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Old November 13th, 2005, 06:40 PM   #261
hkskyline
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Sunday November 13, 11:03 AM
MALAYSIA PRESS: Malaysia Air Taking Steps To Cut Costs

KUALA LUMPUR (Dow Jones)--Loss-making Malaysian Airline System Bhd. (3786.KU) will freeze hiring and ask senior executives to take a pay cut, the Star and New Straits Times newspapers report Sunday.

Citing an internal memo, the Star said senior executives could see a 15%-30% reduction in their salaries from next month as the airline focuses on reducing costs to become profitable again.

The New Straits Times also reported the airline will freeze hiring as it attempts to recover from a MYR280.7 million loss in the June quarter.

"Our financial performance is precarious and has increasingly become a source of concern," Chairman Munir Majid said in the memo seen by the two newspapers. "There is now a need to extend the scope of the cost reduction focus and put in place more aggressive measures."

The airline has scaled back expansion, lowered the cost of jet fuel and is reviewing its plans to purchase new aircraft.

-Kuala Lumpur bureau, Dow Jones Newswires
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Old November 14th, 2005, 01:38 AM   #262
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AirAsia eyes Brunei, new destinations in Indonesia, Cambodia

KUALA LUMPUR, Nov 13 (AFP) - Malaysia's low-cost carrier AirAsia said Sunday it soon hopes to fly to Brunei and to new destinations in Indonesia and Cambodia following the arrival of two new A320 Airbus aircraft in December.

"We are waiting for approval to fly to Brunei from Kuala Lumpur," AirAsia chief executive Tony Fernandes told AFP.

Fernandes said that AirAsia was also planning to establish flights to key historic sites in Southeast Asia in response to growing tourist demand.

"We will probably fly to Solo, Indonesia in January and are waiting for approval to fly to Siem Reap, Cambodia," he said.

Both routes would originate in Kuala Lumpur.

The AirAsia chairman said the new A320 aircraft would have a capacity of 180 passengers.

AirAsia has ordered 60 A320s with an option for another 40 aircraft which will completely replace its current fleet of 28 single-aisle, 148-seat Boeing 737-300s.

The first will be delivered in December, with the process continuing through 2011, the company said.

Fernandes dismissed rival budget carriers in Singapore, saying: "We have huge networks. Kuala Lumpur will become a hub for low-cost carriers. Singapore can't come near us."

Asked about the chances of AirAsia flying to Singapore, he said: "Zero".

AirAsia has accused Singapore of discrimination after the city state last month awarded long sought-after landing rights to a rival Indonesian carrier.

While AirAsia reported its net profit for the year to June as 111.63 million ringgit (29.6 million dollars), budget airline Tiger Airways, a unit of the state-owned Singapore Airlines, and JetStar Asia, in which the government has a stake, are unprofitable, the Financial Times newspaper said last month.

AirAsia recently launched daily flights from Kuala Lumpur and Bangkok to Phnom Penh, a move that caters to the increasing number of tourists visiting Cambodia.

AirAsia was launched in December 2001 with just two aircraft and has since become a significant regional player, with its business model increasingly imitated by national carriers and a host of new low-cost entrants.

The airline covers most major cities in Southeast Asia, linking Malaysia, Thailand, Indonesia, Singapore, Macau, Vietnam, Cambodia, Xiamen in China and the Philippines.
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Old November 14th, 2005, 07:59 AM   #263
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Quote:
Originally Posted by Subangite
Erm, if I'm not mistaken there are other carriers who do the KL-SIN route, for example JAL is one of them.
ur rite, i was refering after the split between MAS n SIA.. but these days there r quite a number of airlines plying KUL//SIN.
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Old November 14th, 2005, 08:22 AM   #264
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I have flown Malaysia several times to Asia, both economy and business class. In my opinion, it's a 5* airline, better than British, Lufhansa and even Singapore Airlines. It's definitely my airline of choice. It's a pity its not flying South Africa-Europe.
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Old November 14th, 2005, 11:46 AM   #265
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Quote:

Fernandes dismissed rival budget carriers in Singapore, saying: "We have huge networks. Kuala Lumpur will become a hub for low-cost carriers. Singapore can't come near us."

Asked about the chances of AirAsia flying to Singapore, he said: "Zero".

don't u just love his way...
after all..he's richard branson of the east
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Old November 14th, 2005, 11:50 AM   #266
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So KLIA will be 'low-cost airport' then... so sad...
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Old November 14th, 2005, 02:17 PM   #267
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Quote:
Originally Posted by Magician
So KLIA will be 'low-cost airport' then... so sad...
I reckon in the near future all regional flights would be dominated by low cost carriers. KLIA is moving in the right direction to position itself as the hub for these airlines.
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Old November 15th, 2005, 07:17 PM   #268
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Being a hub for low cost carrier is not a disgrace. Afterall, you have bangkok and singapore which are positioning themselves as two major airlines hubs in South east asia. Plus, KLIA can still digging a lot of profit to be a low cost carrier hub....rather than nothing at all.

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Old November 15th, 2005, 08:42 PM   #269
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Ryanair will surpass British Airways in passengers carried this year, and they are profitable. Being low-cost doesn't really matter as much now does it?
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Old November 16th, 2005, 06:15 AM   #270
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Yup it doesn't.

In 2003 Southwest Airlines carried 74,787 thousand passengers and it was 3rd largest carrier in terms of passengers carrier in the world (Source: Air Transport World's World Airline Report 2003). Its hard to find recent figures because Southwest is not an IATA (International Air Transport Association) member airline. It is the largest domestic airline in the United States, as measured in number of passengers carried.

If I'm not mistaken Southwest is also the largest airline in the world in terms of market capitalisation.

Back to topic, Air Asia is close to being the same level of market capitalisation as Malaysia Airlines, shocking really since they a fairly recent start-up.
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Old November 17th, 2005, 05:26 PM   #271
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Delivery Of Remaining Five A380 To Be Finalised By Year-end

SEPANG, Nov 17 (Bernama) -- Delivery of the remaining five Airbus superjumbo A380 will be finalised by year-end, says Malaysia Airlines' senior general manager for technical and ground operations, Tajuden Abu Bakar.

According to Airbus, the European plane maker, Malaysia Airlines will receive the first of the six A380 aircraft ordered in July 2007.

Malaysia Airlines and its parent company Penerbangan Malaysia Bhd (PMB) had received a letter from Airbus recently, confirming that the first A380-800 aircraft would be delivered in July 2007 instead of January 2007 and the last plane in May 2009.

Airbus said the national carrier and most of the current 159 buyers of the aircraft would, on the average, experience a six-month delay for the 555-seater airplane.

PMB signed a memorandum of understanding (MoU) with Airbus to buy six Airbus A380-800 aircraft on Jan 10, 2003.

-- BERNAMA
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Old November 17th, 2005, 05:27 PM   #272
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November 15, 2005 17:56 PM

MAS To Get First A380 In July 2007


KUALA LUMPUR, Nov 15 (Bernama) -- Malaysia Airlines (MAS) will receive the first of the six A380 super jumbo ordered from Airbus in July 2007, said vice president of the A380 Customer Programme, Christopher Stonehouse.

Speaking at the A380 Programme Update here, Stonehouse said the second, third and fourth of the national carrier's A380 would be delivered in Sept 2007, March 2008 and early 2009.

On average, he said the national carrier and most of the current 159-buyers would experience a six-month delay for the 555-seater airplane.

Asked whether Airbus would pay for the compensation, he said it was subject to the sale and purchase agreement but "initially yes there will be a compensation."

MAS and its parent company Penerbangan Malaysia Bhd (PMB) had received a letter from Airbus recently, confirming that the first A380-800 aircraft would be delivered in July 2007 instead of January 2007 and the last in May 2009.

Both was said to discuss with Airbus on the compensation.

PMB signed a memorandum of understanding (MoU) with Airbus to buy the six Airbus A380-800 aircraft on Jan 10, 2003.

Stonehouse said so far the company had 27 orders for its A380 freighter from four customers and it would only be flight ready towards the end of 2008.

Airbus is optimistic towards the market for A380 freighter and the company projects that over 20 years, out of 15,000 aircraft, 300 would be freighters.

The A380-800F has a payload capacity of 150,000kg with a range of 10,410km.

The upper deck, which has a maximum width of 5.92m can accommodate 17 pallets, while the main deck with a maximum width of 6.58m, holds 28 pallets and the lower deck 13 pallets.

Airbus' regional communications representative, Anthony Phillips told Bernama that the European plane maker would go for a greater marketing programme towards selling the A380-800F.

"As for now, we are focusing on passengers' A380 aircraft," he said.

FedEx and UPS ordered 10 A380-800Fs each while International Lease Finance Corp five and Emirates two.

On using A380 jetliner for Low Cost Carriers (LCC) industry, Stonehouse said there was a Japanese company exploring the possibility.

"We believe there is a market there. We are working with the Japanese company on what we can do. But the design will be different because you will be using larger aircraft for long haul operations," he said.

There are few other airlines not from this region which had expressed interest to use the superjumbo as LCC aircraft.

-- BERNAMA
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Old November 17th, 2005, 08:49 PM   #273
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Quote:
Originally Posted by harkerb
I have flown Malaysia several times to Asia, both economy and business class. In my opinion, it's a 5* airline, better than British, Lufhansa and even Singapore Airlines. It's definitely my airline of choice. It's a pity its not flying South Africa-Europe.
yes...malaysia airlines rated as 5*airlines by skytrax.
http://www.airlinequality.com/StarRanking/5star.htm .but i think singapore's is much better.Btw, does any of pinoy forumer wants to compare malaysia's with pilippines airline???
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Old November 18th, 2005, 05:11 AM   #274
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Went to see the plane last night but it was raining. So I managed to take some pics from the Observation Platform of KLIA. Too bad it is all 'backside' pics


Here's the Airbus A380 at Kuala Lumpur International Airport:

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Old November 18th, 2005, 05:23 AM   #275
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Old November 19th, 2005, 02:35 AM   #276
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AirAsia says to keep fares low even at $80 jet fuel

PUSAN, South Korea, Nov 16 (Reuters) - Malaysian low-cost airline AirAsia , helped by an aggressive fuel hedging policy, is confident that it can maintain low fares even with soaring jet fuel prices.

"We don't like it, but we are comfortable that we can maintain low fares even as jet fuel is at $80", Chief Executive Tony Fernandes told reporters on Thursday.

AirAsia, which listed last year, missed its full-year earnings target of 160 million ringgit ($42.34 million) forecast in its prospectus. The firm earned a pre-tax profit of 125.48 million ringitt for the year to June 30, 2005.

It said in its results statement that jet fuel prices remained the principal challenge for the airline, although this had been partly mitigated by hedging and a fuel surcharge in mid-July.

"We take a very aggressive hedging policy", Fernandes told a news conference on the fringes of a meeting of top executives during the Asia-Pacific Economic Cooperation (APEC) forum in the South Korean port city of Pusan.

"We have hedged 100 percent until the end of our financial year. We have always hedged 100 percent", he added.

The carier, whose catch phrase on its Web site is "Now everyone can fly", has said it is one of the world's top three most profitable no-frills airlines, despite the Asian tsunami in December last year, losses due to start-up costs at its Indonesian operations and high fuel prices.
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Old November 20th, 2005, 11:02 AM   #277
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Quote:
Originally Posted by tomkat
I reckon in the near future all regional flights would be dominated by low cost carriers. KLIA is moving in the right direction to position itself as the hub for these airlines.
and that eventually will attract the big boys to start flying into KLIA again.. hopefully.
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Old November 21st, 2005, 04:48 PM   #278
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AirAsia To Add Five More Destinations In Mid-2006
Updated : 21-11-2005
Media : Bernama


KUALA LUMPUR, Nov 21 (Bernama) -- Low-cost carrier AirAsia Bhd plans to add four to five new destinations when it starts operating at the low-cost carrier (LCC) terminal which is expected to be completed by middle of next year.

"We have not touch India yet or China a lot. It is hard to say but I would say about four to five more destinations such as Vietnam, Myanmar and Laos," its chief executive officer Datuk Tony Fernandes told reporters at Ernst & Young Entrepreneurs' Forum here Monday.

He added that by the time the LCC terminal at the Kuala Lumpur International Airport (KLIA) started operations, at least five to six of its new A320 Airbuses would have arrived.

AirAsia has ordered 60 A320s with an option for another 40 aircraft.

Fernandes said at the moment, AirAsia would focus on Indonesia and China.

"We also have a lot of domestic flights to do and a lot of frequencies we want to add. We're launching our second flight (daily) to Macau and then more destinations to Indonesia and China," he said.

AirAsia, he added, also hoped to get approval to fly to Siem Reap, Cambodia and Brunei soon.
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Old November 25th, 2005, 05:53 PM   #279
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Shareholders back AirAsia expansion into China, India
Updated : 25-11-2005
Media : Asia AFP


KUALA LUMPUR (AFP) - Malaysia's AirAsia said shareholders have backed its ambitious expansion plans which will see the pioneering low-cost carrier flying to more destinations in China and possibly to India.

AirAsia executive director Kamarudin Meranum said the company will fly to five more destinations in China and will also secure landing rights in India.

"These are not only booming economies. They have a huge population. We see lots of opportunity. They are on our radar as our new A320 (planes) arrive. We will also fly to more routes in Southeast Asia," he told AFP.

Kamarudin said shareholders were pleased with the growth plans and strategy, adding that there was no fixed timetable for flying to India.

"They backed our growth model. It was a pleasant suprise," he said.

AirAsia expects the arrival of its first Airbus A320 on December 8. It has ordered 60 A320s with an option for another 40 aircraft which will completely replace its current fleet of 28 single-aisle, 148-seat Boeing 737-300s.

Speaking to reporters after the company's first annual general meeting, Kamarudin said despite rising fuel costs, AirAsia would not impose additional fuel surcharges.

By year-end, AirAsia would fly to tourist destinations in Southeast Asia including Solo and Balik Papan in Indonesia and Siem Reap in Cambodia out of Kuala Lumpur, he said.

Pahamin Rajab, AirAsia chairman, said shareholders backed the company's expansion plan to purchase new aircraft and seek new lucrative routes.

"Generally they have gone home pleased after the annual general meeting. We are a new and an expanding airline. They are going to benefit in the long-term (from) investing in the company," he said.

AirAsia recently launched daily flights from Kuala Lumpur and Bangkok to Phnom Penh, a move that caters to the increasing number of tourists visiting Cambodia.

AirAsia was launched in December 2001 with just two aircraft and has since become a significant regional player, with its business model increasingly imitated by national carriers and a host of new low-cost entrants.

The airline covers most major cities in Southeast Asia, linking Malaysia, Thailand, Indonesia, Singapore, Macau, Vietnam, Cambodia, Xiamen in China and the Philippines.
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Old November 25th, 2005, 05:53 PM   #280
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The Star: 25th. November 2005
AirAsia to get A320 soon

BY ANTHONY CHEW IN HAMBURG

AirAsia Bhd will take delivery of its first A320 aircraft in Germany on Dec 5. The plane will arrive in Kuala Lumpur on Dec 8.

The 180-seat aircraft, getting the finishing touches at Airbus' assembly plant in Hamburg, Germany, will be taken to the European aviation consortium’s headquarters in Toulouse, France, where a handing-over ceremony is to be held.

AirAsia chairman Datuk Pahamin A. Rajab will represent Airbus at the event.

The single-aisle aircraft will be taken to the Lima Airshow in Langkawi for display on Dec 9.

AirAsia has signed a purchase contract for sixty A320s and has an option for 40 more. Each aircraft costs about US$64mil.

AirAsia group chief executive officer Datuk Tony Fernandes said the new aircraft would be used on domestic routes.

Its senior executive for publicity and promotions, Jeamie Lee, told a group of visiting Malaysian journalists in Hamburg on Monday the new aircraft would further strengthen the airline’s service network. “It will also give our passengers a better flying experience and more comfort,” she said.

Lee said a second aircraft would be delivered to AirAsia by the end of December.

Stuart Mann, Airbus' head of marketing for the A320 family, said the aircraft was designed to optimise revenue through cabin adaptability and passenger comfort.

“It is fitted with the most modern and complete fly-by-wire technology to ensure savings in direct operating costs, besides wider seats and aisle,” he said.

Airbus communications manager Tore Prang said all the ordered aircraft would be delivered on schedule.
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