Singapore's Valuair Aiming to Launch First Service in Q2 2004
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Singapore's Valuair Aiming to Launch First Service in Q2 2004
AsiaPulse
Tuesday October 21, 12:01 PM AEST
Singapore's Valuair Aiming to Launch First Service in Q2 2004
SINGAPORE, Oct 21 Asia Pulse - Singapore Airlines' subsidiary Silkair is bracing itself for the entry of new local budget airline operator ValuAir in the second quarter of next year, The Straits Times revealed today.
The latest entrant to the burgeoning budget airline market will target destinations within a five-hour flying time radius of Singapore, bringing it into direct comnpetition with SilkAir.
ValuAir will lease new planes from Singapore Aircraft Leasing Enterprise, with the first 162-seater Airbus 320 due for delivery in March 2004.
A second is due to be delivered in April.
ValuAir spokesman Jimmy Lau was quoted as saying the airline was seeking to operate a minimum of 10 aircraft within five years.
The announcement by ValuAir comes as the regional budget airline market heats up, with Malaysia's AirAsia preparing to launch its first flight tomorrow from Senai Airport in Johor, located on Singapore's doorstep, to Kuala Lumpur.
ASIA PULSE
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Dow Jones
Monday October 20, 6:09 PM AEST
Malaysia AirAsia: FY03-04 Traffic To More Than Double
KUALA LUMPUR (Dow Jones)--Malaysian budget airline AirAsia expects its passenger traffic to more than double to 3.4 million in the year ending June 30 from 1.45 million the previous year, Chief Executive Tony Fernandes said Monday.
"We have exceeded our target in the first three months (of 2003-04) as our load factor was 84% versus our budgeted 70%," Fernandes said on the sidelines of a conference for airport operators.
He also said AirAsia will have 20 airplanes - all Boeing 737 models - by end-2004. Of these, four are purchases, while the rest are on lease.
Asked whether the carrier will issue bonds to finance its new planes, Fernandes said, "No, we don't have the track record for a good (bond) rating."
He declined to say how the company will finance its purchase of planes but said an announcement on its funding arrangement will be out Thursday.
Fernandes also said AirAsia - the region's only budget airline currently - isn't fazed by news other budget carriers may soon fly in Asia.
Singapore-based Valuair is starting operations in the second quarter of 2004, while Thai Airways plans to set up a no-frills carrier by early next year.
"We are only worried about cost," Fernandes said, although he noted AirAsia has the world's lowest cost base.
On his airline's expansion plans in the region, Fernandes expects the carrier to target Indonesia and Thailand "hopefully" by the year-end.
AirAsia recently won landing rights for Thailand's Bangkok and Phuket and Indonesia's Bali.
He also downplayed fears AirAsia is competing with Malaysia's flag-bearer Malaysian Airline System Bhd. saying, "We haven't affected MAS's (Malaysian Air) markets one bit. We are creating a new market."
AirAsia has fares as low as 1.99 ringgit ($1=MYR3.80) one way from Kuala Lumpur to Penang.
The company was taken over by privately-held Tune Air Sdn. Bhd. in late-2001.
=============================================
Tuesday October 21, 12:01 PM AEST
Singapore's Valuair Aiming to Launch First Service in Q2 2004
SINGAPORE, Oct 21 Asia Pulse - Singapore Airlines' subsidiary Silkair is bracing itself for the entry of new local budget airline operator ValuAir in the second quarter of next year, The Straits Times revealed today.
The latest entrant to the burgeoning budget airline market will target destinations within a five-hour flying time radius of Singapore, bringing it into direct comnpetition with SilkAir.
ValuAir will lease new planes from Singapore Aircraft Leasing Enterprise, with the first 162-seater Airbus 320 due for delivery in March 2004.
A second is due to be delivered in April.
ValuAir spokesman Jimmy Lau was quoted as saying the airline was seeking to operate a minimum of 10 aircraft within five years.
The announcement by ValuAir comes as the regional budget airline market heats up, with Malaysia's AirAsia preparing to launch its first flight tomorrow from Senai Airport in Johor, located on Singapore's doorstep, to Kuala Lumpur.
ASIA PULSE
============================================
Dow Jones
Monday October 20, 6:09 PM AEST
Malaysia AirAsia: FY03-04 Traffic To More Than Double
KUALA LUMPUR (Dow Jones)--Malaysian budget airline AirAsia expects its passenger traffic to more than double to 3.4 million in the year ending June 30 from 1.45 million the previous year, Chief Executive Tony Fernandes said Monday.
"We have exceeded our target in the first three months (of 2003-04) as our load factor was 84% versus our budgeted 70%," Fernandes said on the sidelines of a conference for airport operators.
He also said AirAsia will have 20 airplanes - all Boeing 737 models - by end-2004. Of these, four are purchases, while the rest are on lease.
Asked whether the carrier will issue bonds to finance its new planes, Fernandes said, "No, we don't have the track record for a good (bond) rating."
He declined to say how the company will finance its purchase of planes but said an announcement on its funding arrangement will be out Thursday.
Fernandes also said AirAsia - the region's only budget airline currently - isn't fazed by news other budget carriers may soon fly in Asia.
Singapore-based Valuair is starting operations in the second quarter of 2004, while Thai Airways plans to set up a no-frills carrier by early next year.
"We are only worried about cost," Fernandes said, although he noted AirAsia has the world's lowest cost base.
On his airline's expansion plans in the region, Fernandes expects the carrier to target Indonesia and Thailand "hopefully" by the year-end.
AirAsia recently won landing rights for Thailand's Bangkok and Phuket and Indonesia's Bali.
He also downplayed fears AirAsia is competing with Malaysia's flag-bearer Malaysian Airline System Bhd. saying, "We haven't affected MAS's (Malaysian Air) markets one bit. We are creating a new market."
AirAsia has fares as low as 1.99 ringgit ($1=MYR3.80) one way from Kuala Lumpur to Penang.
The company was taken over by privately-held Tune Air Sdn. Bhd. in late-2001.
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Last edited by Wirraway; 21st Oct 2003 at 15:39.
