Family spends seven hours on plane

01 January 2010

A SUNSHINE Coast family who spent seven hours stranded on a plane on the tarmac at Brisbane Airport has likened the experience to being held ransom by terrorists.

Ron Pratt, his wife Marina and their son Jaymin, 11, had to endure the agonising wait with only rations of food and water.

The ordeal began when their AirAsia X flight left Kuala Lumpur on December 28 at 7.40pm Queensland time and flew into the Gold Coast at 7.50am in wet weather.

Visibility was so poor the aircraft was forced to divert to Brisbane for the first time in the two years that AirAsia X has been operating into Gold Coast.

Several hours later, after refuelling in Brisbane and being advised by air traffic control weather had cleared, the flight took off for the Gold Coast.

However, on approach, the weather took a turn for the worse, leading to four failed landing attempts.

The flight was diverted back to Brisbane for refuelling again.

Delays were further experienced in Brisbane the second time due to congestion at the airport.

At this time passengers were given the option to disembark, but were told AirAsia X did not have either the resources or time to offload baggage.

Concerned about their luggage, the Pratt’s stayed onboard.

During the third approach into the Gold Coast, the weather had again deteriorated, but with some openings through the clouds, the captain performed a safe landing just after 4pm.

“We do not hold AirAsia to be irresponsible professionally in any way for the conduct of the flight,” Mr Pratt said. “What we don’t understand is how or why more than 300 passengers could be held at ransom like we’re hostages?

“One irate Australian passenger trying to leave was tackled, handcuffed and led away by airport police.”

AirAsia sent an email out to the passengers of the flight apologising.

“We truly apologise for the discomfort you faced,” it read.

“Rest assured, we(’re) looking into improving our service recovery process to reduce discomfort to our valued guests at times like this.

“Kindly note that passenger safety is of paramount importance to us.

“We apologise that you were kept onboard throughout the seven hour-plus ordeal.”

Bianca Clare

Sunshine Coast Daily

AirAsia optimistic about 2010; Ryanair’s airport battles continue

31 December 2009

AirAsia’s shares declined 2.2% yesterday, with the carrier’s CEO, Tony Fernandes, in an interview with today's Business Times, stating the LCC is optimistic about the airline’s prospects for next year, with forward bookings “looking good” for Jan/Feb-2010.

Ryanair’s shares dropped 3.8%, on continued speculation that the carrier will make a third takeover bid for Aer Lingus, and as the dispute widens with the Italian Civil Aviation regulator.

Also in Europe, Vueling gained 3.6%, with easyJet down 2.1% and Air Berlin’s shares slightly weaker (down 0.3%).

In the US, Southwest’s shares remained stable, with JetBlue slightly weaker (down 0.5%) and AirTran up slightly (0.8%).

Selected LCCs daily share price movements (% change): 30-Dec-2009

Source: Centre for Asia Pacific Aviation & Yahoo! Finance

CEO: AirAsia ends 2010 with record sales

31 December 2009

PETALING JAYA: AirAsia finished the last month of 2009 with “record sales” while forward bookings for the first two months of 2010 are looking very strong, said its group chief executive officer Datuk Seri Tony Fernandes.

“We cannot reveal our fourth quarter financial numbers yet but from a sales point, we have had record sales for December and it has been the best month ever in the history of the airline in all the three countries (Malaysia, Indonesia and Thailand) that we operate in.

“January sales are better than what we have seen before and sales in February, with the Chinese New Year (coming), are looking very strong,’’ Fernandes told StarBiz yesterday.

December is traditionally a strong month for AirAsia.

Traditionally, December is a strong month for AirAsia and most other airlines.

At the end of today, the budget airline would have carried a total of 24 million passengers, and when combined with its sister airline AirAsia X, the total is over 25 million.

“That makes us one of the larger airlines in the region,’’ he said.

Maybank Investment Bank Bhd has forecast RM160mil in net profit for AirAsia for the last quarter of 2009 while consensus estimates by analysts compiled by Bloomberg indicate RM77.4mil.

For full-year net profit, the Bloomberg consensus estimate is RM500mil while Maybank Investment’s forecast is higher at RM580mil.

“We expect them to perform very well in the fourth quarter and this may not be (reflected) in the consensus estimates.

“But if you stick to the fundamentals of crude oil (pricing) and historical trend of passenger (loads) for AirAsia, we expect the airline to post a very strong fourth quarter,’’ Maybank Investment Bank senior analyst Khair Mirza said.

While other airlines were struggling through the economic downturn, AirAsia pushed ahead and expanded, strengthening its network and the “investment is now paying off as the economy recovers,’’ Fernandes said.

He added that “the real joy for me is to see AirAsia Thailand and AirAsia Indonesia both experiencing a strong turnaround’’.

Fernandes is bullish on 2010, saying it will be a “very promising year for us’’.

The airline’s operational cost is the lowest in the world while its flexible fare pricing allows it to deal with any fuel shocks. And as its routes mature, it is in a position to raise fares.

Fares will certainly go up as the economic recovery lifts demand for air travel. “Even a RM10 rise in airfares will be good for us as we fly more than 25 million passengers a year,’’ Fernandes said.

“We have a strong balance sheet, our cash is growing and all our airplanes for next year have been financed, so that is why we say 2010 could be an even better year for us.

“Even the contribution in passenger loads and profits from our Indonesian and Thai operations will be much in 2010,’’ he added.

Fernandes also expects AirAsia X to break even this year, with the airline increasing frequencies to existing destinations and ply new routes such as New Delhi, Mumbai and Paris.

But the US is certainly not on its radar screen for 2010.

“We are also modifying the seats for AirAsia X as we now have another supplier for the seats and this will make the planes more comfortable,’’ he said.

Industry-wise, he reckons that the “bottom has arrived and while we did well at the bottom, the economic recovery will be great for us’’.

Meanwhile, AirAsia will fly to Balik Papan and other routes in Indonesia, along with Hyderabad and Bangalore next year.

“Whatever skeptics have said over the past eight years, we will say we are in a good position now as all our investments made in terms of airplanes, people and branding are beginning to pay off,’’ Fernandes said.

By B.K.Sidhu

The Star

CEO: AirAsia ends 2010 with record sales

31 December 2009

PETALING JAYA: The proposed partnership between AirAsia Bhd and Jetstar is nearing fruition after a year of talks and the deal will be announced in the first week of January.

A media conference has been scheduled for Jan 6 in Sydney where both parties and Qantas will announce the details of a strategic agreement and how these parties will work “innovatively together’’ so as to drive greater cost efficiencies across AirAsia and Jetstar.

Datuk Seri Tony Fernandes and Jetstar CEO Bruce Buchanan will present the details on Jan 6.

AirAsia group chief executive officer Datuk Seri Tony Fernandes and Jetstar CEO Bruce Buchanan will be at hand to present the details. Jetstar’s parent, Qantas, will be represented by its CEO Alan Joyce.

AirAsia is Asia’s largest low-cost carrier whose unit cost is the lowest in the world. It flies to over 61 domestic and international destinations with 108 routes, and operates over 400 flights daily from hubs located in Malaysia, Thailand and Indonesia. Its sister airline is AirAsia X which began flights to Australia in 2007 and has expanded to China, Britain and the Middle East.

The Jetstar group includes wholly-owned Qantas subsidiaries operating from Australia and New Zealand, partner carriers including Jetstar Asia and Valuair in Singapore and Jetstar Pacific in Vietnam. Jetstar Asia/Valuair is 51% owned by Westbrook Investments Pte Ltd and 49% owned by Qantas, which in turn has a 27% stake in Jetstar Pacific in Vietnam. The Jetstar group operates 1,900 weekly flights to 15 countries.

“Cost efficiencies is only one of the many things this new partnership will bring about,’’ said a source.

StarBiz was the first to report on a proposed partnership on Dec 23 last year. Then, both parties including Qantas had started preliminary talks for a proposed merger. The parties had met several times over the year and even conducted some audit work.

How the eventual partnership will pan out is unclear, but given the challenges the aviation industry faces, partnerships and mergers are not new and if parties can pool resources for greater efficienies, it helps airlines in difficult times.

AirAsia boss Fernandes, when contacted yesterday, did not want to shed any light on the partnership. Will this deal involve any codeshare arrangements between the two airlines?

Codeshare is a prominent feature with full service carriers and if low cost carriers can see some benefit from sharing of flights, then they may be setting new grounds.

An analyst, however, has a contrarian view. He said: “It goes against the (low cost) airlines’ rule of keeping it simple in the no-frills business to codeshare but a lot depends on the intention of the airlines.’’

One route that may be shared is the KL-Sydney sector which AirAsia has failed thus far to get rights to ply. Jetstar, even though it has stopped plying the route since September 2008, has the rights. Will that rights be shared by AirAsia?

The Kangaroo route (from any Australian point to KL and on to Europe) is a possible route that these airlines will capitalise on and with the partnership, AirAsia will be able to offer connectivity all over Australia via Jetstar Australia and it can take Jetstar’s passengers to Europe, India and the Middle East where Jetstar is not flying.

By B.K.Sidhu

The Star

AirAsia incorporates wholly-owned subsidiary in the UK

30 December 2009

AirAsia Berhad (AirAsia or the Company) is pleased to announce that it has incorporated a wholly-owned subsidiary in United Kingdom known as Asia Air Limited (AAL) (the Transaction) with its registered office situated at 41, Chalton Street, London, NW1 1JD. The objective of establishing AAL is to facilitate business transaction of AirAsia Group.

Information on AAL

AAL is a limited liability company and it was incorporated on 21st December 2009. The issued and paid-up capital of AAL is GBP1.00 only comprising one ordinary share of GBP1.00 each.

Financial effects of the Transaction.
The Transaction is not expected to have any material effect on the earnings and net tangible assets of the AirAsia Group for the financial year ending 31 December, 2009.

Directors' and/or Substantial Shareholders' and/or Persons Connected with Directors or Substantial Shareholder' Interest.

To the best of the knowledge of the Company, none of the Directors or Substantial Shareholders of the Company and/or persons connected to them has any interest, directly or indirectly, in the above Transaction.

Peanuts Online

Tune Money's revamped portal goes live

29 December 2009

PETALING JAYA: As the company is in full swing towards a rebranding of its products and services scheduled for the first quarter of 2010, Tune Money Sdn Bhd has given a sneak preview of what's to come with the launch of its newly revamped and enhanced website portal, www.tunemoney.com.

The new portal was designed and developed to provide simple, user-friendly and reliable electronic access to users, customers and visitors.

Safety and security is an emphasis in terms of customers' data protection.

Tune Money CEO Joyce Lai said: "We have spent the past 12 months reassessing, remodelling and strategising our business and the enhanced portal is our first step in rebranding our products and services to the market. As an online-centric business, an interesting and user-friendly online interface is key in keeping our loyal existing customers and acquire new ones. With the economy heading towards full recovery, there is so much potential in the online financial services business that Tune Money is in, where we seek to capture the growing working class and middle-income group."

"We would like to encourage everyone to come and visit Tune Money's new portal at www.tunemoney.com to experience the enhanced new features. With easy navigation and browsing, visitors can also customize their preferred font size besides accessing the complete information on our products. Do check out or new loyalty and reward programmes too where you will find many interesting stuff," added Lai.

She said the portal will be Tune Money's main marketing, branding and communication tool to reach out to customers and everyone who is interested in its products and services, as well as partners and the public at large.

Tune Money is a one-stop financial services company which offers affordable prepaid cards under the Visa brand name and insurance products. Tune Money was set up in 2005 with the aim of eventually creating an online Tune consumer community together with its sister companies Tune Hotels.com and Tune Talk. In the long run, the plan is to integrate the Tune consumer community with that of AirAsia, the world's best low cost airline that shares the same co-owners and founders with the Tune Group in Dato' Sri Tony Fernandes and Dato' Kamarudin Meranun.

"We are continuously reviewing and improving the site so we welcome all comments and feedback.

We strive towards providing excellent service to our customers and ensuring that they have a pleasant and exciting experience online is our commitment," added Lai.

Daily Express

AirAsia’s Tony Fernandes rules out bid for West Ham

29 December 2009

LONDON— Datuk Seri Tony Fernandes has ruled out making a bid for his favourite football club West Ham, as he is busy running the Lotus Formula One team.

He had fuelled speculation that he could launch a bid to buy the east London-based English Premier League club, as he attended the match between the side and Portsmouth last week.

Fernandes, the founder of budget airline AirAsia, also met West Ham manager Gianfranco Zola after the match, reported The Telegraph.

The entrepreneur, however, ruled out making a bid for the club as he is busy running an F1 team — the 45-year-old is Lotus’ team principal for next season.

The paper also revealed that he held detailed discussions with West Ham chairman Andrew Bernhardt on a previous occasion, but apparently they did not bear fruit.

Fernandes’ decision to distance himself from any takeover talk has been a source of great regret at West Ham, as the innovative businessman is regarded by many as an exciting potential investor.

Still, he admitted that he might be tempted to make a move but did not indicate that it would be any time soon.

CB Holding, the company set up by the creditors of West Ham’s former owner Bjorgolfur Gudmundsson, has appointed Rothschild bank to deal with potential investors.

Talks have taken place with a number of parties, including former Birmingham City co-owner David Sullivan, although his bid of around £46 million (RM253 million) falls short of the bank’s valuation of the club.

CB Holding insists it is under no pressure to sell and has a three-year plan to retain ownership of West Ham if it does not find the right investor. However, it is also aware that new funding would help create greater stability.

The Straits Times