LCCT international arrival hall ahead of schedule

THE new international arrival hall at the Low-Cost Carrier Terminal (LCCT) at Sepang in Selangor will open for operation on Dec 15, weeks ahead of its original scheduled date.

The hall is part of the RM160mil new wing constructed under the LCCT expansion plan.

The whole wing is also expected to be fully ready for operation earlier than the original completion date of March 15 next year.

Spacious and hardly low-cost: Malaysia Airports Bhd (MAB) senior general manager for operations Datuk Azmi Murad at the new international arrival hall within the LCCT’s new RM160mil wing

According to Malaysia Airports Bhd (MAB) senior general manager (operations) Datuk Azmi Murad, the extension would add 32,000sq m of additional floor space to the existing 28,000sq m available.

“The check-in counters will be increased from 72 to 117 for a smoother passenger flow. The counters usually handle 600 passengers per hour but will soon be able to handle 2,200 passengers an hour,” Azmi told StarMetro.

“The grand total of six baggage carousels will save passengers’ time,” he said.

“With the additional floor space, we will accommodate more retail and F&B outlets, and shower and surau facilities,” Azmi said.

The expansion was implemented following the tremendous increase in passenger load at the LCCT soon after its opening in 2006.

Busy during off-peak too: The Low-Cost Carrier Terminal (LCCT) in Sepang was built for 15 million passengers initially but handles around 30,000 passengers daily with a 30% increase during holidays

By last year, the LCCT was operating beyond its originally planned capacity of 15 million passengers a year.

Azmi said the new wing could help cope with the 34% growth because once it was fully operational in March next year, the extended terminal could serve 30 million passengers a year.

Besides the AirAsia domestic flights and the AirAsia X international services to Thailand, Indonesia and Australia, the LCCT also caters for the Cebu Pacific Airways of the Philippines and the Tiger Airways of Singapore.

“We handle 30,000 passengers daily on regular days but during festivals and school holidays, there is an increase of 30% in passenger load. With the new wing, we can cater for more airlines,” Azmi said.

AirAsia X, meanwhile, is scheduled to start operating the London Stansted-Kuala Lumpur route from the LCCT in March next year.

According to LCCT-KLIA manager Raghbir Singh, measures taken to cope with the surge in travellers during peak seasons include extending the waiting area at the present terminal.

“By taking up the service road previously used by taxis, we have a 3,000sq m frontage for a bigger waiting area with 600 seats,” Raghbir said.

According to Azmi, to ease congestion at the present departure hall, passengers are only allowed to check in once their respective counters are opened. The others have to wait at the seating area.

As for public transport, eight bus companies link the LCCT to Kuala Lumpur, Klang, Shah Alam, Seremban, Malacca, Ipoh and Genting. There are also ample taxi services.

At present, the MAB is toying with the idea of a mechanical carpark because parking bays will soon be limited once the new wing is fully open.

With air fares increasingly becoming cheaper and competitive, resulting in the healthy increase in passenger load, Azmi does not discount the possibility of his company building a permanent and larger LCCT.

“Our holding company Malaysia Airports Holding Berhad (MAHB) owns 100sq km of land in Sepang. So we have enough space for a permanent terminal.

“We have a few locations in mind,” he said.

He also said if AirAsia did succeed in building its own low-cost carrier terminal, the present LCCT could be converted into a cargo warehouse or for other purposes.

Brands make a difference

BRANDS make a difference, and raising the standard of brands was the main focus at the Global Brand Forum (GBF) conference organised by Media Prima last week.

Fernandes with the Global Brand Forum’s Malaysian Brand Icon Award 2008

With the current economic turmoil, it was timely for marketers, media representatives and CEOs and numerous conglomerates to get tips from renowned figures in the industry to push their brands to greater heights.

AirAsia group CEO Datuk Seri Tony Fernandes advised those present at the forum to leverage on media coverage after they have established their brand and made it unique.

"Now is not the time to cut down on advertising as it is the best way to build a brand and stay ahead of competitors," he said.

"AirAsia has seen growth on advertising expenditure (adex) and we will continue to increase our adex by 15% to 20% next year."

He said apart from creating innovative product offerings, AirAsia’s other marketing efforts included collaborating with leading brands such Manchester United and Amazing Race to establish a symbolic relationship and obtain brand exposure.

Citing other efforts, Fernandes said that "free" seats giveaway campaigns are always a hit.

When AirAsia organised the Love Bali campaign with Media Prima’s TV3 after the terrorist attacks, "we wanted to make a difference".

"We wanted to help by flying people over to lend their support as well as to boost the economy. The Bali campaign offered around 12,000 free seats and within an hour, all seats were sold out," he said.

At the event, Fernandes was presented with the Global Brand Forum’s Malaysian Brand Icon Award 2008 which recognises an individual and not the company, for amazing vision, inspiring the public and for efforts in reinventing a category.

Earlier, former Procter & Gamble chief marketing officer Jim Stengel said to create a global brand, one has to be accustomed to change by re-evaluating brand value and innovating one’s brand from within the company and only then to consumers.

"The brand must have a clear representation and how it can help improve consumers’ lives," he said, pointing out Google and Nike as examples.

"Google is universally accessible by providing useful information while Nike’s idea was to lead the company via a leadership position in athletics – ‘If you have a body, you’re an athlete’."

Other speakers who attended the forum were Shanghai Tang Hongkong creative director Joanne Ooi and Flickr co-founder Stewart Butterfield, who also shared the same sentiments as the first two speakers – brands need to be consumer-centric, innovative and unique, which are achievable via various marketing and advertising efforts which is crucial, especially with the economic crisis.

Your 10 questions

This column takes readers’ 10 questions to interesting people in the public eye. This week interviewee is Datuk Seri Tony Fernandes CEO, AirAsia Bhd.

As the founder of the budget airline and the man who has revolutionised the country’s airline sector, he is easily one of the most written about CEOs in the country. Interestingly enough, readers still have plenty to ask him. Fernandes takes time to answer some of them.

1 Who is behind your success and what is your philosophy in life? – Anne Athi, Penang

Datuk Seri Tony Fernandes

My father and mother. I believe in the unbelievable, dream the impossible and never take no for an answer.

2 You are such an inspiring and positive person. You are featured in nearly every magazine, but how come you don’t talk about your personal life? For instance, are you married with children? – Doris Ong, clinic nurse, Ipoh

It’s a rule I have with my family and I do not intend to change it. Business is business, personal life is separate.

3AirAsia is now one of the co-sponsors for F1 team AT&T Williams. As AirAsia is a budget carrier and is all about low frills and low cost, does it fit into AirAsia’s strategy to sponsor such a team? – Shane Lai, businessman, PJ

The purpose to sponsor fitted nicely with our strategy especially with AirAsia X’s route map. The F1 is held in some destinations that AirAsia X flies to or will be flying in the future. We would not have sold 25,000 tickets to London if not for the marketing and branding. I also motivate my staff to have high quality and efficiency like the F1 team.

4 How do you see 2009 affecting your business and what are your strategies to overcome this and the competition with Malaysia Airlines? – Lim Meng Siang, investment banker, KL

MAS is obsessed with what AirAsia is doing. They really should be focusing on their market and business, as lack of focus will cause them dearly in years to come. We have moved on. Our battle was about getting rights, we have got them. Our challenge is to continuously keep our fares low and cost down. We are also not looking over our shoulders and believe competition comes from within us.

5 How many flying hours do your pilots have on average and what is their average age? – M.K. Leong, lawyer

Our pilots fly 90 hours. I have to check their age as I do not carry that information in my wallet.

6 How do you intend to reward your shareholders when you keep buying new aircraft at a time when other airlines are scaling down? – Jenny Low, businesswoman

Airline business is not about quarterly profits, it is a cyclical business with ups and downs. AirAsia has a 10-year plan and we are half way through that plan. America’s Southwest Airlines recorded long-term growth and not quarterly profits and they have done very well. To us growth continuity is key in our business and so is growing market share. We have elevated ourselves and have the staying power. AirAsia is a long-term bet.

7 What are the criteria in picking your air stewardess? MAS air stewardess, while also pretty, look more “simple’’ whereas AirAsia stewardess have a more “dangerous’ look. Just curious – Marilyn Phoon, former SIA air stewardess, now E & E engineer

I suppose stewardess should not look the same and I cannot tell them how to look. I leave that to them but they have to be comfortable with their appearance to interact and exude a natural feeling. Crews are the stars of the show and individuality is all about being you, and that is all about creativity and innovation.

8 When flights are late and I try to call your customer service to check the flight status, nobody answers or I am put on hold for an unnecessary long period of time. Why is that so? – Rose Irene Mohammad Ali, chemical engineer, KL

Certainly our call centres have not kept up with the growth the airline has experienced and that explains the huge number of customer calls. We are urging customers to self-serve. We try to send SMS and keep updating customers. We are now outsourcing our call centre but at the same time we are conscious of our cost as higher cost will lead to higher fares.

9 Why do you not package Tune Hotel and AirAsia tickets together? – S.C. Leong, retired auditor

There are some packages but these are two separate companies, although they have common shareholders.

10 Why don’t you sell two-way tickets instead of quoting one-way tickets? – Grace Leong, teenager

One way tickets give greater flexibility and efficiency for people to change.

AirAsia boss aspires to 'take over' SIA

KUALA LUMPUR (Dec 5, 2008): Budget airline AirAsia boss Datuk Seri Tony Fernandez yesterday said his long-term objective is to one day “t

Najib presents Fernandez with the Brand Icon Award.

ake over” Singapore Airlines.

Speaking at the Global Brand Forum Malaysia at the Palace of the Golden Horses, the maverick entrepreneur revealed his company’s ambitions at the end of a slide presentation.

To the amazement of those present, he showed two pictures – one of aircraft livery and the other of AirAsia’s new uniform for its stewardesses – and told his audience what he he would name his new company – “Singapore AirAsia”.

Fernandez, who was later presented with the Malaysian Icon Award by Deputy Prime Minister Datuk Seri Najib Razak for his contribution to the country, kept the audience in stitches throughout his one-hour presentation.

“And this is the uniform the stewardesses onboard Singapore AirAsia will wear,” he said, pointing to a picture of a smiling woman wearing a combination of the famous SIA baju kebaya and striking red AirAsia skirt.

While many in the audience laughed it off, industry observers took the view that it was a signal from Fernandez, following news reports of Malaysia Airlines having talks on a possible merger or a strategic alliance to form a global airline with British Airways and Qantas.

A Malaysian newsportal said that owing to global economic pressures, the airline industry was going through a consolidation period, with talks of mergers, acquisitions and bankruptcies dominating the business pages.

Najib said he was proud of Fernandez’s achievements, not only for his company but for the country as well.

AirAsia on par with Singapore Airlines

SINGPORE, Dec 4 — AirAsia chief executive officer Datuk Tony Fernandes was all glee on Monday when the low-cost carrier began the first of its seven daily flights from Singapore to Kuala Lumpur.

The reasons were many. At the top of the list was that his dream of total open skies between Singapore and KL had been realised. He compared the challenge of opening the route — which used to cost about S$400 (RM960) return on full-service carriers — to "Nelson Mandela fighting for freedom".

"It was ridiculous that the most expensive route in Asia was KL-Singapore," he said.

Now, the fares could be as low as S$60 return on budget carriers, which also include Tiger Airways and Jetstar Asia. There are some 14 flights daily from Singapore to KL.

The plane that Fernandes greeted on the tarmac on Monday was 85 per cent full, with many Singaporeans on board. From this group, Fernandes met a couple who flew to Kuala Lumpur on their way to Langkawi. Which thrilled him no end.

"Singaporeans certainly don't think about flying to KL to take a flight," he said. Indeed, flying to KL allows Singaporeans to tap into a web of budget connections offered by AirAsia and its long haul arm, AirAsia X. Both launched new routes last week — the former to Trichy, Tamil Nadu; the latter to London.

Does Fernandes think Singaporeans will fly to KL to switch planes?

"I think it's beginning to happen," he said. "Singaporeans are very savvy. They are very loyal to their wallets. Malaysians, too," he added with a laugh.

The company recently scrapped its fuel surcharges, which Fernandes admitted was a big risk, but according to him, sales tripled.

"Singaporeans are also adventurous. The young in Singapore want to travel. They want to see Borneo, Siem Reap ... We provide that connectivity, so I don't think it will be hard to convince them."

Route-wise, short-haul carrier AirAsia has covered all the countries within its range. It will focus on flying to more destinations in China and India. There's more potential for AirAsia X to go global.

"I'd love to see AirAsia X fly to Africa — KL to Nairobi. And, one day to the (United) States. Maybe my last route will be KL-Rio."

That's Rio de Janeiro, Brazil, which is more than 24 hours by plane away from KL.

But Fernandes is accustomed to dreaming big, taking risks and opening routes to places most people don't know about. Like Tiruchirappalli, or Trichy, which he had heard about at a funeral. He decided to fly to Trichy because of the town's religious significance and the fact that a "lot of Indians from Malaysia and Singapore are from there".

His dream is for the seven-year-old AirAsia to take on Singapore Airlines — though not all of it. "SQ is the best airline in the world without a doubt," he said. "My aim now is to tell people that we are as good as they are ... in the back end. I think we can be as good in the economy section. That's my goal before I leave my job as CEO."

AirAsia launches Kuala Lumpur connection to India

The first route launched by AirAsia to India arrived from Tiruchirappalli on Monday, celebrating both the inaugural flight and the overwhelming 100 percent load for the first two weeks of flights.

The route was opened for sale only a month ago, and already a 100 percent load from 1st to 18th December 2008 has been recorded, as well as an average of over 80 percent load factor both ways.

The daily service is being operated on the new Airbus A320, offering 180 seats each way.

“The continuous strength of this network will allow AirAsia to rapidly drive growth, perhaps even ramping-up more frequencies in the future so that our guests can continue to enjoy our revolutionary low fares,” he continued.

The Indian population of Malaysia is expected to benefit from these services, as Fernando commented, “Our extremely affordable fares will enable them to trace back their family roots, renew family ties, and perform pilgrimage or travel for holiday purposes.”

The new service from Kuala Lumpur to Tiruchi departs daily at 7:40, on AK231, returning at 9:25 from Tiruchi on AK 232.

Attending the inaugural flight celebration, the High Commissioner for India in Malaysia, HE Ashok K Kantha recognized “AirAsia has revolutionized air travel with its low fares and made flying affordable for everyone.”

He added, “We are confident that AirAsia will not only assist us in boosting bilateral agreement, the local tourism industry and economy but also opening up our market.”

AirAsia to resume flights to Bangkok Friday

BANGKOK, WED:

Budget carrier AirAsia will resume its commercial flights to and from Bangkok via the Suvarnabhumi International Airport on Friday.

All its 108 flights scheduled for Friday will take off and land at the US$3.5 billion airport which was reopened for limited flights Wednesday after thousands of anti-government protesters left the building this morning following an eight-day siege.

The airport was closed at 9pm on Nov 24, paralysing Bangkok’s air travel and stranding over 300,000 foreigners.

AirAsia and its Thai subsidiary had to cancel an average of 100 flights daily, but mounted several rescue flights to and from the Utapao Airport located at a naval base near Pattaya.

“We would like to caution guests (passengers) that as the AirAsia call centre has been overwhelmed with calls, guests may face difficulties getting assistance. However, guests may obtain latest updates on AirAsia flights on AirAsia.com,” it said in a statement.
The airline said that beginning Tuesday, more rescue flights were mounted to ferry stranded passengers to Chiang Mai, Phuket, Kuala Lumpur, Singapore, Macau, Shenzhen and Hong Kong.

AirAsia also advised its passengers affected by the cancellations that they would automatically receive a credit shell that could be used to book new AirAsia flights.

The credit shell is to be redeemed within three months for their future travel to any AirAsia (except AirAsia X) destination. Passengers with membership login account numbers are able to utilise credit shell for Internet bookings.

Passengers who have purchased the AirAsia GoInsure Travel Protection are advised to call the 24-hour AIG Travel Assist at +603-27725622 if they need help in obtaining accommodation or other forms of travel assistance, or want to file a claim.