Air Asia's end is near?
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Not all is bad
There has been numerous inevitable comparisons of MAS and AA in this forum, more so since both are competitors, but I felt that comparing micro events in isolation to make sense of the beat in both the organizations often takes off at a tangent and often misses the central point, ‘presence or absence of adequate management leadership’.
We are what we are today for better or for worse is because of the leadership we were under. My opinion explored a plausible explanation so that we can move on. GTR-34, I would like to think that the government has put MAS on the right track. No carves. Remember, a 30+ year odd old culture is hard to unwind. On a fast track it may require a revolution which would certainly cause an upheaval in the organization. The MSS/VSS is one product of it. Mr, Idris Jala has his vision and has fought hard get things his way and has shown his determination in recent battles. There a lot of good people in his organization. Some of them share the constructive opinions in this forum.
AA started off with a clean slate. With some good help Tony sculptured the culture required for his model to survive and grow. He too is a determined battleship. There is no doubt he draws mostly admirers and some detractors.
As an observer on the sidelines it is interesting to see the two brands fight their cold war. It is an indication of the vibrancy of the brands and their leadership. Imagine if they were to cooperate and take on the rest of the world. The competition is out there-global. My best wishes to both of them.
We are what we are today for better or for worse is because of the leadership we were under. My opinion explored a plausible explanation so that we can move on. GTR-34, I would like to think that the government has put MAS on the right track. No carves. Remember, a 30+ year odd old culture is hard to unwind. On a fast track it may require a revolution which would certainly cause an upheaval in the organization. The MSS/VSS is one product of it. Mr, Idris Jala has his vision and has fought hard get things his way and has shown his determination in recent battles. There a lot of good people in his organization. Some of them share the constructive opinions in this forum.
AA started off with a clean slate. With some good help Tony sculptured the culture required for his model to survive and grow. He too is a determined battleship. There is no doubt he draws mostly admirers and some detractors.
As an observer on the sidelines it is interesting to see the two brands fight their cold war. It is an indication of the vibrancy of the brands and their leadership. Imagine if they were to cooperate and take on the rest of the world. The competition is out there-global. My best wishes to both of them.
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As long as there are still some hidden hands behind the scene, it is quite difficult to reform the whole airline industry in Malaysia, let alone to bring MAS to the same level as CX and SQ (just to quote a few). 
If only we could separate between political cum financial interest and business interest, things could be different. Just a thought.
If only we could separate between political cum financial interest and business interest, things could be different. Just a thought.
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UL 501
You confirm that AA is diversying its business and does not depend solely on Malaysia.
Malaysian should look around themselves. The issue is not between MAS and AA. AA has overpassed this stage.
You confirm that AA is diversying its business and does not depend solely on Malaysia.
Malaysian should look around themselves. The issue is not between MAS and AA. AA has overpassed this stage.
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AA wants everything but the problem is that they can't even handle themselves here in m'sia. Even Bonus is delayed from last year end till next month according to sources and with more and more delays everyday. IMHO, i think AA should fix their internal problems before expanding out too fast. But the good thing is AA is employing locals and foreigners at a good rate and MH should give more opportunity to locals. Just my 2 cents.
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Air Asia opening new routes from Suvarnabhumi
Air Asia is no more only a Malaysian company. It is international with Thai, Indonesian and other share holders. What is happening in Malaysia is only one part of the story. Today Air Asia has announced the opening of new destinations from SUVARNABHUMI airport (New Bangkok airport). All experts are predicting than Suvarnabhumi is going to be the most important hub in SE Asia in front of KL and Singapore. Air Asia is in the race....
Do you know that Thai cadets are trained in Thailand to fly (Thai) Air Asia? there is not only the issue of Malaysian cadets. All the order of A 320 are not dedicated to Malaysia only but are going to be shared between the different components of Air Asia....
It is pathetic to see some people restricting the comparison to MAS/ AA ... They should look around....
Do you know that Thai cadets are trained in Thailand to fly (Thai) Air Asia? there is not only the issue of Malaysian cadets. All the order of A 320 are not dedicated to Malaysia only but are going to be shared between the different components of Air Asia....
It is pathetic to see some people restricting the comparison to MAS/ AA ... They should look around....
Last edited by ASIAN FROG; 29th Jul 2006 at 11:34.
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Bonus has been paid to AK staff last week. Or so I've heard.
People are just too uncomfortable with AK's rate of growth. I can't blame them as no one has seen this kind of success before especially since so many look down on AK since it started operations. No one thought they would survive because 'the domestic market is too small'. But they came in and created a totally separate market for themselves and making money from it. Admit it, AirAsia is responsible for making millions of people in Malaysia realise that MAS could and should do better. After nearly 50 years of existence and nothing much to show for apart from having the best cabin crew, maybe now we get to see MAS turn into an airline to be really proud of. Forget about egos. The smaller brother can sometimes show the bigger brother a thing or two about doing business.
AirAsia has showed what they could do the past 4 years. It is actually a start for them, not the end. Critics which forecasted them to fail in 2002 are still preaching the same now
People are just too uncomfortable with AK's rate of growth. I can't blame them as no one has seen this kind of success before especially since so many look down on AK since it started operations. No one thought they would survive because 'the domestic market is too small'. But they came in and created a totally separate market for themselves and making money from it. Admit it, AirAsia is responsible for making millions of people in Malaysia realise that MAS could and should do better. After nearly 50 years of existence and nothing much to show for apart from having the best cabin crew, maybe now we get to see MAS turn into an airline to be really proud of. Forget about egos. The smaller brother can sometimes show the bigger brother a thing or two about doing business.
AirAsia has showed what they could do the past 4 years. It is actually a start for them, not the end. Critics which forecasted them to fail in 2002 are still preaching the same now
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New airline for AirAsia?
BOONSONG KOSITCHOTETHANA
"AirAsia group chief executive Tony Fernandes (left) and Thai AirAsia chief executive Tassapon Bijleveld pose with an A320 full flight simulator at the AirAsia Academy.
Sepang, Malaysia _ The budget airline AirAsia may set up another low-cost carrier (LCC) in Southeast Asia as it prepares to acquire 30 additional Airbus A320 jets to bring its fleet to 130 by 2012. AirAsia group chief executive Tony Fernandes hinted about the plans during a briefing on the launch earlier this month of Fly Asian Xpress (Fax) and the signing of a firm order contract in July for 40 A320 aircraft worth US$2.7 billion.
''We may set up another [airline] in another country in Southeast Asia. But I cannot say too much now,'' Mr Fernandes told the Bangkok Post.
However, he said it was ''very likely'' that AirAsia would exercise the options to purchase 30 additional A320s, the basic agreement reached in July with Airbus, for delivery between 2010 and 2012.
Fax, which began to fly Malaysia's domestic routes in Sabah and Sarawak on Aug 1, is the fourth member of the group, which already includes Thai AirAsia and Indonesia AirAsia, in addition to its flagship carrier in Malaysia, AirAsia Bhd.
The new airline was created to take over the domestic routes in Sabah and Sarawak from Malaysia Airlines which is cutting back loss-making local services.
Barely five years old, the airline group surpassed the 20-million passenger mark in June this year. It offers 2,450 weekly flights in the region spanning 11 countries covering Malaysia, Thailand, Indonesia, Macau, China, the Philippines, Vietnam, Cambodia, Singapore, Brunei and, recently, Burma, with 44 aircraft.
Mr Fernandes was optimistic about the growth potential of budget traffic demand in Southeast Asia that would support AirAsia's expansion.
For this year alone, he sees the LCC traffic surge by 15-20%, spurred by aggressive marketing by budget carriers and low fares being offered.
Also as part of its expansion, AirAsia on Monday officiated the launch of two Airbus 320 full-flight simulators, valued at $10 million each, as it geared up to prepare pilots, cabin crew and engineers for its fast-growing fleet of A320 jetliners.
Plans are afoot to procure another three A320 simulators at its AirAsia Academy, its new flight-training centre near the LCC Terminal, part of the Kuala Lumpur International Airport.
The AirAsia chief noted that the group planned to retire its entire fleet of 737-300s, now numbered at 35, and replace them with brand-new A320s, configured to 180 seats, to make it an all-A320 fleet.
Commenting on last week's foiled London terror plot to blow up commercial airplanes, Mr Fernandes said the issue was unlikely to affect LCC traffic in the region.
''I don't think [there would be any effect]. We have been through so many terrors [and] the tsunami. We had Bali bombs right in our LCC territory. But we are doing better than ever in Bali.
''We have 500 million people in Asean and they are less worried about what's happening in the US or Europe. People still have to travel, they want to have holidays,'' he said.
However, Mr Fernandes stated that AirAsia still had to go on with aggressive marketing, offering low fares and a greater network to ward off outside factors from affecting future growth.
Regarding Airports of Thailand Plc's plan to set up a terminal dedicated for LCC at Suvarnabhumi Airport, Mr Fernandes did not see the Thai LCC terminal as competing with but rather complementing Kuala Lumpur's LCC terminal that opened earlier this year.
''They are different markets. The LCC terminal here won't really serve the larger part of the area that Thailand will. Thailand is further north, closer to China,'' he said.
''The LCC model is made for the three-hour radius. So from three hours, you can't cover many destinations from KL. The Thai LCC probably won't cover a lot of Indonesia. So each LCC terminal will have its strengths, creating more flights."
MAS an International local company, Air Asia a local International Company....
BOONSONG KOSITCHOTETHANA
"AirAsia group chief executive Tony Fernandes (left) and Thai AirAsia chief executive Tassapon Bijleveld pose with an A320 full flight simulator at the AirAsia Academy.
Sepang, Malaysia _ The budget airline AirAsia may set up another low-cost carrier (LCC) in Southeast Asia as it prepares to acquire 30 additional Airbus A320 jets to bring its fleet to 130 by 2012. AirAsia group chief executive Tony Fernandes hinted about the plans during a briefing on the launch earlier this month of Fly Asian Xpress (Fax) and the signing of a firm order contract in July for 40 A320 aircraft worth US$2.7 billion.
''We may set up another [airline] in another country in Southeast Asia. But I cannot say too much now,'' Mr Fernandes told the Bangkok Post.
However, he said it was ''very likely'' that AirAsia would exercise the options to purchase 30 additional A320s, the basic agreement reached in July with Airbus, for delivery between 2010 and 2012.
Fax, which began to fly Malaysia's domestic routes in Sabah and Sarawak on Aug 1, is the fourth member of the group, which already includes Thai AirAsia and Indonesia AirAsia, in addition to its flagship carrier in Malaysia, AirAsia Bhd.
The new airline was created to take over the domestic routes in Sabah and Sarawak from Malaysia Airlines which is cutting back loss-making local services.
Barely five years old, the airline group surpassed the 20-million passenger mark in June this year. It offers 2,450 weekly flights in the region spanning 11 countries covering Malaysia, Thailand, Indonesia, Macau, China, the Philippines, Vietnam, Cambodia, Singapore, Brunei and, recently, Burma, with 44 aircraft.
Mr Fernandes was optimistic about the growth potential of budget traffic demand in Southeast Asia that would support AirAsia's expansion.
For this year alone, he sees the LCC traffic surge by 15-20%, spurred by aggressive marketing by budget carriers and low fares being offered.
Also as part of its expansion, AirAsia on Monday officiated the launch of two Airbus 320 full-flight simulators, valued at $10 million each, as it geared up to prepare pilots, cabin crew and engineers for its fast-growing fleet of A320 jetliners.
Plans are afoot to procure another three A320 simulators at its AirAsia Academy, its new flight-training centre near the LCC Terminal, part of the Kuala Lumpur International Airport.
The AirAsia chief noted that the group planned to retire its entire fleet of 737-300s, now numbered at 35, and replace them with brand-new A320s, configured to 180 seats, to make it an all-A320 fleet.
Commenting on last week's foiled London terror plot to blow up commercial airplanes, Mr Fernandes said the issue was unlikely to affect LCC traffic in the region.
''I don't think [there would be any effect]. We have been through so many terrors [and] the tsunami. We had Bali bombs right in our LCC territory. But we are doing better than ever in Bali.
''We have 500 million people in Asean and they are less worried about what's happening in the US or Europe. People still have to travel, they want to have holidays,'' he said.
However, Mr Fernandes stated that AirAsia still had to go on with aggressive marketing, offering low fares and a greater network to ward off outside factors from affecting future growth.
Regarding Airports of Thailand Plc's plan to set up a terminal dedicated for LCC at Suvarnabhumi Airport, Mr Fernandes did not see the Thai LCC terminal as competing with but rather complementing Kuala Lumpur's LCC terminal that opened earlier this year.
''They are different markets. The LCC terminal here won't really serve the larger part of the area that Thailand will. Thailand is further north, closer to China,'' he said.
''The LCC model is made for the three-hour radius. So from three hours, you can't cover many destinations from KL. The Thai LCC probably won't cover a lot of Indonesia. So each LCC terminal will have its strengths, creating more flights."
MAS an International local company, Air Asia a local International Company....
