Tune Talk eyeing 400,000 subscribers

25 November 2009

It hopes to achieve target by leveraging on AirAsia and Tune group

KUALA LUMPUR: Mobile service operator Tune Talk Sdn Bhd is targeting to achieve 400,000 subscribers by year-end by leveraging its links with low-cost carrier AirAsia and the Tune group.

The company has already secured over 200,000 subscribers since its launch on Aug 19.

Chief executive officer Jason Lo said he was confident that Tune Talk would breach the 300,000 subscriber-mark by year-end based on the “rate it was going”.

“We’re looking at 300,000 to 400,000 subscribers by year-end,” he said after presenting prizes to its 100,000th and 200,000th subscriber yesterday, adding that Tune Talk was on track to signing up one million customers within a year of operations.

Lo said Tune Talk was currently registering an average of 4,000 new subscribers per day with an average revenue per user of RM45 per month. He said the company was targeting 6,000 subscribers per day by year-end.

The Tune group is the brainchild of AirAsia Bhd group chief executive officer Datuk Seri Tony Fernandes, who is also chairman of Tune Talk.

Lo said Tune Talk started offering its starter packs on board AirAsia flights last week.

“We are on board AirAsia flights and hope to maintain that partnership with them. We feel that we can become a relevant player in Asean, especially if we can leverage off AirAsia’s extensive network,” he said.

“Tune Hotels will also be launching 50 hotels by 2012. Right now, Tune Hotels (which has hotels in Malaysia and Bali, Indonesia) is doing 60,000 to 70,000 guests per month.

With 50 hotels, that’s three million guests and we have to service that as well,” Lo added.

He also said Tune Talk was in preliminary talks with two of Singapore’s three mobile operators to expand its services to the island republic and potentially offer zero or reduced roaming to its subscribers.

Tune Talk has been offering AirAsia E-Gift vouchers daily and RM100,000 personal accident coverage to its subscribers since its launch.

Operating as a mobile virtual network operator on Celcom (M) Bhd’s 2.5G network, Tune Talk charges a flat rate of 22 sen per minute for calls to any operator in Malaysia while an SMS costs 5 sen each.

It claims that its IDD rates are 10% to 30% cheaper than other operators.

The Star

AirAsia launches Abu Dhabi Flights with “Free Seats” Promotion

24 November 2009

AirAsia X today launched five times weekly direct flights between Abu Dhabi in the UAE and Kuala Lumpur in Malaysia.

To celebrate, the low cost long-haul airline is offering what it calls “Free Seats” on the route to customers who book their flights and hotels via GoHoliday - AirAsia’s holiday division - for selected hotels in Malaysia and Abu Dhabi.

The “Go Holiday Free Flight” promotion is available for booking between 24 and 27 November 2009, for travel between 1 December 2009 and 31 January 2010. Terms and conditions apply.

H.E. Dato’ Yahaya Abdul Jabar, Ambassador of Malaysia to the UAE said, “Today’s launch signifies an important milestone in the field of aviation and tourism to Malaysia as well as the UAE. The launch of 5 times weekly flights to Abu Dhabi from Kuala Lumpur will be mutually beneficial to both Malaysia and Abu Dhabi tourism, as we can expect a considerable increase in both inbound and outbound travel to both destinations, which bodes well for the economy for both Malaysia and the Middle East. Malaysia looks forward to increase business, commercial, and investment ties with the new connection between the two countries. We see an increase in Malaysian companies’ business interest investing in Abu Dhabi. We anticipate their investments in areas of property development, tourism, agro-based industries, biotechnology, food processing and oil and gas.”

Abu Dhabi is AirAsia X’s first destination in the Middle East. Flights depart Kuala Lumpur (days 1,4,5,6 and 7) at 22:00 to arrive in Abu Dhabi at 01:30. The return leg from Abu Dhabi departs (days 1,2,5,6 and 7) at 02:55 to arrive in Kuala Lumpur at 13:55.

Mr. Ahmed Hussein, Deputy Director General, Abu Dhabi Tourism Authority said, “Today, AirAsia X is really bringing an X factor to Abu Dhabi – X for Exceptional air links that AirAsia is now providing this destination to better penetrate the Xtremely important Asian market. There is much here to engage the Asian traveller – and indeed the authority is so convinced of the market that it is now running specialist training courses for our industry stakeholders on how to specifically serve this segment of the market which has its own individual needs.”

“With a flying time of only around seven hours to Singapore and Malaysia – the market has much to offer us. AirAsia’s network to the vast market Chinese market will also increase Abu Dhabi’s access to the People’s Republic which we regard of such great potential that the authority now has three offices operating there,” Mr. Hussein added.

AsiaTravelTips

24 November 2009

AirAsia’s shares gained 0.8% yesterday, despite being cut from ‘trading buy’ to ‘sell’ by OSK, “on the back of lower average fares and higher fuel costs”.

OSK also downgraded AirAsia’s fair value to MYR1.13, “based on 10x FY10 EPS”, adding that it believes “the price undercutting (for air fares) and escalating crude oil price would persist in the short to medium term”.

Selected LCCs daily share price movements (% change): 23-Nov-09

Source: Centre for Asia Pacific Aviation & Yahoo! Finance

Tourism Minister Asks Airasia To Operate KL-Chengdu Direct Flights Daily

23 November 2009

CHENGDU-- Tourism Minister Datuk Seri Dr Ng Yen Yen has asked AirAsia to consider daily direct flights between Chengdu and Kuala Lumpur following the good response to the four times a week direct flights between the two cities.

She said the low-cost carrier launched KL-Chengdu and Chengdu-KL direct flights on Oct 20 with four flights a week and the passenger load had achieved 80 per cent.

"I believe the tourists' flow between the two cities, visiting each other, will further increase. I hope AirAsia will operate one flight a day in the near future to allow more tourists from here to travel to Malaysia and vice-versa," she said after meeting Huang Yan Rong, the Vice-Governor of the Sichuan Province, Monday.

Dr Ng, who is on her working trip to China, said she was looking forward to enhance bilateral investments as well, as she saw the city had great potential for investments and the Malaysia External Trade Development Corporation had opened a representative office here for the same reason.

Currently, 17 Malaysian companies have invested in electronic manufacturing industries and the education sector here.

The Minister also encouraged investors here to invest in Malaysia as the economic sectors have been liberalised to allow 100 per cent foreign ownership.

Huang said the earthquake on May 12 last year brought great impact to the tourism industry here to the extent that tourism revenue declined by 68 per cent.

She, however, said the tourism industry recovered rapidly after the provincial government accelerated restoration projects here.

"The province's tourism revenue between January and October has touched 1.25 billion yuan, an increase of 43.4 per cent. It is even higher than in 2007 before the earthquake," she said.

Huang also expressed her appreciation to the Malaysian government's support and assistance extended when the tragedy occurred.

On tourism, she said Malaysia was one of the most popular destinations for locals here to go for vacation.

With the bilateral cooperation with the tourism authorities of both countries, the Kuala Lumpur-Chengdu tourism industry would further flourish, she said.

Huang also asked Dr Ng to forward her proposal to set up a Malaysian consulate here to enhance bilateral collaborations in the economic, trade, tourism and cultural sectors.

-- BERNAMA

AirAsia climbs; stock downgraded

23 November 2009

AirAsia Bhd, Southeast Asia’s biggest discount carrier, had its stock rating reduced to “sell” from “trading buy” at OSK Research Sdn Bhd on lower-than-expected third-quarter profit.

OSK also cut its earnings estimates by 31 per cent for 2009 and 46.5 per cent for 2010, saying “price undercutting and escalating crude oil would persist in the short to medium term.”

AirAsia climbed 1.6 per cent to RM1.30 in Kuala Lumpur trading at midday close.

Bloomberg

AirAsia returns to net profitability in 3Q3009

23 November 2009

AirAsia stated it expects a further recovery in air travel demand moving forward, with CEO, Tony Fernandes, stating that "based on the forward booking trend, the underlying passenger demand in the fourth quarter is positive". He added, "while the airline industry is facing arguably the most difficult environment in recent memory, we see vast opportunities to grow our business".

The region’s largest LCC returned to net profitability in 3Q3009, traditionally the carrier’s weakest quarter, with a net profit of MYR130.1 million (USD38.5 million) aided by a 86% jump in ancillary revenues to USD38 million (compared to overall revenue growth of 4.5% to USD219 million) and rising passenger numbers (combined Group passenger numbers were up 24% to 5.9 million passengers, with the Malaysian operation's traffic up 19%), which more than offset a 27% reduction in average fares (for Malaysian operations) and a 11% yield reduction.

The carrier also benefited from the Malaysian Ringgit’s strengthening against the US dollar, which resulted in a translation gain of USD30 million.

Looking forward, AirAsia stated underlying passenger demand for 4Q2009 is positive, with the carrier remaining on course to achieve the Group’s target of carrying 25 million guests for the full year. The carrier added that its Indonesian and Thailand operations are performing well in 4Q2009 with high passenger growth rate and “encouraging” yield trend. Both the associates are expected to “show a respectable performance in the upcoming fourth quarter”.

AirAsia's share price was down 2.3% on Friday but has gained 48% since the start of the year, in line with the 45% rise in the broader market index, KLSE.

AirAsia share price growth: Jan-2009 to Nov-2009

Source: Centre for Asia Pacific Aviation & Yahoo! Finance

Center For Asia Pacific Aviation

Tony Fernandes is orient aviation person of the year

23 November 2009

Tony receives Orient Aviation Person of the Year Award for 2009

AirAsia Group CEO Tony Fernandes received today the Orient Aviation Person of the Year for 2009 award for successfully leading AirAsia, which has in only eight years grown to become the world's best low-cost airline and Asia's largest.

Orient Aviation chief executive Barry Grindrod, in naming Tony the Orient Aviation Person of the Year, noted that Tony is the first individual whose airline is not affiliated with the Association of Asia Pacific Airlines to receive the award.

This is the 11th year that Orient Aviation, a globally-read Hong Kong-based aviation industry publication, has given the award.

Grindrod highlighted Tony's role in changing the face of aviation and benefiting travelers in the region.

"They [critics] said he wouldn't get the air rights, the business model would not work outside Malaysia, and that the major carriers would gobble up the fledgling carrier.? Today, there are many LCCs in the region, and AirAsia is leading the way.? Because of Tony and his hardworking team, there are tens of thousands of people flying for the first time. He has, quite literally, changed the way people live," Grindrod told media during the awarding event.

Tony has grown AirAsia into a world-class brand through innovative marketing that offers revolutionary low fares that come with premium products and services.? Working with the AirAsia slogan of Now everyone can fly, Tony has led the team in growing the airline, which has now flown more than 75 million guests and is linking cities across Asia Pacific.? The airline grew its fleet of two aircraft, one destination and staff of 250 to a fleet of approximately 82 aircraft, 113 routes to almost 60 destinations across Asia Pacific, and a staff of 6,500.

With AirAsia, travelers are able to enjoy great flight frequencies and a route network that spans across the ASEAN region (Malaysia, Indonesia, Thailand, Cambodia, Myanmar, Laos, Vietnam, Singapore, Brunei and the Philippines), Australia, China, India, Bangladesh and Sri Lanka.? Through low-cost long-haul affiliate AirAsia X, which Tony founded, AirAsia guests are also able to connect to more destinations in Australia and northern China and to Taiwan, UK and, by November 23, the UAE.

Grindrod also pointed out how legacy airlines have followed AirAsia's lead and entered the low-cost travel market.

"Because of his vision, flair and marketing skills, the legacy carriers have adopted the 'if you can't beat him, join him' approach.? Just look at how many have entered the LCC market themselves through subsidiary carriers," Grindrod added.

Tony has entered business ventures aside from AirAsia.? Tony also leads Tune Group, which currently includes Tune Hotels, a no-frills hotel chain that offers "5-star beds at 1-star prices;" Tune Sports, which runs the ASEAN Basketball League; Tune Money, which caters to the financial needs of the underserved market at affordable prices; and Tune Talk, a mobile phone service that offers the lowest flat rate for calls.? Tune Group also has an investment in 1Malaysia F1 Team to support the 1Malaysia initiative and to provide an avenue for Malaysia to advance in the global sports scene.

Travel Blackboard