AirAsia to expand in Asia

23 November 2009

KOLKATA: AirAsia Bhd is gearing up for network expansion in India with more destinations after achieving a wide coverage in China.

The company currently has about 200 flights a week to seven cities in China.

AirAsia regional head of commercial, Kathleen Tan, said the budget carrier had been looking at the Indian market for a long time and that it took a while to go there due to a lot of documentation issues.

“There is a lot of demand for flights between India and Kuala Lumpur. The expansion of the Indian routes will help open up the tourism industry in both countries and stimulate the labour market as well,” she told reporters in Kolkata last Friday at an event to commemorate the inaugural KL-Kolkata flight.

From left: Sanja Budhia, Kathleen Tan, Manabendra Mukherjee and Salman Ahmad lighting a diya, or oil lamp

Present at the event were Consul of Malaysia to India Sanjay Budhia, Tourism Minister of West Bengal Manabendra Mukherjee and Malaysia Tourism Promotion Board deputy director for international marketing division covering South Asia, West Asia and Africa, Salman Ahmad.

Tan said the airline was looking to serve Bangalore and Hyderabad in India from KL next year and its associate AirAsia X would look to serve Mumbai and New Delhi.

“We have a hub in Bangkok within our network and we are planning to do the Bangkok-Kolkata, Phuket-Kolkata as well as Bangkok-Mumbai and Bangkok-Delhi routes,” she said.

Following the start of service to Trichy last year, AirAsia launched three new routes from KL to Kolkata, Kochi and Trivandrum which opened for ticket sales on Oct 15, 2009.

Kolkata is recognised as one of four major metropolises in India along with New Delhi, Mumbai, and Chennai.

The city in West Bengal is home to renowned personalities like Nobel Laureate Rabindranath Tagore, philosopher Ramakrishna and film director Satyajit Ray.

Kolkata is a haven for food lovers and is well connected to many Indian cities as a majority of domestic airlines have direct services to and from Kolkata.

Tan said Kolkata was one of the busiest cities in India and there was demand for the Kolkata-KL route as it had not been served from KL directly in the last few years.

“We have sold over 30,000 seats as of today (Friday) for the new route. It is a significant achievement for this market,” she said, adding that the airline targeted various segments for this route, including those travelling for business, holiday or religious purposes.

AirAsia is confident the route will provide a boost for tourism and stimulate the economies of India and Malaysia.

Furthermore, the route provides a direct connection between West Bengal and Malaysia via the KL hub, which in itself is a gateway to many destinations across Asia, the UK and the Middle East.

“With Kolkata added to our extensive network, AirAsia is unlocking the potential of international air travel from KL to eastern India and its surrounding areas. We are thrilled to be serving Kolkata direct, a huge market that no other airline is serving direct,” Tan said.

For all the flights to India, AirAsia uhses the Airbus A320.

KUALA LUMPUR: Budget carrier AirAsia said Friday its net profit totaled 130 million ringgit ($38.4 million) in the third quarter, buoyed by rising passenger numbers and income from add-on services.

AirAsia's profit for the quarter through September marked a turnaround from a 466 million ringgit ($137 million) net loss in the same three months of last year.

Revenue for the quarter grew 4 percent to 740 million ringgit ($218.5 million) on strong passenger growth.

Its combined Malaysian, Indonesian and Thai operations carried 5.9 million passengers, up 24 percent from a year eralier, AirAsia chief executive Tony Fernandes said in a statement.

"While the airline industry is facing arguably the most difficult environment in recent memory, AirAsia is determined to grow traffic, market share and profits," Fernandes said.

Ancillary income from new products and services offset the impact of lower fares, and jumped by 86 percent to 130 million ringgit ($38.4 million) in the latest quarter, the statement said.

AirAsia remains on course to carry 25 million passengers for the full year, Fernandes said. It also expects to launch new routes to Indian cities as well as boost flights to Singapore, China and various Southeast Asian countries.

The carrier has partially hedged its fuel requirements for the fourth quarter to mitigate the effect of oil price volatility and is assessing the possibility of further hedging beyond 2009, Fernandes said.

By LEE KIAN SEONG The Star

Off to a flying start by blogging

21 November 2009

THE online media poses many possibilities, from rising to stardom or applying for a dream job with just a click.

However, the idea of being recruited as a pilot through a blogging contest seems a bit far-fetched.

Never did AirAsia’s So You Wanna Be A Pilot contest winners Samuel Yee and Soon Chee Keong imagine they could achieve their dream of becoming a pilot by winning an online contest. That is, until they were announced the winners.

It did not help that Soon was informed on April Fool’s Day and he initially thought it was a prank.

The sky’s the limit: Soon (left) and Yee raring to take off.

“When I realised that I had really won — it was listed in the results; this was not an April Fool’s joke — I was screaming in class.

“My friends were sceptical at first, thinking, mistakenly, that I had been recruited as a pilot by just blogging.

“However, this is just an express ticket; it does not mean I can automatically become a pilot. I will still have to go through all the interviews and tests,” he said, adding that he had applied to be a pilot a year ago but failed the written test.

He said after applying to be a pilot through the conventional way, the waiting was painful.

“You either hear from them that you had made it or you don’t ever hear from them,” he said. “With the blog contest, at least you’ll know whether you’ve made it when the results are announced,” he said.

Yee, who learnt of the contest from friends, had never blogged before but decided to give it a go in a bid to realise his dream of becoming a pilot.

At the age of 27, he was considered ineligible by some airlines that prefer applicants who are below 26.

“I’ve tried numerous times and have applied to MAS and SIA.

“If I had not made it this time, I would have applied again next year,” the determined Yee said.

He chose to blog about the aircrash at Narita airport in Japan and highlighted the role of pilots in such an incident.

The duo were chosen from more than 300 blog entries submitted to AirAsia’s official corporate blog “Just Plane Thoughts” (blog.airasia.com/index.php)

It all began when Derek Tan Yeong Par of AirAsia’s interactive marketing department mooted the idea of developing things through social media to his boss, AirAsia founder Datuk Seri Tony Fernandes, and was given the green light.

“Airlines have strict requirements and look for those with the best results.

“(With this contest), we’re using a fun approach to recruit pilots. Instead of getting them to send their CVs, I said, ‘Let’s look at the person behind the resume.’

“This is a step of trust for the candidates to pre-qualify themselves. We believe that people are mature enough to use social media to apply for a job,” he said.

The result was overwhelming.

“It was picked up by Reuters and a newspaper in Singapore. It was hyped up within the aviation circles and discussed in aviation forums and blogs in Russia, Japan and China.

“The hits reached 20,000-30,000 within just a few days,” he said.

Of the more than 300 blog entries received, 35 were shortlisted. After numerous rounds of interviews and selection processes, three were chosen. However, one turned down the offer at the last minute.

There were even entries from Japan, Singapore, Africa, Spain and other countries although it was stated that only Malaysians were eligible to apply.

Tan was inspired by his brother, who had applied to be a pilot many times before succeeding.

“There’s a new paradigm shift. The human side has been neglected.

“Being a pilot is not only about having good grades but being able to handle emergency situations in the airplane and think on the spot.

“The blogging contest provided us a chance to know the applicant’s determination and decision-making ability. We could analyse the person’s character through the writing,” he said.

Tan revealed that in some cases, the parents were more anxious than their children.

“(After the results were out) some even called up to ask why their child had not made the cut.

“We also tell those who were not selected where they were lacking,” he said.

Soon and Yee will be heading to Gold Coast, Australia, for a year of training before reporting back to AirAsia for another year of training.

The contest not only provided the chance for the duo to realise their dreams but also inspired others.

“During the contest period, we (applicants) inspired each other and some said they are now more determined to pursue their dreams,” Soon said.

By OH ING YEEN The Star

Ancillary income boost for AirAsia

21 November 2009

KUALA LUMPUR: AirAsia Bhd reported a net profit of RM130.1mil for the three months ended Sept 30 on a 4.5% growth in revenue to RM739.7mil against RM707.9mil a year ago.

“The growth in revenue was attributed to higher ancillary income and other operating income,” it said.

The carrier’s core operating profit was RM34mil, a reversal from a loss of RM82mil in the previous corresponding period. In addition, the ringgit’s strengthening against the US dollar resulted in a translation gain of RM102mil during the quarter.

It recorded a pre-tax profit of RM136.3mil from a pre-tax loss of RM504.3mil and earnings per share climbed to 5.3 sen from a loss per share of 19.6 sen before.

AirAsia’s passenger volume grew 19% to 3.6 million from 3 million a year ago. Its average fare was lower at RM142 while load factor remained at 75%.

For the nine months ended Sept 30, AirAsia’s net profit rose to RM472.4mil, or 19.2 sen per share. Revenue was up 18.1% to RM2.3bil from RM1.9bil previously. Its core operating profit was RM328mil for the nine months against a loss of RM35.3mil a year ago.

“The group unwound fuel hedges in the second quarter ended June 30 at a cost of RM6mil. The ringgit strengthened against the US dollar and this resulted in a translation gain of RM24mil during the period,” it said, adding that AirAsia also registered a gain in the non-recurring items related to the disposal of assets during the period.

The carrier said its net cashflow was RM296mil, an increase of RM285mil against the preceding quarter. “The significant increase in net cashflow stems from the group’s capital raising exercise which raised net proceeds of RM505mil,” it said.

Meanwhile, the group’s total debt as at Sept 30 stood at RM7.2bil. Its net debt after offsetting the cash balances amounted to RM6.7bil, translating to a net gearing of 2.6 times.

The Star

AirAsia launches new flights to three Indian cities

21 November 2009

SEPANG: AirAsia is set to be the most connected non-local airline in India with nine new destinations.

Three new flights to the Indian cities of Kochi, Kolkata and Trivandrum were launched in Kolkata yesterday, adding to AirAsia’s existing destination of Tiruchirappalli, which was launched last year.

“AirAsia is now operating in a market of 2.5 billion people and it is a nice position to be in,” said AirAsia CEO Datuk Seri Tony Fernandes in a press conference yesterday.

The low-cost airline also operates flights to China, Indonesia, the Philippines, Myanmar, Vietnam, Thailand, Laos, Singapore, Taiwan, Cambodia, Brunei, Sri Lanka, Bangladesh, Australia, United Kingdom and the Middle-East.

CEO of the Year: Fernandes speaking at a press conference yesterday.

Fernandes was watching the launch via video conference at the AirAsia office in the Low-Cost Carrier Terminal here before the press conference.

Flights to Kochi and Kolkata will operate daily while there will be two flights to Trivandrum operating two or five times weekly.

Fernandes also announced three more flights to Chennai, Bangalore and Hyderabad starting from April next year.

The three cities would be connected to Kuala Lumpur, with an extra flight to Chennai from Penang.

Fernandes also said that there would be flights to Mumbai and Delhi towards the end of the year by AirAsia X.

“About eight to 10 aircraft will service the routes once a day,” Fernandes added, saying they were also looking to fly to Delhi, Kolkata and Amritsar from Bangkok.

“The Indian middle class is growing fast. With our low fares, we can offer them a lot,” Fernandes said.

Fernandes was also presented the Airline CEO of the Year award by Hong Kong- based commercial aviation magazine Orient Aviation.

This was the first time the award was presented to a non-member of the Association of Asia Pacific Airlines, whose members include MAS, SIA and Cathay Pacific, among 14 others.

By Shaun Ho, The Star

Malaysia AirAsia swings to Q3 profit; upbeat on outlook

20 November 2009

* Q3 net profit 130 mln rgt vs loss 465.5 mln rgt yr ago

* Q3 revenue 739.7 mln rgt vs 707.9 mln rgt yr ago

* Q3 passenger volume up 19 pct on-yr, avg fare down 27 pct

* Q3 forex translation gain 24 mln rgt

* Shares end down 2.3 pct at 1.28 rgt ahead of results (adds quotes, comment, details)

KUALA LUMPUR- Southeast Asia's largest budget carrier AirAsia Bhd (AIRA.KL) flagged on Friday a further recovery in air travel demand after reporting a profit in the third quarter, helped by higher sales of non-ticket items.

Airlines globally have struggled in the past year as the economic crisis sapped demand for travel and trade, but budget carriers have largely outperformed as passengers look to cut costs. "Based on the forward booking trend, the underlying passenger demand in the fourth quarter is positive," Tony Fernandes, group CEO of AirAsia, in a statement.

AirAsia booked a net profit of 130 million ringgit in July-September, against a loss of 465.5 million ringgit a year earlier.

AirAsia's average fare fell 27 percent to 142 ringgit in the third quarter, but the 86 percent jump in ancillary income, or income from sources other than ticket sales, more than offset the lower fares.

Ahead of the results, 16 analysts polled by Thomson Reuters I/B/E/S forecast that AirAsia will book a full-year net profit of 521.5 million ringgit versus a loss of 471.7 million in 2008.

Singapore Airlines (SIAL.SI) and Korean Air Co (003490.KS), two of Asia's biggest airlines, last week flagged a recovery in travel demand after their quarterly results showed some signs of improvement. [ID:nSP492399]

"While the airline industry is facing arguably the most difficult environment in recent memory, we see vast opportunities to grow our business," Fernandes said.

The budget airline will launch several new routes over the next 12 months, including to several Indian cities, he added.

AirAsia has secured 20 percent of the airline's fourth quarter fuel needs at an average fixed swap rate of $74.98 per barrel.

Analysts said AirAsia is well-positioned to benefit from more tourist traffic into Singapore when the two integrated casino resorts open their doors to the public in early 2010.

AirAsia's share price has gained 48 percent since the start of the year, in line with the 45 percent rise in the broader market index .KLSE.

Out of 18 analysts tracked by Thomson Reuters I/B/E/S, nine had strong buy or buy calls for AirAsia. (Reporting by Julie Goh; Editing by Lincoln Feast)

AirAsia plans Thai, Indonesia listings - paper

20 November 2009

KUALA LUMPUR- Malaysian low cost carrier AirAsia (AIRA.KL) plans to list on the Thai stock exchange and later on in Indonesia, its chief executive Tony Fernandes told the Business Times newspaper.

"The plan is to list AirAsia group in Thailand and later in Indonesia," Fernandes told the paper in an interview published on Friday ahead of the company's third-quarter earnings.

Fernandes said the move would enable AirAsia to tap into other liquid Asian stock markets and said the airline was "looking at issuing new shares".

Malaysian bank CIMB (CIMB.KL) recently listed in Thailand.

AirAsia's share price has gained 52 percent since the start of the year, outperforming the 45.4 percent rise in the broader market index .KLSE.

(Reporting by David Chance; Editing by Valerie Lee) ((david.chance@thomsonreuters.com; +603 2333 8033; Reuters messaging david.chance.reuters.com@reuters.net; bureau email areuters@gmail.com))

Tune Hotels to add 64 by 2013

19 November 2009

Tune Hotels, controlled by Malaysian budget carrier AirAsia, has announced that a total of 64 hotels are currently under development across cities such as India, Thailand and Indonesia.

Presently, Tune Hotels operates seven hotels and a further 64 hotels are scheduled to be completed by 2013.

In addition, the group is planning to launch Tune Hotels in London, Melbourne and other Australian cities as AirAsia has recently commenced new flights to these destinations.

It was also reported that Singapore, despite its high development costs, and China are on the radar of the group.

Source : HVS International