British trade report recognises AirAsia as the brand to watch

KUALA LUMPUR: Low-cost carrier AirAsia has been recognised as the top brand to watch in Britain’s Trade and Investment’s New World Brands annual report.

The report said AirAsia was the only South-East Asian company to make the list of top 10 brands from emerging markets across Brazil, Russia, India and China.

AirAsia in a statement said it was also recently ranked in the top five among the Asia-Pacific’s airline brands in a Top 1,000 Brands 2008 survey.

Transfer Of Airasia Operations From Main Terminal Of KKIA To Terminal 2 Is Temporary

KUALA LUMPUR, Nov 5 -- The Transport Ministry's decision that AirAsia Bhd transfer its operations from the Main Terminal of the Kota Kinabalu International Airport(KKIA), to the Terminal 2, is a temporary measure.

The Deputy Minister of Transport Datuk Seri Panglima Lajim Ukin said the move was until upgrading works to the KKIA's Main Terminal is completed.

"The move is intended to avoid any disruption to flight operations and work at the site where the upgrading to the Main Terminal is being undertaken," he said.

AirAsia had been informed of the matter and was ready to transfer operations back to the Main Terminal once the project was completed, he told the Dewan Rakyat today.

Lajim was responding to a question from Dr Hiew King Cheu (DAP-Kota Kinabalu) on the reason for AirAsia to transfer operations from Terminal 2, which had cost millions of ringgit to build, back to the Main Terminal after the upgrading works.

He said that the original objective of upgrading the Main Terminal would not be realised if the terminal building and parking apron was not fully utilised.

"The issue of passenger traffic still arises, especially for those from and to selected airports, planning to use AirAsia or MASWings," said Lajim.

At the same time, he said the facilities for aircraft operations on the parking apron of Terminal 2 was very limited.

"As such, the transfer is to support the need of additional aircrafts or that of aircrafts bigger than the Boeing 737 or the Airbus A320 as well as operational service requirements," he added.

He said that if AirAsia continued with its operations at the Terminal 2, it would impact on the efficiency of air traffic control with problems related to runway crossings, continuing to exist for the airlines' aircraft taking off from runway 02 and landing on runway 20.

With the completion of upgrading works to the Main Terminal, he said that there would be greater efficiency and comfort with regards to the transfer of passengers and flight connections.

The KKIA masterplan will focus on infrastructure expansion in the vicinity of the Main Terminal as there was vacant land available for development.

The Terminal 2 vacated by AirAsia, will not be left idle.It will be used by agencies such as the Royal Malaysian Air Force, the Police and others as Transmile, flying clubs, private aircraft and serve as a cargo handling centre.

Sarawak Gov't puzzled over AirAsia's decision

KUCHING, SARAWAK:

THE state government is puzzled over AirAsia’s decision not to reinstate the Kuching-Macau direct flight in two to three months time as agreed earlier.

State Tourism Minister Datuk Michael Manyin said the carrier's group chief executive officer Datuk Seri Tony Fernandes had agreed to reinstate the flight in two to three months time during a meeting on Oct 8.

However, in a recent letter to Manyin, Fernandes said the route would now only be reinstated after the low-cost carrier terminal (LCCT) at the Kuching International Airport is completed.

"I was taken aback by the letter," Manyin said at the lobby of the state legislative assembly here yesterday.

"Air Asia had not stated when they are going to start building the LCCT. So there is no certainty when the route would be reinstated."
The state government had already allocated a piece of land at the airport for the terminal, estimated to cost between RM100 million and RM150 million.

AirAsia will be building the LCCT at its own expense — the first time the government had allowed such an arrangement.

AirAsia to launch Flights between Kuala Lumpur and Tiruchirappli, India

AirAsia is to launch daily direct flights between Tiruchirappli in India and Kuala Lumpur, the capital city of Malaysia, beginning 1 December 2008. The new service, the first route launched by AirAsia in India, will be operated with brand new Airbus A320.

To celebrate this new service, AirAsia is offering fares from Rs. 699++ (RM49+) one-way excluding all taxes, surcharges etc. This offer is available until 9 November 2008 for travel between 1 December 2008 and 31 July 2009.

Dato’ Sri Tony Fernandes, Group CEO of AirAsia Berhad said, “Thiruchi, famous for its fusion architecture and monuments, will be our first destination before we embark on nine other locations in India within the next one-and-a-half years. Other routes include Madras, Cochin, Madurai and Kovaibutore while for AirAsia X, we are looking at New Delhi, Mumbai and Hydrabad.”

AirAsia X’s financing for planes on track, says Azran

KUALA LUMPUR: AirAsia X Sdn Bhd is confident in meeting the financial obligations for the purchase of 25 new Airbus A330 planes.

“Since April 2008, we have well in excess of RM300 million cash in hand, including cash from our foreign equity partners. We have been operating on positive cash flows and are confident that we could continue to raise funds in Europe as banks have to continue lending,” AirAsia X chief executive officer Azran Osman-Rani said.

“The plan for equity financing will proceed as planned, and we are eyeing 2010 for a possible IPO (initial price offer) or through private placements to our existing shareholders

He was speaking to reporters on board its first Airbus A330 last Friday en route here from Toulouse, France, where the aircraft was delivered to AirAsia X.

The Airbus A330-300 ordered by AirAsia X carry a catalog price tag of US$200 million (RM704 million) each or US$5 billion in total, though discounts are usually given for large orders. The delivery period of the plane is from the end of last month to 2013.

Azran said the ability to raise funds for the purchase of new planes was crucial for AirAsia X to grow. “With these new planes, we would probably be profitable by December and start registering full-year profit beginning next financial year,” he said.

Azran pointed out that the A330 could help the airline maintain its low-cost advantage, with its operating cost forecast to go down from four US cents per km now to 3.6 and 3.3 cents for next year and 2010, respectively.

“This is why we felt that the planes we are purchasing now are very important to ensure that we stay ahead of our competitors. We are one of the first airlines to phase out the Boeing 747 that burns around 15% more fuel and costs 15% more in maintenance,” he said.

According to Azran, aircraft financing is very specialised and very few Asian financial institutions have experience in it. However, he added that the company would try to convince Malaysian financiers that AirAsia X’s business model was viable.

Foreign shareholdings in AirAsia X now stand at 36%, comprising 16% held by Virgin Air Ltd and 10% each by Orix Group from Japan and Perigon Capital of Bahrain.

To another question, Azran said the long-haul budget carrier was going ahead with its route expansion to Japan, United Kingdom and continental Europe despite concerns that the possible visa ruling by the UK government could complicate matters.

“We are making progress on these issues and from the feedback we received, we are confident that Malaysia will pass the test,” he said, referring to the six-month grace period given until the end of the year by the British government for Malaysia to cut down the number of its citizens abusing the visa-free privilege by overstaying in the country.

AirAsia X’s financing for planes on track, says Azran

KUALA LUMPUR: AirAsia X Sdn Bhd is confident in meeting the financial obligations for the purchase of 25 new Airbus A330 planes.

“Since April 2008, we have well in excess of RM300 million cash in hand, including cash from our foreign equity partners. We have been operating on positive cash flows and are confident that we could continue to raise funds in Europe as banks have to continue lending,” AirAsia X chief executive officer Azran Osman-Rani said.

“The plan for equity financing will proceed as planned, and we are eyeing 2010 for a possible IPO (initial price offer) or through private placements to our existing shareholders

He was speaking to reporters on board its first Airbus A330 last Friday en route here from Toulouse, France, where the aircraft was delivered to AirAsia X.

The Airbus A330-300 ordered by AirAsia X carry a catalog price tag of US$200 million (RM704 million) each or US$5 billion in total, though discounts are usually given for large orders. The delivery period of the plane is from the end of last month to 2013.

Azran said the ability to raise funds for the purchase of new planes was crucial for AirAsia X to grow. “With these new planes, we would probably be profitable by December and start registering full-year profit beginning next financial year,” he said.

Azran pointed out that the A330 could help the airline maintain its low-cost advantage, with its operating cost forecast to go down from four US cents per km now to 3.6 and 3.3 cents for next year and 2010, respectively.

“This is why we felt that the planes we are purchasing now are very important to ensure that we stay ahead of our competitors. We are one of the first airlines to phase out the Boeing 747 that burns around 15% more fuel and costs 15% more in maintenance,” he said.

According to Azran, aircraft financing is very specialised and very few Asian financial institutions have experience in it. However, he added that the company would try to convince Malaysian financiers that AirAsia X’s business model was viable.

Foreign shareholdings in AirAsia X now stand at 36%, comprising 16% held by Virgin Air Ltd and 10% each by Orix Group from Japan and Perigon Capital of Bahrain.

To another question, Azran said the long-haul budget carrier was going ahead with its route expansion to Japan, United Kingdom and continental Europe despite concerns that the possible visa ruling by the UK government could complicate matters.

“We are making progress on these issues and from the feedback we received, we are confident that Malaysia will pass the test,” he said, referring to the six-month grace period given until the end of the year by the British government for Malaysia to cut down the number of its citizens abusing the visa-free privilege by overstaying in the country.

Delivery of first A330 to AirAsia X marks entry of Rolls-Royce Trent into Asia's low-cost carrier market

AirAsia X, the Kuala Lumpur based long-haul, low-cost airline, has celebrated delivery of its first Rolls-Royce Trent 700 powered A330-300 aircraft, making it the first low-cost carrier in Asia to operate Trent powered aircraft.

3 Nov 2008 : AirAsia X, the Kuala Lumpur based long-haul, low-cost airline, has celebrated delivery of its first Rolls-Royce Trent 700 powered A330-300 aircraft, making it the first low-cost carrier in Asia to operate Trent powered aircraft. The aircraft entered service on 2 November, flying from Kuala Lumpur to Perth (Australia).

AirAsia X has confirmed orders in place for 15 Trent 700 powered Airbus A330-300s, to be delivered over the course of the next four years. The engine business is worth over $1.3 billion at list prices, including a long-term TotalCare® service agreement.

Azran Osman-Rani, AirAsia X Chief Executive Officer, said: “The Trent 700 is the best engine choice for us on a number of levels. It will give us the widest choice of routes and the greatest revenue-earning opportunities.

”For a low-cost long-haul operation such as AirAsia X, supporting the engine with TotalCare also gives us the ability to have a predictable cost base which is crucial for us to be competitive. We are pleased and proud to be working with Rolls-Royce as we launch our new, long-range services.”

As the only engine specifically designed for the A330, the Trent 700 delivers the greatest performance over the widest range of operational and environmental conditions. It has established itself as the engine of choice on the A330, with a 52 per cent market share and over 50 customers and operators.

Mark King, President – Civil Aerospace, said: ”Rolls-Royce is extremely proud of the reputation and success of the Trent 700, which has proven itself to be an extremely capable and highly successful engine programme, both for Rolls-Royce and for A330 operators. We are now equally proud and delighted to welcome AirAsia X as the latest operator of the Trent 700 engine."

Latest technologies fed into the engine as a performance improvement package mean the Trent 700 has the lowest environmental impact of any engine on the A330. It has the lowest lifecycle fuel burn, the lowest cumulative emissions and the lowest noise levels.

AirAsia X Celebrates 1st Commercial Service Anniversary with Brand New A330

AirAsia X, the low-cost long-haul carrier affiliate of AirAsia, today celebrates the First Anniversary of its commercial service with a birthday bash at its base at the Low Cost Carrier Terminal (LCCT) of the Kuala Lumpur International Airport here.

The airline started its commercial service with its flight from Kuala Lumpur to the Gold Coast, Australia on 2 November 2007, before adding the Kuala Lumpur-Hangzhou route in February 2008.

Exactly a year later, AirAsia X ushered in a new chapter of low-cost international travel by flying to its second Australian destination, Perth. The inaugural AirAsia X flight between Kuala Lumpur and Perth touched down on Western Australian soil at 2.40 pm yesterday, using the airline’s brand new wide-bodied Airbus A330. The A330 was freshly delivered from the Airbus facility in Toulouse, France on Friday.

“In just a year, and operating with one aircraft, AirAsia X has flown over 200,000 people across Asia and Australia. Supported by the widest route network of AirAsia, AirAsia X has brought a new definition to the low-cost long-haul carrier concept. We are proud that AirAsia X has become the most successful low-cost long-haul carrier in the world,” said Azran Osman-Rani, Chief Executive Officer of AirAsia X.

AirAsia X was named the ‘New Airline of the Year 2008’ by the Centre for Asia Pacific Aviation (CAPA) and ‘Best Newcomer’ at the 2008 Budgie World Low Cost Airline Awards.

AirAsia X now serves the Kuala Lumpur-Perth route with six direct return flights per week.? The airline plans to upgrade this schedule to a daily service by mid-December. ?The champion of low-cost long-haul travel will also commence services between Kuala Lumpur and Melbourne on November 12 this year.

The start of flights to Perth also came just a day after AirAsia X’s brand new Airbus A330 arrived in Malaysia after a high-profile aircraft delivery ceremony in Toulouse, France on 31st October.? The new Airbus A330 is the first to be delivered of the 25 brand new Airbus A330 aircraft that AirAsia X has ordered.? AirAsia X’s choice of Airbus A330 reflects its thrust of reducing fuel consumption and operating costs.

The Airbus A330, which is powered by Rolls Royce Trent 700 engines, boasts enhanced flexibility and comfort for guests, which allow AirAsia X to offer a level of service not normally expected from low-cost airlines. The cabin has 383 sleek black leather upholstery seats, with optional premium XL seats for extra width and leg room, as well as the latest in-flight entertainment system featuring innovative content and applications.

Azran Osman-Rani said, “We are delighted to bring our affordable and reliable flights to Western Australia. ?We’ve had strong forward sales for the flights between Perth and Kuala Lumpur since we officially launched our service in Western Australia in May this year and we’re expecting this solid show of support from travellers from Australia and Malaysia to continue into 2009 and beyond.”

“We have launched a number of travel deals for cheap flights between Perth and Kuala Lumpur which have sold extremely well and garnered an enthusiastic response from travellers keen to experience everything Australia and Malaysia have to offer. Forward bookings indicate over 25,000 guests who will use this service in November and December 2008 alone,” he added.

“AirAsia also boasts an incredible route network to ASEAN and China - the best connections in South East Asia. We have found that the take-up of tickets for Perth flights from Malaysian travellers has been significant. With our expanding Australian network, which soon will service Melbourne aside from the Gold Coast and Perth, AirAsia X is committed and poised to position Malaysia and Kuala Lumpur as its dynamic capital, as Asia's biggest low-cost hub. ?All stakeholders have worked cohesively and collaboratively to make this operation a success,” concluded Azran.

Azran further commented that the start of AirAsia X’s new services into Perth was a reflection of the collaborative effort between the Western Australia Government, Tourism Western Australia, AirAsia X and Perth Airport.

To mark the 1st anniversary of AirAsia X, the airline will be giving away free seats* to its loyal guests to all of its destinations which include Gold Coast, Hangzhou, Perth and Melbourne. Citibank cardholders and Digi subscribers will have the exclusivity to book their seats on 3rd November 2008. For other guests, they can book their seats at www.airasia.com or mobile.airasia.com from 4th – 9th November 2008 for the travel period between 1st August 2009 – 24th October 2009. The free seats* promotion is also made available to Hangzhou (Shanghai) in China from 4th – 9th November 2008 for the travel period between 16th June 2009 – 24th October 2009.

AirAsia X hopeful of getting loans for new aircraft

SEPANG: Long-haul budget airline AirAsia X Sdn Bhd is confident of getting bank loans to finance the purchase of its remaining Airbus A330 fleet despite the current turbulence hitting the airline industry.

Chief executive Azran Osman Rani said AirAsia X was hopeful of getting loans for the remaining “20-plus” Airbus A330 it ordered after managing to get loans for the first few aircraft.

The carrier had ordered 25 Airbus A330 planes, which costs about US$200mil each.

“The negotiation (for the loans) for the first few aircraft was intense because the foreign bank was more cautious but fortunately, we were able to the clinch the deal due to the lender’s confidence in the AirAsia brand,” Azran said after the celebration of AirAsia X’s first anniversary yesterday.

“For the remaining planes, we are in talks with foreign as well as local banks, including CIMB Bank Bhd, RHB Bank Bhd and Bank Kerjasama Rakyat Malaysia Bhd.”

AirAsia X's first Airbus A330 was delievered on Nov 1.

AirAsia X took delivery on Saturday of the first of the 25 Airbus A330 it ordered and promptly launched an inaugural flight on the Airbus A330 between Kuala Lumpur and Perth, Australia, the very next day.

But the flight encountered a six-hour delay due to a computer glitch in the plane’s cockpit.

Another aircraft is scheduled for delivery in December and three more in 2009. All the Airbus A330 aircraft it ordered are scheduled to be delivered by 2013.

AirAsia X’s current debt-to-equity ratio is over three times, which, according to Azran, is acceptable in the airline sector.

The carrier has not hedged its positions in foreign currencies and jet fuel, he said, pointing out that 50% of the group revenue was in foreign currencies.

However, it was planning to lock in jet fuel supplies as the current price was attractive, he added.

On its expansion plan, Azran said AirAsia X would continue to grow its routes and aircraft fleet despite the economic slowdown.

“When others (airlines) retreat, it is a good time for us to expand because we can grow at a faster rate by taking over their routes and cancelled aircraft,” he said, adding that AirAsia X planned to expand into Europe, China and India soon.

Launched in November 2007, AirAsia X has flown over 200,000 people and operated flights to Gold Coast and Perth, both in Australia, and Hangzhou, China.

Its next inaugural flight would be to Melbourne, Australia, on Nov 12 and to Britain on March 9 next year

Airasia X Plans Destinations In Europe And India For Airbus A330

SEPANG, Nov 3-- AirAsia X, the long-haul affiliate of low-cost airline AirAsia Bhd, plans to expand its destinations to Europe, including the United Kingdom, by March next year and also fly to 10 cities in India in the next five years.

These routes would be served by the new Airbus A330 aircraft that the carrier had ordered, said chief executive officer Azran Osman Rani.

AirAsia X has received its first 25 new Airbus A330 last Saturday, and more are scheduled to arrive from end of this year until 2013.

"There is an opportunity now to accelerate on the orders because some airlines are deferring their orders for financing reasons. If we can get the aircraft sooner, we can open up more routes faster," he told reporters after celebrating the airline's first anniversary at the Low-Cost Carrier Terminal here, Monday.

Azran said the airline aimed to cover destinations which are more than four hours in flight duration from Kuala Lumpur, completing the existing AirAsia network.

The 25 new Airbus A330 aircraft ordered by AirAsia X together with AirAsia Bhd's order of 175 aircraft were estimated at a value of about US$6.6 billion.

According to Azran, AirAsia X is confident that it will be able to source the fund to finance the order given its positive cashflow.

"We have already generate positive cashflow since April this year and this is the reason why we managed to convince the finance institution," he said.

The airline, he added, had clinched the deal to finance the first few planes and would talk with banks, both local and foreign, for the other aircraft.

In conjunction with AirAsia Xs first anniversary, the airline will be giving away free seats to all its destination, including the Gold Goast, Perth and Melbourne in Australia and Hangzhou in China.

Launched in January 2007, the company currently flies four times weekly to the Gold Coast, six times weekly to Perth and five times weekly to Hangzhou.

AirAsia flies to Sulawesi's Makassar and Manado

After having ordered some 175 environment-friendly A320 airplanes, which arrived in Indonesia's capital Jakarta at the end of September 2008, Low Cost carrier (LCC) AirAsia continues to expand its network from Malaysia and Thailand to Indonesia. In Indonesia, AirAsia will use them first for domestic flights from Jakarta to Batam in Riau, Padang in Western Sumatra, Balikpapan in Kalimantan and Denpasar in Bali.

But what seems more amazing is that since this year it is possible for tourists and businessmen in Bangkok or Chiang Mai to reach the exotic destinations of Makassar and Manado in Sulawesi via Malaysia's capital Kuala Lumpur. Especially Makassar is rapidly becoming a booming entrance gate to Eastern Indonesia.

To cover TIME2008, which was successfully being held at the newly-built Celebes Convention Centre (CCC) in Makassar on October 14-17, AirAsia granted me a complimentary air-ticket with the following everyday schedule:

Chiang Mai - Kuala Lumpur (AK897) to depart at 11.05 (Arrival 14.50)
Kuala Lumpur - Makassar (AK1026) to depart at 16.40 (Arrival 20.00)
Makassar - Kuala Lumpur (AK1027) to depart at 20.25 (Arrival 23.40)
Kuala Lumpur - Chiang Mai (AK896) to depart at 08.50 (Arrival 10.40)

To Manado, the flight schedule is on Tuesday, Friday and Sunday only:

Kuala Lumpur - Manado (AK1030) to depart at 06.40 (Arrival 10.40)
Manado - Kuala Lumpur (AK1031) to depart at 11.10 (Arrival 15.10)

For further information, please go to: www.airasia.com

Furthermore, special thanks go to H. Eddy Kosasih Parawansa, Chief of the Culture & Tourism Office in Makassar, to give me the chance to survey the tourism potential of Makassar and beyond during TIME2008.

The first excursion that he arranged for some travel journalists on October 16 went to the coral islands of Khayangan and Samalona, which both belong to the 12 outlying "Spermonde" island group reached by speed-boat from the busy waterfront of Makassar. There you can swim and carry out some water sport activities or study the life of the local fishermen. After a fishy lunch, we were back in the afternoon.

Another highlight was the full day excursion to the beautiful white-sanded "Bira Beach" which is located in the Bulukumba region in the southern part of South Sulawesi some 192km away from Makassar. On the way, you pass extensive rice fields, salt production sites and coconut plantations. In Tana Beru, you will see the well-known "phinisi" sailing ship building sites. Made with teakwood and ironwood and built together with wooden nails, such a ship can sail up to the Philippines, Japan, Australia or to far away Madagascar and Africa. From Bira, you can take a boat to the still unexplored Selayar Island, which looks like a shrimp and has a long fascinating history.

Back in Makassar, don't miss to see Fort Rotterdam, right near the Losari Beach famed for its stunning sunsets, and the fishing port of Paotere. Formerly called "Ujung Pandang" Fort Rotterdam is a mighty turtle-like shaped structure with five bastions and the main gate re-built by the Dutch in the 17th century. Within the fort area is the "La Galigo" Museum, which displays antique art objects relating to history and community life, such as an impressive ceramic and porcelain collection. The nearby port of Paotere shows hundreds of fishing boats and sailing ships from all over the archipelago unloading their catches or distributing goods.

Most of the tourists and travelers will come and leave Makassar at the newly modernised and enlarged Hasanuddin International Airport, which began full operation since August 15 and is 23km away from the city- centre. Further improvements will be made in line with future developments in the aviation industry.

Last not least, Manado is the newest destination of AirAsia and is located in North Sulawesi. When you land there, you will notice churches like in Toraja Land. Also, Manado is famous for its myriad of seafood restaurants - and diving resorts abound. The most prominent diving destination in North Sulawesi is certainly Bunaken Island, which is a 20 minutes speed boat ride away from Manado. The underwater gardens of Bunaken make it a great place to be not only for diving, but also for snorkeling. Nearby is Siladen Island, which is known for its nicer beach and a lot more of coral reefs. Manado will shine, when there will be the upcoming "World Ocean Conference" on May 11-15, 2009 to build understanding and respect for sustainable management of marine resources.

Interesting to note is what full-service Garuda Indonesia plans to do next as an answer to the aggressive expansion of AirAsia. During a short press conference during TIME2008 on October 16, Mr. Prijastono Purwanto, VP Marketing Officer of Garuda Indonesia, told travel journalists that the opening of the Surabaya-Hongkong and Denpasar-Brisbane sectors will happen next year and a third international route is in the planning stage. He also pointed out that Garuda Indonesia's current fleet of 52 airplanes will be increased to 63 next year.

AirAsia X celebrates first birthday with unbeatable airfares

3 November 2008,Malaysian-based airline AirAsia X is releasing a new round of great value travel deals for flights between Australia and Kuala Lumpur to celebrate its first anniversary.

AirAsia X touched down on the Gold Coast Airport tarmac November 3 2007 and since then has been well received from both Australian and Malaysian travellers.

In March this year AirAsia X announced its 100,000th passenger onboard and to date the popular low cost international carrier has welcomed more than 200,000 guests.

To mark its first birthday AirAsia X is offering one-way fares from the Gold Coast to Kuala Lumpur for $171* taxes and surcharges inclusive.

The celebratory fares coincide with the carrier’s inaugural flight to Perth which lands at Perth Airport’s international terminal at 2.40pm today (November 2).

AirAsia X has released birthday budget airfares for its Perth route and Melbourne, where the airline will start servicing as of November 12, 2008.

Passengers can fly from Perth to Kuala Lumpur with AirAsia X for $157* including taxes and charges and from Melbourne to Kuala Lumpur for $182*.

“The Gold Coast Airport, the local tourism industry and the travelling public have been very supportive of AirAsia X and we would like to acknowledge this by offering seats at unbeatable prices,” AirAsia X General Manager Australia Mr Darren Wright said.

“AirAsia X soon will be actively servicing three Australian destinations including the Gold Coast, Perth and Melbourne and we’re hoping the success we’ve enjoyed on the Gold Coast will be replicated at our two newest destinations.”

As of today AirAsia X passengers also will get to experience the carrier’s new wide-bodied Airbus A330 aircraft, which provides passengers with a level of service not normally expected from low-cost airlines.

AirAsia X’s new planes will feature the latest technology, fixed-backshell seats with trademark sleek black leather upholstery, in-flight entertainment featuring innovative content and applications and WI-FI access.

New KK-S'pore route 'won't jeopardise KK-Johor mart'

02 November, 2008 AIRASIA Chairman Datuk Aziz Bakar is confident the new Kota Kinabalu-Singapore route will not jeopardise its Kota Kinabalu-Johor market.

He believes there is a market for the new KK-Singapore route despite the KK-Johor route providing a convenient way for people to visit Singapore via the Malaysian state.

Aziz said there are many people who would prefer to travel directly to Singapore even if the tickets may be more expensive.

"I think the market is big enough. It's not just a matter of dollars and cents that make people decide which flights to take, time is also a factor. Some people are willing to pay more for the benefit of convenience," he said, after launching AirAsia's inaugural flight to Singapore from KK, officiated by Tourism, Culture and Environment Assistant Minister, Bolkiah Haji Ismail, Saturday.

It is one of two new flights from East Malaysia to Singapore that will be operated by AirAsia. The other route, Kuching-Singapore, also commenced the same day.

The new two hour and 15 minutes flight will be operated once daily, departing KK at 6.40pm and from Singapore at 9.35pm.

Aziz said AirAsia is encouraged by the response to the inaugural flight, achieving a 55 per cent passenger load. The low cost carrier hopes that in due time the figures would rise above 70 per cent.

"The passenger load for this (inaugural) flight is 55 per cent. We will be very happy if we can achieve around 79 per cent in future," he said.

Aziz also expressed confidence that AirAsia would be able to achieve more than two million passenger arrivals to Sabah this year, compared to 1.8 million in 2007, which he said was "a far cry from when we started six years ago".

"AirAsia started operating flights to Sabah six years ago with only one flight per day. Now we have 10," said Aziz, who gave credit to local government agencies for their efforts to bring development to the State, which he believes has benefited AirAsia.

"We have always been confident with the State Government and its agencies, especially the tourism bodies. They have supported our business well by bringing development to the State, which in turn has attracted lots of tourists," said Aziz.

Bolkiah, meanwhile, said his Ministry was confident that it would achieve the targeted 22,000 passenger arrivals from Singapore to Sabah.

He said even though the number of these arrivals to Sabah during the third quarter of this year showed a slight drop compared with the same period in 2007, they are still upbeat about achieving the target.

"Last year we had a total of 18,306 arrivals from Singapore. And even though up to the third quarter of this year we have only 10,580 arrivals compared to 11,500 of the same period in 2007, we are still confident that we will hit the target," said Bolkiah.