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Asian budget airline in long-haul move
By Jonathan Kent
BBC News, Kuala Lumpur
The low-cost airline model which has revolutionised travel in Europe, the US and lately Asia may be about to go global. The biggest no-frills carrier in the East - Air Asia - has announced the launch of a sister company to ferry travellers between its hubs in South East Asia and Europe, primarily the UK.
"We're going to really bring down costs on the long-haul product [in a way] that was never deemed feasible," Air Asia's chief executive Tony Fernandes told the BBC. "I think that will allow us to offer fares to London from $80 to $450 (£41 to £231) return," he said.
'One class product'
Mr Fernandes announced on Friday that the carrier, which expects to carry some 18 million passengers around South-East Asia this year, would launch a new airline under its banner to do what many believe is unfeasible. "It's going to be a one class product," explained Mr Fernandes.
"It may have some rows of seats that are nice but you pay for that." "We're not going to have business class lounges and separate check-in counters, but some people may be prepared to pay a little more for extra legroom."
The first route is likely to be between Malaysia's under-utilised air hub outside Kuala Lumpur and the UK.
Expansion
Mr Fernandes says he is not wedded to the idea of flying to a London airport but would rather go for whichever offers the best deal. But from there he sees enormous room for expansion. "I think there is huge potential in Europe, China, India, Australia, the Middle East, Japan, Korea and one day the US but that's not in out immediate plans."
Both regions have a diversity that appeals to tourists. Asians are as enthralled by the prospect of strolling past Big Ben on a cold rainy day as Europeans are of sipping cocktails on white coral sand beaches in January. The traffic will surely be two-way, he says.
The Air Asia announcement follows the launch a few weeks ago of a low-cost London to Hong Kong service by new operator Oasis. However, the Malaysian based airline is already well established. When it launched in December 2001 it had three aircraft. Now it has 50 and is waiting for another 85 units of the A320 model from Airbus.
Barriers
But what distinguishes Air Asia, beyond being a market leader, is its rather un-Asian combative approach. When it started out, Air Asia found itself up against politicians who saw it as a threat to the country's flag carrier Malaysia Airlines. Three years ago when it launched its first international service to Thailand's Phuket island, a former tourism minister told Mr Fernandes his firm should to stick to domestic services.
Barriers were put up. Malaysia's government would not give its blessing for the airline to fly Kuala Lumpur to Bangkok. In response, the budget carrier simply set up a Thai arm and went into partnership with Shin Corporation, a company linked to the country's former Premier, Thaksin Shinawatra. The Thai authorities subsequently approved the route. Now it flies all around South East Asia as well as to China.
Risk taking
Mr Fernandes assessment of the role of the entrepreneur in forging new markets is blunt: "It's about having balls". We're making the hard decisions that many wouldn't have done, on the firm belief that people will be driven by low fares. He acknowledges that the new venture involves considerable risks.
There is a big difference between being prepared to save a few dollars on a three-hour trip across Europe or Asia and enduring 14 hours across eight time zones in a cramped seat, along with scores of other potentially grumpy and frustrated passengers. Air Asia has created a new market and won a legion of fans in Asia. But there have also been many complaints in the local media about delayed flights and other problems, that could be amplified on a long haul route.
Mr Fernandes remains undeterred: "We're making the hard decisions that many wouldn't have done, on the firm belief that people will be driven by low fares." The success of the new venture will no doubt rest on how would-be passengers weigh convenience and comfort against price when flying half way round the world.
The rest of the industry will be taking note.
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Fantastic news! This is going to be an new exciting era for Malaysian aviation scene! I really want to see this happening, and I want to see how MAS respond to this new 'threat'.
All in all, good news! I also hope that safety is the top of the list of course for AirAsia X.
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I like the idea...cheap traveling...everyone should get a chance to visit the world!
With AA, now everyone can fly!
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Flights are returning to normal (for BMI at least), so here I am in Terminal 1 in Heathrow...I'm so glad that I checked-in and printed my boarding pass before going to the airport...the queue was extremely long! Phew!
Onwards to Paris!
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It's probably going to be like RM500 one-way, minus tax and all those!
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MAS would so go bankrupt if this ever happens....i'm sure LHR is one of MAS most profitable route, no?
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Many of the domestic flights from BA are canned, rightly so. They can just use train and bus! Not many international flights are cancelled, but delays are expected as they are operating at a reduced capacity.
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Sigh, it's not even funny anymore! I pray and hope that my flight tomorrow to Paris is not delayed/cancelled, if it is then i'm SCREWED!!
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Maybe Airbus just given SIA a deal they just can't resist. In a way it will boost other airliners' confidence in the 380 programme.
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Cancel only la, buat kacau aje Airbus nie!
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This is amazing, thanks for sharing!
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The display manu on the PTV is just few line of words discribe what they serve. Not display the pcitures of the food that they going to serve in the flight.Isn't a few line of words to describe how the dish is prepared, enough? Printed menus don't have pictures of the food also right! not even first class
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playing cards is no longer produced or distributed, at least that's what the flight attendant told me on the recent MEL-KUL flight. then the inflight menu also not distributed but shown on the TV to save cost... btw, i took economy classI think displaying the menu on the PTV is a good idea, that would be so much better. Plus some passengers would need to know exactly how the dish is prepared. Beef or chicken option is just isn't detailed enough.
But seriously...how much will it save lah... :rolleyes:
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Can someone tell me what planes and where are these planes from? Such a rare catch...!
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You don't need to send spies to other airlines, that is just a waste of money.
Instead, listen to your CUSTOMER's feedback. That is a start.
*rolleyes*
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Hahah i can't stop laughing at the pic...so hilarious!
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Yes, pictures please!!!
I have seen those pics of LH on F, looks really comfy!
Keith, while on the topic of LH, may I ask your opinion. I was just going to post another topic at SQTalk, but might as well just ask you here. Compared to SQ's Raffles...I mean Business *rolleyes* class, how does LH one compare? Am thinking of upgrading CDG-FRA-SIN to Business, instead of my LHR-SIN-KUL leg on SQ in Feb (before that damned new rules kick in)
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Hi Sheba Wistiti,
Sadly, BA do not fly to KUL any more.
Note that Sheba is asking for which gate BA used to be allocated.
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Apple in deal to let iPod videos play on planesNEW YORK (Reuters) - Apple Computer Inc. (AAPL.O: Quote, Profile, Research) said on Tuesday six major airlines will let passengers play video and music from their iPod digital devices on in-flight entertainment systems beginning in mid-2007.
Air France (AIRF.PA: Quote, Profile, Research), Continental Airlines (CAL.N: Quote, Profile, Research), Delta Air Lines (DALRQ.PK: Quote, Profile, Research), Emirates (EMAIR.UL: Quote, Profile, Research), KLM (KLM.AX: Quote, Profile, Research) and UAL Corp.'s (UAUA.O: Quote, Profile, Research) United Airlines will begin offering their passengers iPod seat connections, which power and charge iPods during flight and allow the video content on the devices to be viewed on seat-back displays, Apple said.
Terms were not disclosed.
Apple has sought to expand the possible uses for its market-dominating iPod, including deals to build iPod ports into new-model cars. The announcement came as rival Microsoft Corp. (MSFT.O: Quote, Profile, Research) launched its Zune digital music player on Tuesday in a bid to challenge the iPod.
To date, Apple said it has sold nearly 70 million iPods and more than 1.5 billion songs through its iTunes music store.
Apple shares rose to $85.25 in premarket trading from its close of $84.35 on Monday on the Nasdaq.
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Government kacau again!
Anyway, it don't matter really even if MAS is losing money, at the end of the day, there is still the Government. CEOs come and go, but still they will have "bottomless" cash pile for them to burn.
Whose money? ours la!
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It's all marketing, from airliner point of view, it's all good for them, and you can't sue them because maybe some of those seats are indeed that cheap (minus tax and what not). For us of course we would like to see the full fee, and I applaud airlines that quote us the full fare when we do a search, and not when we select the dates and then only show us the full fare. That's annoying, really.
BA.com is a good example, the fares shown on the dates during selection is all inclusive.
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yay cheaper rates
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Gosh, first time seeing the wreckage...it's cut into 2???
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OMG this is getting way too much! LOL It's about time they offered such especially for long haul flight...I now don't mind flying 17 hours or so! Even the economy class looks very like Business! yay
Thanks KC Sim for the photos...amazing!
And I don't think the first class should be called seats anymore, more like a lil ROOM!
Contact lost with Indonesian jet
in General Aviation
Posted · Report reply
Still no news on this? This is really Bermuda Triangle-ish!