Why are more legacy airlines not setting up shop in Asia

[shon7]

the whole Qantas debate has me wondering why other airlines are not setting up subsidiaries/ independent operations in Asia? Especially the ones (like those from the mid east) with lots of cash on their balance sheet.

[bandit2]

It might be a sign that there is only 1 bunch of incompetent fools running an airline today. Guess where they are?

[Fission]

I'm currently working on an AOC application in Asia.

The regulatory requirements include:


The key post holders shall be local.
The maintenance shall be done locally, by local companies.

These are requirements for approval of an AOC.

Spot the difference

[BedakSrewet]

It would be appreciated if you could name the ( Asian ) country you are referring to Fissionaire...

[73to91]

:hmm: new AOC in ASIA ;) did you say Malaysia?


Malaysia's AirAsia chief Tony Fernandes will set up a new premium regional airline that will compete head-on with Qantas' upcoming RedQ full-service carrier, the Sun newspaper reported on Wednesday quoting unnamed sources.

The report said Fernandes' new full-service-carrier will likely be called Caterham Jet and has yet to be granted an operating licence by the Malaysian government although it has secured Bombardier CRJ aircraft.

The Malaysian newspaper's report quoted a source as saying that the airline will propose to the government that it operates from the Subang airport near Kuala Lumpur and is targeted to start operations in May 2012.

"Some of the proposed routes include Bangkok, Jakarta and Singapore," said the unnamed source.

Fernandes, who is team principal of Formula One racing outfit Team Lotus, in April purchased British sportscar manufacturer Caterham Cars.

AirAsia and Fernandes were not immediately available for comment.


Read more: AirAsia plans regional rival to Qantas: report (http://www.smh.com.au/business/airasia-plans-regional-rival-to-qantas-report-20111109-1n6k1.html#ixzz1dB0nrlvU)

[DancingDog]

and this is where AJ wants to expand into :confused:

[Orangputi]

Hi Dancing Dog and all,

Cant you all see that Cliffords puppet and before that the anti-christ Dixon are smarter than the other legacy carriers! wake up people we are talking about corporate genuises here! they know what they are doing just follow them blindly and not complain that seemed to be Cliffords view at the AGM what an arrogant peice of ****e!

Hopefully some of you will see this rant before it is removed, however mods I dont work for Qantas (used to ) but this whole situation is absolutley a farce stinks to high heaven I am not sure how this is above board and how the criminals in the board arent put in the slammer with other ordinary criminals because thats all they are!

[Fission]

I have a front row seat, my popcorn and coffee.

Unfortunately this isn't a show where everyone wins, especially when there are shareholders, governments, cultures, and egos at stake....

[alangirvan]

Anyone remember British Caledonian? They did fly LGW-DXB-HKG a few times a week during the 1980s, and at one time they did have the idea of setting up a short haul carrier based at HKG. That carrier would have flown 737s and operated services into China. Dragonair was started at about that time, and Dragonair did a lot of the things that BCal wanted to do, until Dragonair got bought by Cathay. BCal got bought by BA.

[breakfastburrito]

alangirvan, the difference is Bruce has already stated they want to do it with up to 400 aircraft in the Asian LCC market alone by 2020: Interview (http://www.smh.com.au/business/jetstar-to-invest-470m-in-singapore-hub-20110718-1hkun.html) (close enough to 20% CAGR). He even boast about being the fastest growing airline EVER.

"We've carried 20 million passengers in the past year after seven years of operation - the big low-cost carriers like Air Asia, Ryan Air in Europe, South West in the US, none of them reached that milestone so quickly. We're the fastest growing airline in the history of aviation," he said.
Sky's the limit for new aviation star in Asia (http://www.heraldsun.com.au/business/jetstar-rising/story-fn7j19iv-1226096399562)

Dragon didn't have any near that sustained growth rate. I believe this is the attraction of this strategy to management. Growth can mask a lot of sins.

[QFinsider]

All Ponzi schemes require continued infusion of new suckers.
In this case the aircraft will be funneled into this amazing business to support these incredible airlines. Growth growth and more growth until it is realised there is little yield. By then the architects have disappeared. Maybe Air-Asia merges the lot.

"Growth" by adding airframes provides huge leasing revenues, mostly non-cancellable. Who do you think may be sitting back waiting to provide all this lease capacity?

[teresa green]

Probably because Asia is littered with the bones of failed companies from the West. Japan in particular is a very parochial nation, and prefers its own nationals to run their show, and resents interference from outsiders, why Joyce thinks he can crack that, God only knows. My concern is if it all goes belly up, then what of the mother company, and its employees? Joyce will simply collect his money go back to Europe, and leave a God awful mess behind for some poor bugger to fix or even worse the administrators to come in. Lets hope it never comes to that, I think that is what all employees fear.

[Angle of Attack]

Meanwhile china southern have just started 3 weekly flights to Perth direct from Ghanghzou, They plan to have 110 services a week into Oz by 2015.... Of course everyone would rather funnel through Malaysia or wherever it is rather than all the DIRECT options becoming available wouldn't they? I am hearing through some contacts more Oz basings will be offered in the not too distant future....

[alangirvan]

perhaps the lessons from my previous post - the BCal idea never happened, and Dragonair, which started as an independent airline was purchased by Cathay. Cathay seems to end up buying quite a lot of airlines that are started in Hong Kong. Air Hong Kong. If RedQ HK does get started, what is the likelihood that Cathay would buy it. If there is a market for a Premium carrier out of HK. The two major Chinese cities out of HKG - PVG and PEK have plenty of seats available, and how many other Chinese cities would support a boutique airline. If by any chance RedQ have discovered an untapped market, Cathay could probably ask Dragonair to configure some planes from their fleet with Premium seating. Just as Singapore Airlines could ask Silkair to do some boutique flying for them.