flee

Great factual and comprehensive reply, Azizul. I only have these points to add: 1 What is national interest? Does national interest equate only to MH's interests? What about D7's and the rest of the Malaysian economy? Statistics have shown that wherever D7 flies, it actually increases passenger traffic into the KLIA LCCT hub. The AirAsia group airlines have grown passenger traffic at KLIA whereas MH did not do much. If there was no AirAsia between 2001-2010 KLIA would probably report losses in operations because MH clearly did not provide as much growth and actually shrunk during the last recession. Is that in the national interest? 2 FAX is history now - we keep hearing what a big disaster it was. However, we did not look at what positives came out of this. Their failure alerted to govt. to provide more resources to the RAS as what was provided previously was clearly insufficient. As a result, we now have MASWings, a far far superior service compared to the old services provided by MAS or FAX. On top of that, we now have much better air services from the peninsula to Sabah and Sarawak - more frequencies at more reasonable costs. BKI is developing into a regional hub and KCH indirectly benefits from that too. 3 Why is it that when D7 applies for routes, MH must approve or object to it? Shouldn't the case be considered based on normal aviation criteria rather than the criteria of another airline? Why is MH spending its energies trying to compete with D7? Why is it not chanelling its efforts into making MH a world class full service carrier? As Azizul has said, the govt. must make efforts to ensure that both MH and D7 becomes the best airlines in their respective market segments. If either of them fail, the main beneficiaries will be those airlines based in Singapore.

Azran's Tweet:

(SINGAPORE) The number of passengers handled by Changi Airport increased 15.9 per cent year on year in the first eight months of 2010. The tally for August rose 9.6 per cent to 3.47 million passengers, taking the number for the January to August period to 27.4 million. The latest number underscores the recovery in air travel that began in August 2009, when passenger traffic increased 0.5 per cent following almost a year-long slide. Passengers to and from North-east and South-east Asia continued to lead growth in August this year, rising by double digits for a seventh straight month. Singapore's Tiger Airways, Indonesia's Lion Air and Hong Kong's Cathay Pacific increased frequencies, with more flights to Bangkok, Hong Kong, Jakarta and Kuala Lumpur. The National Day long weekend also contributed to passenger growth. Air freight through Changi grew 9.7 per cent to 155,000 tonnes in August, taking the figure for the first eight months to 1.19 million tonnes - up 15 per cent from 2009. There were also 22,368 aircraft movements in August, up 9.1 per cent from a year back, and taking the January to August total to 172,971 movements - up 10.4 per cent from 2009. The bullish numbers coincide with the latest forecast by the International Air Transport Association (Iata), which pegs the global airline industry's profit this year at US$8.9 billion - a sharp turnaround from last year's US$9.9 billion loss. Iata expects Asia-Pacific airlines to lead the charge by chalking up a combined profit of US$5.2 billion this year. Changi - one of the world's top airports - serves 96 airlines operating 5,100 scheduled flights a week that connect Singapore to over 200 cities in 60 countries and territories. Late last month, the airport welcomed its sixth Chinese carrier, Hainan Airlines, which operates four flights a week connecting Singapore with Hefei and Dalian in China. Hefei is a new city link in Changi's network. Last week, Changi also welcomed a new cargo carrier, Tri-MG Airlines, which operates 20 flights a week to and from Jakarta and Balikpapan. Source: http://www.businesstimes.com.sg/sub/shippingtimes/story/0,4574,405228,00.html?

Yes, they do listen to feedback and investigate matters if there is a need to do so. They need to continue to improve their web and kiosk check in to make it more reliable, pervasive and accessible at all their airports before they think about doing this again.

Surprise, surprise, AirAsia has postponed this plan indefinitely...

Not just exchange rates - I mentioned in my post Airport Taxes are getting ridiculous too. Just look at what the UK charges here: http://www.hmrc.gov.uk/pbr2008/pbrn20.pdf

ROUTES: Kualu Lumpur Airport bullish on growth Kuala Lumpur International Airport (KLIA) is again seeing double-digit traffic growth, driven by continued growth at Malaysian low-cost carrier AirAsia as well as by legacy carriers. "Previously we saw a lot of growth from the low-cost side. Now we see more balanced growth from both sectors, which is good," says Malaysia Airports general manager of marketing Sallauddin Mat Sah. "Full service is poised to take advantage of the recovery in the industry." In the first half of this year, KLIA handled 16.2 million passengers, compared with 13.5 million for the same period last year. Sallauddin says flag carrier Malaysia Airlines is growing again and KLIA also has secured this year three new airlines - Iran's Mahan Air, Oman Air and Royal Jordanian. In 2009, two carriers - Air Zimbabwe and Air Astana - launched services to Kuala Lumpur. Sallauddin says for many of these new carriers, important meetings took place during the 2008 World Route Development Forum, which Kuala Lumpur hosted. "What Routes Kuala Lumpur has done is we were able to showcase what the airport and city can offer. Now all airlines of the world have better understanding of what a destination Kuala Lumpur is," he says. At this year's forum, Malaysia Airports again has a big exhibit and a large delegation consisting of more than 20 employees, including its chairman and managing director. The company last month celebrated the groundbreaking of a new low-cost terminal in Kuala Lumpur, which is now scheduled to open in April 2012. Salluaddin says the new terminal, which replaces a cramped temporary low-cost terminal, is "meant to cater to AirAsia's requirement because they have a larger growing fleet". But it will also be open to other carriers. The new low-cost terminal will be connected to downtown Kuala Lumpur and the main terminal by rail. Sallauddin says there will also be an airside bus connection between the two terminals. He says Malaysia Airports also plans to introduce early next year an airside bus service connecting the temporary low-cost terminal and main terminal. Currently passengers connecting between the two terminals have to endure a 30 minute drive and the KLIA Express Train does not serve the low-cost facility. Sallauddin says Malaysia's second-largest airport, Kota Kinabalu International, is also growing fast. He says a runway project at Kota Kinabalu will be completed early next year. At about the same time the airport's temporary low-cost terminal will be closed and AirAsia will move to the main terminal where he says there is plenty of room to accommodate AirAsia's fast-growing Kota Kinabalu hub as well as other growth. "It will result in better service for passengers," he says. The growth in Kinabalu is being driven mainly by new services from China, Korea and Japan, as the Malaysian state of Sabah "has become a very popular leisure destination". Source: http://www.flightglobal.com/articles/2010/09/21/347576/routes-kualu-lumpur-airport-bullish-on-growth.html Well I did say over the long term... Right now, even the A380 cannot do KUL-EWR direct with max pax carried. So a longer range aircraft will still be needed.

AirAsia may fan price war with cheap Tokyo flights Tue Sep 21, 2010 6:02am EDT * Offers 5,000 yen tickets between Haneda and Kuala Lumpur * Aims to increase flights to daily from 3 a week - CEO * May expand further to Osaka, Fukuoka, Sapporo - CEO By Antoni Slodkowski TOKYO, Sept 21 (Reuters) - Malaysia's AirAsia (AIRA.KL), the first international budget carrier to fly to Tokyo's Haneda airport, plans to kick off service with $58 flights between Tokyo and Kuala Lumpur and said it could expand to three more Japanese airports. In a move that could pour fuel on increasing price competition over Japan's skies, the 5,000 yen flights are on offer from December until July next year, after which prices will start at 10,000 yen ($116), with premium lie-flat seats costing 48,000 yen. That compares with current prices of around $650 to $2,000 for the same route from airlines such as Japan Airlines (JALFQ.PK), All Nippon Airways (9202.T), Malaysian Airline System Bhd (MASM.KL) and Cathay Pacific (0293.HK). The pricing comes on the heels of tickets between Shanghai and Japan's Ibaraki airport, 85 km north of Tokyo, for as little as 4,000 yen from China discount carrier Spring Airlines. Until recently, low-cost airlines had found it difficult to expand to Japan due to high labour costs and limited slot availability at key airports. But Haneda, which is closer to central Tokyo than Narita International, Japan's major international airport, will open a fourth runway next month while a new "open skies" pact will cut government restrictions on airlines to flying in and out of Japan. "The power of Haneda is its very strong domestic network, with dozens of flights to Sapporo, Osaka, Fukuoka ... and its very central location thanks to which it already has a strong cargo operation that we can tap," Azran Osman-Rani, chief executive of AirAsia X, the carrier's long-haul unit. "We could operate in at least three different airports in Japan, just give us a couple of years as airports like Fukuoka, Osaka and Sapporo are all places that we have a strong interest in," he added. The Tokyo-Kuala Lumpur flights will use Airbus (EAD.PA) A330 aircraft and the company hopes to eventually offer flights daily from an initial three per week. The incursions by budget carriers into the Japanese market have prompted Japan's No.2 carrier All Nippon Airways to announce a plan this month to start a low cost carrier to fly between Japan and China in partnership with Hong Kong-based private equity firm First Eastern Investment Group. [iD:nTOE68807K] Japan Airlines has also said it would look at creating a low-cost carrier. Source: http://www.reuters.com/article/idUSTOE68K00Z20100921

Well the reason why the A333/A332F were chosen is so that MH can compete better in the Asia Pacific regional routes. This is the fastest growing region for both passenger and cargo traffic. This is MH's immediate focus for the next few years. European routes are not that profitable as Europe has become a highly expensive place to visit. This will be further compounded by the imposition of punitive airport taxes in many EU countries. In the longer term we might even see MH using the Middle East for their flights to the US. E.g. KUL-JED-EWR. This kind of routing may require the A380/B77W/B789/A359 aircraft. That is why MH is pausing for a while to take stock of the aviation industry trends. Lets see what they do next...

Cathay firms up order for 6 777s Cathay Pacific firmed up its previously announced commitment for six more 777-300ERs worth HK$12.5 billion ($1.61 billion) at list prices (ATW Daily News, Aug. 5). This order would bring to 36 the number of 777ERs in its fleet, comprising 18 aircraft in service and 12 aircraft scheduled for delivery from 2011 to early 2013. The six newly purchased 777-300ERs will be delivered in 2013 and 2014. CX CEO Tony Tyler noted at the signing that the 777-300ER is a “superb aircraft” that has already significantly enhanced operations on key long-haul routes. “We have been very impressed by the operating economics of these aircraft, while their high efficiency has resulted in a reduced environmental impact. As we continue to enhance our fleet, the 777-300ER will play a crucial role in our operations in the years to come,” Tyler said. CX operates a fleet of 128 wide-body aircraft, which also includes 12 777-300s, five 777-200s, 22 747-400s and 25 747-400Fs. The airline has 10 747-8Fs on order for delivery in 2011 and firmed up a commitment for 30 A350s last week (ATW Daily News, Sept. 17). Source: http://atwonline.com/aircraft-engines-components/news/cathay-firms-order-6-777s-0921

Yes, this sector needs a quad. So, I really wonder what equipment MH will deploy after they phase out the B744s.

I don't think that matters to him. What class will he be flying if he took AK on a 50 min flight to SIN? When he is in the EU, he gets on EasyJet flights after he arrives in STN on D7. So I don't think he is bitching about whether he has Enrich points or not... I think that he is trying to emphasise that he had to pay RM 600, whereas on other airlines, he gets a courtesy seat as CEO of another airline. He is also bragging the MH service ain't that great compared to his All Stars service...

Here are some photos of the real planes, judge for yourself!

It looks like the new A333s are really for the Asia Pacific regional routes. MH will take the B777 off these routes and supplement the A333 services with B738 services to increase frequency. As for loss of cargo capacity, this is where the A332F will fill in the gaps.

The return fare is RM 312 - so there is a massive difference between the outward flight at RM 99. Looks like a return trip with luggage, meals and insurance will come up close to RM 600 per pax on this introductory offer. With D7 the introductory fares are usually their cheapest because they don't pull cheap "zero" or RM 1 seats sale tricks very often.

You are just looking at the planes, and not the whole business operations. Whilst I agree that new aircraft tend to have better performance and economics, MH also has other things to consider - e.g. MRO operations and staff retraining and certification. Financing terms for aircraft differ. Price tags also differ. So the aircraft cost is only one part of the equation. There are other associated costs that go with the choice of aircraft too. Perhaps that partly explains why the PW4000 engine was chosen for the A330-300 and A330-200F orders this year. According to Airbus the following are the range limits of aircraft: A330-200 - 12,500 km A330-300 - 10,500 km

Should never discount anything in the market, even used (but cheap to buy) aircraft. And also should re-evaluate own fleet and requirements for the network. Not a simple matter. That is why airlines take some time to decide and those who are unsure will hedge their bets, using more than one type of aircraft. Running an airline is not just playing with planes only - there are a lot of other things to consider. Example, D7 needs more A340-300 for its European routes. However, existing lease rates are not favourable to make their economics work. So they have to modify their network plans. Looks like they are no longer so interested in developing the European network until their A350's arrive or until such a time when a good lease deal is available for the A340. Buying or leasing planes require long term commitment to make it work. You cannot just throw a plane away if it does not meet with your requirements. So it has to be carefully evaluated.

To me TF's tweets are just reporting the situation. But yes, he is a show off in such situations - I remember he did the same when he could not get on the KUL-STN flights and had to go by SQ instead. But SQ treated him better in that episode... But my main intention of posting the Tweet was to show that AirAsia is not for everybody. So, fly on the airline that most meet with your requirements.

Big difference is that these two think big and have the financial muscle to do so. MH is puny in terms of financial resources and needs taxpayer bailouts... No mistake - the latest delay meant that the first A380 will come in 2012 instead of 2011. Maybe they are tagging AKL to BNE services. Perhaps, but MASKargo is at a stage where they will be no longer have any of their own planes, if they do not order anything now. A330-200F is perfect for the role of regional cargo missions - MH is doing roaring business right now and they want more capacity. B747 is a bit too big for these missions as frequency is important too.

Moshi Moshi, The flight you have been waiting for is here: We are flying to Japan and the fare starts from an amazing RM 99! Your experience with us in the Land of the Rising Sun begins at Tokyo's Haneda airport. We're sure you're already imagining yourself skiing down Mount Fuji, being captivated by rustling Sakura trees and enjoying delicious servings of sushi. Of course, there's so much more to look forward to. Geishas, harajuku culture, Cosplay, fantastic toy stores, super-slick architecture... the list truly is endless! Book your seats now and fly with us to Japan starting 9 Dec 2010! http://www.airasia.com/nl/nl100921d35z_my.htm

If real performance numbers fail to meet claims they will have to re-evaluate what is available and re-do the costings and investment appraisal sums. Look at CX, they are seldom on the leading edge when it comes to aircraft purchases. But they do their sums diligently and take little risks. They even buy second hand aircraft. They do what makes sense to them. They do not follow others blindly. That is why they make tons of money...

They may be waiting for some real operational numbers from the launch operators of the planes. Right now all we have are paper calculations.

Tony Fernandes' Tweet: Moral of the story - not everyone can fly AirAsia, especially those who cannot plan their travels well in advance and need to do last minute bookings.

AirAsia X CEO: To Begin Tokyo Haneda-Kuala Lumpur Flights Dec TOKYO (Dow Jones)--The low-cost long-haul arm of AirAsia will begin budget flight services between Tokyo and Kuala Lumpur from December, becoming the first foreign low-cost carrier to use Tokyo's downtown Haneda airport. Air Asia X is targeting "young Japanese who want to visit (but) haven't been able to ... because of the (current) high fares," AirAsia X Chief Executive Azran Osman-Rani said at a press conference in Tokyo. Earlier this month, All Nippon Airways Co. (9202) said it will launch a low-cost carrier next year with other partners, including Hong Kong-based private equity fund First Eastern Investment Group. The new carrier will have short-haul routes out of Kansai International Airport in Osaka, western Japan.