AirAsia puts Seletar to the test

[jubilee773]

Hi all check this out, AirAsia might fly from Singapore to Malaysia.

For yours follow-up and comments...

http://www.asiaone.com.sg/streats/20031120_story3_1.html

November 20, 2003

AirAsia puts Seletar to the test

Budget airline rekindles hopes of flying direct from Singapore

By Chua Kong Ho

MALAYSIA-BASED budget airline AirAsia has a test flight out of Seletar Airport scheduled for today — a move that could jump-start its stalled plans for a daily service to Singapore.

AirAsia will fly an empty Boeing 737-300 from Singapore to Kuala Lumpur to test the secondary civilian airport’s runway and other facilities.

The plane was originally slated to fly from Paya Lebar air base to the Malaysian capital.

Of Seletar, AirAsia spokesman Aliza Zainal told Streats yesterday: "We wanted to see for ourselves what the place was like, especially since the CAAS (Civil Aviation Authority of Singapore) said they were prepared to lengthen the runway."

Talks between AirAsia and Singapore authorities recently stalled over issues such as direct bus links and airport taxes, with each party insisting the ball was in the other’s court.

CAAS has previously said that it would consider lengthening Seletar’s runway once AirAsia confirms its intention to operate from there.

The airport is currently home to the Singapore Youth FlyingClub, air charter companies, private jets and helicopters.

It handled more than 20,000 passengers and more than 70,000 aircraft movements last year.

But both AirAsia and Singapore-based Valuair have rejected using Seletar as a base because of its inadequate runway facilities.

In a separate announcement yesterday, AirAsia said it will start daily flights between Johor Baru and Bangkok from February, with one-way fares averaging RM150 (S$68) for the 90-minute flight.

It will also start daily flights to Langkawi, Penang, Kota Baru, Kota Kinabalu and Kuching out of Johor Baru from Dec 3.

The airline’s chief executive, Mr Tony Fernandes, also confirmed yesterday that the airline was in talks with Temasek Holdings for a possible partnership, but added that "it’s all talk at the moment."

AirAsia has partnered Shin Corp, a company linked to Thai Prime Minister Thaksin Shinawatra, to set up a low-cost airline in Thailand. Mr Fernandes said that the Thai operation could fly to Hong Kong and some cities in China in the future.

Orient Thai, a private regional airline, has made known its intention to compete directly with the Malaysian carrier.

Its chief executive, Mr Odom Tantiprasongchai, told Streats yesterday: "I think the Thai authorities were wrong to allow a foreign airline to run a domestic airline. I intend to go head-to-head with AirAsia."

He said Orient Thai is ready to launch a low-cost subsidiary airline, 1-2-Go, on Dec 3, with inaugural flights between Bangkok and Chiang Mai.

There are also plans to start a daily service to Kuala Lumpur and Singapore, he told Streats on the sidelines of a regional aviation conference.

[jubilee773]

Finally...

http://www.asiaone.com.sg/streats/20031121_story1_1.html


December 21, 2003

Changi from February
Seletar from October

By Chua Kong Ho


JUST when it seemed that Malaysia’s AirAsia had given up plans to fly directly to Singapore, the budget carrier yesterday committed itself to starting flights to Changi before February.

But it will then shift operations to Seletar Airport once the Civil Aviation Authority of Singapore (CAAS) completes upgrading works there by October.

AirAsia chief executive Tony Fernandes told Streats from Kuala Lumpur yesterday evening to pass a message on to CAAS: "Tell them we’re coming."

This was after Streats learnt that the CAAS was ready to give an undertaking to extend the runway at Seletar Airport once airlines commit to operating out of the former military air base.

The authority stated this after Streats informed it of comments made by Mr Fernandes at a specially arranged flight out of Seletar yesterday afternoon.

He told reporters gathered to watch a take-off of an AirAsia Boeing 737-300 from the airport that he was willing to operate out of Seletar Airport if the Singapore authorities would extend the runway to accommodate his fleet of B737-300s.

Currently, his southbound flights from Kuala Lumpur land in Senai airport in Johor, where travellers to Singapore then have to continue via taxis or buses to reach the Republic.

In a statement issued to Streats, CAAS said: "As part of facilitating the operations of airlines into Singapore, CAAS is evaluating the possible infrastructure requirements, including the extension of the runway at Seletar airport. CAAS will proceed once airlines are able to commit to operations at Seletar Airport."

These upgrading plans, which Streats obtained details of, are fairly extensive.

The southern end of the airport’s runway will be extended by 290m, bringing the total length to 1,832m after work is completed. The airport is currently viewed as unsuitable for larger aircraft such as B737-300s.

Yesterday’s test saw the Boeing aircraft, with only five passengers and no cargo, use up almost all the available tarmac before lifting off.

CAAS is believed to be ready to call for a tender by the end of this month, with construction starting in two concurrent phases from January.

The first phase entails extending the runway inland, through an existing road leading to the passenger terminal.

There is also a need to either close the airport for two weeks to enable levelling works to be done, or for a partial closure during off-peak hours, which will take at least four weeks.

The extension works are expected to be completed by July, while additional work on the airfield’s perimeter fencing and gates will be completed by October.

CAAS held a meeting with Seletar Airport operators on Nov 11 to explain its plans and solicited feedback from operators on the impact of the proposed works.

CAAS spokesman Albert Tjeong confirmed details of the plan but stressed that it is conditional on airlines committing to operating out of Seletar.

Mr Fernandes had told Streats that a major reason for his decision to expedite AirAsia’s entry to Singapore was the competition posed by the likes of Valuair, Lion Air and Orient Thai.

He identified Langkawi, Kuching and Kota Kinabalu as the likely routes it will launch when it starts operations in Singapore early next year.

AirAsia is still open to the idea of setting up a joint venture airline in Singapore even though it is now committed to operations here.

Said Mr Fernandes: "We don’t have the air rights to fly to other destinations from Singapore directly. So a joint venture may make sense."

Valuair, which plans to start flights out of Changi by the second quarter of next year, told Streats that it would "seriously consider" using Seletar Airport as its base now that the runway will be extended.