Air Asia

[DARK VADER]

Malaysias top budget airline AirAsia is in talks to buy up a minority stake in local carrier Holiday Air, which is due to start international flights next year.

`We are in deep discussions with Air Asia and close to a deal,` Arjun Ruzaik, Chief Executive Officer of Holiday Air told Lanka Business Online on Friday.

The joint deal will be the region`s biggest budget carriers first entry into Sri Lanka and will give Holiday Air much needed technical and operational support ahead of its launch into the region.

AirAsia currently has 49 percent joint venture partnerships in Thailand and Indonesia but with full management control, giving it landing rights in those countries.

The airline currently offers over 100 domestic and international flights a day to Malaysia, Thailand, Indonesia, Singapore, Cambodia, Vietnam and the Philippines, carrying 6.2 million passengers last year.

The no frills carrier has been eyeing Colombo, three hours and 15 minutes away from Kuala Lumpur, for its potential to carry Malaysian tourists and Buddhist pilgrims from Thailand.

Holiday Air is one of three contenders to fill a second slot as a Sri Lankan carrier alongside SriLankan Airlines, with plans to operate as a budget carrier.

The airline, together with domestic airline Expo Aviation and local helicopter operator Deccan Air have got provisional licences to fly to India, subject to technical clearances.

`Local operators have asked for three months to submit their technical plan, which includes safety standards and other requirements,` H M C Nimalsiri, Director General of Sri Lanka`s Civil Aviation Authority said.

Ruzaik says he hopes to have the technical plan for Holiday Air complete by October this year, after which recruiting for the new airline will begin ahead of flights being rolled out next year.

Flights to about 16 other destinations including Abu Dhabi, Bangkok, Doha, Muscat and Male are to be rolled out after the second month of operations, Ruzaik says.

`As at today we do not have the six metros of India, because frequencies to those destinations have been filled up by SriLankan Airlines,` Ruzaik said.

The government is in negotiations with India to expand frequencies to top tourist generating markets in India, including Bangalore, Bombay, Chennai and Delhi.

Holiday Air says it will start by leasing out five Boeing 737 planes, which are 148 seat aircraft, with prices possibly slashed by as much as 20 to 30 percent on scheduled rates.

Source: http://www.lankanewspapers.com/news/2006/7/7913.html

[Cyrano]

Surprised there hasn't been a thread on this started here yet!

At a press conference this morning in KL, Tony Fernandes, AirAsia CEO, announced the company was setting up a long-haul LCC, to be called AirAsiaX. First flight is planned for July. Routes will be KL to two Chinese destinations and to the UK, probably via Sharjah or another Gulf point. UK destinations he mentioned (in a subsequent Bloomberg interview) were STN, MAN and/or BHX.

Airbus is planning a major press conference on Monday and at this stage the smart money appears to be on a large Air Asia order being announced, for anything up to 100 A320s for the existing Air Asia operation and for some number (20?) of A330-300 orders/options for the new long-haul operation. The airline apparently plans to configure the A330-300s with 400 or so seats (!) including 14-21 "economy plus" seats (these numbers imply seven-across in the economy plus cabin, so not too much competition with SQ's new business class then :cool: ).

The target operating cost is 1.9UScents per ASK :eek: - pretty spectacular if they can achieve that.

STN-SHJ-KUL is about 11000km great circle, which gives operating costs of about US$209 per available seat - let's say a 90% load factor, and you're looking at a breakeven yield of about $230. Some pretty low UK-Asia fares in prospect then, especially if you consider that AirAsiaX's longer (UK) sectors will have lower costs/ASK than the shorter (Chinese) ones.

Interesting times ahead...
C.

See http://www.pprune.org/forums/showthread.php?t=258130

[cesare.caldi]

There is a website for the new AirAsia X?

Google it please. No advertising links allowed.

[airhumberside]

BHX is interesting. I guess a stop en-route at somewhere like Amritsar (as mentioned in some press reports over the last week) would be needed to make the route work

[Dan Air 87]

Malaysian said they tried hard to make their MAN-KUL route work even with a 777 but it couldn't work no matter what. so how come Air Asia say that they can make it work with an A330 at cut price levels? Mind you if any pax on these flights want to get to London then the fare for the 30 minute flight will be just as much as the flight from KUL!

[Bagso]

Malaysian said they tried hard to make their MAN-KUL route work even with a 777 but it couldn't work no matter what. so how come Air Asia say that they can make it work with an A330 at cut price levels? Mind you if any pax on these flights want to get to London then the fare for the 30 minute flight will be just as much as the flight from KUL!

sorry to correct you but it did work....

they were actually getting 90% load factors...they pullled due lack of aircraft and internal money pressures, that is why Air Asia belive that this is a good bet....!

I also understand Air Asia are also looking at Hong Kong which was also a money spinner until BA got into bed with CX and then forced CX to pull, same thing with Qantas some years back which is why Jestar are also looking at MAN on del' B787.

Yields re 1st class are a problem anywhere other than London but economy has never been a problem.

Also can you get a an A340 direct to KUL out of BHX..?

Just curious ?

[OltonPete]

Bagso

I have not got the technical data but the general consensus is when
discussing BHX and A430's on 8 hour plus flights, is...Not a chance.

As far as I am aware BHX has still to have a visit from a 340.

One rumour is that any BHX flight might stop at Amritsar, which is
predictable and could put a squeeze on Turkmen and Uzbek of course
let alone Air India.

OP

[Ian Farquharson]

From Malaysian Straits Times

Air Asia X

In announcing the new budget airline that proposes to introduce budget
flights from the far east to Europe the Malaysian press said and I quote; "
The budget route will not be serving Heathrow Airport but secondary airports
such as Stanstead, Manchester, Coventry and Birmingham"
Coventry could be interesting !!!!!!!!!!!!!!

[OltonPete]

There was me worrying about 340's and BHX........Coventry :eek:

OP

[alangirvan]

The Air Asia website has a shop link where they sell Manchester United merchandise on board the planes. They have one A320 painted in Man Utd colours. Flying to Machester is an act of homage for them.

Air Asia can do links through their hub at KL to Macau, which is a ferry ride away from Hong Kong City.

[EI-BUD]

alangirvan

I was pleasantly surprised last Thursday when my KL to bangkok flight was on the MAN U painted ac, I am not a fan of Football but my friends are so I got some photos. There is a glass window dividing the right hand side seats from the front galley which has the signatures of the players on the team . It was a nice flight. But I have to say the leg room on Air Asia is the worst of any LCC I have ever experieced. I did a few flights over the last 2 weeks around asia with AK/FD and mostly on 733, the leg room was even worse, many of the 733s are in bad condition. They have huge emphasis on Manchester UTD merchandise!

The A320 has 162 seats and the 733 has 148 with Air Asia. However, the new 320s are arriving and serve the airline well. Interestingly at the new BKK, the Air Asia A320s use Jettys whereas all the 733s are parked at a remote stand and you get bused out to the ac from the terminal. I must say it felt like a cattle herding exercise going on the bus !!!!He he .

On a much more positive not I flew BKK REP on Bangkok air/Siem Reap on A320 and it was one of the best short haul flight I have ever taken. An excellent airline by all accounts.

[DONTTELLTHEPAX]

Has anyone got any updates on AirAsiaX, nothing muttered for a while.

[cesare.caldi]

AirAsia X to announce aircraft purchase in March

KUALA LUMPUR –– Malaysia’s long-haul budget carrier AirAsia X will announce its choice of 20 aircraft worth some four billion dollars next month for its service to Britain and China, a senior official said Sunday.

“An evaluation to pick either Airbus 330-300 or Boeing 777-200 for the new long-haul carrier AirAsia X has been completed and an announcement will be made in March,” Raja Mohamad Azmi, chief executive officer of Fly Asian Express (FAX) told AFP.

“Both are great aircraft,” he added. He did not elaborate. AirAsia X, a new long-haul, low-cost carrier was unveiled in early January and is expected to carry half a million passengers in its first year of operation.

The airline will be operated by FAX, which currently operates rural air services on Borneo island.

Airline officials familiar with the purchase plan said price and availability of aircraft are among the major factors in deciding the winner.

Raja Azmi said the new service will take off in August with inaugural flights to Britain and China being launched simultaneously.

“We will initially lease three aircraft—either the Boeing 777-200 or the Airbus 330-300 to begin the service,” he said.

It also has plans to fly to India and Australia. Raja Azmi, who is also a shareholder of leading low-cost carrier AirAsia, said the new aircraft would come into service in the third quarter of next year.

AirAsia was launched as a budget carrier in December 2001 with just two aircraft but now offers more than 100 domestic and international flights to Malaysia, Thailand, Indonesia, Singapore, Cambodia, Vietnam and the Philippines.

Times Of Oman

[DONTTELLTHEPAX]

Not good news for the new longhaul routes from AirAsia, see link :ugh:
http://news.bbc.co.uk/1/hi/business/6443181.stm

[DONTTELLTHEPAX]

AirAsia X is reported to start service in the fourth quarter of 2007 by leasing several aircraft until it takes delivery of the new Airbus aircraft
in Aug 2008.

The first three destinations are expected to be Hangzhou (http://en.wikipedia.org/wiki/Hangzhou) and Tianjin (http://en.wikipedia.org/wiki/Tianjin) in China (http://en.wikipedia.org/wiki/China); and London (http://en.wikipedia.org/wiki/London) or Manchester (http://en.wikipedia.org/wiki/Manchester) in the UK (http://en.wikipedia.org/wiki/United_Kingdom). Other potential destinations are Amritsar (http://en.wikipedia.org/wiki/Amritsar) in India (http://en.wikipedia.org/wiki/India), Sharjah (http://en.wikipedia.org/wiki/Sharjah) in the UAE (http://en.wikipedia.org/wiki/United_Arab_Emirates), Melbourne (http://en.wikipedia.org/wiki/Melbourne) in Australia (http://en.wikipedia.org/wiki/Australia) and Osaka (http://en.wikipedia.org/wiki/Osaka) in Japan (http://en.wikipedia.org/wiki/Japan). It is reported that the Malaysian government has given AirAsia X rights to 36 international destinations.

[DONTTELLTHEPAX]

http://www.smh.com.au/news/business/budget-airline-plans-nofrills-routes/2007/04/22/1177180480606.html

[pamann]

It is already in talks with BAA, the UK airports operator, about starting services to Birmingham or Manchester by September next year.

Funny how neither BHX or MAN are owned by the BAA. Someone needs to get their facts straight. On the subject is Stansted still the focus for their long-haul operation?

[FFHKG]

Press Conference due at 3.00pm (Malaysia) to announce launch of services and order for 15 aircraft.
Tony Fernandez in interview on BBC World Asia Business News this morning indicated that the services would start with routes within Asia (China?) in September 2007 using leased aircraft.
Indicated that they would be announcing an order for 15 new aircraft with delivery starting in 2008 - confirmed that the leased a/c would be airbus and indicated that the order for he 15 aircraft would be the same "established" model.
Also stated that they hoped to launch services to Europe in late 2008 with Stansted and Manchester under consideration as UK routes

[pwalhx]

BBC news this morning indicated Manchester looked like being the UK destination.

[DONTTELLTHEPAX]

With the Olympics being held in London, I would have
thought that they would want a London link, if not
they will have missed out on alot of cash.

Manchester and Stansted have been talked about
since the Airline was announced, depending on which
news report you read they talk about STN/MAN being
the first UK destination.

[Xeque]

I’ve been following today’s story about Air Asia’s plans to expand into the long haul market.
The latest is an announcement that they will buy 10 A330’s and that they will be expanding their routes to Australia, China, India, the Middle East and Europe/UK.
I’ve flown Air Asia 737’s locally and the airline is very good. Would you believe black leather seats?
I suppose that, with the current preoccupation with greenhouse gasses, global warming and climate change, one should reflect upon the additional pollution that might be created by cheaper long haul fares and an increase in passenger traffic.
Or will that be so? There must be a finite number of people who need to travel outside a given area. Perhaps a new and less expensive carrier will ‘poach’ passengers from the existing airlines rather than increase the overall total of those choosing to travel by air. In which case those other carriers may have to reduce their scheduled flights rather than operate with less than 100% loads thereby maintaining some sort of status quo.
Or am I fooling myself?
There is no reason why the low cost model cannot be applied to long haul operations. I wouldn’t mind buying my meals and beverages or paying a fee for my in flight entertainment provided that I am given the opportunity of providing these things for myself if I choose.
Trouble is, how can I convince some Neanderthal security man that my bottle of Bollinger and the contents of my picnic basket is not something that might be used to create an explosive substance? :ugh:
There will be an inevitable increase in overhead. The low-cost short haul market benefits from the fact that many crews come ‘home’ at the end of their working day. Now you will have relief crews requiring hotel accommodation and subsistence all along the extended routes.
The only other consideration is passenger comfort. One can put up with a 27 inch seat pitch for a couple of hours but long haul? Forget it. If that happens then the whole thing is doomed from the start.
Good luck Tony Fernandes and Air Asia.

[fireflybob]

There will be an inevitable increase in overhead. The low-cost short haul market benefits from the fact that many crews come ‘home’ at the end of their working day. Now you will have relief crews requiring hotel accommodation and subsistence all along the extended routes.


I wonder! I suppose in certain cases the return sector crew could "deadhead" outbound to operate the return service and the outbound crew then "deadhead" on the way back! I am sure the beancounters are already working on this one. Time will tell.

[knobbygb]

I wouldn’t mind buying my meals and beverages ...... provided that I am given the opportunity of providing these things for myself if I choose.

From AirAsia website t's and c':

10.4 Passengers are not allowed to consume their own food on board.

Blantant profiteering and the reason why, when in the region earlier in the year, I clicked 'close' on the browser just when I was about to book a flight. At the time I'm sure it said "food or drink". Lets just hope a certain Irish airline owner doesn't see that.

[easyJet Galley King]

Anybody have any idea when AirAsiaX will launch?

I gather they have started to recieve the aircraft, but still no ability to book anything???

[GLENO]

Their A330 is due into Manchester on Tuesday Morning and is staying for a couple of days.Think its connected with the Champions League game against Roma this week. Don't know about any routes from the Uk, but Brisbane from Malaysia went on sale last week with some really cheap fares I seem to remember...

[MAN Guy]

Didn't realize the MAN visit was probably in connection with the football...... I had my fingers crossed that it would be to announce MAN as their UK start up airport in a blaze of publicity ;)

[alangirvan]

Flights between Malaysia and Gold Coast (just south of Brisbane) are on sale now at Air Asia site. Western meal will be a choice of a foot long hot dog or a chicken pie.

[GLENO]

ManGuy, hoping myself that the annoucement will come this week or are we simply putting 2+2 together and making 5????;)

Update on the flight arriving for the United Game A320 now due 01/10 @ 8.10hrs..........9M AFC Man United Logojet.

[easyJet Galley King]

Their route map shows flights from both MAN and STN. It is actually easier for me to jump on an easy flight to PRG though and get it from there, but as yet no European flights on sell.

Any ideas when this will be?

[cesare.caldi]

European flights probably start in 2008 when will receive new planes.

[420]

well as the rumours get even more upbeat... i hear now there is like a 95% chance that air asia will be purchasing 20 787 dreamliners....


geez.... so much for the whole airbus revolution. they're just getting rid of the boeings... and in comes more.

whats the story man.

[DONTTELLTHEPAX]

So any news on UK destinations,

[DONTTELLTHEPAX]

Budget carrier AirAsia has been given permission to fly the lucrative Singapore-Kuala Lumpur route.

Malaysian Prime Minister Abdullah Ahmad Badawi made the decision to break a monopoly held by Singapore Airlines and Malaysia Airlines.

Malaysia-based AirAsia and Singapore's Tiger Airways will now be able to operate the route, setting the stage for a price war.

From December, AirAsia and Tiger will be able to operate two daily flights each from Kuala Lumpur and Penang, and from Kota Kinabalu and Kuching on Borneo Island.

[420]

as for the new UK destiantions im not sure. I know though that currently the plan is to lease two A340's initially early 2008 and these will be operating direct KL-UK until the so called 787's or A350's or whatever it is they are buying come into the picture in a later time. makes more sense to keep and maintain the whole fleet on airbus though since it saves on trg costs (only ccq required).

there's no fuss when your'e on a bus. ;)

[LGS6753]

Air Asia X will be starting UK operations in March 2009 with a leased A340. One of the London airports will be the first destination, probably STN. Initially there will be 5 flights a week to KUL, increasing to 14.
This according to The Star newspaper, reported by J4A.

[JulietNovemberPapa]

D7 will fly six-weekly from KUL to PER starting 2nd November, apparently increasing to daily in 2009.

It's already listed in its dull-down menu, but it's unavailable for booking until midnight Western Australia time.

Introductory fares from AUD$99 one-way apparently including taxes.

[JulietNovemberPapa]

Two new AirAsia routes:

KUL-Guilin: Mon, Wed, Thur, Sat.
KUL-Manado: Sun, Tue, Fri.

These new routes means AK now serves from KUL 6 Chinese destinations (I've included Hong Kong and Macau, but I haven't included D7's Hangzhou route) and 13 Indonesian destinations.

AK has stated that it'll serve two more Indonesian destinations from KUL: Balikpapan and Batam. Moreover, D7 will fly from KUL to Tirchirapalli (India) and Tianjin (China).

[harrogate]

So, I've been reading this weekend that Air Asia are still set to launch Stansted-KL around easter '09.

Any informed ideas when the fares might be one sale?

I can guess myself, so if anyone can add a bit of inside speculation, then it'd be appreciated.

Ta.

[flyzen]

Now announced on website as "coming soon" :D

[daz211]

Flight are from Stansted, first flight due march, tickets were to go on sale this month.

A/C to be used A340 :ok:.

[daz211]

AirAsia, The First Airline In The World To Abolish Fuel Surcharges :=

KUALA LUMPUR, 11 November 2008 – AirAsia, the leading and largest low cost carrier in Asia today will be the first in the world to abolish fuel surcharges from all its international and domestic flights. The airline is dedicated to making travel more affordable and accessible for everyone. Beginning today, guests flying with AirAsia and AirAsia X will only have to pay our low fares, airport taxes and administration fees.

Hello ever heard of Ryanair :ugh:.

[Localiser Green]

Ryanair never had fuel surcharges - so technically the statement that AirAsia are the first to abolish fuel surcharges is correct.

After all, how could Ryanair do that, when they never had them in the first place?

[groundhogbhx]

I love the term 'guests'. To me that means people who are invited to travel, usually for free. After all when was the last time you were invited to be a guest anywhere and pay for the privilege :}

[VAFFPAX]

Groundhog, you are a guest in a hotel and you usually pay there for the privilege... :-)

S.

[harrogate]

Ryanair never had fuel surcharges - so technically the statement that AirAsia are the first to abolish fuel surcharges is correct.

After all, how could Ryanair do that, when they never had them in the first place?

Spot on.

It's marketing, dahling.

Done the job too, evidently.

[jamzjamzjamz]

I just booked a flight from KL-STN. £113 including checked luggae and meal for July. What a deal!

[GLENO]

You can get a return for £199 in June showing on the website inc Tax!:ok:

[brown1950]

Are you coorect when you say incl of taxes. Website says fares are exclusive of taxes.

Example 22/5 to 27/5 £225.00 no taxes shown ? Are these added after you provide CC details ?

[tommyc2005]

Brown - the fares are inclusive of tax. They show up as £49 out and £69 back or something similar, but the total on the right will show £198 total.

[daz211]

Im so happy, I have just booked 1 x RTN flight STN-SIN in May/Jun
for £240 all tax inc :ok:.

I hope AirAsiax advertise on UK TV and in the national Press.

BA wanted £770 :=, I could do the same trip 3x for that :ugh:.

[WHBM]

I've had a detailed look at the Air Asia proposed timings, because I couldn't quite believe they were going to get 5 round trips a week KL-London with one A340. But they certainly are attempting to.

Always 90-minute turnrounds in London, at the end of a 13.5-hour sector. Most turnrounds in KL only marginally longer. Just one stop a week is 12 hours. Planned utilisation up at 19.3 hours a day.

With one secondhand aircraft (ex-Air Canada apparently) this sounds like a recipe for periodic chaos, especially as A340 maintenance will be new to teams at both ends of the route. One diversion or significant dispatch delay and they will be finished; the only recovery would be to cancel a round trip. Unlike short-haul low-costs who have a chance to recover overnight when things go pear shaped, this aircraft just goes on and on at constant utilisation.

I really would have advised in their initial few months, at least, just 4 round trips a week, and a softer schedule.

[harrogate]

Hold your horses, because a very reliable source told me when I did some digging last week that Air Asia were on the cusp of completing a lease deal on a second A340. I think the announcement of the commencement of the London service hinged on the securing of the second plane, so brace yourself for an announcement of a second A340 in the not too distant future.

Dicky's trimmed the frequency on some of his routes too. Given that he owns 20% of Air Asia X, any chance one of his 300s could be sat in the wings?

[daz211]

Well flights must be selling well, the £99 flights have gone
and the lowest I can find now are £221.

[harrogate]

Plenty of £171 fares that I can see.

Nothing lower than £200ish for Easter though, which was inevitible.

[daz211]

I have been informed that AirAsia's additional flight will depart STN at 2100 and the later flight will move to an earlier time of 2300 it was 0125.
Is there enough demand for 2 x A340's departing STN within 2hrs ?

How is the current flight doing any numbers out there ???

[Seljuk22]

STN-KUL, A340-300 (286 seats), daily flights

July: 14,941 passengers > load factor: 84.3%
August: 16,291 > 91.9%
September: 15,291 > 89.1%

[Bagso]

..clearly time to add Manchester !

[daz211]

AirAsia is elated at the announcement by Prime Minister Datuk Seri Najib Tun Abdul Razak regarding the granting of Paris landing rights to AirAsia by the French government. We now await more details from the authorities.

[Sunstar320]

Considering all the discounting going on in these few months, those figures are brilliant. Just wait till they put in their A333 equivalent of a seat on their A340's..

Will be interesting to see what US destination they will add soon. Considering their marketing with the Oakland Raiders, it would be bizarre if they didn't fly there anytime soon.