AirAsia's six new destinations to China

02 Feb 2009

AirAsia Bhd will introduce six new destinations to the China region by year-end, chief executive officer Datuk Seri Tony Fernandes said today.

He said the new destinations would be Tianjin, Chengdu, Chongqing and Xian in China and Taipei and Kaoshiung in Taiwan. Currently, AirAsia flies to Guangzhou, Guilin, Haikou, Hangzhou and Shenzhen in China and Hong Kong and Macao.

Tony said flights to Tianjin and Taipei were expected to be available by the first half while Chengdu and Chongqing in the second half and Xian by end of the year.

“From our review we found out that China was phenomenonly strong for us in 2008 and so far since we started flights to China, AirAsia have carried two million passengers from and into China.

“This shows that Malaysia has become a very important destination for Chinese people,” he said at a press conference here.
He said the review also revealed that the low-cost carrier carried one million passengers in 2008 alone, hence it was aiming to increase the total number of passengers on the Malaysia-China routes to 1.5 million.

“The numbers shows my faith that we could be a strong hub here to China as we now have more flights per week as compared to Changi Airport in Singapore,” he said.

The review was a “silver lining for the airline despite the current economic situation and negative news it has been linked to recently,” he added.

M'sia scraps AirAsia plan

Feb 1, 2009

KUALA LUMPUR - MALAYSIA'S government has rejected an ambitious proposal by budget carrier AirAsia to build a $460 million (S$694.8 million) airport outside the capital, a top government official said.

AirAsia founder Tony Fernandes said earlier this year that AirAsia wanted to abandon its rudimentary and overcrowded terminal next to the main international airport, to improve its standards and lower its operational costs.

But newspaper reports said the plan was turned down on Friday after Mr Fernandes made a presentation to Deputy Prime Minister Najib Razak and senior officials from the Finance Ministry and airports authority.

AirAsia intended to build and operate the airport in Negeri Sembilan state - outside the capital Kuala Lumpur - together with Malaysian conglomerate Sime Darby.

But Mr Najib, who is also finance minister, told Mr Fernandes that the government had to reject the proposal, a government official familiar with the negotiations said on condition of anonymity.

'The government thinks the AirAsia airport plan is not a viable project. It fears the cost of the construction may escalate and it may be forced to inject funds. The government does not want the project to be a burden,' he said.

However, he said that AirAsia could still appeal to the government to reconsider its decision. AirAsia officials could not be reached for comment.

The New Straits Times on Saturday cited an unnamed source as saying that Malaysia Airports Holdings would instead build a new budget terminal to replace the existing facility near Kuala Lumpur International Airport (KLIA).

'Malaysia Airports will build a new low-cost carrier terminal near the Kuala Lumpur International Airport but they (Malaysia Airports) will have to work closely with AirAsia,' the newspaper quoted the source as saying.

'The company's (AirAsia) input in the building of the new terminal will have to be taken into consideration.'

However, Transport Minister Ong Tee Keat was quoted by the Star newspaper on Saturday as saying that a decision on AirAsia's new airport would be made only in two or three weeks' time.

'Actually the government has not made a decision on the matter,' he said.

Sime Darby had previously said it had won government approval to begin the airport project, which was to be the centrepiece of a new multi-purpose development at Labu in Negri Sembilan state.

'The new airport, which will be known as KLIA East, will provide more capacity for aircraft and passengers and enable us to bring down fares,' Fernandes told a press conference early January.

'We believe in lowering our business costs. It is the key to our success,' he said, adding that costs could be cut by 30 percent.

Mr Fernandes rejected criticism that KLIA has more than enough capacity to handle AirAsia's growth plans and that the sprawling city has no need for what would be its fourth airport.

He said the new airport would be exclusively for AirAsia, and designed to handle up to 30 million passengers annually. Construction could begin within six months with a completion date of March 2011.

An expansion of the current low-cost terminal is due to be completed by March, but by then AirAsia will already have exceeded its enlarged capacity with some 15.7 million passengers a year.

'Our projection showed that within one year the airport will be bursting at its seams again,' Mr Fernandes said.

Even with a completely new LCCT terminal, KLIA's runways cannot accommodate AirAsia's expanding fleet that will include a larger number of wide-bodied jets, he said.

AirAsia X targets RM200mil profit

31 Jan 2009

AIRASIA X Sdn Bhd, which started business just over a year ago, is projecting revenue of RM1bil and a net profit of RM200mil this year.

The long-haul associate company of AirAsia Bhd posted a modest profit in the last quarter and says the big leap in the business will come as it takes delivery of more planes and flies to more destinations this year.

“We have more seats per plane and we fly more hours,” chief executive officer Azran Osman Rani tells StarBizWeek. “These two things give us a 50% unit-cost advantage over a traditional long-haul carrier.”

The huge improvement forecast by AirAsia X is a stark contrast to what most airlines around the world are saying and experiencing. Mounting losses and sluggish load factors have cast a long shadow over the industry that has been rocked by one problem after another, the latest being high fuel prices and poor demand.

The International Air Transport Association has forecast airlines would lose billions of dollars globally as passenger travel is expected to decline by 3% and cargo by 5% in 2009.

The global economic slowdown will depress travel demand, but AirAsia X feels whatever passengers it will lose would be made up by those who opt for cheaper fares.

“This is a climate where people will be more value-conscious,” Azran says. “The bottom market will fall and the top end of the market will trade down.”

The path to profitability for AirAsia X began in November last year when, after using just one leased plane since November 2007, it took delivery of two new aircraft.

The new A330s had 383 economy class seats as opposed to the traditional layout of between 280 and 295 seats.

“By having more seats, our unit costs were lower,” Azran says, adding that the new planes also mean higher fuel efficiency. He is targeting a cost of 2.5 US cents per available seat km in 2009, as opposed to what the benchmark of between 6 cents and 7 cents for traditional full service airlines.

The airline has also been lucky that it has been buying fuel from the spot market and is not paying the penalty of hedging fuel costs at much higher prices.

Azran says even though hedging is something the airline will look at as its fleet grows, that will not be done at the moment.

Another plus for AirAsia X is that its planes fly more hours per day than a traditional full service airline because it does not employ a spoke and hub model.

By connecting into AirAsia’s regional network from the low-cost carrier terminal, AirAsia X has been able to cater to travellers who do not have Kuala Lumpur as their final destination. Those factors - high turnaround, lower cost and more seats - mean it can charge far less for each ticket and make a good profit at the same time.

Helping growth and profitability are the high load factors enjoyed since its launch. The original routes to the Gold Coast in Australia and Hangzhou in China enjoyed a load factor of 80% and newer routes to Perth and Melbourne saw load factors of 72% and 78% respectively.

“That shows we can quickly get volume - and at prices that make the business work,” says Azran.

More seats and flights led to AirAsia X posting a profit of US$10mil and a profit margin of 30% during the last quarter. For 2008, revenue was RM250mil but AirAsia X sold RM375mil worth of tickets for the year.

The forward sales, currently RM125mil, are expected to grow dramatically this year as more destinations and planes are added to the fleet, and this would help fund the purchase of new aircraft this year.

AirAsia X is expected to take in three new A330s this year from September, four in 2010, six in 2011, six in 2012 and four in 2013.

The airline will fly to Stansted Airport on the outskirts of London from March 11 and will use a A340 that will be configured much like a full service aircraft with business class seats and economy class seats.

Azran believes the flight to London, even though the profit margin would likely be in the single-digit range, would be a key driver for the airline in other aspects.

“London will be a challenge but it’s more for brand recognition and it enhances our credibility with suppliers and financiers,” he says, adding that it should also appeal to the growing number of cost-conscious business class travellers.

The airline plans to take delivery of two A340s this year and have daily flights to Stansted.

Apart from London, AirAsia X will be exploring more routes to China, Australia and India this year.

Should AirAsia X achieve its targeted financial performance for 2009 and based on what it thinks it could do in 2010, Azran says, that would make it an attractive listing candidate. Timing of a listing will, however, depend on the health of the global equities market.

Airbus and Boeing deliver 858 new aircraft in 2008; AirAsia and Continental lead deliveries

30th January 2009

Airbus delivered nine A330s in December, including one to AirAsia X.

Airbus and Boeing delivered 87 aircraft in December, 37 more than in November as Boeing’s manufacturing finally got back on track. Airbus finished the year delivering a record 483 aircraft while Boeing had to settle for just 375.

Airbus: 46 deliveries including three A380s

A total of 32 narrowbodies were delivered by Airbus including 20 A320s, seven A319s and five A321s. Nine A330s were delivered (including one each to Aeroflot, Air Caraibes, Air Comet, AirAsia X, Jet Airways, Mexicana, Qantas and TAM) while Qantas took delivery of two A380s and Emirates a further one.

A total of 28 airlines received new Airbus aircraft with TAM taking four (two A320s, one A321 and one A330) while Air One, easyJet and Qantas each took delivery of three new aircraft. AirAsia finished the year just one ahead of easyJet in terms of new Airbus aircraft with 23 to the UK airline’s 22. China Eastern ranked third with 17 followed by TAM with 16. Four airlines each received 14 new Airbus in 2008.

A total of 12 A380s were delivered during 2008: five to Singapore Airlines, four to Emirates and three to Qantas.

Boeing: 41 deliveries in December

A total of 32 narrowbodies were delivered by Boeing including 23 -800s, five -900s and four -700s. Ryanair received four new -800s and Continental took delivery of three new Boeings. A single 767 was delivered to LAN while there were new 777s for Air Canada, Emirates (two), Qatar Airways and TAM (two).


Continental ended the year with 29 new Boeing aircraft ahead of Ryanair with 27. Southwest ranked third with 26 new aircraft.


A total of 858 new aircraft were delivered in 2008, 483 by Airbus and 375 by Boeing. Just under 79% of these aircraft are narrowbodies with widebodies accounting for the remaining 21% of the market.

KLIA East called off

KUALA LUMPUR, Jan 30 — It is confirmed. The controversial KLIA East project is off, stillborn at the drawing board because it had become too costly politically for the administration.

But it was not all bad news for Air Asia, the region’s largest budget carrier and the promoter of the idea to build the RM1.6 billion airport in Labu. The carrier managed to extract some concessions from the government, namely that Malaysia Airport Holdings Berhad (MAHB) build a new terminal by 2011 and consult Air Asia on the design and other issues pertaining to the operations of the facility.

Several government officials told The Malaysian Insider that MAHB was told to lower charges for the budget carrier, complete the construction on time and make the new terminal an energy efficient complex.

Today’s meeting was chaired by Finance Minister Datuk Seri Najib Razak and attended by Air Asia’s Datuk Seri Tony Fernandes, officials from the Ministry of Finance, Economic Planning Unit and MAHB.

When contacted, Fernandes said: “It was a positive meeting and we got a good hearing from everyone.’’ He declined to go into the specifics of the meeting.

Najib called for today’s meeting as a result of the firestorm of criticism which followed an announcement last month that the government had approved a plan by Air Asia to build a new LCCT in Labu. Critics assailed the government saying that this decision would hurt KLIA’s ambitions of becoming a regional hub. They also argued that if a new facility had to be built, it should be built within KLIA.

Air Asia countered by saying that MAHB was unable to build a new LCCT by 2011 to cater for its growth. It pointed out that MAHB was only able to build a new LCCT by 2014.

The government fearing a political backlash and unwilling to test its popularity in this more challenging political climate began sending out feelers a couple of weeks ago that it was looking for a compromise solution.

It received a helping hand from Sime Darby Berhad, the government-linked company which informed the government that it was only willing to sell a tract of land in Labu to Air Asia and was not providing any financing for the project.

This move threw into doubt whether Air Asia could raise the financing for the RM1.6 billion terminal and the RM700 million connectivity infrastructure.

Government officials, who were briefed about today’s meeting, said that MAHB and Air Asia will have to come back in two weeks with firm plans for the new LCCT.

“The DPM played the role of an honest broker. He did not take sides but wanted to make sure that national interest was served. This could only happen if the new LCCT was built in KLIA but Air Asia’s legitimate interests and concerns were addressed,” a government official told The Malaysian Insider.

It may have been a happy ending for all parties but this episode certainly raised some serious questions over decision-making in the government.

And begs the question on why MAHB and Air Asia could not be forced to the negotiating table earlier.

Some are sick, twisted and vicious

January 30, 2009

TONY Fernandes may be synonymous with Air Asia and credited with revolutionising budget air travel in Southeast Asia, but in cyberspace, comments about him have been vicious and personal.

NEW PLANS: Mr Tony Fernandes seen here with reporters near the site of the proposed new budget terminal south of downtown KL earlier this month. PICTURE: AFP

And 'fatso' is the most common slur.

Such comments hardly fazed him, said Mr Fernandes in a candid interview with liberal news portal Malaysiakini.

Instead, the 'sick and twisted' blogs have inspired him to trim down, he joked.

Controversy is no stranger to this 46-year-old, who is frequently spotted in photographs donning his red Air Asia cap.

Recently, he sparked a hot debate when he announced Air Asia's plans of building and operating a new budget RM1.6 billion ($669,000) terminal in Labu, a sleepy town 50km south of downtown Kuala Lumpur, reported The Straits Times recently.

And the loudest critics to this plan has been former prime minister Mahathir Mohamad, who slammed the government for approving it and demanded to know why an expansion of the space next to KLIA won't do.

In the first of a two-part interview with the news portal, he said: 'Dr Mahathir gave us the (airline) licence and we owe him a lot for giving us the licence.

'I don't think he detracts against us ... But he hasn't heard all sides of the story. I don't have access to him and he doesn't see our problems.

'In his blog, he has congratulated AirAsia for having received such high numbers of passengers... (and) on our presentation (on Labu). He still has questions, and his and a lot of other people's views are 'why can't it be built here (KLIA)?' And we're trying to argue that the 'why', (and) articulate it.'

'Hopefully we will be given a chance to show our side of the story.'

But beyond Dr Mahathir, Mr Fernandes also hopes to engage bloggers whose attacks against Air Asia have become personal and are not objective.

He said the main reason for harsh salvos online is due to Air Asia's 'guilt by association' or 'purported closeness' to certain politicians.

That, he said, has spawned stories that allege he snagged prized deals and gained easy success.

To all this, he says: 'I'm 'collateral damage', aren't I?

'There's just a vicious community of bloggers out there who just spout hate. I've tried to engage them. I've even invited them here.'

The criticisms became rife recently, when bloggers latched on to Air Asia's sponsorship of a team of amateur footballers under MyTeam, to play Manchester United's reserve team at Old Trafford.

MyTeam - brainchild of Mr Khairy Jamaluddin, an MP and PM Abdullah Badawi's son-in-law - is a football reality TV show in search of amateur footballers with the potential to play for the national team.

MyTeam was a hit and its success got Mr Khairy elected as deputy president of the Football Association of Malaysia in Sept 2007.

Biggest mistake

Said Mr Fernandes: 'The biggest mistake of my life, and to be fair to (Khairy), is (when his) team came to propose sponsoring the MyTeam (football project). '

He added: 'How fantastic - taking guys from the rubber estates, from kampungs, from new villages - to London to play Manchester United. This airline is all about making dreams come true. We've also sponsored Manchester United. How great!'

But then, it backfired when rumours spread that Mr Khairy and other influential politicans owned 40 per cent of AirAsia.

To this, he said: 'I hate to sound like a politician, but put a Bible, Quran, whatever, in front of me and I'll swear on it and say no. I only did the MyTeam thing with him (Khairy). Malaysia has become a bit sick and twisted, if you read some of the blogs.

'There are so many dodgy deals and concessions out there, but none of them get hammered. But after this (AirAsia's sponsorship of MyTeam) had gone public, we got hammered. '

Critics have been unfair in their biased assessements, and he argued that he has had to labour his way to get his business to where it is now.

If he had been a crony to influential officials, his airline would not have lost several lucrative contracts to MAS, he said.

New routes can mean more business, says AirAsia X’s CEO

Monday January 26, 2009

BEIJING: AirAsia X’s new routes to more Chinese cities in the future can translate into more business opportunities for both countries, said AirAsia X Sdn Bhd chief executive officer Azran Osman Rani.

“We started flying to China less than two years ago but the number of passengers has grown 50%,” he said in an interview.

Azran was among the over-70-member delegation led by MCA president Datuk Seri Ong Tee Keat for a six-day visit to Beijing to foster closer ties and strengthen co-operation in various areas such as aviation and port development.

On Tuesday, Ong met his counterparts before calling on Jia Qinglin, China’s People’s Political Consultative Conference chairman, and raised the question of greater aviation co-operation between both countries.

Azran: New routes and frequency could boost the economic wellbeing of both China and Malaysia.

It was reported earlier that Ong had said the two countries would fully utilise the rights allowed in their bilateral agreement after 2010.

The low-cost carrier will be flying to Tianjin five times a week from March and will increase the frequency to daily flights after September.

It will also begin flights to Xi’an and Chengdu this year after time slots have been confirmed.

On the new routes, Azran said they expected to see a big surge of passengers once they were able to fly direct to other Chinese cities.

Currently, AirAsia X, the long-haul low-cost affiliate of AirAsia, flies to Macau and Hangzhou in China.

The electrical engineer from Stanford University added that the carrier would make Beijing more affordable and would bring people to the capital through Tianjin.

“After this, we want to include Chengdu, Xi’an, and Chongqing.’

“We hope our presence will help people (the Chinese) here understand that the low-cost carrier brings a much greater market,” he said.

With China’s significant new middle class, Azran said the new routes would help the carrier get a greater share of the market.

“China is so huge that what we are doing now is just scratching the surface,” he added.

One challenge to entering the Chinese market had been getting approval.

“Had we not got our Minister of Transport here, we may not have obtained the approval to fly to Tianjin this fast,” he said in expressing his gratitude to Ong.

On the cost of entering the Chinese market, Azran said it would take them two to three years to recoup the expenses, adding it was long-term investment for them.

Marketing strategiesin a challenging year

Saturday January 24, 2009

AirAsia

AirAsia Bhd will increase its A&P expenditure in absolute number this year, says group chief executive officer Datuk Seri Tony Fernandes.

“We generally spend 2% to 3% of sales on A&P,” he says.

He says the carrier would do branding in the same way in any crisis.

“We will keep our branding very focused. (The year) 2009 will be one of quality – to show the world we’re as good as a full-service airline,” says Fernandes.

“We’ll look at product innovation. We won’t stop spreading our message on new routes, high quality and low fares.”

There would be more emphasis on online and digital media as they reach a lot of young people.

“I think this year we will do a lot more CRM (customer relationship management) and online marketing,” he says.

Asked whether there would be more emphasis on business travellers who would still need to travel during the downturn, Fernandes says: “We have established a team focusing on the corporate market in the last six months and have started advertising in magazines in which we traditionally would not advertise – the business magazines.

“We would’ve done this anyway even if there had not been an economic downturn.”

AirAsia Receives Enquiries On KLIA-East From Investors

KUALA LUMPUR, Jan 23 -- AirAsia Bhd has received numerous enquiries from domestic and international investors expressing interest to participate in the new low-cost carrier terminal in Labu, Negeri Sembilan.

KLIA-East, to be built on a 2,800 hectares, estimated to cost RM1.6 billion, is a private fund initiative, AirAsia said in a statement Friday.

AirAsia said since the Cabinet's approval of the Central Malaysian Vision Valley project, of which the KLIA-East LCCT is a vital component, AirAsia and Sime Darby have been in negotiations to finalise the details.

"We look forward to presenting the Deputy Prime Minister Datuk Seri Najib Tun Razak a detailed briefing on KLIA-East and the advanced plans we have developed for making the Kuala Lumpur the regional hub for low-cost carriers," the company said.

AirAsia also appreciated Najib's willingness to explore all options in helping to overcome the appalling conditions LCCT passengers face daily at the crowded Sepang LCCT.

Another look at Labu LCCT

23-01-2009

KUALA LUMPUR: The cabinet in its meeting on Wednesday decided to study again the plan by AirAsia Bhd and Sime Darby Bhd to build a low-cost carrier terminal (LCCT) in Labu, Negri Sembilan, sources said.

They said the cabinet had asked AirAsia to make a presentation to the Ministry of Finance and Economic Planning Unit next Friday on the proposed KLIA East@Labu, with the view that a project of similar scale and specifications can be carried out within the Kuala Lumpur International Airport (KLIA) grounds in Sepang.

“The Cabinet is leaning towards the airport now being constructed within KLIA,” one of the sources said. It is learnt that if the airport is to be built within KLIA, the cost can be kept to RM1.3 billion, lower than the estimated RM1.6 billion for the Labu LCCT.

It is understood that the government would ask Malaysia Airports Holdings Bhd (MAHB) and AirAsia — the two parties racing to build their own LCCTs — to “work together” towards a win-win solution.

When contacted, AirAsia group chief executive officer Datuk Seri Tony Fernandes told The Edge Financial Daily that as AirAsia understands it, the status of the KLIA East project is “approved”.

On Jan 5, the government gave Sime Darby the green light to proceed with the Labu LCCT project, which has been on AirAsia’s drawing board for the past one year.

Since the announcement, there has been mixed response from the public on the need for a new LCCT.

The proposal invited criticisms from, among others, former prime minister Tun Dr Mahathir Mohamad, who sarcastically condemned the Labu LCCT in his blog post dated Jan 12, although he later toned down his criticisms in a post dated Jan 17, suggesting that AirAsia’s needs can be catered for in the huge space at KLIA.

Advocates of KLIA East are concerned that MAHB would not be able to complete its proposed new LCCT adjacent to KLIA in time to cater for AirAsia’s exponential growth of both passengers and fleet.

Fernandes had said AirAsia would “go bust” in two years’ time if it does not have a new terminal. The carrier is looking at a new terminal by March 2011. Fernandes also raised the question of cost in his justification for KLIA East as he felt a LCCT built by MAHB may be expensive and may not fit into price-sensitive AirAsia’s operations.

Meanwhile, opponents argue that the country already has KLIA, which was built at a cost of RM10 billion, but is still grossly under-utilised, and that KLIA has enough space for expansion to cater for more passengers.

They deem the Labu LCCT a wasteful project given that new runways, control tower and fuel tank have to be built when these already exist in KLIA. They also questioned building a terminal exclusively for AirAsia when the airline and other no-frill carriers in the region can operate out of KLIA.

Despite AirAsia’s assurance that the Labu LCCT would be entirely a private initiative, sceptics worry that taxpayers’ money would eventually be spent on road and rail extensions to and from the terminal, as well as setting up new customs and immigration operations.

AirAsia launches maiden flight between Bangkok and Bali

Cheap flights carrier AirAsia launched its first flight between Bangkok and Bali on Tuesday (January 20th).

The airline also launched a new flight to the Chinese city of Guangzhou, with both flights to be operated by AirAsia associate Thai AirAsia.

Passengers on the maiden flight were greeted at Bali's Ngurah Rai International Airport by a traditional Balinese dance performance.

Commenting on the new flight, Tassapon Bijleveld, chief executive officer of Thai AirAsia, said he was "delighted" to see its launch.

"It is good news for both our business and leisure guests and we anticipate strong demand for this new route and look forward to building greater ties with the people in Bali," he said.

Mr Bijleveld added that the flight would cause an increase in the number of passengers arriving into Bangkok from Bali and Jakarta.

Bali has proved a popular holiday destination for travellers across the world, famed for its white sandy beaches and rich cultural heritage.

AirAsia announced earlier this month that it had resumed operations following an incident at the LCC Terminal in Sepang.

ASEAN basketball league moves closer to reality

Tony Fernandes of AirAsia will be one the major backers for the new basketball league

The formation of the Association of Southeast Asian Nations (ASEAN) Basketball League this week almost certainly ensures that a professional basketball league will be run across southern Asia. In planning for almost two years a US$5 million backing from Malaysian business tycoons Tony Fernandes of AirAsia and Indonesian media mogul Erick Thoir should see the league commence in September this year. The goal is to boost the mainstream popularity of basketball which, according to organizers of the new league, is already the second most popular team sport behind football.

Fernandes believes using overseas professional players will help increase the competitiveness and skills of the local ASEAN players. Fernandes said, "The aim is to develop local talent. Foreign players from outside ASEAN will be role models. Maybe one day our players will play in the NBA."

Singapore's The Straits Times quoted secretary general of the International Basketball Federation (FIBA), Patrick Baumann, as saying "Asia was ready for a professional league but warned organizers will have to ensure it doesn't fade away after a few years. The time is right but it is not going to be simple to sustain the league". He further added that "there has to be good entertainment. The clubs need to be managed professionally and well funded. You cannot have the league for one or two years and then stop."

Addressing concerns over the current financial crisis and its possible impact on the launch of the league Fernandes said, "Yes, there will be a lot of obstacles and road blocks. But no mountain will stop us. During an economic downturn like now, this new league will create jobs."

The composition of the league is still under discussion however it is expected that at least eight teams will part of the series this year. Each nation will be permitted a maximum of two privately owned teams. Other details including prize money, sponsorship and number of games is still in planning. The league will be organised by the South-east Asian Basketball Association which governs basketball across the region.

Singapore Slingers are expected to be one of the first confirmed teams in the new competition. Bob Turner, CEO of the Slingers, said "We are definitely very interested. We believe that this will take the sport to the next level and we hope to confirm our entry as soon as possible."

The league is tentatively scheduled to start in September 2009 and continue until February 2010. It will initially consist of eight teams that will play on a home-and-away basis. The champion will be the last team standing after a knock-out playoff round.

AirAsia to increase services to Macau

AirAsia announced (20-Jan-09) additional flights to Macau to be effective from 01-Mar-09. Air Asia is currently operating 6 daily flights linking Macau with Kuala Lumpur and Bangkok, with 3 daily flights to each of those cities.

Additional flights to Macau include:

*Penang-Macau - New route.
*Kota Kinabalu-Macau - Reinstate the service;
*Kuching-Macau - Reinstate the service;
*Kuala Lumpur-Macau - Increase frequency to 4 flights daily;