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flee

AirAsia X Orders 10 Airbus A350-900 + 5 Option at Paris Air Show 2009

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With a range of over 15,000 kms, the A350's will replace D7's current fleet of A340's on the long haul routes and can also be deployed on shorter routes where capacity greater than the A330-300's is needed.

 

A very good buy for D7 indeed!

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Anyone knows which engines opt for the new AirAsia A350s?

 

A350s are currently available only with the Rolls-Royce Trent XWB engine.

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PETALING JAYA: AirAsia X’s latest fleet purchase has raised concerns among analysts that it is following the high debt-leverage route of AirAsia Bhd, expanding the risks to its bankers.

 

The long-haul, low-cost airline company’s CEO, Azran Osman-Rani, said there was a fundamental difference between the business model of AirAsia X and that of traditional airlines.

 

“For AirAsia X, most of its tickets are sold through the Internet and bought by customers months before their flights.

 

“As for traditional airlines, tickets are mainly bought through agents and paid by customers just two weeks before the flights.

 

“The agents may even pay the airlines after the flights,” he told StarBiz in a telephone interview yesterday. The airline has a similar business model as AirAsia as both are low-cost carriers.

 

“We have forward cash. In this business, what is important is cashflow. We’re holding the forward cash,” he added.

 

It was announced on Tuesday that AirAsia X placed a firm order for 10 Airbus A350 aircraft which carried a list price of US$2.2bil.

 

This follows an earlier order for 25 Airbus A330 planes for delivery between last year and 2015.

 

On the company’s debt leverage, he said AirAsia X’s gearing was about 200% and was not expected to increase.

 

The 10 planes in the latest order will only be delivered from 2016.

 

“It’s not like we’re buying all the planes at the same time. But it is important to place the deposits now. This is to ensure we’ll have the delivery slots. The deposit is just US$10mil, we’re not paying US$2.2bil yet,” he added.

 

Progressive payments will start 36 months from delivery but the bulk of payments will be made when the planes are delivered.

 

By the time the A350 planes are delivered from 2016, most of the borrowings taken for the A330 planes would have been repaid.

 

Azran said some equity analysts did not understand AirAsia X’s business model, but that was not important.

 

“What is important is what the banks do. If the banks are worried with our gearing, wouldn’t they be the first to run away?

 

“But the banks are saying they’ll fund all our deliveries this year,” he said.

 

AirAsia X will take delivery of three Airbus A330 planes between September and December. Financing has been obtained for these planes.

 

Currently, the airline flies five planes to London, Melbourne, Perth and Gold Coast (Australia), and Tianjin and Hangzhou in China.

 

Its most profitable routes are Gold Coast and Hangzhou because these were the first two routes flown by the airline.

 

“They’re more matured markets for us than London or Melbourne. It’ll take us a year to build brand awareness for the newer routes and, initially, the pricing has to be aggressive,” he said.

 

That was from The Star:

http://biz.thestar.com.my/news/story.asp?f...mp;sec=business

 

I find it so funny that these analysts try to pick something wrong with the deal. Last year they caused AirAsia share price to tumble because they did not like their non fuel hedging policy. So AirAsia started hedging to please them - otherwise share prices will freefall. So these analysts have indirectly caused losses for AirAsia.

 

This time Azran told them to F.O. - good on u Azran! :clapping:

Edited by flee

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Connectivity explored as AirAsia X mulls long-term IFE&C strategy

By Mary Kirby

 

Malaysian long-haul low-cost carrier AirAsia X is exploring the possibility of equipping its newly-ordered Airbus A350 widebodies with in-flight Wi-Fi to put passengers in control of their own in-flight entertainment (IFE) experience.

 

Such a strategy is just one of a number of considerations for AirAsia X, which has an order for 10 A350s with the European airframer. But it exemplifies the type of innovative thinking for which the low-fares carrier is becoming renowned, according to Shashank Nigam, the CEO of SimpliFlying, a global airline marketing and branding consultancy.

 

"Half the people on-board generally carry laptops and what AirAsia X can do is to have portable units which can be rented and just plugged into the power outlets. There you go - you have reduced all the wiring, slashed most of your licensing costs - with Disney, Universal and Pixar, for example - and that makes so much more sense because it's on-demand. This is certainly something AirAsia X can do," says Nigam, who recently spoke at an industry conference where AirAsia X's CEO also spoke.

 

Asked to comment on AirAsia X's long-term in-flight entertainment and connectivity (IFE&C) plans, Tim Claydon, a director and consultant for the carrier, says: "We're looking at the direction of how in-flight entertainment and connectivity is going to develop and will allow us to really be able to provide customers options without us having to pay the significant cost that exists around an embedded [iFE] solution.

 

"From a low-cost, long-haul perspective, we can't simply afford to pay for one of the systems from the big [iFE] providers. That's pure cost. We have definitely tried to think outside the box with both existing providers and potential new providers on how we can still provide the level of entertainment and options that someone would need to have on an eight or 12-hour flight without the commitment or expense of major projects."

 

Claydon says AirAsia X down the road is open to "innovative solutions, both with regard to connectivity and entertainment options".

 

The carrier has not settled on any particular in-flight connectivity solution. "I think that down the road, something we think about is how do we retain that flexibility? How do we let people utilize what they want to...entertain themselves, and how do we provide for that without the capital expense? I think obviously, for us, it's not as simple as sticking [Aircell's] Gogo onboard. We're long-haul, we're multi-national. There isn't some simple technology right now that really provides a justifiable business model for us, but as things develop in whatever space there is in connectivity, I think there is going to be a reincarnation of long-haul connectivity and we will stay very close to that if we can make it work," says Claydon.

 

At a minimum, says Claydon, an in-flight connectivity solution "needs to pay for itself" and "if it can become a revenue stream for us, so much the better". It cannot, he stresses, "become a cost for us" as "we would not jeopardize our ability to put the lowest fares in the market".

 

Nigam believes AirAsia X has the right idea. "AirAsia X will succeed because of the people at the top, like CEO Azran Osman-Rani, who are willing to question all assumptions," he says.

 

Airline group AirAsia in March signed a firm contract with in-flight mobile communications specialist OnAir to install mobile telephony on Airbus A320s that AirAsia and its Thai and Indonesian affiliate carriers operate.

 

AirAsia has a 16% stake in AirAsia X. Aero Ventures, which AirAsia CEO Tony Fernandes started with other prominent Malaysians and Air Canada's Robert Milton, owns 48%.

 

Source: http://www.flightglobal.com/articles/2009/08/12/330870/connectivity-explored-as-airasia-x-mulls-long-term-ifec.html

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Malaysian long-haul budget carrier AirAsia X said its decision to scrap unprofitable routes to Europe will not affect its orders of 10 Airbus A350 passenger planes, Chief executive Azran Osman Rani said.

 

"The A350 orders is for 2017 and beyond. Europe may have very well bounced back by then, so it is good to have options, it is good to have forward capacity." Azran told Reuters on the sidelines of a conference in Singapore on Thursday.

 

The carrier may take out its two Airbus A340 planes, which served the European routes, from the fleet and lease them out, he said.

 

Last month, AirAsia X decided to pull out its services from Europe and India due to weak demand and a row over the European Union emission charges and redeploy its capacity in Asia and Australia.

 

The withdrawal from London and Paris also means AirAsia X will compete more directly with Qantas' budget carrier Jetstar and Singapore Airlines' new long-haul subsidiary Scoot, which will kick off its maiden flight to Sydney in the first half of 2012.

 

AirAsia X was founded by Malaysian tycoon Tony Fernandes who also runs AirAsia Bhd, one of the world's largest short-haul low-cost carriers, which is run as a separate entity.

 

Azran said AirAsia X plan to list its IPO after the listing of the group's Thailand and Indonesian affiliates. He declined to provide details.

 

Source: http://www.reuters.c...E8180AU20120209

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...

 

The withdrawal from London and Paris also means AirAsia X will compete more directly with Qantas' budget carrier Jetstar and Singapore Airlines' new long-haul subsidiary Scoot, which will kick off its maiden flight to Sydney in the first half of 2012.

...

 

Don't quite understand what he means here. Pulling out the European routes to compete with the regional carriers? I thought it would be more attractive for D7 due to they offer "fly thru" services to Europe from Australia and other ASEAN cities.

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Air Asia founder and CEO Tony Fernandes said in Toulouse today (Thursday) that he would reconnect Australia to Europe with long haul flights by his Air Asia X brand in 2015 as an early user of the yet to fly Airbus A350-900.

Fernandes was at the Airbus multiplex to take delivery of his 100th A320, and hinted that before the day was over he might have lifted his total orders for the jet from its present tallyof 375.

Earlier this year Air Asia X discontinued its A340 flights to Paris and London from Kuala Lumpur, but expanded its A330-300 flights within SE Asia, including opening a new service between Sydney and the Malaysia capital in April.

The A350s will fit economy passengers into a cabin with 10 across seating, one more per row than standard A350s, just as his A330s fit in nine across seating where the standard is eight across. A premium cabin with sleepers would undercut whatever price for a similar product was being asked by legacy carriers.

Asked about the end of discussions with Qantas for a proposed premium single aisle carrier based in Malaysia involving the participation of Air Asia and Malaysia Airlines, Fernandes said he had very good relations with Qantas CEO Alan Joyce but “I will no longer have a 20% stake in Malaysia Airlines.”

101103-AirAsiaXA350-01-600x399.jpg

Airbus graphic of an A350-900 in Air Asia X livery

Fernandes was upbeat about his prolonged pursuit of permissions to set up a new Singapore hub and division to compete directly with Jetstar Asia, Tiger Airways and Scoot.

“I would love to set up a hub in Singapore but the government there won’t allow it,” he said.

“However it took me seven years to get Singapore-Kuala Lumpur flights allowed, and I will keep pressing for the Singapore hub until I get it.”

Fernandes said Air Asia was already the second largest airline by numbers of flights in Singapore after Singapore Airlines, which he said in apparent jest that he intended to buy one day, and emphasised was larger than Jetstar, Tiger and SilkAir.

Fernandes said Air Asia would remain profitable until oil reached $US 150 per barrel.

He said he believed the broad spectrum approach to service standards by traditional carriers like Singapore Airlines was failing and that the market will polarise around the opposites of a premium carriers and low cost carriers with very little inbetween.

http://blogs.crikey.com.au/planetalking/2012/05/25/airasia-says-it-will-resume-europe-flights-with-a350xwb-in-2015/

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AirAsia X could defer delivery of A350 planes - CEO

 

Malaysian long haul budget carrier AirAsia X Bhd could defer the delivery of its Airbus A350s if European economies fail to recover by the time it receives the first aircraft in 2018 or 2019, its chief executive said.

"You can't really pinpoint it until the first one enters into service and the production schedule gets firmed up by Airbus," Azran Osman Rani told Reuters in an interview on Tuesday.
The broader economy could also be a factor, he added.

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AirAsia X Could Swap Entire 66-Jet Airbus A330Neo Order to A350s

 

  • Fleet review underway as carrier mulls case for more capacity
  • Discount operator could also add A321s for China, India routes
AirAsia X Bhd., the long-haul arm of the region’s biggest budget carrier, is looking at swapping an order for 66 Airbus SE A330neo wide-body jets to larger A350s in a bid to boost capacity on its busiest routes.
A review of the Kuala Lumpur-based discounter’s fleet requirements is underway and could result in a plan to trade up to the bigger wide-body, Tony Fernandes, chief executive officer of the AirAsia group, said in an interview Tuesday, adding that the Boeing Co. 787 Dreamliner will also be considered.
AirAsia X will remain focused on routes within four to eight hours’ flying time and would deploy the A350s on those services just as it had aimed to do with the A330s, Fernandes said, adding that a switch wouldn’t indicate a revival of plans to serve Europe. For Airbus, an order would shrink the 212-plane A330neo backlog while bolstering an A350 program that has itself suffered recent setbacks.
“Over the last 10 years we’ve been tweaking the model,” the CEO said. “Now that we kind of know what we want to do, we’re looking at the fleet. We’re toying with the A350. If we went A350, we wouldn’t use the A330neo anymore, we’d go all A350.”
AirAsia X currently has 10 A350-900s on order alongside the larger A330neo commitment, while its existing fleet is comprised of 30 current-generation A330s. The Boeing 787 “looks interesting as well,” Fernandes said in London.
More here:

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Tony Fernandes is well known for speaking his mind - so once the "news" is out, he gets his unofficial "market survey" results. A very good way to get some free consultancy.

 

Remember the talk that Airasia X wanted to put all economy seating on the A330s? That came to an end when there was lots of negative reaction. Now, they are looking to the A350 to provide more seats - a slightly better alternative. However, due to the exit configuration, the A350's max number of pax will still be 440 - the same as the A330. But those sardine pax will have slightly more comfort in the A350.

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Oh, now it seem unlikely :)


AirAsia X won't buy "too expensive" Airbus A350
from: https://www.thestar.com.my/business/business-news/2018/04/16/airasia-x-wont-buy-too-expensive-airbus-a350/#rte8XY85IMEFsHle.99

 

A bit difficult to bend mind around the A350 being dismissed as too expensive at 317.4M apiece whilst talking to manufacturer B about the B787-10 at 325.8M a shot :D

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Oh, now it seem unlikely :)

 

 

AirAsia X won't buy "too expensive" Airbus A350

from: https://www.thestar.com.my/business/business-news/2018/04/16/airasia-x-wont-buy-too-expensive-airbus-a350/#rte8XY85IMEFsHle.99

 

A bit difficult to bend mind around the A350 being dismissed as too expensive at 317.4M apiece whilst talking to manufacturer B about the B787-10 at 325.8M a shot :D

A is at 40% discount. But B gives 70% discount.

 

Who pays list prices?!!

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Direct Europe routes is no longer in the plans i think its good they cancelled it or it might bleed their already tight bottomline. Looking at how AirAsia likes play around with orders it might better if they also defer and convert the current A330-900neo orders and wait out for the 251t steroid version which is expected to fly post year 2020. They would rather wait it out than cut the 40+ seats allocated for the A330neo just for the range which would increase the base ticket price as well. Another option is all Europe bound flights on the A330neo will be one stop via DonMuang Thailand.

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Direct Europe routes is no longer in the plans i think its good they cancelled it or it might bleed their already tight bottomline. Looking at how AirAsia likes play around with orders it might better if they also defer and convert the current A330-900neo orders and wait out for the 251t steroid version which is expected to fly post year 2020. They would rather wait it out than cut the 40+ seats allocated for the A330neo just for the range which would increase the base ticket price as well. Another option is all Europe bound flights on the A330neo will be one stop via DonMuang Thailand.

 

D7 could either stop at DMK or use XJ metal from DMK to Europe. XJ is well positioned to take a slice of kangaoo routes from ME3.

Edited by KK Lee

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