Sunday, September 12, 2010

AirAsia runs exclusive ‘Two to Go’ promo via its social media platform

08 September 2010

AirAsia, the world’s best low cost airline which has surpassed half a million fans on its Facebook page, continues to strengthen its social media channels with an exclusive ‘Two to Go’ promotion.

Offering guests two seats for the price of one, this incentive is made available until 8 September 2010 is for the travel period from 14 September – 15 November 2010.

Whether you are a beach bummer, an adventure seeker or a shopaholic, this is a promotion not to be missed. A wide selection of domestic and international destinations inclusive of Perth, London, Chengdu, Mumbai, Delhi, Bandung, Hat Yai, Colombo, Hong Kong, Jakarta, Kota Bahru, Langkawi, Terengganu and many other destinations from as low as RM19*.

Guests can also take advantage of the immediate travel period of this promotion to enjoy a quick getaway during the upcoming Hari Raya holidays.

AirAsia continues to reward its fans for their support with exclusive promotions via its social media platforms. This is the third time AirAsia has embarked on such initiatives to give exclusive value to all their Facebook Fans.

Guests can also receive real time updates on our latest promotions, events and other AirAsia-related information via Twitter (www.twitter.com/AirAsia) and the AirAsia blog (www.blog.airasia.com).


Peanuts!Low Cost

TAA taps Chiang Mai for northern hub

08 September 2010

Thai AirAsia will make Chiang Mai its third hub, after Phuket and Suvarnabhumi airports, as the no-frills carrier creates an additional sub-network to complement its expanding coverage.

The Chiang Mai hub, through which the airline will operate direct links with other destinations in Thailand and overseas, is due to be up and running in January.

The airline, part of Asia's largest low-cost carrier group, will inaugurate its northern hub with three routes, from Chiang Mai to Hat Yai, Bangkok and Singapore, all with daily frequencies.

Thai AirAsia chief executive Tassapon Bijleveld said that establishing services directly out of Chiang Mai would enable the carrier to exploit untapped traffic opportunities, especially in the leisure sector.

"By offering non-stop flights between Chiang Mai and other destinations, we'll encourage more people to fly more conveniently with less time, cost and hassles involving flight connections," he said.

The creation of a new hub will be made possible by the delivery in January of a new A320 jet from the European planemaker Airbus. The twin-engine, single-aisle 180-seat jet, Thai AirAsia's 20th, will be based at Chiang Mai International Airport.

Thai AirAsia launched Phuket as its second hub in 2009 in a strategic move to open up a new market, bypassing the traditional route that goes through Bangkok's Suvarnabhumi airport.

Today, the airline operates frequent services out of the Thai southern resort island to seven cities: Bangkok, Chiang Mai, Udon Thani, Hong Kong, Jakarta, Singapore and Kuala Lumpur.

In May, Thai AirAsia suspended flights from Phuket to Ho Chi Minh City in Vietnam and Medan in Indonesia, as traffic demand has been lower than expected. These flights began last December.

On Oct 12, the airline will start a new route, Phuket-Udon Ratchathani, with three flights a week, on Tuesday, Thursday and Saturday.

Sixteen of Thai AirAsia's current fleet of 18 A320s operate through Suvarnabhumi with two based in Phuket.

It is taking delivery of its 19th A320 next month as it continues to aggressively expand domestically and regionally with the launch of long-awaited flights from Bangkok to Indian cities such as Mumbai, New Delhi and Kolkata, possibly in the fourth quarter.

Other major Thai cities including Hat Yai and Udon Thani are candidates for Thai AirAsia's next hub, though Mr Tassapon did not give a time frame for its establishment.


Bangkok Post

Kingfisher shares soar following BA codeshare announcement; AirAsia to float AirAsia X

07 September 2010

Several Asian stock markets advanced for a fourth consecutive session on Monday, with the Nikkei Stock Average (Tokyo) rising 2.1%, the S&P/ASX 200 (Sydney) adding 0.8%, The Sensex (Mumbai) gaining 1.9%, the NZX 50 (Wellington) increasing 1.2% and the Wintek (Taipei) soaring by the daily 7% limit. The stock market advances occurred following better-than-expected US job data which eased economic concerns and buoyed Wall Street on Friday.

Kingfisher Airlines was the best stock of the day, jumping 8.8% after the carrier signed a codeshare agreement with British Airways, and British Airways CEO, Willie Walsh, commented its future oneworld member partner was “clearly the best partner” in India.

Mr Walsh, who stated the carrier has a list of 12 potential takeover takeover targets, added that if the Indian Government amends its Foreign Direct Investment (FDI) legislation “all airlines around the world will look at the possibility to invest in Indian carriers”, adding, “I have no doubt Indian carriers would welcome such foreign investment because airlines are looking at strengthening their financial position.”

Meanwhile, Davy Stockbrokers commented: "I would say Asia is number one in the [BA] context that it's a high-growth market. India is very important for them and I suspect Kingfisher is top of the list."

Meanwhile, KSEMA Fincon recommended Kingfisher Airlines as a good stock to buy in the upcoming six months, while SMC Global Securities commented that Kingfisher “can be a good stock to look for” at a target price of INR78, commenting: "Kingfisher is in the backdrop of their debt restructuring … Once the debt is removed and the restructuring efforts are successful then the company's efficiency levels and their profitability levels will significantly go up and because of this debt levels, even the stock has remained under pressure for quite some time and going forward, there can be a good strong relief rally in the stock."

Also gaining strongly was Jet Airways (+5.6%), while on the other end of the spectrum, Tiger Airways’ shares declined 2.0%.

Thai Transport Ministry summons Thai Airways to explain LCC JV agreement

Thai Transport Ministry has summoned Thai Airways to explain its agreement with Tiger Airways to jointly launch LCC, Thai Tiger Airways. The carrier will answer questions from the Ministry on 15-Sep-2010, with the Ministry claiming the carrier is yet to clarify some of its issues of concern. Transport Minister, Sohpon Zarum, has insisted Thai provide full details of the JV and has stated that if the agreement is found not useful or lawful, it would be halted.

AirAsia confirms plans to float AirAsia X

In other Asia Pacific LCC news, AirAsia CEO, Tony Fernandes, commented that the group plans to float AirAsia X as he is seeing “a bit of contamination” between the way AirAsia and AirAsia X are operated.

The carrier will list in Malaysia and possibly in London or New York. The CEO declined to disclose how much of the business will be sold to outside investors, but stated AirAsia's 16% stake in AirAsia X would be “treated as an investment” and sold down gradually. However, the two airlines will not be fully separated and will continue to share a website. Four executives, including Mr Fernandes, will remain on a board for both carriers. Shares in AirAsia gained 1.1% yesterday.

Asia Pacific selected airlines daily share price movements (% change): 06-Sep-2010

Source: Centre for Asia Pacific Aviation, Reuters & Financial Times

Airlines leverage on social media sites

06 September 2010

Carriers stir interest in travelling, do promotions and even sell tickets

PETALING JAYA: As travellers become more Internet and social media-savvy, airlines have started to leverage on social media sites for branding, promotion and marketing.

Airlines including Malaysia Airlines (MAS), AirAsia Bhd, Singapore Airlines, Cathay Pacific and Delta Air Lines are using Twitter, Facebook, YouTube, Flickr and even blogs to market themselves and engage with the public.

Some airlines turn their Facebook page into a fan page whereby they can connect with their fans on the Internet. Some promote their business, products, and new offerings on Twitter to reach out to more people.

MAS senior general manager, commercial strategy, Dr Amin Khan said the carrier had a two-pronged approach for its Facebook and Twitter accounts.

“For Malaysia Airlines Travel on Facebook, @MAS Twitter account and blogger engagements, our primary objective is to inspire travel by engaging and building a connection with our fans and followers.

“Our efforts here are focused on engaging our younger audience and customers, around 20 to 35 years old. This includes promoting our fares and deals, destinations, travel stories and competitions,” he told StarBiz.

Amin said MAS started its social media outreach including the Malaysia Airlines Travel on Facebook in March 2009.

“To date, we have more than 125,000 fans on Malaysia Airlines Travel on Facebook and some 16,500 followers on @MAS Twitter account.”

He added that the MH Deals by Malaysia Airlines on Facebook, which started in January, had 37,000 fans and it had 3,500 followers on @MHdeals Twitter account.

“We also have 11,500 fans on MH Students Facebook pages. A majority of them are students who are currently studying in Australia, New Zealand, Japan and India.”

MAS has managed to generate great interest with its lunch hour sales on Facebook.

“The idea for the lunch hour sale came from our Facebook fans. We are constantly engaging with them to get their feedback on what they would like to see. We are also planning other promotions according to ticket availability and seasonality,” Amin said.

A quick search on Twitter revealed that AirAsia has one of the most followers on its Twitter account with some 50,086 followers.

The budget carrier had previously operated under AirAsiaDotCom on Twitter. However, last Friday it announced to its followers that it had managed to secure back its @AirAsia twitter handler.

AirAsia has 478,708 fans on its main Facebook site. On top of the country specific sites that AirAsia has on Facebook and Twitter, it has a dedicated AirAsia YouTube channel, AirAsia Blog: Just Plane Thoughts and Flickr account as its official gallery of AirAsia pictures.

Media specialists see social media as a great platform to get the online community involved, to motivate them to travel, get them to spread the word on which airline to use.

“Most of these airlines make use of Twitter to introduce new events, offer a limited number of air tickets at discounted prices, etc,” a media specialist said.

She added that airlines were beginning to use social media productively. “Facebook is an excellent way to engage customers. And both MAS and AirAsia are doing it well.”

She said both carriers managed to encourage their customers to engage with one another. “They made it easy to access the airlines and build relationships. Potential customers can also ask questions and get help. If their customers are happy, it means returning customers to the carrier.”

She said it was good to note that AirAsia had managed to put links on its websites to generate interest on its Twitter and Facebook pages and vice-versa.

“It (AirAsia) manages to interact well on Facebook. Every news item it posts seems to get feedbacks and there are heaps of praises from fans.”

Last month, US-based Delta Air Lines had introduced the Delta Ticket Window, a Facebook application that allows its fans to find, book and share flights via the “Book a Trip” tab on its Facebook Page.

The carrier believes it can capitalise on a captive audience given that Facebook is the most trafficked website on its inflight WiFi service. It is a cutting edge offering for the airline which is unparallelled by other airlines.

Asked if MAS would start offering such service, Amin said its offerings would tie in closely with its digital strategy. “For example, we are revamping our MASTraveller portal as part of our strategy to inspire travel. In line with this, our Facebook and Twitter accounts will be promoting destinations and encouraging user-generated content.”

“We also have a social media feature on MHmobile. After a customer books his ticket on flymas.mobi, he will be able to share his itinerary on his own Facebook page, Tripit or Dopplr. This ensures that all his friends are aware of his travel plans, and he is also able to make other travel arrangements such as hotel bookings and car rentals via Tripit or Dopplr,” Amin said.

Amin said all its channels were focused on attracting consumers to its main website, www.malaysiaairlines.com. MAS employee bloggers also share their experiences on its official blog.

The carrier has a team managing the Facebook pages and Twitter accounts beside traditional media and other digital initiatives such as the website, applications for our mobile site, flymas.mobi, mobile gadgets and others.


by Leong Hung Yee

The Star

Freak accident kills Air Asia staffer at Hyderabad airport

05 September 2010

Retracting aerobridge traps Guest Services Officer's hand

A Guest Services Officer of Air Asia, Amritha Roy, died after her hand got trapped in a retracting aerobridge at the Rajiv Gandhi International Airport (RGIA) at Hyderabad on Sunday morning.

Ms. Roy, aged 24, had ensured that the Air Asia passengers bound for Kuala Lumpur boarded the aircraft and was on the aerobridge number 55, when the operator began bridge retracting operations. Ms. Roy’s hand got trapped in the telescoping aerobridge.

“She immediately collapsed out of shock and was rushed to Apollo Medical Centre at the airport for emergency medical attention,” an airport press release said later. She was declared dead by doctors.

The airport police have registered a case of death due to negligence (Sec. 304-A) based on a complaint by the Airport Manager Suraj. Airport Station Police Inspector R Sanjay Kumar said the police would investgate the incident and the aspect of negligence. However, no one has been cited as accused in the FIR, he added.

P. Sripathy, CEO of RGIA in Hyderabad said, "The airport authorities have formed a committee headed by Deputy CEO and comprising the Chief Operating officer of Delhi Airport and Chief Security Officer at Hyderabad Airport to investigate the incident and ascertain complete facts of the case."

“The incident is most unexpected in nature and it is very unfortunate. We deeply condole her death and our prayers are with her family”, the airport press release added.

Ms.Roy hails from Kolkata. Her body is being sent there, airport sources said.


K. Srinivas Reddy

The Hindu

Hedging of jet fuel

04 September 2010

PETALING JAYA: To hedge or not to hedge? The medium-term volatility of oil prices is giving the aviation sector a headache.

While hedging is an instrument that airlines can use to mitigate the impact of rising jet fuel costs, it is becoming increasingly difficult to rationalise the use of such an approach given the downward risk of global crude oil prices.

“The oil price volatility is one, an airline’s limited resources to invest in such an activity is another,” an analyst with a foreign research company said about challenges that airlines face today in getting their hedging position right.

“But if they did not hedge, rising jet fuel could potentially crush their operating margins, and dent their financial positions,” he added.

Crude oil prices, which determine the direction of jet fuel prices, are expected to average at US$79 a barrel by the fourth quarter of this year. As of last week, the International Air Transport Association’s (IATA) forecast of the average jet fuel price for 2010 stands at US$88.30 per barrel.

Industry experts claimed that crude oil prices could rise to an average of US$85 a barrel next year and US$100 a barrel by 2012.

Nevertheless, the trend of these oil prices remained largely unpredictable due to the weakening momentum of the global economic recovery.

As it is, some argued that there were more downward potential to crude oil prices (than there were upside potential) as they saw demand for the commodity softening in line with the trend of a slower economic growth in the next one to two years.

Still, not many airlines can afford to take the risk. This is because jet fuel represents one of the single-largest cost components for most airlines, accounting for up to one-third of their operating costs per passenger.

So, managing the cost element becomes even more significant as failure to do so can be detrimental to the business of the carrier.

A case in point: According to IATA, 25 airlines went bankrupt in the first half of 2008 due mainly to their inability to cope with rising fuel costs.

To recap, crude oil prices then were rising progressively from US$75 per barrel in the middle of 2007 to an all-time high of US$147 in July 2008.

Consequently, jet fuel prices within a span of 12 months also surged more than double to surpass US$170 per barrel in the middle of 2008. (Crude oil prices have since fallen to hover around the US$70 to US$80 per barrel level now, while jet fuel prices are currently hovering around the US$85 to US$95 per barrel level.)

So, to help stabilise their cost structures, airlines would typically hedge a portion of their fuel requirements at a pre-determined price for a specified period, while leaving the remainder to be purchased at spot prices.

Domestically, we see national carrier Malaysian Airline System Bhd (MAS) hedging 60% of its fuel requirement at US$100 per barrel for the rest of 2010, and 40% at US$100 per barrel for 2011, while local low-cost carrier AirAsia Bhd has hedged 26% of its fuel requirement at US$85 per barrel for 2010.

AirAsia has not entered into any hedging yet for 2011.

“Given the downside risks of crude oil prices, no one can be for sure whether it is a right or wrong strategy to hedge.

“As long as the airline hedges its fuel requirements, there will always be the realisation of marked-to-market gains or losses for every quarter of their financial results,” an analyst explained.

It’s a bet, analysts note. If airlines hedged their fuel requirements at a price lower than the market prices, then they would have protected their margins from being crushed by rising fuel prices.

But if market prices of fuel did not rise above the level at which airlines have hedged, then their under-hedged position would cost them extra money, which could probably lead to some booking losses.

For instance, MAS booked a marked-to-market loss of RM217mil from its hedging position for the three months to June 2010, widening its net loss to RM537mil for the period in review.

The average price of jet fuel for the quarter to June was around US$90 per barrel.

Chances of the jet fuel price exceeding US$100 per barrel for the rest of this year are slim, hence it is likely that MAS’ financials would continue to be burdened by its hedging position.

Nevertheless, investors have to take note that marked-to-market gains or losses resulting from hedging positions do not in any way reflect the airlines’ operational efficiency.

“It’s just a tool to mitigate fuel price volatility, and probably help to a certain extent... but ultimately, airlines would have to focus on the structural part such as fleet modernisation and optimal utilisation of resources to improve their operational efficiency and effectiveness, and that’s what gives them the competitive edge over their industry peers,” an analyst explained.

“And as long as the airlines can grow their revenue per available seat kilometre, they will be in a better position to cushion the effects of fuel price hike and enjoy better margins,” he added.


By Cecilia Kok

The Star

AirAsia to be ABL title sponsors

03 September 2010

KUALA LUMPUR: AirAsia are the new title sponsors for the Asean Basketball League (ABL), which begins on Oct 2.

It is not the first time that they are part of the ABL. They were the official carrier for the inaugural 2009-10 season.

AirAsia group chief operating officer Datuk Seri Tony Fernandes said that the new partnership would strengthen the ABL, which was gaining in popularity.

“We are very excited for the new season to arrive and proud to be back in the ABL with a bigger role by being the title sponsors,” he said. “As an Asean airline, it is our obligation to help develop the standard and quality of sports in the region.”

Exciting venture: AirAsia group chief operating officer Datuk Seri Tony Fernandes (sixth from left) giving the thumbs up after a sponsorship signing ceremony yesterday.

The second edition of the ABL features six teams – defending champions Philippine Pa­­triots, Satria Muda Britama (Indonesia), Brunei Barracudas, KL Dragons, Singapore Slingers and Cobras (Thailand).

The format of competition remains the same with a triple home-and-away for the league stages and a best-of-three series for the playoffs scheduled for February, including the final.


The Star