Phuket air routes dropped

26 May 2010

Thai AirAsia has suspended flights from Phuket to Ho Chi Minh City (HCM) and Medan as traffic demand has been lower than expected.

The suspension seems to weaken the budget carrier's drive since late last year to make the southern resort island its second hub in Thailand after Suvarnabhumi Airport.

The no-frills airline quietly ended daily Phuket-HCM services on May 15 and Phuket-Medan services, at thrice a week, on May 1. These flights began in December.

Chief executive Tassapon Bijleveld said the suspension was temporary and the airline was prepared to restore the flights back to its network once demand returns.

Vietnam's order prohibiting its citizens from visiting Thailand during the Kingdom's political turmoil in recent months contributed to the slump in demand.

"Honestly, I don't know when the demand will return but we will continue to monitor it," he said.

The airline, part of Malaysia-based AirAsia, is shifting the capacity from the suspended flights to other routes with stronger demand.

Beginning on June 21, Thai AirAsia will double the frequency on Phuket-Chiang Mai to twice daily, while ramping up Phuket-Udon Thani services, now at four flights a week, to daily.

Daily services from Phuket to Hong Kong, Phuket to Jakarta and Phuket-Singapore remain unchanged.

The airline has been looking at linking Phuket with Bali and Macau, he said.

"These are potential routes, but it is premature to say when we would launch them," he added.

The fallout from Thailand's deadly political clashes on the tourism industry is hurting the airline's network and flight expansion, he said, which is prompting the airline to redouble its marketing efforts.

On Monday, the airline put its 13th and 14th new Airbus A320s into regular service.

by Boonsong Kositchotethana

Bangkok Post

AirAsia launches one-stop online travel portal

26 May 2010

AirAsiaGo.com: Group CEO AirAsia, Dato Sri Tony Fernandes (center), explains AirAsiaGo portal, while Regional Head of Commercials Kathleen Tan (left) and AirAsiaGo's Darren Goh (right) look on.Malaysia's low-cost airline AirAsia has introduced an one-stop online travel portal, AirAsiaGo.com, which offers travel services such as flight bookings, tours, hotel reservations, car hire and transfers in one place.

The travel portal, with more than 70,000 hotel partners and over 5,000 tour & activities, was launched on Tuesday at Westin Hotel, Kuala Lumpur.

“ AirAsiaGo.com is the online travel portal which offers the widest range and variety of hotels, tour and activities in the Asia region, coupled with ultimate convenience for guests as a one-stop online services,” said Kathleen Tan, the Regional Head of Commercials, AirAsia Group.

She also concluded that travel demands change according to people’s lifestyle and trends.

“ We see that we need to adapt and innovate as well. We receive 25.5 million unique visitors in our AirAsia.com site last month, with more than 65 million visits. “

news.brunei.fm

AirAsia to proceed with plan to list in Thailand

21 May 2010

KUALA LUMPUR: Low cost carrier AirAsia Bhd will continue with its plan for a dual listing in Thailand despite the political crisis in that country, said its group chief executive officer (CEO), Datuk Seri Tony Fernandes.

“A crisis will come and go. But our listing plans are still afoot,” he told reporters at the Sixth World Islamic Economic Forum (WIEF) here yesterday.

He said the listing would happen once the political environment in Thailand showed recovery.

Fernandes, however, said there was no time frame or schedule for the listing.

On its operations in Thailand, he explained that the airline had a good sales period but obviously, sales had fallen in the last two months.

“We will bounce back. The power of recovery in Asia is strong as we have undergone many crises before,” he added.

Earlier during the Global CEO Panel session, Fernandes said there was a need to spend on branding, as it was an important aspect of company performance and achievement.

“It is important to innovate and create a better environment. At AirAsia, we have spent a lot for branding,” Fernandes said. In order to build branding worldwide, AirAsia had maximised its sponsorship programme, he said.

The airline recently sponsored the Formula One Team and also became the official low cost carrier for English Premier League team, Manchester United.

Bernama

Tony Fernandes receives prestigious Nikkei Asia prize

21 May 2010

AirAsia Group CEO Tony Fernandes was awarded the prestigious Nikkei Asia Prize in Tokyo today for his contributions to the growth of Asia.

The prize, given by leading Japanese newspaper publisher Nikkei Inc., recognizes Tony's role in democratizing travel in Asia. Tony, in helming best low-cost airline AirAsia, removed air travel from the clutches of the elite by offering low fares affordable to everyone. He also created a massive network of mostly Asian destinations, promoting travel and tourism in the region and contributing to economic growth.

"Under his leadership, AirAsia revolutionized the air travel industry in the region by pioneering the discount carrier phenomenon. As a result, air travel became widely accessible to people from all walks of life, boosting travel in the region," Nikkei Inc. said.

The awarding body also recognized Tony's "achievements in remaking the company into one of the most successful international airlines in Southeast Asia despite the recent economic slowdown of the airline industry."

The award is a timely recognition for AirAsia, which is hoping to start Malaysia-Japan flights in 2010. AirAsia plans to make Kuala Lumpur the premier gateway to ASEAN for Japanese tourists. It is also hoping to offer low-fare flights to Japan to the 600-million strong ASEAN population.

"We're here to link more communities and to grow travel and tourism in Asia. We look forward to providing more links between the ASEAN region and the rest of Asia, including Japan. Links between countries play an integral part in strengthening Asia economically, socially and politically, and we are committed to helping achieve this," said Tony.

Tony is the only airline executive to have received the award. He is also the first Malaysian individual to be given the award since the launch of the annual Nikkei Asia Prizes in 1996.

Tony has tirelessly championed the ASEAN region, where AirAsia is based, as a premier travel and tourism destination. Through AirAsia, Tony created "sky bridges" that link the communities of ASEAN and that link the region to many more cities in Asia, Australia and Europe. AirAsia's "sky bridges," utilized by more than 92 million guests to date, have greatly contributed to the economic growth and social integration in the region.

Tony grew AirAsia with the slogan Now everyone can fly. In eight years, AirAsia grew from an airline with two aircraft, one destination and 250 employees to an airline with 92 aircraft, approximately 70 destinations and a staff of 7,000. AirAsia is now widely regarded as THE ASEAN airline, and it is the largest and most successful low-cost airline in Asia.

Tony's contributions to the region also extend to his launch of regional sports development initiatives such as the ASEAN Basketball League; AirAsia ASEAN Driver Development Program, which provides training support for would-be professional race car drivers from the region; and the AirAsia MotoGP program, which supports regional motorsports talents.

Travel Blackboard

Asiana tops annual airline rankings

21 May 2010

South Korean carrier Asiana has topped the 2010 airline rankings survey conducted by Skytrax.

Runner-up was Singapore Airlines, with Qatar third. The annual rankings reflect a 10-month long study taking into account almost 18 million air travellers from 100 nationalities.

The study ran from July 2009 to April 2010. Skytrax is an independent airline quality monitoring organisation.

AirAsia was named the world’s best low cost airline for the second year in a row.

Air New Zealand was voted best carrier in Australia-Pacific region and rose to fifth in the overall rankings. As the world’s 36th largest carrier it’s punching well above its weight.

The biggest loser was Cathay Pacific, falling from first to fourth.

Australia’s Qantas continued its descent as passengers reacted to slipping customer service standards and aircraft reliability issues.

Three years ago it was ranked the world’s third best carrier, last year it fell to sixth and this year to seventh, two places behind Air New Zealand and one behind Etihad. It just beat Emirates. But Qantas did earn recognition for its premium economy cabin and premium economy seats.

Significantly, not one US carrier won any category in the Skytrax rankings - even the best North American airline title went to Air Canada, reflecting just how far behind international standards the world's larger, US airlines like United and American Airlines are performing.

Praising Asiana’s success, Skytrax chairman Edward Plaisted said the award was the result of its focus on customer service.

“Asiana Airlines is clearly meeting and exceeding their customers' expectations,” he said.

Tony Fernandes, AirAsia Group CEO, said Air Asia was proud to be recognised as the low cost leader for the second successive year.

“The Skytrax award is very special to us because it is voted on by passengers. It reaffirms once again that we are the People’s Champion.”

The full list is as follows:
1. Asiana Airlines
2. Singapore Airlines
3. Qatar Airways
4. Cathay Pacific
5. Air New Zealand
6. Etihad Airways
7. Qantas Airways
8. Emirates
9. Thai Airways
10. Malaysia Airlines

A host of other awards were announced:

Best Low-Cost Airline Worldwide - AirAsia
Most Improved Airline - Garuda Indonesia
Best Cabin Staff - Singapore Airlines
Best Inflight Entertainment - Emirates
Best Airport Services - Thai Airways
Best Economy Class - Malaysia Airlines
Best Premium Economy Class - Qantas
Best Business Class - Qatar Airways
Best First Class - Etihad Airways
Best Airline: Transatlantic - Virgin Atlantic
Best Airline: Transpacific - Cathay Pacific
Best Airline: Australia/Pacific - Air New Zealand
Best Airline: Europe - Lufthansa
Best Airline: India/Central Asia - Kingfisher Airlines
Best Airline: Middle East - Qatar Airways
Best Airline: North America - Air Canada
Best Airline: South East Asia - Singapore Airlines
Best Airline Lounge - Business Class - Virgin Atlantic
Best Airline Lounge - First Class - Thai Airways
Best Airline Seat - Business Class - Singapore Airlines
Best Airline Seat - Economy Class - Kingfisher Airlines
Best Airline Seat - First Class - Etihad Airways
Best Airline Seat - Premium Economy Class - Qantas Airways
Best Low-Cost Airline Australia/Pacific - Virgin Blue
Best Onboard Catering - Business Class - Qatar Airways
Best Onboard Catering - Economy Class - Turkish Airlines
Best Onboard Catering - First Class - Etihad Airways
Best Airline Alliance - oneworld

The honour is another feather in the cap for the Malaysian-based carrier, which took out the prestigious title in 2009. Last October, AirAsia and AirAsia X were also awarded jointly the Centre for Asia Pacific Aviation (CAPA) Airline of the Year Award for 2009.

AirAsia X CEO Azran Osman-Rani said the award further bolstered Air Asia’s global reputation for providing excellent and value-for-money services.

“We are honoured to have been awarded this title, not once, but now twice,” he said.

"This is validation from our guests and peers that with our stunningly low air fares, new fleet, growing network, outstanding service, and constant innovations such as our new flatbed Premium seats, we are a truly global and great airline worthy of recognition.

“The fact that AirAsia has experienced continued growth in a tough economic climate over the last 12 months makes the win even sweeter.

"Being a low-cost airline should never have to mean delivering a low-quality service. Air Asia is proof of the fact that affordable travel and extremely high service standards can operate hand in hand.”

AirAsia’s network extends across 130 routes covering 70 destinations.

Its long haul affiliate, AirAsia X, flies to Australian destinations from Kuala Lumpur including Melbourne, Perth and the Gold Coast.

AirAsia Indonesia also operates a Perth to Bali service.

Mr Osman-Rani said AirAsia had experienced strong growth on all of its Australian routes, helping contribute to the 2010 World’s Best Low Cost Airline award.

“The three Australian routes have all been extremely successful and have helped make AirAsia the success it is today,” he said.

“But we won’t rest on our laurels. Now that we’ve reinvigorated our fleet with more comfortable new seats, we’re going to focus next on further improving our customer contact points, making it easier to purchase multiple flight sectors, and livening up our food and
beverage selection.

“AirAsia will undoubtedly continue to face challenges but there is a very positive outlook for 2011.

“We hope next year will prove third time is a charm for AirAsia by scoring the World’s Best Low Cost Airline award again.”

AviationRecords.com

Asia Pacific LCCs finding the going tough in international markets

20 May 2010

Asia Pacific LCC stocks dropped back yesterday, led downwards by SpiceJet, which reportedly stated it has been unable to proceed with plans to raise USD75 million to support its international expansion, due to differences in valuations of the carrier. Live Mint reports up to six financial groups have submitted term sheets to invest in the carrier, but no agreements have been reached.

Virgin Blue (-3.2%) fell again on concerns about the domestic Australian outlook. But comments by Tiger Airways CEO, Tony Davis, that the Australian unit is examining international destinations within a five-hour flying range from Australia for its A320 aircraft would not have helped Virgin Blue’s short-haul international outlook. Tiger is considering destinations in Indonesia, New Zealand and the Pacific islands, but is yet to announce any specific plans, which would be subject to government approval.

AirAsia’s (-2.3%) Thai offshoot is operating amidst the massive social disruption in that country, although its strong brand and low costs make it well positioned to benefit from a future rebound in demand, once calm is restored to Bangkok and provincial areas.

AirAsia yesterday launched a one million "Free Seats" sale to major destinations including Thailand, available until 23-May-2010 for travel from 03-Jan-2011 to 08-May-2011. More discounting of near-term travel is expected to/from Thailand to help rebuild volumes.

Selected LCCs daily share price movements (% change): 19-May-2010

Centre for Asia Pacific Aviation

AirAsia launches Kuala Lumpur - Bangalore Flights

20 May 2010

AirAsia today launched flights between Bangalore in India and the capital of Malaysia, Kuala Lumpur.

Bangalore is the seventh destination for AirAsia in India after Trivandrum, Kolkata, Chennai, Kochi Tiruchirappali and Mumbai.

To celebrate, AirAsia is offering all in fares from as low as RM 25 to guests traveling from Bangalore as part of its offer of one million free seats. Bangalore, as part of AirAsia’s global network will be part of the free seats campaign, which are available for potential travelers to the city.

AirAsia will be operating its brand new Airbus A320 aircraft on the route.

Speaking about the launch, Ms. Kathleen Tan, Regional Head of Commercial, AirAsia said, “We are excited to launch our services between Kuala Lumpur and Bangalore. The daily service is expected to cater to significant traffic including business and leisure travelers as well as students to and from the tech-hub in Southern India. In addition to this, the service is also expected to cater to and promote medical tourism in the city of Bangalore. AirAsia foresees a huge demand from the health sector with patients seeking medical assistance from institutions based in Bangalore.”

On its inaugural flight from Kuala Lumpur, AirAsia carried 15 children with Congenital Heart Disease requiring open heart surgery. The children will be operated upon at Narayana Hrudayalaya Heart Institute, Bangalore, one of the largest heart hospitals for children in the world.

AsiaTravelTrips.com