AirAsia Latest News

TAA gears up for daily service to India

2011-10-29T22:50:00.000+08:00

13 October 2010

Thai AirAsia (TAA) will break new ground in air travel between Thailand and India with the debut of low-cost service in December.

After nearly two years of planning and navigating India's complex approval process, the no-frills airline will launch its long-awaited flights from Bangkok to Kolkata and New Delhi on Dec 1.

Thai AirAsia, the local affiliate of Malaysia-based AirAsia, Asia's largest budget carrier, was granted its desired daily frequency for the Kolkata-bound route but must wait another 60 days to operate a similar seven flights a week between Bangkok and New Delhi.

Indian aviation authorities said Thai AirAsia could operate four flights a week on the Bangkok-New Delhi sector now, but the airline prefers to wait until it can offer daily flights.

The airline has been eager to capitalise on fast-growing demand for air service between the two countries and enlarge its traffic base by focusing more on the "very budget conscious" segment.

Last year, arrivals from India increased by 14.45% to 614,566, ranking fifth in Thailand's foreign visitor tally and bringing in more than 16 billion baht in foreign exchange.

For the first eight months of this year, Indian arrivals jumped 20% year-on-year, underlying the significant growth for this sector of the market, chief executive Tassapon Bijleveld said yesterday, citing official figures.

He said the airline was upbeat about the market response to its first two Indian routes, expecting to see an initial cabin factor of 85-90%.

Thai AirAsia has said it also hopes to launch a third route, Bangkok-Mumbai, also with a daily frequency, sometime in the second half of 2011.

Mr Tassapon said the airline was also studying the potential of adding Chennai and Bangalore to its Indian network but declined to give a timeframe for when any changes may occur.

He said while AirAsia and the long-distance AirAsia X have been flying to India from their Malaysian hub, Indians still need time fully to embrace the low-cost carrier model, which is still unfamiliar to most Indians.

Thai Airways International and four legacy Indian carriers currently operate between Thailand and India.

Bangkok Post

AirAsia named best in Asia

2011-10-29T22:39:00.001+08:00

12 October 2010

PETALING JAYA: AirAsia was named the Best Asian low-cost carrier by TTG, Asia Pacific’s leading travel news publisher.

About 48,000 votes were cast in a poll which was held from June to August.

“This award reflects AirAsia’s commitment to excellence and to growing travel and tourism in the region. We have flown 100 million guests in only eight years of operations as a low-cost airline that has made it truly possible for everyone to fly,” said AirAsia chairman Datuk Aziz Bakar.

He received the award at the 21st annual TTG Travel Awards 2010 ceremony in Bangkok.

In a statement yesterday, Aziz said AirAsia would keep serving the region with low fares, an extensive network of destinations, great flight frequencies and friendly service.

The Star

Liberate Sydney!

2011-08-11T12:00:00.017+08:00

08 October 2010

AIRASIA X has stepped up its fight for a Sydney – Kuala Lumpur route by emblazoning its newest plane with the message: Liberate Sydney. End the monopoly.

The low-cost carrier’s new Airbus A330 will take its message – which also features a silhouette of the Sydney Opera House - to the skies on the Melbourne and Gold Coast route.

The Malaysian-based carrier flies out of Melbourne, Perth and the Gold Coast to Kuala Lumpur but has been denied permission to fly from Sydney by the Malaysian Government, despite receiving the green light from local authorities.

“There is an immense demand for capacity on that route but the only thing holding us back from launching direct services is government approval from Malaysia,” AirAsia X CEO Azran Osman-Rani said.

“We hope this paint job comes through loud and clear because we will keep fighting the good fight until we get the go-ahead to fly to Sydney.”

Named the ‘Southern Xross’, AirAsia X Head of Commercial Darren Wright said the aircraft was "dedicated to the Aussie spirit".

"And that means we won’t give up. Sydneysiders deserve greater choice and an end to the monopoly on the route by government-owned carrier Malaysia Airlines,” Mr Wright said.

Air Asia's long-haul offshoot Air Asia X launched flights to Australia in November 2007 with services to the Gold Coast. Perth and Melbourne were added a year later.

AirAsia X also flies to destinations in China, India, Taiwan, Korea, Iran and the UK.

AirAsia, the leading and largest low-cost carrier in Asia, services the most extensive network with over 132 routes covering over 70 destinations.

The airline was named the 2009 and 2010 World’s Best Low Cost Airline in the annual World Airline Survey by Skytrax and last October AirAsia and AirAsia X were awarded jointly the Centre for Asia Pacific Aviation (CAPA) Airline of the Year Award for 2009.

Travel BlackBoard

AirAsia X Says GDS Sales Not Paying Off

2011-08-11T11:56:00.001+08:00

05 October 2010

AirAsia X’s initial sales from global distribution systems are not yet paying off, with GDS bookings accounting for 3% to 4% of its sales and failing to generate a “material difference” in yield compared to online purchases, says CEO Azran Osman-Rani.

The latter point is critical because low-cost carriers will pay for the GDS distribution model only if the yields are sufficient to offset the cost of using the channel. However, Azran told The DAILY on the sidelines of the World Low-Cost Airlines Conference in London that he is willing to give the experiment another year or so to see if the GDSs produce better results. AirAsia X only recently separated from AirAsia and now has its own commercial team, meaning it can work closely with travel agents and GDSs on how best to market its product instead of paying AirAsia a fee for its GDS connection. “If something good comes out of it, great; I’m not dogmatic about it,” Azran says. “But I think as is, something is not right. Something needs to change. I don’t know what it is.”

What he does not want to give agents is what some of them continue to clamor for—GDS access to AirAsia X’s promotional Internet prices, which he says shows they are focused on selling solely based on price. That’s a marketing challenge because the airline attracts business travelers who are more price-sensitive than customers for other airlines, and right now even customers at million-dollar businesses are telling their secretaries to book online instead if the online price is cheaper than what the agent can offer, Azran says.

Azran reports better results with AirAsia X’s lie-flat seats. The airline has 12 such seats on every aircraft and is filling them at about the same rate as economy class, with about a 75% load factor, he says.

Customers who pay for the seats also get flexibility on ticket changes and food, pillows, blankets and priority baggage included in the fare. The seats are selling particularly well on the airline’s U.K., Australia and Taipei routes, Azran says, but less well on new routes in China and India, where passengers are less familiar with the differentiation in low-fare products. That is demonstrated by the selling patterns in those locations, he says. When load factors in economy seats reach about 80% on a given flight, the fare difference between them and lie-flat seats shrinks to about $20, which should convince travelers to upgrade to lie-flat seats. But customers there are still buying economy.

By Andrew Compart

Aviationweek

Orly airport to launch budget flights to Asia

2011-08-11T11:53:00.000+08:00

04 October 2010

Long-haul budget airline AirAsia X has reached a deal with French airport coordination to start operating flights from the Paris Orly airport, French media reports say.

French newspaper La Tribune reports that the budget airline is expected to start flights from Paris to Kuala Lumpur in Malaysia next year. AirAsia X however denies a final agreement has been reached and says talks are still ongoing.

Orly airport director Franck Goldnadel admits he contacted AirAsia X to offer landing slots at Orly. “As an average-sized airport, Orly suits budget airlines because time spent on runways is kept to a minimum,” he said.

Approval for the carrier to land in Paris was announced by Malaysian Prime Minister Najib Razak during a visit to Paris last year after a meeting with French President Nicholas Sarkozy.

It will be the Southeast Asia's biggest budget carrier second route in Europe after it began a London service in March last year.

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.

The airline currently has eight aircraft and will have 11 by December. It has also placed an order for 17 Airbus A330s and 10 A340s.

by RFI

AirAsia Bhd expected 100 million passangers this week

2011-08-11T11:49:00.002+08:00

04 October 2010

AirAsia Bhd. (AirAsia) is expected to-100 million passengers this week, after operating for more than eight years. Now low-cost airlines that actively monitors the reservations system to look for passengers to-100 million and the lucky passenger will receive a surprise gift.

Regional Head of Commercial Kathleen Tan said, the increase in the number of aircraft and the addition of new routes, it is expected to attract passengers to-200 million in a shorter period than that achieved for the passengers to-100 million.

''May be within the next three to five years its compared to other airlines that have been operating, the performance is good and it was done in a short time," she said.

Kathleen Tan said, besides offering competitive fares, destinations and services are offered either as a factor contributing passengers using the airline's services.

Even now, she said, AirAsia in Malaysia, Indonesia and Thailand and AirAsia X has made Kuala Lumpur as the gateway, before they fly to other destinations.

She said, AirAsia also has changed the shopping habits and style, adventure and community in this country to travel more frequently than they started traveling in a younger age.

As such, she expects more than six percent of the people of this country have been flying on AirAsia currently carry 15 million passengers a year.

"In the early days of AirAsia, estimated that only six percent of the population has been using air services. The latest, China is a new popular destination among the Malays. In the past the Malays do not go to China because the thought had difficulty getting hard to find halal food and the mosque, but now everything has changed that presumption. This is because China has the largest Muslim nation in the world, "she said

By Toreksulong

Allvoices.com

AirAsia X: Listing will raise funds to buy more planes

2011-08-11T11:39:00.001+08:00

29 Sep 2010

KUALA LUMPUR: Long-haul budget carrier AirAsia X Sdn Bhd sees its impending listing as a good avenue to raise capital, says chief executive officer Azran Osman-Rani.

“We see the listing as a good way of raising capital to buy more planes to serve these (underserved) routes,” Azran said during the two-hour CEO roundtable conference yesterday.

He explained that there were limited direct flights from Malaysia to major cities and the larger fleet size would enable it to serve those underserved routes.

Azran Osman-Rani says AirAsia X’s listing is something it really wants to pursue. – Bernama

On top of expanding its fleet size and routes, Azran said the listing exercise would also provide AirAsia X with a good platform to expand its relationship with shareholders.

“It (the listing) is something we really want to pursue. There’s tremendous upside growth in the long-haul market and Malaysia is so deprived of direct flights to some major cities,” he said.

In June, AirAsia X announced its plan for an initial public offering (IPO) in the second half of 2011, subject to market conditions. While it is still uncertain, the IPO was likely to value AirAsia X at between US$500mil and US$600mil.

AirAsia X posted a revenue of RM720mil for the financial year ended Dec 31, 2009 (FY09) and RM231mil for FY08. Net profit for FY09 was RM87mil and the airline is targeting a net profit margin of 7% this year.

Earlier, at the interactive CEO roundtable, Dubai International Financial Centre Authority chairman David Eldon said some of the banks were repositioning themselves since the financial crisis while some regulators might raise the bar higher than the Basel 3 framework.

He said bankers were much respected in the community prior to the financial crisis and were gaining less respect these days as they contributed to the whole financial mess.

Eldon, an ex-banker, joked that these days he would tell people he was a plumber if asked.

Kanoo Group Deputy Chairman Mishal Kanoo at the CEO Rountable forum on the "Dawn of The New Decade: Alternative Investments in Asia" here today. Also present were AirAsia X Chief Executive Officer Azran Osman Rani (left) and Wipro Technologies Asia Pacific and China Chief Sales and Operations Officer, Rajat Mathur (right). - Bernama

While Azran said he did not know much about repositioning, he said AirAsia had reinvented the way people travelled, thanks to “annoying people” like himself.

He said previously travellers had decided where they would like to go but the landscape changed with AirAsia.

Azran cited an example on how travellers might be thinking of going one place but might not get the tickets or dates and ended up going to another place or picking different dates.

Despite its achievement as a young carrier, he said it was not enough and was always on the treadmill of change.

Azran said attracting talent was not just a role of the Government but also corporates and all other sectors.

The Star

AirAsia introducing in-flight calls and data access

2011-07-22T21:52:00.000+08:00

25 Sep 2010

KUALA LUMPUR: AirAsia Bhd is adding in-flight calls and data access to its range of services with an initial investment of US$1.8mil to equip the systems in six aircraft this year.

AirAsia non-executive chairman Datuk Abdul Aziz Abu Bakar said the airline had equipped four of its 96 fleet of A320 with GSM onboard system and was looking to install it on two other aircraft before the year-end.

We are at a trial stage now and we plan to expand the service to more aircraft, going forward, he said after the launch of the Maxis' in-flight roaming service yesterday.

Abdul Aziz said the service was expected to boost the carrier's ancillary income, which contributed about 15% of its total sales now.

AirAsia X chief executive officer Azran Osman-Rani said in a statement that the airline was looking at introducing the service for its long-haul flights.

The in-flight roaming service is with partnership with Maxis Bhd and in-flight connectivity provider, OnAir.

It will enable Maxis customers flying with AirAsia from Kuala Lumpur Low-Cost Carrier Terminal to stay connected while en route to their overseas destinations.

Meanwhile, Bloomberg reported AirAsia Bhd chief executive officer Datuk Seri Tony Fernandes as saying in Singapore that the company planned to hold an initial share sale for its Thai affiliate by the middle of next year.

The Star

Airasia X looks to add two more Japan cities

2011-07-22T21:44:00.002+08:00

23 Sep 2010

High aspirations: Azran Osman-Rani, chief executive officer of AirAsia X, is interviewed in Tokyo on Tuesday. KYODO PHOTO

The chief executive officer of AirAsia X, long-haul low-cost carrier based in a Malaysia, said he hopes to add two Japanese airports to its international service by 2012 after starting flights to Tokyo's Haneda airport in December.

"As far as other airports in Japan, we remain interested. I have always said Japan is a market where we can operate at three different airports, including Haneda," Azran Osman-Rani said in an interview Tuesday, adding he would consider airports in Osaka, Sapporo, Nagoya and Fukuoka.

"The cities other than Tokyo are not well known so we will not fly immediately, but once when the people of Malaysia know that we are flying to Japan, word gets around and that's when we can start direct flights there," the 38-year-old Osman-Rani said. "It will take maybe one or two years to build this awareness for these cities."

AirAsia X, an affiliate of AirAsia, one of the biggest low-cost carriers in Southeast Asia, announced Tuesday it will launch a direct service between Kuala Lumpur International Airport and Haneda on Dec. 9, with fares 40 to 50 percent lower than those currently offered by other airlines.

AirAsia X hopes that its attractive pricing and high-quality service will allow it to tap a pool of Asian tourists who have never visited Japan and increase demand for overseas flights among Japanese.

Moves are also increasing among regional airports in Japan to attract low-cost carriers since the number of existing flight services has stagnated.

Osman-Rani stressed that his priorities for future expansion are Fukuoka and Osaka.

"I like Nagoya, but in my mind I'm not sure because in Nagoya you are just over one hour from Tokyo. Maybe later when there is a lot of demand. Osaka and Fukuoka are the higher priorities," he said.

On Ibaraki airport, which AirAsia had once considered serving, Osman-Rani said: "An airport like Ibaraki probably needs to develop more of its short-haul network before it becomes viable for long-haul networks such as ours. The power of Haneda, by contrast, is very strong with a domestic network of dozens and dozens of flights to Sapporo, Osaka, Fukuoka and many other places."

AirAsia X hopes to see a load capacity of 75 percent in the first year of service between Tokyo and Kuala Lumpur, with an aim of boosting that to 80 percent by the end of the second year. It targets mostly young tourists, some businesspeople and retirees.

"I think Southeast Asia is very unique and the best part of Southeast Asia is you don't need to choose where to go. You can go to the beach islands for a few days and to the city for shopping, nightlife and also go to adventure destinations. Everywhere is a one-hour flight and very cheap, $10, $20," he said.

By JUNKO HORIUCHI

Kyodo News

AirAsia maintains no fuel surcharge policy

2011-07-22T21:38:00.001+08:00

22 Sep 2010

KUALA LUMPUR: AirAsia Bhd is maintaining its no fuel surcharge policy despite reports that other airlines are increasing previously imposed charges.

In a statement, the airline said it was committed to keeping air travel affordable and had chosen to tackle fuel price hike with aggressive marketing and the strengthening of its ancillary business instead of relying on fuel surcharge to offset rising fuel cost.

AirAsia commercial head Kathleen Tan said: “AirAsia scrapped out fuel surcharge in November 2008, and we have no intention of resurrecting it."

She said that its strong seat sales and successful ancillary income were enough to offset the rise in fuel price, adding that it used innovation to drive its costs down and were looking at various other revenue streams rather than impose a fuel surcharge.

“Imposing fuel surcharge may be an easy way out, but it can also be an addiction in driving artificial revenue to a company,” Kathleen added.

Last year, ancillary income for the entire AirAsia Group (AirAsia Bhd, Thai AirAsia and Indonesia AirAsia) was approximately RM603.5mil, 14.6% of the group’s revenue. The group’s ancillary income was RM460.9mil as of the first half of this year.

The Star

AirAsia X optimistic over Tokyo route in December

2011-07-22T21:30:00.001+08:00

22 Sep 2010

PETALING JAYA: Long-haul budget carrier AirAsia X will fly to Japan in December, with three non-stop flights a week from KL International Airport to Haneda in Tokyo.

Chief executive officer Azran Osman Rani said considering its status as the world’s largest metropolitan city, Tokyo was an important feeder market for the airline to move into the growing international network.

“The three weekly flights will strengthen our historic business and tourism links with Japan’s commercial centre,” he said.

Azran said he estimated that more than 60% of the passengers between Kuala Lumpur and Tokyo would be first-time visitors, adding that new market segments could be created from the tourism growth.

To mark its new destination, Air Asia X is offering promotional fares for a one-way ticket from Kuala Lumpur to Tokyo from as low as RM99. The tickets will be available from Sept 23 to Sept 26 for travel period Dec 9 to Jul 31, 2011.

The seats are offered on a first-come, first-served basis and tickets are only available online via www.airasia.com and mobile.airasia.com.

Passengers will travel in a brand new A330 aircraft with standard business class “Premium Flat Bed” seats that feature universal power sockets, adjustable headrests and built-in personal utilities, such as tray table, drink holder, reading light and privacy screen.

AirASia X currently flies to destinations in Australia, India, Taiwan, China, Europe and Korea.

The Star

Is it necessary to buy travel insurance before flying?

2010-09-16T11:28:00.000+08:00

15 September 2010

PETALING JAYA: It is hard not to notice that travel insurance is being offered whenever one books one’s tickets with an airline company. These days, air tickets come with an offer for travel insurance.

However, some travellers often ask if it is necessary to buy travel insurance when purchasing the air tickets. Well, if any airline can guarantee, among others, that your plane will be on time, your luggage will arrive safely on the same flight or you will not meet with an accident, then it is not necessary to purchase travel insurance.

For many though, travel insurance has eased the pain of cancelled flights, delayed travel and interrupted trips as witnessed recently with the Icelandic volcano eruption that caused havoc on international flights around the world and threw hundreds of thousands of travellers into a state of stranded chaos.

On the local front, both Malaysia Airlines (MAS) and AirAsia Bhd currently offer travel insurance purchase for customers buying air tickets via their web portals.

Johan Aris Ibrahim ...’By the end of 2010, AirAsia Insure will be available for most of our destinations.’

In 2008, MAS was the first full-service carrier in Asia to offer its travel insurance online. The MHinsure policy provides travellers comprehensive insurance coverage for unexpected losses during their journey with access to Mondial Assistance’s 24-hour worldwide assistance.

According to MAS general manager business development Visva Sabaratnam, the scheme has been well received with 25% of the carrier’s passengers purchasing it.

He said the comprehensive policy included overseas medical expenses, travel delays, trip cancellation, loss of baggage and personal effects, and home protection in case of damage to the home during the travel period.

“We promote MHinsure on our website, call centre and ticketing offices, From the response thus far, there is certainly good awareness of this service.

“We also see an estimated 30% of international policy holders who have purchased MHinsure more than once in 2009, indicating satisfaction with the product offerings and services provided, including claims experience,” he told StarBiz.

Apart from MAS passengers, those departing from Malaysia, Singapore and Australia on any other airline can purchase MHinsure from these countries on the MAS website.

MHinsure is currently available in Malaysia, Australia, Germany, France, Italy, the Netherlands, Singapore and Sweden, and was recently introduced in the UK, United Arab Emirates and New Zealand.

With this, a total of 11 countries in the MAS network now offer online travel insurance. According to the MAS website, travellers need only to complete the online travel insurance application to be eligible for cover. There is no need for medical examination. MHinsure also offers travellers the same premium regardless of age. The premiums are based on travel duration and destination.

Commenting on its competitiveness, Sabaratnam said MHinsure was developed with the primary objective of ensuring high quality cover at affordable prices.

MHinsure Basic Plan starts from RM15 for domestic travel for a 30-day cover and RM23 for international cover for a five-day trip.

Sabaratnam said whichever international cover customers chose, MHinsure offered customers unlimited financial coverage in the case of an overseas emergency evacuation or repatriation. “This sets us apart from the rest.”

Meanwhile, AirAsia head of financial services and loyalty Johan Aris Ibrahim said AirAsia started selling travel insurance online in 2005 and the recent rebranding of its insurance product as AirAsia Insure from Go Insure had boosted public awareness on the offering.

“The rebranding exercise was prompted by AirAsia’s plans to expand the insurance services regionally and to reinforce its position as the only Asean low-cost carrier to offer travelling insurance coverage,” he told StarBiz.

He said the response had been “positive regionally” and guests were starting to be insurance-conscious when travelling, whether for business or leisure.

“We have gone from strength to strength in offering AirAsia Insure and the number of policies sold has been growing at 30% annually,” Johan said.

AirAsia’s plan starts from RM7.50 for the AirAsia Insure one-way cover for domestic travel to RM49 for AirAsia Insure return cover for international travel (11-30 days).

“Besides Malaysia, AirAsia Insure is available for travel from Singapore, Thailand, Indonesia, Macau, Hong Kong, China and Australia,” Johan said.

“By the end of 2010, AirAsia Insure will be available for most of our destinations and at our affiliated companies for purchase at AirAsia Megastore.com, AirAsiaredtix.com and AirAsiaGo.com.

“There is an option to purchase insurance online as a notification or prompter will alert customers on AirAsia Insure when they buy their tickets online. We have invested in strategic and targeted advertising and promotion activities,” he said.

Airlines aside, travel insurance is also offered by travel agencies, banks and insurers. In addition, credit card issuers often issue complimentary travel insurance policies to cardholders that charge ticket purchases to their cards.

By Leong Hung Yee

The Star

AirAsia X opens tickets to Tokyo from next week

2010-09-16T11:23:00.002+08:00

15 September 2010

Airline will be first foreign low-cost carrier serving Haneda airport from Dec 9

PETALING JAYA: AirAsia X will begin flights to Haneda airport in Tokyo on Dec 9 and open ticket sales for the sector next week.

The airline plans to mount three weekly flights and it will be the first foreign low-cost carrier serving the airport that is expected to open for international flights in late October.

Asashi newspaper in Japan reported that AirAsia X was expected to price fares far lower than those charged for existing services between the capitals of Japan and Malaysia offered by Japan Airlines and Malaysia Airlines (MAS).

Azran Osman-Rani says flying to Tokyo would be ‘super exciting.’

AirAsia X chief executive officer Azran Osman-Rani declined to reveal any pricing when contacted yesterday by StarBiz. But the market is abuzz with talk that the introductory price could range from RM99 to RM199.

Azran said that flying to Tokyo would be “super exciting as finally people will have choices and low fares to go to great places.’’

Three flights per week may be too few for AirAsia X but for now the airline does not have much of a choice.

It is learnt that the Japanese authorities had accorded seven rights and the Malaysian authorities awarded three each to AirAsia X and MAS, and one to Transmile.

“Japan is a high fixed cost city and with so few flights it would be difficult to make the sector sustainable so we will have to convince the authorities to grant us daily flights,” Azran said.

MAS will introduce three flights a week between Kota Kinabalu and Haneda from Nov 15.

Haneda airport is the main domestic hub for Tokyo but due to congestion in Narita, it will start receiving international flights next month. Haneda is just a 20-minute monorail or cab ride from downtown Tokyo whereas Narita is at least an hour’s train ride, and the trip can take over two hours by car on clogged roads.

To beat potential competition from six foreign low-cost carriers from China and South-East Asia, both Japanese carriers – Japan Airlines and All Nippon Airways (ANA) – want to set up low-cost airlines.

ANA has inked a deal with Hong Kong’s First Eastern Investment Group to set up a new airline that will start operations in the second half of 2011. ANA will own 39% in the venture and Far Eastern 33%. The balance equity will be sold to other investors.

By B.K.Sidhu

The Star

AirAsia slashes 20% off all seats, all flights

2010-09-16T11:21:00.001+08:00

14 September 2010

AirAsia is slashing 20% off all seats on all flights for bookings made from 14 – 19 September 2010.

Guests are able to enjoy this special promotion for the immediate travel period from 20 September – 15 November 2010.

Be spoilt for choice when selecting your dream destination as all flights and all destinations are included in this promotion. Fly to Europe, Australia, China, India, the whole of South East Asia and all over Malaysia for 20% less.

Kathleen Tan, Regional Head of Commercial, AirAsia said: “We decided to have a 20% slash off as we feel that AirAsia guests deserve to have low fares to all the destinations we service globally to experience the vast connectivity of our route network.”

Discounted fares on already ultra low fares for flights will enable guests to use the savings for accommodation and activities at their holiday destinations. AirAsiaGo provides guests with value-for-money choices on over 70,000 hotels and more than 5,000 tours and activities worldwide.

IndianExpress.com

AirAsia X still in talks to start Paris route

2010-09-14T10:00:00.001+08:00

09 September 2010

'It is still premature (to set a date), it is definitely not this year,' AirAsia X's chief executive officer Azran Osman-Rani said. -- PHOTO: AP

KUALA LUMPUR - LONG-HAUL budget airline AirAsia X said on Thursday it has no plans to begin flights to Paris this year, according to a top official, after French reports it had been given a slot at Orly Airport.

French media had reported that the carrier, which will operate the route after its affiliate AirAsia won landing rights in October last year, has been given a slot at the southern Paris airport starting from next month.

'We are not looking at flying to Paris on October 31,' AirAsia X's chief executive officer Azran Osman-Rani told AFP.

'It is still premature (to set a date), it is definitely not this year,' he said, adding that the carrier was still in talks with the French authorities on 'operational matters'.

French newspaper La Tribune, without specifying its source, reported that AirAsia has been given a slot to operate the Kuala Lumpur-Paris route twice a week from October 31.

The paper said the airline however intends to start these flights in 2011 and was targeting to fly four times a week. -- AFP

StraitsTimes

AirAsia X Appoints Carat Korea

2010-09-12T16:37:00.003+08:00

09 September 2010

Woohyun Nam, General Manager of Carat Korea, announced today the agency has won the AirAsia X account following a pitch against incumbent Group M.

Carat Korea will become the hub for the client to design integrated communications planning, including media buying, detailed media planning of offline, outdoor and digital.

Carat Korea is able to offer the client a communications strategy that goes beyond a typical media execution, together with a strategic direction integrating online and offline.

“We were very impressed with the Carat team’s understanding of the market insight and their passion for our business. We know Carat will be our key partner to grow our business in South Korea,” said Spencer Lee, AirAsia X Marketing Manager.

Woohyun Nam added, “ I believe it is a great opportunity to partner with AirAsia, who have been named the world’s best low cost airline. Carat Korea will utilise the experiences of previous global brand launches such as H&M to achieve success for AirAsia.”

AsiaMediaJournal

CAE awaits first Air Asia MPL class in Dallas

2010-09-12T16:29:00.001+08:00

08 September 2010

CAE is expecting its initial multi-crew pilot license (MPL) class to arrive in Dallas this month or in October to start the intermediate portion of the 56-week programme.

The twelve candidates are part of beta class designed to train crews starting with zero initial flight time for positions with Asian low-fare carrier, AirAsia.

Upon completion of the programme, the trainees are expected to receive an MPL license from Transport Canada and Malaysian authorities, after which they will enter AirAsia's initial operating programme for Airbus A320 first officers. AirAsia and CAE announced the program in February.

The 12 candidates are currently finishing the second phase of the four-phase programme, which included basic flying skills and 70h of single-engine flight time in Moncton Flight College in Canada. During phase two, the group will spend six months in intermediate training at CAE's SimuFlite centre in Dallas, which will include training in a twin-engine Beechjet 400 business jet flight training device.

The fourth and final phase of the programme will take place at CAE's headquarters in Montreal, where the students will train in an Airbus A320 full-flight simulator.

The programme is expected to be complete in March or April 2011.

By John Croft

FlightGlobal

AirAsia runs exclusive ‘Two to Go’ promo via its social media platform

2010-09-12T16:25:00.001+08:00

08 September 2010

AirAsia, the world’s best low cost airline which has surpassed half a million fans on its Facebook page, continues to strengthen its social media channels with an exclusive ‘Two to Go’ promotion.

Offering guests two seats for the price of one, this incentive is made available until 8 September 2010 is for the travel period from 14 September – 15 November 2010.

Whether you are a beach bummer, an adventure seeker or a shopaholic, this is a promotion not to be missed. A wide selection of domestic and international destinations inclusive of Perth, London, Chengdu, Mumbai, Delhi, Bandung, Hat Yai, Colombo, Hong Kong, Jakarta, Kota Bahru, Langkawi, Terengganu and many other destinations from as low as RM19*.

Guests can also take advantage of the immediate travel period of this promotion to enjoy a quick getaway during the upcoming Hari Raya holidays.

AirAsia continues to reward its fans for their support with exclusive promotions via its social media platforms. This is the third time AirAsia has embarked on such initiatives to give exclusive value to all their Facebook Fans.

Guests can also receive real time updates on our latest promotions, events and other AirAsia-related information via Twitter (www.twitter.com/AirAsia) and the AirAsia blog (www.blog.airasia.com).

Peanuts!Low Cost

TAA taps Chiang Mai for northern hub

2010-09-12T16:24:00.000+08:00

08 September 2010

Thai AirAsia will make Chiang Mai its third hub, after Phuket and Suvarnabhumi airports, as the no-frills carrier creates an additional sub-network to complement its expanding coverage.

The Chiang Mai hub, through which the airline will operate direct links with other destinations in Thailand and overseas, is due to be up and running in January.

The airline, part of Asia's largest low-cost carrier group, will inaugurate its northern hub with three routes, from Chiang Mai to Hat Yai, Bangkok and Singapore, all with daily frequencies.

Thai AirAsia chief executive Tassapon Bijleveld said that establishing services directly out of Chiang Mai would enable the carrier to exploit untapped traffic opportunities, especially in the leisure sector.

"By offering non-stop flights between Chiang Mai and other destinations, we'll encourage more people to fly more conveniently with less time, cost and hassles involving flight connections," he said.

The creation of a new hub will be made possible by the delivery in January of a new A320 jet from the European planemaker Airbus. The twin-engine, single-aisle 180-seat jet, Thai AirAsia's 20th, will be based at Chiang Mai International Airport.

Thai AirAsia launched Phuket as its second hub in 2009 in a strategic move to open up a new market, bypassing the traditional route that goes through Bangkok's Suvarnabhumi airport.

Today, the airline operates frequent services out of the Thai southern resort island to seven cities: Bangkok, Chiang Mai, Udon Thani, Hong Kong, Jakarta, Singapore and Kuala Lumpur.

In May, Thai AirAsia suspended flights from Phuket to Ho Chi Minh City in Vietnam and Medan in Indonesia, as traffic demand has been lower than expected. These flights began last December.

On Oct 12, the airline will start a new route, Phuket-Udon Ratchathani, with three flights a week, on Tuesday, Thursday and Saturday.

Sixteen of Thai AirAsia's current fleet of 18 A320s operate through Suvarnabhumi with two based in Phuket.

It is taking delivery of its 19th A320 next month as it continues to aggressively expand domestically and regionally with the launch of long-awaited flights from Bangkok to Indian cities such as Mumbai, New Delhi and Kolkata, possibly in the fourth quarter.

Other major Thai cities including Hat Yai and Udon Thani are candidates for Thai AirAsia's next hub, though Mr Tassapon did not give a time frame for its establishment.

Bangkok Post

Kingfisher shares soar following BA codeshare announcement; AirAsia to float AirAsia X

2010-09-12T16:17:00.004+08:00

07 September 2010

Several Asian stock markets advanced for a fourth consecutive session on Monday, with the Nikkei Stock Average (Tokyo) rising 2.1%, the S&P/ASX 200 (Sydney) adding 0.8%, The Sensex (Mumbai) gaining 1.9%, the NZX 50 (Wellington) increasing 1.2% and the Wintek (Taipei) soaring by the daily 7% limit. The stock market advances occurred following better-than-expected US job data which eased economic concerns and buoyed Wall Street on Friday.

Kingfisher Airlines was the best stock of the day, jumping 8.8% after the carrier signed a codeshare agreement with British Airways, and British Airways CEO, Willie Walsh, commented its future oneworld member partner was “clearly the best partner” in India.

Mr Walsh, who stated the carrier has a list of 12 potential takeover takeover targets, added that if the Indian Government amends its Foreign Direct Investment (FDI) legislation “all airlines around the world will look at the possibility to invest in Indian carriers”, adding, “I have no doubt Indian carriers would welcome such foreign investment because airlines are looking at strengthening their financial position.”

Meanwhile, Davy Stockbrokers commented: "I would say Asia is number one in the [BA] context that it's a high-growth market. India is very important for them and I suspect Kingfisher is top of the list."

Meanwhile, KSEMA Fincon recommended Kingfisher Airlines as a good stock to buy in the upcoming six months, while SMC Global Securities commented that Kingfisher “can be a good stock to look for” at a target price of INR78, commenting: "Kingfisher is in the backdrop of their debt restructuring … Once the debt is removed and the restructuring efforts are successful then the company's efficiency levels and their profitability levels will significantly go up and because of this debt levels, even the stock has remained under pressure for quite some time and going forward, there can be a good strong relief rally in the stock."

Also gaining strongly was Jet Airways (+5.6%), while on the other end of the spectrum, Tiger Airways’ shares declined 2.0%.

Thai Transport Ministry summons Thai Airways to explain LCC JV agreement

Thai Transport Ministry has summoned Thai Airways to explain its agreement with Tiger Airways to jointly launch LCC, Thai Tiger Airways. The carrier will answer questions from the Ministry on 15-Sep-2010, with the Ministry claiming the carrier is yet to clarify some of its issues of concern. Transport Minister, Sohpon Zarum, has insisted Thai provide full details of the JV and has stated that if the agreement is found not useful or lawful, it would be halted.

AirAsia confirms plans to float AirAsia X

In other Asia Pacific LCC news, AirAsia CEO, Tony Fernandes, commented that the group plans to float AirAsia X as he is seeing “a bit of contamination” between the way AirAsia and AirAsia X are operated.

The carrier will list in Malaysia and possibly in London or New York. The CEO declined to disclose how much of the business will be sold to outside investors, but stated AirAsia's 16% stake in AirAsia X would be “treated as an investment” and sold down gradually. However, the two airlines will not be fully separated and will continue to share a website. Four executives, including Mr Fernandes, will remain on a board for both carriers. Shares in AirAsia gained 1.1% yesterday.

Asia Pacific selected airlines daily share price movements (% change): 06-Sep-2010

Source: Centre for Asia Pacific Aviation, Reuters & Financial Times

Airlines leverage on social media sites

2010-09-12T16:09:00.000+08:00

06 September 2010

Carriers stir interest in travelling, do promotions and even sell tickets

PETALING JAYA: As travellers become more Internet and social media-savvy, airlines have started to leverage on social media sites for branding, promotion and marketing.

Airlines including Malaysia Airlines (MAS), AirAsia Bhd, Singapore Airlines, Cathay Pacific and Delta Air Lines are using Twitter, Facebook, YouTube, Flickr and even blogs to market themselves and engage with the public.

Some airlines turn their Facebook page into a fan page whereby they can connect with their fans on the Internet. Some promote their business, products, and new offerings on Twitter to reach out to more people.

MAS senior general manager, commercial strategy, Dr Amin Khan said the carrier had a two-pronged approach for its Facebook and Twitter accounts.

“For Malaysia Airlines Travel on Facebook, @MAS Twitter account and blogger engagements, our primary objective is to inspire travel by engaging and building a connection with our fans and followers.

“Our efforts here are focused on engaging our younger audience and customers, around 20 to 35 years old. This includes promoting our fares and deals, destinations, travel stories and competitions,” he told StarBiz.

Amin said MAS started its social media outreach including the Malaysia Airlines Travel on Facebook in March 2009.

“To date, we have more than 125,000 fans on Malaysia Airlines Travel on Facebook and some 16,500 followers on @MAS Twitter account.”

He added that the MH Deals by Malaysia Airlines on Facebook, which started in January, had 37,000 fans and it had 3,500 followers on @MHdeals Twitter account.

“We also have 11,500 fans on MH Students Facebook pages. A majority of them are students who are currently studying in Australia, New Zealand, Japan and India.”

MAS has managed to generate great interest with its lunch hour sales on Facebook.

“The idea for the lunch hour sale came from our Facebook fans. We are constantly engaging with them to get their feedback on what they would like to see. We are also planning other promotions according to ticket availability and seasonality,” Amin said.

A quick search on Twitter revealed that AirAsia has one of the most followers on its Twitter account with some 50,086 followers.

The budget carrier had previously operated under AirAsiaDotCom on Twitter. However, last Friday it announced to its followers that it had managed to secure back its @AirAsia twitter handler.

AirAsia has 478,708 fans on its main Facebook site. On top of the country specific sites that AirAsia has on Facebook and Twitter, it has a dedicated AirAsia YouTube channel, AirAsia Blog: Just Plane Thoughts and Flickr account as its official gallery of AirAsia pictures.

Media specialists see social media as a great platform to get the online community involved, to motivate them to travel, get them to spread the word on which airline to use.

“Most of these airlines make use of Twitter to introduce new events, offer a limited number of air tickets at discounted prices, etc,” a media specialist said.

She added that airlines were beginning to use social media productively. “Facebook is an excellent way to engage customers. And both MAS and AirAsia are doing it well.”

She said both carriers managed to encourage their customers to engage with one another. “They made it easy to access the airlines and build relationships. Potential customers can also ask questions and get help. If their customers are happy, it means returning customers to the carrier.”

She said it was good to note that AirAsia had managed to put links on its websites to generate interest on its Twitter and Facebook pages and vice-versa.

“It (AirAsia) manages to interact well on Facebook. Every news item it posts seems to get feedbacks and there are heaps of praises from fans.”

Last month, US-based Delta Air Lines had introduced the Delta Ticket Window, a Facebook application that allows its fans to find, book and share flights via the “Book a Trip” tab on its Facebook Page.

The carrier believes it can capitalise on a captive audience given that Facebook is the most trafficked website on its inflight WiFi service. It is a cutting edge offering for the airline which is unparallelled by other airlines.

Asked if MAS would start offering such service, Amin said its offerings would tie in closely with its digital strategy. “For example, we are revamping our MASTraveller portal as part of our strategy to inspire travel. In line with this, our Facebook and Twitter accounts will be promoting destinations and encouraging user-generated content.”

“We also have a social media feature on MHmobile. After a customer books his ticket on flymas.mobi, he will be able to share his itinerary on his own Facebook page, Tripit or Dopplr. This ensures that all his friends are aware of his travel plans, and he is also able to make other travel arrangements such as hotel bookings and car rentals via Tripit or Dopplr,” Amin said.

Amin said all its channels were focused on attracting consumers to its main website, www.malaysiaairlines.com. MAS employee bloggers also share their experiences on its official blog.

The carrier has a team managing the Facebook pages and Twitter accounts beside traditional media and other digital initiatives such as the website, applications for our mobile site, flymas.mobi, mobile gadgets and others.

by Leong Hung Yee

The Star

Freak accident kills Air Asia staffer at Hyderabad airport

2010-09-12T16:02:00.001+08:00

05 September 2010

Retracting aerobridge traps Guest Services Officer's hand

A Guest Services Officer of Air Asia, Amritha Roy, died after her hand got trapped in a retracting aerobridge at the Rajiv Gandhi International Airport (RGIA) at Hyderabad on Sunday morning.

Ms. Roy, aged 24, had ensured that the Air Asia passengers bound for Kuala Lumpur boarded the aircraft and was on the aerobridge number 55, when the operator began bridge retracting operations. Ms. Roy’s hand got trapped in the telescoping aerobridge.

“She immediately collapsed out of shock and was rushed to Apollo Medical Centre at the airport for emergency medical attention,” an airport press release said later. She was declared dead by doctors.

The airport police have registered a case of death due to negligence (Sec. 304-A) based on a complaint by the Airport Manager Suraj. Airport Station Police Inspector R Sanjay Kumar said the police would investgate the incident and the aspect of negligence. However, no one has been cited as accused in the FIR, he added.

P. Sripathy, CEO of RGIA in Hyderabad said, "The airport authorities have formed a committee headed by Deputy CEO and comprising the Chief Operating officer of Delhi Airport and Chief Security Officer at Hyderabad Airport to investigate the incident and ascertain complete facts of the case."

“The incident is most unexpected in nature and it is very unfortunate. We deeply condole her death and our prayers are with her family”, the airport press release added.

Ms.Roy hails from Kolkata. Her body is being sent there, airport sources said.

K. Srinivas Reddy

The Hindu

Hedging of jet fuel

2010-09-12T15:59:00.000+08:00

04 September 2010

PETALING JAYA: To hedge or not to hedge? The medium-term volatility of oil prices is giving the aviation sector a headache.

While hedging is an instrument that airlines can use to mitigate the impact of rising jet fuel costs, it is becoming increasingly difficult to rationalise the use of such an approach given the downward risk of global crude oil prices.

“The oil price volatility is one, an airline’s limited resources to invest in such an activity is another,” an analyst with a foreign research company said about challenges that airlines face today in getting their hedging position right.

“But if they did not hedge, rising jet fuel could potentially crush their operating margins, and dent their financial positions,” he added.

Crude oil prices, which determine the direction of jet fuel prices, are expected to average at US$79 a barrel by the fourth quarter of this year. As of last week, the International Air Transport Association’s (IATA) forecast of the average jet fuel price for 2010 stands at US$88.30 per barrel.

Industry experts claimed that crude oil prices could rise to an average of US$85 a barrel next year and US$100 a barrel by 2012.

Nevertheless, the trend of these oil prices remained largely unpredictable due to the weakening momentum of the global economic recovery.

As it is, some argued that there were more downward potential to crude oil prices (than there were upside potential) as they saw demand for the commodity softening in line with the trend of a slower economic growth in the next one to two years.

Still, not many airlines can afford to take the risk. This is because jet fuel represents one of the single-largest cost components for most airlines, accounting for up to one-third of their operating costs per passenger.

So, managing the cost element becomes even more significant as failure to do so can be detrimental to the business of the carrier.

A case in point: According to IATA, 25 airlines went bankrupt in the first half of 2008 due mainly to their inability to cope with rising fuel costs.

To recap, crude oil prices then were rising progressively from US$75 per barrel in the middle of 2007 to an all-time high of US$147 in July 2008.

Consequently, jet fuel prices within a span of 12 months also surged more than double to surpass US$170 per barrel in the middle of 2008. (Crude oil prices have since fallen to hover around the US$70 to US$80 per barrel level now, while jet fuel prices are currently hovering around the US$85 to US$95 per barrel level.)

So, to help stabilise their cost structures, airlines would typically hedge a portion of their fuel requirements at a pre-determined price for a specified period, while leaving the remainder to be purchased at spot prices.

Domestically, we see national carrier Malaysian Airline System Bhd (MAS) hedging 60% of its fuel requirement at US$100 per barrel for the rest of 2010, and 40% at US$100 per barrel for 2011, while local low-cost carrier AirAsia Bhd has hedged 26% of its fuel requirement at US$85 per barrel for 2010.

AirAsia has not entered into any hedging yet for 2011.

“Given the downside risks of crude oil prices, no one can be for sure whether it is a right or wrong strategy to hedge.

“As long as the airline hedges its fuel requirements, there will always be the realisation of marked-to-market gains or losses for every quarter of their financial results,” an analyst explained.

It’s a bet, analysts note. If airlines hedged their fuel requirements at a price lower than the market prices, then they would have protected their margins from being crushed by rising fuel prices.

But if market prices of fuel did not rise above the level at which airlines have hedged, then their under-hedged position would cost them extra money, which could probably lead to some booking losses.

For instance, MAS booked a marked-to-market loss of RM217mil from its hedging position for the three months to June 2010, widening its net loss to RM537mil for the period in review.

The average price of jet fuel for the quarter to June was around US$90 per barrel.

Chances of the jet fuel price exceeding US$100 per barrel for the rest of this year are slim, hence it is likely that MAS’ financials would continue to be burdened by its hedging position.

Nevertheless, investors have to take note that marked-to-market gains or losses resulting from hedging positions do not in any way reflect the airlines’ operational efficiency.

“It’s just a tool to mitigate fuel price volatility, and probably help to a certain extent... but ultimately, airlines would have to focus on the structural part such as fleet modernisation and optimal utilisation of resources to improve their operational efficiency and effectiveness, and that’s what gives them the competitive edge over their industry peers,” an analyst explained.

“And as long as the airlines can grow their revenue per available seat kilometre, they will be in a better position to cushion the effects of fuel price hike and enjoy better margins,” he added.

By Cecilia Kok

The Star

AirAsia to be ABL title sponsors

2010-09-12T15:45:00.002+08:00

03 September 2010

KUALA LUMPUR: AirAsia are the new title sponsors for the Asean Basketball League (ABL), which begins on Oct 2.

It is not the first time that they are part of the ABL. They were the official carrier for the inaugural 2009-10 season.

AirAsia group chief operating officer Datuk Seri Tony Fernandes said that the new partnership would strengthen the ABL, which was gaining in popularity.

“We are very excited for the new season to arrive and proud to be back in the ABL with a bigger role by being the title sponsors,” he said. “As an Asean airline, it is our obligation to help develop the standard and quality of sports in the region.”

Exciting venture: AirAsia group chief operating officer Datuk Seri Tony Fernandes (sixth from left) giving the thumbs up after a sponsorship signing ceremony yesterday.

The second edition of the ABL features six teams – defending champions Philippine Patriots, Satria Muda Britama (Indonesia), Brunei Barracudas, KL Dragons, Singapore Slingers and Cobras (Thailand).

The format of competition remains the same with a triple home-and-away for the league stages and a best-of-three series for the playoffs scheduled for February, including the final.

The Star

Air Asia Eyeing Halim Airport

2010-09-03T11:50:00.000+08:00

31 August 2010

VIVAnews - The Ministry of State-owned Enterprises (SOEs) acknowledged that Malaysia-based airline Air Asia states its interest to patch up an airport in Indonesia. One of the targets is Halim Perdanakusumah Airport.

"They want to manage an airport, and the name Halim is out," said SOEs State Minister Mustafa Abubakar in Jakarta, August 31.

According to Mustafa, Air Asia was willing to oversee an airport in Indonesia but it could not yet reveal the prepared allocated investment.

In addition to Halim Perdanakusumah Airport, Air Asia also viewed that the Terminal 3 of Soekarno-Hatta Airport will need better management, for there is no balance between the domestic and international terminals.

In addition to Air Asia, Mustafa said that a number of airport administrators are eyeing several airports in the country, including one managing Schiphol Airport in the Netherlands.

The minister said foreign investors are starting to put into consideration the development of various airports, especially Soekarno-Hatta, which is more visible and profitable.

By Antique, Syahid Latif

VivaNews.com

AirAsia X Launches Ex-Australia Promotion

2010-09-03T11:45:00.000+08:00

31 August 2010

AirAsia X is slicing 20% off all Australian flights to Kuala Lumpur and back to celebrate the arrival of Spring.

AirAsia’s 20% Off Spring Sale is on from Wednesday, 1 September, until 5 September 2010, with 20% off all flights between the Gold Coast, Melbourne and Perth and the Malaysian hub of KL.

The travel period runs between 1 September 2010 and 14 November 2010. The sale also applies to AirAsia X’s new Premium FlatBed seats.

The Premium seats offer standard business class specifications of 20” width, 60” pitch and stretch out to 77” in full recline position.

They also feature universal power sockets, adjustable headrests and built-in personal utilities such as tray table, drink holder, reading light and privacy screen.

AirAsia X is also offering hot deals on some old favourites departing Kuala Lumpur including Ho Chi Minh from $3, Phuket from $5, Penang from $26, Langkawi from $30, Singapore from $32, Bangkok and Siem Reap from $67 and Bali (Denpasar) from $71. Terms and conditions apply.

AsiaTravelTips.com

Virgin Blue pax up in Jul-2010; AirAsia focuses on ancillaries; Thai Tiger revising business

2010-09-03T11:41:00.001+08:00

30 August 2010

Shares in Virgin Blue gained 3.2% on Friday, the same day the carrier released its traffic results for Jun-2010 and Jul-2010.

The carrier reported a 7.3% increase in passenger numbers to 1.6 million (1.4 million for domestic operations and 283,500 on international services) in Jul-2010, with an average load factor of 81.6% (78.7% for domestic and 86.0% for international routes). This follows 1.5 million passengers in Jun-2010 with an average load factor of 75.4%.

Thai AirAsia, Indonesia AirAsia may convert debt into equity when listing

In other Asia Pacific LCC news, AirAsia CEO Tony Fernandes stated Thai AirAsia and IndonesiaMalaysia Business Times report on 30-Aug-2010. The collective debt of the two carriers is approximately MYR800 million. Mr Fernandes added that AirAsia’s 49% shareholdings in Thai AirAsia and Indonesia AirAsia would be diluted once they are listed. AirAsia may look to convert their debt into equity when they seek listing, according to a

Mr Ferndandes also said the carrier aims to increase ancillary income to USD19.14 (MYR60) per passenger in the next three years. Shares in AirAsia gained 1.9% on Friday.

Tiger financially strongest option for LCC JV

Also in the region, Thai Airways President, Piyasvasti Amranand, commented that the carrier selected Tiger Airways as its partner to launch LCC JV, Thai Tiger Airways, after looking at a number of options, including Jetstar, Dragonair, Cebu Pacific and Lion Air.

Mr Amranand said Tiger was selected as it is financially the strongest and the two airlines have the “same business concept” and “same enemy”. The two are now revising a business plan, to include regional and domestic routes. Mr Amranand said the carrier would not be losing aviation slots to Tiger Airways as a result of the JV.

Cebu Pacific yet to decide on timing for IPO

Meanwhile, Cebu Pacific parent, JG Summit Holdings Inc, stated it is yet to decide the timing of plans to launch an IPO for the LCC. The company said the timing of the offer would depend on approvals from the stock exchange and securities regulator.

Selected LCCs daily share price movements (% change): 27-Aug-2010

Source: Centre for Asia Pacific Aviation, Yahoo! Finance & Reuters

Motor racing-Lotus now fully focused on 2011 car

2010-09-03T11:37:00.000+08:00

27 August 2010

Formula One newcomers Lotus are now fully focused on next season and taking on the sport's established teams, technical head Mike Gascoyne said on Friday.

The Malaysian-owned team are currently best of the three all-new outfits on the starting grid but are still some distance away from the other nine and a long way from scoring their first points.

Friday at the Belgian Grand Prix marked another milestone for the revived marque, returning after the demise of the original Lotus team in 1994.

"Today was the day a year ago that we actually first walked around our factory and there were three of us," recalled Gascoyne.

"Now there are 220 of us. We hope that we can do a better job for next year, so that is clearly where our focus is."

Lotus, run by AirAsia aviation entrepreneur Tony Fernandes, designed their first car in a hurry but Gascoyne said the 2011 one should be a far more considered effort.

"While it is still important for us to try and maintain 10th place in the championship, I think the most important thing as one of the new teams is that we make that step and close the gap to the established teams and we are able to race them properly," he said.

"I think just being on the grid for us was a huge achievement but you are only a new team once and we are not a new team next year. We are a Formula One team and we have to make sure that we are performing as one so we very much switched our focus on to next year's car."

Lotus's best result in 12 races so far has been 13th for Finland's Heikki Kovalainen in Australia in March.

The old Lotus team founded by the late Colin Chapman won seven constructors' titles between 1963 and 1978 as well as six drivers' crowns.

"Gearbox and hydraulics have been a particularly weak area," said Gascoyne of this season's performance.

"We haven't had the resources to put all the fixes in place and I think we have been let down by some suppliers who have not done as good a job as they should have done. But you cannot make excuses. You have got to put things right," he added.

"I think we are now very much on top of it."

Reuters

Win Up to 100 Free AirAsia Flights

2010-09-03T11:35:00.000+08:00

27 August 2010

AirAsia has launched a regional “Tell Us Your Story” promotion, which offers, until 4 October 2010, the chance to win up to 100 free flights.

The “Tell Us Your Story” contest is part of AirAsia’s regional Real People Real Stories branding campaign which is gearing up to celebrate AirAsia’s 100,000,000th guest flown.

Kathleen Tan, Regional Head of Commercial, AirAsia said, “From a humble beginning of two aircraft, one destination and a staff of 250 nearly nine years ago; AirAsia now has a fleet of 95 aircraft (and counting), over 130 exciting destinations and 8,000 staff globally. AirAsia has also been awarded the “World’s Best Low Cost Carrier” by Skytrax for two consecutive years in 2009 and 2010. For the past 9 years, AirAsia has redefined air travel across Asia, and not only made it possible for everyone to fly but helped to fulfilled dreams, create job opportunities, and changed the lives of nearly 100,000,000 people who has flown with AirAsia. The airline has been bridging communities in underserved markets such as Bandung, Banda Acheh, Trichy and Hat Yai which no other airline services. That is the AirAsia story in a nutshell, but it is now time for your story to be heard.”

Share how AirAsia has changed your life for the better in any form and submit it before 4 October 2010. You can blog about it, film it, tweet about it, or in any other creative ways you can imagine and stand a chance to win up to 100 free flights. Entries are encouraged to be tagged with the phrase AA100M.

AsiaTravelTips.com

New LCC terminal may have aerobridges

2010-09-03T10:55:00.008+08:00

27 August 2010

Both MAHB and AirAsia are looking into it

PETALING JAYA: Aerobridges may be a feature at the country’s new low-cost carrier terminal (LCCT) for which the ground breaking is slated for Monday.

Malaysia Airports Holdings Bhd (MAHB) has proposed this facility and AirAsia Bhd is mulling over it.

“We have not used that before but it is a proposal and we will look at it. As long as our cost does not go up (too much) and we can still maintain the 25-minute turnaround time, we will be happy to have aerobridges.

“It would be for the comfort of passengers,” AirAsia Bhd group CEO Datuk Seri Tony Fernandes told StarBiz.

Now come rain or shine passengers have to walk up to board the plane(pic). At the new LCC terminal there may be aerobridges.

AirAsia has resisted aerobridges in the past as it needs to keep its cost base low to enable the airline to offer low fares to travellers. The challenge ahead would be to change with the times and offer comfort whilst still manage at low cost.

The ground breaking, to be witnessed by Prime Minister Datuk Seri Najib Tun Razak, will mark the construction of the new LCCT, which is expected to be completed in 2012.

The RM2bil terminal can handle 30 million passengers and will be close to the existing KL International Airport (KLIA) terminal. There will be 72 gates and a new dual-mode runaway that will allow for 25 minutes turnaround time and increase efficiency.

It is learnt that the LCCT will be modelled after KLIA. A joint venture between UEM Construction Sdn Bhd and Bina Puri Holdings Bhd will build the terminal.

Wanting to consider MAHB’s proposal for the aerobridges bodes well for the renewed friendship between the two which had a nine-year spat.

“We had a good meeting with MAHB recently and things are progressing the right way. We should finally, after 11 years, have a terminal that will propel our growth,’’ Fernandes said.

The new LCCT is an important step for the industry. Even though its construction has been delayed from its original completion date of 2011, Fernandes is no longer furious.

To him, an airport with better facilities and amenities is worth the wait. In the interim, the existing LCCT terminal will be extended to cater for growth.

“I think, after nine years, we have seen some good cooperation between us and huge economic benefits. We have discussed with MAHB the development of permanent LCCTs at Kota Kinabalu, Kuching and Penang. We also intend to use Langkawi much more.

“The next three to four years looks exciting for us. With the airport development, we expect to see tremendous growth potential. The new airport will make KLIA a premier hub in Asia and that augurs well for our business.”

MAHB managing director Tan Sri Bashir Ahmad could not be reached for comments.

It is unclear if the express rail link (ERL) will be extended to the new LCCT. Fernandes is proposing that KTM Bhd consider linking the new LCCT with its current network to give an alternative to travel from the north to south of the peninsula and at the same time, promote tourism.

By B.K.Sidhu

The Star

AirAsia celebrates the Spirit of Merdeka with Low Fares!

2010-09-03T10:51:00.001+08:00

25 August 2010

Domestic fares from RM9* and international fares from RM29*

AirAsia, the leading and largest low cost carrier in Asia has more low fares coming your way with its Merdeka Sales campaign. Fares start from as low as RM9* to domestic destinations and from RM29 to international destinations. The Merdeka campaign is a tribute to all Malaysians in achieving 53 years of Independence.

Ultra low fares for the Merdeka Sales are available up to 12 days from 24 August - 5 September 2010. However, low fares are on first come first served basis and is offered exclusively online. The travel period for this Merdeka Sale promotion is from 3 January 2011 to 31 March 2011.

Travel from Kuala Lumpur to Langkawi, Alor Setar, Johor Bahru, Penang, Kota Bharu and Terengganu from RM29*; and to East Malaysia from as low as RM49*. Select from exciting destinations and sexy getaways such as Siem Reap, Bandung, Jakarta, Krabi and Saigon from RM69*, while many other destinations throughout China are also on sale with value-for-money fares.

Alongside the Merdeka Sale which runs up to 5 September, AirAsia is also holding a special Merdeka Sale for Indian destinations which is available for booking from 24 August - 12 September for the same travel period of the Merdeka Sale as well. Enjoy low fares to cities such as Bangalore and Hyderabad from as low as RM149*, while fares for Kolkata, Kochi, Hyderabad, Trivandrum, Trichy and Chennai (from both Kuala Lumpur and Penang) starts from RM199*.

Kathleen Tan, Regional Commercial Head, AirAsia Berhad said, "This is a month of celebration, both for our guests and AirAsia as well, as it is the Merdeka month for Malaysia and for AirAsia. It is a dual celebration as the airline is gearing up towards achieving our 100 millionth guests soon. AirAsia has been synonymous with its low fares and liberating air travel and we have always strive for the best and have been innovating products and services from time to time for the benefit of our loyal guests."

To further add value to our campaign, AirAsia X is also offering its destinations for the Merdeka Sale with fares from as low as RM199* to China (Tianjin), Taiwan, India (Delhi, Mumbai), from RM249* to Australia (Gold Coast, Melbourne,) and from RM699* to London. Guests may take this opportune deal to travel early next year for an adventurous or leisure trip across South East Asia and beyond with Kuala Lumpur as the gateway hub.

Azran Osman-Rani, CEO of AirAsia X commented, "We are proud of our country and having to celebrate Malaysia's 53 years of Independence proves how far we have strived thus far together as a nation. AirAsia X is no stranger in the Malaysian business scene, and we pride ourselves as being part of 1 Malaysia. Without the rakyat, we would not be where we are today. We thank the rakyat for their support and there's no other way than to offer our continuous low fares to our guests, in light of the Merdeka spirit. Guests may take this opportunity to plan for their next year travel and make use of both AirAsia and AirAsia X vast route network for a fantastic holiday venture over 132 routes to 70 hot destinations."

To add value, AirAsiaGo.com offers a selection of more than 70,000 hotels worldwide apart from personalized tour packages with unbeatable prices. Log on online and find out more on the various tour packages that will suit every budget.

TravelBlackBoard

Low dividend payout by AirAsia if any

2010-09-03T10:42:00.000+08:00

24 August 2010

PETALING JAYA: While analysts approve of AirAsia Bhd’s move to pay dividends, they expect the dividend payout will not be significant yet.

The budget carrier, which has been listed since 2004, do not have a dividend policy. However, the group is now considering to pay dividend to its shareholders.

HwangDBS Vickers Research said that although the dividend payment was positive for AirAsia’s shareholders, it did not expect yield to be attractive, considering AirAsia’s huge capital commitment as it was still at its expansion phase.

A local analyst said although AirAsia could afford to start paying dividend, it need not do so as no one expected the airline to pay dividend.

“Its cashflows are okay but the questions is not about the decision to pay, but by what quantum. It (quantum) makes a difference, for example paying one sen – which still constitutes a dividend although it’s not material – and a payout which gives a decent yield such as 10 sen,” he added.

A bank-backed analyst concurred that AirAsia could afford to pay dividend based on its current cashflow but it would not be as significant yet. He added that investors could invest in dividend stocks such as British American Tobacco if dividend was what they were after.

“AirAsia is a growing company. Investors invest in AirAsia for its growth story. They could pay half a sen to one sen in dividend and it may be more symbolic in the next three years,” he added.

The analyst also said AirAsia needed to restructure its Thai and Indonesian units as both were currently leveraging on its balance sheet.

Another analyst said AirAsia was currently on an expansion phase and would required large capital commitment. Hence, its dividend yield would not be as attractive.

“I don’t think it will be that much. In terms of yield, it may not be that attractive,” she said.

Yesterday, a local daily reported group CEO Datuk Seri Tony Fernandes as saying the group was planning to propose a dividend policy by the third quarter of this year.

AirAsia has been mulling over a dividend for some time. In June, Fernandes said AirAsia was in a much better position to consider paying dividends to its shareholders after solving some issues within the group.

Although it has announced its intention to pay its maiden dividend, the carrier has not given any indication on when the first payout will be.

As at June 30, AirAsia has a short and long-term borrowing of RM7.58bil and a deposit, bank and cash balances of RM858.1mil.

“The borrowings are mainly in the form of term loans which are for the purchase of new Airbus A320-200 aircraft,” it said in notes accompanying its latest quarterly results.

For the quarter ended June 30, AirAsia posted a net profit of RM198.9mil for the three months to June 30, a 43% jumped from RM139.2mil in the previous corresponding period, on a turnover of RM940.6mil.

By Leong Hung Yee

The Star

AirAsia says hello to Hat Yai with inaugural flight from Kuala Lumpur

2010-09-03T01:40:00.001+08:00

20 August 2010

AirAsia, the world’s best low-cost airline celebrates its inaugural flight to Hat Yai from Kuala Lumpur signifying AirAsia’s final connection to South Thailand with a 90 percent flight load.

Kathleen Tan, Regional Commercial Head, AirAsia says: “There has been a demand for AirAsia to connect Hat Yai to Kuala Lumpur, and we are excited to fulfill this demand of an unserved market. AirAsia is the only airline to connect Hat Yai direct from Kuala Lumpur with daily flights. This new route was opened for sale recently in June, and the response has been encouraging. With AirAsia’s vast network and excellent connectivity, travelers from Hat Yai can now connect all over the world via AirAsia’s regional hub in Kuala Lumpur to all ASEAN countries, China, India, Australia and Europe with ultra low fares. It will also be more convenient for frequent travelers to Hat Yai to fly instead of driving long hours, which will translate into more time for shopping and sightseeing at Hat Yai.”

“This route adds another significant milestone for us as it is AirAsia’s final connection to South Thailand, which reiterates our commitment to expand the ASEAN market. We recently completed our network to all ASEAN countries from Kuala Lumpur in July with our newly launched Kuala Lumpur to Yangon flight. With this new addition, AirAsia now has a total of 140 flights weekly from Kuala Lumpur to Bangkok, Chiang Mai, Krabi, Phuket and now Hat Yai,” Tan added.

AirAsia’s Thai affiliate, Thai AirAsia also flies to Hat Yai from Bangkok with 4 flights daily.

FLIGHT SCHEDULE

Flights From Departure / Arrival Flight No Frequency

KUALA LUMPUR – HAT YAI 1145hrs / 1200hrs AK 770 Daily

HAT YAI – KUALA LUMPUR 1235hrs / 1445hrs AK 771 Daily

Peanuts!Online

Aviation: AirAsia retires the last Boeing

2010-09-03T01:37:00.001+08:00

20 August 2010

As from today, AirAsia flies entirely Airbus aircraft. The airline says that using single make - with as few models as possible - increases efficiency in a number of ways:

- crew do not need to be trained on multiple aircraft types - a substantial cost for carriers with a mix of e.g. Boeing and Airbus and a range of different models and configurations

- the stock of spares required is much reduced, thereby cutting overhead and the risk that stock will become redundant and therefore significantly reduce in value

- servicing is cheaper: maintenance crews do not have to be trained on multiple aircraft and work more quickly because they work exclusively on one kind of plane.

AirAsia group inherited a mix of aircraft when it took over the airlines that became AirAsia Indonesia and AirAsia Thailand.

The Chief Officers' Network Aviation

AirAsia Q2 net profit 43% up on higher passenger load

2010-09-03T01:08:00.001+08:00

19 August 2010

PETALING JAYA: AirAsia Bhd’s net profit jumped 43% to RM198.9mil for the second quarter ended June 30, from RM139.2mil a year ago, on the back of strong growth in passenger volumes, ancillary income and higher average fares.

Its revenue for the quarter was 26% higher at RM940.6mil from RM747.9mil a year ago. It reported earnings per share of 7.2 sen versus 5.9 sen a year ago.

For the six months ended June 30, AirAsia posted a net profit of RM423mil on revenue of RM1.82bil.

While AirAsia posted a record quarter, Malaysia Airlines posted a net loss of RM535mil due mainly to derivative losses from its fuel hedges. MAS’ revenue stood at RM3.2bil for the quarter ended June 30.

In a teleconference yesterday, group CEO Datuk Seri Tony Fernandes was confident of a strong second half for AirAsia. He sees a tremendous upside for its operations in Thailand and Indonesia while its ancillary income registered massive growth.

“Forward bookings are looking very good, The fourth quarter is traditionally our strongest quarter. To head into our strongest season on the back of a soaring first quarter and a record-breaking second quarter puts us in a fantastic position,” he said.

During the second quarter, the group’s core operating profit for the period was RM168.5mil, a 31% increase over RM128.4mil core operating profit achieved a year ago.

The core operating profit margin for the period was at 17.9%, 0.7 percentage point higher than the 17.2% core operating profit margin achieved a year ago.

“There were no unrealised translation gains in the quarter as gains from the slight strengthening of the ringgit were offset by losses from the change in the fair value of currency derivatives,” it said in the notes accompanying AirAsia’s financial results.

Commenting on its ancillary growth, Fernandes said: “We have actually reached our target of RM40 spending per pax that we set for the last quarter. We have unearthed a gushing revenue stream that can boost the bottom line and also serve as a buffer to rising fuel prices.”

He said baggage fees and AirAsia Cargo were significant contributors to ancillary income for the group.

Meanwhile, AirAsia’s associates Thai AirAsia Co and Indonesia AirAsia recorded good performance in the second quarter.

“Indonesia AirAsia has staged a strong turnaround and we expect greater things,” Fernandes said, adding that passenger volume grew by 10% year-on-year to 947,786 from 863,440 last year.

In the second quarter, Thai AirAsia recorded a net profit of RM4.9mil on revenue of RM267.4mil while Indonesia AirAsia’s net profit rose to RM39.6mil on revenue of RM233.2mil.

During the quarter, the group carried a total of 6.07 million passengers while the load factor increased to 77% from 75% in the same period last year.

Fernandes said its cost per average seat per km (ASK) of 3.62 US cents was mainly due to higher average fuel cost. He said the average fuel price in the second quarter was US$100 per barrel against US$60 a barrel in the same period last year.

However, its revenue ASK grew by 26% to 4.88 US cents in the second quarter from 3.87 US cents perviously. “I think we remained prudent with hedging, but it’s very useful too – that we’re not trying to bet where the market’s going, we’re just trying to match our forward sales with our oil hedging,” he said when asked on its hedging status.

Fernandes said its net gearing was expected to improved after the deferment of aircraft in 2011. “We have deferred seven A320s for 2011 to 2015. We are planning to reduce aircraft deliveries to 10-12 from 2012 onwards,” he said. He expected AirAsia’s gearing ratio to be below two times from 2011 onwards.

On aircraft financing, he said the financing for all the aircraft in 2010 was secured. As of June 30, the group has a total of 85 planes. Of the total, 50 planes are for Malaysian operations, while Thailand has 20 and Indonesia 15.

Fernandes was confident that the group’s cash balance would surpassed RM1bil by year-end. It has a current cash balance of RM858mil.

“We’ll easily surpass that by year-end. We will be getting re-payment from our associates in Thailand and Indonesia.” He added that with the listing of associates, the amount due from associates could potentially be converted to new shares to maintain shareholding in Thai AirAsia and Indonesia AirAsia.

“It is very premature for me to comment. We believe we have a very strong brand in Thailand. We are not duly concerned. We are not focusing on our competitor, but ourselves,” Fernandes said when commenting on Tiger Airways’ venture into Thailand.

Analysts contacted said AirAsia’s strong performance was above their expectation.

“They (AirAsia) did superbly despite the significant rise in the fuel bill due to the higher oil prices. And that’s largely thanks to the strong growth in ancillary income which sort of ‘offset’ the higher fuel expenses. The deferment of aircraft significantly reduces the debt burden, and should contribute positively to earnings via lower financing costs and better yields through higher loads,” an analyst said.

Another analyst said AirAsia’s operational numbers look very good and were slightly above his expectations.

By Leong Hung Yee

The Star

AirAsia reports 'record' 2Q results; SpiceJet up 20% in Jul-2010; Skymark holiday traffic soars 35%

2010-09-03T01:05:00.001+08:00

19 August 2010

AirAsia, the Asia Pacific region’s largest LCC, has proven its staying power in a slow but recovering market in 2Q2010, turning in what it describes as a "record quarter" for second quarter revenues. The carrier commented that the result builds on the “momentum of its first quarter profits” and sets the stage for a “potentially dynamic” second half.

AirAsia reported a 43% increase in net profit in the second quarter (three months ended Jun-2010) to USD63 million, and a 25.8% gain in revenue to a record USD299 million, as a recovering economy boosted passenger traffic (+11% to 3.9 million for Malaysian operations), load factors (+2 ppts to 77%) and average fares (+8% to USD54.70). Profit before tax rose a more modest 4%, while EBTIDAR was up 9%.

AirAsia shares have risen by 24% since the start of the year, below Tiger Airways' 26.5% rise but outperforming the Malaysian benchmark KLSE's 8.3% increase. The carrier’s shares were down 1.8% ahead of the result.

In other AirAsia news, the LCC confirmed it is working with Sovico Holdings Joint Stock Company to develop a suitable structure for the proposed venture in Vietnam. It includes the option of AirAsia initially providing operational and management services to Vietjet Aviation Joint Stock Company for a prescribed period before an investment is made.

SpiceJet handled 540,000 pax in Jul-2010; load factor of 77%

Meanwhile, shares in SpiceJet slipped 0.3% yesterday. On the same day, the Indian Ministry of Civil Aviation reported that SpiceJet witnessed a 20.3% increase in domestic passenger numbers in Jul-2010 to 540,000, to be the fourth largest carrier in the domestic market, behind Kingfisher Jet Airways (782,000, +14.8%) and Air India (708,000, +21.6%). Overall domestic passenger numbers increased 13.5% to 4.1 million. SpiceJet load factors stood at 76.8% in the month. (815,000, -1.7%),

IndiGo receives approval to purchase 150 aircraft

In other Indian news, non-listed LCC, IndiGo, reportedly received approval from the Indian Government to purchase 150 aircraft over the next two to three years to be used on international services. The carrier will have completed five years of operations in Aug-2011 making it eligible to launch international services.

Tiger Airways shareholders sell SGD125m in shares

Meanwhile, Tiger Airways shareholders sold approximately SGD125 million (USD93 million) in the carrier’s shares, at a price of SGD1.90 per share. CEO, Tony Davis, Ryanasia Ltd and Indigo Partners LLC sold 65.8 million shares combined. Shares in the carrier slipped 1.0% yesterday.

Skymark pax soar over peak summer period

Meanwhile, Skymark shares soared 6.0% yesterday. The carrier witnessed a 35% jump in domestic passenger numbers over the peak summer vacation period, between 06-Aug-2010 and 15-Aug-2010, to 129,489 passengers, despite overall passenger numbers slipping 1% to 2.7 million.

Source: Centre for Asia Pacific Aviation, Yahoo! Finance & Reuters

AirAsia net profit up 43% for 2Q2010; Air New Zealand expanding services to Japan

2010-09-03T00:43:00.005+08:00

19 August 2010

AirAsia (-1.8%) declined for Wednesday (18-Aug-2010) despite reporting a 43% year-on-year improvement in net profit for the three months ended 30-Jun-2010 to USD63.2 million. The result came as revenues rose 26% for the quarter to USD298.8 million, while the cost of sales rose 33.6% to USD167.2 million.

The Group also reported strong yields for the period, with revenue per ASK (RASK) for Malaysian operations up 15% to USD 5.03 cents. AirAsia Thailand reported a 8% rise in RASK, to USD 4.74 cents, while AirAsia Indonesia RASK was up 19%, to USD 4.74 cents.

CEO, Tony Ferndandez, stated forward bookings are “looking very good”, with the fourth quarter traditionally its strongest. As a result, the carrier is in a “fantastic position” heading into its strongest season, following improved results in the first and second quarters.

See related report: AirAsia perspective

See related CAPA Profile: Financial Results

Capital Group increases shareholding in Qantas

Qantas (+2.8%) ended the day higher after news The Capital Group Companies Inc purchased 28.9 million shares in Qantas for AUD71.1 million between 07-Jun-2010 to 16-Aug-2010, increasing its stake from 8.25% to 9.53%.

The carrier has been edging higher after improved financial results for FY2009-10 and talk of plans to expand operations as demand, particularly in business markets, returns.

Air New Zealand expands services to Japan

Air New Zealand announced during trading it has more than tripled the number of charter flights it will be operating from Japan to New Zealand this summer in response to a resurgence in demand from this high-spending tourism market. Between 26-Dec-2010 and 03-Apr-2011, Air New Zealand will operate 14 return charter flights to Auckland from nine departure points across Japan. General Manager Japan, Edward Overy, stated the carrier is deliberately focusing on new tourists from key regions across Japan including Nagoya, Fukuoka, Sapporo, Okinawa, Sendai, Kumamoto, Hiroshima, Miyazaki and Kagoshima. These visitors will complement those already travelling on Air New Zealand's 12 scheduled services from Tokyo Narita and Osaka Kansai each week. The charter flights will utilise 230-seat B767 aircraft.

Indian airlines report improved passenger numbers for Jul-2010

Kingfisher Airlines (+4.4%) advanced, despite the Indian Ministry of Civil Aviation reporting a 1.7% year-on-year decline in the carrier’s domestic passenger numbers for Jul-2010 to 815,000. The carrier had a load factor of 79.3% for the month.

The carrier reportedly plans to sign a codeshare agreement with British Airways in Sep-2010. Kingfisher is due to join the oneworld alliance in 2011 with BA, one of the alliance’s founders, serving as sponsor.

Jet Airways (-0.6%) slipped, despite reporting a rise in passenger numbers of 14.8% for the month to 782,000. LCC subsidiary, JetLite also experienced an improvement in passenger numbers, up 15.8%, to 308,000. Load factors were 73.8% and 76.6%, respectively.

SpiceJet (-0.3%) was also down. The carrier reported a 20.3% increase in passenger numbers for Jul-2010 to 540,000, while load factor totalled 76.8%.

See related CAPA Profile: Traffic and Capacity

Elsewhere, China Airlines (-2.1%) and Malaysia Airlines (-1.8%) ended the session in negative territory, while Skymark Airlines (+6.0%) was the day’s biggest gainer.

Asia Pacific selected airlines daily share price movements (% change): 18-Aug-2010

Source: Centre for Asia Pacific Aviation, Reuters & Financial Times

AirAsia faces battle against rival LCCs

2010-09-03T00:22:00.001+08:00

18 August 2010

KUCHING: Thai AirAsia is expected to face a number of new potential rivals on its position as Thailand’s leading low-cost carrier (LCC).A joint venture of low-fare airline AirAsia Bhd (AirAsia) and Thailand’s Asia Aviation, Thai AirAsia is currently the sole low-cost airline operating both domestic and international flights from Suvarnabhumi Airport.

However, Thai Airways and Tiger Airways had announced earlier this month that they intended to start a new LCC in Thailand to compete against Thai AirAsia. The new airline, which will be 51 per cent owned by Thai Airways and 49 per cent by Tiger Airways, would be called Thai Tiger Airways (TTA) and operate from January or February next year.

CIMB Investment Bank Bhd (CIMB Investment) reported that the added competitive pressure from TTA was undoubtedly negative as it could force Thai AirAsia to lower its fares and give up several percentage points in profitability

However, the latter had the benefit of incumbency, a well-recognised brand, a wide and well-connected network through links with the larger AirAsia group in Malaysia and Indonesia, both of which provided for customer convenience and a larger fleet with greater economies of scale.

“As a result, we expect Thai AirAsia to survive the onslaught relatively well. TTA, on the other hand, must be prepared for at least two years of losses as it attempts to wrest market share through promotional offerings and heavy marketing,” said CIMB Investment in its research note.

From a balance sheet point of view, if the competition became too fierce and operating cash flow at Thai AirAsia turned negative, AirAsia might have to continue financing the working capital requirements of its Thai unit.

“In our view, an increase in financial support will probably be unnecessary given that a recapitalisation of Thai AirAsia is on the cards upon its listing, which is slated by mid-2011,” added the research firm.

However, the presence of TTA might reduce the valuation multiples realised by TAA on its initial public offering (IPO) and lower the value of AirAsia’s equity in TAA.

Furthermore, potentially lower profitability at TAA due to competition might also reduce its operating cash inflows and slow the pace at which TAA’s debt to AirAsia was repaid. AirAsia would probably be receiving only partial repayment from TAA, given that some of its working capital loan could be capitalised into TAA equity before the IPO.

Moving away from the Thai AirAsia story and to something more positive, AirAsia’s efforts to defer the deliveries of the A320s would significantly reduce capital expenditure (capex) levels and gearing ratios.

“This is positive because in just three years, we expect the net debt-to-equity ratio to fall from 2.61 times in financial year (FY) 2010 to only 1.84 times in FY12. The lower capex (capital expenditure) may also allow AirAsia to consider paying its maiden dividend sometime this year or next,” the research firm said.

Meanwhile, Indonesia AirAsia had been adopting a niche strategy of international routes as it could not effectively compete against larger rivals like Lion Air in the domestic market.

“With fewer aircraft allocated to Thai AirAsia and Indonesia AirAsia, the associates will be able to use their operating cashflow to pay down related-party debt owed to AirAsia, rather than accumulate rising amounts of unpaid aircraft leasing charges,” said the research house.

Conclusively, the aircraft delivery deferrals would enable AirAsia to move away from aggressive topline growth in favour of profit growth as slower capacity growth could help lift yield and load factor.

BorneoPost

AirAsia X low fare promotion

2010-09-03T00:11:00.001+08:00

16 August 2010

PETALING JAYA: Travelers are in for a real treat with the latest low fare campaign offered by AirAsia X.

The three-day campaign, from Aug 17 to 19 for travel from 1 April to 11 August, 2011, offers unbelievable low fares to all of its destinations except Korea.

Dubbed the X-traordinary low fare campaign, the offer is limited and available on a first-come, first-served basis and made exclusively online via www.airasia.com and mobile.airasia.com.

Besides offering free seats to Mumbai and New Delhi with guests merely paying airport tax from as low as RM25 one way, the airlines is also offering fares from as low as RM499 to London.

Australian destinations such as Gold Coast, Perth and Melbourne are available from RM199 whilst fares to China are offered from as low as RM99 to Tianjin and Chengdu and from RM149 to Hangzhou.

The fare to Taiwan is also offered from RM149.

AirAsia X has also revamped its economy class seats with new ergonomical, reclineable seats at 31 pitch equipped with comfortable adjustable headrests.

Guests will also have the opportunity to experience the new comfortable flatbed Premium seats on AirAsia Xs brand new A330 and A340 aircrafts with premium low fares from as low as RM449 to India, from RM499 to Taiwan, from RM549 to China, from RM899 to Australia and from as low as RM2,249 to London.

Premium seat guests will get to enjoy the following premium complimentary product and services: Pick A Seat, Priority Check-in, Priority Boarding, Priority Baggage, Baggage Allowance, Combo Meal and Comfort Kit made-up of a pillow and a blanket.

AirAsia X chief executive officer Azran Osman-Rani said the promotion was the best opportunity for guests to maximize on the airlines extensive route network to travel to more places with its amazing low fares.

“Our aggressive promo campaign on both our economy and premium class seats will allow guests a better flying option and choice of comfort.

“With our rapid expansion plans, AirAsia X is committed and poised to position Malaysia and Kuala Lumpur as its dynamic capital, as Asia's biggest low-cost hub,” said Azran.

He added guests could start planning and booking their flights for their next year travel plans and take advantage of Kuala Lumpur’s status as a gateway to Asia, Australia and Europe and connect globally.

Those flying on the AirAsia X network are also offered fares from as low as RM1 from Kuala Lumpur to Penang, Alor Star, Johor, Kota Bharu, Singapore, Begawan and Hatyai among others.

The offer, for the travel period as same as the international routes campaign, was kicked off on Aug 10 and will end on Aug 19.

Guests can also get online hotel deals and tour packages via AirAsiaGo at www.airasiago.com where they have wide choice tours, activities and accommodation in over 70,000 hotels worldwide.

All fares quoted are applicable for one-way travel only and is inclusive of airport tax.

By Wani Muthiah

The Star

AirAsia’s Q2 revenue expected to rise 16%

2010-09-02T21:35:00.000+08:00

13 August 2010

KUALA LUMPUR: AirAsia Bhd’s revenue for the second quarter is estimated to rise 16% compared with the previous corresponding period and 4% higher quarter-on-quarter to RM928mil on higher fare and traffic, said stockbroking research company ECM Libra Investment Research.

It said this would make the first half revenue hit 50% of the budget airline’s RM3.6bil target for the current financial year ending Dec 31.

“Revenue is expected to be sustained at 21.5 sen per km in the first quarter of the current financial year, higher by 33% year-on-year. We expect overall cost/available seat kilometres to rise year-on-year to 11.5 sen/available seat kilometres mainly on higher jet fuel,” it said in a statement yesterday.

The company also said it expected AirAsia to record 5% year-on-year higher adjusted net profit of RM135mil (up 22% quarter-on-quarter), assuming that non-fuel cost remained unchanged on a quarterly basis.

– Bernama

AirAsia tickets sell like hot cakes

2010-09-02T21:32:00.000+08:00

12 August 2010

PETALING JAYA: Over half a million AirAsia tickets were snapped up within a day when the airline’s “Mind Blowing Fare” promotion of RM1 per seat started on Tuesday.

AirAsia also recorded its highest number of sales in an hour, selling 36,871 seats, which is a 47.5% increase from the previous record of 25,000.

The campaign offers flights to selected domestic and Asean destinations at RM1, including Alor Setar, Johor Baru, Langkawi, Penang, Singapore, Bandung (Indonesia), Phnom Penh (Cambodia) and Krabi and Phuket in Thailand.

The RM1 fare is applicable for one-way travel only and does not include taxes.

AirAsia group chief executive officer Datuk Seri Tony Fernandes said the low-cost airline credited a newly implemented system for expanding its booking capacity.

“With the new booking system New Skies, AirAsia can now accept up to almost one million flight bookings a day,” he said in a statement yesterday.

Booking for the RM1 air fare campaign is open until Aug 15, 2010 and is valid only for travelling next year between April 1 and Aug 11.

When asked about the return ticket price, AirAsia communications executive Daphne Cheah said “our fares are based on a tier system.”

“We (AirAsia) might say return fares are from RM50, but if it’s all snapped up and people can’t find it, we would be branded liars.

“We try not to put return fares as it may mislead people,” she said, adding that AirAsia kept to its practice of displaying one-way fares.

The Star

AirAsia conquers Hong Kong with major branding campaign

2010-09-02T21:22:00.003+08:00

10 August 2010

AirAsia, the world’s best low cost airline, which is synonymous to the word innovation, continues to paint Hong Kong skies red with a major branding campaign which includes a series of activities across Causeway Bay, Central, major beach areas and MTR trains.

The Hong Kong public can expect AirAsia giant floating billboards across major beach areas such as Stanley, Repulse Bay, South Bay and Clear Water Bay from 7 Aug with fun and exciting promoters at the beach clad with iPads for instant registration to sign up for AirAsia’s RedA!ert email and AirAsia’s Hong Kong Facebook Page. The public can also stand a chance to win a surprise from AirAsia when they snap photos with the AirAsia team throughout this campaign by the beach.

The AirAsia brand will be hard to miss with its exciting and vibrant billboards around Hong Kong. AirAsia is bringing its presence in Hong Kong to the next level as it flies to five sexy destinations in Asia – Sabah (daily), Penang* (daily) and Kuala Lumpur (3x daily) in Malaysia; as well as Phuket (daily) and Bangkok (2x daily) in Thailand with a total of 56 flights a week from Hong Kong.

*Flights from Hong Kong to the pulsating island of Penang will be increased to DAILY from 4x weekly effective 7 September 2010.

AirAsia offers an array of services which is world-class with affordable fares. The relatively young airline, who will be turning nine in December this year has been awarded the World’s Best Low Cost Airline by Skytrax for two consecutive years for both 2009 and 2010, which has been voted by over 18 million air travelers.

This branding campaign is also in conjunction with AirAsia’s gear-up to celebrate its 100,000,000th guest flown. The great 100 million guests milestone is proof that AirAsia caters to every market including locals and expatriates throughout the region, including Hong Kong.

TravelBlackboard

AirAsia X notches record sales for Seoul route

2010-09-02T21:19:00.000+08:00

10 August 2010

PETALING JAYA: Long-haul budget airline AirAsia X has set a new sales record for its new destination Seoul, South Korea, with over 80,000 seats snapped up.

The airline recorded over RM20mil in introductory sales for its RM99 fare to Seoul through bookings on its web portal, surpassing those for London, Melbourne and Taipei.

Flights on the new route between Kuala Lumpur and Seoul will start on Nov 1.

Its chief executive officer Azran Osman-Rani said the airline was thrilled about flying more tourists to Malaysia from Seoul, following the Government’s approval for its flight to Incheon International Airport.

“We are confident that the route will also deliver strong new passenger traffic, similar to the significant growth rates we have recorded for the Melbourne, Perth and London routes which grew by 41%, 66% and 31% respectively last year,” he said.

The airline, he added, expected over 100,000 passengers for its daily Seoul service in the first year of operation.

Azran said AirAsia X had also received overwhelming interest from the Korean public, who were keen to take advantage of the low fares it offered to travel to Malaysia during winter.

“Tourists from Malaysia and other neighbouring countries will also be able to enjoy South Korea during the winter season and opt for a skiing holiday as there are many ski resorts in the country,” he said.

Azran said the airline would also work with the Korea Tourism Organisation and Tourism Malaysia to launch campaigns and offer travel packages to lure in tourists from South Korea.

The Star

AirAsia launches Mega Sale Promotion

2010-09-02T21:14:00.000+08:00

09 August 2010

AirAsia has launched a Mega Sale with promotional fares available for travel in 2011.

One-way fares from KL to Kota Bahru, Langkawi and Penang start from A$3 while flights from KL to Kuching, Miri or Sandakan are from just A$7 one-way; Krabi, Phuket or Phnom Penh are from A$10; Bangkok, Jakarta or Jogyakarta from A$14; and flights to Chiang Mai, Bali or Hanoi are available from A$29. Flights to Colombo, Bangalore or Shenzhen start from just A$48.

The booking period runs from 10 August to 15 August 2010 for travel between 1 April 2011 – 11 August 2011.

AirAsia X head of commercial Darren Wright said, “These deals provide one of the cheapest ways to get around Asia and see some amazing destinations ... For those who get in early these are some of the best fare deals on offer. A perfect opportunity to hop around Asia without breaking the bank.”

AsiaTravelTips.com

Teenager Nabil to drive Lotus Racing F1 car during testing

2010-09-01T23:34:00.001+08:00

07 August 2010

KUALA LUMPUR: Malaysian karting prodigy Nabil Jeffri will get an insight into Formula One racing when he takes part in Lotus Racing’s aero test in the United Kingdom next month.

The 16-year old is currently competing in Formula BMW Pacific with Eurasia Motosport. It has been a good start to his motor racing career as he is placed fifth in the standings.

Taking part in the aero test will provide invaluable experience in motor racing.

NEW COMER: Datuk Seri Dr.Tony Fernandes (right) and Nabil Jeffri, the lotus Racing's new driver for testing, at the press confrance in Kuala Lumpur yesterday.Starpic by S.S.KANESAN)

Nabil’s stint with Lotus Racing is part of the AirAsia Asean Driver Development programme, which is aimed at providing youths in the region the chance to pursue their dream of becoming professional racers.

Lotus Racing principal Datuk Seri Tony Fernandes said yesterday that it was great to be able to provide the opportunity for a young driver like Nabil to get a taste of driving an F1 car and gaining experience through the programme.

“This programme is designed at offering young drivers the chance to hone their skills and as a platform for them to develop and compete against top class racers,” he said after announcing Nabil’s stint under the programme at a leading hotel here yesterday.

“Nabil has huge talent and we are confident that he will benefit from driving in the aero test. He is among the young drivers who we hope will make the grade in the future.”

Nabil, meanwhile, is excited at the prospect of driving for Lotus in the aero test.

“This is a big break for me and I must thank Lotus Racing for the opportunity. Driving the Lotus car will be a priceless exposure to F1 racing.

“I hope to get more such stints to help me develop as a top driver. I am also thankful for being a part of the AirAsia Driver Development Programme,” he said.

The Lotus Racing team drivers are Jarno Trulli and Heikki Kovalainen while Malaysia’s Fairuz Fauzy is the test driver.

Fernandes said that Nabil would be able to get a better insight into F1 by talking to and learning from Fairuz.

By S.Ramaguru

The Star

Tune Group to sponsor Premier League refs

2010-09-01T22:34:00.001+08:00

06 August 2010

The Tune Group, the entertainment and leisure brand founded by the owners of low-cost airline AirAsia, has signed a six-figure deal to become official shirt sponsor for referees and match officials in the Premier League, Football League and FA Cup.

Tune Group: official shirt sponsor for Premier League match officials

The three-season deal will commence from the beginning of the 2010/11 season, which gets underway this weekend.

The partnership gives Tune Group access to 2,000 professional football matches, with an estimated cumulative global TV audience of more than three billion.

The partnership delivers a range of designation and promotional rights, including shirt-sleeve and training-wear branding on all professional match referees, assistant referees and fourth officials, branding and accreditation on all publicity material, the Professional Games Match Officials (PGMO) and all governing body websites, as well as match official and refereeing inventory.

Mike Riley, general manager of PGMO, said: "I’m very positive that our new relationship with Tune Group will further help the development of refereeing in this country and throughout the world."

Air Asia was previously the key sponsor for the PGMO, but the sponsorship has now moved to the parent group in an effort to make the brand, which also owns Tune Hotels and finance brand Tune Money, a more visible presence in the UK market.

Tune Hotels will open its first European hotel later this month in London, and is expected to follow this with rapid expansion of its chain in the UK and Continental Europe.

The Malaysian-based business is also responsible for a number of other major brands including AirAsia X, the world’s first low-cost, long-haul carrier, Formula 1 team Lotus Racing, and the Association of Southeast Asian Nations (ASEAN) Basketball League.

Mark Lankester, Tune Hotels Group chief executive, said: "We have seen how AirAsia and AirAsia X benefited from this sponsorship before, by establishing its brand in such a mature, competitive market as the UK. With Tune Hotels opening its first London property later this month, this sponsorship by Tune Group could not be more timely.

"Communicating to English football’s three billion viewers globally presents the Tune Group of Companies with a powerful global branding tool for us in enhancing our brand awareness, not only facilitating our regional expansions but, most importantly, connecting with our customers."

Formed in 2001 to improve refereeing standards, the PGMO group officiates across all the Premier League, Football League and FA Competitions. It is involved in the mentoring of 77 referees and 225 assistant referees.

Currently, PGMO has a knowledge transfer programme that benefits entire confederations, such as the Asian Football Confederation, which has a future referees project supported by PGMO, as well as individual football associations in Japan, Australia, New Zealand and Canada, which work in partnership with PGMO to improve the performance of their own officials.

By Mark Banham

Marketingmagazine.co.uk

Tiger Airway returns to profitability, AirAsia defers aircraft, Cathay forward bookings “very good

2010-09-01T22:28:00.002+08:00

06 August 2010

Tiger Airways’ shares surged 4.2%, as the carrier reported a 45% increase in revenues in the thee months to Jun-2010 (to USD107 million), with a return to profitability at both the operating and net levels (to USD591,000 and USD1.4 million, respectively).Tiger Airways’ yields improve, but unit costs also up

Passenger numbers increased 39% in the period to 1.5 million, while average fares and revenue per ASK also showed signs of improvement, increasing 4.3% (to USD57) and 24% (to USD 4.74 cents), respectively. Cost per ASK, however, also increased, by cost per ASK up by double-digits (+16.6% to USD 4.71 cents, with ex-fuel and forex unit costs increasing 5.5% to USD 2.67 cents).

Deferment of aircraft boosts AirAsia shares

Shares in AirAsia soared 10% yesterday, to more than a 30-month high, buoyed by the carrier’s decision to defer the delivery of seven aircraft.

AirAsia Group CEO, Tony Fernandes, commented: “Our share price is beginning to show its true potential, but, once people start analysing properly after the second quarter, they will see even more value”.

While the market reaction was favourable, analyst commentary was mixed. Some analysts commented that the deferment would enable the LCC to optimise its fleet capacity while reducing capital expenditure and net gearing, while others saw the decision as allowing the market to absorb the available capacity.

ECM Libra Investment Research estimated the impact of the deferrals to be a 2.2% increase in FY2011 earnings per share as lower interest expenses and depreciation outweighs capacity cutbacks. However, FY2012 earnings per share will be reduced by 3.6%”.

Meanwhile, Kenanga Research commented: “Although the fleet expansion will be relatively less aggressive for FY2011, AirAsia could benefit from lower operating and fuel costs from this deferment and perhaps this will allow the group’s internal restructuring, such as listing of its associates, and solve the overhang issues in its balance sheet”.

Meanwhile, OSK Research downgraded AirAsia from “buy” to “neutral” as a result of the deferrals, with a target price of MYR1.60.

China Airlines, Eva Air rise after cross-strait flights report

Shares in China Airlines and EVA Airways gained in Taipei Trading yesterday, on reports that Taiwan and China Mainland would resume talks on additional cross-Strait services on 05-Aug-2010. EVA shares reached an intra-day high during morning trading, for the highest share price level since 03-Jul-2010, closing the day 6.8% higher, while China Airlines shares gained 0.5% by day-end, reaching its highest level since 26-Jun-2008 during intra-day trading.

See CAPA Hot Issue page on Cross-Strait Aviation.

Cathay forward bookings “looking very good”

Shares in Cathay Pacific gained 4.5% in Hong Kong trading yesterday, the biggest gain in almost eight months, after CEO, Tony Tyler, commented that reservations are "looking very good" as a rebounding economy revives travel demand. Mr Tyler said: “We can look forward to the next six months with some confidence. Forward bookings are looking very good for the rest of the summer. Cargo is looking good for the rest of the year”

Asia Pacific selected airlines daily share price movements (% change): 05-Aug-2010
Source: Centre for Asia Pacific Aviation, Reuters & Financial Times

Deferment of aircraft boosts AirAsia shares

2010-09-01T22:24:00.000+08:00

06 August 2010

PETALING JAYA: AirAsia Bhd’s stock was one of the flavours of the day yesterday, buoyed by its decision to defer delivery of seven aircraft, a move deemed favourable by analysts.

Analysts believed the delivery deferment would allow the budget carrier to optimise its fleet capacity while reducing capital expenditure and net gearing. As at March 31, AirAsia’s net gearing stood at 2.25 times.

Shares in the carrier jumped to more than a 30-month high yesterday, appreciating 15 sen, or 10%, to RM1.65. It was also one of top gainers and the third most active counter with 33.5 million shares traded.

“Our share price is beginning to show its true potential but, once people start analysing properly after the second quarter, they will see even more value,” group chief executive officer Datuk Seri Dr Tony Fernandes said in his Twitter post yesterday.

On Wednesday, AirAsia announced that it had deferred the delivery of seven Airbus A320s to 2015 from the original delivery period next year as it expected infrastructural constraints with the current airport facilities.

The seven planes are now due for delivery from April to November 2015 from the original March to October 2011.

AirAsia said slowing the deliveries would allow it to optimise its fleet and avoid costs associated with leaving the aircraft idle or underutilised due to infrastructural limitations.

Analysts said AirAsia might have doubts that the new low-cost carrier terminal (LCCT) would be completed on schedule, hence the deferment. They said more importantly, AirAsia’s aircraft deferral would not involve any penalty.

While some analysts agreed with the company’s reasons to defer given the uncertainties over completion of the new LCCT, they said the deferment might allow the market to absorb the available capacity.

“AirAsia has been very aggressive with the latest route to Seoul, South Korea. Deferring the aircraft will let the market absorb the capacity available first,” an analyst said.

ECM Libra Investment Research said based on its assumptions, earnings impact to AirAsia (which does not equity account its associates) was likely to be minimal.

“We estimate that the deferment will result in a 2.2% increase in FY11 (financial year ending Dec 31, 2011) earnings per share as lower interest expense and depreciation outweighs capacity cutbacks. However, FY12 earnings per share will be reduced by 3.6%,” it said.

AirAsia is expected to release its second quarter results on Aug 18.

The International Air Transport Association expects global airlines to post a profit of US$2.5bil in 2010 from a loss of US$2.3bil last year and say Asian carriers should do well.

“Although the fleet expansion will be relatively less aggressive for FY11, AirAsia could benefit from lower operating and fuel costs from this deferment and perhaps this will allow the group’s internal restructuring, such as listing of its associates, and solve the overhang issues in its balance sheet,” Kenanga Research said.

It added that with the deferment, the earnings growth for FY11 would depend on yield play and further cost efficiency on the back of growing demand for low-cost carriers in the improving airline industry.

By Leong Hung Yee

The Star

Promotional offer from AirAsia X

2010-09-01T21:41:00.000+08:00

05 August 2010

Passengers flying AirAsia X, the low-cost long-haul affiliate carrier of AirAsia, from New Delhi to Kuala Lumpur can avail themselves of a Re.1 promotional offer which is being offered by the airline on the occasion of launch of its services here.

As per the offer, passengers will have to pay a one-way fare of Re.1 plus airport taxes of Rs.2,377. On return, however, regular fares will be applicable.

This is the second Indian city in the airline's network after Mumbai where operations were launched in May.

The inaugural flight of AirAsia X from Kuala Lumpur to Delhi landed with 300 passengers earlier this week at Indira Gandhi International Airport's Terminal-3 which recently commenced international operations.

“The passengers were not just from Kuala Lumpur but also Australia and other countries,” AirAsia X chief executive officer, Azran Osman-Rani said at the launch of the airline's services here on Thursday.

The promotional offer can be availed of between August 10 and September 30 for which passengers should book their tickets on August 7 and August 8.

Daily flights will operate from Kuala Lumpur to New Delhi and back.

The Hindu

AirAsia in talks for budget hotel in Brunei

2010-09-01T21:24:00.002+08:00

05 August 2010

AirAsia is interested to “do more” for its Brunei-based customers, including a possible third flight and a budget hotel in the Sultanate.

AirAsia CEO Dato’ Sri (Dr) Tony Fernandes, told the Borneo Bulletin in an interview, “We’d like to do freedom flights out of Brunei.”

However, he doesn’t think it’s realistic at the moment until “the Brunei government gives us more flexibility”.

He also recommended the nation’s national carrier, Royal Brunei Airlines, to concentrate more on their premium passengers as “not everyone wants to fly AirAsia” taking into consideration that some passengers prefer first class services.

“RBA should focus on that market and allow AirAsia to serve more people and bring more business to the economy,” he said and added that by allowing more flexibility would also encourage economic growth as more tourists would be able to visit the country thanks to cheaper flight fares.

He also said that the award-winning airline will try to provide more connectivity for Brunei and allow more individuals further access to other niche areas such as medical tourism. “If we can, we’ll do a third flight (to Kuala Lumpur) as it makes it more and more easy (for Bruneian customers).”

In addition to the cheap-fare airline, Dato’ Sri (Dr) Tony Fernandes is also the founder of the Tune Hotel that has been established in many countries, the latest being in London. Brunei, he added, will also have a budget hotel “real soon” as the CEO’s marketing team is currently “in discussion” with several parties here in Brunei and added “(We’ll) try to do it for BND$10,” which would be “possible, depending on the cost of the hotel”.

Commenting on Bruneian customers, he said: “I think they’re fantastic,” whilst adding that they have personally shared with him their appreciation of AirAsia and how “it’s made their lives more easier”.

“Sometimes we let them down with long delays etc but they’re very understanding and supportive.

“I’m very appreciative for the support and the genuine warmth we have received from Brunei,” he added.

By Siti Hajar

news.brunei.fm

AirAsia defers delivery of A320s

2010-09-01T21:21:00.000+08:00

05 August 2010

PETALING JAYA: AirAsia Bhd has deferred the delivery of seven Airbus A320 to 2015 from the original delivery period next year as it foresees infrastructural constraints with the current airport facilities.

The low-cost carrier in a filing to Bursa Malaysia yesterday said it had signed an amendment agreement with Airbus SAS for the revision of delivery dates.

The seven planes are now due for delivery from April to November 2015 from the original March to October 2011.

“With the deferment, the delivery of aircraft in 2011 shall be reduced to eight planes from the original 15. Also, the number of aircraft delivery in 2015 will increase to nine from the planned two,” it said.

AirAsia said until the new low-cost carrier terminal was constructed, the present infrastructure at the terminal would not be able to accommodate AirAsia’s fleet expansion in the number of aircraft originally scheduled to be delivered in 2010 and 2011.

“The rationale to further scale down on the delivery of aircraft in 2011 is to enable AirAsia to optimise 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.

The Star

AirAsia X crossing trans-Tasman

2010-09-01T21:18:00.001+08:00

04 August 2010

AirAsia X could be including flights between Australia and New Zealand by the end of the year but will not be catering to popular cities Melbourne and Sydney.

The Sydney Morning Herald reported the airline, which is 16 percent owned by AirAsia, is expected to designate flights from the Gold Coast and Perth to either Auckland or Christchurch.

Mr Osman-Rani said, "The airline would have a golden opportunity to enter the trans-Tasman market if Virgin Blue's proposed alliance with Air New Zealand resulted in the airlines shedding flights."

TravelBlackBoard

AirAsia holds contest for 100mth guest

2010-09-01T21:11:00.001+08:00

03 August 2010

KUALA LUMPUR: Low-cost carrier, AirAsia, will hold a contest, called The Real People, Real Stories: COMMENT & WIN to celebrate its 100 millionth guest flown.

In a statement here today, AirAsia said the contest is open to the public and participation is simple.

"The participants need to comment on any video in any of the five categories listed in AirAsia's YouTube page -- www.youtube.com/AirAsia.

"Comments can be about how the viewer relates to the video, how the viewer has been moved by the video or simply an opinion," it said.

The airline said the top 100 comments could look forward to RM5,000 worth of AirAsia e-gift vouchers up for grabs.

The contest will run from Aug 4-Sept 5, 2010.

- Bernama

Indonesia AirAsia denies bankruptcy rumor

2010-09-01T21:09:00.000+08:00

03 August 2010

The Indonesia AirAsia management has denied that the low-cost airline was on the brink of bankruptcy following its plan to close two local routes in October.

"We want to clarify the rumor. We are not bankrupted," AirAsia spokesman Audrey Progastama said on Tuesday as quoted by kompas.com.

He said Jakarta-Surabaya and Jakarta-Medan routes were closed as the airline began to focus on international routes instead of domestic routes.

Passengers who have bought tickets for the two routes will get reimbursement, he added

Airplanes from the two routes will serve Surabaya-Singapore, Surabaya-Bangkok, Surabaya-Kuala Lumpur, Medan-Singapore, Medan-Kuala Lumpur, and Medan-Hongkong/Maca routes, Audrey said.

He claimed that the Indonesia AirAsia load factor in the second quarter of 2010 reached 75 percent, a 9.8 percent increase from the same period of last year.

The Jakarta Post

AirAsia joins budget airline boom in Korea

2010-09-01T20:58:00.003+08:00

03 August 2010

While low-cost carriers are gearing up to provide affordable air travel for budget-savvy tourists, AirAsia seeks to lead the way by opening up a new route via Seoul.

AirAsia, Asia’s largest low-fare airline, announced at a press conference on Monday its newest international route starting Nov. 1, which will connect Kuala Lumpur and Seoul.

To mark the launch of its latest route, the Malaysian company introduced a promotional round-trip fare of 120,000 won ($102.30) including all taxes and fees, for the travel period from Nov. 1 to Aug. 11, 2011, for those who book tickets on its website between Aug. 4 and Aug. 8.

After the promotional period, travelers will be able to purchase tickets for 25 to 30 percent lower than traditional airlines charge, depending on their purchase date, for the daily operation.

It took more than a year for the airline to earn an approval from the government, noted Azran Osman-Rani, CEO of AirAsia X, AirAsia’s long-haul affiliate.

“Seoul has been our priority market for the long-haul destination since 2007,” he said. “Malaysians have gone crazy about the Korean Wave. We couldn’t wait to launch this route for so long.”

According to an online survey conducted by AirAsia on social networking websites such as Facebook and Twitter, more than 2 million customers picked Seoul as the No. 1 destination they wish the airline to fly to.　

Seoul is the eleventh destination for the Malaysian company followed by cities in Australia, India, Taiwan, China and the U.K.　

AirAsia’s CEO Azran Osman-Rani poses with the Korea Tourism Organization’s president Lee Cham (fourth from right) at a press conference in Seoul on Monday.

Established in 1993, AirAsia was named the world’s best low-cost airline for two years in a row in 2009 and 2010 by Skytrax, a U.K.-based aviation research firm.　

Currently, AirAsia and AirAsia X operate more than 132 domestic and international flights collectively through a fleet of 94 aircraft.

The market for low-fare flights has grown over the past several years with an increasing number of budget carriers flying across Asia Pacific, enabling cost-sensitive customers to enjoy air travel more affordably.

Major players in the Asian sector such as Tiger Air, Thai Air and AirAsia have brought challenges to legacy European and American carriers, offering no-frills service at dramatically reduced prices, with a wide variety of options on in-flight services.

In spite of growing global demand, Korea has not been an easy market for budget carriers during the past few years.

In 2008, Singaporean Tiger Air initially intended to fly from Korea to China, Japan and Russia beginning in August last year, but eventually withdrew the plan after delays in its application process, due to the global economic slowdown and regulatory uncertainties.

Organizations like the Center for Asia Pacific Aviation argued that Korean government protectionism has been a major hurdle for the market, as the Ministry of Land, Transport and Maritime Affairs failed to reject a request brought by national airlines to protect themselves from competition with overseas companies in 2008.

Meanwhile, Yeongnam Air and Hansung Airlines, two Korean low-cost carriers, suspended operations in 2008, citing rising competition and lack of demand.

By Shin Hyon-hee (heeshin@heraldm.com)

TheKoreaHerald

Mohd Zulfahmi aims for eight more points

2010-09-01T14:09:00.000+08:00

30 July 2010

SEPANG: After completing the first half of the 125cc world motorcycling championship with two points, AirAsia-Sepang International Circuit rider Mohd Zulfahmi Khairuddin is now aiming for another eight points before the end of his debut season.

Zulfahmi bagged his first point in Catalunya (Spain) before adding another in Sachsenring (Germany). He finished 15th in both races.

Zulfahmi said it was a dream to collect the two points.

The plan: AirAsia CEO Datuk Seri Tony Fernandes talking about how the airline intends to continue supporting Mohd Zulfahmi (second from right) as Sepang International Circuit CEO Razlan Razali looks on at the go kart circuit in Sepang Thursday.

“I’m still learning the ins and outs of the championship. As such, I’m happy to collect the two points so far,” said Zulfahmi, who is taking a break in Banting as the 125cc race was not contested in the recent leg in the United States.

“There is still a long way to go in the championship. We have nine more races to go and my aim is to keep on improving. My target is to collect another eight points to make it 10. It’s going to be tough but I’m going to work hard for it,” added Zulfahmi.

Zulfahmi’s next race is the Czech Grand Prix in Brno from Aug 13-15.

By ShamShul Fitri

The Star

4-Year Old from Bali Benefits from AirAsia’s ‘Donate Your Loose Change’ Campaign

2010-09-01T14:08:00.000+08:00

29 July 2010

I Wayan Arya sila Arsadhana, a 4-year old from Bali Indonesia, underwent a successful heart correction surgery at the National Heart Institute recently. He is the latest beneficiary of AirAsia’s ‘Donate Your Loose Change’ Campaign, one of the airline’s Corporate Social Responsibility programmes kick-started in 2008 to raise funds to help needy heart patients to carry-out treatment at the institute.

The child’s father, I Wayan Mudiarta, said, “I’d like to thank AirAsia for helping my child gain a normal life. His condition is very much improved after the surgery. I wish AirAsia all the best, and I praise the airline’s noble effort in providing assistance and care to those in need.”

AirAsia also contributed free flights from Bali to Kuala Lumpur for the child and his parents. I Wayan Arya was referred to the institute with severe cyanosis, a physical sign causing bluish discolouration of the skin and mucous membranes. Cyanosis is caused by a lack of oxygen in the blood. It is seen in infants at birth as a result of heart defects, respiratory distress syndrome, or lung and breathing problems.

According to Dr. Sivakumar Sivalingam, who attended to I Wayan Arya’s case, the child is responding very well to the treatment and showed tremendous progress. A thorough check-up was performed including an echocardiogram, which did not show any further problems with the child’s heart. I Wayan Arya is expected to enjoy a healthy and exponential growth post-surgery, as the heart defect which affected his development has been successfully corrected.

The ‘Donate Your Loose Change’ campaign raises funds to help needy heart patients to carry-out treatment at IJN. Launched on the 1st February 2008, funds are collected from generous passengers travelling on all AirAsia flights.

AsiaTravelTips.com

AirAsia carries 10.6% more passengers in Q2

2010-09-01T14:06:00.000+08:00

29 July 2010

KUALA LUMPUR: AirAsia Bhd carried 10.6% more passengers in the second quarter ended June 30 compared with the same period last year.

According to its preliminary operating statistics for April to June that were released yesterday, AirAsia carried 3.89 million passengers in the second quarter compared with 3.52 million a year ago.

The carrier’s load factor increased to 77% compared with 75% previously.

Its available seat kilometres, which measures the airline’s passenger capacity, rose 9.1% to 5.94 million in the second quarter.

Meanwhile, its revenue passenger kilometres, which measures the volume of passengers carried by the airline, rose 14.6% to 4.32 million.

For its Thai operation, AirAsia carried 1.24 million passengers in the second quarter, 11% higher from the same period last year. Its load factor increased from 70% to 75%.

For its Indonesia operation, the number of passengers carried improved by 9.8% to 947,786 while load factor remained at 75%.

The Star

AirAsia evaluating domestic Australian operation

2010-09-01T14:05:00.000+08:00

28 July 2010

Malaysia-based AirAsia is evaluating whether to launch a domestic operation in Australia.

Azran Osman-Rani, the CEO of AirAsia's long-haul carrier Asia X, made the announcement on the sidelines of the Australia Pacific Aviation Outlook Summit in Sydney.

AirAsia's launch of an Australian base would depend on one of the existing mass-market carriers moving up-market and the remaining carriers rationalising capacity and increasing fares, Azran says.

"The way it is now, if you've got three players competing aggressively for the mass market segment that's all the industry can take," Azran says.

Although he does not explicitly name Virgin Blue, the latter has made clear its intention to increase its corporate market share and continue to move away from its low-cost roots.

Virgin Blue moving up-market would leave Tiger Airways and the Qantas Group's Jetstar Airways as the only domestic carriers targeting Australia's mass market. Under Azran's reckoning, Virgin Blue leaving the market would create room for AirAsia.

"If the market dynamic changed and suddenly there is space and existing players start to rationalise fights and increase fares, it will be very tempting," he says of AirAsia launching a domestic Australian operation.

An AirAsia operation in Australian would easily have a lower cost base than Tiger and could offer cheaper fares consistently, says Azran.

He adds the carrier would use Airbus A320s and would be majority foreign-owned. The Australian market is unique for permitting majority foreign-owned carriers to operate domestically.

Australia is also attractive to AirAsia for its transparent regulations, says Azran.

"It's a lot easier to operate here than it is trying to get into markets like Vietnam," he says. AirAsia has partnered with Vietnam's VietJet to create a low-cost carrier in Vietnam. But Vietnamese regulators have objected to the carrier using AirAsia's name. Vietnamese regulators also took issue with Jetstar group's Jetstar Pacific carrier using Jetstar branding. Earlier this month Vietnam released two Jetstar Pacific executives who since December had been barred from leaving the country while regulators investigated the carrier's fuel-hedging losses.

AirAsia has subsidiaries in Indonesia and Thailand in addition to its partnership in Vietnam.

FlightGlobal.com

AirAsia Celebrates Malaysia’s 53 Years with Promotion

2010-09-01T14:04:00.001+08:00

28 July 2010

AirAsia is celebrating Malaysia’s 53 years of nationhood by launching a “Malaysia’s Favourite Airline” promotion.

AirAsia is offering fares starting from as low as RM53 to selected destinations from Kuala Lumpur to Brunei, Alor Setar, Bintulu, Johor Bahru, Langkawi, Penang, Kuching, Miri and many others. In addition to that, there are also other international sectors such as Krabi, Chiang Mai, Bangalore, Jakarta, Shenzhen, Yangon and many others which are offered from RM93 during this promotion.

“The “Malaysia’s Favourite Airline” campaign echoes our commitment in offering low fares to the rakyat. It also demonstrates our appreciation and gratitude to our guests for being loyal to us throughout these 9 years. AirAsia has empowered Malaysians to fly and in fact we have flown 15.23 million passengers alone last year is testament that we are indeed the preferred choice amongst Malaysians,” said Kathleen Tan, Regional Head of Commercial, AirAsia. “With our amazing low fares, Malaysians can now visit and renew social ties with families, friends and relatives, develop business ties, indulge in leisure holidays to domestic or international destinations such as to India, Thailand, Indonesia, Vietnam and China. We hope that our revolutionary low fares will persist to grant more freedom and dreams to fly.”

The promotion is valid for booking until 1 August 2010 for travel between 9 August 2010 and 15 November 2010.

AsiaTravelTips.com

AirAsia load factors up, Jetstar expands long-haul, Tiger’s vertical seating, Virgin’s middle ground

2010-09-01T13:55:00.002+08:00

28 July 2010

AirAsia has significantly enhanced its traffic reporting, releasing monthly operating statistics for each of its Malaysian, Thai and Indonesian operations for the first time, reproduced in full here.

The Malaysian operation enjoyed rising load factors in Apr-2010 and May-2010, with occupancy rates peaking at 80% last month (as in Jun-2009). Average stage lengths have been relatively flat, while the carrier had 50 aircraft in operation at the end of Jun-2010, up from 47 in the same month last year.

AirAsia’s Malaysian operating highlights: Apr-2010 to Jun-2010

Thai AirAsia has also enjoyed rising load factors, although they are averaging around 4-6 ppts below the Malaysian operation. Thai AirAsia is growing its average stage lengths by up to 20% year-on-year, as it expands its international network, while its fleet has reached 20 aircraft, up from 17 in Jun-2009.

AirAsia’s Thai operating highlights: Apr-2010 to Jun-2010

Indonesia AirAsia’s load factors are also below the Malaysian operation, but a shade above the Thai unit. Its average stage lengths are also rising in the double-digit range year-on-year as it too expands its international presence. See related report: Five Indonesian airlines seek rights to Australia: Batavia, Sriwijaya, Mandala, Lion Air & AirAsia

Indonesia AirAsia operated 15 aircraft as at the end of last month, one fewer than the same period last year. Despite this, it expanded capacity by 29%, as a result of improved aircraft utilisation.

AirAsia’s Indonesian operating highlights: Apr-2010 to Jun-2010

(1) Number of earned seats flown. Earned seats comprise seats sold to passengers (including no-shows) and
seats provided for promotional purposes
(2) Number of seats flown
(3) Number of Passengers carried as a percentage of Capacity
(4) Available Seat Kilometres (ASK) measures an airline’s passenger capacity. Total seats flown multiplied by
the number of kilometres flown
(5) Revenue Passenger Kilometres (RPK) is a measure of the volume of passengers carried by the airline.
Number of passengers multiplied by the number of kilometres these passengers have flown
(6) Number of flights flown
(7) Number of operational fleet including spares
Source: AirAsia Bhd

AirAsia X considering New Zealand options

The group’s long-haul operation, AirAsia X, is meanwhile considering joining the competitive tussle on routes between Australia and New Zealand by the end of the year, possibly operating services between the Gold Coast and Perth and either Auckland or Christchurch. The carrier sees the potential alliance (and any capacity rationalisation) between Air New Zealand and Virgin Blue as a “golden opportunity” to enter the trans-Tasman market.

Jetstar to expand long-haul routes

Jetstar meanwhile will today announce further long-haul international network expansion plans. In May-2010, Jetstar confirmed plans to base two A330-200s in Singapore to launch long-haul services to Australia, North Asia and Europe from late 2010. The destinations will be revealed shortly.

Tiger Airways to mine ancillaries, introduce “vertical seating”

Tiger Airways Australia Managing Director, Crawford Rix, announced yesterday that the LCC fares. would introduce charges for toilets, baggage and introduce "vertical seats," in a bid to put further downward pressure on

Virgin Blue standing its ground

Virgin Blue’s Group Executive, Commercial Liz Savage has declared the airline will not give up the "very strong foothold we enjoy today in the leisure space" as it concurrently aims to gain a greater share of the corporate travel market.

Asia Pacific LCC stocks rise

In trading yesterday, Tiger Airways gained 0.5% in Singapore, AirAsia rose 1.4% and Virgin Blue was flat.

Selected LCCs daily share price movements (% change): 27-Jul-2010

Source: Centre for Asia Pacific Aviation, Yahoo! Finance & Reuters

AirAsia eliminates the FX guesswork

2010-09-01T13:52:00.002+08:00

27 July 2010

AirAsia’s new foreign exchange solution cuts out the uncertainty when dealing in multiple currencies.

No treasurer likes balance sheet surprises. Unfortunately, when working in Asia, where multiple currencies are a way of life, surprises are more the norm than the exception.

Enough was enough for AirAsia. Last month, the low-cost carrier implemented a Royal Bank of Scotland (RBS) foreign exchange (FX) solution for its online ticketing that automatically sets prices in any one of five global currencies -- the Australian dollar, Hong Kong dollar, UK sterling, Singapore dollar and US dollar. That gave its customers certainty about what would be charged on their credit card bills (and freedom from the ever too common conversion fees) and it gave the airline's treasurer peace of mind about cash flow.

"It gives certainty and transparency to our passengers and into our revenue," said Rozman Omar, group chief financial officer at the airline, on the solution. "But most importantly we will get the best FX rates possible." The solution uses RBS FXmicropay, an automated small-value payment tool, which is seamlessly integrated with AirAsia's internet booking system and the bank's currency trading desk. All transactions are priced immediately using spot market prices and the rate is locked in through settlement.

Omar said that he expected some positive impact to the company's bottom line, but would not provide any estimates.

Abdul Aziz bin Abu Bakar, non-executive chairman of AirAsia, pointed out that, while they may not be able to provide any specific numbers, the new solution is a customer-facing service with the main goal of making it easier for passengers to buy tickets online.

"Our principle has always been to give as much convenience to our passengers as possible. This is another service that we are providing to our passengers. When they want to buy seats online, they can do it without giving a second thought as to the exchange rates that they will be subjected to," he said.

Though neither Omar nor Bakar said it, the solution could help the airline boost sales by simplifying the online ticketing process.

AirAsia's website processes more than a million transactions each week, selling tickets for more than 80% of the 14.2 million passengers it carried last year. According to RBS, FXmicropay can handle up to 3,000 transactions per second -- or 259 million per day. The airline reported approximately M$2.8 billion ($671 million) in revenue, 86.9% of the group's total, from ticket bookings last year.

Prior to implementing the online payment solution, AirAsia worked with RBS on aircraft financing, interest rate swaps, fuel hedging and foreign exchange derivatives. Omar said they started talking about implementing FXmicropay in the second quarter of 2009 and began integration with their reservation system that November. The solution went live on May 12 after final central bank approvals were received.

Payments in Malaysian ringgit -- something that seems a given for a company based in the country -- were initially not covered by the solution but were added during the last week of May. Omar said that RBS had already expanded its FXmicropay currency capabilities to include additional Asian currencies in order to meet the needs of the airline. He added that the Thai baht and Indonesian rupiah would be available by the end of June.

Next steps

For now, the FX payment solution is limited in scope to just online bookings. Yes, it will guarantee a portion of AirAsia's revenues will be protected from exchange rate volatility, but it is just a small step towards the comprehensive regional or global treasury solutions that have been implemented at other airlines, which often include features such as cash pooling and sweeping, currency hedging and interest bearing overnight accounts.

"The treasury system we have now is still very much proprietary and we work closely with another bank on cash management," said Omar.

"We are now looking into the possibility of regional cash management with RBS as the next step. With FXmicropay newly in place and taking into account other areas of our banking relationship with RBS, it does make it easier for us." He would not name the institution AirAsia currently has a cash management relationship with.

While the airline bides its time on whether to implement a regional or global treasury solution, FXmicropay -- or a payment product like it -- would be beneficial to many customer-oriented businesses in Asia. For the same reasons it benefits AirAsia, the solution could provide customers of hotels or online retailers, such as the Peninsula Group or Alibaba.com, clarity over the amount they are getting charged and the treasuries of those companies certainty of their receivables. "Lots of other businesses could make use of it," said Omar. "It's about giving convenience to the cardholders to choose what currency they would like to be charged in."

by Edward Russell

This story was first published in the June 2010 issue of FinanceAsia magazine.

Final bids invited for third ground handling licence

2010-09-01T13:47:00.001+08:00

26 July 2010

Changi Airport Group (CAG) announced that it has launched the second stage of a two-phase tender process for a third ground handling licence at Singapore Changi Airport. In this phase, four shortlisted companies, namely AirAsia Berhad, Aircraft Service International Group, Jetstar, and SIA Engineering Company, have been invited to submit their detailed bids including their business and financial plans for the provision of passenger handling, apron handling and cargo handling services.

Following expressions of interest in the licence from the four shortlisted companies, CAG held discussions with each of the companies to seek feedback on specifications for the tender. As a result of this consultation, CAG has revised the tenure of the licence from five to ten years. While the preference is for a licensee to offer the full suite of ground handling services, bidders have the option to propose offering a limited range. Only one licence will be awarded.

The tender closes on 17 September 2010. CAG will evaluate the business proposals of each bidder based on a set of defined evaluation criteria, such as the company’s track record, and how it plans to drive innovation and build its business and operations at Changi Airport. The successful bidder is expected to commence operations in the first quarter of 2011.

A third ground handler will provide the 89 airlines currently operating at Changi Airport with more choice and a more competitive ground handling market with potential benefits in terms of service quality, range of offerings and price.

In the first five months months of 2010, Changi Airport handled 16.6 million passenger movements, 729,000 tonnes of cargo and more than 106,000 flights.

TravelBlackBoard

AirAsia ramps up flights for ‘Balik Kampung’

2010-09-01T13:42:00.000+08:00

24 July 2010

AirAsia is increasing its flight frequencies for selected cities throughout the festive season of Hari Raya between 3 September – 17 September 2010.

The destinations

included for the additional flights are Kuala Terengganu (from 3x daily to 9x daily), Kota Bharu (from 6x daily to 12x daily), Langkawi (from 7x daily to 11x daily), Solo (from once daily to 5x daily), Yogyakarta (from once daily to 3x daily), Medan (from 4x daily to 6x daily) and Surabaya (from 4x daily to 8x daily).

Kathleen Tan, Regional Head of Commercial, AirAsia said: “With the additional flights, it will be more convenient for our guests to travel safely and comfortably back to their hometowns and celebrate Hari Raya with their family and loved ones. We hope that by planning and announcing the additional flights earlier, our guests will be able to beat the usual ‘balik kampung’ rush.”

ExpressIndia.com

High flyer Darren Wright new AirAsia X Head of Commercial

2010-09-01T13:37:00.000+08:00

22 July 2010

Leading low-cost airline AirAsia X has appointed its General Manager Australia Darren Wright to the position of Head of Commercial ahead of its proposed public listing.

Mr Wright, who has been with the Malaysian-based carrier since its inception in November 2007, will head up all commercial and marketing functions for AirAsia X across its long-haul network covering destinations in Australia, China, India, Taiwan and the United Kingdom.

The role has been created ahead of the airline's plan to list as a separate entity of its parent company AirAsia in the second half of next year.

Mr Wright will be based in Kuala Lumpur and will report to AirAsia X CEO Azran Osman-Rani, and will in the short term split his time between the Malaysian capital and his hometown of Brisbane. He will continue to oversee commercial operations in Australia.

"It's an exciting time for AirAsia X with the proposed listing, network growth and big plans to fly to more exciting destinations like Korea and Japan, and with the move to the NewSkies booking platform, connectivity across the entire network is also a core focus for us," Mr Wright said.

"Since its maiden flight between Kuala Lumpur and the Gold Coast in 2007, I'm proud to have been a part of AirAsia X growing into an award-winning airline which is now reaching sufficient scale economies to stand on its own instead of relying on services provided by AirAsia.

"I'm thrilled that I will be able to continue helping this exciting airline further expand as it enters its next growth phase."

Mr Wright's previous roles include Marketing Manager at Virgin Blue Airlines, National Marketing Manager for Flight Centre and Queensland Manager of global music provider DMX Music.

AirAsia and AirAsia X have been named the 2009 and 2010 World's Best Low Cost Airline in the annual World Airline Survey by Skytrax, as well as the Centre for Asia Pacific Aviation (CAPA) Airline of the Year in 2009.

AirAsia X was the first low-cost carrier in the world to introduce flatbed seats with standard business class specifications which feature universal power sockets, adjustable headrests and built-in personal utilities.

The plan to list AirAsia X will give it financial independence from AirAsia and the ability to develop better capabilities in long-haul services. It will also allow the carrier to employ its own wide-body pilots, cabin crew, ground staff and commercial and marketing teams.

AirAsia X's Australian routes include Melbourne, Perth and the Gold Coast from Kuala Lumpur. AirAsia Indonesia also operates a Perth to Bali service.

TravelBlackBoard

AirAsiaMegastore.com now online

2010-09-01T13:34:00.001+08:00

22 July 2010

Fans of AirAsia can now expect much more than travel services with the launch of the airline's online shopping portal tomorrow.

The world's best low-cost airline is rolling out AirAsiaMegastore.com, an online portal which offers consumers worldwide a more convenient and greener way to shop. The online store is open 24 hours everyday. It offers an extensive range of branded and affordable products, many of which are sold at lower than retail shelf prices.

AirAsiaMegastore.com is the first innovative online shopping portal launched by a low-cost airline in the Asia Pacific region.

Johan Aris Ibrahim, Head of Financial Services & Loyalty, AirAsia, said, "AirAsiaMegastore.com amps the shopping experience for consumers, especially those who like hassle-free shopping. Now aside from buying plane seats and other travel-related services from AirAsia, consumers can also buy a wide array of consumer products. Everyone can now easily buy value-for-money merchandise with a few clicks of a button."

"The Megastore reflects AirAsia's focus on expanding ancillary income to contribute revenue to the Group at minimum cost. We're monetizing our website, which attracts millions of visitors each month. Also, the Megastore promotes an environment-friendly way of shopping, and it saves consumers from waiting in queues and traffic jams," he added.

AirAsiaMegastore.com sells AirAsia-branded merchandise as well as travel accessories (including the popular Lonely Planet travel series), electronic gadgets, designer apparel, fashion accessories, health supplements, shoes, cosmetics and more. The products are all guaranteed authentic.

User-friendly features make it easy for consumers to shop and pay online. Online transactions are guarded by tight security systems. AirAsiaMegastore.com accepts payments in any of eight popular currencies, including Malaysian ringgit, Indonesian rupiah, Thai baht, British pound, and Australian, Hong Kong, Singapore and US dollars.

The e-store gives generous rewards to loyal customers. Buyers will get an AirAsia e-gift voucher worth MYR10 (or its equivalent) for every MYR100 spent at AirAsiaMegastore.com from July 20 to August 8, 2010. AirAsiaMegastore.com is also giving grand prizes - free airfare and 3-days/2-nights stay in luxurious hotels in Bali, Langkawi and Kuala Lumpur - to the top three buyers with the highest accumulated spending from July 20 to August 31, 2010.

Payment is easy and convenient, with AirAsiaMegastore.com accepting payments by Mastercard and Visa credit cards issued by Malaysian and international banks. It also accepts direct debit payments via Maybank and CIMB.

Free insurance protection is provided for all goods bought on AirAsiaMegastore.com so that all consumers can shop with peace of mind. The insurance, Megastore Assure, covers lost and damaged goods in transit*.

As of now, products bought may be shipped to 37 countries** in the Asia Pacific, Middle East, Europe and North America. Customers may track shipping progress online.

AirAsiaMegastore.com is looking at later offering duty free items and allowing purchase from mobile gadgets.

TravelBlackBoard

Airasia Named Top Passenger Carrier by Changi Airport

2010-09-01T13:30:00.001+08:00

20 July 2010

AirAsia reaps another award, this time being named one of the top 10 airlines in the passenger carriage category by Changi Airport Group.

The award “recognizes the contribution of airlines to Singapore’s air hub status,” Changi Airport Group said in a statement. AirAsia has been a huge contributor to the growth of passenger traffic at Changi Airport.

Asia’s leading and largest low-cost airline received the award at the Changi Airline Awards ceremony in Singapore last night.

Kathleen Tan, Regional Head of Commercial of AirAsia, received the award for the airline from Mr. Lee Seow Hiang, CEO of Changi Airport Group.

Photo credit: Changi Airport Group

“Changi Airport serves 89 airlines operating over 5,000 weekly scheduled flights to more than 200 cities in some 60 countries and territories,” Changi Airport added.

Singapore is one of AirAsia’s most popular destinations. The airline connects Singapore to 11 popular destinations, including Bali, Bandung, Jakarta and Yogyakarta in Indonesia; Kota Kinabalu, Kuala Lumpur, Kuching, Langkawi and Penang

TravelBlackboard

AirAsia launches its lowest premium long-haul fare

2010-09-01T13:26:00.001+08:00

19 July 2010

Kuala Lumpur AirAsia X, the leading long haul low fare arm of AirAsia has announced it will be offering guests its lowest premium flatbed fares yet – with premium fares from Kuala Lumpur to India, China, Taiwan, Australia and India from as low as RM529 (all in) one way.

The promo fare is available for online bookings from today 19 July until 1 August, 2010 for travel between 2 August 2010 and 15 November 2010.

Guests will be able to enjoy premium fares from as low as RM529* to India (Delhi, Mumbai), RM549* to Taiwan, RM599* to Chengdu, RM699* to Hangzhou and RM799* to Tianjin, China. Premium fares for Australian destinations are offered from as low as RM949* to Perth, RM1, 499* to Gold Coast and Melbourne. Guests opting for Stansted, London on premium will be able to fly premium from as low as RM2, 549*.

The Premium FlatBed seats, which offer executive level comfort for a fraction of typical business-class fares on legacy carriers, have a seat pitch of 60” and are 20” wide. Once in the full bed position, AirAsia X Premium passengers can stretch out to 77”.

AirAsia X’s new premium offering includes complimentary seat assignment, premium check-in, priority boarding, 20kgs baggage allowance, meals and non alcoholic drinks as well as a pillow and blanket.

AirAsia X CEO, Azran Osman-Rani, said: “We are constantly looking for ways to drive down fares and are thrilled to offer our lowest fares yet on the brand new FlatBed seats.”

“With this latest offer both business and leisure travellers can now treat themselves to luxury and still get great savings. Travel expenses are a growing issue for businesses but with AirAsia X’s extra low fares it is now cheaper than ever to stay well connected to clients and business partners.”

ExpressIndia.com

AirAsia offers special ‘Just-for-Two’ deals

2010-09-01T12:37:00.000+08:00

19 July 2010

KUALA LUMPUR: Low-cost carrier AirAsia is offering special fares for two guests as part of its innovative marketing campaign enabled by new features incorporated in the airline's new reservation system.

Under the special "Just for Two" deal, two passengers for domestic flights will be able to travel for as low as RM50 while two passengers on international flights can travel for as low as RM100, both for one-way travel.

Passengers can book online at www.airasia.com or mobile.airasia.com from July 19 to July 25, 2010 for travel between Aug 2 and Nov 15 2010, the company said in a statement Monday.

AirAsia is also offering an Early Bird Promotion for travel next year where guests can book tickets between July 19 and July 25 to make their journey between February 14 and May 8, 2011.

AirAsia's Regional Head of Commercial Kathleen Tan said investment in the new reservation system would enable the airline to stay ahead.

"We have mentioned before that AirAsia guests will benefit from our new reservation and enjoy more savings, so here we are committed to what we have promised to our guests," Kathleen said.

- Bernama

Air Asia to Operate Denpasar-Darwin AirAsia to Fly from Bali to Darwin in October 2010.

2010-09-01T12:32:00.002+08:00

17 July 2010

The Indonesia arm of AirAisa (IAA) have announced their intention to operate direct flights between Denpasar and Darwin commencing October 2010. The service connecting Bali to Australia's northwest will take up routes recently abandoned by the Indonesian national flag carrier Garuda Indonesia.

As reported in Bisnis.com, the President Director of IAA, Dharmadi, said the new service would operate four times a week using Airbus A320 aircraft with a capacity of 180 passengers.

Explaining his airlines decision to fly the new route, Dharmadi said the Denpasar-Darwin route can be flown in just 2 hours, well within the 5 hour flight range of the A 320. Final approval to permit flight operations over the new route, now rests with civil aviation authorities in Jakarta and Canberra. IAA

If approved, operations by IAA between Bali and Darwin will place the Indonesia airline in direct competition with JetStar Australia who also operate this route using A320 equipment.

Dharmadi told Bisnis.com. that the current twice-weekly service is averaging passenger loads above 90%, primarily comprised of Australia tourists.

IAA is targeting to convert their entire armada to A320 aircraft, bringing to 14 the total number of planes in their fleet by the end of November 2010.

49% of IAA is owned by AirAsia Berhad Malaysia. currently operates flights to Australia on the Denpasar-Perth, Western Australia route.

Bali Discovery Tours
BaliDiscovery.com

AirAsia to Increase KL - Brunei Flight; Promo Fares from RM29

2010-08-23T00:28:00.000+08:00

14 July 2010

AirAsia is to increase its frequency to twice daily on the route between Kuala Lumpur and Brunei from 25 August 2010.

To celebrate, AirAsia is offering all-in-fares from as low as RM29 one way for travel between 25 August 2010 and 8 May 2011. Travellers can book the special fare between 14 and 25 July 2010.

Kathleen Tan, Regional Head of Commercial, AirAsia said, “Increasing the frequency for flights to Brunei reiterates our commitment to enhance connectivity in the ASEAN region and to continue in our efforts of increasing traffic, promoting tourism, boosting trade and stimulating the growth of the traveling market between the two countries and around the region. The introduction of this additional morning flight to Brunei will enable business travelers to have the convenience of a day trip to Brunei for meetings and vice versa, thus fuelling the economy expansion of both Brunei and Malaysia and increasing foreign direct investments (FDI). Places of interest in Brunei such as The Royal Regalia Building, Jerudong Park Playground and Jame’ Asr Hassanil Bolkiah mosque will continue to draw in visitors, complemented by greater connectivity via AirAsia.”

AirAsia also flies daily to Brunei from Kota Kinabalu, Sabah.

AsiaTravelTips.com

AirAsia completes New Skies

2010-08-23T00:19:00.000+08:00

11 July 2010

PETALING JAYA: AirAsia has completed the implementation of its new reservation system, New Skies.

The public can now carry out online booking through www.airasia.com, as well as purchases through AirAsia sales offices, counters and the call centre, it said in a statement yesterday.

“All check-in services via the web, mobile and kiosks at the airport are functioning normally along with self-manage options online,” it said.

Among the new features included in the system is the Low Fare Finder where guests will have the convenience of viewing the lowest fare available according to their destination and date of travel.

Guests can also book seats for multi-cities in one transaction now.

AirAsia regional head of commercial Kathleen Tan said guests could look forward to greater savings with the new and more efficient system.

The Star

Air Asia and Lotus Racing partnership takes off

2010-08-23T00:17:00.001+08:00

10 June 2010

AirAsia X officially announced a partnership with Lotus Racing, during the world famous British Grand Prix held at the home of British Motor Racing, Silverstone from 9 – 11 July.

AirAsia X CEO, Azran Osman-Rani and Lotus Racing CEO, Riad Asmat were on hand for the photo call at the Lotus Racing garage along with drivers Jarno Trulli and Heikki Kovalainen. Next to them was the Lotus Racing T127 displaying the freshly placed AirAsia logos on the car.

This announcement is very timely, given that AirAsia X flies directly to a number of destinations where races take place in the current Formula 1™ calendar such as the UK (via Stansted), Melbourne, Malaysia and Shanghai (via Hangzhou). Soon, Korea and Japan can be added to the list as the destinations are soon to be a part of the airline’s rapid growth.

Commenting on the partnership, Azran states, "Teaming up with Lotus Racing is an exciting step for AirAsia X. We admire Lotus Racing as a team which always strives for excellence, a trait similar to that of AirAsia X. Furthermore, as we expand our route network, it is essential that we build our global platform, and a great way to do so is via involvement in Formula One™. Particularly in our upcoming markets of Korea and Japan later this year, and France in early 2011, all of which host legs on the Formula One™ calendar.

“There were people who once doubted AirAsia X’s low cost long haul model, questioning whether it could survive in the current global travel market. We proved them wrong by becoming one of the best in the world! Lotus Racing too had their fair share of skepticism. No one thought the team could even make it to the grid in such a short period of time, let alone be worthy contenders on the track. But they silenced the critics not only by producing the cars on time for the race season, but also by becoming serious contenders in the competition. There’s a lot that we can learn from each other, and we look forward to this relationship with Lotus Racing, taking AirAsia X further into the realms of sports sponsorship,” Azran said.

Riad Asmat, Lotus Racing CEO, added his thoughts, saying: “We are extremely proud to welcome AirAsia X into the Lotus Racing family and are very excited about working together in partnership over the coming seasons. We are both growing fast, and the natural synergies between our two companies will provide us with many very exciting opportunities for Lotus Racing fans and AirAsia X passengers alike – frankly, we can’t wait to get started!”

Partnerships such as with the UK British MotoGP in June (the inaugural AirAsia British Grand Prix), also held at Silverstone, is another example of how powerful sports sponsorships can be as both branding and commercial tools for AirAsia.

AirAsia X's relationship with sports sponsorship began in 2009 with the announcement of being 'Proud Sponsors' of the Oakland Raiders, one of the most prolific teams in the National Football League (NFL) in the United States. The airline also sponsors the Gold Coast Airport Marathon which took place earlier this month, with CEO Azran leading a team of 20 staff runners, as well as providing sponsorship to two runners from Cambodia and Singapore in a bid to enhance the accessibility of Australia to all ASEAN communities through use of their sister airline, low-cost short-haul AirAsia.

Sports sponsorship is very important to AirAsia and AirAsia X, being the most homogeneous mass market which unites countless communities. Through sports sponsorship, AirAsia and AirAsia X is able to not only fulfill the larger vision of the airline by making dreams come true, but also to establish its brand’s equity value - a significant part of its branding effort, enabling AirAsia to become a household brand.

TheLotusForums.com

AirAsia to launch new booking system on Sunday

2010-08-23T00:14:00.001+08:00

08 July 2010

PETALING JAYA: AirAsia Bhd that has invested RM10mil for its new booking system, will see the increase of its booking capacity and more creative marketing promotions post-implementation of the new system effective July 11.

Its regional head of commercial Kathleen Tan said the new system would allow the airlines to book up to almost a million segments a day against the current capability of 480,000 segments a day or 20,000 per hour. A segment constitutes of a booking of one route for instance Kuala Lumpur-Bangkok.

“Commercially, the new system will allow us to do creative marketing for different types of targeted customers such as promotions for senior citizens, buy one free one, multi currency services and free seat log in during normal hours,” she told StarBiz.

AIRASIA BHD REGIONAL HEAD OF COMMERCIAL KATHLEEN TAN: "The new booking system will allow us to do creative marketing."

Presently, Tan added that all booking were done in Malaysian ringgit and free seat log was normally done at midnight.

Apart from innovative sales and marketing campaigns as well as product and service offerings tailored to guests’ preferences, the new system will also enhance self-service facilities, including direct access to their credit shell accounts. The new system will be available starting 6pm (local time) on July 11.

By Sharidan M.Ali

The Star

AirAsia to put in place new booking system

2010-08-22T21:58:00.000+08:00

07 July 2010

Current system to be shut down for three days

KUALA LUMPUR: AirAsia's current booking system will be shut down from Friday to Sunday to allow a new, state-of-the-art system to be put in place.

The new system will be available from 6pm, Sunday, and is touted to be a huge improvement over the current booking system, allowing up to one million bookings daily.

"AirAsia's investment in technology is part of its commitment to give the best services to its guests. We have managed to stay ahead of the pack by smartly using advanced technology to enhance our products and services, and to meet the needs of today's tech-savvy air travelers," said AirAsia Regional Head of Commercial Kathleen Tan in a media statement Wednesday.

"The new and improved system will spell for AirAsia's guests countless benefits, including savings that will come as a result of the more efficient operational processes created by the new system," she added.

As part of the system implementation process, AirAsia's booking services will be temporarily unavailable from 1pm Friday to 6pm Sunday. The airline has notified its customers about the new system implementation.

While AirAsia implements its new system, passenger will not be able to book seats online, at AirAsia sales offices and counters, and through the call centre. They also will not be able to self check in – through the web, by mobile and at the kiosks – or self-manage their booking online. AirAsia will only be accepting cash for purchase of any ancillary product at the check-in counters, including excess baggage fees, during this period.

During the three days, AirAsia passengers will be manually checked in by the airline's staff at the airport check-in counters. Travellers are advised to check in at least three hours before departure to avoid missing their flights.

Hotel bookings and reservations for tours and activities on airasiago.com will remain available throughout the AirAsia system upgrade.

For regular updates, check www.airasia.com, www.facebook.com/AirAsia and www.twitter.com/AirAsiaDotCom.

The Star

Thai Airways, AirAsia and Air China stocks surge

2010-08-22T21:56:00.002+08:00

07 July 2010

Thai Airways and Thai AirAsia’s parent, AirAsia Bhd, gained considerable ground again yesterday, rising by 6.5% and 5.6%, respectively.

See related report: Thai Airways gains as tourism outlook improves

Air China upgraded, ANA benefits from Shanghai Expo

Air China advanced 4.1% yesterday on the same day Daiwa lifted its target price to HKD10.40, with an unchanged “Outperform" rating, noting the airline will benefit from an “aggressive fare increase”. The carrier is raising premium fares for 43 domestic routes from 15-Jul-2010.

Meanwhile, All Nippon Airways (ANA) stated its international passenger numbers surged 29.1% to 362,066 in May-2010, citing last year’s influenza outbreak (which depressed May-2009 figures) and strong demand for China-bound traffic amid the Shanghai World Expo. The number of ANA passengers to Asian destinations surged 35.4%, while US numbers rose 28.6%.

See CAPA Hot Issue on Traffic & Capacity

Asia Pacific selected airlines daily share price movements (% change): 06-Jul-2010

Source: Centre for Asia Pacific Aviation, Reuters & Financial Times

AirAsia announces launch of services to Hyderabad

2010-08-22T21:53:00.000+08:00

04 July 2010

New Delhi AirAsia announced the launch of services from Hyderabad from July 20, 2010.

The launch is also supplemented by an exclusive offer for the local market that provides seats for an amazing low fare.

Talking about the new service, Jasmine Lee Sze Inn, Head of Commercial, AirAsia said, “We are glad to add yet another chapter to our success story in India

. As a gesture of gratification, we have introduced a special limited period offer for the local market here.”

“The service between Kuala Lumpur and Hyderabad has a lot of significance considering large amount of outbound travelers to Malaysia from this region.”, Jasmine Lee Sze Inn added.

AirAsia started their operations in India in the year 2009 with launching services to Trichy and in a very short span, they have extended their operations to Trivandrum, Kochi, Chennai, Kolkata, Mumbai and Bangalore. Hyderabad will be their 8th destination in the country which will be followed by the launch of services in the national capital in early August. AirAsia is committed to providing the best services at low fares. They have also been selected as the World’s Best Low-Cost Airline for two consecutive years by Skytrax in their annual World Airline Survey for providing the best services .

Guests flying on this new Kuala Lumpur – Hyderabad route will have the chance to experience the comfortability on the brand new A320 aircraft which is renowned for its reliability, unparalleled comfort and efficiency. This development is set to distinguish the world’s most successful low-cost airline as a distinctive leader in the market, further bolstering the brand as the advocates of innovation and excellence.

AirAsia’s operations are anchored in its mission to democratise travel, encapsulated in its tagline “Now Everyone Can Fly”. AirAsia’s vast route network in Asia and beyond offers great network and connectivity to the frequent fliers from the city of Hyderabad. They fly to over 70 destinations which stretches across 132 routes servicing a network stretching across all ASEAN countries like China, India, Bangladesh, Sri Lanka and Australia.

ExpressIndia.com

Air China stepping up domestic capacity with order for 20 B737-800s

2010-08-22T11:44:00.000+08:00

28 June 2010

Air China's shares closed steady on Friday after it agreed to purchase 20 new B737-800s to meet rising demand. Air China stated the aircraft would be delivered between 2013 and 2015 and would “strengthen the fleet capacity of the company with an increase of approximately 5%”. The carrier added the transaction would “reinforce the company's market share in the domestic market, and will also increase frequency of flights for a number of domestic and neighbouring international routes."

China Southern Airlines, China Eastern Airlines and Hainan Airlines fell 2.7%, 1.7% and 1.5%, respectively.

Elsewhere, Asia Pacific airline stocks were mostly lower on Friday, with Skymark, Malaysia Airlines, Air New Zealand and AirAsia all falling by 2-3%.

Kingfisher gained 2.1% as the airline stated future oneworld partner, Finnair is looking to partner with the Indian carrier for sales to more Indian destinations, such as Mumbai. Finnair suspended Helsinki-Mumbai service in Apr-2008, but operates daily to Delhi.

Asia Pacific selected airlines daily share price movements (% change): 25-Jun-2010

Source: Centre for Asia Pacific Aviation & Reuters

Does it matter where AirAsiaX lists?

2010-08-22T11:41:00.001+08:00

26 June 2010

Yes, but the full answer may not be what AirAsiaX or you think it is

THERE is this perception that you get more value for a company depending on where you list it. Investment bankers, especially foreign ones, have sent out sorties to entice Malaysian companies to list overseas through this perverse logic that listing in a more developed and active market will get you better value.

But we will show that such a premise is not true. Those who fall for that fallacious argument do so at their own peril. They not only will NOT get extra value, they are likely to lose a lot of goodwill, and I am not talking accounting goodwill here.

Let’s take the example of AirAsiaX. Both its CEO Azran Osman-Rani and its prime mover and entrepreneur behind it, Datuk Seri Tony Fernandes, have talked about listing the infant airline overseas.

Analysts have blithely alluded to AirAsiaX obtaining better liquidity and valuations if they are listed overseas in markets such as London, Hong Kong or New York but they don’t explain how that is possible.

If they are to be believed, Bursa Malaysia is a market of little or no consequence, the markets here are illiquid, it is not open to investment by foreign funds, world markets are terribly imperfect and valuations here are generally lower than valuations overseas. But all of these are patently untrue.

Malaysia’s bourse is a small one but not insignificant and it has foreign funds invested in it. Some companies are majority owned by foreign funds and investors, and AirAsia – the low cost short-haul airline unlike its cousin AirAsiaX which is long-haul – is probably one of them.

In a world which has become virtually borderless, any fund in the world can invest anywhere and in any listed company. Bursa Malaysia is as open as any other market in the world. So there is no question that any fund will not have access to AirAsiaX if it were listed here. There is no question of liquidity.

Markets, because of their openness, reflect the value of companies listed on them. It does not matter where the companies are listed, their value depends entirely on their operations, future prospects and how they are perceived by the investing public.

In fact, studies have shown that companies better reflect their value when they are listed on their home markets simply because they are better understood and known there, more analysts are likely to follow them and there is likely to be greater interest in the companies if they are good.

Questions: Is AirAsiaX likely to be known better if it is listed in Malaysia or in New York or London or Hong Kong or even Singapore? Is anyone going to think that AirAsia X is English if it is listed in London?

No matter where AirAsiaX is listed, any analyst worth his salt, and in this day and age the better ones have to be, will look at where its operations are, how it is run and its prospects. Then the risk is priced in accordingly. You cannot change the risk of a company by switching its listing, you have to switch its operations.

And do overseas markets have better valuations? This question is irrelevant because as we have pointed out it is the business that counts and not where it is listed but let’s answer it anyway.

The FTSE Bursa Malaysia KLCI, the key Malaysian index, trades at a P/E multiple (total market price divided by net earnings, a measure of value. The higher the P/E, the higher the valuation.) of over 17 times according to Bloomberg data. That’s higher than London’s FTSE 100 index at 13.8X, New York’s Dow Jones (14.2X), Hong Kong’s Hang Seng (15X), and Singapore Straits Times Index (13.3X).

Going by the perverse logic given by some of those roving investment bankers intent on getting AirAsiaX listed overseas, Malaysia gives the best valuation of any of these key markets, which means the company should be listed here!

Surely smart people like Azran and Fernandes are not going to be taken in by these false claims that better value is obtained by listing overseas. That means they have something else in mind when they talk about overseas listing.

If I have to have to speculate, I would say it’s a bargaining process – trying to get the best deal for AirAsiaX to list here. And the people at both AirAsia and AirAsiaX drive a very hard bargain indeed. But sometimes things can boomerang – you may get more than you bargained for.

I am willing to bet that they will NOT make the move to list overseas simply because the best value (loosely speaking that is), and importantly the best goodwill from their customers and the Government, will be obtained by listing here.

Yes, it matters where AirAsiaX lists. It will stand to gain more overall by listing here in Kuala Lumpur than anywhere else.

l Managing editor P Gunasegaram says a company creates value by, well, creating value and showing that it has. What better place to do that if not at home?

By P Gunasegaram

The Star

Malaysia AirAsia Considering Dividend Payout

2010-08-22T11:34:00.001+08:00

24 June 2010

Malaysian budget carrier AirAsia is looking into the possibility of paying dividends, its chief executive said on Thursday.

AirAsia has not had a dividend policy since it was listed on the Malaysian stock exchange in 2004. It previously said it wants to reinvest profits for future capital requirements.

"The board is actively looking at it... we are in a much better position (than last year) to be considering a dividend," Tony Fernandes told reporters after the airline's shareholders meeting.

No decision has been made on the dividend and Fernandes declined to give a timeline or guidance.

AirAsia also plans to offer 30 percent of its Indonesian and Thai units to the public in listings in their respective stock exchanges next year, said Fernandes.

AirAsia, Asia's biggest budget carrier by fleet size, is trading at some of the lowest multiples in the industry as its high debt keeps the stock under pressure, analysts said.

Citigroup estimates that AirAsia is trading at just 6.2 times its expected 2010 earnings, one of the lowest ratios of any listed airline. That is well below its P/E ratio projection of 13.6 for rival Tiger Airways and 11.4 for Virgin Blue.

AirAsia is also one of the most indebted carriers with Morgan Stanley estimating the company's net debt to equity ratio at 249 percent at the end of 2010 and Citigroup predicting 255 percent.

Fernandes said he expects the carrier's gearing to continue falling. He did not elaborate.

Reuters

News.airwise.com

AirAsia X becomes first LCC to offer low-cost flatbed seats, as expansion rolls on

2010-08-22T11:30:00.001+08:00

24 June 2010

AirAsia X CEO, Azran Osman-Rani

AirAsia X has become the first LCC to offer flatbed seats on its long-haul route network, with the low-cost long-haul carrier claiming that its product "combines the comfort of premium travel with the affordability of no-frills flying". The new Premium FlatBed and economy class seating product was installed this month on its A340 aircraft operating on the Kuala Lumpur-London sector, ahead of a fleet-wide roll out.

AirAsia X premium product

London Stansted Commercial and Development Director, Nick Barton, called the product the "next evolution" of low-cost flying, adding that it would revolutionise air travel "between Europe, Asia and beyond".

To have highest-density configuration on both A340 and A330 equipment in the region

The new configuration for the AirAsia X A340 is 18 flatbed seats (30 currently) and 309 economy seats (256 currently), for a total of 327 seats (286 currently), which will make it the highest-density A340 configuration in the region (compared to mid-range at present). The carrier also upgraded its economy class seating, to feature reclineable seats at 31” pitch equipped with adjustable headrests. The airline also decided to move away from traditional black leather to a mix of red and grey.

Asia Pacific carriers’ A340 seating configurations: Jun-2010

Operator	Aircraft Type	Seats	In Service	Total
China Eastern Airlines	A340-300	322	5	5
SriLankan Airlines	A340-300	314	3	3
SriLankan Airlines	A340-300	313	2	2
Air Tahiti Nui	A340-300	294	5	5
Air China	A340-300	291	6	6
China Eastern Airlines	A340-300	287	5	5
AirAsia X	A340-300	286	2	2
Hainan Airlines	A340-600	286	3	3
Safi Airways	A340-300	286	1	1
Cathay Pacific	A340-300	283	11	11
China Airlines	A340-300	276	6	6
Thai Airways	A340-600	267	6	6
Philippine Airlines	A340-300	264	4	4
Thai Airways	A340-500	215	4	4
Singapore Airlines	A340-500	100	5	5
Total			68	68

Refurbishment process to be competed by Jul-2011

AirAsia X is currently upgrading its entire fleet with the new seats in stages for all long-haul flights to Melbourne, Gold Coast, Perth, Taipei, Hangzhou, Tianjin, Chengdu, London, Mumbai and New Delhi.

The refurbishment process is expected to be completed by Jul-2011 and will allow AirAsia X’s A330 to have a seat configuration of 12 flatbed premium seats (28 currently) and 365 economy seats (355 currently), for a total of 377 seats (compared to 383 currently on five of its six A330-300s in service). With the new configuration, AirAsia X will remain the highest-density A330 operator in the region, giving it a 20% unit cost advantage over its nearest rival, Vietnam Airlines on seating density alone. Add in higher utilisation rates and the advantage could be 30-50% over rivals flying the same aircraft type.

Centre for Asia Pacific Aviation

AirAsia X unveils low-cost flatbed seats

2010-08-22T11:17:00.003+08:00

23 June 2010

Good news for long-haul travellers who fly on a budget – AirAsia X has just become the first low-cost carrier in the world to offer flatbed seats on its long-haul route network.

The airline, which runs daily flights to Kuala Lumpur from London Stansted Airport , claims that its product combines the comfort of premium travel with the affordability of no-frills flying.

With fares starting from £649 one-way its new offering will be out of reach for many, but for those who simply want a comfy seat without the bells-and-whistles it could be perfect.

Seasoned business travellers will immediately pick out the low-cost elements of the new product, which lacks backseat TVs and includes a meagre 15kg checked baggage allowance.

But AirAsia X is right to hail its product as revolutionary. The £649 price-tag is a fraction of what legacy carriers at Heathrow charge for similar comfort, and the seat's ergonomic design allowed our 6ft 3in correspondent to lie outstretched in the fully-reclined position without impediment.

Universal power sockets, adjustable headrests and privacy screens add to the air of luxury premium travel, though it's the groundbreaking flatbed option that puts this seat in a league of its own.

Speaking at the official launch, AirAsia X chief executive Azran Osman-Rani commented: "As frequent flyers ourselves, we understand the great need for comfort especially for long-haul flights. Both business and leisure travellers can now enjoy greater low-fare connectivity than ever before."

Nick Barton, Stansted's commercial and development director, called the product the "next evolution" of low-cost flying and said it would revolutionise air travel "between Europe, Asia and beyond".

AirAsia X is increasing its London Stansted to Kuala Lumpur route to nine weekly flights in November. The airline offers onward connections to destinations such as Australia, Thailand and China via its parent brand AirAsia, which operates more than 400 daily flights in the region.

news.Cheapflights.co.uk

AirAsia offers extra low fares to India

2010-08-22T11:15:00.001+08:00

23 June 2010

PETALING JAYA: AirAsia will be offering extra low fares to eight India destinations from as low as RM169 (all-in fares) one way from Wednesday to next Wednesday.

The travel period for the promotion is from July 1 to Sept 24 this year.

The destinations included are Kuala Lumpur to Tiruchirappalli; KL to Kochi; KL to Kolkata; KL to Trivandrum and Penang to Chennai.

Other destinations are KL to Bangalore; KL to Mumbai; KL to New Delhi.

AirAsia regional head of commercial Kathleen Tan said, with the promotion, the airlines hoped to promote Malaysia and bring in more Indian nationals into the country in line with Tourism Malaysia’s target of 650,000 Indian tourists for this year.

“We are delighted to see the increase of our load for the Indian sectors and announce this promotional offer so that more can travel and explore the myriad attractions that India has to offer.

“Furthermore, our guests who utilise our Kuala Lumpur and Penang hubs can have more options for their travel plans,” she said.

She said passengers could also complement their travel plans with online hotel deals and tour packages via AirAsiaGo.com at www. airasiago.com, where they could choose tours, activities and holiday lodgings from over 70,000 hotels worldwide including ground transfers and personalised activities.

by Ng Cheng Yee

The Star