Sunday, July 26, 2009

Good response, so AirAsia increases KL-Taipei flights

22 July 2009

PETALING JAYA: AirAsia is expanding the frequency of its Kuala Lumpur-Taipei route from five a week to daily flights, starting Oct 19.

The route was launched in April and had received overwhelming response, said AirAsia chief executive officer Azran Osman Rani.

“We are running at more than 75% load factor. More than 20,000 seats were sold within the first 12 hours of the sales announcement in April and forward bookings were exceptionally strong,” he said.

The all-in-fare is priced at RM129. Tickets for the period from Oct 19 to Jan 10, 2010 can be booked from tomorrow to July 31.

Citibank AirAsia credit cardholders get to enjoy 24-hour priority booking, starting today.

Free room stay is also offered, via the airline’s GoHoliday package, at Hotel Renaissance, Hotel Equatorial, One World Hotel, Corus Hotel and Tune Hotels.

Another promotion, Best Online Rates in Taipei, offers five-star hotel rooms for as low as RM383 per night.

AirAsia to fly from Miri, Tawau to Singapore

20 July 2009

AIRASIA
will launch two new flights from Miri and Tawau to Singapore from Sept 9 to build up a stronger virtual hub in the “lion city”.

The introduction of these new routes makes AirAsia the first and only airline flying the Singapore-Miri and Singapore-Tawau sectors.

With its vast connectivity around the region, AirAsia now has a total number of 406 weekly flights to and from Singapore.

“We are proud to open up new markets as these sectors are not served. Students, families and foreign workers can now take advantage of our low fares and renew their social ties more frequently or even indulge in leisure holidays to both countries,” said AirAsia regional head of commercial Kathleen Tan.

“There are countless attractions in East Malaysia and Singapore offering a wonderful journey of discovery into their culture and heritage.

“Our recent initiative to remove the administration fee reiterates AirAsia’s commitment to offer big value so everyone can fly following our move to abolish fuel surcharge last year,” she added.

The two new routes will draw more inbound international tourist traffic arriving from Singapore into Sabah and Sarawak alongside from Kuala Lumpur through AirAsia X’s long haul network.

This brings in Chinese, Australians and European tourists, who are often interested to explore surrounding cities in the region and these routes will entice them to visit the state for its rich ecotourism activities.

AirAsia, through its holiday division GoHoliday, is also offering its guests free rooms (subjected to terms and conditions) when they book at its partner hotels in Singapore such as Concorde Hotel Singapore, Le Peranakan Boutique Hotel Singapore, Siloso Sentosa Hotel, The Metropolitan Y Hotel, Hotel Royal and Quality Hotel Singapore.

This promotion is valid via goholiday.airasia.com and is available on first come, first served basis.

Passengers can also follow AirAsia on Twitter, Facebook, and AirAsia blog where they will provide real time updates on the latest promotion.

Airasia celebrates Perth � Bali inaugural flight

20 July 2009

AirAsia, Skytrax World’s Best Low-Cost Airline celebrated the much awaited Perth-Bali flight The inaugural flight from Bali - Perth today carried 100% load both ways signifying the stout demand for the sector. Commencing August 19, 2009 AirAsia will be servicing the Bali-Perth route between Ngurah Rai International Airport and Perth Airport with 2 direct daily flights marking a major tourism and economic coup for both countries. Jointly, AirAsia Group has 21 flights weekly to Perth inclusive of one daily direct flight departing from Kuala Lumpur.

Perth is the first Australian destination to be serviced from Indonesia by AirAsia Indonesia and it is the 4th international route operated from the Bali hub after Kuala Lumpur, Bangkok and Singapore.
AirAsia Indonesia has succeeded to pass the strict regulations of the Foreign Airline Operating Certificate of Australia and has met the requirements of the Australian Civil Aviation Safety Authority (CASAA), demonstrating AirAsia’s high safety standard.

In addition to that, AirAsia, the champion of low fares will bring its innovative products and services, spacious and comfortable cabin, fun and friendly crew to its guests so that they will enjoy unparallel level of comfort and convenience. AirAsia also offers the most extensive route network in the region hence AirAsia guests will enjoy seamless access in the region and beyond including routes serviced by AirAsia’s long-haul affiliate, AirAsia X.

Chief Executive Officer of AirAsia Indonesia Dharmadi, says “Bali is an ideal and exciting choice as it is a prime holiday destination for Australians. With its unique culture, spectacular beaches, water sports activities, Bali needs no introduction to them. There are quite a number of Indonesians who are not only pursuing their studies but are also residing in Perth. The number of Australian tourists visiting Bali in the first quarter of 2009 rose 24.85 percent to 71,970 from 57,647 in the same period last year. The Australian tourists accounted for 14.67 percent of the total tourists coming to the Island of Paradise in the first quarter, out of the number, 71,199 of the Australian tourists visited Bali via Ngurah Rai International Airport in Denpasar,”

“We are very keen to position Bali as the gateway to Indonesia and other Asean cities as the airport also offers strong domestic and international connections. Indeed we have recorded an increase of inbound traffic to Bali and other parts of Indonesia from Perth and surrounding Western Australia with the inclusion of this new Perth-Bali service.” added Dharmadi

Kathleen Tan, Regional Head of Commercial of AirAsia Group commented “We are very thrilled with AirAsia Indonesia’s first foray to Perth, Australia today. AirAsia is breaking the trend with our aggressive expansion plans and increasing frequencies despite the challenging economic climate and when other airlines are cutting routes or downsizing capacity. The demand for Perth-Bali route has been phenomenal; we’ve sold over 75,000 seats since last May when we opened for sale. AirAsia is very competitive and committed in offering the lowest fares and many will find that AirAsia is a highly attractive option through our 8 hubs in Penang, Kuala Lumpur, Kota Kinabalu, Johor Bahru, Bangkok, Jakarta, Bali, Bandung and a virtual hub in Singapore. This has enabled us to build an extensive route network with the greatest Asean and Indochina connection.”

Meanwhile Mr. Brad Geatches, CEO of Westralia Airports Corporation says "The introduction of this new route is great news for West Australians who can now expect more competitively-priced flights and greater access to this favourite holiday destination. This new service not only offers great value flights to Denpasar, it also opens up the entire Asia region to travellers who can use Bali as a stop over to other destinations. We expect both our inbound and outbound traveller numbers to continue to grow over the coming months thanks to the new service."

AirAsia is also offering great hotel rates and exciting packages under GoHoliday, its one stop travel portal

at goholiday.airasia.com. Guests can benefit from greater savings and value for money on their accommodation in addition to the low fares that AirAsia offers. Currently, GoHoliday has a wide range of over 50,000 hotel partners where guests can select from 3-star hotels, 5-star hotels or even Boutique hotels to cater to every traveler’s budget.

The new route will be served by AirAsia’s brand new Airbus A320 aircraft, one of the most modern aircraft that boosts efficiency, enhances reliability and provides higher service levels to AirAsia’s guests. The Airbus A320 family provides operators with the highest degree of operational commonality and ensures guests’ safety and comfort.

Sunday, July 19, 2009

AirAsia To Resume JB-Bangkok Flight

17 July 2009

JOHOR BAHARU -- Low cost carrier AirAsia is resuming it's Johor Baharu-Bangkok flight beginning July 21, three weeks after it stopped the service.

And the resumption of the two-hour long flight from the Senai airport here has met with approval from the State tourism authority and travel agents alike.

But the question which still trouble them is whether AirAsia would commit themselves to continue servicing the route or put a stop to it like the previous two occasions where they decided that the JB-Bangkok route would no longer be part of their operations.

The AirAsia JB-Bangkok flight was first introduced in 2005 but it was stopped a year later, and in February 2008 the flight resumed only to be stopped again in the beginning of July this year.

Johor executive councillor in charge of tourism Hoo Seong Chang welcomed AirAsia's latest decision but he cautioned against the disruption of the service in future.

"It's the state goverment's policy to make the Senai airport into a passenger hub and therefore we welcome any airlines which want to fly or land here.

"AirAsia has been supportive but I can also understand the situation they are caught in sometimes. They told us that the low load factor is one reason why they sometimes stop certain flight.

"Maybe the situation now with the spread of the HIN1 virus is preventing people from travelling but I urge AirAsia to be more patient. When the situation improves more people will travel," said Hoo.

The resumption of the flight has also been welcomed by the Tourism Authority of Thailand (TAT) which sees the JB-Bangkok flight as very convenient for travellers from Johor.

Infact Thailand or rather Bangkok in particular remains a favourite holiday destination for Malaysians with arrival at 1.82 million for the year 2008, an increase of 18 percent from the previous year's arrival of 1.54 million.

"The figures are encouraging but at the same time, to go on a holiday to Thailand also means value for money," said Richard Lim, the TAT marketing manager for Malaysia and Brunei.

AirAsia soars on Bali demand

17 July 2009

Bali’s popularity among Perth holidaymakers seems set to continue as AirAsia’s first flights on its new Bali-Perth route were packed to capacity this morning.

The low-cost airline announced last week that because of high demand, it would add a second daily flight on the route from August 19.

“The demand for Perth-Bali route has been phenomenal; we’ve sold over 70,000 seats since last May when we opened for sale,” said regional head of commercial of AirAsia group Kathleen Tan.

Perth is the first Australian destination serviced from Indonesia by AirAsia Indonesia and it is the fourth international route operated from the Bali hub after Kuala Lumpur, Bangkok and Singapore.

Chief executive officer of AirAsia Indonesia Pak Dharmadi said the route would also service the growing number of Indonesians that work and live in Perth.

“Bali is a prime holiday destination for Australians (and) … we are very keen to position Bali as the gateway to Indonesia and other Asean cities as the airport also offers strong domestic and international connections,” Mr Pak said.

The number of Australian tourists visiting Bali in the first quarter of this year rose 24.85 percent to 71,970 from the same period last year, according to AirAsia figures. Australian tourists accounted for 14.67 percent of the total number of tourists visiting the island in the first quarter.

CEO of Westralia Airports Corporation Brad Geatches said the new route would allow more competition and better prices for WA travellers.

“This new service not only offers great value flights to Denpasar, it also opens up the entire Asia region to travellers who can use Bali as a stop-over to other destinations. We expect both our inbound and outbound traveller numbers to continue to grow over the coming months.”

Airlines tighten baggage rules to help trim costs

17 July 2009

ATA says every 1% improvement in fuel efficiency across industry can cut fuel costs by US$700mil annually

PETALING JAYA: Most airlines, in trying to mitigate the impact of fuel price volatility, have resorted to stringent baggage restrictions as part of measures to achieve better fuel efficiency.

According to the International Air Transport Association (IATA), every 1% improvement in fuel efficiency across the aviation industry can lower fuel costs by US$700mil annually. This is unsurprising since fuel cost is the second-largest cost for airlines after labour.

Passengers on AirAsia flights are encouraged to travel light, like using carry-on luggage, to minimise checked-in baggage. They are allowed to have one carry-on luggage of up to 7kg, plus free 15kg allowance for checked-in baggage.


In comparison, Malaysia Airlines (MAS) allows for hand luggage to have a maximum combined weight of 5kg and free 20kg allowance for checked-in luggage for economy class (see table).

MAS general manager for corporate safety, security, health and environment, Ooi Teong Siew, said reducing weight was one of the static techniques, which include ensuring aircraft are well trimmed and engines cleaned regularly.

Dynamic techniques, meanwhile, are factors that have an impact on the flight path like direct routings, economical speeds, continuous descents and optimum altitudes.

“These efforts, without compromising on safety and quality, have reduced our fuel burnt rate and enabled us to contribute to cost reduction of RM2.3bil from 2006 to 2008,” Ooi said in an e-mail reply to StarBiz.

AirAsia Bhd group chief executive officer Datuk Seri Tony Fernandes noted that for every flight hour, an additional 1,000kg of take-off weight would burn up 90kg fuel.

AirAsia also achieved greater fuel efficiency with its new fleet of A320 planes, as they offered higher unit fuel consumption per flight while high dispatch ability and operational efficiency contributed to lower maintenance expenses, Fernandes said.

“We adhere to a quick turnaround of 25 minutes, which leads to high aircraft utilisation, lower costs as well as greater airline and staff productivity. Fuel consumption-wise, the quick turnaround means less time spent by an aircraft idling on the ground, which reduces unnecessary fuel consumption and harmful emissions,” he said.

Such practices kept costs down and ensured minimum aircraft weight, Fernandes said, adding that savings and benefits would translate into low fares for passengers.

Ooi said MAS also minimised the use of auxiliary power unit on ground, ensured faster connection of ground power, chose the best flight profile as well as adopted a continuous descent approach at applicable airports, and regular airframe and engine maintenance.

“Other examples include replacing the heavy unit loading devices with those which are 40kg lighter and using nearer alternate airports.”

MAS is anticipated to achieve greater fuel efficiency when it takes delivery of 35 B738 late next year and the A380 in 2011.

Meanwhile, FlyFirefly Sdn Bhd managing director Eddy Leong said the airline did not practise overzealous efforts in enforcing one hand luggage and checked baggage limits.

“Firefly’s business model was designed to be light from the beginning because we chose a very fuel efficient and modern ATR72-500 aircraft,” he said.

The focus then is on eliminating hassles, enriching the travel experience and optimising costs.

“For example, our full complimentary food and beverage on board includes serving muffins on paper cups and ensuring that we cater exactly to the passenger count. Any extras would be given to passengers.

“In the end, there is no waste to offload, no wastage to worry about. Our ultimate gain is in the revenue side and loyalty from passengers,” Leong added.

Emirates Airlines, in contrast, increased the free baggage allowance across its network effective May 4, with the exception of countries that apply one-piece concept for checked-in luggage.

Economy class travellers are now given 30kg from 20kg previously.

An analyst with a local brokerage said the impact of strict baggage terms was unlikely to have a huge impact on bottomline.

Airlines also tried to carry the correct amount of jetfuel and to power planes by ground power units during waiting periods instead of jetfuel to achieve better fuel efficiency, he said.

IATA, on its website, indicated efforts being taken with air navigation service providers, air traffic controllers, airlines and other key stakeholders to save one minute per flight via better airspace design, procedures and management.

“If successful, this initiative could reduce total industry operating costs by over US$1bil a year and significantly reduce environmental emissions,” the association said, noting that on average, airlines spent US$100 per minute per flight in total operating costs.

AirAsia plans to sell three B737 aircraft

17 July 2009

PETALING JAYA: AirAsia Bhd plans to sell the three B737 aircraft it owns as part of a plan to have a fleet comprising only A320s, says group chief executive officer Datuk Seri Tony Fernandes.

The airline’s 16 B737s are used by its associate companies in Indonesia and Thailand for their operations. Of the 16, three are its own with no financial obligations while 13 are leased from GE Commercial Aviation Services (GECAS).

The plan is to replace the entire fleet of B737 with new A320-200s by selling three and returning the rest to GECAS.

However, the leased aircraft have different leasing tenures. If AirAsia can find a buyer for its aircraft and get “replacement” lessors for the 13, it would not have to worry about keeping the B737s for the full tenure.


If it decides to return the leased aircraft sooner, there may be a penalty but finding a new lessor would help. AirAsia is therefore working out arrangements to minimise its liability by helping to find a new lessor but this is subject to GECAS’ approval.

That is why AirAsia has started talks on both the sale and leasing arrangements for the B737s.

“We are currently in negotiations with several parties, both potential lessors and buyers,’’ said deputy CEO Datuk Kamarudin Meranun.

But as he pointed out: “AirAsia is not in a rush to sell the planes and certainly not at fire-sale prices. We will only dispose of them if the price is right.’’

Both Fernandes and Kamarudin said no timeline had been set for the aircraft disposal.

AirAsia ordered 175 aircraft with an option for 50 more from Airbus SAS in December 2007. Thus far, it has taken delivery of 61 A320-200 and will receive a further nine this year. It is slated to take delivery of 24 aircraft this year and another 24 in 2011.

Recently, the low-cost carrier decided to delay the delivery of eight aircraft scheduled for next year and negotiations are under way to delay a further eight for 2011.

That means it will only take delivery of 16 aircraft next year. This year it has received five of the 14 new aircraft, of which three will be used for the Malaysian operations, seven for Indonesia AirAsia and four for Thai AirAsia.

With the A320-200 fleet slowly but surely taking shape, the pressing question is whether AirAsia would be able to dispose of its B737s given the lack of demand for air travel and airlines are contracting capacity.

“There is a market for the aircraft but it depends on pricing, quality of aircraft and its maintenance record,’’ Kamarudin said.