flee

Unfortunately we need to put much faith that everyone did their jobs properly. With old aircraft maintenance must be immaculate. If anything is not done to spec or procedures, the likelihood of catastrophic failure is higher since the other old consumable parts are more worn out or weakened.

When I read the result of the Japanese elections, all I was thinking of is "will Malaysia be next"? Azran's thought processes were different, though!

They already looked at these but the deal is not right - so they passed.

Now they are talking of commencement of construction in 2010 and completion in 2012. Looks like a more realistic timeframe than when they were claiming that they can do it in the time it takes to build KLIA East@Labu. Actually this (unsuccessful) design looks like it is more expandable.

Sept, Oct and Dec 2009. XXC is already on test flights bearing test reggo F-WWKI. The XL seats will be lie flat but the horrible 3-3-3 sliding seats will still be there. Unfortunately, only next year's deliveries will feature the better reclinable A320 seats that AK currently uses.

Aerotrain for LCCT - isn't that a bit too expensive?

MH might go for leased A333s and these will be replaced by A350s when they become available. I think they are better off copying SQ than D7...

AT Air Asia, everyone is part of one big, happy family. And everyone is also equal, or so it seems, as an employee’s name card simply states the division that he is in, without offering a designation. What you do is not as important as how well you do it. Air Asia may be a budget airline but work ethics are a big deal and no expense is spared to ensure its employees receive the best training and are happy to come to work – after all, smiling staff equals happy passengers! StarMag speaks to three people employed by the airline and it is pretty clear that all of them take pride in their jobs. Article here: http://thestar.com.my/lifestyle/story.asp?file=/2009/8/30/lifefocus/4500410&sec=lifefocus

Meanwhile AK has just taken delivery of another A322, 9M-AHT (on 19 August 2009). Airport space constraints will continue for the time being... http://www.malaysianwings.net/forum/index.php?showtopic=12913&st=40&gopid=236943entry236943

Well it is not easy being a Minister - you either have to stick to your principles and do a good job for the rakyat or you become a politician and make ill informed decisions good for your pocket! Idris Jala will soon find out which route he needs to take!

Actually the current LCCT layout is very practical and it even has a "corner" overflow apron so that planes can be parked there for non standard open air boarding... Looking at the new LCCT, additional outlying parking bays are not accessible by pax as it will involve crossing the primary aprons.

Yes, lets wait and see what the final design looks. Yes this LCCT looks like it is enclosed between the runways. So room for expansion might be limited.

Not that great cos pax have to walk long distance. The KLIA East@Labu had the terminal in the middle and the walkways on either side. Another thing to note is that no multistorey car park was provided. And what about transport interchange? How do the people get to KLIA Ekpress? And what about bus and taxi stands?

Hehehee, I am saying this in jest! What I meant was, although he is blind, he has more ability that many of us who are able bodied!

Condolences to his family. I think he is blind only, not OKU! His achievements are for all to see!

Yes, they have to account for everyone in case there is a crash, etc. If everyone is accounted for, the rescue workers will not need to endanger their own lives unnecessarily.

There projects are just like Malaysia's... bridges and roofs all fall down...

Press Release: http://www.airasia.com/site/my/en/pressRelease.jsp?id=4ff05666-7f000010-933cba00-a9ce88fd 25 August 2009 AIRASIA LAUNCHES DIRECT FLIGHT FROM KUALA LUMPUR TO CHENGDU, CHINA Fares from as low as RM 129 (CNY338) Sepang, 25th August 2009– AirAsia, the world’s best low cost airline continues to aggressively expand its China network by launching a new route connecting Kuala Lumpur to Chengdu, further strengthening its already vast network to China. The new service will be operated by AirAsia X, the low cost long-haul airline affiliate of AirAsia. AirAsia is the only airline to offer direct flights from Kuala Lumpur to Chengdu, which will begin on 20 October 2009 with four direct flights weekly. Attractive all-in-fares are offered from as low as RM129* (CNY338*) one-way and exclusively available online via AirAsia’s website at www.airasia.com or mobile.airasia.com. Booking period is from 26th to 30th August 2009, for travel period between 20 October 2009 and 31st July 2010. Ms. Kathleen Tan, Regional Head of Commercial of AirAsia said, “AirAsia has worked hard at building and crafting a strong China route network spanning the four corners and winds of China. Amassing strongholds in the Pearl Delta of the southern region covering popular destination choices of Macau, HongKong, Shenzhen, Guangzhou, Guilin, Haikou and by positioning Hangzhou as our Eastern gateway into the Yangtze Delta region, and establishing Tianjin with 30 min bullet train to Beijing as the access point to the Northern belt, it would only seem natural for us to complete our conquest in all directions by casting our sights to the west.” “Our China network has remained incomplete without a presence capable of unlocking the potential of travel to the western territories of China.It is in this essence that Chengdu, capital city to Sichuan province in China with its strategic location, emerged as the natural point of unlocking the Western catchments areas and thus completing our China route integration. With Chengdu now added on to our network, AirAsia can now boast that we have mainland China covered with 160 weekly flights,” she added. “Currently, there is no direct air connectivity between Kuala Lumpur and Chengdu and the journey of simply getting there via other means can consume a whole day’s worth of time. Home to the very living natural heritage of China’s Pandas, Chengdu has firmly positioned itself today with a more substantial façade and reputation of also being a thriving city riding the high economic and tourism growth waves. Our guests within Asean and China will now be spoilt for choice with the establishment of our strong China network in all corners and there is simply no better way to travel than with our amazing low fares. With rapid growth and aggressive expansion in these trying times, AirAsia aims to stay true to our brand promise that now everyone can fly to the four winds of China,” Kathleen said. Home to more than 10 million people, Chengdu is located in southwest China at the western edge of the Sichuan Basin and is the gateway to the Unesco World Heritage Site “Jiuzhaigou”, one of the most scenic places in China. This capital city of Sichuan province is known as one of the most important economic centers and is a major transportation and communication hub in China. Historically, it has played an important role in the political, economical, cultural, and military development of southwest China. The city is regarded as the starting point of the Southern Silk Road and is the gateway to the Tibet Autonomous Region. The surrounding region is famous for its three unique characteristics: Heavenly scenery, Bashu Culture, and home of the Giant Pandas. Azran Osman-Rani, CEO of AirAsia X said, “Despite the gloomy global economy, China remains an important trading and economic partner for Malaysia and the Asean region. The launch of this new route is expected to enhance the exchange of trade and tourism, and to strengthen the economic development of Kuala Lumpur and Chengdu.” Azran added that, “AirAsia and AirAsia X’s low fares and innovative services will also stimulate more travel both inbound and outbound from these two destinations. The Chinese public can also take advantage of Kuala Lumpur’s status as a gateway to get across Asia, Australia and Europe.” The Kuala Lumpur - Chengdu route is serviced by our Airbus A330- 300, which holds 383 economy seats including 28 Premium seats which have an impressive 60-inch seat pitch. For more details on flight times and bookings, please visit www.airasia.com or mobile.airasia.com. Stay tuned! Follow AirAsia on Twitter, Facebook, and AirAsia Blog where we will provide real time updates on our latest promotion. * All fares quoted are applicable for one-way travel only.

Malaysian carrier AirAsia X is launching services to Chengdu in southwest China and plans to have some of its Abu Dhabi services go onto London Stansted. A five-times weekly AirAsia X Kuala Lumpur-Chengdu service will be starting on 22 October using Airbus A330s, says an AirAsia X spokesman. According to Innovata no airlines currently operate on the Kuala Lumpur-Chengdu route. He also says some of the Airbus A340 Kuala Lumpur-Abu Dhabi services the carrier will be launching on 23 November will go onto London Stansted. AirAsia X already operates to London Stansted non-stop using A340s but the change means in future it will have a mix of non-stop and one-stop services to London Stansted. Source: http://www.flightglobal.com/articles/2009/08/24/331397/airasia-x-launching-services-to-chengdu.html

IT has never been tougher being in the aviation industry. Key issues of gyrating fuel costs, lower traffic volumes and pressure on yields have seen legacy airlines globally buckling while low-cost carriers flourish. Over in Malaysia, the trend couldn’t have been clearer with the recent earnings announcements by national carrier Malaysia Airlines (MAS) and budget player AirAsia Bhd. Recently, the industry was greeted with bad news when MAS announced disappointing results. It posted a net profit of RM875.5mil for the second quarter to June 30, but sustained an operating loss of RM420mil after taking out a gain of RM1.34bil from a partial reversal of provisions of nearly RM4bil for derivative losses. Looking at the proforma income statement prepared on non-FRS 139 basis, it actually showed net losses of RM804.5mil and RM1.6bil for the second quarter and the first half respectively. (The airline has opted to be an early adopter of FRS 139, the financial reporting standard that covers the recognition and measurement of financial instruments, beginning from financial year 2009.) Its dwindling cash position is another key concern. The first half’s cash flow statement shows some worrying cash outflow items such as the net settlement derivative losses of RM1.3bil. These consist of RM798mil for the settlement of expired derivatives and RM546mil for the premium of the restructuring of the derivatives. “Though the RM546mil premium might be a one-off item, the RM798mil settlement on derivative losses might be repeated in the next two years if oil prices stay below US$100 per barrel,” says an analyst from ECM Libra. He says the main concern is when the fuel hedges expire, as the contracts have to be settled in cash. At present, MAS has hedged 47% of its fuel requirement at around US$100 per barrel for the rest of 2009 and about 63% at US$90 to US$100 per barrel for 2010 and 2011. “If the oil prices stay at current level of US$71 per barrel, MAS will have to settle financial derivative liabilities amounting to RM1.6bil as at June 30, 2009. Of this amount, RM833mil will be due within the next 12 months. By the time all of its derivatives expire in 2011, MAS’ cash pile may be depleted to RM1.3bil,” he says. Furthermore, there are issues concerning its cost-cutting measures. Under its business turnaround plan, MAS had earlier mentioned it will embark on such measures that will yield savings of RM700mil to RM1bil. So far, MAS has not achieved this. “In fact, non-fuel costs actually increased 12% on a quarterly basis to RM2.2bil,” says the ECM analyst. On a more positive note, OSK Investment Research analyst Ng Sem Guan feels that MAS’ earnings have probably bottomed in the second quarter. Based on reported passenger numbers, especially on the growth in the domestic market, he feels MAS’ losses will gradually reduce in the third and fourth quarter. Its various promotions have helped to boost system-wide load factors to 66% in the second quarter, and the aggressive capacity reduction has also pushed the international load factor to 65%. “MAS has managed to attract some customers back from the low-cost carriers. That’s a good sign. It’s step one,” says Ng. Furthermore, with the restructuring of MAS’ hedging positions, Ng opines this will provide a certain degree of protection with respect to its unrealised MTM (mark-to-market) exposure in the event fuel price falls again. MAS has spent RM564mil restructuring its hedge positions, to lengthen the maturity of part of its positions as the board is of the view that crude oil will eventually go up in the longer run. It has also selectively bought put options, which will reduce the downside exposure of its existing fuel hedges. AirAsia flying high Across the budget aisle, we see a classic case of a low-cost carrier faring well during a downturn. AirAsia posted a sterling first-half net profit of RM294.2mil in what is normally a seasonally weaker first half of the year. These results beat street estimates by a resounding 73%. Its second-quarter core net profit (taking out the exceptional items) of RM128mil is a 4.41 times increase from the period a year ago, and is impressive, considering it was achieved by cutting ticket prices by 19% to RM160 per passenger and with no fuel hedging gains to buffer its performance. According to data provided by the International Air Travel Association (IATA), global passenger demand declined 7.2% in June. However, AirAsia’s passenger traffic increased 11.8% quarter-on-quarter (qoq) to 3.5 million passengers, while RPK (revenue passenger km) increased 16.3% qoq to 4 million km. In addition, AirAsia managed to keep its seat load factor steady at 74.8% despite a 6% qoq increase in ASK (available seat-km), a yardstick for capacity. Interestingly, AirAsia’s second quarter revenue/RPK dropped 21% on a quarterly basis to 16.2 sen, which is rather similar to the 20% revenue yield decline experienced by MAS in the same period. “While MAS’ fare cutting resulted in operational losses, AirAsia posted operating profit of RM271.3mil,” says the ECM analyst. “We continue to like AirAsia for its resilience amidst the challenging operating environment,” says KAF Research analyst Vince Ng in his report. He is reiterating a target price of RM2 for the stock. While earnings may be running ahead, and traffic in the second half is seasonally stronger, Ng is still maintaining his core net profit forecast of RM332mil for AirAsia as yield pressures and rising crude oil prices can be a concern in the coming quarters. The analyst from ECM has a target of RM1.90 based on a discounted cashflow valuation. Meanwhile, how do airport operators fare during present trying times? Maybank Investment Bank analyst Khair Mirza says Malaysia Airports Holdings Bhd’s (MAHB) second-quarter passenger data, and MAS’ second-quarter results confirm his view of AirAsia getting bigger market share. Data from both carriers and the airport operator confirm that AirAsia has widened the gap with MAS in terms of passengers carried in the Malaysian air travel market in the first half of the year. Overall passenger movements at KL International Airport increased 4.1% to 7.13 million, while movements in other Malaysian airports increased 7.8% to 5.31 million. “MAS’ first half market share of the air travel market fell by 5.3 points on a yearly comparison to 22%, while AirAsia gained 6 points to 37%. The two carriers’ combined share remained at 58%-59%. It has been stagnant at this level since 2005,” he says. On this note, Khair is bullish on MAHB as it merely collects “toll.” He expects publicity-shy MAHB to report higher airport non-aeronautical revenues in its second quarter results this month. MAHB has been investing in its airport non-aeronautical segment. These include more effective selling of advertising space at KLIA’s main and the low cost carrier terminals. MAHB has also increased retail space at all international terminals. This will help compensate for the lower charges MAHB collects from these passengers. Khair is also confident that MAHB will deliver the new LCCT in the second half of 2011. Source: http://biz.thestar.com.my/news/story.asp?file=/2009/8/22/business/4508958&sec=business

Firefly To Have 7 Flights Weekly For Ipoh-Singapore Route KUALA LUMPUR, Aug 21 (Bernama) -- Firefly Airlines will further expand its Ipoh-Singapore service by offering daily flights between the two cities from beginning next month. Currently operating four times weekly, the move will increase the flight frequency between the two cities to seven flights weekly. "We are confident that these new flights will serve to stimulate more travel and growth prospects between Ipoh and Singapore," Angelina Fernandez, head of marketing and communications for Firefly, said in a statement on Friday. Firefly is offering an all inclusive one-way ticket for RM88 for the route and the travelling time is about one hour and 20 minutes. -- BERNAMA Source: http://www.bernama.com/bernama/v5/newsbusiness.php?id=434832

To be fair, it is the media and us who are speculating. We are just laymen who do not know the complexities of getting a route proposed and through the legal, regulatory as well as technical approvals. I think right now D7 has more or less firmed up its plans on how to deploy the 3 new A333s and also how to change the old A333's seats to better ones. I think their next major expansion of routes will have to wait until 2010 when the next 3 new A333's arrive or when they find more leased A343's.

Here is something D7 CEO Azran said in the media on destinations beyond Abu Dhabi: Source: http://www.flightglobal.com/articles/2009/08/20/331256/airasia-x-still-deciding-on-destinations-beyond-abu.html

Well the authorities have thwarted their plans! Japan, Sydney and Korea all burned this year. So they are still on the back burner... So this is their riskier backup plan.

Daily flights to Colombo started on 15 August 2009: AK 255 KUL CMB 06:30 07:30 AK 256 CMB KUL 08:30 14:30