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Intense battle for Asean skies - Challenging year shaping up for aviation industry .By B.K. SIDHU http://biz.thestar.com.my/news/story.asp?file=/2008/11/15/business/2556188 PETALING JAYA: Competition is expected to heat up in the region’s aviation industry as airlines gear up for the opening of the sector in Asean capital cities by Jan 1 next year. A hot route will be the once protected KL-Singapore where nearly 10 airlines are going to slug it out for a bigger share of the lucrative market. “We do not expect a big bang for the opening of the Asean capital cities as it is already a vibrant air sector. The real excitement will be on the KL-Singapore route (where competition will be keener on the sector),’’ Standard & Poor’s Equity Research aviation analyst Vincent Ng told StarBiz. Although the KL-Singapore route has been open to limited competition since early this year, additional frequencies of up to 180 new weekly flights can be expected when it opens up earlier on Dec 1. AirAsia, Jetstar, SilkAir and Tiger Airways are expected to join in the fray for passengers on the high-demand route. The established carriers plying the route are Malaysia Airlines and Singapore Airlines. Fares will come under pressure as the date draws nearer. Certainly, a very challenging year is shaping up for the aviation industry as the full impact of the global economic downturn spreads. Liberalising the sector means Asean carriers can mount unlimited flights between the capital cities but bilateral arrangements will also need to be hammered out. The opening of the KL-Singapore route is the first leg of the opening of the air sector in Asean which eventually leads up to a unified regional aviation market by 2015. Even MAS’s new carrier, Firefly, is hoping to be part of the action. It already flies to secondary airports in Thailand and Indonesia but what it is eyeing is a slice of the KL-Singapore market. The carrier is hoping the Government will give it the rights to ply the Subang-Singapore route. “Many of our customers are asking for it and for us it is about convenience and adding value to our offerings. Allowing us to fly the route will complete the network. “We have submitted our application and remain hopeful of getting three to four daily flights on the Subang-Singapore route,’’ Firefly Sdn Bhd managing director Eddy Leong said. While airlines are working out their strategies to take advantage of the Asean Open Skies policy for capital cities, Singapore has already made the first move. It has launched the ViaSingapore.com website, a one-stop shop offering travellers “best” air-fare deals to go to Singapore and beyond. It is a proactive step which enhances Changi’s attractiveness as an air hub with its extensive connectivity. But more importantly, it shows Singapore is moving fast to become the gateway of Asean as the region’s aviation sector opens up. I wonder how will MH weather the competition, after all these years of pampering they have to start to walk on their own 2 feet even on home turf. Will the Government delay the open skies agreement (just like the automobile industry)......

Transparent air fares – consumers’ right http://biz.thestar.com.my/bizweek/story.as...amp;sec=bizweek THE time is right for Malaysia to implement an all-inclusive pricing for the airline sector.But it has to be strongly regulated so that all airlines follow the rules. It would be healthy for the industry and good for consumers as travellers will no longer be hoodwinked into exhorbitant fares. Airlines are always advertising their fares. Some fares are advertised at misleading rates as they are without the taxes, administrative charges and even fuel surcharges. But when you add all the extras in, the actual price of the ticket varies drastically from what is advertised. Invariably the travellers end up paying much more than what was advertised. Take the example of a RM10 fare offering. No doubt, it looks attractive and it is savings for the consumer to pay only RM10 for a fare to a certain destination. But when you actually add on the extras such as fuel surcharge, taxes, administrative fees and so forth, the RM10 fare would have swelled to say RM150 or even RM200. This is grossly misleading the customer. The time is right to accord more clarity for consumers who are generally feeling the pinch of the credit crunch currently. People are more conscious of their spending power and are keen to look for value deals. Airlines can help travellers find the best deals easier if the packages come with an all-in pricing. All inclusive pricing means what you see is what you pay for. There are no hidden charges, no extras as all the other permutations of fuel levy, taxes, insurance and administrative fees are lumped into one pricing so that when a fare is advertised, it is the actual fare for a trip from one point to the other.Having the add-ons only serves to confuse the customer. Transparency should prevail as this will make it more convenient for the traveller to make his purchasing decisions. Singapore implemented an all-inclusive air fare pricing regime on Nov 1. All travel advertisement in that country must include the true cost of travel, including add-ons like airport taxes and fuel surcharges. This allows the traveller to know at a glance how much his air ticket will cost. This new ruling is issued by the Advertising Standards Authority of Singapore. The European Union is in the process of implementing an all inclusive pricing. New Zealand was the first country to introduce the all inclusive pricing for air fares and now it is even mandatory in Australia.Air passengers in India are demanding that airlines be more transparent in their fare pricing and not mislead consumers with cheap offers in their advertising blitz. These are some of the countries that believe customer protection is key. They do not want travellers to be misled by very cheap air fares. All-inclusive pricing can be for one-way or return trips and it allows the customer to chose the deals that best fits his budget. In Malaysia, the Malaysian Association of Tour and Travel Agents (Matta) has been pushing for an all-inclusive pricing concept to be implemented. To be fair, they just started on it and even though some airlines have implemented that on some sectors, it is generally done on an ad hoc basis. What is needed is a mandatory regulation for all airlines operating in this country. Whether it is the Government who should mandate it or the advertising association, it must be done. The Malaysian traveller cannot be allowed to be duped into exhorbitant pricing for long. And what the Airline bosses say about it : - http://biz.thestar.com.my/bizweek/story.as...amp;sec=bizweek Datuk Seri Tony Fernandes Group CEO of AirAsia Bhd “That is a new thing and it is the right way to go. We at AirAsia are studying the possibilities to include the administrative fees into basic fares. (AirAsia abolished fuel surcharges over the week). Such a move will make consumers better understand the fare structure. But we certainly are not going to include taxes in our pricing. That has to remain separate as some airport charges are very high and that money in airport taxes do not go to us.’’ Kavin Martinus Country Manager for Malaysia Jet Airways “We started offering all-inclusive air fares for our KL-Chennai flights the past two weeks. This all-inclusive air fare is only for the Malaysian market and is not system-wide at Jet Airways. Jet has not implemented any such strategy for other markets. We are trying it out and if need be we will take the step forward to have all our air fares inclusive of all charges as there is clarity in the pricing for the consumer. Just at a glance, the consumer will know how much he (or she) will pay for his journey.’’ Datuk Bernard Francis Senior general manager sales Malaysia Airlines “We are keen to have all-inclusive air fares but it should be across the board. If every airline does it, we would also follow. We have had some promotions with all-inclusive air fares and found it to be very popular. It is a requirement in some countries but not in Malaysia. The consumer will benefit as he will know what they are getting in ringgit value when they purchase an air ticket. That would be the price they pay for the entire journey and it is important not to mislead consumers with all kinds of sales blitz.’’ Couldn't agree with this direction more!

Penang is a destination and KL a stopover in the reverse during the heydays! In all fairness, Penang - London was then viable, (which they were slow too anyway, foreign airlines were already starting to fly to Penang) - that is until Tourism Malaysia and (including the Penang State Govenrment then) slacked and started their neglect..... Phuket and Bali (which are better known) are better promoted constantly by their respective Tourism Authority of their country.... Bali - despite the bombing, their recuperation is speedy. Given - If Bali and Phuket were neglected by their respective countries, it will share the same Penang fate! Past glories - come winter months, tourist belts in Penang are full of British, Germans, Dutch, Europeans not to mention Taiwanese, Japanese..... Now its only prominent (NO! "too good to be true") noticeable sight during summer (Mid East) and Christmas weeks - Europeans...(which is slacking as well) second silicon valley after San Jose-US, Gone are the days when CX did 2 daily flights, SQ with more than 3 flights, EVA Air flight direct to Penang, Ryanair charter flights in winter... I hope she realize it not as simple as more than 2 flights daily to beef up tourism... instead of criticizing a destination being dirty, bring in more tourists...

Penang is a top destination for British tourists, so don't be surprised if she says Penang being dirty and has scared the British tourists off... Although I like the PG's CM answers on her raising the issue of the island being dirty..... http://www.theedgedaily.com/cms/content.js...8402c0-e459245e The A380 will do the job nicely now....

will they ever learn that companies are best left to be managed by their rightful corporate leaders with the unpolluted aim of generating revenue in the best interest of the organization - instead of intrusive hands... She trying to prove that MH is so dazed that they cannot identify routes that needs extra capacity?

CX, MH or any legacy airlines will not compromise their standard or services even when it is chartered to LCCT. (Don't tembak/shoot me with MH though !! ) Passengers are lucky to benefit from the positive difference from the charter (provided their flight schedule is not badly affected)... hopefully D7 will weather this storm and not end up downsizing like TuneMoney....... Perhaps Airbus will also be partly responsible! but then again there should be insurance...

strange that they don't charter from MH... but then again there must be a reason, I wonder why? Is this for real - low cost yet they are chartering from CX, how does it work - do passengers check in at LCCT then are ferried to KLIA to embark on to the aircraft or is CX's aircraft parked at LCCT for passengers to embark???

remembered seeing on TV in China, a bloke was arrested and shown all over Chinese tv for stealing life jackets from the aircraft he sat on. also on the other side there are airline crews who offloads stuffs too, pilferage is part of business loss.

You will love this even more - check out today's star newspaper - 2 full page advert by MAS rebuttling LCC's price against theirs... (WTF-full service fighting with LCC) I guess with all the AK "jibing MH" ads everywhere, including the bright red LCCT - Sentral buses all over KL city... MH is pissed

i think grandpa knows a lot about aviation than normal peeps do... he can cite sq's crash, fleet age and safety records, state of russian aircrafts, he may be a hidden aviation enthusiast! AK's marketing "new airbuses" pitched to that newer aircrafts meant better comfort - kinda like new cars with their "plastic" smell against older cars. This edges AK up a notch against older MH's aircraft... Non aviation enthusiast look at A380 as a new biggest aircraft in history, a new model, a new sensation - with all the hype and news involving throughout the development of the 380 - though negative at a lot of point but it did create a sensation and definitely a lot of attention even to non aviation enthusiasts. SQ's marketing definitely had the foresight of this milestone and rode on it. Definitely concur with you on fleet age as an important factor for any airline. I look forward to seeing mh's 738 with their graceful winglets gracing out skies soon !!

with all this - should we also think of the "not interested in aviation" folks? There are lots of people who don't give a hoot on what type of aircraft they fly in even though they fly long haul a lot, all they care is - comfort, catering, connection, service, airline, ground and onboard, lounges, ffp's etc... Dare I say those type of travellers will outnumber us!! It kinda shows that it's us folks here that are critical that a good airline must always have the newest and best"est" aircrafts in fleet. (some of us even choose to fly on certain type of aircrafts when making travel decisions) , not touching in details like noting aircraft rego,when manufactured, engine type, and bla bla bla(to a lot of people).... marketing is paramount, but without the product and services to substantiate your marketing plans - it's a given flop especially for hospitality industry or for any industry for that matter. Marketing will bring success only if substantiated with the products they market/promise... MH is definitely lagging because the SQ is glistening in glory and success continously, (in comes SQ's signature "many firsts"..., newest aircrafts) Once upon a time, they were once a part of each other and then they divorced - back then MH was a strong and equal contendor to SQ. This is only comparing to SQ because of past links.(Not going into details on comparison with other airlines of the same legacy......) With the current gap - it will need more than just new aircrafts for mh to bounce back.... (already ppl are wary against 10abreast seating in a new 77w aircraft - goes to show new aircraft is not everything...) but it's important to us folks and keyboard chairmans/ceo's/advisors in here!!

PTVs in narrow body.... never sat on a narrow body airliner with PTV's before - the most was Drop down screen... with all being said, Jet Airways and Kingsfisher even with their PTV's in narrow body is not doing too well, merged to fray meltdown - maybe there is virtue in MH not having those PTV's (but no virtue to us as a passengers!!) En Norman, thanks for the nostalgic photo of MH... it does bring back memories.... those aircraft lived on to eighties as well I remember.I am trying to reminisce those days (when I was very young) I could only remember sandwiches being served on short flights and stewards with songket lapel jackets...(it made their lapel looks big and easy to remember!!)

i found a spot driving around the area, it's right exactly where the rotation of the aircraft - if the take offs are from 04. but it in front of people's house though ! will let you know when I am back in penang... see the pro blush !

good one James, there goes their safety record.... but on the serious side - my heart goes out to the injured.....

wilson when I am back again in pg, can pm you when you spot? must watch the pro in action? Don't forget to bring your trademark "kerusi merah"

airport terminal does not offer much of views, very limited viewing options there, even take off and landing is quite far on both extreme sides... the next best option is the Rapid bus stop, but I do not know which bus to take, maybe some of our penang "lang" can assist... anyone tried the spots alongside the bayan lepas highway (near the airport porridge/half boiled eggs/toast kopi tiam?) if there is any there since it's people's houses lining the area?

Didn't know that AK has gone to London already as reported by the article ?? SEPANG: Having made a successful foray into the European market via London, low-cost carrier AirAsia is now looking at the United States and Africa. Why not Hawaii - Jetstar flies there from Australia! Tourism is big there,they are successfully poised and a lot of countries tries to emulate hawaii in making themselves into a destination, we(m'sia) tried once also. We may have better beaches, better corals and diving sites here but we lag in the line "world famous tourism destination" and the diverse landscapes, imagine - beautiful beaches, endless breath taking mountains and cliffs everywhere, active volcanoes as a national park, and of course surfing..... (to name only a few)

gosh! Naim thanks for the link on the video - just look at the roof panels inside the cabin! The injuries and the pain the passengers had to go through. I hope they are all being well taken cared of through recovery... It goes to show - always always always, keep your seat belt fastened when seated...... "once famous safety record" a good way of putting it, notice an opportunity to blame here - due to outsourced technical operations to ......

no worries Wilson, the rest of your other pics are nice enough !! yeah weather was "under the weather" before landing ! nevertheless - garang look lo with the equipment and ready pounce stance!! well done!

i recognize that paint grazing off - its from sriwijaya or kartika 737....... Oh, En Norman orang utara juga, Hope your Raya Holidays was fabulous.....

hehheheh, so it was you! do show the shot - must be a killer shot since you were in "ready to pounce" position when i saw you....

i came in yesterday on sq192 (9v-svg)- 9ish am touchdown - saw a spotter rapid bus depot on a red chair wearing yellow t-shirt..... I had a big grin - it reminds me of me (minus the high tech cameras though !)

just saw this post, It's a beautiful airport - Now its comparable to KLIA, comparing it to Penang International - miss world (KK) against plain jane... the interiors are very KLIA-ish, right to the check in aisles, ceiling, lightings, glass walls and fixtures... new pride of Kota Kinabalu! nice shots Samuel... thanks for the insight views (including airline offices) on KKIA, your pictures and description makes it a "must visit soon..." hehehhe!!!

precisely, I thought it was some spooky sightings,turn out to be scarier with 2 armed men and dogs... arrgh!!! can have inidication as to normally what time and when do you guys go spotting ?

wah, Simon reading your continuing posts on what you saw is very "suspense" la....... slowly, one post by one post..... at the back of my mind, I thought it was some spooky stuff....... when i am back in kl, I will try to endavour to join in the spotting, tapi malu la.... you all arm with bmw / mercedes type of camera...... then I bring out my compact kapchai ixus...... !!! May I ask who can I pm to ask to join in the spotting ??