long-haul budget airline is still toying with the idea to ply the Bangkok-Amritsar route this year.

Dehli and Mumbai will be part of AirAsia X’s route expansion plan while Hyderabad and Bangalore will be plied by AirAsia next year, according to Fernandes.

Daily flights between KL-Stansted from July


PETALING JAYA: From July 1, AirAsia X will have daily flights between London Stansted and Kuala Lumpur.

AirAsia X, which now has such flights five times a week, said the daily service was due to high passenger demand.

In a statement released yesterday, the airline said it was offering a one-way fare from as low as RM499 through online booking beginning yesterday to tomorrow at www.airasia.com.

It is for the travel period beginning July 3 to Jan 31 next year.

The statement said the KL-Stansted flight was quickly turning KL into a regional hub connecting three continents, with Australians flying into the Malaysian capital and connecting on AirAsia X to London.

“From KL, people are choosing from over 122 AirAsia routes,” said AirAsia X chief executive officer Azran Osman-Rani.

“We are offering an affordable and alternative version of the ‘Kangaroo Route’ all the way from London via KL to Melbourne, Perth and the Gold Coast in Australia.”

AirAsia will start sellling KL-Taipei route starting from tonite from RM101. Sales from 24-26 April for flying period from July 1 till 31 Jan ;)

^^^WOW REALLY?!!!!!

That's good news! Btw, lama tak nampak ni. Hehe

AirAsia will start sellling KL-Taipei route starting from tonite from RM101

:hilarious:

duh tak sabar nak fly gi Colombo nih
dengar kata Maldives pun nak mula ek

Hello all!
I'm keen to fly Air Asia X from PER-KUL-SIN and return this Christmas/New Year season. The prices available for these segments to travel May -> October 2009 are excellent - but will I be just as impressed come the end of the year? I'm hoping someone can help me speculate - this seems to be the most appropriate spot to ask :)

AirAsia X sets Taipei date
Published: 2009/04/24



AIRASIA X, the long-haul affiliate of budget carrier AirAsia Bhd (5099), will start flying the Kuala Lumpur-Taipei route on July 1.

It will begin with five direct flights a week.

"Taipei is the final piece of the jigsaw puzzle to our oriental network strategy. Our ultra-low fares will entice the Taiwanese public and Malaysians who reside, work and study in Taiwan to fly home to connect with their families," AirAsia regional head of commercial Kathleen Tan said in a statement issued yesterday in Kuala Lumpur.

She said the low fares will help stimulate new travel demand and boost tourism in both countries.
"AirAsia has a strong domestic high frequency network that enables Taiwanese to visit domestic locations like Penang, Langkawi, Sabah, Sarawak. We also provide connectivity to other destinations such as Bali, Phuket, Australia and London," Tan said.

AirAsia held a media briefing in Taipei yesterday that was attended by Malaysian Friendship and Trade Centre for Taiwan president Datuk Abdullah Mohd Salleh and the director of Tourism Malaysia's office in Taipei, Muhamad Nasir Pahmi.

Some of Taipei's attractions are its National Museum of History, the Red Pavilion Theater and the Taipei Financial Centre.

"With the large number of Malaysians of Chinese origin, we believe that Taiwanese visitors will find themselves on familiar ground in Malaysia.

Malaysian tourists will also feel at home in Taipei and, for Muslim visitors, finding halal restaurants will not be a very big problem," Abdullah said.

Taiwanese visitors to Malaysia must apply for a social visit visa that costs T$240, which is valid for two months.

The one-way fare to Taipei is from RM101, excluding airport tax and administration fees, and is applicable for online booking only.

The booking period is from today until May 3 for travel between July 1 this year and January 31 next year.

AirAsia to fly to Taipei five times a week


PETALING JAYA: AirAsia will fly direct to Taipei five times a week from July 1.

The new route will be operated by its low-cost long-haul-carrier affiliate AirAsia X.

“Attractive fares are being offered from as low as RM101 one-way, which are exclusively available through the website at www.airasia.com.

“Booking period is from today till May 3 for travel between July 1 and Jan 31 next year,” it said in a statement yesterday.

AirAsia regional commercial head Kathleen Tan said Taipei was the company’s final piece in its network strategy for the region and that it was “extremely excited about the potential of the new route”.

“We are confident that our ultra-low fares will entice the Taiwanese public and Malaysians who reside, work and study in the island republic to fly home and connect with their families,” she said.

“Most importantly, we believe our low fares will help to stimulate and trigger new travel demand, and help boost tourism on both ends.”

In an AirAsia briefing in Taipei, Malaysian Friendship and Trade Centre for Taiwan president Datuk Abdullah Mohd Salleh said Taiwanese visitors would feel at home in Malaysia due to the presence of the Chinese community in the country.

“Likewise, our tourists will feel very much at home in Taipei. For Muslims, finding halal restaurants in Taipei won’t be a very big problem,” he said, adding that there were some 4,000 Malaysian students in Taiwan.

20,000 seats sold for AirAsia’s new route


PETALING JAYA: Some 20,000 seats were sold within 12 hours of AirAsia opening its new Kuala Lumpur-Taipei route.

The budget carrier’s regional head of commercial Kathleen Tan described the response as “fantastic.”

“This is by far the most successful route launch this year,” she said in a statement yesterday.

She said this was a clear sign of a strong demand for the Kuala Lumpur-Taipei route and a positive indication that regional markets were “starving for low fares.”

Tan said all promotional fare seats at RM101 have been snapped up but gave an assurance that passengers would still be able to enjoy low fares.

The new promotional fares for the Kuala Lumpur-Taipei route, which will begin on July 1, will now be RM139.

There will be five direct flights weekly.

Meanwhile, another AirAsia passenger has won the RM10,000 cash prize from the budget airline’s “Fly and Win” campaign.

Lucky draw winner Siti Fatimah Lahatta, 38, said she would use part of her cash prize to give her entire family an overseas holiday treat.

“I have arranged for a trip to Kuala Lumpur and Makassar next month with my husband, eldest daughter and my parents,” said the Sabahan, adding that another trip was being planned which would include her three younger children during the long school break.

Fatimah added she was astonished when informed about the win since she had not submitted any contest forms.

The “Fly and Win” campaign is AirAsia’s way of thanking customers after being voted the World’s Best Low Cost Airline in the latest Skytrax survey.

The first contest winner was insurance claims manager Alan Ho from Kuala Lumpur.

The contest is valid for all AirAsia customers in Malaysia and Singapore who book seats via www.airasia.com and mobile.airasia.com between April 6 and April 26, for travel between May 5 next year and July 31, 2010.

Passengers stand to win RM10,000 or S$5,000 during weekly draws on April 13, 20 and 27. Visit AirAsia’s website for more information.

AirAsia’s KL-Taipei route sees 20,000 seats sold in first 12 hours
by Joe Chin
Friday, 24 April 2009 22:33

KUALA LUMPUR: AirAsia’s latest route between Kuala Lumpur and Taipei, which opened for sale at 12am on April 24, saw more than 20,000 seats sold in the first 12 hours.

AirAsia regional head of commercial, Kathleen Tan said it was the most successful route launch this year in terms of take-up within few hours of opening sale.

“This is a clear signal of a strong and pent up demand for our KL-Taipei route and a positive indication that regional markets in this part of the world are starving for low fares,” she said.

The KL-Taipei route, serviced by AirAsia’s low-cost long-haul carrier affiliate AirAsia X, starts on July 1 with five direct flights weekly.

“All promotional fare seats of RM101* have been snapped up. We have received feedback that some guests are facing problems while booking online due to congestion in the system, but rest assured, they will still be able to enjoy low fares from AirAsia,” said Tan.

The new promotional low fares for KL-Taipei starts from RM139, excluding airport taxes, administration fees and for one-way flight only.

Hello all!
I'm keen to fly Air Asia X from PER-KUL-SIN and return this Christmas/New Year season. The prices available for these segments to travel May -> October 2009 are excellent - but will I be just as impressed come the end of the year? I'm hoping someone can help me speculate - this seems to be the most appropriate spot to ask :)

Trust me, you'll find the ticket price is quite reasonable. :)
BTW MAS also has some kind of pricing war with AirAsia, you should better check malaysiaairlines.com as well.

Trust me, you'll find the ticket price is quite reasonable. :)
BTW MAS also has some kind of pricing war with AirAsia, you should better check malaysiaairlines.com as well.

I'll trust you on that one. Yes - I'm also checking the MAS/MH website often too! I recall a sale they had months ago - AU$350~ springs to mind.
Thanks for your help.

AirAsia eyes Viet, Philippine affiliates
By Jeeva ArulampalamPublished: 2009/04/28



By setting up affiliate airlines in the two countries, AirAsia will have access to a combined population of roughly 180 million.

Low-cost carrier AirAsia Bhd (5099) wants to have new associate units in the Philippines and Vietnam to strengthen its footprint in the Asean region.

AirAsia now has a 49 per cent stake each in affiliate airlines Indonesia AirAsia and Thai AirAsia.

"It will be great to have operations in the Philippines and Vietnam - the two biggest countries in Asean that we have yet to establish a base in," group chief executive officer Datuk Seri Tony Fernandes told Business Times in an interview last Friday.

By setting up affiliate airlines in the two countries, AirAsia will have access to a combined population of roughly 180 million.
"We have been offered a lot of joint ventures around the region and this shows the power of our brand," Fernandes said.

However, he has not set a time frame for the expansion as AirAsia is still searching for the right partners and working on securing licences from the respective governments.

Fernandes said the planned venture with Vietnam's shipbuilding giant Vinashin to form a Vietnamese low-cost carrier was frozen by the Vietnamese government.

AirAsia had signed a letter of intent in 2007 for a 30 per cent stake to set up its third affiliate airline, Vina AirAsia, which was to have been operational by the middle of last year.

According to a Vietnamese daily, its government has since told state-owned companies, such as Vinashin, to focus on their core activities.

Furthermore, the Civil Aviation Administration of Vietnam has proposed to its Transport Ministry not to issue new airline licences in Vietnam until 2011.

"But we are very patient. After all, we waited seven years to get the Kuala Lumpur-Singapore route. So I'm sure it will happen," Fernandes said.

He added that his ultimate vision was for all the AirAsia affiliates in Asean to become a single entity.

"My dream, without sounding like Martin Luther King, is that we are one airline in the end. Basically, for us to become one quoted company in Asean."

In the meantime, AirAsia will continue to position itself as an Asean company and strive to be a dominant airline in the region.

AirAsia Yet To See Any Sales Slowdown


KUALA LUMPUR, April 27 (Bernama) -- AirAsia, Southeast Asia's biggest budget carrier, has yet to see any sales slowdown despite the current economic situation, group chief executive officer Datuk Seri Tony Fernandes said Monday.

"There is no decline in any routes because of the low fares we offer and we fly to places that one go, such as Bandung, Banda Aceh and Vientiane," he said after announcing an alliance with Maybank and American Express on AirAsia's acceptance of Amex cards for bookings.

Also present at the event were Maybank executive vice president and head of cards and payments, Ashraf Ali Abdul Kadir, and American Express International senior vice president and head of global network services, Japan/Asia Pacific/Australia, Kula Kulendran.

Fernandes said that the investment in network expansion and a consistent low fares were also among the factors contributing to the airline's growth.

Despite the economic challenges, there was an opportunity to build market share, he said, adding that AirAsia has received good response for its latest route between Kuala Lumpur and Taipei, with more than 20,000 seats sold.

On fears that the spread of swine flu would hit the travel industry, Fernandes said AirAsia's sales has been unaffected by the virus because people will fly within Southeast Asia rather than in America.

"I am gloomy about the economy but I am not too worried about the pandemic because a lot of resources has been put in to stop it," he said.

According to Fernandes, AirAsia is positive on the company's growth and will continue to grow despite the economic challenges.

"We saw a 21 percent year-on-year increase in our passenger volume for the first quarter of this year when we flew 3.1 million guests," he said.

On the partnership with Maybank and American Express, Fernandes said: "We are confident that this number will grow now that American Express cardmembers are able to easily book seats with us."

The partnership extends world-class value for money travel benefits on AirAsia to all customers carrying American Express cards. The alliance is expected to grow inbound and outbound travel by attracting high-spending American Express cardmembers to fly with AirAsia.

Commenting on the new low-cost carrier terminal (LCCT), Fernandes said that there was still no progress on the construction part, adding that the airport was crucial to enable Malaysia to gain opportunities.

It is understood that the new LCCT will be build by Malaysia Airports Holdings Bhd and work is expected to start middle of this year, and scheduled for completion by the third quarter of 2011.

Meanwhile, Ashraf Ali said that Maybank is working to ensure that payments with the American Express card are made available at AirAsia booking counters nationwide by middle of next month.

The first phase of this payment convenience will be offered for flights from Malaysia, Singapore and Thailand and for online payments, he said.

"Since Maybank acquired the American Express issuing and merchant business in Malaysia in 2006, we have continued to offer exciting programmes as well as expended the scope of facilities to cardmembers," Ashraf Ali said.

"This has resulted in a 93 percent growth in card spending by American Express cardmembers in Malaysia," he said.

-- BERNAMA

Free Seats For Singapore-Langkawi & Penang-Singapore Routes


KUALA LUMPUR, April 27 (Bernama) -- AirAsia is once more offering sweet deals to its guests, by offering free seats as introduction to its two new routes -- Singapore-Langkawi and Penang-Singapore.

These new routes will simultaneously commence on June 1, 2009 with daily services.

"By opening up these routes, we are looking forward to stimulating more travel and tourism activities which will definitely benefit the country's economy," said AirAsia Regional Head of Commercial, Kathleen Tan, in a statement today.

"We always remain bullish that our low fares will help to stimulate and induce new travel demand, and will help boost tourism potential on both ends," she said.

The free seats deals are exclusively available online via AirAsia's website at www.airasia.com or mobile.airasia.com.

Booking period is from April 27 to May 3, 2009 for travel between June 1, 2009 and Jan 31, 2010.

Alongside the new routes, the airline is increasing its frequency from Kuala Lumpur to Singapore, bringing the total frequency to eight direct daily flights from the current seven.

The added frequency will also commence operations on June 1, 2009, with free seats on offer to mark its initiation.

The free seats offer is also available online with similar booking and travel period as the new routes above.

"Our Kuala Lumpur - Singapore route on the other hand, received tremendous response ever since it was first introduced, with an average load factor of 80 percent," said Tan.

The free seats offer exclude airport tax, admin fees and are applicable for one-way only.

-- BERNAMA

AirAsia doesn’t expect ops to be affected by flu


KUALA LUMPUR: AirAsia Bhd does not expect its operations to be affected by the outbreak of the deadly swine flu, said group chief executive officer Datuk Seri Tony Fernandes.

“These things happen, we’ve been through them, I think globally, everyone is prepared for pandemics like these,” he said after the launch of a new service that will see the acceptance of American Express cards for payment of AirAsia flight tickets here yesterday.

Fernandes said he was “gloomy” about the economy but was “not too worried” about the swine flu.

“We (AirAsia) will still grow, expansion plans are still on track.

http://biz.thestar.com.my/archives/2009/4/28/business/p4-airasiapi.JPG
From left: AirAsia group CEO Datuk Seri Tony Fernandes, Maybank executive vice president, head, cards & payments, consumer banking Ashraf Ali Kadir and American Express head of global network services, Japan, Asia Pacific & Australia senior vice president Kula Kulendran at the launch.

“If anything, we may see a shift towards short-haul travel in this region,” he said, adding that the low-cost carrier saw a 21% year-on-year increase in its passenger volume for the first quarter of this year, when it flew 3.1 million guests.

“We are confident that this number will grow now that American Express cardmembers can easily book seats with us,” he said.

AirAsia aims to grow its corporate segment, currently comprising about 5% of customer base via the new partnership, “but we don’t have any specific targets,” he added.

Since the service commenced on April 2, more than 12,000 transactions have been conducted.

Malayan Banking Bhd acquired the American Express business in Malaysia in 2006.

Since then, card spending by members has grown more than 90%, according to Kula Kulendran, American Express senior vice-president and head of global network services for Japan, Asia Pacific and Australia.

LCCT: AirAsia kecewa lambat

Oleh SARAH NADLIN ROHIM
sarah.rohim@utusan.com.my



KUALA LUMPUR 27 April - AirAsia Bhd. (AirAsia) hari ini bimbang dengan tindakan Malaysia Airport Bhd. (MAHB) yang didakwanya lambat dalam memulakan pembinaan Terminal Penerbangan Tambang Murah (LCCT) yang baru di Lapangan Terbang Antarabangsa Kuala Lumpur (KLIA).

Ketua Pegawai Eksekutifnya, Datuk Seri Tony Fernandes berkata, sejak pengumuman kerajaan, MAHB masih belum berbuat apa-apa di tapak LCCT baru yang berhampiran dengan Kompleks Bunga Raya KLIA.

''Lapangan terbang adalah perkara yang penting dalam usaha syarikat penerbangan berkembang. Sekiranya penyedia lapangan terbang tidak mampu menyediakan kemudahan bertaraf tinggi ia akan menjejaskan kami.

''AirAsia sangat memerlukan LCCT baru dengan segera kerana tidak mahu terlepas peluang untuk terus berkembang,'' katanya.

Beliau berkata demikian selepas Majlis Pelancaran Penggunaan Kad American Ekspress bagi perkhidmatan pembayaran tiket AirAsia oleh AirAsia, Malayan Banking Bhd. (Maybank) dan American Express International Inc. (American Express) di sini hari ini.

Hadir sama di majlis itu, Naib Presiden Kanan Ketua Rangkaian Perkhidmatan Global Jepun, Asia Pasifik dan Australia American Express, Kula Kulendran dan Naib Presiden Eksekutif dan Ketua Bahagian Kad dan Pembayaran MAybank, Ashraf Ali Abdul Kadir.

Pada pembentangan pakej rangsangan ekonomi kedua 10 Mac lalu, Perdana Menteri, Datuk Seri Najib Tun Razak mengumumkan MAHB akan membina dan mengendalikan LCCT di KLIA dengan kos RM2 bilion yang dijangka siap pada 2011.

Pengumuman itu dibuat setelah kerajaan menolak rancangan awal AirAsia untuk membina LCCT bernilai RM1.6 bilion di Labu, Negeri Sembilan, sebaliknya memberi tugas kepada MAHB untuk membina LCCT baru itu berhampiran terminal utama sedia ada di KLIA, Sepang dan mengadakan perundingan dengan AirAsia.

Ketika ditanya mengenai kemungkinan wabak selsema babi yang melanda Mexico dan Amerika Syarikat (AS) akan menjejaskan AirAsia, Fernandes berkata, ia tidak akan memberikan kesan ketara kepada jualan tiket AirAsia.

''Ini kerana sebelum ini pelbagai wabak telah melanda dunia tetapi kami (AirAsia) boleh mengatasinya dan saya yakin wabak terbaru ini juga tidak akan menjejaskan AirAsia.

''Selain itu, wabak tersebut berlaku dunia sebelah sana, oleh itu penduduk rantau ini akan memilih Asia sebagai destinasi pelancongan mereka. Fokus AirAsia kini adalah membawa penumpang ke destinasi pilihan mereka,'' katanya

Terdahulu, AirAsia, American Express dan Maybank mengumumkan penerimaan kad American Express untuk tempahan tiket AirAsia secara dalam talian dan kaunter jualannya.

Fernandes berkata, dengan kerjasama ini penumpang AirAsia disediakan alternatif untuk membuat pembayaran selain boleh menambahkan penumpang syarikat penerbangan itu.

''AirAsia turut menawarkan kempen tambang murah mereka kepada pemegang kad American Express yang bermula pada hari ini hingga 3 Mei hadapan. Maklumat lanjutan mengenai kempen tersebut boleh didapati di www.airasia.com,'' jelasnya.

Sementara itu, Ashraf berkata, sejak kerjasama terjalin antara American Express dan Maybank, bank tersebut telah menikmati pertumbuhan penggunaan kad itu sebanyak 93 peratus di Malaysia.

''Dengan kerjasama terbaru ini, ia akan menggalakkan perkembangan penggunaan kad itu di negara ini,'' katanya.

Maybank merupakan pengeluar dan pengurus kad American Express di Malaysia.

geez, this guy really irritating!

he thinks when people start saying 'we will construct a new airport', then suddenly by the next day he expected everything should be started on site? damn stupid.

how about tendering process, selecting contractors, designing all that....

planning will take time. constructing is not an issue as it depends on construction method, material used, contractor's track record all that....

AirAsia partners Scicom
Published: 2009/04/29



AIRASIA Bhd (5099) has tied up with outsource contact centre operator Scicom (MSC) Bhd to service passengers worldwide.

The collaboration streamlines and fully integrates AirAsia's customer service and contact centre operations.

The two companies have equal partnership in the joint-venture company, Asian Contact Centres Sdn Bhd, located in Kuala Lumpur.

Asian Contact Centres, which began operation on February 16, serves AirAsia's customers from Malaysia, Singapore, Thailand, Indonesia, China, Australia and the UK.
Operations will soon expand to serve customers in Japan, South Korea, the Philippines, the Middle East and India.

The centre can manage more than five million transactions a year in English, Bahasa Malaysia, Thai, Mandarin, Cantonese and Bahasa Indonesia.

AirAsia And Scicom Establish World-class Contact Centre


KUALA LUMPUR, April 28 (Bernama) -- AirAsia Bhd together with Scicom (MSC) Bhd have established Asian Contact Centre Sdn Bhd to serve the low-cost carrier's customers from around the world.

AirAsia's group chief executive officer Datuk Seri Tony Fernandes said the airline was looking to provide better quality services through the world-class contact centre set up under the collaboration.

"We are looking at solutions rather than avoiding complaints. The establishment of the contact centre, we believe, is another step towards providing quality services," he told reporters at the launch of Asian Contact Centre here today.

"For the past two weeks, I have not received any complaint and services are improving," he said.

Also present at the launch was Scicom's chief executive officer Leo Ariyanayakam.

The contact centre, an equal-partnership joint venture company that started operations on Feb 16 this year, is aimed at meeting customers' expectations and ensure that their booking needs and enquiries are handled efficiently.

Currently, it serves AirAsia's customers from Malaysia, Singapore, Thailand, Indonesia, China, Australia and the United Kingdom.

Operations will soon expand to serve customers in Japan, South Korea, the Philippines, the Middle East and India, AirAsia said.

Asked about the impact of the Thai political crisis on the airline, Fernandes said business was still strong and AirAsia's load factor to Bangkok was 74 percent yesterday.

"I think Southeast Asia is very resilient. There are a lot of opportunities and demand. People still want to fly. The other Thai destinations are also unaffected, and Thailand is an unique place," he said.

-- BERNAMA

Passenger load to Bangkok still high
Wednesday April 29, 2009

http://thestar.com.my/archives/2009/4/29/nation/n_p10airAsia.jpg

All systems go: Fernandes and AirAsia Bhd chairman Datuk Aziz Bakar (right)
launching Asian Contact Centres while Ariyanayakam (centre) and Scicom
director Harry Menon (second from left) look on yesterday.

KUALA LUMPUR: The political crisis in Thailand has not affected AirAsia’s load factor to that country, the carrier’s group chief executive Datuk Seri Tony Fernandes said.

He said the load factor for flights to Bangkok was as high as 74% while passenger loads to the other 10 Thai destinations were also not affected.

“The South-East Asian market is very resilient. We have had Severe Acute Respiratory Syndrome (SARS), the tsunami and earthquakes, but people still travel,” he said.

He said the recent outbreak of swine flu had also not impacted AirAsia’s operations, with the airline’s ticket sales on Monday going up by 30%.

Fernandes was speaking to reporters at the launch of Asian Contact Centres Sdn Bhd here, which will handle the customer service and contact centre operations of AirAsia.

Asian Contact Centres, which started operating on Feb 16, serves the airline’s customers from Malaysia, Singapore, Thailand, Indonesia, China, Australia and the United States.

Its operations will soon be expanded to serve customers in Japan, South Korea, the Philippines, the Middle East and India.

Asian Contact Centres is an equal-partnership joint venture between AirAsia and Scicom, a Mesdaq-listed entity specialising in business process out-sourcing and consulting services.

Fernandes said Asian Contact Centres would solve one of AirAsia’s most-received complaints, which was poor response from the airline’s call centres.

“We are a victim of our own success of seven years. We have 24 million customers now. It is not that the staff did not want to pick up the phones, but rather, we were growing too fast,” he said.

Scicom CEO Leo Ariyanayakam said the new call centre was centralised in Malaysia, instead of the past practice of having one centre in each country.

“It allows us to scale economically by having one management, and it is manned by more than 300 staff, which is double the number from the past,” he said.

AirAsia unveils new promotion campaign
Published: 2009/04/30

LOW-COST carrier AirAsia Bhd has launched a “No Bull! No Fuel Surcharge” campaign, which assures passengers flying on AirAsia and AirAsia X that they will only have to pay for the cost of their fares, airport taxes and administration fees.

The promotion is available from all its hubs in Kuala Lumpur, Jakarta, Bangkok, Kota Kinabalu, Bandung, Johor Baru and Bali. Prices start as low as RM25 one-way to Chiang Mai, Phuket, Krabi, Ho Chi Minh, Medan, Padang and Surabaya, and RM45 one-way to Hanoi, Bali, Solo, Manado, Makassar and Yogyakarta.

Guests can book their seats to all AirAsia international destinations until May 10 2009 for travel between July 1 and November 30 2009 via www.airasia.com or mobile.airasia.com.

The Red Lady on board, AirAsia
by JasonDGreat
http://www.flickr.com/photos/jason_weemin/3196845146/

http://farm4.static.flickr.com/3349/3196845146_701c765fc8_o.jpg

AirAsia was Asia's 8th largest carrier in 2007/2008 period (in just 7 years since birth).

The miracle continues and we await its latest achievement to be known in coming days.

i believe it includes Thai AA and Indonesia AA.....

AirAsia upbeat on Thai, Indonesian affiliates
By Jeeva ArulampalamPublished: 2009/05/04



The growth of the affiliates will be spurred by the replacement of its aging fleet of Boeing 737s with new Airbus 320s, says AirAsia group CEO

LOW-COST carrier AirAsia Bhd (5099) expects its affiliate airlines in Indonesia and Thailand to turn profitable during this fiscal year ending December 31 2009, as it takes delivery of new, more fuel efficient aircraft.

"We have been cash flow positive in both countries for a while and now the aim is to be profitable on a regular basis," AirAsia group chief executive officer Datuk Seri Tony Fernandes told Business Times in an interview.

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

Fernandes said the growth of the affiliates will be spurred by the replacement of its aging fleet of Boeing 737s with new Airbus 320s.
The carrier targets to replace all its 737s by 2010, three years ahead of schedule.

"I'm in discussion with Airbus right now and the lessor (of the Boeing aircraft) to substitute the planes (earlier)," he said.

Thai AirAsia's fleet of 16 planes currently comprises nine A320s, while Indonesia AirAsia has five A320s in its fleet of 14 planes.

"Getting the Airbus (aircraft) changes the operation. They (affiliates) have been handicapped as they are using older aircraft, which are less reliable and more costly to run," he said.

Also, the affiliates are waiting for the new planes to expand more aggressively.

"Most of our growth from 2010 will come from these two countries. Each time we receive an A320, it would mean 20 per cent more seating capacity which allows us to grow," said Fernandes.

Thai AirAsia expects its passenger numbers to grow 20 per cent to 5 million this year, while Indonesia AirAsia targets to carry 4 million passengers, 45 per cent more than 2008.

To date, seat sales have grown 5 per cent for Thailand and 20 per cent for Indonesia from a year ago.

"Thai AirAsia has had its best ever quarter even with the political issues. We were not affected this time around and there were no flight cancellations," said Fernandes.

Thai AirAsia will also concentrate on expanding its routes into China and India, while creating a third hub, Chiang Mai, on top of its existing hubs in Bangkok and Phuket.

Indonesia AirAsia, meanwhile, will focus on building its capacity to Singapore and other Asean destinations using its four Indonesia hubs namely Jakarta, Medan, Bandung and Bali.

"We finally secured rights to fly into Singapore. Connectivity between both countries equates to a big market," said Fernandes.

The airline will also start flying the Bali-Perth route soon.

While both Thai AirAsia and Indonesia AirAsia have not made as much money as its parent company AirAsia, Fernandes said AirAsia's success in creating a strong Kuala Lumpur hub relied heavily on its affiliates.

"We have become more appealing to travellers because we have a strong network. We promote Asean as one destination - within three hours, you can be in the jungles of Kota Kinabalu or the beaches of Phuket or Bali," he said.

AirAsia and its affiliates will continue to build themselves as an Asean brand and expand their route network in those countries.

AirAsia plans to dominate Asean before taking on India, China
Published: 2009/05/04





AIRASIA Bhd (5099) said it has no plans to form joint ventures in India and China like in Thailand and Indonesia, despite its desire to aggressively expand routes into the world's two most populous countries.

"We wouldn't want to tie up (with partners) there ... not for a long time because both markets are huge," AirAsia group chief executive officer Datuk Seri Tony Fernandes told Business Times.

He said it was important for AirAsia to become a strong airline in Asean before taking on markets such as India and China, which already have many low-cost carriers (LCCs).

As such, it is eyeing to establish affiliate airlines in Vietnam and the Philippines.
AirAsia and its long-haul sister airline AirAsia X currently fly to six destinations in China and one in India.

"Maybe the next generation of AirAsia leaders will look into China and India. (For now) my job is to deliver a strong (presence in) Asean," he said.

"The plan is to be strong in the local market, then Asean, followed by China and India. But we are not strong in Asean yet."

Fernandes wants AirAsia to become a dominant airline in Asean within three years, with the help of its associate airlines in Thailand and Indonesia.

"For us to be strong in Asean or to become a single airline, I think a lot also hinges on political will."

Citing Europe's largest budget airline Ryanair as an example, Fernandes pointed out that it was able to open a base in any of the European countries.

To allow airlines to compete on a level playing field here, the aviation industry in Asean must be liberalised as well as that of the individual countries, he said.

"Even if it means (the entry of) a new LCC, so be it. More competition is better for the consumers," he added.

AirAsia inks 10-year with Akamai
Published: 2009/05/04 *
AIRASIA Bhd has signed a 10-year agreement with Akamai Technologies Inc to boost the airline's online performance and reliability.

Under the agreement, AirAsia's website, www.airasia.com, will be powered by Akamai's dynamic site acceleration solution that will deliver website performance up to five times faster than the original web infrastructure.

In a statement, the airline said by leveraging on Akamai's globally-distributed delivery network of 42,000 secure servers equipped with specialised software and deployed in 70 countries, AirAsia will provide a premium online experience for customers.

Akamai is the global leader in powering rich media, dynamic transactions and enterprise applications online.
INFORMATION5739
AirAsia group chief executive officer Datuk Seri Tony Fernandes said through this strategic partnership with Akamai, AirAsia will also be able to sustain its momentum in enhancing market share. -- Bernama

AirAsia signs 10-year cyber deal


PETALING JAYA: AirAsia has signed a 10-year deal with a global Internet content and application delivery company to boost its online performance and reliability.

The low-cost carrier signed the deal with Akamai Technologies Inc under the company’s first 10-year agreement with an airline.

In a statement yesterday, AirAsia said its website would now be powered by Akamai’s Dynamic Site Acceleration solutions which delivers faster website performance.

AirAsia Bhd group chief executive officer Datuk Seri Tony Fernandes said their partnership with Akamai would enable them to provide passengers with the best online performance and enhance their market share.

“AirAsia’s website enjoys an average of one million unique visitors a month.

“With our promotional deals and free-seat regional campaigns, the number of hits increases dramatically, so we need a solution to ensure our guests have a speedier, more reliable and uninterrupted online experience,” he added.

Meanwhile, Akamai’s Asia-Pacific managing director Stuart Spiteri said AirAsia’s commitment to Akamai underscored its goal to deliver a best-of-class online experience for its global customers.

AirAsia mantapkan khidmat dalam talian
5 Mei 2009

KUALA LUMPUR 4 Mei - AirAsia Bhd. (AirAsia) dan pengurus perkhidmatan media Akamai Technologies, Inc. (Akamai) mengumumkan jalinan kerjasama jangka panjang untuk meningkatkan prestasi perkhidmatan dalam talian syarikat penerbangan itu.

AirAsia melalui laman webnya www.airasia.com akan dimantapkan dengan penyelesaian Akamai Dynamic Site Acceleration.

Ketua Pegawai Eksekutif Kumpulan AirAsia, Datuk Seri Tony Fernandes (gambar) berkata, melalui kerjasama strategik itu, syarikat akan meneruskan perkembangan penguasaan pasaran.

''Ini adalah langkah penting untuk menyokong perkembangan rangkaian laluan dan pertambahan kapal terbang kami. Ia juga merupakan komitmen kami kepada pelanggan untuk menyediakan pengalaman dalam talian terbaik.

''Laman web kami menerima purata satu juta pelawat dalam tempoh sebulan. Dengan promosi serantau jumlah pelawat semakin bertambah, kami memerlukan penyelesaian terbaik,'' katanya dalam kenyataannnya di sini.

Tambah beliau, kerjasama dengan Akamai yang mempunyai pengalaman dan kepakaran dalam menyediakan teknologi terbaik dapat membantu perniagaan AirAsia menerusi perkhidmatan dalam taliannya.

Penyelesaian Akamai Dynamic Site Acceleration dapat mempercepatkan prestasi laman web sehingga lima kali ganda serta mengawal kandungannya tanpa perlu membina perkakasan baru.

Akamai adalah peneraju media, transaksi dinamik dan aplikasi dalam talian global.

Kempen galak naik AirAsia




AIRASIA, syarikat penerbangan tambang murah terbesar Asia, melancarkan kempen ‘Ini bukan guarauan: Tiada caj bahan api’ bagi tiket destinasi antarabangsa supaya lebih ramai menggunakan khidmat penerbangan lebih berdaya mampu di kalangan orang ramai ketika keadaan ekonomi tidak menentu sekarang.

Bagi kempen itu, mereka yang memilih AirAsia dan AirAsia X hanya hanya perlu membayar kos tambang, cukai lapangan terbang dan fi pendaftaran.

Ketua Komersial Wilayah AirAsia, Kathleen Tan (gambar), berkata pomosi itu tersedia untuk semua penerbangan berlepas dari Kuala Lumpur, Jakarta, Bangkok, Kota Kinabalu, Bandung, Johor Bahru dan Bali.

Tambang tiket bagi promosi tiada caj bahan api itu bermula serendah RM25 untuk destinasi terpilih termasuk Chiang Mai, Phuket, Krabi, Ho Chi Minh, Medan, Padang, Surabaya dan banyak lagi.

Bagi destinasi lain, harga tiket bermula dari RM45 untuk penerbangan sehala termasuk ke Hanoi, Bali, Solo, Manado, Makassar dan Yogyakarta.

Untuk destinasi tumpuan pelancong pula, syarikat penerbangan itu menawarkan harga tiket sehala serendah RM75 ke Hong Kong, Macau, Guangzhou, Clark dan Shenzhen.

AirAsia Indonesia to service Bali-Perth
Published: 2009/05/06



LOW-COST carrier AirAsia Bhd will start operating daily flights between Perth in Australia and Bali in Indonesia through affiliate AirAsia Indonesia.

Seats for the route are now available, starting from A$139 (RM361) for one-way travel.

The promotion booking is from May 5 to 10 for travel between July 17 this year and January 31 next year.

AirAsia will use the A320. The Bali-Perth route is the fifth international service from its Bali hub, besides Kuala Lumpur, Johor Baru, Bangkok and Singapore.

Airasia's Free Seats For Australia Snapped Up


KUALA LUMPUR, May 5 (Bernama) -- AirAsia's promotional free seats for its first Australian destination to be serviced from Indonesia with direct daily flights were snapped up within hours after its official sales announcement.

The seats were offered in conjunction with the opening of the new route and were limited and available on first-come, first-served basis, said the low-cost carrier in a statement Tuesday.

The new route is serviced by AisAsia Indonesia, an associate of AirAsia, and is the fifth international route operated from the Bali hub after Kuala Lumpur, Johor Baharu, Bangkok and Singapore.

It will strengthen Bali's position as AirAsia's second hub after Jakarta in Indonesia.

"Bali is the driving force behind Indonesia's tourism economy and it corresponds to our testament in supporting the Indonesian government's efforts to boost tourism and promote it as a gateway to other provinces in Indonesia," said AirAsia Indonesia's chief executive officer Dharmadi.

The airline will fly daily from Denpasar to Perth and it expects to encourage more tourists into Bali.

New Airbus A320 aircraft will serve the new route as the distance will require a maximum four hours of flight.

Currently, AirAsia has a network with 122 routes covering more than 65 destinations.

-- BERNAMA

AirAsia’s Bali to Perth free tickets snapped up


PETALING JAYA: Promotional free tickets for AirAsia’s new direct route from Bali to Perth were snapped up within hours of them being made available for booking.

However, seats for AirAsia’s first route to Australia from Indonesia are still available from as low as RM364 till May 10 for the travel period July 17 till Jan 31 next year.

The new route will be serviced by AirAsia Indonesia, an associate of AirAsia, and is the airline’s fifth international route operating from the Bali hub.

AirAsia Indonesia chief executive officer Dharmadi said Bali was the driving force behind Indonesia’s tourism economy and that the new route would also improve educational ties.

“Education is the main drive for closer Indonesia-Australia ties with approximately 19,000 Indonesian students studying in various parts of Australia.

“There are also large Indonesian communities living in Perth, so we expect this new route will do well,” Dharmidi added.

AirAsia will utilise its A320 aircraft to service the four-hour long flight which will fly daily return flights from Denpasar to Perth.

edit

AirAsia to fly more routes to Singapore
By Presenna NambiarPublished: 2009/05/08





BUDGET airline AirAsia Bhd (5099) will fly to Singapore from five more points in Malaysia soon, its group chief executive officer Datuk Seri Tony Fernandes said.

It will announce the new points in the next few weeks.

Yesterday, AirAsia launched its Singapore-Langkawi service, marking its third route to the Lion City from the country. The other points are Kuala Lumpur and Kota Kinabalu.

The new service will start on June 1. On that day, it will also begin operating flights between Singapore and Penang, its fourth point in the country to Singapore. In addition, it will increase its Kuala Lumpur-Singapore flights to eight times daily from seven.
Fernandes said the airline was also planning to obtain rights to fly from Langkawi to international destinations such as Bangkok, Jakarta and Hong Kong.

Transport Minister Datuk Seri Ong Tee Keat, who was present at the launch in Langkawi yesterday, said his ministry was willing to grant AirAsia the traffic rights to these international destinations.

"We have no qualms about the idea of giving AirAsia international routes out of Langkawi, but we have to make sure that once you get them you must sustain (the flights) with full commitment," Ong said.

To mark the start of the Langkawi-Singapore route, AirAsia is offering free rooms at its partner hotels in Langkawi through holiday division GoHoliday.

This special deal is in addition to the airline's current promotion of RM1/S$1 for seats on the route. The promotional airfare and free hotel room for first night are available on a "first come, first serve" basis and subject to availability.

"It takes more than low fares to bring in tourists. The airport tax needs to be low, the hotels need to be reasonable. So this time around, by getting the hotels on board, we have managed to give people a really good deal," Fernandes said.

"For example, we are now offering zero fares, but the airport tax at the Langkawi International Airport is RM51. How do you promote the destination?" he pointed out.

AirAsia opened bookings for its Langkawi-Singapore flights three days ago and 50 per cent of seats next month has been sold.

Fernandes said AirAsia will be spending some S$200,000 (RM478,000) to advertise the new route in the Singapore media.

Since its inception, AirAsia has flown 2.5 million passengers to Langkawi. It expects to fly some 750,000 passengers to Langkawi this year.

On Malacca Chief Minister Datuk Seri Mohd Ali Rustam's statement that he had no objections to AirAsia's proposal to take the Batu Berendam Airport in the state private, Ong said his ministry had not received any proposal as yet.

"We have not received such a proposal. All airports should be under the purview of Malaysia Airports Holdings Bhd. This is a federal matter and not a state one," Ong said.

More AirAsia Routes Connecting Singapore With Malaysia


LANGKAWI, May 7 (Bernama) -- AirAsia Bhd will soon introduce five more routes from Malaysia to Singapore, its group chief executive officer, Datuk Seri Tony Fernandes, said Thursday.

Under the air liberalisation arrangements between Malaysia and Singapore, the airlines of both countries are allowed to operate six new destinations, namely Ipoh, Kuala Terengganu, Kuantan, Melaka, Sandakan and Tawau.

This is on top of the Penang, Langkawi, Kuching and Kota Kinabalu routes, which were allowed previously.

Fernandes said AirAsia's Langkawi-Singapore route would begin on June 1, 2009.

"Of the seats offered for the Langkawi-Singapore route from June, 50 percent had been taken up in the past two days," he told reporters after the announcement of the flights by Transport Minister, Datuk Seri Ong Tee Keat, here Thursday.

For the daily Langkawi-Singapore routes, he said, AirAsia would also offer guests free rooms at its partner hotels in Langkawi.

"This is in addition to the current promotion campaign of RM1 (S$1) for flights from Singapore to Langkawi," he said.

He said the hotel partners included Aseana Resort Langkawi, Eagle Bay Hotel and Awana Hotel and a few more.

"We are able to talk with the hotels to persuade them to use our concept of volume. Give us some free rooms, so we can use them to promote Langkawi.

"Basically, they will get a one-night stay for free, and the second and third days, the hotels will benefit," he said.

Fernandes said AirAsia flew over 600,000 passengers to Langkawi last year and was expected to increase to 750,000 passengers this year with the introduction of the new route.

AirAsia, he said, was also eyeing the Langkawi-Bangkok, Langkawi-Jakarta and Langkawi-Hong Kong routes.

Earlier, Ong said the new route would offer tourists more choices to visit the island.

"The new route will boost the tourism industry between both countries," he said.

-- BERNAMA

http://blog.airasia.com/media/users/admin/thumb_plugin/wallpaper_1440x900.jpg

AirAsia presents the Saturdays

Sizzling straight from the UK, AirAsia brings you the Saturdays. Last we saw them, they were grooving the set of our London launch way back in March with their hot singles. Heck, even our London Launch video which is up on our Youtube channel featured their single, Up! And since last week, you might have noticed the Hitz FM crew blasting the Saturdays all over the air waves. Their hits such as Up!, If This is Love, and Just Can't Get Enough.

The Saturdays is a pop girl group formed in Britain in 2007, comprising Irish singer-songwriter and guitarist Una Healy, and British singers Mollie King, Frankie Sandford, Vanessa White and Rochelle Wiseman. AirAsia will be actually bringing them to Malaysia for a one stop showcase and a night to remember. Where better to catch the next best pop act than in our own backyard if you're in Malaysia.

Catch the Saturdays live in Zouk KL on 12 May 2009 for absolutely FREE. Find out more when you try out our new Have You Flown AirAsia Lately experience. Just log on for free caller ring tones and wall paper download of the Saturdays.

http://blog.airasia.com/index.php/airasia-presents-the-saturdays

AirAsia wins award from Airbus
Published: 2009/05/08

AIRASIA Bhd has received the A320 Family Operational Excellence Award from Airbus in recognition of its service record with the single aisle aircraft type.

In a statement in Kuala Lumpur today, AirAsia said the award was presented in Paris this week during Airbus' bi-annual symposium of all operators of the A320 Family worldwide.

The selection criteria for the awards is based on data covering two years of operation and takes into account the number of aircraft in the fleet, daily utilisation rate, technical reliability and the number of delays caused to flights for operational reasons.

"While the world A320 Family fleet continues to record outstanding operational results, these awards recognise exceptional technical performance at individual operators," said Charles Champion, Executive Vice President Customer Services.

"AirAsia has established an extremely efficient operation with its Airbus aircraft, including exceptionally high utilisation and an outstanding dispatch reliability," Champion added.

AirAsia Group CEO, Dato’ Sri Tony Fernandes said the award from Airbus accentuated the constant efforts of the airline, in striving for better performance and greater flying experience for customers.

AirAsia is one of the largest customers for the Airbus A320 Family, having placed firm orders for 175 aircraft, of which 59 have already been delivered.

All A320s ordered by AirAsia are in 180-seat configuration and powered by CFM International CFM56 engines.

AirAsia in Malaysia now operates a fully Airbus A320 fleet and is in the process of replacing its existing Boeing 737’s in Indonesia and Thailand with the brand new A320. - Bernama

A million free seats on AirAsia


PETALING JAYA: Travellers have more reason to smile as low-cost airline AirAsia is giving away a million free seats starting today.

The airline’s regional commercial head Kathleen Tan said the promotion was initiated to honour passengers for supporting AirAsia throughout the years.

“Winning the recent Skytrax’s Best Low-Cost Airline 2009 award would not have been possible without our guests rating us as the best. This is our way of saying thank you,” she said in a statement yesterday.

Tan added that the airline will also be introducing an “All-In-Fare” policy for the Malaysian market whereby prices stated are the nett amounts to be paid.

Those interested in enjoying the free seats can book their tickets from today until Friday for flights between Jan 5 to April 30 next year. Customers only pay for airport tax and administration fee. For more information, log on to www.airasia.com or mobile.airasia.com.

Singapore Amex Card Holders Can Now Purchase AirAsia Tickets


SINGAPORE, May 11 (Bernama) -- From Monday onwards, American Express card members in Singapore can use their card to purchase the low-cost carrier AirAsia's tickets to enjoy its popular low fares.

AirAsia said the airline now accepted American Express cards for bookings both online and through its call centres and sales counters here.

The two companies announced here their partnership to offer consumer and corporate travellers more choices and value.

The announcement of the alliance was made by American Express Regional Vice President for Merchant Services, Peter Kapoor, and AirAsia Commercial Regional Head Kathleen Tan.

In line with the launch, American Express card members can enjoy flights from Singapore to Kuala Lumpur, Pulau Pinang, Langkawi and Kuching at a price as low as S$40, and S$68 for Bangkok, which are valid for bookings made from May 11 to May 17, and for travel from this June 1 to Jan 31 next year.

Malaysian holders of the card have benefited from similar arrangement when American Express and AirAsia announced their collaboration in Kuala Lumpur last month.

-- BERNAMA

AirAsia X CEO: Fight will now be on service quality and destinations
By B.K. SIDHU


SEPANG: Malaysia’s only low-cost long-haul airline, AirAsia X, wants to raise its service levels to gain a bigger market share of the routes that it now plies.

Ultimately, it wants to take on full service carriers on service quality as competition for air fares has intensified. The fight would now be on service quality and the next on destinations, said chief executive officer Azran Osman Rani.

“While they (the full service carriers) are downgrading, we are going to change our game plan by improving on our service. We want to beat them (full service carriers) on the service game and we can do it since our costs is low,” Azran told StarBiz in an interview recently.

Since AirAsia X began plying several long-haul sectors, its rivals, mostly full service carriers, have dropped fares to match those offered by the low-cost carrier.

http://biz.thestar.com.my/archives/2009/5/13/business/b_02airasia.jpg
AirAsia X, which is 20% owned by AirAsia, now flies from the low-cost carrier terminal at KL International Airport to Perth, Melbourne, Gold Coast, Hangzhou, Tianjin and London.
These days, a traveller can fly to Melbourne or even Perth for RM299 one-way, something unimaginable before AirAsia X began plying those routes.

AirAsia X, which is 20% owned by AirAsia, now flies from the low-cost carrier terminal at the KL International Airport to Perth, Melbourne, Gold Coast, Hangzhou, Tianjin and London.

It will begin daily flights to London on July 1 and launch flights to Taipei on the same date.

“They can cut their fares but they have a higher cost base, so it will be difficult for them to match us as our cost base is very low,” Azran added.

As part of its service offerings, the airline will offer new fare classes, have greater flexibility for passengers changing flights, reliability on timings and smooth check-ins.


Azran Osman Rani
“We are looking at interesting ways to make the customer experience better. All this will help us get more customers while the full service carriers are cutting on service quality which will erode their brand experience. We just want to do the opposite,” he added.

First and business classes are on a downtrend and more companies are now warming up to low-cost travel as they trim travel budgets amid the economic slowdown.

Corporate travellers now make over 35% of the traffic on low-cost carriers (LCCs), up from 10% a year ago, according to The Centre for Asia Aviation – an aviation consultancy.

Azran said corporate sales were on the rise for the airline and it was now flying executives from some big banks, oil and gas companies, global telecommunications firms and business travellers.

With service levels raised, the airline hopes to capture a bigger business traveller market.

The airline also wants to introduce flat beds for its long-haul flights at a more reasonable rate than full service carriers.

“We will even offer flat beds at US$1,000 one-way for our London flights and that is how we will shake the world,” he said. The airline is looking at doing that next year. As for destinations, AirAsia X has a whole list of points it wants.

They range from Australia to Asia, Middle East, Russia, Europe, Africa and even the transatlantic routes.

All this will be done as the airline gets delivery of newer planes this and next year.

“We are going to beat them with our newer planes, our flat beds and attractive fare pricing. It is going to be a very interesting landscape, going forward, and we do not think there is any LCC in this region that can emulate us,” he said.

http://blog.airasia.com/media/users/admin/thumb_plugin/wallpaper_1440x900.jpg

AirAsia presents the Saturdays

Sizzling straight from the UK, AirAsia brings you the Saturdays. Last we saw them, they were grooving the set of our London launch way back in March with their hot singles. Heck, even our London Launch video which is up on our Youtube channel featured their single, Up! And since last week, you might have noticed the Hitz FM crew blasting the Saturdays all over the air waves. Their hits such as Up!, If This is Love, and Just Can't Get Enough.

The Saturdays is a pop girl group formed in Britain in 2007, comprising Irish singer-songwriter and guitarist Una Healy, and British singers Mollie King, Frankie Sandford, Vanessa White and Rochelle Wiseman. AirAsia will be actually bringing them to Malaysia for a one stop showcase and a night to remember. Where better to catch the next best pop act than in our own backyard if you're in Malaysia.

Catch the Saturdays live in Zouk KL on 12 May 2009 for absolutely FREE. Find out more when you try out our new Have You Flown AirAsia Lately experience. Just log on for free caller ring tones and wall paper download of the Saturdays.

http://blog.airasia.com/index.php/airasia-presents-the-saturdays


British girl group to fly in on regional tour


KUALA LUMPUR: The latest British all-girl music sensation – The Saturdays – will be in town on their regional tour this July and August.

Air Asia will be the official arline taking Una Healy, Rochelle Wiseman, Vanessa White, Mollie King and Frankie Stadford on their tour in partnership with the world’s biggest record company Universal Music.

South-east Asia will be the group’s first tour destination covering Kuala Lumpur, Singapore, Manila and later to Hong Kong.

AirAsia group CEO Datuk Seri Tony Fernandes said the partnership was also to promote the airline’s brand campaign ‘Have you flown AirAsia lately?’

“Music is in our blood. This partnership will bring this fast-rising girl band to AirAsia’s many destinations.

“We will be drumming up the excitement in the music scene of many cities that we fly to, particularly those in Asean,” he told a press conference before a showcase by The Saturdays at a club here yesterday.

It was not the first time AirAsia and The Saturdays have worked together.

The band performed a mini-showcase at the launch of AirAsia X’s inaugural flight to Stansted, London on March 11.

Formed in Britain in 2007, The Saturdays released their debut album Chasing Lights about three weeks ago in Malaysia, with four hit singles, Up, If This is Love, Issues, and Just Can’t Get Enough.

Fernandes said that while the airline was fully committed to helping to break the band into the Asian market, they would not rule out bringing other acts into the region.

For more information, log on to www.haveyouflownairasialately.com.

AirAsia sees opportunities amid slowdown
By EDY SARIF


It is to triple advertising spending

KUALA LUMPUR: AirAsia Bhd will triple its advertising spending this year as it sees opportunities to expand amid the economic slowdown, said group chief executive officer Datuk Seri Tony Fernandes.

However, he declined to disclose the figures for competitive reasons.He told StarBiz that two days ago, the budget airline managed to sell 250,000 seats in one day, a record for the company.

“I always believe nothing is impossible and for me, at this time of uncertainty, a lot of opportunities are there for us to grab,” Fernandes said yesterday after speaking at the Malaysian Association of Professional Speakers seminar here.

“... This is the best time for you to build your brand as others are taking a step backward,” he said.

http://biz.thestar.com.my/archives/2009/5/15/business/p10-tony.JPG
AIRASIA group chief executive Datuk Seri Tony Fernandes

He pointed out that Air Asia would fly to destinations that other airlines wouldn’t dare go to such as Acheh, Bandung and Macau.

“The markets that are still untapped are very big out there. If you dare to go and with proper plans, you will succeed,” he said.

At the seminar, Fernandes said creativity, brand innovation and technology were crucial in running a business in these turbulent times.

“A business entity needs to have a very good environment. The workplace should be a fun place to be, as this will help the workers to come up with more creative and bright ideas,” he said.

He also said the budget airline hoped to help the Government boost the tourism sector amid the slowdown. “We want to contribute to the economy, pushing our networking services to woo more tourists to come and spend here,” he said.

AirAsia X in no rush to buy A340s
By Presenna NambiarPublished: 2009/05/18





AIRASIA X (5099) is doubtful that it will be able to secure the remaining three A340-300s it wants to lease this year.

"We have some offers but we are not rushing it. We'll start with two (A340s) this year, and once London grows and we have more flights or open the second destination to Europe or even look at the US ... these are the possibilities," AirAsia X chief executive officer Azran Osman-Rani told Business Times.

He said it is important that that particular make of Airbuses is leased in order to keep costs low.

"The planes (A340s) are the exact same thing as our A330s. We can use the same pilots, everything is the same," Azran said.
AirAsia X expects to take delivery of three new A330s in September, November and December this year.

"We haven't fully finalised the destinations we will fly to with the new planes, but we definitely plan to double the number of destinations AirAsia X flies to, from four destinations at the start of the year, to 10 when we have eight planes," Azran said.

With the new planes, Azran said, he may add another Australian city, one or two more Chinese cities, one Indian city and maybe a Japanese city.

AirAsia X currently operates three A330s and one A340 and is expecting delivery of one more A340 in June.

Azran said his main aim in 2009 is to prove AirAsia X's mettle as a fully profitable entity.

"With our billion ringgit revenue and 10 to 20 per cent profit margin, we would be one of the Kuala Lumpur Composite Index's top 100 companies in terms of revenue and profit, and then, we can list on or sell off shares based on 2010 forward.

"Now, we have been showing profit since December, but it's not very exciting, is it?" Azran said.

He said such a feat would give AirAsia X the growth and size that could make for a very interesting initial public offering story.

"It hinges very much on getting the planes and starting the destinations. If we don't get it, we might only double our revenue, but we would like to quadruple it to one billion," Azran said.

On the Influenza A virus H1N1, he said, it has not affected the airline in the sense that people are still buying tickets and loads are steady.

AirAsia X has an average load factor of 77 per cent on its flights.

Analysts upbeat on MAS, AirAsia first quarter results
By LEONG HUNG YEE


,B>They expect performance to be better than the fourth quarter

PETALING JAYA: Although Malaysia Airlines (MAS) and AirAsia Bhd have yet to release their results for the first quarter ended March 31, analysts are largely optimistic on the carriers’ financial performance.

MAS and AirAsia are expected to announce their results at the end of this month.

Analysts are upbeat that both airlines would have a positive report. “We expect an improvement in their first-quarter results over the fourth quarter,” an analyst said.

However, many expect AirAsia to “surprise on the upside” in its upcoming announcement.

An analyst with a foreign brokerage said the focus this time would be on MAS as to whether fuel hedges would hit the national carrier.

http://biz.thestar.com.my/archives/2009/5/22/business/p3-masairasiacht.JPG
There would also be interest as to whether low-cost carrier AirAsia could return to profitability.

“The airline (MAS) has been marred by fuel hedges gone wrong in an already challenging operating environment last year.

“Although lower fuel prices these days should benefit airlines, several including MAS are still paying off hedges locked in when crude oil hit a high of US$147 per barrel last year,” he said.

While MAS is using up its high fuel hedges as it goes along, AirAsia unwound its hedge position last year.

“Free of the hedging contracts that weighed down the second half of 2008, AirAsia appears set to soar,” an analyst said.

He said AirAsia was gaining share as other airlines cut flights in the current difficult environment.

“First-quarter passenger numbers were up 21% by year-on-year, while seat occupancy only slipped two percentage points.

“Unlike most full-service airlines, average revenue per seat is also up due to major surge in ancilliary revenue,” a foreign brokerage said in a report.

It added that AirAsia’s costs improved by 23% to 24% year-on-year on a lower jet fuel price.

“In addition, its growth is expected to be focused on the high-yield markets of Singapore and India,” the brokerage said.

Another analyst said AirAsia should not be affected by fuel hedges anymore as the low-cost carrier was buying on spot prices now.

“MAS should still be consuming 50% of its fuel requirements at US$100 per barrel under its hedging.

“We expect AirAsia to post a strong first-quarter result due to savings from fuel,” he added.

Meanwhile, analysts expect the load factors for both MAS and AirAsia to average at their norms of 65% to 70% and 75% to 80%, respectively.

AirAsia is forecasting a 15% to 20% increase in passenger numbers this year while MAS will continue to cut capacity and has unveiled a programme to cut costs by a further 7%.

For the financial year ended Dec 31(FY08), MAS posted a net profit of RM244.3mil on revenue of RM15.5bil compared with RM851.4mil and RM15.2bil respectively in 2007.

AirAsia, however, reported a net loss of RM471.7mil on revenue of RM2.64bil for FY08, compared with a net profit of RM697.6mil on revenue of RM1.93bil in FY07.

AirAsia scraps Bangkok-JB route
Published: 2009/05/28





BANGKOK: AirAsia is stopping its Bangkok-Johor Baru route beginning July this year, the second time it is taking such measures.

In an email to passengers who have booked flights from July onward, the budget carrier said AK5632 from Senai and the returning AK5633 would be cancelled.

In February 2008, AirAsia resumed its Bangkok-Johor Baru route with four flights a week, flying on Mondays, Wednesdays, Fridays and Sundays.

It had intended to be the first destination in Thailand from Johor Baru, targeting Johoreans, Singaporeans and those flying into the city from Sabah and Sarawak, but low load factor forced AsiaAsia to scrap the route.

AirAsia and its Thai subsidiary, Thai AirAsia, operate seven flights daily from Kuala Lumpur to Bangkok, as well as serving Krabi, Phuket and Chiang Mai, on top of the Penang-Bangkok route.

The Bangkok-Langkawi and Bangkok-Kota Kinabalu services were discontinued in 2007 due to low passenger load. -- Bernama

AirAsia profit soars on high passenger growth


Budget carrier’s operating profit jumps 591% to RM166mil in first quarter

SEPANG: AirAsia Bhd has posted an unaudited operating profit of RM166mil for the quarter ended March 31, a 591% jump against the previous corresponding period.

Group chief executive officer Datuk Tony Fernandes attributed the increase to robust passenger growth and ancillary income.

“These are the best first-quarter results ever by the company although we are facing a global economic slowdown and the A (H1N1) flu outbreak,” he said at AirAsia’s results briefing yesterday.

Revenue for the quarter grew 33% to RM714mil from RM525mil previously.

Fernandes said passenger numbers for the period grew 21% to 3.1 million as the carrier had successfully stimulated the market, captured share from competitors and launched new routes.

Ancillary income, a key area for growth, more than doubled to RM91mil due to the strong support of new services, including “Supersize” baggage and “Pick a Seat” assigned seating services launched during the period.

On overseas operations, Fernandes said Thai AirAsia had performed exceptionally well to counter the weakening domestic consumer sentiment as a result of the internal political disturbances. It posted an operating profit of RM30.5mil for the period.

AirAsia Indonesia, however, produced a small loss of RM11.5mil, he said.

On the market outlook, Fernandes said although many airlines cut capacity, terminated underperforming routes and retrenched staff, the situation provided unique long-term opportunities for AirAsia to grow rapidly, open new markets, win market share from competitors and speed up the pace of the industry consolidation.

“Our strategy to continuously conduct aggressive promotions and enhance customer service has been successful in driving strong traffic growth,” he said.

He added that AirAsia would continue to expand its market share as more people switched from legacy carriers to fly with AirAsia.

He said that based on forward booking trend in the second quarter, the underlying passenger demand remained robust and the ancillary income was also growing strongly.

In another development, AirAsia has been given extension of time to table its financial statements for the financial year ended Dec 31, 2008.

In a filing with Bursa Malaysia yesterday, AirAsia said the Companies Commission of Malaysia, via its letter dated May 20, had granted the company time extension to table its financial statement at its AGM on or before Aug 31.

The low-cost carrier said the extension was made in view of a proposed corporate exercise to obtain shareholders’ approval at an EGM to be held on the same date as the AGM for inter alia, financial assistance to associated companies and general mandate for recurrent related party transactions of revenue in nature.

AirAsia said it would issue its annual report on or before June 30 to comply with Bursa’s listing requirements.

This move was to reduce substantial administrative time, inconvenience and expenses associated with the convening of general meetings on an ad hoc basis, it added.

AirAsia has best first quarter
By Jeeva Arulampalam Published: 2009/05/29



The budget carrier's net profit grew 26 per cent to RM203.15 million in the three months ended March 31 2009

Budget carrier AirAsia Bhd (5099)is back in the black with a net profit of RM203.15 million in the first quarter of 2009, after posting two consecutive quarterly losses previously.:banana::banana:

In the three months ended March 31 2009, its net profit grew 26 per cent as revenue increased 33 per cent to RM714.2 million due to better ancillary income and stronger passenger growth.

"This is our best first quarter ever and demand has continued in the second quarter," AirAsia group chief executive officer Datuk Seri Tony Fernandes told reporters at its quarterly briefing in Sepang yesterday.

Fernandes said AirAsia's outlook was positive as passenger growth continued. Seats sold year to date are up 21 per cent to 5.2 million.
"There is still demand if the price is right. The growth comes from low fares and we are well positioned because of our cost structure and marketing abilities," he said.

AirAsia targets to carry some 24 million passengers by the year-end and capture half of the market. Currently, it has 44 per cent market share.

The budget carrier will also see further growth with the liberalisation of air service between Malaysia and Singapore from June 1.

"We will be plying routes to Singapore from Penang, Langkawi, Miri and Tawau," Fernandes said.

He added that capacity and flight cuts by Asia's legacy carriers had created opportunities for AirAsia.

Owing to the lower traffic at many Asian airports, they are competing to secure AirAsia's business on more desirable terms for the airline, he said.

AirAsia saw its core operating profit surge to RM166 million in its first quarter, almost six times that a year ago.

Despite passenger travel seeing a decline globally, AirAsia has beaten all odds as its passenger numbers increased 21 per cent to 3.1 million. Load factor, however, declined 2 per cent to 70 per cent.

Ancillary income more than doubled to RM91 million, representing some 12.8 per cent of total revenue.

"The ancillary income will act as our buffer for future fuel increases as additional revenue from ancillary income is equivalent to US$30 (RM106) recovery in fuel price," Fernandes said.

Associate airline Thai AirAsia delivered operating profit of RM30.5 million, while its Indonesian affiliate posted RM11.5 million loss.

AirAsia - success of low-cost model
Written by Joseph Chin
Friday, 29 May 2009 10:58

KUALA LUMPUR: OSK Investment Research said it was impressed with AirAsia’s strong 1Q results and expect the current pick-up in the economy to benefit the company.

The research house said on May 29 that it had raised its projection by 166.6% for FY09 and 160.8% for FY10.

"The new numbers, together with our new valuation parameter of 8 times FY10 price-to-earnings ratio (PER), lifts its 12-month target price to RM1.75 but
we have decided to only upgrade the company to a Trading Buy as we are cautious on its high gearing," it said.

OSK Research said after the adjustment of disposal gain from the sale and leaseback of an aircraft plus translation losses on a weakening Ringgit, AirAsia’s core pre-tax profit of RM166 million in 1Q surpassed its and street estimates.

It added AirAsia’s revenue of RM714 million, which was 33% higher year-on-year (y-o-y), was attributed to higher passenger volume, with average fares raised by 5% to RM198. Ancillary income soared 123% y-o-y as passengers spent RM29 per pax in 1Q, or up 85% y-o-y.

The aggressive unwinding of fuel hedges in 4Q also enabled AirAsia to enjoy the currently low jet fuel price. With oil averaging at US$61.60 per barrel in 1Q, it brought unit cost per ASK down by 18% y-o-y to 8.6 sen.

The few successful services introduced in the past have translated into a steady pick-up in ancillary income. The recently launched "Pick a Seat" programme, which allows passengers to choose their seats for a nominal fee, has attracted a higher take-up rate of 16%, up from only 8.5% in 2008.

OSK Research said AirAsia management also indicated that few other new products will be introduced in the next few months and is targeting for contribution from ancillary income to increase to 20% from 12.8% currently.

It added that AirAsia would continue to offer aggressive promotions to drive traffic growth and expand market share. The bad economic climate worldwide have prompted more people to switch from full service carriers and flying with low cost carriers (LCC).

"Upgrade to Trading Buy but concerns linger. While impressed with the strong showing by AirAsia, its heavy borrowings for its aggressive aircraft purchases have led to its gearing level bloating to an uneasy 3.71 times as at March 31, 2009.

"Therefore, we are raising our earnings estimates and target price to RM1.75, or 8 times FY10 earning per share (EPS), but upgrade out recommendation only to Trading Buy considering the company’s high investment risk profile," it added.

AirAsia mulls share sale to fund expansion
Published: 2009/05/29





AIRASIA Bhd, Southeast Asia’s largest low-cost airline, said it’s considering raising about RM500 million (US$143 million) to fund expansion in the Malaysian company’s biggest share sale since listing in 2004.

“We’re looking at it,” chief executive officer Datuk Seri Tony Fernandes said in an interview today. “If our growth requires us to raise more cash, then we’re not averse to it.”

AirAsia, which has ordered 175 Airbus SAS planes, may raise the money in a stock sale or a rights offer to shareholders, Fernandes said. The timing or the structure of the transaction hasn’t been decided, he said.

The airline’s shares have surged 50 per cent this year in Kuala Lumpur trading, providing currency to raise funds as debt markets wither in the financial crisis. Fernandes expects Airbus to deliver about 24 planes annually for the next three to four years as the airline adds routes to India and boosts flights to China.





“Raising debt would be much cheaper, but I don’t think companies have a lot of choice these days,” said Raymond Yap, an analyst at CIMB Investment Bank Bhd in Kuala Lumpur with an “outperform” rating on AirAsia. Yap issued a report earlier today saying AirAsia may be considering a rights issue.

The carrier had a fleet of 74 planes at the end of March 31, it said in a statement yesterday after reporting its highest quarterly profit since the final three months of 2007. AirAsia had 59 Airbus A320 aircraft and 15 Boeing Co. 737s.

Based on AirAsia’s profit-growth forecasts, a RM500 million share sale won’t necessarily dilute earnings, Fernandes said. The Sepang, Malaysia-based company had RM224 million of cash on its books at the end of March 31.

AirAsia today rose 4 per cent to RM1.30 at the 12:30 pm break on the local stock exchange, set for the highest close in more than a year. Malaysia’s benchmark Composite Index added 0.3 per cent.

AirAsia’s second-quarter passenger traffic is headed for a 21 per cent jump, matching last quarter’s increase as budget- conscious travelers look for cheaper air fares, Fernandes said.

“For the moment, things are rosy,” he said in a Bloomberg Television interview. The “second-quarter demand looks good.”

Profit at the airline climbed 26 per cent in the first quarter to RM203.2 million after the company flew more passengers and added routes, the company said yesterday after the stock market closed.

The carrier’s surging traffic contrasts with slumps at regional rivals including Singapore Airlines Ltd, which is cutting routes and capacity. AirAsia, which expects to fly 24 million people this year, is increasing its capacity by about 20 per cent each quarter, the chief executive said.

AirAsia, which flies to one destination in India, will fly to at least six more airports in the South Asian nation before the end of 2009, Fernandes said. -- Bloomberg

AirAsia profit soars on high passenger growth
Friday May 29, 2009

Budget carrier’s operating profit jumps 591% to RM166mil in first quarter

SEPANG: AirAsia Bhd has posted an unaudited operating profit of RM166mil for the quarter ended March 31, a 591% jump against the previous corresponding period.

Group chief executive officer Datuk Tony Fernandes attributed the increase to robust passenger growth and ancillary income.

“These are the best first-quarter results ever by the company although we are facing a global economic slowdown and the A (H1N1) flu outbreak,” he said at AirAsia’s results briefing yesterday.

Revenue for the quarter grew 33% to RM714mil from RM525mil previously.

Fernandes said passenger numbers for the period grew 21% to 3.1 million as the carrier had successfully stimulated the market, captured share from competitors and launched new routes.

Ancillary income, a key area for growth, more than doubled to RM91mil due to the strong support of new services, including “Supersize” baggage and “Pick a Seat” assigned seating services launched during the period.

On overseas operations, Fernandes said Thai AirAsia had performed exceptionally well to counter the weakening domestic consumer sentiment as a result of the internal political disturbances. It posted an operating profit of RM30.5mil for the period.

AirAsia Indonesia, however, produced a small loss of RM11.5mil, he said.

On the market outlook, Fernandes said although many airlines cut capacity, terminated underperforming routes and retrenched staff, the situation provided unique long-term opportunities for AirAsia to grow rapidly, open new markets, win market share from competitors and speed up the pace of the industry consolidation.

“Our strategy to continuously conduct aggressive promotions and enhance customer service has been successful in driving strong traffic growth,” he said.

He added that AirAsia would continue to expand its market share as more people switched from legacy carriers to fly with AirAsia.

He said that based on forward booking trend in the second quarter, the underlying passenger demand remained robust and the ancillary income was also growing strongly.

In another development, AirAsia has been given extension of time to table its financial statements for the financial year ended Dec 31, 2008.

In a filing with Bursa Malaysia yesterday, AirAsia said the Companies Commission of Malaysia, via its letter dated May 20, had granted the company time extension to table its financial statement at its AGM on or before Aug 31.

The low-cost carrier said the extension was made in view of a proposed corporate exercise to obtain shareholders’ approval at an EGM to be held on the same date as the AGM for inter alia, financial assistance to associated companies and general mandate for recurrent related party transactions of revenue in nature.

AirAsia said it would issue its annual report on or before June 30 to comply with Bursa’s listing requirements.

This move was to reduce substantial administrative time, inconvenience and expenses associated with the convening of general meetings on an ad hoc basis, it added.

AirAsia chief faints at airport
Published: 2009/06/02





AirAsia group chief executive officer Datuk Seri Tony Fernandes fainted at the low-cost carrier terminal yesterday but was later given a clean bill of health by doctors.

Fernandes was taken to the Pusrawi Medical Centre at the Kuala Lumpur International Airport main terminal by ambulance, where he was checked by doctors and then allowed to return home.

A statement from AirAsia said he fainted after returning from Penang, where he attended the welcoming ceremony of the airline's inaugural Singapore-Penang flight earlier in the day.

Present at the ceremony were Transport Minister Datuk Seri Ong Tee Keat and Health Minister Datuk Seri Liow Tiong Lai.

"Doctors blamed it on exhaustion and advised him to get some rest," the statement said.

AirAsia to mount Penang-Chennai flights soon
By Marina EmmanuelPublished: 2009/06/02





LOW-cost carrier AirAsia Bhd (5099) will launch daily flights from Penang to Chennai, India in three to four months.

The airline has been granted rights to fly the route by the government.

Transport Minister Datuk Seri Ong Tee Keat said the government is also in talks with other carriers to fly to regional destinations from the Penang International Airport this year.

"The liberalisation of air services is not only limited to increased flights to Singapore from Malaysian cities.
"We are currently in discussions with a few airlines to fly from Penang to Asian destinations," he told reporters after launching AirAsia's Singapore-Penang inaugural flight in Penang yesterday.

Also present were Health Minister Datuk Seri Liow Tiong Lai, AirAsia group chief executive officer Datuk Seri Tony Fernandes and the airline's chairman Datuk Aziz Bakar.

Malaysia Airlines (MAS) withdrew flights on the Kuala Lumpur-Penang-Chennai sector in 2001, as part of a route rationalisation programme.

On whether AirAsia has put proposals to the government to fly into more Indian cities, Fernandes said: "Not at the moment because we are short of aircraft, but we are looking at more destinations."

Meanwhile, Ong said the commencement of Silk Air's direct flights from Penang to Singapore yesterday, along with those to be offered by Firefly, Tiger Airways and Jetstar Asia, bring to a total of 49 weekly flights operating between Penang and Singapore.

Currently, MAS and Singapore Airlines are plying the route.

"By March next year, the frequency of flights to Singapore from Penang will increase to 84 times per week," he added.

Fernandes said to date, 17,000 seats have been sold by the airline since it opened the route for sale on April 27.

"AirAsia is looking at carrying 60,000 guests on this route by year-end," he added.

Besides Singapore, AirAsia also connects Penang travellers to other international destinations such as Bangkok, Jakarta, Medan and Macau.

June 2, 2009
Exhausted AirAsia boss rests after fainting


SEPANG: AirAsia group chief executive officer Datuk Seri Tony Fernandes is resting at home after being given a clean bill of health by doctors. He had fainted at the Low Cost Carrier Terminal here yesterday.

Fernandes was taken to the Pusrawi Medical Centre at the KLIA main terminal building after he fainted at the terminal upon arrival on a flight from Penang, AirAsia said in a statement.

Doctors examining him blamed it on exhaustion and advised him to get some rest, it said. — Bernama

AirAsia to start Penang-Chennai flights in October


GEORGE TOWN: AirAsia will have direct flights from Penang to Chennai by October.

AirAsia chief executive officer Datuk Seri Tony Fernandes said the Transport Ministry had approved its plan and the airline is currently ironing out the details.

“We hope to have a daily flight there. It will take us three to four months to finalise the details,” he said after a ceremony to mark the inangural Singapore to Penang direct flight at the Penang International Airport (PIA) here.

Transport Minister Datuk Seri Ong Tee Keat said Penang is one of 13 cities in the nation with direct air links to Singapore.

“It will stimulate the economy and benefit local residents including their businesses.

“Now PIA services 49 weekly flights to Singapore by Malaysia Airlines, Singapore Airlines, AirAsia and Silk Air but it will have a surge next March where there will be 84 weekly flights, with the addition of three airlines - JetStar Asia, Tiger Airways and Firefly,” he said.

Ong said the ministry was also looking into applications by various airliners to fly to more destinations in the region.

“It’s still early for me to reveal the routes. When the airlines make requisitions for a certain route, the ministry will go through the details before putting the papers up to the Cabinet for endorsement,” he added.

Ong, along with Health Minister Datuk Seri Liow Tiong Lai, who is the state MCA chairman, Fernandes and AirAsia board chairman Datuk Aziz Bakar later presented goodie bags to 180 passengers who arrived aboard the inaugural Airbus flight A320 from Singapore.

A total of 17,000 seats have been sold since the route was open for sale on April 27.

To mark the inaugural flight of the new route, AirAsia - through its holiday division GoHoliday - is offering a buy one, free one room night stay at its partner hotels in Penang.

The list of hotels is available on the goholiday.airasia.com.

Fernandes says he's recovering
Published: 2009/06/02





Datuk Seri Tony Fernandes, chief executive officer of Southeast Asia’s largest discount carrier AirAsia Bhd, today said he is recovering at home after fainting yesterday at Kuala Lumpur airport from exhaustion.

“Everything’s okay and am just exhausted,” Fernandes, 45, said on online messaging service Twitter. “Resting at home as the doc ordered.”

Fernandes passed out yesterday after arriving at the low-cost terminal outside the Malaysian capital on a domestic flight from the island of Penang, AirAsia said in a statement. He was treated at a clinic at the Kuala Lumpur International Airport and sent home, the airline said.

According to his entries on Twitter, Fernandes last week returned to Malaysia from France, then traveled to Indonesia and Singapore. The executive, who has stakes in long-haul budget airline AirAsia X, a hotel chain and a financial services company, is also on a diet, according to his blog.


He was “given a clean bill of health by doctors” late yesterday, according to AirAsia’s statement. “Doctors blamed it on exhaustion and advised him to get some rest.” -- Bloomberg

AirAsia ‘not averse’ to rights offer, placement
Published: 2009/06/02

AirAsia Bhd, Southeast Asia’s largest low-cost airline, said it’s not averse to raising funds from shareholders through a rights offer or a placement to so-called long-term investors if it needs more cash to fund growth, according to a statement.

The carrier’s directors are monitoring “recent developments in the equity and debt capital markets and shall deliberate the various recapitalization alternatives,” AirAsia said in the stock exchange statement late today.

The statement echoes comments from Chief Executive Officer Tony Fernandes, who said in an interview on May 29 that AirAsia was “not averse” to fund raising funds through a stock sale or rights offer.

AirAsia Celebrates First Asean Crew Graduation


SEPANG, June 4 (Bernama) -- AirAsia, the leading low-cost carrier in Asia, held its first Asean crew complement graduation ceremony Thursday, which saw 68 trainees graduating as the first group of Asean flight attendants.

AirAsia's deputy group chief executive officer, Datuk Kamarudin Meranun presented the certificates of graduation.

The graduation ceremony marked a historical moment for the airline, where for the first time it presented the first batch of an all-Asean flight attendant graduates.

"While other airlines are cutting capacity and retrenching staff, AirAsia continues to grow and keeps on hiring," Kamarudin said during the ceremony held at the AirAsia Academy here.

Of the 68 graduating flight attendants, 27 were Malaysians, 22 Thais, 14 Myanmarese, three Indonesians and two Singaporeans, he said.

"As an Asean airline, an all-Asean crew is very important as it reflects our passion in projecting the beautiful image of Asean to the world," Kamarudin said.

AirAsia, he said, has grown its aircraft fleet from two in 2001 to 76 today while its staff strength grew from 200 to over 6,000 presently.



-- BERNAMA

AirAsia tawar bilik percuma




AIRASIA, syarikat penerbangan tambang murah secara rasmi membuka laluan barunya dari Pulau Pinang ke Singapura menerusi perkhidmatan penerbangan sulung, semalam.

Menurut kenyataan dikeluarkan syarikat penerbangan itu di Kuala Lumpur, laluan berkenaan dibuka untuk jualan sejak April lalu.

“Bagi memperingati hari penerbangan sulung itu, AirAsia menerusi holiday division GoHoliday kini menawarkan pelanggan beli satu, percuma satu bilik semalam di hotel niaganya di Pulau Pinang.

“Tawaran dibuka di laman web goholiday.airasia.com. Tawaran istimewa itu tambahan kepada kempen promosi AirAsia ketika ini iaitu RM79 (S$49) untuk penerbangan sehala antara Singapura dan Pulau Pinang.


“Tempahan bermula semalam sehingga 7 Jun 2009 untuk tempoh penerbangan antara 15 Jun sehingga 13 September 2009.




“Promosi tempat duduk dan bilik hotel percuma hanya diperuntukkan untuk mereka yang membuat tempahan awal. Untuk promosi penerbangan layari www.airasia.com,” katanya.

Laluan antarabangsa baru itu bermatlamat menggalakkan lebih banyak perjalanan antara dua destinasi berkenaan sekali gus meningkatkan aktiviti pelancongan yang akan mengembangkan ekonomi kedua-dua negara.

“Ketika laluan berkenaan dibuka pada April, ia mencatatkan sambutan menggalakkan dengan 17,000 tempat duduk ditempah.

“AirAsia mensasarkan untuk mengangkut 60,000 penumpang untuk laluan baru ini menjelang akhir tahun,” katanya.

Selain itu, AirAsia turut menyambut penerbangannya sulungnya dari Langkawi ke Singapura dengan lapan penerbangan harian dari Kuala Lumpur ke republik itu.

by PYONKO
http://www.flickr.com/photos/omeyamapyonta/3599147257/

http://farm3.static.flickr.com/2472/3599147257_141843d36a_b.jpg

AirAsia rai graduasi pertama 68 kru kabin




AIRASIA, syarikat penerbangan tambang murah terbesar Asia meraikan 68 pramugara dan pramugari pelatih pertamanya pada Majlis Graduasi di Akademi AirAsia, Sepang, baru-baru ini.

Ketua Pegawai Eksekutif kumpulan, Datuk Seri Tony Fernandes, berkata majlis ini bagi menghargai prestasi cemerlang ditunjukkan pelatih dari rantau Asia itu sepanjang dua bulan mereka berada di akademi.

“Bukan mudah menjadi pramugara dan pramugari kerana kerjaya ini memerlukan seseorang itu kental menghadapi cabaran.

“AirAsia sentiasa membuka peluang kepada individu berminat menjadi sebahagian warga syarikat kami kerana matlamat kami menghimpunkan kru dari seluruh Asia dalam satu penerbangan,” katanya.

Akademi AirAsia menawarkan kursus teori dan praktikal untuk juruterbang, pramugara dan pramugari, bahagian khidmat pelanggan, ejen dan kejuruteraan serta program induksi bagi kakitangan baru.


Akademi itu dilengkapi pelbagai kemudahan dan dibimbing tenaga pengajar terlatih serta berpengalaman.

Airasia To Launch Colombo-KL Route


KUALA LUMPUR, June 10 (Bernama) -- Low cost carrier, AirAsia will be launching its new route between Kuala Lumpur and Colombo, Sri Lanka this August.

The maiden flight will be on August 15, following which there will be daily direct flights between the two capital cities, it said in a statement here Wednesday.

The low cost carrier said promotional all-in fares are being offered from as low as LKR4,090 (RM99) one-way and exclusively available online via AirAsia's website at www.airasia.com.

Booking for promotional seats ends June 14, 2009 for travel between Aug 15, 2009 and April 30, 2010.



-- BERNAMA

AirAsia expands while MAS cuts capacity
Written by Isabelle Francis
Monday, 15 June 2009 10:48

KUALA LUMPUR: The downturn in the airline industry, which is set to see some US$9 billion (RM31.5 billion) losses this year, has painted different operating landscapes for full-service carriers and low-cost carriers.

At home, budget airline AirAsia Bhd and full-service national carrier Malaysian Airline System Bhd (MAS) are adjusting capacities differently to fly through the current turbulence.

AirAsia group CEO Datuk Seri Tony Fernandes told The Edge Financial Daily in a recent interview the budget carrier was planning another 24% increase in capacity this quarter after its results for the first quarter of 2009 (1Q09) exceeded expectation.

Fernandes said the airline would add another 24% in capacity in 3Q, seasonally the airline’s weakest quarter.

“Demand is out there. It is just a matter of pricing your product,” he added.Fernandes. Photo by Mohd Izwan Mohd Nazam


AirAsia’s load factor remained commendable while its yields increased to 13.3 sen per revenue passenger kilometre (RPK) when capacity expanded 19% in 1Q09. The first quarter is the airline’s second weakest quarter.

Meanwhile, MAS, which posted operating losses in 1Q09, said last week it had cut capacity by as much as 11% — more than the 6% it had initially planned for the year.

Although MAS officials did not confirm further cuts in capacity during its results announcement last Friday, 1Q09 numbers suggested further cuts would be justified.

An industry analyst noted recently that a 15% to 20% decline in passengers carried in 1Q09 would be enough to trigger more cuts in MAS’ capacity.

In 1Q09, MAS saw a 24.5% drop in passenger traffic to 2.46 million while RPK dipped 28%. Seat factor dropped 13.1 percentage points to 56.1% but yield was up 4% to 29.5 sen per RPK.

MAS executive director and chief financial officer Tengku Azmil Zaharuddin in a recent email interview with The Edge Financial Daily did not rule out further cuts that may lead to grounding of planes.

It is understood that the national carrier has already parked 25% of its cargo fleet since end-2008.

“We are monitoring the global economic situation and its impact on travel demand. We have not finalised our decision on how much further cuts may be necessary, therefore, we are unable to confirm at this time if we are grounding some planes,” Tengku Azmil said in an email reply.

He also said MAS had ruled out all major expenditure this year. Accordingly, MAS would delay the receipt of three ATR aircraft, which were meant for its subsidiary Firefly, he added.

Without giving details, Tengku Azmil said it had tightened its investment criteria, which had resulted in less cash being used up. He also said it had a positive operating cash flow, before changes in working capital.

“It is difficult to predict the 2009 cash flow due to dynamic operating conditions; case in point is the H1N1 virus,” Tengku Azmil added.

AirAsia X orders 10 A350s for US$2.2b
Published: 2009/06/17

http://www.btimes.com.my/articles/aax16/pix_topright

By buying the A350, AirAsia and AirAsia X have now got their strategy fixed all the way to 2020, says AirAsia Bhd group CEO

Long-haul budget carrier AirAsia X has inked a contract to buy 10 Airbus A350s worth more than US$2.2 billion (RM7.8 billion), with option to purchase another five.

Deliveries are scheduled between 2016 and 2018.

The A350s will complement its current fleet of A330s.

The airline has ordered 25 A330s, due to be delivered through 2015, of which two have been delivered since October last year.

The A350-900 variant will be configured to seat 425 passengers in a two-class layout.

The deal was made at the Paris Air Show in France yesterday.

"Business is all about timing and long-term strategy. By buying the A350, AirAsia and AirAsia X have now got their strategy fixed all the way to 2020.

"The vision of creating the world's first long-haul and short-haul low-cost airline is complete and we are all very excited," AirAsia Bhd group chief executive officer (CEO) Datuk Seri Tony Fernandes said in a statement yesterday.

AirAsia X CEO Azran Osman-Rani said it selected the A350 XWB for the step-change it offers in terms of operating economics and its passenger appeal.

"We believe the A350 will be an industry game-changer that will allow us to dramatically operate with unprecedented unit costs for long-haul flights to Europe and North America, opening up new tourism markets and exciting destinations," he added.

AirAsia X currently flies to London, the UK; Melbourne, Perth and Gold Coast in Australia; and Tianjin and Hangzhou in China.

Airbus president and CEO Tom Enders said the A350 XWB burns up to 25 per cent less fuel per seat and covers a range of up to 15,400km.

Firm orders for the A350 XWB now stand at 493 from 31 customers worldwide.

US$2bil Airbus jets for AirAsia X
By RACHAEL KAM
waaa.....hebat sungguh!!!!!:banana::banana::banana:

http://biz.thestar.com.my/archives/2009/6/17/business/p1-airasiacht.JPG

AirAsia announces order for 10 A350s with option for five more

PETALING JAYA: AirAsia Bhd has announced a firm order for 10 Airbus A350 XWB aircraft with an option for five more by its low-cost long-haul carrier AirAsia X, a deal valued at US$2.2bil.

Deliveries were scheduled for between 2016 and 2018, the company said in a statement yesterday after the announcement was made by AirAsia and Airbus at the Paris Air Show.

It said AirAsia X had selected the A350-900 variant for its fleet, which would be configured to seat 425 in a two-class layout.


AirAsia group chief executive officer Datuk Seri Tony Fernandes said: “Business is all about timing and long-term strategy. At AirAsia, we have always planned for the long term.”

The new deliveries would further complement AirAsia X’s fleet of A330, he said in the statement.

The airline has ordered 25 A330s which are due for delivery through 2015. Two of the aircraft have been delivered so far since October 2008.

AirAsia, on the other hand, is the largest customer for Airbus A320 aircraft. It has a firm order, signed in 2005, for 175 A320s and an option for 50 more. It has taken delivery of 60 of the aircraft and the balance will be delivered by 2014.

“The purchase indicates AirAsia X’s ambition to fly farther afield and to serve more destinations than it currently serves, including London, Melbourne, Perth and Gold Coast (Australia) and Tianjin and Hangzhou (China),” Fernandes said.

Fernandes, who is also director and founder of AirAsia X, added that during the current global economic uncertainties, where airlines were cutting routes and grounding staff and aircraft, AirAsia and AirAsia X were determined to fulfil and realise their potential.

“The economic downturn presents AirAsia with an opportunity to gain market share with our low-fare, high-quality business model,” he said.

AirAsia X CEO Azran Osman-Rani said it selected the A350 XWB for the step-change it offered, in terms of operating economics and its exceptional passenger appeal.

“We believe the A350 aircraft will be an industry game changer that will allow us to dramatically operate with unprecedented unit costs for long-haul flights to Europe and North America, opening up new tourism markets and exciting destinations.

“With the A350 XWB in our fleet, we will be able to set new standards in the low-cost long-haul market, making it possible for more people to fly farther in comfort at ever more affordable prices,” he said.

AirAsia’s passenger volume grew by 21% year-on-year to 3.1 million in the first quarter of 2009. It has so far carried over 70 million guests.

An analyst from a local research house said the purchase of 10-plus-five Airbus A350 was in line with AirAsia X’s expansion.

He said this showed the commitment of the management to grow the company. “We do not see any immediate impact on the company’s financial performance but the only concern is the gearing level of the company,” he told StarBiz.

AirAsia X steps up route plans, to lease more A340s
By Presenna NambiarPublished: 2009/06/18



Long-haul budget carrier AirAsia X will be looking to lease more A340s between 2010 and 2016 as part of plans to service a few more European routes and possibly a North American destination.

On Tuesday, it inked a contract to buy 10 A350s worth more than US$2.2 billion (RM7.8 billion), with option to purchase another five. Deliveries are scheduled between 2016 and 2018.

"We expect the lease market to soften further as the Boeing 787s come on stream. It is not difficult to find A340s; it's just that we're choosy and patient, waiting to pounce on a lease only when it is very favourable," AirAsia X chief executive officer Azran Osman-rani told Business Times through e-mail yesterday.

Come 2016, the A350s will replace its A340s, of which the airline has two at present.

"The 2016 timing works because it will be the end of our current A340 lease term. The A330s will remain in our aircraft fleet, covering the Asia-Pacific region (within eight hours of flying)," Azran said.





Shares of parent company AirAsia Bhd rose four sen to close at RM1.17 yesterday as investors responded favourably to news of the purchase.

Some 4.95 million shares were traded.

Azran said that even though the A350s will need a newly-trained crew because of its next-generation cockpit, this will be offset by the huge fuel efficiency which will help lower costs.

For example, fuel burn per passenger seat on the A350 flying to London is 50 per cent lower than for the A340, he said.

The new planes will allow AirAsia X to open up European, North American and New Zealand routes.

"It will likely be used for our London route, for which we intend to have multiple daily frequencies to London by 2016.

"We also expect two to four more European destinations, two in North America (at least one on the US West Coast and another on the East Coast) and possibly some African and New Zealand options."

Azran added that AirAsia X will not have any problems financing the purchase as substantial payments for the aeroplanes will only start in 2013. The first downpayment was not substantial.

"We don't expect a material change in our cash flow from this A350 order prior to 2013. Anyway, by that time, we would have paid off a big chunk of our A330 debt. So, we should have more cash capacity for the A350s."

How will Airasia X pay US$2.2b for the 10 Airbus ordered?
By C.S. TAN


PETALING JAYA: AirAsia X’s latest fleet purchase has raised concerns among analysts that it is following the high debt-leverage route of AirAsia Bhd, expanding the risks to its bankers.

The long-haul, low-cost airline company’s CEO, Azran Osman-Rani, said there was a fundamental difference between the business model of AirAsia X and that of traditional airlines.

“For AirAsia X, most of its tickets are sold through the Internet and bought by customers months before their flights.


Azran Osman-Rani ... 'We have forward cash'.
“As for traditional airlines, tickets are mainly bought through agents and paid by customers just two weeks before the flights.

“The agents may even pay the airlines after the flights,” he told StarBiz in a telephone interview yesterday. The airline has a similar business model as AirAsia as both are low-cost carriers.

“We have forward cash. In this business, what is important is cashflow. We’re holding the forward cash,” he added.

It was announced on Tuesday that AirAsia X placed a firm order for 10 Airbus A350 aircraft which carried a list price of US$2.2bil.

This follows an earlier order for 25 Airbus A330 planes for delivery between last year and 2015.

On the company’s debt leverage, he said AirAsia X’s gearing was about 200% and was not expected to increase.

The 10 planes in the latest order will only be delivered from 2016.

“It’s not like we’re buying all the planes at the same time. But it is important to place the deposits now. This is to ensure we’ll have the delivery slots. The deposit is just US$10mil, we’re not paying US$2.2bil yet,” he added.

Progressive payments will start 36 months from delivery but the bulk of payments will be made when the planes are delivered.

By the time the A350 planes are delivered from 2016, most of the borrowings taken for the A330 planes would have been repaid.

Azran said some equity analysts did not understand AirAsia X’s business model, but that was not important.

“What is important is what the banks do. If the banks are worried with our gearing, wouldn’t they be the first to run away?

“But the banks are saying they’ll fund all our deliveries this year,” he said.

AirAsia X will take delivery of three Airbus A330 planes between September and December. Financing has been obtained for these planes.

Currently, the airline flies five planes to London, Melbourne, Perth and Gold Coast (Australia), and Tianjin and Hangzhou in China.

Its most profitable routes are Gold Coast and Hangzhou because these were the first two routes flown by the airline.

“They’re more matured markets for us than London or Melbourne. It’ll take us a year to build brand awareness for the newer routes and, initially, the pricing has to be aggressive,” he said.

Beli pesawat strategi jangka panjang




LANGKAH AirAsia membeli 10 pesawat Airbus A350 XWB melalui syarikat sekutu jarak jauhnya, AirAsia X adalah strategi jangka panjang, iaitu sehingga 2020.

Ketua Pegawai Eksekutif Kumpulan AirAsia, Datuk Seri Tony Fernandes, berkata pembelian itu adalah wawasan yang melengkapkan syarikat penerbangan tambang murah jarak dekat dan jarak jauh pertama dunia itu kini.

AirAsia X memilih varian A350-900 bagi kumpulan pesawatnya, yang mempunyai 425 tempat duduk penumpang dalam dua kelas.

Pengumuman berkenaan dibuat AirAsia dan Airbus pada Pameran Udara Paris, kelmarin.

Dengan nilai AS$ 2.2 bilion, perjanjian berkenaan membabitkan pilihan lima lagi pesawat A350 dengan penghantaran dijadualkan antara 2016 hingga 2018, di mana ia akan melengkapkan rangkaian pesawat A330 AirAsia X.

Menurut kenyataan AirAsia di Paris, syarikat penerbangan itu turut membuat 25 tempahan pesawat A330 yang penghantarannya dijangka tiba menjelang 2015 tetapi sudah menerima dua daripada pesawat berkenaan sejak Oktober 2008.

AirAsia, dalam perkembangan lain, adalah pelanggan terbesar pesawat Airbus A320 dengan tempahannya mencecah 175 unit serta pilihan untuk 50 lagi. Sehingga kini 60 pesawat sudah dihantar dan bakinya menjelang 2014.

Pembelian berkenaan mencerminkan wawasan AirAsia X memberikan perkhidmatan ke lebih banyak destinasi berbanding sedia ada merangkumi London, Melbourne, Perth dan Gold Coast di Australia, serta Tianjin dan Hangzhou di China.

Mengulas lanjut, Fernandes yang juga Pengarah dan Pengasas AirAsia X, berkata ketika suasana ekonomi global yang tidak menentu ini, ada syarikat penerbangan mengurangkan laluan dan memberhentikan kakitangan dan pesawat.

“Kelembapan ekonomi sebaliknya menjadikan AirAsia sebagai syarikat penerbangan tambang murah terbesar Asia, peluang yang belum pernah terjadi untuk meraih bahagian pasaran dengan tambang murah kami, model perniagaan berkualiti tinggi,” katanya.

Sementara itu, Ketua Pegawai Eksekutif AirAsia X, Azran Osman-Rani, berkata pihaknya memilih A350 XWB disebabkan tawarannya dari segi ekonomi dalam operasi dan kelebihan kepada penumpang.

“Kami percaya pesawat A350 akan menjadi pemangkin dalam industri yang akan membolehkan kami beroperasi dengan kos unit yang belum pernah terjadi untuk penerbangan jarak jauh ke Eropah dan Amerika Utara, membuka pasaran pelancongan baru dan destinasi menarik.

“Oleh itu, syarikat berpeluang menetapkan taraf baru dalam pasaran perjalanan jarak jauh tambang murah, yang membolehkan pelanggan selesa,” katanya.

Bankers biggest threat to airlines: Fernandes
Published: 2009/06/19

THE biggest threat to the global airline industry isn’t the swine flu outbreak, according to AirAsia Bhd’s Datuk Seri Tony Fernandes.

“We’ve been through SARS, bird flu, tsunami, you name it,” Fernandes, the founder and chief executive officer of Southeast Asia’s biggest discount carrier, said at the Paris Air Show this week. “The only swine now are bankers.”

Carriers from Air France-KLM Group to AirAsia, already coping with a slump in travel, also have to deal with banks that are unwilling to finance aircraft purchases. Airlines have to come up with money to pay for jets ordered years ago or face penalties for cancellations. In 2010, the funding shortfall may reach US$36 billion, or as much as 60 per cent of the spending on larger aircraft, said Nick Cunningham, an analyst at Evolution Securities in London.

“Debt is the critical component of any strategy right now,” said Steve Rimmer, CEO of Guggenheim Aviation Partners LLC in Issaquah, Washington. Guggenheim has 56 aircraft either owned or under contract with a value of US$2.5 billion and makes money by leasing them to carriers in return for regular payments. “We, like everyone, are chasing debt.”

Airbus secures US$12.9b commitments for 127 planes
by Joseph Chin
Monday, 22 June 2009 12:33

KUALA LUMPUR: Airbus has secured commitments for 127 aircraft valued at US$12.9 billion at the 2009 Paris Air Show, the airline manufacturer said.

Airbus said these commitments include firm orders for 58 aircraft worth almost US$6.4 billion, plus memoranda of understanding (MoU) agreements for a further 69 aircraft totaling US$6.5 billion,” it said on June 22.

On the firm orders for the 58 planes, it said Qatar Airways placed an order for 24 single-aisle aircraft valued at US$1.9 billion, The planes comprised of 20 A320s and four A321 aircraft.

Vietnam Airlines signed a US$1.4 billion firm order for 16 A321s. In addition, Air Asia X expressed announced a firm order for 10 A350-900s valued at US$2.4 billion.

Other firm airliner orders made during the show include Cebu Pacific, which ordered five A320s; Aigle Azur for one A319; and Zest Air of the Philippines one A320. A private customer also ordered one Airbus Corporate Jet (ACJ) A320 Prestige.

“Moreover, as a further indication of the industry’s forward planning at the show, Airbus received MoU commitments for a further 69 aircraft,” said Airbus.

These MoUs comprised of 50 A320s for Wizz Air worth US$3.8 billion; 10 A321s for Indian based Paramount Airways worth US$900 million; two A330-200s plus five A330-300s for Turkish Airlines together worth US$1.4 billion; and two A350-900s for Vietnam Airlines worth US$480 million.

Airbus chief operating officer customers John Leahy said Airbus' commercial performance shows that the airline industry continues to invest in the most fuel-efficient and environmentally-friendly aircraft.

“Our customers are addressing both the long-term industry growth as well as the necessary replacement of older less efficient aircraft,” he added.

Malaysia Airports to go easy on tax owed by AirAsia
Tuesday June 23 2009

KUALA LUMPUR, June 23 — Malaysia Airports Holdings Berhad (MAHB) did not take any drastic action to claim the arrears in airport tax owed by AirAsia because it will only affect the operation of the low-cost carrier terminal (LCCT), Prime Minister Datuk Seri Najib Razak said today.

Najib, who is also the finance minister, said it would also give a negative impact to MAHB as the operator and manager of airports.

As AsiaAsia has chalked up arrears of RM65 million, MAHB was in negotiations with the airline to resolve the matter, he said.

MAHB was confident of resolving the matter soon, he said in a written reply to Wee Choo Keong (PKR-Wangsa Maju) who had asked him to state why MAHB had accorded AirAsia the special privilege of owing RM65 million in airport tax as at February 28 this year when passengers had already paid the tax in advance.

Wee had also asked why, when AirAsia had been reporting making huge profits every year from its inception, there was a need for MAHB to negotiate with AirAsia over the settlement of the airport tax debt. – Bernama

AirAsia's RM65m tax poser







MALAYSIA Airports Holdings Berhad (MAHB) did not take any drastic action to claim the arrears in airport tax owed by AirAsia because it will only affect the operation of the low-cost carrier terminal (LCCT), Prime Minister Datuk Seri Najib Razak said yesterday.

Najib, who is also the finance minister, said it would also give a negative impact to MAHB as the operator and manager of airports.

As AsiaAsia had chalked up arrears of RM65 million, MAHB was in negotiations with the airline to resolve the matter, he said.

MAHB was confident of resolving the matter soon, he said in a written reply to Wee Choo Keong (PKR-Wangsa Maju) who had asked him to state why MAHB had accorded AirAsia the special privilege of owing RM65 million in airport tax as at Feb 28 this year when passengers had already paid the tax in advance.

Wee had also asked why, when AirAsia had been reportedly making huge profits every year from its inception, there was a need for MAHB to negotiate with AirAsia over the settlement of the airport tax debt.

On another question, Najib denied that Biro Tatanegara (BTN) walks on a tight racial tightrope that could lead to disunity among the people.

Najib said since its formation in 1981, BTN had carried out programmes in line with its main objectives -- to bolster the sense of patriotism by thriving on good values and love for the country.

"BTN's function will now be directed towards instilling the spirit of 1Malaysia, people first, performance now," he said in a written reply to Datuk Ngeh Koo Ham (DAP-Beruas) at the Dewan Rakyat. Ngeh raised an allegation published in the Star on May 22 that BTN courses bred disunity as they espoused racial rights.

Najib said BTN was responsible for raising the people's commitment towards the country's vision and efforts to achieve excellence and prepare the people to uphold the policies when striving towards development and prosperity.

"The information imparted to the participants is based on historical facts and does not thrive on narrow racial sentiments," Najib added.

He said the participants were free to voice their opinions and make their stand and the question of ridiculing or denigrating non-Malays did not arise as the information relates to the Federal Constitution. -- Bernama

Sumthin big is coming ? What's that ?

AirAsia hapuskan caj pentadbiran


KUALA LUMPUR: AirAsia Bhd menghapuskan caj pentadbiran ke atas semua tiket penerbangannya termasuk tiket AirAsia X dan syarikat sekutunya, AirAsia Thailand dan AirAsia Indonesia mulai hari ini.

Ketua Eksekutif Kumpulan AirAsia, Datuk Seri Tony Fernandes, berkata penghapusan caj itu akan menyebabkan AirAsia kehilangan pendapatan antara kira-kira RM300 juta hingga RM400 juta setahun.

Beliau berkata, ia akan diganti dengan pertambahan penumpang dan pendapatan lain seperti jualan makanan dan barangan lain dalam pesawat.

"Kehilangan itu akan digantikan dengan peningkatan pendapatan daripada pertambahan penumpang" katanya di sini, hari ini.

Ini bermakna harga tiket yang dibeli di airasia.com akan menunjukkan harga tiket penuh termasuk cukai lapangan terbang.

Caj pentadbiran yang dikenakan ke atas tiket sehala AirAsia sebelum ini adalah antara RM22.50 hingga RM43.50

^^ That's ABSOLUTELY a BIG thing ! :eek2:

Any translation to English?

AirAsia hapuskan caj pentadbiran


KUALA LUMPUR: AirAsia Bhd menghapuskan caj pentadbiran ke atas semua tiket penerbangannya termasuk tiket AirAsia X dan syarikat sekutunya, AirAsia Thailand dan AirAsia Indonesia mulai hari ini.

Ketua Eksekutif Kumpulan AirAsia, Datuk Seri Tony Fernandes, berkata penghapusan caj itu akan menyebabkan AirAsia kehilangan pendapatan antara kira-kira RM300 juta hingga RM400 juta setahun.

Beliau berkata, ia akan diganti dengan pertambahan penumpang dan pendapatan lain seperti jualan makanan dan barangan lain dalam pesawat.

"Kehilangan itu akan digantikan dengan peningkatan pendapatan daripada pertambahan penumpang" katanya di sini, hari ini.

Ini bermakna harga tiket yang dibeli di airasia.com akan menunjukkan harga tiket penuh termasuk cukai lapangan terbang.

Caj pentadbiran yang dikenakan ke atas tiket sehala AirAsia sebelum ini adalah antara RM22.50 hingga RM43.50

It means, Air Asia abolished all Adminisrative chages ( MYR 22.50-MYR 43.50 ) for all flights starting today.

AirAsia hapuskan caj pentadbiran


KUALA LUMPUR: AirAsia Bhd menghapuskan caj pentadbiran ke atas semua tiket penerbangannya termasuk tiket AirAsia X dan syarikat sekutunya, AirAsia Thailand dan AirAsia Indonesia mulai hari ini.

Ketua Eksekutif Kumpulan AirAsia, Datuk Seri Tony Fernandes, berkata penghapusan caj itu akan menyebabkan AirAsia kehilangan pendapatan antara kira-kira RM300 juta hingga RM400 juta setahun.

Beliau berkata, ia akan diganti dengan pertambahan penumpang dan pendapatan lain seperti jualan makanan dan barangan lain dalam pesawat.

"Kehilangan itu akan digantikan dengan peningkatan pendapatan daripada pertambahan penumpang" katanya di sini, hari ini.

Ini bermakna harga tiket yang dibeli di airasia.com akan menunjukkan harga tiket penuh termasuk cukai lapangan terbang.

Caj pentadbiran yang dikenakan ke atas tiket sehala AirAsia sebelum ini adalah antara RM22.50 hingga RM43.50

Thai AirAsia waives ticket booking fees
Published: 2009/06/24




THAI AirAsia Ltd, partly owned by AirAsia Bhd, will waive ticket booking fees from today to attract more passengers because demand has weakened during the recession, said chief executive officer Tassapon Bijleveld.

Passengers will pay only air fares and taxes, Tassapon said.

The carrier removed a fuel surcharge in January.

The lower ticket cost may help the company meet its target of 5.2 million passengers this year, he said. -- Bloomberg

AirAsia scraps admin fees to make tickets cheaper:banana::banana::banana::banana::banana:


KUALA LUMPUR: Malaysian budget airline AirAsia on Wednesday abolished administrative fees on all its flights in a move to reduce fares and bolster sales amid the global slowdown.

AirAsia Chief Executive Tony Fernandes said scrapping the fee creates further savings for passengers as they will now pay only the fare and airport tax.

AirAsia removed fuel surcharges in November last year.

http://biz.thestar.com.my/archives/2009/6/24/business/latestairasia.JPG
AirAsia Chief Executive Tony Fernandes smiles as he talks to the media during a press conference in Kuala Lumpur on Wednesday. The Malaysian budget airline AirAsia on Wednesday abolished administrative fees on all its flights in a move to reduce fares and bolster sales amid the global slowdown. (AP Photo/Mark Baker)

The fee ranged from 22.5 ringgit ($6.40) to a maximum of around 43 ringgit per ticket and removing it will cost the airline 400 million ringgit ($113 million) a year.

Fernandes said the region's biggest budget carrier is confident it can increase ticket sales and generate income from other sources to offset the loss of revenue.

"It's been a tough six months for the airline industry but AirAsia is getting stronger and stronger. We believe we will increase our load factor and become more competitive," he told a news conference.

Airlines worldwide are reeling from the global economic slump that has choked passenger and cargo traffic.

Many have cut capacity, grounded planes and shed their work force to cope with the downturn.

But AirAsia is expanding and says it is benefiting as travelers cut cost and downgrade to budget carriers.

Its net profit in the quarter through March hit a record 203.2 million ringgit ($57 million), up 26 percent from a year earlier. - AP

On the Net:


www.airasia.com

Latest: AirAsia removes admin charges
Written by Yantoultra Ngui Yichen
Wednesday, 24 June 2009 12:59

KUALA LUMPUR: AirAsia Bhd has removed administration charges, which was imposed from midnight on June 23, as part of its aim to boost traveling, said its group chief executive officer Datuk Sri Tony Fernandes.

"It will affect RM400 million all over the whole group, but we will replace it with more volume. Or else you won't be seeing me here anymore," he told reporters at the adjustment of tariff briefing on June 24. "In terms of AirAsia itself here is over RM250 million."

He said the low cost carrier had been working on abolishing the admininistration fee from its fare structure for six month, adding the revenue will be replaced with the sales of food, hotel bookings.

AirAsia scraps admin fees to woo more passengers
By Presenna NambiarPublished: 2009/06/25





AIRASIA Bhd (5099) has scrapped administration charges, which contribute some RM400 million to the group, from its fare structure in a move to attract more passengers.

The budget carrier's administration charges range between RM22.50 and RM43.50.

AirAsia chief executive officer Datuk Seri Tony Fernandes is confident that the loss in revenue will not hurt earnings, saying the airline will make up for it through ancillary income as well as a surge in passenger volume.

"Our routes are maturing, they are getting more profitable, our hotel side is booming, we are looking at other ways of generating income.
"I continue to be very bullish about the industry, as a product, the fact that we can reduce charges, at a time like this means that we are doing good, I think," Fernandes told reporters in Kuala Lumpur yesterday.

First quarter passenger numbers for the airline were 21 per cent higher than those recorded last year.

"We are not going to fill up a 30 million capacity low-cost carrier terminal just by waiting for things to happen. We have to constantly innovate to keep the passengers coming," Fernandes said.

He hoped airports would take the cue, by reducing their charges around the world and at home.

AirAsia has been calling for Malaysia Airports Holding Bhd to reduce airport tax charges for the carrier from RM51 for the international sector to RM10 for some time now.

AirAsia chairman Datuk Aziz Bakar said the airline has yet to pay the RM65 million airport tax to MAHB to negotiate lower charges for airports in the country.

This is the second time the budget carrier has withheld payment to MAHB for airport charges.

On fuel surcharge, Fernandes said the airline will only reintroduce fuel surcharge should crude oil price reach the US$100 per barrel (RM355) mark again. The oil price trades at around US$70 (RM248) a barrel now.

"We have systems in place to manage oil up to that level now," Fernandes said.

The airline currently does not hedge any of its fuel requirements and appears to have no plans to do so anytime soon.

"We are not hedged (against crude oil prices) at all now, and I don't see any demand for crude oil to boost prices. Hedging is just too expensive," Fernandes said.

Meanwhile, on the influenza A (H1N1), Fernandes said demand for seats has not been affected by the outbreak.

brave move air asia...
wish u all the best!!!
Malaysia Boleh!!!!

Thai AirAsia Targets 5.2 Million Passengers This Year
By D. Arul Rajoo

BANGKOK, June 24 (Bernama) -- Thai AirAsia, a subsidiary of Malaysia's AirAsia low-cost carrier, is confident of achieving its target of 5.2 million passengers this year, despite several hicups, including political instability, Influenza A(H1N1) and global economic recession.

Its chief executive officer, Tassapon Bijleveld, said the strong showing in the first quarter of the year -- where the company posted a 15 to 20 per cent growth as compared to the corresponding period last year -- had boosted their confidence.

"This growth was achieved, despite the Songkran riot (anti-government protests).

"But the market is weak currently, and we are doing our best to stimulate the market with such initiatives," he said, after announcing its parent company's move to waive the administration fee for passengers booking tickets with the airlines.

Tassapon is hopeful that waiving the administration fee (100 baht in Thailand) would boost ticket sales as passengers just needed to pay for ticket fare and airport tax, which is 50 or 100 baht for domestic routes and 700 baht for international flights departing from the Kingdom.

Last year, the airline carried 4.2 million passengers.

Tassapon said the Influenza A(H1N1) scare was affecting the market as the number of passengers had dropped. To date, the Thai Public Health Ministry has confirmed 985 such cases in the country.

"We hope to see signs of recovery within 60 days as people are cautious now because of the flu. But the key to travelling in Thailand is political stability and fortunately it's good now," he said.

Tassapon said the Phuket and Bali sectors were among the best routes served by the airline, adding that plans to make the island the second Thai hub after Bangkok, was expected to materialise by the fourth quarter of the year.

On its expansion plan, Tassapon said they were finalising plans to open several destinations in India and more cities in China, year end.

"We are aiming to tackle China and India as they are big markets. We intend to do that once we receive more Airbus planes by the end of the year," he said, adding that it currently had nine Airbus and six Boeings.

-- BERNAMA

brave move air asia...
wish u all the best!!!
Malaysia Boleh!!!!

they can always put the admin charges in the price of the tickets... that'd remains to be seen.

according to airasia financial reports, avg ticket prices has been on the uprise trend every quarter...

but, i always admire airasia for their marketing and POS...

AirAsia hilang RM400 juta mansuh yuran
25 Jun 2009

KUALA LUMPUR 24 Jun - Seperti mana slogannya 'semua orang boleh terbang.' AirAsia Bhd. (Airasia) terus berusaha menjadikan penerbangan bersama syarikat tambang murah itu lebih murah dan lebih mudah.

Selepas menghapuskan bayaran surcaj hampir tujuh bulan lalu, AirAsia Bhd. kini memansuhkan pula yuran pentadbiran bagi kesemua penerbangan domestik dan antarabangsa, berkuat kuasa hari ini.

Dengan pemansuhan itu, para penumpang AirAsia di Malaysia dan anak syarikatnya di Thailand dan Indonesia serta AirAsia X hanya perlu membayar harga tiket dan cukai lapangan terbang sahaja.

Penghapusan yuran pentadbiran itu juga adalah untuk selama-lamanya.

Ketua Pegawai Eksekutif Kumpulan AirAsia, Datuk Seri Tony Fernandes berkata, langkah itu merupakan strategi agresifnya untuk meningkatkan jumlah penumpang menggunakan perkhidmatannya.

''Jadi, mulai hari ini para penumpang yang mahu menggunakan perkhidmatan AirAsia hanya perlu membayar harga tambang dan cukai lapangan terbang... tiada lagi caj-caj lain,'' katanya pada sidang akhbar selepas mengumumkan pemansuhan yuran pentadbiran di sini hari ini.

Difahamkan, sebelum ini AirAsia mengenakan yuran pentadbiran antara RM22.50 hingga RM45.50 bagi laluan sehala.

Serentak pengumuman itu, AirAsia turut melancarkan kempen tambang promosi serantau mulai 24 hingga 28 Jun untuk penerbangan antara 1 Oktober 2009 hingga 30 April 2010.

Kesemua promosi yang menawarkan potongan 20 peratus harga tambang itu ditawarkan melalui www.AirAsia.com berdasarkan siapa cepat dia dapat.

Beliau juga menjelaskan pemansuhan yuran pentadbiran itu akan menyebabkan AirAsia akan kehilangan pendapatan kira-kira RM400 juta bagi operasi kumpulan termasuk RM250 juta untuk operasi di Malaysia.

Bagaimanapun, Fernandes yakin strategi dan pemasaran agresif yang diambil oleh syarikat penerbangan itu mampu melonjakkan jumlah penumpangnya.

Malah, beliau yakin, pemansuhan yuran tersebut tidak akan menjejaskan perolehan syarikat memandangkan AirAsia mempunyai pelbagai alternatif lain yang mampu meningkatkan pendapatannya.

''AirAsia percaya dengan model perniagaan sekarang, kita masih berupaya menjana pelbagai pendapatan lain seperti menerusi jualan makanan dan minuman serta hotel.

''Tetapi kami yakin dengan pemansuhan yuran pentadbiran ini sudah pasti kami dapat menambah faktor muatan AirAsia,'' tambah beliau.

Ditanya mengapa baru sekarang AirAsia bersedia untuk memansuhkan yuran berkenaan, Fernandes berkata: ''Kami baru melakukannya kerana model perniagaannya sudah selari dengan keupayaannya''.

Dalam pada itu, Fernandes berkata, AirAsia tidak berhasrat untuk menarik balik pemansuhan surcaj yang dilaksanakan pada November tahun lalu.

Katanya, syarikat penerbangan tambang murah itu masih berupaya menyerap kos meskipun harga minyak berada di sekitar AS$100 (RM350) setong.

Bagaimanapun, secara berseloroh, Fernandes berkata, syarikat itu mungkin akan menimbangkan melaksanakan surcaj sekiranya harga minyak kembali melonjak.

AirAsia ketika mengumumkan pemansuhan surcaj tahun lalu berkata, pihaknya tidak menetapkan tempoh tertentu untuk pelaksanaan pengecualian, tetapi tidak menolak kemungkinan penghapusan surcaj tersebut turut tertakluk kepada harga minyak mentah dunia.

http://biz.thestar.com.my/archives/2009/6/25/business/p4airasia.jpg
From left: AirAsia X CEO Azran Osman-Rani, Datuk Aziz Bakar (middle), regional head of commercial Kathleen Tan and Datuk Seri Tony Fernandes at the media conference

they can always put the admin charges in the price of the tickets... that'd remains to be seen.

according to airasia financial reports, avg ticket prices has been on the uprise trend every quarter...

but, i always admire airasia for their marketing and POS...

I had the same feel too, but when I checked today..

KUL-LGK-KUL is just RM 15 return ! ( inclusive )

Government Appoints Consultant To Resolve Airport Tax Arrears Issue
June 24, 2009 22:19 PM

KUALA LUMPUR, June 24 (Bernama) -- The government has appointed a consultant to resolve the issue of airport tax arrears of RM65 million owed by AirAsia Bhd to Malaysia Airports Holdings Bhd (MAHB).

Prime Minister Datuk Seri Najib Tun Razak said the government has studied the matter and it would be used as a basis to resolve the problem.

"There is still a gap between AirAsia and MAHB and we have appointed a consultant to find the middle path ... it has been studied now by the government and we will use that as a basis to resolve the problem between them.

"It will be seen as an objective, we are not going to take side ... we will decide on the basis of principle," he said at a press conference after officiating at The National Baitulmal Convention 2009 at Masjid wilayah Persekutuan here Wednesday.

Najib, who is also finance minister, told the Dewan Rakyat Tuesday MAHB did not take any drastic action to claim the arrears owed by AirAsia because it would only affect the operation of the low-cost carrier terminal.

He said it would also give a negative impact to MAHB as the operator and manager of airports.

Najib said MAHB was in negotiations with the airline to resolve the matter, adding MAHB was confident in resolving the matter.

-- BERNAMA

Source: http://bernama.com.my/bernama/v5/newsgeneral.php?id=420567

Source: http://www.airasia.com/

http://www.airasia.com/storage/bo/aaportal.model.ContentFileUpload/f67591e6-7f000010-17d87690-b6d814c2/name/noadmin_idid.gif

http://www.airasia.com/storage/bo/aaportal.model.ContentFileUpload/f6763b57-7f000010-17d87690-4698eaf3/name/noadmin_myen.gif

http://www.airasia.com/storage/bo/aaportal.model.ContentFileUpload/f6754652-7f000010-17d87690-c93d5793/name/noadmin_chch.gif

http://www.airasia.com/storage/bo/aaportal.model.ContentFileUpload/f6768d32-7f000010-17d87690-3dc69fc6/name/noadmin_thth.gif

http://www.airasia.com/storage/bo/aaportal.model.ContentFileUpload/f676b4a2-7f000010-17d87690-a56edcb0/name/noadmin_vnvn.gif

Pre-Ordered Hot Meal
Enjoy a healthy and delicious meal on your AirAsia.
Nasi Lemak Combo
MYR8/IDR24,200/THB80 (low cost airline but a bit high cost makan :cheers:)

http://www.airasia.com/storage/bo/aaportal.model.ContentFileUpload/7fdce206-7f000010-7bacb000-416c4f7e/name/akMeal_nasilemak.jpg

Asian Fried Rice with Chicken Satay Combo

http://www.airasia.com/storage/bo/aaportal.model.ContentFileUpload/5e7fb3d2-7f000010-1a998360-49f3c96d/name/akMeal_satayrice.jpg

Nasi Briyani (Curry Chicken) Combo

http://www.airasia.com/storage/bo/aaportal.model.ContentFileUpload/7ad34320-7f000010-7e80a000-1146ab95/name/akMeal_briyani.jpg

Roti Canai

http://www.airasia.com/storage/bo/aaportal.model.ContentFileUpload/7ad35b52-7f000010-7e80a000-4c8cc3d2/name/akMeal_roti.jpg

Amazing Hot Dog

http://www.airasia.com/storage/bo/aaportal.model.ContentFileUpload/7fddf4e3-7f000010-7bacb000-2df14d50/name/akMeal_1901.jpg

Sandwich (Chicken Ham & Cheese)

http://www.airasia.com/storage/bo/aaportal.model.ContentFileUpload/7fdce2ee-7f000010-7bacb000-9301f73b/name/akMeal_sandwich.jpg

Smoked Chicken Foccacia

http://www.airasia.com/storage/bo/aaportal.model.ContentFileUpload/cc7f0c76-7f000010-3f117900-ee17343b/name/akMeal_chicfocc.jpg

Source: http://www.airasia.com/site/my/en/page.jsp?reference=akmeal_desc

'AirAsia been paying MAHB monthly'
Published: 2009/06/26

AIRASIA said it has been making monthly payments on the money owing to Malaysia Airport Holdings Bhd (MAHB) for using its airport services.

However, there is a portion that has remained outstanding, pending decision on AirAsia's request for MAHB to review its charging mechanism, AirAsia chairman Datuk Abdul Aziz Abu Bakar said in a statement today.

He said this in response to statements made in the Parliament recently that the company has not paid MAHB since 2002.

"These (outstanding sum) include the high airport terminal charges and tariff which are the same as those applied to the KL International Airport (KLIA) Main Terminal Building which we feel is too high considering the very basis for facilities at the Low Cost Carrier Terminal (LLCT)," he said.

Transport Minister, Ong Tee Kiat had on May 20 told the Parliament that AirAsia owed about RM110 million to MAHB for its use of aiports in the country from March 2002 to March 31, 2008.

"AirAsia is in a strong financial position and able to meet its financial obligations as and when due," the statement said.

The company abided by the government's directive to move to the LCCT from the Main Terminal Building on March 23, 2006 in support of the government's effort to boost the LCC industry in Malaysia and to turn Kuala Lumpur into the regional LCC hub.

"We received indications that MAHB would review for a contract as well as a service level agreement but three years on after the move, neither a commercial agreement or a service level agreement had been prepared and presented to MAHB," Abdul Aziz said.

With the increasing aircraft fleet, increased passenger numbers brought into Malaysia via LCCT and substantial landings due to higher flight frequency and aggressive route expansion, the company has helped MAHB recover its investment in terminal buildings, runway and supporting infrastructure much earlier than expected, he said.

This is the company's contribution to improve the efficient and effective utilisation over some of these charges and that dispute needs to be resolved.

"Contrary to claims made, the current management of AirAsia has paid MAHB on a monthly basis.

"The issue is not one of AirAsia withholding payments to MAHB but the issue is that there is a dispute over some of these charges and that dispute needs to be resolved," Abdul Bakar added.

He, however said that the company welcomed the government's move to appoint a consultant to resolve the issues between AirAsia and MAHB.

"We hope the government's intervention in this matter will help bring about a swift resolution that will be beneficial to all parties concerned," he said.

Since moving to the LCCT in March 2006, AirAsia has been overcharged by no less than RM12 million.

There are also growth incentives on the increase in number of passenger throughput and landings worth no less than RM90 million, for which both parties have been in discussion but yet to reach a conclusion.

AirAsia has since 2003 paid MAHB a total of RM404 million.
In 2008, it paid RM117 million, while in the first five months of this year, over RM40 million has been paid. -- Bernama

AirAsia taken to task over NFL deal :cheers:
While local sports bodies beg for money, airline sponsors American football team
Jonathan Fernandez
Thursday, June 25th, 2009 08:32:00

http://www.mmail.com.my/sites/default/files/imagecache/large/airasia.jpg

SPONSORED: Oakland Raiders team players posted on an aircraft

CHARITY, they say, begins at home. This, apparently does not apply to Malaysia's low budget carrier AirAsia. While its support for local sports has been largely in the form of discounted flights, the carrier is about to splash out millions in cash to an American football team in a major deal to be announced tomorrow.

Baffling is why AirAsia is even pursuing this deal - it doesn't even fly to the US and yet, is doling out cash for a sport with hardly a following in Malaysia.

Equally puzzling is how the no frills airline, which had its early success from strong Malaysian support to see a local airline make a global name, can afford to splash extravagant amounts when it owes Malaysia Airports Holdings Bhd (MAHB) RM65 million in airport tax.

Yesterday, AirAsia even admitted that it was withholding the payment unless MAHB lowered the airport charges! (See accompanying story)

Meanwhile, Malaysian sports figures said AirAsia could do a lot more to support local sports rather than be generous with foreign sponsorships.

Olympic Council of Malaysia (OCM) secretary-general Datuk Sieh Kok Chi said the carrier's support has been quite minimal so far. "At the moment, all we get are minimal rates for flights domestically and within South East Asia. There is no cash funding involved.

"But something is better than nothing. They have helped us, I don't want to be ungrateful by saying that they have not helped at all. However, I'm disappointed as I feel that they can offer much more. But we got to live with what we have."

Sieh continued by saying that OCM does not have constraints in finding sponsors, adding that AirAsia could definitely afford to be more generous.

While details are still sketchy on the National Football League (NFL) deal with the Oakland Raiders, the sponsorship is likely to be worth at least RM1 million. At the sponsorship announcement by AirAsia group chief executive officer Datuk Seri Tony Fernandes and Oakland Raiders owner Mark Davis, the airline will also unveil the Oakland Raiders livery on AirAsia's aircraft.

The event is expected to be attended by Oakland Raiders legend Ted Hendricks and famed Raiderettes (official cheerleaders of the Oakland Raiders) April Dizon, Angel McCoy and Amanda Voecks.

Contacted yesterday, Fernandes declined to say much about the deal.

"There will be a Press conference on Friday (tomorrow) and it will not be fair to others if I respond (to your questions). Everything will be revealed on that day," said Fernandes, who turned AirAsia into Asia's No 1 low budget carrier. AirAsia has expanded its routes outside Asia to include Australia and London. It had announced in March that it was looking at the US and Middle East sectors as well.

And one way the carrier has made headway in globalising its brand name is by involving itself in sports sponsorships - mainly overseas.

Among the millions AirAsia has pumped for international presence includes a reportedly S$1million (RM2.3m) sponsorship for a basketball team in Singapore called Singapore Slingers, which takes part in the National Basketball League.

While the value of its other major sponsorship deals were not revealed, the endorsement of professional referees in the English Premier League, the AT&T Williams team in Formula One, and now with Oakland Raiders, run into millions.

To get an idea of just how much money is being splurged, AirAsia had earlier this year flirted with the idea of being the jersey sponsors for Manchester United - in a deal which would have cost a staggering US$100m (RM340m).

Even a football team in Thailand received three million bahts (RM300,000) in the form of travel, a privilege the Olympic Council of Malaysia (OCM) enjoys with the carrier.

AirAsia was also the main sponsors for the Asia Cup hockey tourney in Kuantan, for which it reportedly provided RM500,000.

CEO: AirAsia keen to fly to US destinations
Saturday June 27, 2009
By LEONG HUNG YEE

http://biz.thestar.com.my/archives/2009/6/27/business/b_09tony.jpg

Datuk Tony Fernandes (left) and Mark Davis at the
briefing to announce AirAsia's sponsorship of the Raiders team.

SEPANG: AirAsia Bhd, which has just signed a sponsorship deal with National Football League’s (NFL) Oakland Raiders, is keen to fly to US destinations.

Group chief executive officer Datuk Tony Fernandes said the budget airline would fly to North America once it sorted out the legal issues and obtained clearance from the respective countries. However, he did not give a timeline.

“It (the United States) is a market that we’re very keen on,” Fernandes told a press conference to announce its sponsorship of the Raiders yesterday.

AirAsia also unveiled the Raiders’ aircraft livery. Also present at the event were Raiders owner Mark Davis and legends Ted Hendricks, Rod Martin and Cliff Branch. The team’s official cheerleaders Raiderettes were also present.

Its associate long-haul, low-cost carrier AirAsia X (http://www.skyscrapercity.com/showthread.php?t=706394&page=24)currently flies to several destinations in the region, Europe and Australia.

AirAsia X chief executive officer Azran Osman-Rani said the carrier was very “keen to secure rights” to the United States.

“The aircraft donned with the Oakland Raiders brand symbolises our ambition to open up the US market as our future growth area.

“We’ll be flying this aircraft into Oakland at the start of this coming NFL season,” Azran said.

Fernandes said the airline was looking at New York City, Los Angeles and San Francisco, and one day it would like to go to Hawaii.

“America is a new chapter for us. We’re reaching out to a new market. The partnership with Oakland Raiders is expected to be the catalyst in promoting the AirAsia brand in the United States,” he said.

He added that the partnership was part of its strategy to develop AirAsia into a global brand.

To a question, Azran said it had been discussing with the NFL team for about six months before the deal was concluded.

However, he declined to reveal the cost of the partnership but said it was a “long-term” plan.

“By promoting Malaysia in North America, we hope to bring more travellers from that part of the world to Malaysia, which will help boost tourism and the local economy,” Azran said.

On criticism that AirAsia only sponsored overseas sports team, Fernandes said it was among the top four local corporates to sponsor local sports teams.

“We have just sponsored the Malaysian Hockey Federation by being the title sponsor and the Women’s World Table Tennis Championships 2008,” he said.

In a separate press conference, AirAsia chairman Datuk Abdul Aziz Abu Bakar said it had been making monthly payments to Malaysia Airports Holdings Bhd (MAHB).

“However, there is a portion outstanding, pending decision on AirAsia’s requests for MAHB to review its charging mechanism,” he said.

Abdul Aziz said some Members of Parliament who brought up the issue had misconstrued that AirAsia had not paid MAHB since 2002.

“We have been paying MAHB on a monthly basis. For the first five months of this year, we’ve paid over RM40mil. AirAsia has, since 2003, paid MAHB a total of RM404mil. In 2008, we paid RM117mil.”

Abdul Aziz said AirAsia had been overcharged by about RM100mil by MAHB.

“Since moving to the low-cost carrier terminal in March 2006, AirAsia had been overcharged by no less than RM12mil.

“There are also growth incentives on the increase in the number of passenger throughput and landings worth no less than RM90mil, for which both parties have been in discussion but yet to reach a conclusion,” he said.

The issue was not about AirAsia not making payments to MAHB, Abdul Aziz stressed, adding that he welcomed the Prime Minister’s announcement on the appointment of a consultant to resolve this and other outstanding issues between the two parties.

Source: http://biz.thestar.com.my/news/story.asp?file=/2009/6/27/business/4207026&sec=business

AirAsia to sponsor NFL Oakland Raiders
By Presenna Nambiar
Published: 2009/06/27

AirAsia (5099) will sponsor National Football League (NFL) Oakland Raiders for "multiple years" in a move to boost its brand recognition in America.

While the scope of the sponsorship has not been fully finalised, AirAsia has marked the start of the sponsorship by painting one its Airbus A340s, plying the Kuala Lumpur-London route, with the Oakland Raiders livery.

"This is not about flying to America, its really about the millions of Americans who travel through Southeast Asia, and we want them to remember the AirAsia brand," AirAsia chief executive officer Datuk Seri Tony Fernandes said in Sepang yesterday.

He attributed AirAsia X's success in filling up flights from London, for example, to its sponsorship of Manchester United. In 2005, AirAsia signed a deal to be the football club's official low-cost carrier.

AirAsia X chief executive officer Azran Osman-Rani said the trans-continental aircraft painted in Oakland Raiders livery, signifies the airline's ambition to open up the North American market as its future growth area. American destinations on the radar include New York, Los Angeles, San Francisco and Hawaii.
On a recent report which criticised AirAsia for sponsoring the American team instead of a Malaysian one, Fernandes said in terms of sponsorships, the airline is one of the top supporters of Malaysian sports.

"Sponsorship is not charity. We have a responsibility to our shareholders to deliver value (for everything we do)," he said.

Meanwhile in a separate press conference, AirAsia chairman Datuk Abdul Aziz Abu Bakar clarified that the airline has been making monthly payments to Malaysia Airports Holding Bhd (MAHB).

"However, there is a disputed amount of about RM100 million which is still outstanding (which we believe we are being overcharged), pending a decision of AirAsia's requests for MAHB to review its charging mechanism," he said.

He said this in response to statements made in the Parliament recently that the company has not paid MAHB since 2002.

AT&T Williams team in Formula One
by donovan.wong
http://www.flickr.com/photos/32478016@N08/3539644027/in/photostream/

http://farm3.static.flickr.com/2443/3539662341_6023d6103c_o.jpg

http://farm3.static.flickr.com/2171/3539644027_c0435bb758_o.jpg

English Premier League - Manchester United
by becksman2
http://www.flickr.com/photos/keigo/187926395/

http://farm1.static.flickr.com/59/187926395_2e0bb4a2ba_o.jpg

1. AirAsia's market capitalisation reaches RM2.3 billion.

2. AirAsia in Malaysia now employs more than 3,800 talented minds.

3. AirAsia Group currently boasts a fleet of 78 aircraft (44 for Malaysian operations) that flies to a total of 108 domestic and international routes and operates over 500 domestic and international flights daily from 6 hubs.

4. AirAsia has carried, thus far, over 61 million guests since its first day of operation.

5. AirAsia has a firm commitment with a purchase order for 225 Airbus A320 aircraft (175 firm + 50 options), thus securing our growth pipeline up till 2014.

6. 15 million travellers surveyed by SkyTrax voted AirAsia as World's Best Low Cost Airline in 2008.


http://img301.imageshack.us/img301/599/airasia.jpg


AirAsia was Asia's 8th largest carrier in 2007/2008 period (in just 7 years since birth).

The miracle continues and we await its latest achievement to be known in coming days.

Thank You - AirAsia Management Team

http://img34.imageshack.us/img34/6513/airasiamgmt.jpg

http://farm3.static.flickr.com/2171/3539644027_c0435bb758_o.jpg



Lotsa birds. So bahaya. I guess it's Alor Setar.

AirAsia to sponsor NFL Oakland Raiders
By Presenna Nambiar
Published: 2009/06/27

AirAsia (5099) will sponsor National Football League (NFL) Oakland Raiders for "multiple years" in a move to boost its brand recognition in America.

While the scope of the sponsorship has not been fully finalised, AirAsia has marked the start of the sponsorship by painting one its Airbus A340s, plying the Kuala Lumpur-London route, with the Oakland Raiders livery.

"This is not about flying to America, its really about the millions of Americans who travel through Southeast Asia, and we want them to remember the AirAsia brand," AirAsia chief executive officer Datuk Seri Tony Fernandes said in Sepang yesterday.

He attributed AirAsia X's success in filling up flights from London, for example, to its sponsorship of Manchester United. In 2005, AirAsia signed a deal to be the football club's official low-cost carrier.

AirAsia X chief executive officer Azran Osman-Rani said the trans-continental aircraft painted in Oakland Raiders livery, signifies the airline's ambition to open up the North American market as its future growth area. American destinations on the radar include New York, Los Angeles, San Francisco and Hawaii.
On a recent report which criticised AirAsia for sponsoring the American team instead of a Malaysian one, Fernandes said in terms of sponsorships, the airline is one of the top supporters of Malaysian sports.

"Sponsorship is not charity. We have a responsibility to our shareholders to deliver value (for everything we do)," he said.

Meanwhile in a separate press conference, AirAsia chairman Datuk Abdul Aziz Abu Bakar clarified that the airline has been making monthly payments to Malaysia Airports Holding Bhd (MAHB).

"However, there is a disputed amount of about RM100 million which is still outstanding (which we believe we are being overcharged), pending a decision of AirAsia's requests for MAHB to review its charging mechanism," he said.

He said this in response to statements made in the Parliament recently that the company has not paid MAHB since 2002.

Update:



http://img197.imageshack.us/img197/6268/26062009793rd4.jpg

AirAsia X newest metal, the Airbus 340 made a pit stop a few times in KCH!

NFL Oakland Raiders

Airasia X A340 landed in KIA

http://img30.imageshack.us/img30/364/26062009784rd1.jpg

http://img194.imageshack.us/img194/5861/26062009785rd2.jpg

MAS, AirAsia win awards
Monday June 29, 2009

http://biz.thestar.com.my/archives/2009/6/29/business/b_06airlines.jpg

Mas and AirAsia aircraft

SEPANG: National carrier Malaysia Airlines (MAS) was named Airline of The Year 2008 for the third consecutive year at the Annual KLIA Award here on Saturday.

AirAsia won the Low-Cost Airline of The Year award while AirAsia Indonesia was given Foreign Airline of The Year title. For cargo category, MasKargo won Airline of The Year award while Korean Air was named Foreign Airline of The Year.

The KLIA Awards, organised by Malaysia Airports Holdings Bhd (MAHB), offers recognition to 15 different categories of airlines and service providers operating at KL International Airport.

The awards were presented by Deputy Transport Minister Datuk Robert Lau Hoi Chew. — Bernama

AirAsia plans a 20pc share placement
Published: 2009/06/29

AIRASIA Bhd, Southeast Asia’s largest low-cost airline, said it plans a placement of as much as 20 per cent of its issued share capital. - Bloomberg

AirAsia to sell new shares to raise up to US$143m
Published: Tuesday June 30, 2009 MYT 3:29:00 PM

KUALA LUMPUR: Malaysian budget carrier AirAsia plans to sell new shares to raise as much as 500 million ringgit ($143 million) as it expands amid a global downturn, Chief Executive Tony Fernandes said Tuesday.

The airline will appoint bankers soon to sell the stock, which would expand the number of its shares by a fifth, in a share placement expected in the next two months, he told reporters on the sidelines of an investment conference.

"The key is that there is a demand for it. It will put us in a good position. We will grow our market share and increase our capacity," Fernandes said.

He didn't give further details.

Airlines worldwide are reeling from the global economic slump that has choked passenger and cargo traffic.

But AirAsia is increasing its routes and buying new planes, saying it is benefiting as travelers cut costs and downgrade to budget carriers amid the global economic slump.

In the quarter through March, it has expanded capacity by 19 percent as it launched seven new routes.

Its net profit in the quarter hit a record 203.2 million ringgit ($57 million), up 26 percent from a year earlier. - AP

AirAsia eyes RM500m
By Presenna Nambiar
Published: 2009/07/01

AirAsia Bhd (5099) is looking at raising about RM500 million by placing out up to a fifth of its shares to private investors to pay off some debt, says its chief executive officer.

AirAsia's total debt stood at RM6.9 billion as at the end of March 31 2009.

"Local and foreign investors (demand) drove us (to placing out more shares). There is a huge appetite for our shares, and obviously as an airline, it is always good to have cash. Liquidity is also good in the market now and so we decided on a private placement," AirAsia Bhd chief executive officer Datuk Seri Tony Fernandes (pic) said.

He said the budget carrier has yet to hire bankers for the placement and has not decided on whether it will stagger the placement (10 per cent now and another 10 per cent later) or do an outright 20 per cent placement.

This is the second time AirAsia is placing out shares after its initial public offering in 2004.
"If there was concern on AirAsia, I think the prime minister's (Datuk Seri Najib Razak) announcement on wanting to create a level playing field has removed any doubts that equity investors may have had on AirAsia's chances. It is a great environment to raise equity," Fernandes said.

Fernandes was speaking on the sidelines of Invest Malaysia 2009 in Kuala Lumpur yesterday.

"It is what I have been asking for, for seven years. Today will really unleash the enormous potential that AirAsia can achieve and we are thrilled by the prime minister's speech," he said in response to Najib's call for more level playing field between GLCs and private firms.

Besides calling for greater competitiveness and performance from GLCs such as those in electricity and airport businesses, Najib also stated that the government will not help GLCs to the detriment of private sector competition.

Fernandes has been lamenting on the protective nature of the aviation industry in Malaysia since the setting up of AirAsia in 2002, starting with the placement of Firefly, a unit of Malaysia Airlines, in Subang, to the aeronautical charges imposed by Malaysia Airports Holdings Bhd.

He also called for regulation of monopoly industries to ensure that there is transparency in pricing and costing.

Fernandes said the key is not really to have competition within the country but to have competitive industries that can go global and create bigger opportunities.

AirAsia X’s existing investors not taking up AirAsia new shares
Written by Gan Yen Kuan
Wednesday, 01 July 2009 10:57

KUALA LUMPUR: Potential investors buying up to 20% of AirAsia Bhd under the low-cost carrier’s proposed share placement exercise will not be those who have already invested in its sister airline AirAsia X, said AirAsia group chief executive officer Datuk Seri Tony Fernandes.

“No… not the same (investors),” he told The Edge Financial Daily on the sidelines of Invest Malaysia 2009 here yesterday.

Earlier, he told reporters that AirAsia expected to raise up to RM500 million from the proposed share placement, which would be carried out in the next two months, according to a report by the Associated Press.

AirAsia announced on Monday the proposed placement of new shares but no details were given as it had yet to appoint agents to arrange the deal.

Airline business usually invites scepticism particularly in its vulnerability under the current global economic conditions.

But when Fernandes and his counterparts started AirAsia X — a low-cost, long-haul airline — they managed to rope in investors like Virgin group’s Richard Branson, Bahrain-based Manara Consortium and Japan-based Orix Corp.

OSK Research said in a report yesterday that it was not surprised with AirAsia’s proposed share placement.

It noted that the proposal would require shareholders’ approval at an EGM, apart from obtaining approval from the Securities Commission, as the proposed placement exceeded the allowable 10% of issued and paid-up share capital.

The research house has made a hypothetical assumption to assess the impact of a 20% placement on the group’s financial position. Assuming a placement price at a 10% discount to Monday’s closing price of RM1.13, AirAsia might raise some RM490 million from this exercise, it said.

“When backdated to March 31, 2009, the company’s net gearing level may improve from 3.7 times to only 2.7 times as a reduction in net debt will conversely increase shareholders funds,” OSK Research said.

“The equity stake of the company’s major shareholder Tune Air Sdn Bhd may be diluted from 30.7% to 25.6% in the event the entire placement is taken up by third party investors.

“Considering AirAsia’s aggressive aircraft purchases, we believe the exercise may only temporarily reduce the company’s gearing, but the debt level is expected to quickly build up again on the delivery of new aircraft.”

Meanwhile, HwangDBS Vickers Research said the placement would enlarge AirAsia’s share base to 2.85 billion shares, which would potentially dilute the research house’s forecast earnings per share for the company to 4.9 sen (from 5.8 sen previously) in FY09, and to 6.1 sen (from 6.7 sen) in FY10.

AirAsia celebrates inagural KL-Taipei flight
Published: 2009/07/01

AIRASIA'S first flight from Kuala Lumpur to Taipei departed at 10am this morning, carrying 338 guests.

AirAsia's Group Chief Executive Officer, Datuk Seri Tony Fernandes said the flight had 88 per cent load, carrying guests which included president of the Malaysian Friendship and Trade Centre in Taipei, Datuk Abdullah Mohd Salleh and AirAsia X CEO, Azran Osman-Rani.

AirAsia also celebrated its inaugural flight from Tapei today with touched down at 8.35pm at the Low Cost Carrier Terminal (LCCT) of the KL International Airport (KLIA) with 335 guests on board.

"The new Kuala Lumpur-Taipei route with five direct flights weekly operated by AirAsia's low-cost long-haul affiliate,
AirAsia X, received a remarkable response from travellers when it opened for sale on April 24, 2009," Fernandes said at the Kuala Lumpur-Taipei inaugural flight celebration to receive AirAsia's first guests from Taipei.

Minister of Transport, Datuk Seri Ong Tee Keat and Minister of Tourism, Datuk Seri Dr Ng Yen Yen were also at the event to welcome the visitors.

According to Fernandes, all promotional seats for the Kuala Lumpur-Taipei flight services offered at RM101 per way were snapped up within 12 hours after the sales announcement, with an estimated 80,000 guests flying the route until the year's end.

"This represents an average load factor of over 80 per cent on the 383-seater Airbus A330," Fernandes said.

Fernandes also said there were no cancellation of flights with the H1N1 flu global epidemic and that sales were up since it abolished its administration fees.

"We are also starting new routes from Miri to Singapore," he said. - Bernama

RM251 IS the tax, flight is free... BUT take note:
http://i179.photobucket.com/albums/w285/blizzardtweaker/aax.jpg
D7 has squeezed a extra seat into the normally 2-4-2 configured A330 to make it 3-3-3, so expect it to be a REALLY small and extremely uncomfortable seat... Most pax will just book thinking the seats are regular sized as the popular 777s on mainstream airlines use 3-3-3 configuration...
They have also decreased the number of XL seats to just 4 rows and added an extra seat in each row (normally 2-2-2, now 2-3-2), so thats 'premuim economy' at best.
This means that the 'main door' now has a row of seats (row 15 is where the current a330 exit is for econ pax) and everyone will have to enter through the XL exit at the very front of the plane.
compare this to the original leased a330 with a normal configuration...
http://i179.photobucket.com/albums/w285/blizzardtweaker/aax-old.jpg

In the picture, 15C is labelled as a seat with extra leg room. Is that correct? How come theres sit infront of it and it is place like any other sit?

AirAsia Celebrates Its Inaugural Kuala Lumpur-Taipei Flight


SEPANG, July 1 (Bernama) -- AirAsia's first flight from Kuala Lumpur to Taipei departed at 10.00 am this morning, carrying 338 guests.

AirAsia's Group Chief Executive Officer, Datuk Seri Tony Fernandes said the flight had 88 percent load, carrying guests which included president of the Malaysian Friendship and Trade Centre in Taipei, Datuk Abdullah Mohd Salleh and AirAsia X CEO, Azran Osman-Rani.

AirAsia also celebrated its inaugural flight from Tapei Wednesday with touched down at 8.35 pm at the Low Cost Carrier Terminal (LCCT) of the KL International Airport (KLIA) with 335 guests on board.

"The new Kuala Lumpur-Taipei route with five direct flights weekly operated by AirAsia's low-cost long-haul affiliate, AirAsia X, received a remarkable response from travellers when it opened for sale on April 24, 2009," Fernandes said at the Kuala Lumpur-Taipei inaugural flight celebration to receive AirAsia's first guests from Taipei.

Minister of Transport, Datuk Seri Ong Tee Keat and Minister of Tourism, Datuk Seri Dr Ng Yen Yen were also at the event to welcome the visitors.

According to Fernandes, all promotional seats for the Kuala Lumpur-Taipei flight services offered at RM101 per way were snapped up within 12 hours after the sales announcement, with an estimated 80,000 guests flying the route until the year's end.

"This represents an average load factor of over 80 percent on the 383-seater Airbus A330," Fernandes said.

Fernandes also said there were no cancellation of flights with the H1N1 flu global epidemic and that sales were up since it abolished its administration fees.

"We are also starting new routes from Miri to Singapore," he said. -- BERNAMA

In the picture, 15C is labelled as a seat with extra leg room. Is that correct? How come theres sit infront of it and it is place like any other sit?

do you mean the PER-KUL configuration?
15C is an emergency exit row seat and has a wider separation in front from row 14 allowing more legroom. It is not obvious from the diagram

AirAsia to fly from KK to Brunei from September 9
Published: 2009/07/03

BUDGET carrier AirAsia Bhd (5099) will begin flying between Kota Kinabalu and Brunei from September 9 2009.

The new service will be the carrier's sixth international service from Kota Kinabalu and second international service from Brunei.

In a statement issued yesterday, AirAsia said it will be offering all-in-fare from RM29 one way, available only online via www.airasia.com

The daily flight from Kota Kinabalu and Brunei, opens for sale for the booking period from July 3 to 12 2009 for the travel period from September 9 to April 30 2010.
Kota Kinabalu is AirAsia's second and biggest hub after Kuala Lumpur, serving nine domestic routes that include Penang, Johor Baru, Kuala Lumpur, Kuching, Sibu, Miri, Labuan, Tawau, Sandakan, while the international sectors are Macau, Shenzhen, Clark, Jakarta and Singapore.

Airasia Chief Denies Newcastle Purchase
July 04, 2009 23:03 PM

KUALA LUMPUR, July 4 (Bernama) -- AirAsia chief executive officer Datuk Seri Tony Fernandes has denied that the low-cost airline (LCC) is keen on buying English football club, Newcastle United.

Contacted by Bernama on the matter, Tony Fernandes said: "We are not either directly or indirectly part of the said Malaysian-led consortium intending to purchase Newcastle United. We deny any involvement whatsoever."

A report published today in a Malay daily, Harian Metro, said AirAsia had confirmed that it was in discussions to become the biggest shareholder of Newcastle United.

The daily had quoted an unnamed source within the airline as claiming Tony had an interest to buy a British soccer club.

The British media Friday reported that a Malaysian consortium led by several well-known businessmen had put in a 80m (RM456 million) bid to take control of Newcastle or 'The Magpies' from its owner Mike Ashley but they were bound by non-disclosure agreements.

-- BERNAMA

AirAsia eyes more destinations in Asia Pacific, Middle East
2009/07/04
KUALA LUMPUR, SAT:

AirAsia Bhd, the low cost carrier which services an extensive network with 122 routes covering more than 65 destinations, is seeking to serve more major and small cities in Asia-Pacific and the Middle East.

Through its corporate philosophy of ''Now Everyone Can Fly'', the leading low cost airline in Asia says it is committed to serve three billion people who are "currently underserved with poor connectivity and high fares".

"We will go anywhere over four-hour destinations for our AirAsia X and below four-hour destinations for AirAsia," said AirAsia chairman Datuk Aziz Bakar in an interview with Bernama.

AirAsia X is the low cost long-haul affiliate carrier of AirAsia that currently flies to destinations in China, Australia and the UK.

The carrier is planning to add two to three new routes before end of this year in China such as Xi'an and Chongqing, and four new routes in India comprising Bangalore, Trivandram, Chennai and Cochin, Aziz said.
He said the airline has applied to fly into South Korea, and is also eyeing other destinations in the Middle East and Australia like Sydney.

"The time is right for us to fully take advantage of the current economic downturn and be prepared when the economy turns around.

"I think many full service airline passengers are turning to non-frill service because they tend to spend less and save more," he said.

Aziz said AirAsia was also promoting its services aggressively to stimulate demand.

"The demand is there and people will fly if they get cheap fares. Passengers only pay the ticket but when they pay for food, we have to make sure it is value for money," he said.

Aziz said AirAsia''s average load factor was about 73 to 75 percent in the last three months, while AirAsia X had been getting very strong load factor.

The London flight's average load factor was between 80 and 83 percent.

Asked on the impact of influenza A (H1N1) virus, he said the airline''s forward booking was not affected very much in the last two months but it was continuing with its aggressive marketing.

"There is H1N1, but if we are to offer 5,000 free tickets to fly to any destinations within Asia, I'm sure it would be fully taken up within three to four hours," he said.

Commenting on the new low-cost carrier terminal (LCCT), Aziz said AirAsia hoped the airport would be completed on time to accommodate its expansion plan.

"We can't just take the delivery of the new aircrafts with no place to park," he said.

AirAsia also hopes the commercial terms are agreed and accepted as soon as possible, he said.

It is understood that the new LCCT will be built by Malaysia Airports Holdings Bhd and work is expected to start this month, and scheduled for completion by the third quarter of 2011.

AirAsia intai destinasi 2 rantau
6 Julai 2009

KUALA LUMPUR 5 Julai - AirAsia Bhd., syarikat penerbangan tambang murah yang mempunyai rangkaian menyeluruh dengan 22 laluan meliputi lebih daripada 65 destinasi, kini meninjau kemungkinan memberi perkhidmatan ke lebih banyak bandar raya utama dan kecil di Asia Pasifik dan Timur Tengah.

Menerusi falsafah korporatnya Now Everyone Can Fly, syarikat tambang rendah terkemuka di Asia itu berkata, ia komited untuk memberi perkhidmatan kepada tiga bilion orang yang 'pada masa ini kurang mendapat perkhidmatan kerana saling hubung yang rendah dan tambang yang tinggi'.

"Kami akan ke mana sahaja destinasi melebihi empat jam menggunakan AirAsia X kami dan destinasi yang kurang daripada empat jam dengan AirAsia," kata Pengerusi AirAsia, Datuk Aziz Bakar dalam satu temu bual.

AirAsia X ialah syarikat sekutu tambang murah jarak jauh AirAsia yang pada masa ini mengadakan penerbangan ke destinasi seperti China, Australia dan United Kingdom (UK).

Syarikat penerbangan itu bercadang menambah dua hingga tiga lagi laluan baru di China sebelum akhir tahun ini seperti Xi'an dan Chongqing dan empat laluan baru di India iaitu Bangalore, Trivandram, Chennai dan Cochin, kata Aziz.

Beliau berkata, syarikat penerbangan itu telah memohon untuk terbang ke Korea Selatan, dan turut meninjau destinasi lain di Timur Tengah dan Australia seperti Sydney.

"Masanya amat sesuai untuk kami mengambil kesempatan sepenuhnya atas kelembapan ekonomi semasa dan bersedia apabila ekonomi pulih kembali.

"Saya rasa ramai penumpang perkhidmatan penuh beralih kepada perkhidmatan tambang murah kerana mereka mahu kurang belanja dan lebih berjimat," kata beliau.

Aziz berkata, AirAsia turut mempromosikan perkhidmatannya dengan lebih agresif bagi merangsangkan permintaan.

"Permintaan sentiasa ada dan orang ramai akan menggunakan perkhidmatan jika mereka mendapat tambang yang rendah. Penumpang hanya membayar tiket tetapi jika mereka membayar untuk makanan, kami mesti pastikan ia amat bernilai untuk wang yang dibayarkan itu," kata beliau.

Aziz berkata, purata faktor muatan AirAsia ialah kira-kira 73 hingga 75 peratus sejak tiga bulan lepas sementara AirAsia X telah mendapat faktor muatan yang amat kukuh.

Purata faktor muatan penerbangan London ialah antara 80 hingga 83 peratus.

Ditanya akan kesan virus influenza A (H1N1), beliau berkata, tempahan ke hadapan syarikat penerbangan itu tidak begitu terjejas dalam tempoh dua bulan lepas tetapi ia masih meneruskan pemasarannya dengan begitu agresif.

"Memang ada H1N1, tetapi jika kami menawarkan 5,000 tiket percuma ke mana-mana destinasi di Asia, saya pasti ia akan habis dalam tempoh tiga hingga empat jam," kata beliau.

Mengulas mengenai terminal penerbangan tambang murah (LCCT) yang baru, Aziz berkata, AirAsia berharap lapangan terbang itu akan siap pada masa yang ditetapkan bagi memenuhi rancangan pengembangannya.

"Kita tidak boleh sewenang-wenangnya menerima pesawat baru tetapi tiada tempat untuk meletak pesawat," kata beliau.

AirAsia turut berharap terma komersial dipersetujui dan diterima secepat mungkin, kata beliau.

Difahamkan yang LCCT yang baru itu akan dibina oleh Malaysia Airports Holdings Bhd. dan kerja dijangka bermula bulan ini dan dijadual selesai menjelang suku ketiga 2011. - BERNAMA

AirAsia to launch Penang-HK route
Published: 2009/07/06

AIRASIA today announced a new service from Penang to Hong Kong starting July 31 as part of the budget carrier's plan to establish Penang as its eighth hub.

According to the airline, the service is timely and will be well received by many as it has great advantage due to its extensive route network and low fares.

AirAsia is also increasing its second frequency to Singapore from Penang to cater to the demand from leisure and business travellers.

The new sector to Hong Kong and the introduction of second frequency to Singapore opens for sale for the booking period from July 7 to 12 for the travel period from July 31, 2009, to April 30, 2010.

AirAsia said in a statement today that it will be offering an all-in-fare from RM99 to Hong Kong and RM51 to Singapore to mark the launch of these sectors.

The airline, through its holiday division GoHoliday, is offering guests free rooms upon booking at its partner hotels in Hong Kong.

The promotion is valid via goholiday.airasia.com and available on a first come, first served basis.

"At a time when some airlines are cutting routes and downsizing capacity, we are breaking the trend with our aggressive expansion plans, increasing frequencies where there is proven demand, which certainly is for the Penang-Hong Kong and Penang-Singapore routes," said the airline's regional head of commercial, Kathleen Tan.

"We are also hoping to introduce new sectors to Shenzen and Guangzhou from Penang in the future," she said.

Tan said the Hong Kong route formed part of AirAsia's strategy to establish Kuala Lumpur as a gateway to other Asian destinations.

The airline's relationship with its long-haul affiliate AsiaAsia X will also connect traffic from Australia and the United Kingdom to the Chinese cities, she said. - Bernama

AirAsia: 20pc stake may go to single fund
Published: 2009/07/07

AIRASIA Bhd (5099), the Southeast Asian airline planning to issue 20 per cent more shares, said it's considering selling the entire stake to a single institutional fund or a strategic investor as part of a plan to reduce debt.

"Some funds have come to us and want to take the whole 20 per cent," chief executive officer Datuk Seri Tony Fernandes said in an interview by phone yesterday. "We may do a placement to a strategic investor or a fund."

AirAsia said in May it planned to raise about RM500 million in the Malaysian company's biggest share sale since listing in 2004.

The airline is seeking funds to cut its ratio of debt to equity, a measure also known as gearing. - Bloomberg

AirAsia up on plan to sell shares to one fund
Published: 2009/07/07





AirAsia Bhd, Southeast Asia’s largest low-cost airline, rose for the first time in three days in Kuala Lumpur trading after saying it may sell all of a planned new share issue to a single investor.

The stock added 1.8 per cent to RM1.12 at 9:04am.

AirAsia, which is planning to issue as much as 20 per cent more stock, is considering selling the stake to a single institutional fund or a strategic investor as part of a plan to reduce debt, chief executive officer Datuk Seri Tony Fernandes said in an interview late yesterday.

A strategic investor might be a private equity firm or a partner in the tourism industry, said Fernandes. He said he plans to meet potential buyers this month and the share sale should be completed in early August. -- Bloomberg

AirAsia seeks shareholders’ approval


PETALING JAYA: AirAsia Bhd is seeking shareholders’ approval and ratification for the provision of financial assistance to its Indonesian and Thai subsidiaries.

It told Bursa Malaysia yesterday that the ratification was for the provision of RM355mil and RM248mil to PT Indonesia AirAsia (IAA) and Thai AirAsia Co Ltd (TAA) respectively.

Both companies are 49% owned by AirAsia.

As at Dec 31, 2008, IAA and TAA owed RM974mil and RM457mil to AirAsia respectively, while the amount owed by AirAsia to IAA and TAA was RM619mil and RM209mil respectively.

AirAsia also said it was proposing to enter into financial assistance agreements with IAA and TAA to formalise the provision of financial assistance to IAA and TAA, as provided by the total net amount owing to AirAsia.

AirAsia up on plan to sell shares to one fund
Published: 2009/07/07





AirAsia Bhd, Southeast Asia’s largest low-cost airline, rose for the first time in three days in Kuala Lumpur trading after saying it may sell all of a planned new share issue to a single investor.

The stock added 1.8 per cent to RM1.12 at 9:04am.

AirAsia, which is planning to issue as much as 20 per cent more stock, is considering selling the stake to a single institutional fund or a strategic investor as part of a plan to reduce debt, chief executive officer Datuk Seri Tony Fernandes said in an interview late yesterday.

A strategic investor might be a private equity firm or a partner in the tourism industry, said Fernandes. He said he plans to meet potential buyers this month and the share sale should be completed in early August. -- Bloomberg

AirAsia to turn Penang into fourth hub in Malaysia
By Jeeva Arulampalam
Published: 2009/07/08

Penang is suitable as a hub because it is a tourist destination and a fast-growing industrial and trading centre, says AirAsia

BUDGET carrier AirAsia plans to turn Penang into its fourth hub in Malaysia as it continues to expand its network and add more destinations from the island.

AirAsia Bhd (5099) regional head of commercial Kathleen Tan said AirAsia will start flying from Penang to Hong Kong four times a week starting July 31, with one-way fares as low as RM99.

The airline will also be adding a second daily flight between Penang and Singapore due to popular demand. Its existing load factor for this route is above 90 per cent.

"Penang is suitable as a hub because it is a tourist destination and a fast-growing industrial and trading centre," Tan told Business Times in a phone interview yesterday.
She said Penang had previously been a virtual hub for AirAsia as it did not park planes at the Penang International Airport.

But the airline will start parking one plane at the airport as of July 31, as it starts flying to Hong Kong and adds its second daily frequency to Singapore.

"We are looking at a second plane next year as we continue to build Penang as a hub. There is heavy investment in terms of human capital and equipment in building a hub," said Tan but was unable to provide a quantum.

AirAsia has eight hubs in total now, including Kuala Lumpur, Johor Baru, Kota Kinabalu, Bandung, Bali, Jakarta, Bangkok and a "virtual hub" in Singapore.

"What we need right now is a good low-cost carrier terminal (LCCT) in Penang, as we can easily have up to 10 planes there. By comparison, we have six planes in Kota Kinabalu," she said.

Tan added that a LCCT in Penang will allow for lower passenger airport taxes, as passengers departing from Penang International Airport currently pay RM51 in airport taxes.

"In comparison, our passengers departing from KL (LCCT) and Kota Kinabalu (LCCT) only pay RM25," she said.

AirAsia will also look to add more international destinations from Penang next year, including Chennai and Bali. International flights from Penang now are to Singapore, Bangkok, Medan, Jakarta and Macau.

Tan added that concerns surrounding the influenza A (H1N1) virus was unlikely to dampen travel to Hong Kong, as many passengers wanted to capitalise on cheap fares.

"This seems to be the best time to travel due to good deals, more so for the youth market which is not worried about the recession or the flu," she said.

Tickets for the new flights to Hong Kong and Singapore are open for sale until July 12, for the travel period from July 31 to April 30 2010. The all-in fare of RM99 to Hong Kong and RM51 to Singapore is exclusively made available online at www.airasia.com.

AirAsia aims to park 10 planes in Penang to start new hub
By DAVID TAN


This is in line with plans to make island its eighth hub

GEORGE TOWN: AirAsia Bhd’s plan to park more planes at the Penang International Airport can materialise faster if Penang has a low-cost carrier terminal.

Regional head of commercial Kathleen Tan said the budget airline operator had plans to park 10 planes in Penang, which was in line with its goal of making the island its eighth hub.

AirAsia has hubs in Kuala Lumpur, Johor Baru, Kota Kinabalu, Bandung, Bali, Jakarta and Bangkok; and a “virtual hub” in Singapore.

“This is our long-term plan to enhance the attraction of Penang as a hub. Presently the cost of operation in Penang is very high. If Penang had a low-cost carrier terminal, it would reduce our operation cost, and attract more travellers to fly from Penang,” she said in a telephone interview from Kuala Lumpur.

http://biz.thestar.com.my/archives/2009/7/8/business/p4-airasiaplane.JPG
File pic of AirAsia aircraft at Kuala Lumpur International Airport's low cost carrier terminal in Sepang. Malaysian budget carrier is to park 10 planes in Penang and make Penang its 8th hub. - APpic

Tan said presently the Penang airport imposed higher international and domestic taxes, at RM51 and RM9 compared with RM25 and RM6 respectively charged at the Low-Cost Carrier Terminal in Kuala Lumpur.

She said from July 31, AirAsia would station one plane in Penang for the four weekly flights to Hong Kong. The round trip fare is about RM200.

“We are engaging a support team comprising pilots, engineers and technicians to be based at the Penang airport,” she said, adding that AirAsia was also adding a second flight to Singapore from Penang starting July 31.

AirAsia may have to write off money owed by associates
Write offWritten by Financial Daily
Wednesday, 08 July 2009 10:38

http://www.theedgemalaysia.com/images/stories/FinancialDaily/08072009/airasia.jpg

AIRASIA Bhd may have to write off some of the amounts owed by its associates, Thai AirAsia and Indonesia AirAsia, or inject more cash investments into them if they continue to make losses and require more funding, according to Maybank Investment Bank (Maybank IB).

“AirAsia may have to write off some of the owed amounts totalling RM603 million at end-4Q08 and RM752 million at end-1Q09, and/or inject more cash investments into its associates.

“This could result in losses at the group level post-injection of new funds into its associates, and require more than a 20% private placement at AirAsia level to right-size its balance sheet,” the research house said in a report yesterday.

AirAsia will propose to raise the continued assistance to 49%-owned Thai AirAsia and Indonesia AirAsia from 5% each of AirAsia’s latest audited net tangible asset (NTA), to 10% each at an upcoming EGM.

AirAsia reported on Monday that net financial assistance rendered to Thai AirAsia and Indonesia AirAsia were RM248 million and RM355 million, respectively, or 15.5% and 22.2% of its audited NTA as at FY08.

Maybank IB, which maintained a sell on AirAsia, said it was not surprised at the announcement, as it was “one of several overhanging concerns on AirAsia”, and that its share price did not fully reflect these concerns.

The research house has ascribed a target price of RM1 to the low-cost carrier, based on 0.9 times 2010 price-to-book value.

“In the worst-case scenario, if the amounts due to AirAsia from its associates are fully written off, the NTA of AirAsia will lower by about 30%, implying a similar potential writedown to our target price,” it said.

In the aviation sector, its pick is Malaysia Airports Holdings Bhd with a buy call and target price of RM4, for leverage on the air travel market’s potential recovery in 2010.

Meanwhile, AmResearch has upgraded AirAsia to buy from sell to reflect “easing balance sheet concerns”, stronger-than-expected 1Q09 performance and share price retracement, which has discounted a potential share dilution risk from AirAsia’s proposed private placement.

It said AirAsia’s proposed placement of new shares had addressed its key concern on AirAsia’s highly leveraged balance sheet previously.

“Cash to be raised from the exercise — circa RM500 million — is expected to bring net gearing down to much more manageable levels — from four times down to just 3.1 times in FY10. Interest cover is estimated to rise to two times from 1.9 times pre-placement,” it said.

AmResearch has revised upwards its FY09 net profit projection for AirAsia by 153% to RM410 million, and FY10 forecast by 167% to RM493 million to reflect, in anticipation of higher ancillary income, a more moderate yield contraction of 10% versus a previous assumption of 13% contraction for FY09.

Following an upward revision to projections, the research house has revised upwards its fair value for AirAsia to RM1.45 per share from RM1.04 per share previously.

“Our valuation is pegged at 40% discount to AirAsia’s historical average PE (price-earnings) of 14 times against FY10 diluted earnings, to reflect AirAsia’s volatile cost structure (as it is unhedged at the moment) as well as still uncertain recovery of the broader airline industry,” it said.

“At implied valuation of just 6.4 times FY10 fully diluted earnings, we think the market has sufficiently priced in earnings dilution risk ahead of AirAsia’s proposed private placement over the next two months.

“AirAsia currently trades at a huge 54% discount to historical average PE of 14 times against expanding ROE (return on equity) of 16% in FY10,” it added.

AirAsia closed at RM1.14 yesterday, up four sen.

Mungkinkah AirAsia, Asia X bergabung?

HONG KONG 7 Julai - Keputusan untuk menggabungkan syarikat penerbangan murah AirAsia dengan AirAsia X masih belum diputuskan biarpun peneraju utamanya mengharapkan perkara itu dapat dilaksanakan.

Menurut Ketua Pegawai Eksekutif AirAsia Bhd. (AirAsia) Tony Fernandes: ''Secara peribadi AirAsia X dan AirAsia sepatutnya disatukan,''

''Kedua-duanya amat rapat dan jika saya menguasai syarikat itu seratus peratus, saya akan membelinya,'' kata beliau selepas berucap pada majlis makan tengah hari di Hong Kong.

Fernandes yang merupakan pengasas kedua-dua syarikat penerbangan tambang murah itu, berkata, AirAsia X telah dilancarkan sebagai syarikat yang berasingan pada 2007 kerana model perniagaan jarak jauh merupakan model perniagaan spekulatif yang perlu dibuktikan kejayaannya.

''Bagaimanapun kini, saya berpendapat kami telah membuktikannya. Ia sangat menguntungkan, tunainya sangat positif. Model ini berjaya,'' kata Fernandes

Fernandes percaya AirAsia X akan meningkatkan pendapatan AirAsia jika kedua-dua syarikat penerbangan itu bergabung tetapi menambah keputusan itu bergantung kepada lembaga pengarah AirAsia. Beliau enggan memberi sebarang jangka masa.

Fernandes berada di Hong Kong bagi menghadiri pelancaran penerbangan AirAsia antara Pulau Pinang dengan bandar raya ini.

Minggu lalu, Fernandes berkata, AirAsia X mungkin melancarkan tawaran awam permulaan (IPO) dalam tempoh setahun hingga dua tahun atau pun bergabung dengan AirAsia.

AirAsia dan Virgin Group masing-masing menguasai 20 peratus kepentingan dalam AirAsia X yang memulakan operasi pada November 2007 dan terbang ke Australia, China dan London dari pusat operasi di Kuala Lumpur.

Fernandes berkata, penerbangan ke London mencatatkan faktor muatan sebanyak 84 peratus.

Bagaimanapun, beliau memberitahu, AirAsia X tidak merancang melancarkan perkhidmatan udara ke London sehinggalah ia menerima pesawat Airbus, A350 dalam tempoh empat hingga lima tahun lagi - Dow Jones

AirAsia refutes reports it is writing-off dues from two units
By B.K. SIDHU


PETALING JAYA: There will be no write-offs on the amount owed by Thai AirAsia (TAA) and Indonesia AirAsia (IAA) to parent AirAsia Bhd, said AirAsia group chief executive officer Datuk Seri Tony Fernandes.

This is in contrast to what some analysts are saying in their reports, which have suggested a possible write-off of RM603mil, of which RM248mil is from TAA and RM355mil from IAA.

As at Dec 31, 2008, IAA and TAA owed RM974mil and RM457mil to AirAsia respectively, while the amount owed by AirAsia to IAA and TAA was RM619mil and RM209mil respectively. Net borrowings due to AirAsia are RM603mil.

“A draft agreement is being prepared to ratify and seek approval from AirAsia shareholders at an EGM to be called on Aug 3 for the past and continuing financial assistance to the two units,’’ Fernandes told StarBiz.

This is necessary since the amount owed by the two 49%-owned associates exceeds the 5% threshold of AirAsia’s shareholders’ funds which stand at RM1.81bil.

TAA and IAA have paid-up capitals of 400 million baht and 180 billion rupiah respectively.

AirAsia has been funding the two associates since they began operations and the unwinding of fuel hedgings has had an impact, thus raising the level of their borrowings.

AirAsia, unlike many other airlines, decided to end its hedges when fuel price headed south.

Fernandes said the two units were now cash-flow positive and that they had been paying back some of their dues, but noted that it would take two to three years for them to fully pay their dues to AirAsia.

Things are looking much better since the group embarked on a change in the aircraft type and expanded routes.

“If anything, the losses in the recent past were also small and incurred due to geopolitical and market conditions,’’ Fernandes said.

“Our Indonesian operations are enjoying brisk sales as IAA is now flying to more international routes, especially to Singapore and Australia. Our Bali hub is also performing way above expectations. We are very bullish on both the countries and Indonesia is turning out to be politically stable.’’

The change in aircraft type was from B737 to A320, which is more fuel efficient.

“It is a turnaround story and by 2010, all the B737 aircraft will be replaced with the A320 and we will have phenomenal cashflow and benefit from this move,’’ Fernandes said.

Thai AirAsia has 14 aircraft (nine A320s and five B737s) while Indonesia AirAsia has 11 (seven A320s and four B737s). All these aircraft are leased from AirAsia.

“This year, TAA will get four more new A320s and IAA seven more and that allows them to expand further,’’ Fernandes said.

Part of the dues from the associates to AirAsia is from the cost of leasing the aircraft for their respective operations.

AirAsia eyes RM30m revenue from new courier service
Written by Gan Yen Kuan
Thursday, 09 July 2009 16:24

KUALA LUMPUR: The European Union (EU), under its executive arm the European Commission, has awarded almost 10,000 grants to be funded by the Erasmus Mundus programme for the academic year 2009-2010.

The grants were awarded to 8,385 students and academics from around the world who will study or teach in Europe, and 1,561 Europeans who will spend periods at partner institutions in countries outside Europe.

The Erasmus programme was first introduced in July 2001 with the aim of strengthening the cooperation between EU and non-EU countries in the area of higher education.

"Erasmus Mundus is going from strength to strength in the years since 2004," said Ján Figel’, the European Commissioner for Education, Training, Culture and Youth in a statement yesterday. On the Malaysian front, Vincent Piket, ambassador and head of delegation of the European Commission to Malaysia, said the programme contributed in terms of academics and cultural exposure.

This year, 19 Malaysians have received scholarships under the Erasmus Mundus programme. They will leave for Europe in August to pursue the masters course of their choice. To date, over 100 Malaysians have benefited from the Erasmus Mundus masters programme.

Under the Erasmus programme, the EU is also partnering with a number of universities, including Universiti Sains Malaysia which has recently been selected as a beneficiary of the programme.

In total, 1,833 students from 105 countries will receive scholarships to study in the masters programme and 489 academics from 75 countries with outstanding academic track records will travel to Europe for shorter periods to teach, research or tutor within one of the masters courses.

Under the Erasmus programme, the EU is also partnering with a number of European and non-European universities, including Universiti Sains Malaysia which has recently been selected as a beneficiary of the Erasmus Mundus Programme.

AirAsia targets RM30m revenue from Redbox
Published: 2009/07/09

AIRASIA Bhd is aiming for RM30 million in revenue next year from its new service called Redbox, billed as the world's first low-cost courier service.

Chief executive officer Datuk Seri Tony Fernandes, in stating this, said Redbox was targeted at all market segments, especially small and medium enterprises, and it offered up to 50 per cent savings in shipment costs.

"This service will provide support to customers and local businesses in the central region and East Malaysia," he told reporters after the Redbox launch in Kuala Lumpur today.

The service is now available between the central region covering Kuala Lumpur, Selangor and selected parts of Negeri Sembilan as well as in the East Malaysian cities of Kuching, Miri, Sibu, Kota Kinabalu, Labuan and Sandakan.

Fernandes said that AirAsia would like to grow the existing courier market, which is estimated to be worth about RM500 million currently.

AirAsia X chief executive officer Azran Osman Rani said the new service will be expanded to more AirAsia and AirAsia X destinations early next year.

Customer can log on to the http://redbox.airasia.com or www.airasia.com websites to use Redbox at between RM27 and RM193, Azran said.

Individual customers can drop off their packages at any of the Mail Boxes Etc (MBE) outlets in the central region and the six East Malaysian cities, he said.

MBE is the world's largest franchise network of retail shipping, postal, document convenience and value-added business services.
Asked about the possibility of a merger between AirAsia with AirAsia X, Azran said: "That is the question for the AirAsia's board to decide. It is not my decision."

There have been reports in media recently saying that both companies will merge within one or two years.

The Redbox service marked the first partnership between AirAsia and AirAsia X so far, he said.

In another development, Azran said that AirAsia X planned to introduce new routes in the Middle East in the near future.

The proposed routes are Sharjah and Abu Dhabi in the United Arab Emirates. - Bernama

AirAsia targets RM30m revenue from Redbox
Published: 2009/07/09

Customer can log on to the http://redbox.airasia.com or www.airasia.com websites to use Redbox at between RM27 and RM193, Azran said.

:cheers1:

Ministry open to proposals on KL-New York route
Published: 2009/07/10

THE Transport Ministry is ready to consider proposals from airlines like AirAsia to serve the Kuala Lumpur-Stockholm-New York route, which Malaysia Airlines (MAS) will cease to operate from October.

In a statement to Bernama yesterday, Deputy Transport Minister Datuk Abdul Rahim Bakri said that the offer was subject to agreement from all relevant authorities.

Currently, AirAsia unit, AirAsia X, offers long-haul flights to London, Melbourne, Perth and Taipei.

On Monday, MAS announced that it will stop its flights to Stockholm and New York, but will retain its offices in the two cities and offer its services to customers through code-share partner KLM, which flies to Stockholm via Amsterdam.

On another note, Abdul Rahim said the global economic slowdown was among the reasons for MAS' weaker first quarter performance.

"For the first quarter, MAS is reported to have registered losses amounting to RM698 million.

"The number of passengers using MAS services in the January-April period went down 11 per cent compared to the same period last year," he said.

He noted, however, that it was a trend experienced by a majority of airlines amid the current challenges.

MAS has taken various measures to boost sales, including online offers and aggressive media promotions. - Bernama

Fernandes keen to see group's airlines merge
Published: 2009/07/10

AIRASIA Bhd (5099)group chief executive officer Datuk Seri Tony Fernandes is keen to merge the low-cost carrier with its long-haul sister airline, AirAsia X.

"We established AirAsia X separately initially because we were starting a long-haul budget carrier. But now that it has proven to be success, it seems like a good idea to merge both airlines," he said.

When asked if the idea was being discussed at board level, Fernandes said "No".

"I just think it's a good idea. But something like this will require the shareholders' approval," he said.

AirAsia launches low-cost courier
By Jeeva Arulampalam
Published: 2009/07/10

http://www.btimes.com.my/articles/jaa9-2/pix_topright

The budget airline wants to capture a slice of the courier services market in Malaysia, estimated to be worth RM500 million

BUDGET carrier AirAsia Bhd (5099)is expecting its courier service to generate RM30 million revenue next year as it continues to roll out initiatives to boost ancillary income.

Group chief executive officer Datuk Seri Tony Fernandes said the airline wants to capture a slice of the courier services market in the country, which is estimated to be worth RM500 million.

"With our network, we are also looking to provide courier services to places that are hard to get to," he told reporters after launching Redbox, the world's first low-cost courier, in Kuala Lumpur yesterday.

Fernandes said that 11 per cent of the aircraft belly space is used for cargo currently, but there is capacity for growth.
Investment will be minimal as AirAsia is using existing infrastructure like online transactions to provide the courier service.

Redbox, touted to provide 50 per cent savings in shipment costs, is a collaboration between the AirAsia group, Mail Boxes Etc. and DMSBT Group.

Customers can drop off their packages at any of the Mail Boxes outlets in Kuala Lumpur and Selangor and selected parts of Negri Sembilan, Kuching, Miri, Sibu, Kota Kinabalu, Labuan and Sandakan.

"We serve as the brick-and-mortar location for Redbox," Mail Boxes managing director Brian Chow said.

Boxes come in 10 sizes and weight breaks are between 5kg and 25kg, with weight options going up in increments of 1kg. The courier service is priced between RM47 and RM193.

AirAsia X chief executive officer Azran Osman-rani said that the courier service will be made available to all destinations served by AirAsia and AirAsia X by early next year.

"There is no-equity relationship. Redbox is a business partnership as Mail Boxes is the drop-off point, DHL will serve as the transport between the outlets and the airport, while AirAsia provides the air travel," said Azran, who is spearheading the project.

Meanwhile, Fernandes said the proposed issue of 20 per cent more shares, either to an institutional fund or a strategic investor, was progressing well.

"We will let you know in due course," he said when pressed on the status of the issue.

He also dismissed any possibility of AirAsia or himself looking to purchase football club Newcastle United.

Ministry open to proposals on KL-New York route
Published: 2009/07/10

THE Transport Ministry is ready to consider proposals from airlines like AirAsia to serve the Kuala Lumpur-Stockholm-New York route, which Malaysia Airlines (MAS) will cease to operate from October.

In a statement to Bernama yesterday, Deputy Transport Minister Datuk Abdul Rahim Bakri said that the offer was subject to agreement from all relevant authorities.

Currently, AirAsia unit, AirAsia X, offers long-haul flights to London, Melbourne, Perth and Taipei.

On Monday, MAS announced that it will stop its flights to Stockholm and New York, but will retain its offices in the two cities and offer its services to customers through code-share partner KLM, which flies to Stockholm via Amsterdam.

On another note, Abdul Rahim said the global economic slowdown was among the reasons for MAS' weaker first quarter performance.

"For the first quarter, MAS is reported to have registered losses amounting to RM698 million.

"The number of passengers using MAS services in the January-April period went down 11 per cent compared to the same period last year," he said.

He noted, however, that it was a trend experienced by a majority of airlines amid the current challenges.

MAS has taken various measures to boost sales, including online offers and aggressive media promotions. - Bernama

haha...mas buang bzness...air asia plak buat bzness....air asia shud thx mas 4 dis hehe!!!

Govt will consider plans for NY route by AirAsia, others


KUALA LUMPUR: The Transport Ministry is ready to consider proposals from airlines like AirAsia to serve the Kuala Lumpur-Stockholm-New York route that Malaysia Airlines (MAS) will cease to operate effective this October.

In a statement to Bernama, Deputy Transport Minister Datuk Abdul Rahim Bakri said the offer was, however, subject to agreement from all the relevant authorities.

Currently, AirAsia unit AirAsia X offers long-haul flights to London, Melbourne, Perth and Taipei.

On Monday, MAS announced it will stop its flights to Stockholm and New York but will retain its offices in the two cities and offer its services via its code-sharing partner, KLM, which flies to Stockholm via Amsterdam.

On another note, Abdul Rahim said the global economic slowdown was among the reasons for the significant drop in MAS’ performance in the first quarter this year.

“For the first quarter, MAS was reported to have registered losses amounting to RM698mil,’’ he said. “The number of passengers using MAS’ services during January to April this year went down by 11% compared with the same period last year.”

He added that other airlines had also reported significant drops in passenger numbers. — Bernama

Against this scenario, MAS has taken various measures to promote sales via online, as well as through better fares and promoting its services through travel agents and tourism agencies as well as aggressive media promotions. — Bernama

AirAsia X mahu tembusi pasaran Asia Barat
10 Julai 2009
Oleh SARAH NADLIN ROHIM

KUALA LUMPUR 9 Julai - Syarikat penerbangan tambang murah jarak jauh AirAsia X akan menembusi pasaran Asia Barat dalam masa terdekat ini.

Ketua Pegawai Eksekutifnya, Azran Osman Rani berkata, pihak pengurusan akan ke Asia Barat minggu depan untuk meninjau lapangan terbang yang sesuai bagi mendapatkan hak pendaratan.

''Kami mencari lapangan terbang yang mempunyai rangkaian hubungan penerbangan tambang murah yang luas, seperti mana dilaksanakan ketika hendak memperkenalkan laluan London.

''Setakat ini, kami mempunyai beberapa pilihan lokasi untuk laluan baru AirAsia X di Asia Barat seperti Sarjah dan Abu Dhabi,'' katanya selepas majlis pelancaran kurier Redbox AirAsia di sini hari ini.

Kurier Redbox menawarkan khidmat penghantaran barang dengan kadar terendah yang pertama di dunia dengan kadar RM25 sekilogram.

Hadir sama Ketua Pegawai Eksekutif Kumpulan AirAsia, Datuk Seri Tony Fernandes dan Pengarah Urusan MBE Malaysia, Brian Chow.

Redbox menawarkan perkhidmatan kurier antara Kuala Lumpur, Selangor dan beberapa bahagian di Negeri Sembilan serta Kuching, Miri, Sibu, Kota Kinabalu, Labuan dan Sandakan.

Penghantaran dilakukan antara dua hingga tiga hari bekerja yang menawarkan penjimatan sehingga 50 peratus daripada kos penghantaran.

Menurut Azran, setakat ini pilihan utama mereka adalah Emiriyah Arab Bersatu (UAE) kerana negara itu merupakan lokasi yang progresif untuk Asia Barat.

''Selain itu, AirAsia X juga berminat ke Jeddah, tetapi permohonan kami telah ditolak. Kami, bagaimanapun akan terus mencuba untuk mendapatkan hak pendaratan di situ,'' jelasnya.

Sementara itu, ketika mengulas tentang cadangan penggabungan syarikat penerbangan AirAsia Bhd. (AirAsia) dan AirAsia X, Fernandes berkata, ahli lembaga pengarah akan menentukannya.

''Tetapi ia merupakan sesuatu yang logik. Jika terdapat sebarang perkembangan kami akan umumkan,'' katanya. Baru-baru ini, Fernandes telah mengesyorkan penggabungan kedua-dua syarikat itu.

AirAsia ambil laluan MAS

KUALA LUMPUR 9 Julai - Kementerian Pengangkutan sedia menimbang sebarang cadangan daripada syarikat penerbangan seperti AirAsia yang berhasrat untuk menawarkan perkhidmatan bagi laluan Kuala Lumpur-Stockholm-New York berikutan penggantungan perkhidmatan itu oleh Malaysian Airline System Bhd. (MAS) mulai Oktober ini.

Dalam kenyataannya hari ini, Timbalan Menteri Pengangkutan Datuk Abdul Rahim Bakri berkata, perkara itu bagaimanapun tertakluk kepada persetujuan semua pihak.

Pada masa ini unit AirAsia, AirAsia X menawarkan penerbangan jarak jauh ke London, Melbourne, Perth dan Taipei.

Isnin lalu, MAS mengumum akan menggantung perkhidmatan tiga kali seminggu dari Kuala Lumpur ke New York melalui Stockholm tetapi akan mengekalkan pejabatnya di kedua-dua bandar raya itu dan menawarkan perkhidmatan ke bandar berkenaan melalui syarikat penerbangan perkongsian kod MAS, KLM.

Dalam perkembangan lain, Abdul Rahim berkata, kemerosotan ekonomi global merupakan antara punca yang menyebabkan pendapatan MAS terjejas teruk.

"Misalnya bagi suku pertama tahun ini MAS dilaporkan mengalami kerugian sebanyak RM698 juta.

"Jumlah penumpang yang menggunakan perkhidmatan MAS bagi Januari hingga April tahun ini pula telah menurun 11 peratus kepada 57.9 peratus berbanding 68.9 peratus bagi jangka masa yang sama tahun lepas," kata beliau.

Abdul Rahim berkata, fenomena itu turut dihadapi oleh majoriti syarikat penerbangan pesaing yang juga mengalami penurunan ketara dalam tiga hingga empat peratus bagi suku pertama tahun ini.

Beliau berkata, berikutan itu, pengurusan MAS mengambil pelbagai langkah meningkatkan jualan. - BERNAMA

AirAsia may have to write off money owed by associates

http://www.theedgemalaysia.com/images/stories/FinancialDaily/08072009/airasia.jpg

AIRASIA Bhd may have to write off some of the amounts owed by its associates, Thai AirAsia and Indonesia AirAsia, or inject more cash investments into them if they continue to make losses and require more funding, according to Maybank Investment Bank (Maybank IB).

“AirAsia may have to write off some of the owed amounts totalling RM603 million at end-4Q08 and RM752 million at end-1Q09, and/or inject more cash investments into its associates.

“This could result in losses at the group level post-injection of new funds into its associates, and require more than a 20% private placement at AirAsia level to right-size its balance sheet,” the research house said in a report yesterday.

AirAsia will propose to raise the continued assistance to 49%-owned Thai AirAsia and Indonesia AirAsia from 5% each of AirAsia’s latest audited net tangible asset (NTA), to 10% each at an upcoming EGM.

AirAsia reported on Monday that net financial assistance rendered to Thai AirAsia and Indonesia AirAsia were RM248 million and RM355 million, respectively, or 15.5% and 22.2% of its audited NTA as at FY08.

Maybank IB, which maintained a sell on AirAsia, said it was not surprised at the announcement, as it was “one of several overhanging concerns on AirAsia”, and that its share price did not fully reflect these concerns.

The research house has ascribed a target price of RM1 to the low-cost carrier, based on 0.9 times 2010 price-to-book value.

“In the worst-case scenario, if the amounts due to AirAsia from its associates are fully written off, the NTA of AirAsia will lower by about 30%, implying a similar potential writedown to our target price,” it said.

In the aviation sector, its pick is Malaysia Airports Holdings Bhd with a buy call and target price of RM4, for leverage on the air travel market’s potential recovery in 2010.

Meanwhile, AmResearch has upgraded AirAsia to buy from sell to reflect “easing balance sheet concerns”, stronger-than-expected 1Q09 performance and share price retracement, which has discounted a potential share dilution risk from AirAsia’s proposed private placement.

It said AirAsia’s proposed placement of new shares had addressed its key concern on AirAsia’s highly leveraged balance sheet previously.

“Cash to be raised from the exercise — circa RM500 million — is expected to bring net gearing down to much more manageable levels — from four times down to just 3.1 times in FY10. Interest cover is estimated to rise to two times from 1.9 times pre-placement,” it said.

AmResearch has revised upwards its FY09 net profit projection for AirAsia by 153% to RM410 million, and FY10 forecast by 167% to RM493 million to reflect, in anticipation of higher ancillary income, a more moderate yield contraction of 10% versus a previous assumption of 13% contraction for FY09.

Following an upward revision to projections, the research house has revised upwards its fair value for AirAsia to RM1.45 per share from RM1.04 per share previously.

“Our valuation is pegged at 40% discount to AirAsia’s historical average PE (price-earnings) of 14 times against FY10 diluted earnings, to reflect AirAsia’s volatile cost structure (as it is unhedged at the moment) as well as still uncertain recovery of the broader airline industry,” it said.

“At implied valuation of just 6.4 times FY10 fully diluted earnings, we think the market has sufficiently priced in earnings dilution risk ahead of AirAsia’s proposed private placement over the next two months.

“AirAsia currently trades at a huge 54% discount to historical average PE of 14 times against expanding ROE (return on equity) of 16% in FY10,” it added.

AirAsia closed at RM1.14 yesterday, up four sen.

AirAsia: Plane delivery to be partly deferred
By B.K. SIDHU


AirAsia to hold back on eight aircraft each in 2010 and 2011

KUALA LUMPUR: AirAsia Bhd plans to defer taking delivery of eight Airbus A320 aircraft for 2010 and may opt to do the same for another eight aircraft the following year, said its group chief executive officer Datuk Seri Tony Fernandes.

“We are negotiating with Airbus SAS to push the orders to the back end. Our focus next year is to consolidate our aircraft type to all A320s and return the 13 B737 that we have leased from GE Commercial Aviation Services (GECAS),” he told StarBiz in an interview.


Datuk Seri Tony Fernandes ... ‘we are negotiating with Airbus SAS to push the orders to the back end.’
AirAsia became the largest customer of the Airbus A320-200 in December 2007 after it placed a firm order for a total of 175 aircraft, with an option for 50 more. Deliveries are expected to run until 2014. For 2010 and 2011, the airline is slated to take delivery of 24 aircraft each year.

As at end-June, the budget airline had 61 aircraft of which 48 are for its Malaysian operations, and the rest for Thai AirAsia and Indonesia AirAsia.

Besides that, it also has a fleet of 16 B737, of which three are its own and 13 leased from GECAS.

With the deferment, AirAsia is expected to push most of it new aircraft to its associates in Indonesia and Thailand, leaving very few new aircraft for its Malaysian operations, thus limiting its growth potential going forward although the two units will be able to expand more aggressively.

“Deferring the delivery of these aircraft is an opportunity lost to AirAsia as it would mean forgoing an attractive 12-year aircraft financing package which is close to LIBOR (rates) negotiated just prior to the economic crisis. (But issues arising from) the uncertainty of the new LCCT to be completed by July 2011 far outweighs the opportunity lost in this attractive financing (package),’’ said Datuk Kamarudin Meranun, the deputy CEO of AirAsia.

Fernandes denied that the plan to defer aircraft deliveries had to do with raising funds for the purchase of the aircraft, saying “the funding for this and next year is in order.’’

In February this year, AirAsia mandated Barclays Capital, the investment banking division of Barclays PLC, to finance 15 of its new Airbus A320.

“We are in negotiations with the supplier for all aircraft to have minimal or zero cash outlay and that will not put a strain on our cash.

http://biz.thestar.com.my/archives/2009/7/14/business/p1-airasia.JPG
An AirAsia aircraft is being pulled at Kuala Lumpur International Airport’s low-cost carrier terminal in Sepang. With the deferment, AirAsia is expected to push most of its new aircraft to its associated in Indonesia and Thailand. - AP

“We are not delaying the deliveries because of cashflow, we need the planes for our operations but there is an infrastructure risk out there that we cannot afford to take,’’ Fernandes said.

All airlines had been hurt by the economic crisis, Fernandes pointed out, but “our cashflow is very healthy. In fact, we are working towards having RM1bil cashflow by the first quarter of 2011.’’

AirAsia had RM224mil cash and RM6.93bil debts in its books at the end of March 31, most of it for aircraft financing.

But for this year, Fernandes said “there will be no delays in taking the aircraft deliveries.’’

AirAsia has taken delivery of five of 14 aircraft scheduled for this year.

AirAsia has been expanding routes and frequencies when many airlines globally are cutting back, with the budget carrier aiming to expand to places like India, Middle East and North America.

“Expansion is necessary but we will never stretch ourselves. Imagine this, if we were to slow down we could have been crushed by our competitors from Singapore. We believe in growing but in a sensible manner,’’ Fernandes said.

AirAsia was only one of a handful of airlines to post a profit in the first quarter.

AirAsia’s earnings in its March quarter rose 26% to RM203.2mil from a year earlier due to higher passenger numbers from additional routes.

AirAsia launches two new routes


PETALING JAYA: AirAsia has launched two new flights from Miri and Tawau to Singapore.

AirAsia will be offering all-in fare from Tawau to Singapore from RM79 (S$42); and Miri to Singapore from RM59 (S$32) from July 14 to 19 — for travel period from Sept 9 this year till end of April next year.

Bookings can be made exclusively on line via www.airasia.com and mobile.airasia.com.

AirAsia through its holiday division Goholiday, is also offering guests free rooms when tourists book at the airline’s partner hotels in Singapore. The promotion is only valid via online at goholiday.airasia.com.

Promotional seats and free rooms are limited and are only available on first come, first serve basis.

The airline’s first East Malaysia connection with Singapore was from Kota Kinabalu and Kuching which started last November.

To date, AirAsia has 406 weekly flights to and Singapore.

The new route will draw more in-bound tourist traffic from Singapore into Sabah and Sarawak through AirAsia’s X’s long haul network.

Reduced gearing for AirAsia
By LEONG HUNG YEE


Move to part-defer taking delivery of aircraft in 2010 should lower debt obligations

PETALING JAYA: AirAsia Bhd’s decision to defer taking delivery of eight Airbus A320 aircraft next year is expected to bring its gearing level down, say analysts.

AmResearch views the development positively, saying AirAsia would manage to avoid building up significant capital and finance costs in its books over a soft phase in passenger demand cycle.

The research house said the move would also lift the market’s previous concerns on AirAsia’s aggressive expansion plan amid a weak demand environment, which could have resulted in a mismatch between slowing earnings growth and escalating costs.

“Assuming the deferral were to materialise, we will lower our net gearing forecast to 2.7 times from 3.1 times in 2010 and 2.8 times from 3.6 times in 2011 – extending out the gearing up cycle over AirAsia’s growth phase.

“Due to earlier assumptions of poor load factors, the elimination of depreciation and finance charges actually raise our net profit forecast by 9% to 16% to RM537mil in financial year ending Dec 31, 2010,” AmResearch said.

On Monday, AirAsia said it was planning to defer taking delivery of eight A320s for 2010 and may defer taking delivery of another eight aircraft in 2011.

The low-cost carrier was originally scheduled to take delivery of 24 aircraft next year and another 24 in 2011.

OSK Research analyst Ng Sem Guan said the deferment could help the airline lower its “relatively high” gearing level.

“Although AirAsia announced a proposed private placement recently, its gearing remains a concern,” he said, adding that the deferment reflected the less-than-exciting outlook for the carrier.

“We think the deferment suggests that the outlook for the carrier is tougher than expected. The rebound in crude oil price and the fact that the company has unwound all its fuel hedge positions may pressure operating costs. This prompts us to revise downwards our FY10 earnings by 15.5%,” he said.

However, Ng said AirAsia’s on-going fund raising exercise might provide some excitement for its share price performance.

ECM Libra Investment Research said although the deferment of delivery of the eight aircraft next year might cap earnings for 2010, it would help lighten the the group’s debt obligations.

“AirAsia’s gearing level is expected to be five times in FY10. However, the deferment of the aircraft delivery will reduce it a little to a gearing level of about 4.3 times. We also expect its cash balances to improve in FY10 as a result,” it said.

The research house said it was less concerned about the earnings opportunity cost and was more positive about the effects the deferment would have on AirAsia’s balance sheet.

AirAsia to launch Flights from Singapore to Miri and Tawau
Tuesday, 14 July 2009

AirAsia is to launch two new flights between Singapore and East Malasyia. The new Singapore - Miri and Singapore - Tawau sectors, which begin 9 September, will help draw more inbound international tourist traffic arriving from Singapore into Sabah and Sarawak.

To celebrate the introduction of the new routes, AirAsia is offering all-in-fare for Tawau- Singapore from RM79 (Sin$42) and Miri- Singapore from RM59 (Sin$32).

Both promotional fares open for sale from 14 July to 19 July 2009 for travel between 9 September 2009 and 30 April 2010. Promotional seats are limited and available on first-come, first-served basis.

AirAsia’s first connection between East Malaysia and Singapore was from Kota Kinabalu and Kuching, which commenced last November. Other existing routes include Kuala Lumpur - Singapore, Langkawi- Singapore and Penang- Singapore.

Apart from Malaysia, AirAsia currently flies between Singapore and the Indonesian provinces which include Bali (2 daily flights), Jakarta (4 daily flights), Pekanbaru (3 flights weekly), Yogyakarta (1 daily flight) and Bandung (2 daily flights). In addition to that, AirAsia also flies to Bangkok (4 daily flights) and Phuket (1 daily flight) in Thailand.

AirAsia currently has a total of 406 weekly flights to and from Singapore.

Kathleen Tan, Regional Head of Commercial AirAsia, said “We are proud to open-up new market as these sectors are not served. Students, families and foreign workers can now take advantage of our low fares and renew their social ties more frequently or even indulge in leisure holidays to both countries. There are countless attractions in East Malaysia and Singapore as it entails a wonderful journey of discovery into its culture, heritage and adventure. Our recent initiative to remove the administration fee reiterates AirAsia’s commitment to offer big value so everyone can fly following our move to abolish fuel surcharge last year.”

Miri is the second largest city and the most popular tourist destination in Sarawak. It is famous for its national parks, heritage sites and adventure destinations for the most spellbinding experiences in Sarawak. For instance the Gunung Mulu National Park, is home to the world’s largest cave system, the world’s largest cave passage and the largest natural rock chamber in the world. Miri is also a bustling commercial centre and boasts as the home of Sarawak’s oil industry.

Tawau is located at the northern tip of Sabah Borneo and is the gateway to the world class diving paradise Sipadan Island and many neighboring island resorts. Through Tawau tourists will also gain access to a few oldest virgin forests in the world, for instance Danum Valley, Tabin Wildlife, Maliau Basin, and Tawau Hill Park.

---

AirAsia plans to sell three B737 aircraft
By B.K. SIDHU

http://biz.thestar.com.my/archives/2009/7/17/business/p2-airasiaplanei.JPG

PETALING JAYA: AirAsia Bhd plans to sell the three B737 aircraft it owns as part of a plan to have a fleet comprising only A320s, says group chief executive officer Datuk Seri Tony Fernandes.

The airline’s 16 B737s are used by its associate companies in Indonesia and Thailand for their operations. Of the 16, three are its own with no financial obligations while 13 are leased from GE Commercial Aviation Services (GECAS).

The plan is to replace the entire fleet of B737 with new A320-200s by selling three and returning the rest to GECAS.

However, the leased aircraft have different leasing tenures. If AirAsia can find a buyer for its aircraft and get “replacement” lessors for the 13, it would not have to worry about keeping the B737s for the full tenure.

http://biz.thestar.com.my/archives/2009/7/17/business/p1-airasiaqtcht.JPG

If it decides to return the leased aircraft sooner, there may be a penalty but finding a new lessor would help. AirAsia is therefore working out arrangements to minimise its liability by helping to find a new lessor but this is subject to GECAS’ approval.

That is why AirAsia has started talks on both the sale and leasing arrangements for the B737s.

“We are currently in negotiations with several parties, both potential lessors and buyers,’’ said deputy CEO Datuk Kamarudin Meranun.

But as he pointed out: “AirAsia is not in a rush to sell the planes and certainly not at fire-sale prices. We will only dispose of them if the price is right.’’

Both Fernandes and Kamarudin said no timeline had been set for the aircraft disposal.

AirAsia ordered 175 aircraft with an option for 50 more from Airbus SAS in December 2007. Thus far, it has taken delivery of 61 A320-200 and will receive a further nine this year. It is slated to take delivery of 24 aircraft this year and another 24 in 2011.

Recently, the low-cost carrier decided to delay the delivery of eight aircraft scheduled for next year and negotiations are under way to delay a further eight for 2011.

That means it will only take delivery of 16 aircraft next year. This year it has received five of the 14 new aircraft, of which three will be used for the Malaysian operations, seven for Indonesia AirAsia and four for Thai AirAsia.

With the A320-200 fleet slowly but surely taking shape, the pressing question is whether AirAsia would be able to dispose of its B737s given the lack of demand for air travel and airlines are contracting capacity.

“There is a market for the aircraft but it depends on pricing, quality of aircraft and its maintenance record,’’ Kamarudin said.

Airlines tighten baggage rules to help trim costs
By YEOW POOI LING

http://biz.thestar.com.my/archives/2009/7/17/business/p5-baggagecht.JPG

IATA says every 1% improvement in fuel efficiency across industry can cut fuel costs by US$700mil annually

PETALING JAYA: Most airlines, in trying to mitigate the impact of fuel price volatility, have resorted to stringent baggage restrictions as part of measures to achieve better fuel efficiency.

According to the International Air Transport Association (IATA), every 1% improvement in fuel efficiency across the aviation industry can lower fuel costs by US$700mil annually. This is unsurprising since fuel cost is the second-largest cost for airlines after labour.

Passengers on AirAsia flights are encouraged to travel light, like using carry-on luggage, to minimise checked-in baggage. They are allowed to have one carry-on luggage of up to 7kg, plus free 15kg allowance for checked-in baggage.


In comparison, Malaysia Airlines (MAS) allows for hand luggage to have a maximum combined weight of 5kg and free 20kg allowance for checked-in luggage for economy class (see table).

MAS general manager for corporate safety, security, health and environment, Ooi Teong Siew, said reducing weight was one of the static techniques, which include ensuring aircraft are well trimmed and engines cleaned regularly.

Dynamic techniques, meanwhile, are factors that have an impact on the flight path like direct routings, economical speeds, continuous descents and optimum altitudes.

“These efforts, without compromising on safety and quality, have reduced our fuel burnt rate and enabled us to contribute to cost reduction of RM2.3bil from 2006 to 2008,” Ooi said in an e-mail reply to StarBiz.

AirAsia Bhd group chief executive officer Datuk Seri Tony Fernandes noted that for every flight hour, an additional 1,000kg of take-off weight would burn up 90kg fuel.

AirAsia also achieved greater fuel efficiency with its new fleet of A320 planes, as they offered higher unit fuel consumption per flight while high dispatch ability and operational efficiency contributed to lower maintenance expenses, Fernandes said.

“We adhere to a quick turnaround of 25 minutes, which leads to high aircraft utilisation, lower costs as well as greater airline and staff productivity. Fuel consumption-wise, the quick turnaround means less time spent by an aircraft idling on the ground, which reduces unnecessary fuel consumption and harmful emissions,” he said.

Such practices kept costs down and ensured minimum aircraft weight, Fernandes said, adding that savings and benefits would translate into low fares for passengers.

Ooi said MAS also minimised the use of auxiliary power unit on ground, ensured faster connection of ground power, chose the best flight profile as well as adopted a continuous descent approach at applicable airports, and regular airframe and engine maintenance.

“Other examples include replacing the heavy unit loading devices with those which are 40kg lighter and using nearer alternate airports.”

MAS is anticipated to achieve greater fuel efficiency when it takes delivery of 35 B738 late next year and the A380 in 2011.

Meanwhile, FlyFirefly Sdn Bhd managing director Eddy Leong said the airline did not practise overzealous efforts in enforcing one hand luggage and checked baggage limits.

“Firefly’s business model was designed to be light from the beginning because we chose a very fuel efficient and modern ATR72-500 aircraft,” he said.

The focus then is on eliminating hassles, enriching the travel experience and optimising costs.

“For example, our full complimentary food and beverage on board includes serving muffins on paper cups and ensuring that we cater exactly to the passenger count. Any extras would be given to passengers.

“In the end, there is no waste to offload, no wastage to worry about. Our ultimate gain is in the revenue side and loyalty from passengers,” Leong added.

Emirates Airlines, in contrast, increased the free baggage allowance across its network effective May 4, with the exception of countries that apply one-piece concept for checked-in luggage.

Economy class travellers are now given 30kg from 20kg previously.

An analyst with a local brokerage said the impact of strict baggage terms was unlikely to have a huge impact on bottomline.

Airlines also tried to carry the correct amount of jetfuel and to power planes by ground power units during waiting periods instead of jetfuel to achieve better fuel efficiency, he said.

IATA, on its website, indicated efforts being taken with air navigation service providers, air traffic controllers, airlines and other key stakeholders to save one minute per flight via better airspace design, procedures and management.

“If successful, this initiative could reduce total industry operating costs by over US$1bil a year and significantly reduce environmental emissions,” the association said, noting that on average, airlines spent US$100 per minute per flight in total operating costs.

Airasia to resume JB-Bangkok route
Published: 2009/07/17





Low cost carrier AirAsia is resuming it's Johor Baru-Bangkok flight beginning July 21, three weeks after it stopped the service.

And the resumption of the two-hour long flight from the Senai airport here has met with approval from the State tourism authority and travel agents alike.

But the question which still trouble them is whether AirAsia would commit themselves to continue servicing the route or put a stop to it like the previous two occasions where they decided that the JB-Bangkok route would no longer be part of their operations.

The AirAsia JB-Bangkok flight was first introduced in 2005 but it was stopped a year later, and in February 2008 the flight resumed only to be stopped again in the beginning of July this year.





Johor executive councillor in charge of tourism Hoo Seong Chang welcomed AirAsia's latest decision but he cautioned against the disruption of the service in future.

"It's the state goverment's policy to make the Senai airport into a passenger hub and therefore we welcome any airlines which want to fly or land here.

"AirAsia has been supportive but I can also understand the situation they are caught in sometimes. They told us that the low load factor is one reason why they sometimes stop certain flight.

"Maybe the situation now with the spread of the HIN1 virus is preventing people from travelling but I urge AirAsia to be more patient. When the situation improves more people will travel," said Hoo.

The resumption of the flight has also been welcomed by the Tourism Authority of Thailand (TAT) which sees the JB-Bangkok flight as very convenient for travellers from Johor.

In fact, Thailand or rather Bangkok in particular remains a favourite holiday destination for Malaysians with arrival at 1.82 million for the year 2008, an increase of 18 per cent from the previous year's arrival of 1.54 million.

"The figures are encouraging but at the same time, to go on a holiday to Thailand also means value for money," said Richard Lim, the TAT marketing manager for Malaysia and Brunei. -- BERNAMA

Hatyai-KL please!!!

Good response, so AirAsia increases KL-Taipei flights
Wednesday July 22, 2009

PETALING JAYA: AirAsia is expanding the frequency of its Kuala Lumpur-Taipei route from five a week to daily flights, starting Oct 19.

The route was launched in April and had received overwhelming response, said AirAsia chief executive officer Azran Osman Rani.

“We are running at more than 75% load factor. More than 20,000 seats were sold within the first 12 hours of the sales announcement in April and forward bookings were exceptionally strong,” he said.

The all-in-fare is priced at RM129. Tickets for the period from Oct 19 to Jan 10, 2010 can be booked from tomorrow to July 31.

Citibank AirAsia credit cardholders get to enjoy 24-hour priority booking, starting today.

Free room stay is also offered, via the airline’s GoHoliday package, at Hotel Renaissance, Hotel Equatorial, One World Hotel, Corus Hotel and Tune Hotels.

Another promotion, Best Online Rates in Taipei, offers five-star hotel rooms for as low as RM383 per night.

For more information, log on to www.airasia.com or mobile.airasia.com.

AirAsia X CEO backs merger with AirAsia Bhd
By B.K. SIDHU


Azran: Merger will let AirAsia tap into long-haul markets

SEPANG: A merger between AirAsia X and AirAsia Bhd makes business sense and the combined balance sheet would make sourcing for future funding much easier, said AirAsia X chief executive officer Azran Osman-Rani.

“It would be difficult for AirAsia in the future if it did not have trunk routes as (this) is where the traffic volumes come from, so AirAsia needs growth from AirAsia X and the merger allows it to tap growth opportunities in the long-haul markets,” Azran told StarBiz in an interview.

“AirAsia cannot continue to just criss-cross and enter new markets, it needs a bigger base,’’ he added.

Given the nature of the business, which is counter-cyclical, a large base was necessary to balance the routes in peak and non-peak months, he said.

http://biz.thestar.com.my/archives/2009/7/23/business/p1-azran.JPG
Azran Osman-Rani … ‘AirAsia needs growth from AirAsia X.’

That is why AirAsia X has to sell beyond Kuala Lumpur or else only 20% of the seats will be taken up. It has to sell destinations, be it in Malaysia or the region, and 80% of those travelling with AirAsia X use AirAsia to travel to Langkawi, Penang, Phuket or even Bali.

“That is why AirAsia needs growth from AirAsia X and for that greater control of AirAsia X is needed,’’ Azran said.

Recently, AirAsia group chief executive officer Datuk Seri Tony Fernandes was reported as saying his personal preference was for a merger of the two companies.

AirAsia has a 16% stake in AirAsia X and an option to increase it to 30%.

The remaining shareholders in AirAsia X are Aero Ventures Sdn Bhd (48%), the Virgin Group (16%), while Bahrain-based Manara Consortium and Japan-based Orix Corp hold the remaining 20%.

Aero Ventures is owned by Fernandes, Datuk Kamarudin Meranun, Datuk Kalimullah Hassan, Lim Kian Onn and former Air Canada chairman and CEO Robert Milton.

Fernandes and Meranun are controlling shareholders in AirAsia with a 30.7% stake via Tune Air Sdn Bhd.

Even though it is still at the idea stage, critics are already saying the merger is necessary to rescue AirAsia X as, to them, AirAsia is now subsidising AirAsia X.

“Rubbish, we can clearly dispute that. For the first quarter ended March 31, 2009 our net profit was RM18mil and we are net cashflow positive. We even had a little cash at RM3mil.

“We are in a very good position and on a much firmer footing and now is an interesting time to talk about merger,’’ Azran said.

Fernandes, in a separate interview with StarBiz recently, said the merger was merely his proposal but felt it was a good model. However, no decision has been made thus far.

“When we started AirAsia X, a lot of critics said we could not do it but AirAsia X has turned out to be a very cash-flow positive company. Azran will be going on a roadshow soon to explain so that people have a better understanding that this long-haul, low-cost model can work,’’ Fernandes said then, adding that the roadshow would cover Kuala Lumpur, Singapore, Hong Kong, New York and London.

A share swap is likely but Azran said AirAsia had an option to increase its stake from 16% to 30% and with that it could equity account its venture in AirAsia X.

“They can either put cash in and increase the stake from 16% to 30% or do a share swap. It is a decision only the shareholders can make and I am not privy to that,’’ he said.

Asked when the merger was likely to happen, he said: “I will be surprised if it happens this year. AirAsia X has not received any offer and the process cannot begin. We also have to appoint a valuer and AirAsia has to hold an EGM.’’

AirAsia X was last valued at RM1.3bil when Manara and Orix took up their stakes.

AirAsia to fly to Tiruchi, India, twice daily from Sept 1

Published: Monday July 27, 2009 MYT 1:53:00 PM
AirAsia to fly to Tiruchi, India, twice daily from Sept 1
By YUEN MEIKENG


PETALING JAYA: Good news for those who travel often to Tiruchirapalli as low-cost carrier AirAsia will be adding a second daily flight to the Indian district starting Sept 1.

To celebrate the introduction of the flight, AirAsia will be offering an all-in fare of RM129.00 for a travel period between Sept 1 this year and April 30 next year.

The booking period for the flight will be from Tuesday to Aug 2.

AirAsia Group commercial regional head Kathleen Tan said the airline was proud to be servicing an underserved route and opening up this market to the world.

“Tiruchirapalli is a highly popular and desired destination among Hindus in Malaysia as it has an abundance of temples, which are popular pilgrimage sites for Hindus,” she said in a statement on Monday.

She added that there was an increase in visiting travellers from the district in Tamil Nadu who were progressively using Kuala Lumpur as a connecting gateway to over 130 routes in South East Asia and beyond.

“In fact, within the first month of flying to India, we enjoyed a load factor of 100% on this route,” Tan said, adding that it was now timely to add a second frequency.

Tiruchirapalli was AirAsia’s first destination in India since its inception on Dec 1 last year.

AirAsia is also offering its guests free rooms in various destinations when they book at its partner hotels via goholiday.airasia.com.

For more information on flights and other promotions, visit www.airasia.com.

AirAsia adds second flight to Trichy
Published: 2009/07/27





Low-cost carrier AirAsia Bhd will increase its highly popular KL-Tiruchirappalli (Trichy) route to two direct daily flights from September 1.

In a statement today, the carrier said to celebrate the introduction of the second KL-Trichy frequency, it is offering an all-in-fare from RM129.00.

The booking period for the second frequency will be from July 28 - August 2, 2009 for the travel period of September 1, 2009 - April 30, 2010. -- Bernama

AirAsia to have second daily flight to Tiruchirapalli from Sept 1


PETALING JAYA: Good news for those who travel to Tiruchirapalli often. Low-cost carrier AirAsia will launch a second daily flight to the Indian district from Sept 1.

To celebrate the introduction of the flight, AirAsia will be offering an all-in fare of RM129 for the travel period between Sept 1 and April 30.

The booking period for the flight will be from today to Aug 2.

AirAsia Group commercial regional head Kathleen Tan said the airline was proud to be servicing an underserved route and opening up this market to the world.

“Tiruchirapalli is a highly popular and desired destination among Hindus in Malaysia as it has an abundance of temples, which are popular for pilgrimage,” she said in a statement yesterday.

She said that there was an increase in visiting travellers from the district in Tamil Nadu who were progressively using Kuala Lumpur as a connecting gateway to over 130 routes in South-east Asia and beyond.

“In fact, within the first month of flying to India, we have enjoyed a load factor of 100% on this route,” Tan said.

She added that it was timely to add a second frequency.

Tiruchirapalli was AirAsia’s first destination in India since its inception on Dec 1 last year.

The airline is also offering its guests free rooms at various destinations when they book at its partner hotels via goholiday.airasia.com.

For more information on flights and other promotions, visit www.airasia.com.

AirAsia X fails to get Govt nod for flights to Sydney and Seoul
By B.K. SIDHU


SEPANG: AirAsia X’s expansion into Sydney and Seoul will be delayed as it has failed to get the nod from the Malaysian Government to fly to the two cities, forcing the long haul low-cost carrier to formulate a back-up plan to utilise some of the new aircraft that will be delivered later this year.

“We had asked for rights to fly to Sydney and Seoul and the Government decided to defer granting us the approval. They want (AirAsia) to settle (its) dues with Malaysia Airports Holdings Bhd (MAHB),’’ AirAsia X chief executive officer Azran Osman-Rani told StarBiz in an interview recently.

“It is a high profile issue and needs a lot of justification but we are AirAsia X and not the ones that owe MAHB money for airport services. Every invoice that we receive is paid within 30 days.”

“It is unfortunate that we are brought into the AirAsia issue but we have written and explained that our accounts are all current,’’ he said.

About RM65mill payment due to MAHB from AirAsia is in dispute.

Azran reiterated that “the dispute is between the two (AirAsia and MAHB) but delaying us from flying into these two destinations will not help travellers who have limited choices and we lose opportunities of the multiplier impact (that) tourism has.”

“We know the Koreans are keen to have us and both the airports – Sydney and Seoul – welcome us,’’ he said.

The delay may be seen as a setback in its expansion plans as with so much capacity coming onstream, AirAsia X has to work fast to secure rights for other markets so that its planes are not grounded for too long.

“We believe the two markets are big enough for more players. MAHB has been trying hard to get Qantas and Jetstar back and here we are waiting to fly to Sydney,’’ Azran added.

Whether it is AirAsia or AirAsia X, there are common shareholders in both companies and allowing AirAsia into newer markets will certainly heat up competition and drive fares down as seen from its flights to Gold Coast, Melbourne, Perth and London.

“Fundamentally, we do not fly to a destination and take passengers away. We create a new market which even other players can tap into,’’ the AirAsia X chief said.

AirAsia X is set to take delivery of three A330 this year – one each in September, November and December.

It needs to utilise these aircraft and Azran said he was now busy trying to come up with a plan so that the aircraft would be fully utilised since the Sydney and Seoul routes would be delayed.

“We will look at the near term first since we will take delivery of an aircraft in September. We may add capacity on our existing routes to Gold Coast, Hangzhou and Taipei. The new destinations that we are considering include Chengdu. We are hoping to get the time slots soon and the Transport Minisntry has been really helpful in all this,’’ he said.

AirAsia X might fly into either Sharjah or Abu Dhabi sometime this year as part of its plan to venture into the Middle East, he said, adding that Baharin was also on the cards but Teheran would be delayed.

India is a market that AirAsia X wants to look at in 2010 but Amritsar may come earlier if it manages to get the rights, but via Bangkok.

As for the US, the airline liked New York, San Francisco and Los Angeles but formal submissions had not been made, although the process had begun, Azran said, adding that AirAsia X hoped to cover the US by next year.

OUCHHH..........

AirAsia X denied rights to fly into Sydney
July 28, 2009 - 3:40PM

Long-haul budget airline AirAsia X has been denied permission to fly to Sydney and Seoul due to a row between the Malaysian government and its sister carrier AirAsia, a news report said.

The refusal has forced AirAsia X to scramble to make new plans to utilise the three new Airbus A330 aircraft due for delivery this year, the Star daily said today.

"We had asked for rights to fly to Sydney and Seoul, and the government decided to defer granting us the approval," AirAsia X's chief executive officer Azran Osman-Rani reportedly said.

He said the government first wanted AirAsia to settle the issue of an outstanding 65 million ringgit ($A22.45 million) payment for airport services with Malaysia Airports Holdings before giving the green light.

"The dispute is between the two (AirAsia and MAHB), but delaying us from flying into these two destinations will not help travellers who have limited choices," Azran told the daily.

"We know the Koreans are keen to have us, and both the airports - Sydney and Seoul - welcome us," he added.

AirAsia was not immediately available to confirm the reported comments.

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

AirAsia X currently flies to three Australian destinations - the Gold Coast, Melbourne and Perth.

AFP

Why they use D7 instead of AK for Taipei flights ? Guilin is little farther but AK is being deployed.

Why don't D7 pick destinations that are not flown by MH but choose to compete with it on vital lines like SYD, ICN ?

AirAsia X to set up virtual hub in Middle East
By BK Sidhu
The Star Biz
29 July 2009

KUALA LUMPUR: AirAsia X Sdn Bhd, a long-haul budget airline and related company to AirAsia Bhd, is looking to set up its first ever virtual hub in the Middle East next year.

AirAsia X chief executive officer Azran Osman-Rani told reporters Wednesday that this hub would serve the region and beyond and was part of the airline’s expansion strategy.

He said the hub would be used for flights from Malaysia to Middle Eastern destinations as well as from the Middle East to Europe.




AirAsia X to name new flight destinations
By B.K. SIDHU
The Star Biz
29 July 2009

PETALING JAYA: AirAsia X will today announce some new destinations it will be flying to in the coming months in its quest to expand.

“We are not going to slow down just because we have not get approval yet to fly into Sydney and Seoul. We will add more flights and services and continue with our expansion,’’ AirAsia X chief executive officer Azran Osman-Rani told StarBiz yesterday.

Several weeks ago, AirAsia X had asked for rights from the Government to fly into Sydney and Seoul as these markets offered good growth potential for the carrier.

However, in an interview with StarBiz which was published yesterday, Azran said “the Government decided to defer granting us the approval. They want (AirAsia) to settle (its) dues with Malaysia Airports Holdings Bhd (MAHB).’’

“It is unfortunate that we are brought into the AirAsia issue but we have written (to the Government) and explained that our accounts are all current,’’ he had said. AirAsia owes MAHB RM65mil in airport service charges. AirAsia and AirAsia X have common shareholders.

Maybank Investment Bank senior analyst Khair Mirza said it was unusual for the Government to withhold approval for the reasons quoted.

“It suggests that there may be more issues than those quoted and there could be reciprocation issues as well,’’ Khair said.

Another analyst said AirAsia X should just go ahead with its expansion into other markets as there were many more destinations that offered equally exciting opportunities as Seoul and Sydney.

The likely markets that AirAsia X will fly to with the three new aircraft it will be taking delivery of this year are speculated to be the Middle East, particularly Abu Dhabi, and China. It is likely to increase frequency on its flights to Melbourne, Perth, Gold Coast, Taipei and Hangzhou.




AirAsia to boost revenue via Tune Talk partnership
The Star Biz
29 July 2009

PETALING JAYA: AirAsia Bhd yesterday signed a cooperation agreement with Tune Talk Sdn Bhd aimed at generating extra revenue and further boosting the AirAsia brand.

Incorporated on Jan 13, 2006, Tune Talk is principally involved in providing telecommunication services and other related services.

The company is 35.75%-owned by Tune Ventures Sdn Bhd, in which AirAsia group chief executive officer Datuk Seri Tony Fernandes and AirAsia deputy CEO Datuk Kamarudin Meranun are substantial shareholders.

In a filing with Bursa Malaysia, AirAsia said the rationale for the agreement was to generate extra revenue through sales of Tune Talk SIM cards and Top Up Voucher.

It was also to generate additional online ticket sales via distribution of e-gift vouchers by Tune Talk through its loyalty programmes as well as to enhance and further boost AirAsia’s branding through various advertising platforms made available by Tune Talk free of charge.

AirAsia said under the agreement, it would become the launch partner of Tune Talk and purchase 200,000 Tune Talk SIM cards (worth RM860,000) that would bear AirAsia’s and Tune Talk’s branding.

“The downside financial risks associated with the agreement are expected to be very limited because the company does not need to make extra investment to market or sell the Tune Talk SIM card or Top Up Voucher,” it said.

The products would be sold on board all AirAsia’s flights, it added.

AirAsia said it did not require the approval of its shareholders or any authorities to enter into the agreement with Tune Talk.

It also said the agreement was not expected to have a material effect on its consolidated net assets and consolidated earnings for the current year ending Dec 31.

AirAsia, MAHB may settle dues row soon
Wednesday July 29 2009

KUALA LUMPUR, July 29 — A three-year dispute between budget carrier Air-Asia and Malaysian Airport Holdings Bhd (MAHB) over unpaid dues could be settled soon, after the airline's chief executive Datuk Tony Fernandes met Prime Minister Datuk Seri Najib Razak.

MAHB, which owns and manages most of Malaysia's airports, has a string of differences with the budget carrier. They include the location and cost of a new budget terminal and — most importantly from AirAsia's point of view — the fees it charges.

Fees have been a bone of contention since AirAsia moved into the current budget terminal next to Kuala Lumpur International Airport.

Airline executives say no rental agreement has been signed because Air-Asia says MAHB's charges are too high. As a result, MAHB insists AirAsia owes it RM103 million.

The dispute has hurt the airline. A month ago, the government turned down a request from AirAsia X — the carrier's long-haul unit — for the rights to fly to Seoul and Sydney. No written rejection has been forwarded to AirAsia but the decision has been conveyed verbally to AirAsia X.

This is a blow to the airline, which was counting on the new routes to use new planes that will be delivered this year.

“The government has decided to defer granting us approval,” AirAsia X chief executive Azran Osman-Rani said in The Star newspaper yesterday.

“They want AirAsia to settle its dues with MAHB,” he said. “It is a high-profile issue. But we are AirAsia X — not the ones that owe MAHB money for airport services. Every invoice we receive is paid within 30 days.”

Fernandes met Najib last Friday to discuss the situation. According to a government official, the talks were amicable but Fernandes was urged to settle the “dues” issue.

The airline's executives said AirAsia is awaiting MAHB's confirmation in writing of the amount owed, before proceeding with the matter.

But it is not clear whether AirAsia X will get the Sydney and Seoul routes even if AirAsia does settle its dues.

According to the executives, objections to AirAsia X were also raised on the grounds of giving national carrier Malaysia Airlines more time to prepare itself for the competition. — Business Times Singapore

AirAsia X to launch new Middle East hub
Published: 2009/07/29

Long-haul budget airline AirAsia X said today it would launch a new hub in the Middle East, enabling its network to extend to north Africa and Europe.

AirAsia X’s chief executive officer Azran Osman-Rani said a location had already been chosen in a Gulf state but that it would not be disclosed for several weeks.

“This will open up completely new markets, and we won’t always have to have the planes based in Kuala Lumpur, which limits us to an eight-hour radius,” Azran told reporters.

“There will be many in the aviation industry who think this is crazy because the traditional low-cost model is to do only point-to-point flights... to keep it simple,” he said.

Azran said, however, that while there would be “some additional cost”, AirAsia X would not need to create new infrastructure and would instead hire existing services for cargo, catering and maintenance.

Initially, the carrier will operate flights from Kuala Lumpur to the Middle East hub, before branching out next year by using it to jump to destinations that could include Morocco, Turkey, Spain or the Czech Republic.

Azran said the plan was also triggered by potential problems accommodating new aircraft, amid doubts that Malaysia’s airports authority will complete a new low-cost carrier terminal in Kuala Lumpur by 2011 as scheduled.

“It will relieve the pressure of having all our planes in Kuala Lumpur, especially if the new airport is not finished and we do not have enough parking bays,” he said.

AirAsia X now flies to seven destinations, with two more planned by the end of 2009. It operates five planes, a combination of Airbus A330s and A340s, with three more medium-range A330s due for delivery this year, three in 2010 and six in 2011.

Azran said this week that AirAsia X has been denied permission by the Malaysian government to fly into Sydney and Seoul, due to a row over its sister carrier AirAsia.

But he said Wednesday that it would instead boost flight frequency to the Gold Coast in Australia, Hanzhou in China, and the Taiwanese capital Taipei.

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

TRIBUTE TO YASMIN AHMAD

Yasmin's Upcoming Ad: Have You Flown AirAsia Lately?
Emop-VGGQ-Y

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


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

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

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

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


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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

the world forum http://www.skyscrapercity.com/showthread.php?t=142271&page=50

AirAsia X perluas khidmat ke utara Afrika, Eropah


Syarikat pilih lokasi di negara Arab sebagai pangkalan baru

SYARIKAT penerbangan tambang murah jarak jauh, AirAsia X akan melancarkan pangkalan di Asia Barat yang membolehkannya mengembangkan rangkaian perkhidmatan ke utara Afrika dan Eropah.

Ketua Eksekutifnya, Azran Osman-Rani, berkata lokasi sudah dipilih di negara Arab tetapi hanya diumumkan beberapa minggu lagi.

"Ia membuka pasaran baru. Jika pesawat hanya berpangkalan di Kuala Lumpur, ia membataskan rangkaian perkhidmatan kami hanya dalam lingkungan lapan jam penerbangan.


"Ramai peserta industri penerbangan yang menganggapnya tidak munasabah kerana model penerbangan tambang murah tradisional hanya melakukan penerbangan dari satu tempat ke satu tempat untuk menjadikannya mudah," katanya di Kuala Lumpur, semalam.

Azran berkata, di sebalik adanya kos tambahan, AirAsia X tidak perlu mewujudkan infrastruktur baru tetapi menyewa perkhidmatan sedia ada untuk kargo, katering dan penyelenggaraan.

Pada peringkat awal, syarikat itu akan mengendalikan penerbangan dari Kuala Lumpur ke pangkalan di Asia Barat itu sebelum meluaskannya dengan menggunakan pangkalan berkenaan untuk ke destinasi seperti Maghribi, Turki, Sepanyol atau Republik Czech tahun depan.

Azran berkata, rancangan berkenaan juga dicetuskan potensi masalah untuk menempatkan pesawat baru syarikat apabila siap terminal penerbangan tambang murah baru.

"Ia melegakan tekanan daripada menempatkan semua pesawat kami di Kuala Lumpur, terutama ketika lapangan terbang baru itu belum siap dan kami tidak mempunyai ruang letak pesawat mencukupi," katanya.

Buat masa ini, AirAsia X terbang ke tujuh destinasi dengan dua lagi laluan dirancang sebelum akhir tahun ini.

Ia mengendalikan lima pesawat iaitu kombinasi Airbus A330 dan A340 dengan tiga lagi pesawat bersaiz sederhana A330 akan dihantar tahun ini, tiga pada 2010 dan enam pada 2011.

Awal minggu ini, Azran berkata, AirAsia X tidak mendapat kebenaran daripada kerajaan untuk memulakan penerbangan ke Sydney dan Seoul disebabkan pertindihan dengan syarikat sekutunya, AirAsia.

Bagaimanapun, beliau berkata, AirAsia X akan menambah kekerapan penerbangannya ke Gold Coast di Australia, Hanzhou di China dan ibu kota Taiwan, Taipei. - AFP

AirAsia X not delaying expansion plans
Written by Loong Tse Min
Thursday, 30 July 2009 11:10

KUALA LUMPUR: AirAsia X is proceeding with its expansion plans, including the launching of two new routes — to Chengdu in China and a city in the Middle East — this year.

The long-haul budget carrier, which currently flies seven routes with five aircraft, is also planning to increase flight capacity this year to current routes by 50% to the Gold Coast in Australia, by 40% to Taipei, Taiwan and by 20% to Hangzhou, China.

Also this year, either Melbourne or Perth in Australia may see a boost in capacity from one flight daily to having two flights on four days weekly, chief executive officer Azran Osman-Rani said at a briefing yesterday. He said the new flight to the Middle East would start before Hari Raya Haji.

All these additions to capacity would be possible with the delivery of three new Airbus A330s wide-body medium-to-long range aircraft by year-end. Another three A330s are to be delivered after June 2010 and six aircraft for each year in 2011 and 2012. Its existing five planes are three Airbus A330s and two Airbus A340 long-range aircraft.

The airport “in the Gulf” will be one with a lot of connectivity and is a region that is completely new for AirAsia X. It would also be “very, very close to a Formula 1 track,” he said. It plans to make the Gulf airport its “virtual hub”.

“The virtual hub strategy would be a departure from the point-to-point model that is traditional to low-cost airlines and is a means for AirAsia X to continue expansion despite potential constraint in 2011 in terms of airport capacity at the LCCT,” Azran said, adding that “we are concerned with the timeliness of the completion of the permanent LCCT.”

Azran said the airline had observed a network effect that had boosted average yields from secondary but well-connected airports.

“When we first started in London, we started with only five flights a week. We then increased that to a daily service.

“When we increased our frequency, both the load factor and the yield of the average fare went up because suddenly it became more convenient to fly with us because every day there’s a flight.”

He said from its experience of “the virtual hub effect of London”, over 20% of its passengers used Stansted Airport as a transit point to other parts of Europe.

Following that, AirAsia X is considering to extend the principle of the virtual hub to a one-hop system to fly-on from the Middle East to underserved locations such as Turkey, Spain, Eastern Europe and even North Africa.

On the failure in obtaining approval from the Malaysian government to ply new routes to Sydney and Seoul, Azran said it had more landing rights than it could fly its aircraft this year. “So, it is a matter of just reallocating our capacity.”

No AirAsia-AirAsia X merger any time soon
Written by Loong Tse Min
Thursday, 30 July 2009 11:15

KUALA LUMPUR: The possibility of a merger between low-cost carrier AIRASIA BHD [] and its sister company and long-haul budget carrier AirAsia X, if it were to materialise at all, is unlikely to happen anytime soon.

“(AirAsia group chief executive Datuk) Tony (Fernandes) commented that he thinks that it might be a good idea to merge AirAsia and AirAsia X. So, I said yes of course it makes sense, but I think from a timing perspective, it’s not going to happen any time soon,” AirAsia X chief executive officer Azran Osman-Rani said at a media briefing yesterday.

Fernandes was recently quoted as saying that he was personally in favour of such a merger, but no decisions had been made so far.

Azran also said AirAsia would also have to deal with strengthening its balance sheet first before it could consider any merger exercise with AirAsia X, and it was in the midst of raising capital.

“I’m not sure, they (AirAsia) are raising more equity through a combination of placements and doing ADRs (American Depository Receipts)”, he said.

An ADR represents ownership in the shares of a non-US company and trades in US financial markets and enables US investors to buy shares in foreign companies without undertaking cross-border transactions.

AirAsia has announced the proposed placement of up to 20% of the issued and paid-up share capital of the company.

To a question, Azran said no merger talks were taking place between the two related companies. AirAsia Bhd has a 16% stake in AirAsia X, with an option to increase it to 30%.

The other shareholders in AirAsia X are Aero Ventures Sdn Bhd (48%), Virgin Group (16%), and Bahrain-based Manara Consortium and Japan’s Orix Corp (20%).

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

AirAsia forced out of Sibu-KK route: CEO
By Ting Tieng Hii and Nicholas Lo
Updated : 11:10 am August 01, 2009

Low-cost airline to stop direct flight from Oct 25 in compliance with govt directive

KUCHING: AirAsia will terminate its direct flight from Sibu to Kota Kinabalu because it has been forced to do so, its chief executive officer Datuk Seri Tony Fernandes said yesterday.

In fact, he did not deny that his airline will cease operating the route this year, when The Borneo Post contacted him yesterday.

When asked why, he replied: “Because MAS (Malaysia Airlines) protested. Only MASwings can do it.”

The Borneo Post’s sister newspaper See Hua Daily News Sabah reported yesterday that AirAsia was stopping the Sibu-KK direct flight operations because it had received a directive from the government last week.

The report quoted a spokesperson from AirAsia’s head office in Kuala Lumpur as saying that the said route was listed as a rural route and only one airline can provide the services.

The spokesperson said under such circumstances, the airline had no alternative but to follow the directive and stop flying the route from Oct 25.

“However, AirAsia is working hard to retain the route. As for those clients who have made their bookings to fly from Oct 25, we will be refunding the money accordingly,” the spokesperson said.

AirAsia flies from Sibu to Kota Kinabalu daily, using the Airbus A380 which has a capacity of 180 passengers.

According to a source here, since AirAsia started operating the Sibu-KK route in April this year, the demand had been very good with good passenger load for each flight.

AirAsia media relations executive Nazatul Mokhtar told The Borneo Post yesterday that the airline would be issuing a press statement soon to explain what was happening.

Meanwhile, people in Sibu and Kota Kinabalu were taken aback by AirAsia’s decision to cancel the Sibu-Kota Kinabalu sector.

They demanded to know the real issues behind the decision as they could see no reason for the cancellation since the daily flight between the two destinations was almost always full.

Deputy Transport Minister Datuk Robert Lau when contacted by telephone yesterday said he had not gone into details of the cancellation.

“I’ll have to find out first before I can comment,” he said from Kuala Lumpur.

Prominent local travel agent Robert Tan agreed that there could be certain “unknown reasons” that prompted the airline to make the rather abrupt decision.

But as it now stands, AirAsia has been stopped from flying to Seoul and Sydney purportedly for failing to pay landing fees to Malaysia Airports Berhad (MAB).

If that is the reason that AirAsia is stopped from flying the Sibu-KK sector, all right-minded people will surely like to know why the airline is allowed to fly to other destinations in the country.

There are more questions than answers to the cancellation, and most people think there must be other issues that caused it.

Tan, who is the managing director of Equatorial Tours and Travel Sdn Bhd, said if AirAsia was indeed running into heavy arrears of landing fees, then the airline should be assisted like by giving it a grace period to pay up, or the convenience of payment by instalments.

He said such arrangements were nothing unusual as banks everywhere were giving private companies this sort of financial convenience.

He also urged the state government to come to the airline’s rescue, saying the cancellation of the Sibu-Kota Kinabalu sector was unfair particularly to Sibu, especially at this time when Sibu people were ‘celebrating’ the ‘Visit Sibu Year’.

“Kota Kinabalu is the second biggest hub or transit point after Kuala Lumpur for flying from Malaysia to the outside world like Seoul, Manila, Jakarta, HongKong and Macau,” he noted, adding Kota Kinabalu was also the most important and cheapest stopover.

Tan felt that the decision to give up the Sibu-Kota Kinabalu route had come abruptly.

“I would say AirAsia should give the people a six-month notice,” he added.

To the travel agents, the cancellation of the Sibu-Kota Kinabalu sector is a piece of good news.

Explained Tan: “It is on-line booking for AirAsia flights. We get nothing. But passengers of MASwings come to us for the tickets. To us, ticketing agents, it’s like seeing light at the end of the tunnel now.”

He said regular Sibu-Kota Kinabalu passengers could find solace in MASwings which flies four daily flights between Sibu and Kota Kinabalu.

A bit costlier, but the capacity was there - two Fokker flights and two AT7 flights, he said.

MASwings fare for the Sibu-Kota Kinabalu flight can go as low as RM247 and as high as RM285.

However, Tan said the fare might be lower if the tickets were booked earlier.

AirAsia station manager Jackson Lau said the lowest AirAsia ticket could fetch was about RM100 and the highest, RM170.

Asked about the refund to customers who have bought the tickets for flying after Oct 25, Lau said it would take about two to three weeks to get the refund done.

He said the passenger loads for the Sibu-Kota Kinabalu sector had been good, and it was up to the management to decide whether or not - and when - to resume the cancelled sector.

A random survey of passengers’ views showed that the cancellation of the Sibu-Kota Kinabalu sector was generally felt as unfair to the people here.

Yap Hoi Liong, for one, said the government should immediately react to it to ensure Sibu folk could still fly between Sibu and Sabah at affordable fares.

He noted that the flights had always been full which showed that the demand was there. Yap, a special assistant to Bukit Assek assemblyman Wong Ho Leng, urged the government to put the interest of the people foremost when looking at the issue.

AirAsia flies from Sibu to Kota Kinabalu daily, using the Airbus A380 which has a capacity of 180 passengers.
First A380 in AK's fleet! :lol: :lol: :lol:

Heh... wartawan Malaysia suka buat citer dongeng..

^^
A380 pun boleh lebih 180 pax. silap ni a320 lah

When i opened airasia website 2 days ago, I saw they were contructing the UAE site..

Seems Abu Dhabi flights to start very soon.....

typo tu

^^
A380 pun boleh lebih 180 pax. silap ni a320 lah

Probably all first class?? hahahahah:lol:

yeah in any case, i'm not pointing the fault at nazrey but it's just..... :lol:

WOW A380 flies a short flight between Sibu and KK !!!!!! AirAsia Boleh ahhaha!


Abu Dhabi is new Mideast hub for AirAsia's long-haul carrier

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

AirAsia jangka raih hasil RM601 juta
4 Ogos 2009

KUALA LUMPUR 3 Ogos - AirAsia Bhd. (AirAsia) dijangka meningkatkan hasil sehingga RM601.4 juta daripada cadangan pelaksanaan penempatan persendirian sebanyak 20 peratus daripada sahamnya.

AirAsia dalam kenyataan kepada Bursa Malaysia berkata, hasil tersebut akan digunakan untuk membayar semula sebahagian pinjaman syarikat penerbangan tambang murah itu, membiayai modal kerja dan perbelanjaan berkaitan dengan penempatan persendirian itu.

Menurut kenyataan itu, ia juga akan membolehkan syarikat mengukuhkan penyata kewangan dan meningkatkan fleksibiliti pembiayaan.

AirAsia juga merancang menerbitkan sehingga 481.1 juta saham pada suku keempat tahun ini.

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

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

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

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

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

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

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

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

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

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

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

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

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

AirAsia placement share price not yet fixed
Written by Joseph Chin
Tuesday, 04 August 2009 13:36

KUALA LUMPUR: CIMB Investment Bank Bhd clarified on Aug 4 the issue price of AIRASIA BHD [ AIRASIA 1.460 -0.080 (-5.195%) ]’s placement shares will be fixed at a date to be determined later by way of bookbuilding exercise.


In an announcement to Bursa Malaysia at the midday break, CIMB Investment Bank said the bookbuilding would be undertaken by placement agents appointed/to be appointed by the company, after it had received the approval from Bursa Malaysia Securities Bhd and shareholders of AirAsia.


“As such, the issue price of the placement shares has not yet been fixed,” it said.


For illustrative purpose only, based on the five-day weighted average market price of AirAsia shares of RM1.46 (up to and including Aug 3), the proposed private placement would raise gross proceeds of up to RM702.47 million.


CIMB Investment Bank said the gross proceeds would be subject to change at the price fixing date to be determined later.



AirAsia share price fell seven sen to RM1.47.

AirAsia down on concerns over diluted earnings
By LEONG HUNG YEE


PETALING JAYA: AirAsia Bhd shares, which have been climbing since early last month, took a tumble after the budget carrier announced plans to sell 481.14 million new shares to pare down its debt.

AirAsia was among the day’s top losers, shedding 9 sen, or 5.84%, to RM1.45, on volume of 9.5 million shares.

The counter hit a 12-month high of RM1.57 on Monday.

An analyst said the price drop was due to the private placement announcement as the exercise would dilute AirAsia’s earnings.

In a filing with Bursa Malaysia on Monday, the company proposed a private placement of up to 481.14 million new 10 sen shares, which could potentially raise gross proceeds of up to RM601.43mil.

The proceeds will help bolster its cash reserves to the targeted RM1bil.

The placement will reduce the airline’s net gearing from 3.71 times to 2.56 times based on its unaudited accounts as at March 31.

Chief executive officer Datuk Seri Tony Fernandes was quoted by Bloomberg as saying the proceeds would be used in part to repay loans taken to help pay for as many as 175 new Airbus SAS planes as the airline added routes to China and India.

ECM Libra Investment Research said the proposed exercise would enlarge the budget carrier’s outstanding share base up to 2.88 billion shares and have a dilutive effect on earnings.

“As a result of the enlarged share base, on a maximum case scenario, our financial year ending Dec 31 (FY09) earnings per share (EPS) would decrease by 17.8% to 20.7 sen from 25.2 sen.

“Our EPS estimates for FY10 and FY11 would also be reduced by a similar quantum to 21.7 sen and 25.8 sen accordingly,” the research house said.

ECM Libra said AirAsia’s gearing would also be “reduced significantly” as a result of the proposed exercise.

It said the airline’s net gearing may decrease to 2.5 times from 3.71 times, representing a significant 32.6% drop.

“We are optimistic of this proposed exercise and opine that the 17.8% dilution in EPS would be offset by the 30.9% decrease in net gearing,” it added.

Meanwhile, CIMB Investment Bank Bhd, the adviser and placement agent for the exercise, clarified yesterday that the issue price of AirAsia’s placement shares would be fixed at a date to be determined later by way of book-building exercise.

In a statement to Bursa Malaysia, CIMB Investment said the book-building exercise would be undertaken by placement agents appointed or to be appointed by the company after it had received approvals from the stock exchange and shareholders.

“As such, the issue price of the placement shares has not yet been fixed,” it said.

For illustrative purpose only, based on the five-day weighted average market price of AirAsia shares of RM1.46 (up to and including Aug 3), the proposed private placement would raise gross proceeds of up to RM702.47mil.

CIMB Investment said the gross proceeds would be subject to change at the price-fixing date to be determined later.

What crisis? Budget carriers thrive amid gloom
Updated: Wednesday August 5, 2009 MYT 4:03:33 PM

KUALA LUMPUR: Budget airlines have found a silver lining in the global recession.

As travelers pinch pennies and opt for cheaper alternatives, AirAsia, Europe's Ryanair and other low-cost carriers are adding routes and buying new planes to grab a larger slice of global aviation at the expense of their more established rivals.

Major players such as British Airways and Hong Kong's Cathay Pacific Airways have reported full year losses for the first time in years despite cutting costs and flights to cope with a downturn in premium air travel.

Full service carriers, which once completely dominated the skies, are banking on an economic recovery to restore their fortunes but they may find it tough to return to the growth levels they enjoyed before the crisis.

"Full-service airlines have a bit of conundrum on their hands," said Derek Sadubin of the Sydney-based Center of Asia Pacific Aviation.

"We think low-cost carriers will become so much more entrenched in airports and corporate travel that it will be difficult for them to claw their business back" when the economy recovers, he said.

To be sure, all airlines have struggled as oil prices soared in the last two years.

Oil prices have since tumbled and despite a rally early this year, are still half the level of a year earlier.

But major industrialized economies continue to contract and economic conditions are likely to remain tough even when a recovery is under way.

The International Air Travel Association in June predicted airline losses worldwide to swell to US$9 billion this year, nearly double its previous forecast.

Full service carriers are the worst hit as the downturn has hammered business and first-class travel, which make up a small percentage of seats but account for up to 40 percent of their revenues.

Their smaller, no-frills rivals are weathering the recession better with a low-cost model that relies on high passenger volumes, stripping out costs through strategies such as taking the cheapest landing slots at airports and turning full service features like meals and check-in baggage into profit-making extras.

In Asia, budget aviation has seen exponential growth since the start of the decade and now has a 16 percent market share, Sadubin said.

The market share of low cost carriers could cross the 20 percent mark in the next one to two years, he said, as they open up new routes across the region and give travelers an option to fly at a fraction of the cost charged by full service airlines.

Malaysian-based AirAsia, the biggest low-cost carrier in the region, posted a record profit of 203.2 million ringgit ($56.4 million) for the quarter through March, up 26 percent from a year earlier.

Passengers soared 21 percent to 3.15 million during the period while falling at regular airlines.

It has ordered new planes, made its debut in Europe with flights to London in March and is eyeing plans to enter the U.S. market.

"We are in the McDonald's, Wal Mart category. Business is booming as people are looking for value," AirAsia Chief Executive Tony Fernandes told The Associated Press in a recent interview.

AirAsia's success has generated rivals, the best known of which are Singapore-based Tiger Airways and Qantas Airways-owned Jetstar.

Tiger, which is 49 percent owned by Singapore Airlines, is rapidly expanding and has a total 56 new aircraft on order for delivery through to 2016.

Tiger expects business travel to account for 15 percent of its total traffic by March 2010, more than triple from current levels.

Budget aviation has put down even stronger roots in the U.S. and Europe, with about a one-third market share in both regions, analysts said.

In Europe, Irish discount airline Ryanair remained on an expansionary course and forecasts a net profit of up to 250 million euros ($350 million) for its 2010 fiscal year.

It is eyeing plans to order up to 300 more aircraft in a deal that would make the Irish carrier more than double the size of British Airways.

In the cash-rich Middle East, analysts said budget aviation penetration is still low at less than five percent but new carriers have sprung up in recent months.

FlyDubai, based in the United Arab Emirates, was launched last month and has unveiled ambitious expansion plans after ordering 50 Boeing 737 aircraft.

The intense competition from budget carriers has changed the rules of the game for some major airlines.

Many full service carriers are regularly churning up promotional offers - with tickets at a discount of up to 80 percent - in an effort to protect their market share.

Others like India's Jet Airways, Korean Air, and Malaysian Airlines have set up low-cost offshoots, relying on a two-brand strategy to cushion earnings.

Some carriers have taken more drastic steps to focus on lower-fare volume business.

British Airways has announced it won't configure any new planes to offer first-class cabins.

Qantas has also scrapped first-class service on several long-haul routes and is considering reducing the 72 business seats in its Airbus A380 superjumbo jets.

But Singapore Airlines, one of Asia's top carriers, remains confident of a recovery in the premium market.

It has cut fares and capacity this year but said it would not crop the 60 business seats in its A380 planes.

"It's a cyclical business and positive growth will return. We are not going to fundamentally change our business focus overnight just because of the downturn," said spokesman Nicholas Ionides. - AP

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

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

At present, it flies seven times.

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

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

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

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

The service will be operated by Thai AirAsia.

AirAsia X - Oakland Riders Special Livery
by Mir ZafriZ
http://www.flickr.com/photos/20888224@N02/3767963722/

http://farm4.static.flickr.com/3565/3767963722_b4c9d21a94_o.jpg

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

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

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

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

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

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

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

AirAsia defers delivery of 8 planes from 2010 to 2014
Written by The Edge Financial Daily
Thursday, 06 August 2009 20:42

KUALA LUMPUR: AIRASIA BHD [ AIRASIA 1.420 0.040 (2.899%) ] has deferred the delivery of eight Airbus A320 from the year 2010 to 2014 as it foresees infrastructural constraints with the current airport facilities and until the new low-cost carrier terminal is constructed.

The low-cost carrier said on Aug 6 that with the deferment, the original delivery of 24 aircraft in 2010 would be reduced to 16 aircraft.

"Subject to notification not later than Oct 31, 2009, AirAsia also has the right to revise the delivery schedule of another eight aircraft in 2011 to 2014. If such right is exercised, the original delivery of 23 aircraft in 2011 will be reduced to another 15," it said.

Under a purchase agreement signed on March 11, 2005, AirAsia had agreed to a firm order of 175 Airbus A320 aircraft which schedule of delivery runs from December 2005 to October 2014.

"The present infrastructure at the low cost terminal is not able to accommodate AirAsia’s fleet expansion in the number of aircraft originally scheduled to be delivered in 2010 and 2011 under the purchase agreement.

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

AirAsia wants to continue operating KK-Sibu route


KOTA KINABALU: AirAsia will appeal to the Transport Ministry to allow it to continue operating the Kota Kinabalu-Sibu sector after Oct 25.

Group chief executive officer Datuk Seri Tony Fernandes said the airline had been told to stop the service as it was deemed to be a rural route. Rural air services are operated exclusively by MASWings.

Fernandes said rural routes were subsidised by the Government, adding that since commercial airlines could operate the route, there was no necessity for the fare subsidy.

“We are operating daily flights on the route and there has been good response,” he said, adding that AirAsia had been servicing the route since April.

On the issue of AirAsia moving from the Kota Kinabalu low-cost terminal to the international terminal when upgrading works were completed, Fernandes said that the budget airline hoped to stay put as it would keep costs low.

He said one reason why AirAsia was able to bring a large number of tourists to the state was due to its cheaper costs, adding that the airline would discuss with the ministry about remaining at the low-cost terminal.

Fernandes also said that he was studying the possibility of bringing in AirAsia X to ply the Kota Kinabalu-Seoul route, fly to Tokyo and also several more cities in Australia.

AirAsia wants to continue operating KK-Sibu route


KOTA KINABALU: AirAsia will appeal to the Transport Ministry to allow it to continue operating the Kota Kinabalu-Sibu sector after Oct 25.

Group chief executive officer Datuk Seri Tony Fernandes said the airline had been told to stop the service as it was deemed to be a rural route. Rural air services are operated exclusively by MASWings.

Fernandes said rural routes were subsidised by the Government, adding that since commercial airlines could operate the route, there was no necessity for the fare subsidy.

“We are operating daily flights on the route and there has been good response,” he said, adding that AirAsia had been servicing the route since April.

On the issue of AirAsia moving from the Kota Kinabalu low-cost terminal to the international terminal when upgrading works were completed, Fernandes said that the budget airline hoped to stay put as it would keep costs low.

He said one reason why AirAsia was able to bring a large number of tourists to the state was due to its cheaper costs, adding that the airline would discuss with the ministry about remaining at the low-cost terminal.

Fernandes also said that he was studying the possibility of bringing in AirAsia X to ply the Kota Kinabalu-Seoul route, fly to Tokyo and also several more cities in Australia.

AirAsia buat rayuan kekalkan hak terbang ke Sibu


KOTA KINABALU: Syarikat penerbangan tambang murah, AirAsia akan mengemukakan rayuan kepada Kementerian Pengangkutan untuk mengekalkan hak penerbangan dari bandar raya ini ke Sibu yang akan ditamatkan pada 25 Oktober ini.

Pegawai Eksekutif Kumpulannya, Datuk Tony Fernandez, berkata syarikat berkenaan memohon hak penerbangan itu dikekalkan bagi membantu anggota masyarakat, terutama yang berpendapatan sederhana mengunjungi Sibu dengan kadar tambang murah.

Beliau berkata, syarikat itu menyediakan penerbangan harian bagi laluan berkenaan sejak April lalu dan menerima penumpang pada kadar 80 peratus bagi setiap penerbangan.


Beliau mendakwa, Kementerian Pengangkutan akan menamatkan perkhidmatan itu berdasarkan aduan MASwings yang mahukan laluan berkenaan diberikan kepada syarikat berkaitan kerajaan (GLC) berkenaan.

"MASwings mendakwa mereka mempunyai hak bagi laluan luar bandar dan kawasan terpencil di Sabah dan Sarawak. Saya terkejut apabila mendengar MASwings mempunyai hak sedemikian.

"Kami tidak mempunyai pilihan selain terpaksa membatalkan tempahan penerbangan penumpang dan memulangkan kembali wang mereka," katanya pada sidang media di Terminal 2 Lapangan Terbang Antarabangsa Kota Kinabalu (KKIA), di sini semalam.

Beliau berkata, AirAsia menyediakan penerbangan berkenaan berdasarkan keprihatinannya terhadap keperluan anggota masyarakat yang lebih gemar menggunakan penerbangan murah.

Setakat ini, katanya, selain penerbangan ke Sibu, AirAsia turut menyediakan penerbangan dari KKIA ke 51 destinasi lain sama ada domestik atau antarabangsa.

"Saya lihat lapangan terbang ini semakin sesak dengan penumpang. Malam tadi (kelmarin) saya tidak berjaya mendapatkan bilik di hotel di bandar raya ini. Semakin ramai pelancong datang ke sini, terutama dengan menggunakan pesawat kami.

"Ketika kami mula memperkenalkan penerbangan di bandar raya ini ke pelbagai destinasi, hanya ada 200,000 penumpang setahun tetapi tahun ini kami menjangka ia meningkat kepada 24 juta," katanya.

MASwings adalah anak syarikat Penerbangan Malaysia (MAS) yang menyediakan penerbangan dari bandar raya ini ke Tawau, Sandakan, Labuan dan Lahad Datu di negeri ini.

Selain itu, ia turut menyediakan penerbangan dari Kuching ke Sibu, Bintulu, Miri dan Mulu di Sarawak.

http://www.airasia.com/nl/images/2009/090807-main-rd.gif

AirAsia boss seeks more budget terminals
Sunday August 9, 2009

http://thestar.com.my/archives/2009/8/9/nation/n_13drsurin.jpg

Warm reception: Asean Secretary-General Dr Surin Pitsuwan (right) arriving
in Sepang with other guests on Saturday. The group arrived from Jakarta
onboard the special AirAsia flight. — AZMAN GHANI / The Star

SEPANG: More Asean countries need to provide low-cost carrier terminals and reduce other costs to enable budget airlines to thrive.

AirAsia Group chief executive officer Datuk Seri Tony Fernandez said regional air travel showed great growth potential.

He said only Malaysia and Indonesia now offered low-cost carrier terminals in a region which has a population of 600 million.

“Airlines in the United States can have up to 500 planes plying various routes and they have only 300 million people, so the Asean region not only offers a huge opportunity for AirAsia to expand but I believe there is enough room for other low cost carriers to come in and compete too,” he told a press conference upon arriving in Jakarta on board a flight chartered for the Asean 42nd Birthday celebrations.

The celebration is being held in three cities and the chartered flight will take AirAsia and Asean officials from Jakarta to Kuala Lumpur and then on to Bangkok.

Ong to study MASWings’ rights over KK-Sibu route


KOTA KINABALU: The Transport Ministry will study the details of an agreement with MASWings on its exclusive rights on rural air service to ply between Kota Kinabalu and Sibu.

Transport Minister Datuk Seri Ong Tee Keat said it had to study the agreement carefully before deciding whether to allow AirAsia to continue operating its Kota Kinabalu-Sibu route after Oct 25.

Ong said Kota Kinabalu Foo Chow Association committee members and Sibu Chinese Chambers of Commerce representatives had raised the matter of stopping AirAsia flights in the sector at a meeting with him here on Saturday.

“I will be looking into the delicate points contained in the agreement, not just for one sector. The people’s voice must be given due attention.

“I hope to come out with some subsequent announcements,” he added.

It is understood that MASWings, which operates the rural air service, has exclusive rights to the Kota Kinabalu-Sibu sector and has protested over AirAsia providing flights since May this year.

AirAsia will cease to operate the route from Oct 25.

On whether MCA had decided on its candidate for a vacant senator’s post, Ong said he had received several recommendations, including from Sabah MCA chairman Datuk Edward Khoo.

However, he said any decision would be made by the MCA central committee.

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



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

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

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

AirAsia gets 'neutral' rating at OSK
Published: 2009/08/11




OSK Research has recommended a "neutral" stock rating on budget carrier AirAsia with a target price of RM1.48.

The research outfit also expects AirAsia's upcoming quarterly financial results scheduled for release tomorrow may be weaker than the preceding quarter following the escalating fuel costs.

OSK noted that AirAsia has scrapped a plan to partner Vietnam Shipbuilding Industry Group (Vinashin) to set up a budget carrier in Vietnam.

The latest development is likely to bode well for market sentiment, OSK said.





AirAsia terminated a letter of intent (LOI) signed by both parties almost two years ago. The company has through a letter dated August 10, “09 informed Vinashin that the LOI is now of no further effect save for confidentiality provisions which the parties had agreed to upon signing the LOI."

MAS Denies Forcing AirAsia Out Of Kota Kinabalu-Sibu Route


KUALA LUMPUR, Aug 11 (Bernama) -- Malaysia Airlines (MAS) has denied forcing AirAsia out of the Kota Kinabalu-Sibu route, saying that it is following the rural air service (RAS) agreement.

"The Kota Kinabalu-Sibu route is exclusive to the RAS operator because AirAsia requested for route exclusivity when its subsidiary FAX operated the RAS," the airline said in a statement.

MASwings managing director Mohd Salleh Tabrani said AirAsia demanded exclusive rights to almost all of the air routes within and intra Sabah and Sarawak, including the Kota Kinabalu-Sibu route, during the domestic rationalisation.

"Under the domestic rationalisation exercise in March 2006, Malaysia Airlines was asked to give up the RAS operations and pass them to AirAsia. This included the right to offer services between Kota Kinabalu and Sibu," he said.

"Only AirAsia's subsidiary FAX had the exclusive rights to ply these routes. As such, there is absolutely no truth to AirAsia's allegation that we forced them out of the Kota Kinabalu-Sibu route," Mohd Salleh said.

"We are merely following the RAS agreement that is in place. For AirAsia to fly on the route is a breach of the agreement, the same privileges enjoyed by FAX," he said.

The RAS agreement covers exclusivity of the routes in Sabah and Sarawak whereby the airline operating the routes is given the first right of refusal in the event that the government wants to open up additional routes in Sabah and Sarawak.

"AirAsia was given the choice to operate in 2006, got more subsidy than MASwings for the same scope of air services, quickly surrendered the RAS back to MAS when they realised how unprofitable the routes were and have now decided they want to cherry pick and operate only on profitable routes," Mohd Salleh said.

"This is not acceptable as taxpayers' money is involved. We cross-subsidise profitable routes such as Kota Kinabalu-Sibu with other unprofitable routes. By doing this, we save the taxpayers' money as MASwings' profit and loss is borne by the government," he said.

In the event that changes are made to the RAS agreement, MASwings would need to review the commitment it has given to the government, Mohd Salleh said, adding that the current commitment is an annual subsidy of below 50 percent of what was paid to FAX.

"In the event of the removal of selected routes from the RAS agreement, a higher subsidy may have to be paid to MASwings," he said.

AirAsia, through FAX, took over RAS from MAS in 2006. Just 13 months later, MAS was asked to take back the RAS operations and has since been operating these routes under MASwings.

Initially, RAS in the context of MAS was designated for air services using the Twin Otter aircraft. When the government gave RAS to AirAsia, it was with an expanded scope and covers all "propeller operated services".

The separation was done on Aug 1, 2006. As a result, MAS had to retrench hundreds of long-serving staff in Sabah and Sarawak under a mutual separation scheme.

MAS said that it also handed over seven Fokker 50 and five Twin Otter aircraft to FAX in good flying conditions.

"When MASwings resumed the RAS operations on October 1, 2007, 50 percent of the seven Fokker 50 and six Twin Otter aircraft were not airworthy," Mohd Salleh said.

"As a result, we incurred about RM36 million to restore these aircraft back to operational conditions," he said.

-- BERNAMA

MAS Denies Forcing AirAsia Out Of Kota Kinabalu-Sibu Route


KUALA LUMPUR, Aug 11 (Bernama) -- Malaysia Airlines (MAS) has denied forcing AirAsia out of the Kota Kinabalu-Sibu route, saying that it is following the rural air service (RAS) agreement.

"The Kota Kinabalu-Sibu route is exclusive to the RAS operator because AirAsia requested for route exclusivity when its subsidiary FAX operated the RAS," the airline said in a statement.

MASwings managing director Mohd Salleh Tabrani said AirAsia demanded exclusive rights to almost all of the air routes within and intra Sabah and Sarawak, including the Kota Kinabalu-Sibu route, during the domestic rationalisation.

"Under the domestic rationalisation exercise in March 2006, Malaysia Airlines was asked to give up the RAS operations and pass them to AirAsia. This included the right to offer services between Kota Kinabalu and Sibu," he said.

"Only AirAsia's subsidiary FAX had the exclusive rights to ply these routes. As such, there is absolutely no truth to AirAsia's allegation that we forced them out of the Kota Kinabalu-Sibu route," Mohd Salleh said.

"We are merely following the RAS agreement that is in place. For AirAsia to fly on the route is a breach of the agreement, the same privileges enjoyed by FAX," he said.

The RAS agreement covers exclusivity of the routes in Sabah and Sarawak whereby the airline operating the routes is given the first right of refusal in the event that the government wants to open up additional routes in Sabah and Sarawak.

"AirAsia was given the choice to operate in 2006, got more subsidy than MASwings for the same scope of air services, quickly surrendered the RAS back to MAS when they realised how unprofitable the routes were and have now decided they want to cherry pick and operate only on profitable routes," Mohd Salleh said.

"This is not acceptable as taxpayers' money is involved. We cross-subsidise profitable routes such as Kota Kinabalu-Sibu with other unprofitable routes. By doing this, we save the taxpayers' money as MASwings' profit and loss is borne by the government," he said.

In the event that changes are made to the RAS agreement, MASwings would need to review the commitment it has given to the government, Mohd Salleh said, adding that the current commitment is an annual subsidy of below 50 percent of what was paid to FAX.

"In the event of the removal of selected routes from the RAS agreement, a higher subsidy may have to be paid to MASwings," he said.

AirAsia, through FAX, took over RAS from MAS in 2006. Just 13 months later, MAS was asked to take back the RAS operations and has since been operating these routes under MASwings.

Initially, RAS in the context of MAS was designated for air services using the Twin Otter aircraft. When the government gave RAS to AirAsia, it was with an expanded scope and covers all "propeller operated services".

The separation was done on Aug 1, 2006. As a result, MAS had to retrench hundreds of long-serving staff in Sabah and Sarawak under a mutual separation scheme.

MAS said that it also handed over seven Fokker 50 and five Twin Otter aircraft to FAX in good flying conditions.

"When MASwings resumed the RAS operations on October 1, 2007, 50 percent of the seven Fokker 50 and six Twin Otter aircraft were not airworthy," Mohd Salleh said.

"As a result, we incurred about RM36 million to restore these aircraft back to operational conditions," he said.

-- BERNAMA

Unions Against AirAsia's Request To Review RAS Routes


KOTA KINABALU, Aug 11 (Bernama) -- The Air Transport Workers Union of Sabah (ATWUS) and the Air Transport Workers Union of Sarawak (AWUS) have objected to the recent request by AirAsia to review the rural air service (RAS) routes.

According to a joint statement issued by the two unions here on Tuesday, the Transport Ministry should not bend the existing agreement to accommodate AirAsia's demand.

ATWUS president Mohd Alfreedo Mohd Yahya said AirAsia's request to operate the Kuala Kinabalu-Sibu route may affect the business of MASwings and also indirectly the staff as well as the public.

"Allowing AirAsia to fly this sector would also mean the government subsidising the profit of AirAsia because MASwings would not be able to optimise its seat capacity," he said.

Mohd Alfreedo said AirAsia, through its subsidiary Fly Asian Expres (FAX), had taken over the RAS from Malaysia Airlines (MAS) following the route rationalisation exercise announced in 2006.

But less than a year later, FAX handed back the service and MAS subsidiary MASwings took over and has been servicing the routes since then, he said.

--BERNAMA

AirAsia lancarJualan Mega

KUALA LUMPUR 11 Ogos - Syarikat penerbangan tambang murah Air Asia melancarkan Kempen 'Jualan Mega' yang menawarkan sehingga tiga juta tempat duduk bagi penerbangan di dalam dan luar negara.

Ketua Komersial Serantau AirAsia, Kathleen Tan berkata, kesemua penerbangan boleh ditempah di Kuala Lumpur, Johor Bahru, Pulau Pinang, Kota Kinabalu, Bangkok, Jakarta, Bali dan Bandung.

''Promosi ini menjanjikan penjimatan antara 50 peratus hingga 70 peratus bagi penerbangan ke destinasi di dalam dan luar negara.

''Paling menarik adalah Air Asia juga menawarkan promosi ini ke destinasi baru seperti Colombo, Taipei dan London," kata Tan dalam kenyataannya di sini hari ini.

Tempahan dibuka bermula semalam hingga 16 Ogos ini bagi perkhidmatan domestik dan tempahan untuk laluan antarabangsa adalah pada 12 hingga 16 Ogos ini.

Tawaran tersebut adalah untuk tempoh perjalanan pada 11 Januari hingga 31 Julai 2010.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

AirAsia profit soars on cheap travel demand
Thursday August 13 2009

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

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

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

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

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

Abu Dhabi, Chengdu and possibly Kochi is coming soon....

AirAsia profit surges on high passenger volume
By YEOW POOI LING

http://biz.thestar.com.my/archives/2009/8/13/business/b_airasia.jpg

PETALING JAYA: Low-fare carrier AirAsia Bhd posted a net profit of RM139.2mil in the second quarter ended June 30 compared with RM9.4mil in the previous corresponding period.

This was achieved on the back of higher passenger volume, better contribution from ancillary income as well as write-back on certain over provisions made previously.

In a filing with Bursa Malaysia yesterday, the airline said turnover in the same quarter rose 8% to RM657.4mil against RM608.4mil a year ago while earnings per share improved to 5.9 sen from 0.4 sen previously.

AirAsia’s core operating profit was a whopping 328% jump to RM128mil versus RM30mil in the second quarter last year. Core operating profit margins stood at 19.5% for the period, compared with 4.9% achieved in 2008.

The improvement was attributable to stronger ringgit against the US dollar, which led to a translation gain of RM12mil.

This, however, was partly offset by the non-recurring item related to the cost of unwinding derivative structures and disposal of assets during the quarter, which amounted to over RM6mil.

Passenger volume surged 24% in the second quarter from the year before, although average fare was lower by 19% at RM160 versus RM198 in the same period last year. Load factor was constant at 75% as a year ago.

The carrier said its strategy to continuously conduct aggressive promotions, remove administrative fees from ticket prices and enhance customer service had driven the strong traffic growth.

“The group continues to expand market share as more people switch from full-service carriers and fly with AirAsia,” it said.

AirAsia said based on the current forward booking trend, the underlying passenger demand for the third quarter was still positive.

“The group is purchasing fuel on the spot market. All other cost items are expected to remain low due to efficiency initiatives implemented and benefits of economies of scale,” it said.

It cautioned that the local currency had weakened against the greenback since end-June and if this were to continue, it might impact the company negatively.

While AirAsia remained optimistic of the prospect for the third quarter, it noted that the period was also seasonally weakest due to the fasting month.

Elsewhere, Thailand’s outlook was positive for the third quarter, with the number of passenger growth satisfactory and the operation had continued to gain market share.

AirAsia’s Thai operations enjoyed the cost benefits of the increased number of Airbus A320 planes while in Indonesia, the outlook was positive with strong passenger growth.

“The Bali-to-Perth route, which was launched in July, is enjoying strong support and the frequency has been increased from once daily to twice daily,” AirAsia said.

An aviation analyst said the results were above his core net profit forecast, mainly due to better load factor and higher ancillary income.

In a separate announcement, CIMB Investment Bank, on behalf of AirAsia, said the exchange had approved the listing of 481.1 million AirAsia shares, which arose from the proposed private placement, subject to compliance of certain conditions and regulations.

Travel ‘dirt cheap’ on AirAsia with latest sale


PETALING JAYA: Three million passengers can now travel for as low as RM9 for domestic flights and RM49 for international destinations, with the launch of AirAsia’s “Big Sale” promotion yesterday.

AirAsia Group commercial regional head Kathleen Tan said the sale offered greater value than its previous “Free Seats” promotion.

“Guests can now save on administration fees and fuel surcharges. This means they only have to pay for a low fare and the relevant airport tax,” she said in a press release.

She said guests would enjoy savings of 50% to 70% during the sale because of the abolished charges, adding that while guests paid RM53.50 for a flight to Penang during the “Free Seats” offer, the flight would cost only RM9 for one-way travel now.

International destinations like Bali now costs RM69 when it used to cost RM142.50, while a flight to Gold Coast, Australia, costs RM149 instead of RM354.

“We also encourage our guests to purchase food, baggage (allowance), and hot seats through airasia.com to enjoy more discounts and savings,” she said, adding that early booking was encouraged as the promotional seats would be snapped up quickly.

The booking period for domestic and international flights is until Aug 16.

Seats booked will be for the travel period of Jan 11 to July 31, 2010 and bookings can be made online at www.airasia.com and mobile.airasia.com.

AirAsia posts better-than-expected 2Q results
Written by Fong Min Hun
Thursday, 13 August 2009 11:43

KUALA LUMPUR: AIRASIA BHD has beaten expectations in its second-quarter (2Q) results, posting a net profit of RM139.18 million in an operating environment where many airlines are in the red.

Its chief executive officer Datuk Seri Tony Fernandes anticipates even stronger earnings in the current third quarter ending Sept 30, in view of the robust sales in July and August.

Yesterday, the low-cost carrier announced its 2Q net profit, which was significantly higher than the RM9.42 million in the previous corresponding period. Its core operating profit soared to RM128.42 million, up 328% year-on-year (y-o-y) from RM29.98 million.

Fernandes said via teleconference that the performance actually exceeded his own expectation.

“I am very pleased with the results. In the first half (of 2009), we are one of the few airlines around the world that posted true operational profit,” he added.

AirAsia’s operational profit rose to RM399.96 million, up more than twice the RM154.47 million reported for the same period last year.

He added that the dramatic increase in its earnings was largely due to AirAsia’s strategy of cutting passenger fares, which were offset by higher volumes. Cost cutting such as the removal of administrative fees also helped, he noted.

Fernandes said that average passenger volume had grown 24% to 3.52 million passengers from 2.84 million y-o-y, while fares had come down by 19%. Its load factor remained unchanged at 75%.

Meanwhile, ancillary income had increased by 3% to account for about 14% of its profits. AirAsia’s margins, he added, were an industry-leading 21%.

“This shows that our strategy of lowering the price works,” Fernandes said, adding there had been no impact from its competitor’s sales campaign.

As for its operations overseas, AirAsia’s Thai operations managed to narrow losses to RM8.2 million. Indonesia AirAsia also reported a loss of RM21.8 million although it managed to grow its passenger load by 47%.

Fernandes said AirAsia’s overseas operations were poised to become an important contributor to the group’s bottom line, noting that the “tide has changed”. The delivery of new Airbuses to the two destinations would help to turn those businesses around, he added.

Commenting on the delivery of new aircraft, he said AirAsia might further defer delivery of another eight aircraft in 2011 if the proposed new LCCT terminal is not ready by then.

Due to the insufficient space at the current LCCT, the low-cost carrier has decided to postpone the delivery of eight aircraft next year.

Fernandes added that he expected most of the growth next year to come from Thailand and Indonesia. AirAsia is also developing its Penang hub to ease the congestion in Kuala Lumpur.

As to whether AirAsia would hedge its fuel given the present level of US$70 per barrel, Fernandes said: “No, there’s too much volatility.”

“We spoke with two major oil companies and they said that supply and demand does not match the current price. There’s so much volatility and we don’t want to play in that game yet.”

For the second quarter, AirAsia wrote back some RM18 million to RM20 million as banks released collaterals AirAsia had deposited as security against its hedges. The figure also included savings from lower handling fees charged by airports.

Breakfast in one Asean country, lunch in another and dinner in another the same day?
Friday reflections - By B.K. Sidhu



FANCY breakfast in Jakarta, lunch in Kuala Lumpur and dinner in Bangkok, all in one day?

To many, this tale of three cities is only imaginable in the movies.

To the rich and famous, it may seem fashionable to be seen hopping from one country to another.

In reality, this is possible with efficient and fast connectivity.

Of course, affordable fares help in the equation.

That was what the Asean Secretariat did last Saturday to mark 42 years of Asean’s establishment.

http://biz.thestar.com.my/archives/2009/8/14/business/p2-airasiai.JPG
AirAsia displaying the Asean spirit on its aircraft

It flew over 160 guests, many of them representatives and ambassadors of Asean countires, from Jakarta to KL and all ended up having dinner with Thai Prime Minister Abhisit Vejjajiva later in the evening in Bangkok.

As Abhisit said, Asean is not complete without close connectivity as it provides opportunities for trade, investment and jobs for the Asean people.

Connectivity makes Asean people feel closer.

Connectivity is even more important as Asean has an agenda to become a single community by 2015 like the European Union.

Air connectivity in this region is vast, but the emergence of low-cost carriers has made connectivity from small towns to major cities a reality.

Today, a child in Bandung or even Balik Papan can dream about going to London as he can see the plane landing and taking off in his hometown.

Asean secretary-general Surin Pitsuwan had only words of praise for AirAsia for flying its delegation across three cities so that all the ceremonies could take place on time including a cake-cutting ceremony and fashion show on air. Not a minute late.

All courtesy of AirAsia and the airline had even painted the Asean logo on the fuselage of the aircraft to signify the Asean spirit.

It must have cost the airline over RM2mil to take one plane off its commercial flights for the whole day with 18 of its crew members assisting all the passengers on air and ground in the three cities.

It was comfort and efficiency at its best.

But the same level of service was not experienced by the 140-odd passengers who had to wait more than 15 hours to depart Medan’s Polonia Airport for Jakarta on Sunday night.

These people had their own stories to tell as they did not get to work on time on Monday.

Of course, delays can be expected when you take a flight but to be delayed for 15 hours is something else.

What went wrong?

All around the world when a passenger pays for his seat, he expects to reach his desired destination at a specified time.

A one- or two-hour delay is bearable but 15 hours is as long as it takes to fly from KLIA to Europe.

Airlines should not take their passengers for granted.

Cheap fares should not mean having to wait hours for your flight.

The case in Medan may be an isolated one but carriers should strive to stick to their deadlines.

Connectivity is good, and connecting Asean all around is excellent, but service is equally important and keeping that promise on timely departures is even more crucial at a time when there are many reasonable offers in the market place.


B.K. SIDHU is deputy news editor. She is still hoping for the KL-Amritsar connectivity to become a reality.

Up close and personal
By CECILIA KOK

http://biz.thestar.com.my/archives/2009/8/15/business/sf_B_AZRAN.jpg
AZRAN Osman-Rani unabashedly confesses that he gets distracted and bored quite easily, which he has self diagnosed as ADD (attention deficit disorder)! It’s a mighty challenge, he admits, to focus on anything for long and he constantly needs to be occupied to keep him going. And by that, he means he persistently craves new challenges. Indefatigable, indeed.

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

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

“There is enough challenge here,” he says.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Azran considers himself to be an accessible and engaging boss.

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

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

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

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

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

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

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

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

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

Arabic site is just launched and it's "Saudiyah"? LOL . Not "al-Emarat" ?

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

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

Azran

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

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

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

“There is enough challenge here,” he says.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Azran considers himself to be an accessible and engaging boss.

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

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

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

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

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

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

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

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

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

New destinations from Saudi Arabia Hub:

Egypt
Jeddah
Dubai
Iran
Jordan

Also Chengdu coming soon!

^^ The hub will be AUH

I heard that KUL-AUH flights booking starts this Thursday ( from MalaysianWing forum ) :banana:

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

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

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

http://www.btimes.com.my/Current_News/BTIMES/articles/20090819175517/Article/index_html

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

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

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

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

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

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

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

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

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

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

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

AirAsia to lift ancillary income


It sees a 20% rise in two years from RM177mil

KUALA LUMPUR: AirAsia Bhd, which raked in RM177mil in ancillary income for financial year ended Dec 31 (FY08), aims to increase this figure by 20% in two years, says group chief executive officer Datuk Seri Tony Fernandes.

He said food and beverage (F&B) sales contributed RM30mil in FY08 and with the introduction of more new in-flight menus, the target was achievable.

“Average passenger spending on F&B currently is about RM3.25 and we are targeting to increase this to RM5 with the introduction of new menus such as Krispy Kreme doughnuts,” he said yesterday after the launch of “AirAsia Introduces Krispy Kreme Onboard”.


Datuk Seri Tony Fernandes ... ‘We are targeting to increase average passenger spending on F&B to RM5.’

AirAsia’s ancillary income in the first half year hit RM186mil with food sales contributing a major portion. Fernandes said the introduction of the doughnut was a first as no other airline had done it before and it would complement well other food offered on AirAsia flights.

“With the addition of Krispy= Kreme in our snack attack in-flight menu, we offer our guests another best-of-its-class product. We expect this new addition to contribute to our profit starting this quarter,” he said.

Berjaya Krispy Kreme Doughnuts Sdn Bhd director Datuk Francis Lee said it was excited to be exposed to this large market of AirAsia guests.

“Now AirAsia guests will be able to enjoy our premium quality doughnuts onboard. Like AirAsia, Krispy Kreme is a buzzword that millions recognise as synonymous to quality, affordability, easy accessibility and good times,” he said.

The company is the master franchisee for Krispy Kreme doughnuts in Malaysia.

Available from Sept 1 on all AirAsia flights, Krispy Kreme doughnuts will be offered at RM7 per pack of two.

Pendapatan AirAsia meningkat
25 Ogos 2009 Oleh CYNTHIA YEOH

http://www.utusan.com.my/pix/2009/0825/Utusan_Malaysia/Korporat/ko_02.1.jpg

TONY Fernandes (tiga dari kanan) bersama-sama Francis Lee (tiga dari kiri),
Robin Tan dan beberapa pramugari AirAsia menunjukkan donat Krispy Kreme
yang akan diperkenalkan dalam penerbangan AirAsia di Kuala Lumpur, semalam.

KUALA LUMPUR 24 Ogos – AirAsia Bhd. (AirAsia) mengunjurkan pendapatan sampingan meningkat sebanyak 20 peratus dalam tempoh dua tahun ini berbanding RM177 juta, tahun lalu menerusi pengenalan donat Krispy Kreme dalam penerbangannya.

Ketua Pegawai Eksekutifnya, Datuk Seri Tony Fernandes berkata, jualan makanan adalah penyumbang utama kepada pendapatan sampingan yang berjumlah RM186 juta bagi separuh pertama tahun ini.

Menurutnya, jumlah pendapatan sampingan yang mampu menjana RM30 setiap penumpang menyumbang kira-kira 50 peratus kepada perolehan syarikat penerbangan tambang murah itu.

“Kami menjangka jualan makanan dalam penerbangan akan meningkat kepada RM5 setiap penumpang, tahun ini mencecah jualan sebanyak RM30 juta daripada RM3.25 setiap penumpang yang direkodkan pada tahun lalu,” katanya.

Beliau berkata demikian selepas memeteraikan perjanjian dengan Berjaya Krispy Kreme Doughnuts yang diwakili oleh Pengarah Eksekutifnya, Datuk Francis Lee dan Pengarah Eksekutif Berjaya Corporation, Datuk Robin Tan untuk memperkenalkan donat Krispy Kreme dalam penerbangan AirAsia, di sini hari ini.

Fernandes berkata, usaha meningkatkan pertumbuhan dalam pendapatan sampingan adalah penting dan sebahagian dalam strategi bagi menangani kenaikan harga minyak.

“Kami mampu mewujudkan perolehan yang lebih stabil menerusi pendapatan (menjual makanan, insurans dan lain-lain),” jelasnya.

Beliau menjelaskan, AirAsia menawarkan produk yang diingini oleh penumpang dan yakin donat Krispy Kreme bakal menjadi kegemaran orang ramai dalam penerbangan.

“Donat boleh dimakan pada bila-bila masa atau sebagai pencuci mulut, pengenalannya tidak akan mengambil alih makanan sedia ada tetapi sebagai tambahan kepada menu,” tambahnya.

Katanya, AirAsia memilih untuk menjual donat Krispy Kreme dalam penerbangannya atas faktor belum terdapat mana-mana pihak yang melakukannya lagi.

“Kami merupakan syarikat penerbangan pertama memperkenalkan donat Krispy Kreme dalam penerbangan.

“Selain itu, produk ini popular di kalangan pengguna malah sedap serta melengkapi makanan lain yang dihidangkan dalam penerbangan kami,” ujarnya.

Berharga RM7 untuk dua biji donut, empat perisa iaitu Chocolate Iced Glazed, Glazed Chocolate Cake, Glazed Vanilla Cake dan Chocolate Peanut Butter akan dijual mulai 1 September ini.

Para penumpang boleh menikmati diskaun sebanyak 20 peratus sekira menempah donat Krispy Kreme menerusi dalam talian.

http://www.airasia.com/nl/images/2009/ad_01.jpg

Wahh murah jerrrr!!!