AirAsia X to set up virtual hub in Middle East

[flee 5]

From The Star: http://biz.thestar.com.my/news/story.asp?file=/2009/7/29/business/20090729113502&sec=business

 

KUALA LUMPUR: AirAsia X Sdn Bhd, a long-haul budget airline and related company to AirAsia Bhd, is looking to set up its first ever virtual hub in the Middle East next year.

 

AirAsia X chief executive officer Azran Osman-Rani told reporters Wednesday that this hub would serve the region and beyond and was part of the airline’s expansion strategy.

 

He said the hub would be used for flights from Malaysia to Middle Eastern destinations as well as from the Middle East to Europe.

[flee 5]

AirAsia X to launch new Middle East hub

 

Long-haul budget airline AirAsia X said today it would launch a new hub in the Middle East, enabling its network to extend to north Africa and Europe.

 

AirAsia X’s chief executive officer Azran Osman-Rani said a location had already been chosen in a Gulf state but that it would not be disclosed for several weeks.

 

“This will open up completely new markets, and we won’t always have to have the planes based in Kuala Lumpur, which limits us to an eight-hour radius,” Azran told reporters.

 

“There will be many in the aviation industry who think this is crazy because the traditional low-cost model is to do only point-to-point flights... to keep it simple,” he said.

 

Azran said, however, that while there would be “some additional cost”, AirAsia X would not need to create new infrastructure and would instead hire existing services for cargo, catering and maintenance.

 

Initially, the carrier will operate flights from Kuala Lumpur to the Middle East hub, before branching out next year by using it to jump to destinations that could include Morocco, Turkey, Spain or the Czech Republic.

 

Azran said the plan was also triggered by potential problems accommodating new aircraft, amid doubts that Malaysia’s airports authority will complete a new low-cost carrier terminal in Kuala Lumpur by 2011 as scheduled.

 

“It will relieve the pressure of having all our planes in Kuala Lumpur, especially if the new airport is not finished and we do not have enough parking bays,” he said.

 

AirAsia X now flies to seven destinations, with two more planned by the end of 2009. It operates five planes, a combination of Airbus A330s and A340s, with three more medium-range A330s due for delivery this year, three in 2010 and six in 2011.

 

Azran said this week that AirAsia X has been denied permission by the Malaysian government to fly into Sydney and Seoul, due to a row over its sister carrier AirAsia.

 

But he said Wednesday that it would instead boost flight frequency to the Gold Coast in Australia, Hanzhou in China, and the Taiwanese capital Taipei.

 

An affiliate of regional low-cost carrier AirAsia and Virgin Group, AirAsia X was launched in January 2007. AirAsia and AirAsia X have common shareholders, including AirAsia founder and CEO Tony Fernandes. -- AFP

[Mohd Azizul Ramli 2]

ABU DHABI!

 

Did they get 5th freedom right to carry passengers from there to another point beyond? Is Etihad Airways that accommodating?

[flee 5]

It could also be Bahrain as one of AirAsia X's shareholders is a Bahrainian company. So it may be easier to obtain regulatory approvals if AirAsia X has a local shareholder.

[Sandeep G 1]

Gulf Air has been a bit ill, so I would imagine it being in Bahrain.

[BC Tam 2]

Is this hub going to happen in reality ?

Must be a reason why it's "virtual" to start with !

Bear in mind the friction ongoing here

Nothing wrong with positioning your chess pieces into position before battle proper begins in ernest

[flee 5]

Is this hub going to happen in reality ?

Must be a reason why it's "virtual" to start with !

I think The Star reporter got it wrong - it will be a physical hub since Azran was talking about hiring the ground services from local providers. He also talked about basing aircraft there because LCCT parking space is very limited once you have another three A333s by the end of this year.

 

Bear in mind the friction ongoing here

Nothing wrong with positioning your chess pieces into position before battle proper begins in ernest

I think that AirAsia X has no choice because so far this year, plans to fly to Japan, Seoul and Sydney have not taken off. So they will need to look at other markets. Otherwise they will have a lot of planes parked on the tarmac. This means that their profitability might be lower than expected as the prime routes have failed to materialise.

[Mohd Azizul Ramli 2]

AUH is D7's Middle Eastern 'virtual' hub.

 

Abu Dhabi is new Mideast hub for AirAsia's long-haul carrier

By Asha Popatlal, Channel NewsAsia | Posted: 01 August 2009 0126 hrs

 

Malaysian stewardess stand next to a long-haul low-cost airline AirAsia X poster.

 

KUALA LUMPUR: AirAsia's Group CEO Tony Fernandes has confirmed that Abu Dhabi will be the new Middle East hub for its long-haul carrier AirAsia X.

 

Having a hub means that the carrier will be able to base its planes outside Kuala Lumpur, and it will not be limited to servicing destinations within an eight-hour radius from the Malaysian capital.

 

This will allow its network to extend to North Africa and Europe, as it can use the Middle East port as a stopover. - CNA/de

[flee 5]

Whether it is a virtual or real hub does not matter. What matters is that D7 is able to continue its expansion and route development without the handicap of the incompetent and sterile Malaysian govt's fumbling, along with MAHB's foot dragging on the new LCCT.

 

The Malaysian govt. should not be allowed to frustrate D7's business plans. So they are right to move on because they do not have Labu. Now they also might have the new LCCT delayed.

[flee 5]

Tony Fernandes has said that the flights to Abu Dhabi will commence in October. So that will probably coincide with the delivery of XXC (Sept) and XXD (Oct).

 

Source: http://www.menafn.com/qn_news_story_s.asp?StoryId=1093263212

Edited August 10, 2009 by flee

[Hon Kit 3]

Since there is a hub in the middle east. Possible KUL - AUH - STN ?

[Waiping 12]

Whether it is a virtual or real hub does not matter. What matters is that D7 is able to continue its expansion and route development without the handicap of the incompetent and sterile Malaysian govt's fumbling, along with MAHB's foot dragging on the new LCCT.

 

The Malaysian govt. should not be allowed to frustrate D7's business plans. So they are right to move on because they do not have Labu. Now they also might have the new LCCT delayed.

 

Agree. Born in Malaysia but reside elsewhere.

[flee 5]

Since there is a hub in the middle east. Possible KUL - AUH - STN ?

They now have a daily flight to STN and their target is to do double daily. Whether they do it 1-stop via AUH or not for the second frequency will be interesting to watch. I guess if the daily load factors are high, they might experiment with double daily on the A333 (with its higher capacity) on some days.

 

However, I think they should only do that with A333's that are equipped with reclining seats. Definitely not with XAA, XXA and XXB!

[Mohd Azizul Ramli 2]

Since there is a hub in the middle east. Possible KUL - AUH - STN ?

They now have a daily flight to STN and their target is to do double daily. Whether they do it 1-stop via AUH or not for the second frequency will be interesting to watch. I guess if the daily load factors are high, they might experiment with double daily on the A333 (with its higher capacity) on some days.

 

However, I think they should only do that with A333's that are equipped with reclining seats. Definitely not with XAA, XXA and XXB!

I am also in the opinion that a second daily service into STN will be materialised via a technical stop in AUH with an A333. However, I don't think they will be granted a 5th freedom right to carry passengers from AUH onwards. Would be tremendous if they have it!

 

Very brave on D7's part I would say, to venture into AUH since it is a hub of Etihad Airways which serve KUL daily on an A332 (a premium airline which is well known to always sell their seats at a cheap price) and also a focus city of SQ, which now has a daily flight into AUH, some of those continue on to JED, some to KWI. But as D7 always claim, they are serving a different market, so it is very interesting to observe.

[Sing Yew 1]

From AirAsia's website:

 

 

Abu Dhabi

 

Located on the north-east of the Arabian Peninsula, the Emirate of Abu Dhabi is the largest of the UAE’s seven emirates. Abu Dhabi borders the Emirate of Dubai to the north-east, the Sultanate of Oman to the south-east and the Kingdom of Saudi Arabia to the south and west. To the north lies the Arabian Gulf. Sunny weather, tranquil beaches, lush oases, vibrant city life, and a mixture of culture and traditions come together to make Abu Dhabi a destination like no other. Explore the old souqs, sip a fragrant Arabic coffee, ride the dunes on an exhilarating desert safari, or dive into a dazzling array of marine life – these are just a few of the activities one can look forward to. While there are endless entertainment and leisure facilities, brand-name international hotels, and luxurious shopping malls, Abu Dhabi also has beautiful green streets and spacious boulevards and parks.

 

 

 

Dubai

 

Sunshine, shopping, seaside, sports and safety - five of the key ingredients that have earned Dubai a growing reputation as one of the world's most attractive and rapidly developing leisure destinations. Dubai is one of the seven emirates and the most populous city of the United Arab Emirates (UAE). It is located along the southern coast of the Persian Gulf on the Arabian Peninsula.

Dubai is one of the most multicultural cities in the world with an expatriate community far exceeding the total of Emirati nationals. Considered as one of the most happening travel destinations in the world, Dubai is often crowded with vacationers from across the world. As a trading hub, the emirate combines the excitement of a bustling commercial centre with the wide open spaces of a luxurious resort. Dubai is quickly getting recognized as a shopper's paradise.

 

Mekkah

The Holy City of Mekkah, which lies inland 73 kilometers east of Jeddah, is the birth place of the Prophet Muhammad. Mekkah is regarded by Muslims as the holiest city on earth. Five times each day, the world's one billion Muslims, turn to the Holy City of Mekkah to pray. It is the place where Muslims perform the Hajj, a pilgrimage that is the fifth of the fundamental Muslim practices known as the 'Five Pillars of Islam'. At least once in their lifetimes, Muslims must make the pilgrimage to Mekkah, barring any personal circumstance. Thus each year, the Holy City of Mekkah sees some two million pilgrims from the world over.

 

Jeddah

 

The Saudi Arabian city of Jeddah is located on the coast of the Red Sea. Once a fishing hamlet, it is now the second largest city after Riyadh. Jeddah is the principal gateway to Mecca, and the main entry point, either by air or sea, for pilgrims performing the Hajj to Mecca and Medina, the two sacred cities of Islam. Jeddah has been a port and trading city for centuries, which is reflected in its cosmopolitan mix of inhabitants. Today, it is the major commercial and administrative center of Saudi Arabia. Jeddah is known in the kingdom for its shopping districts, restaurants and cafes. It also hosts the Jeddah Corniche - the waterfront area, which is the largest in the Kingdom with a wonderful selection of hotels, beaches and resorts around it. The city has retained the ancient skyscrapers and merchant houses. Some of them are truly magnificent, with their imposing structure and architectural beauty.

 

Another new destination, just waiting to be discovered! AirAsia will be flying you to your gateway to the Middle East soon. If you’d like to be kept informed about this exciting, brand new route, leave your details here and we will be in touch shortly.

[Mohd Azizul Ramli 2]

It is incorrect to include Mecca and Jeddah in the advertisement, because all of the 4 destinations clearly under a big red headline 'UNITED ARAB EMIRATES' (which the last 2 are not). But for sure, those who are going into these 2 Saudi Arabian cities are probably the targetted market for the new KUL-AUH vv route (despite JED being 3 hours flight away from either DXB or AUH).

 

I think the inclusion of Jeddah and Mecca is to lure the labour and religious traffics especially out of Indonesia (GA on the CGK-JED vv sector sometimes sees a double daily B744 flights. Lion Air purposely leased the 2 ex-Oasis B744s for their yet to be launched JED route). AirAsia would make a killing over these 2 Indonesian carriers if marketed properly.

[KK Lee 5]

It is incorrect to include Mecca and Jeddah in the advertisement, because all of the 4 destinations clearly under a big red headline 'UNITED ARAB EMIRATES' (which the last 2 are not). But for sure, those who are going into these 2 Saudi Arabian cities are probably the targetted market for the new KUL-AUH vv route (despite JED being 3 hours flight away from either DXB or AUH).

 

I think the inclusion of Jeddah and Mecca is to lure the labour and religious traffics especially out of Indonesia (GA on the CGK-JED vv sector sometimes sees a double daily B744 flights. Lion Air purposely leased the 2 ex-Oasis B744s for their yet to be launched JED route). AirAsia would make a killing over these 2 Indonesian carriers if marketed properly.

 

Wonder why MH is not pursuing CGK/KUL/JED, SUB/KUL/JED, MES/KUL/JED? Indon workers are not worthy pax?

 

[Yusoff 1]

Wonder why MH is not pursuing CGK/KUL/JED, SUB/KUL/JED, MES/KUL/JED? Indon workers are not worthy pax?

 

MH wants to be truthfully Malaysian...

[flee 5]

It is incorrect to include Mecca and Jeddah in the advertisement, because all of the 4 destinations clearly under a big red headline 'UNITED ARAB EMIRATES' (which the last 2 are not). But for sure, those who are going into these 2 Saudi Arabian cities are probably the targetted market for the new KUL-AUH vv route (despite JED being 3 hours flight away from either DXB or AUH).

 

I think the inclusion of Jeddah and Mecca is to lure the labour and religious traffics especially out of Indonesia (GA on the CGK-JED vv sector sometimes sees a double daily B744 flights. Lion Air purposely leased the 2 ex-Oasis B744s for their yet to be launched JED route). AirAsia would make a killing over these 2 Indonesian carriers if marketed properly.

Yes, many people are not good at Geography!

 

I was told that Abu Dhabi/Dubai will be launching on 19 Aug. First flight 23 Nov.

[flee 5]

Just saw this on the AirAsia.com website. D7 launches its Abu Dhabi flights in November. Bookings open first to AirAsia Citibank card holders on 19 Aug. Public can book from 20 Aug.

[suadrif 0]

AirAsia X will start flights between Abu Dhabi and Kuala Lumpur in November 2009.

 

The Abu Dhabi Airports Company (ADAC) made the announcement after the long-haul budget airline confirmed a few weeks ago that it was setting up a second hub in the Gulf region.

 

The carrier’s inaugural flight will touch down at Abu Dhabi International Airport on November 23 and will mark the beginning of five flights per week from the Malaysian capital.

 

As a low-cost carrier operating during an economic downturn, AirAsia X is expecting the new route to be very popular, and an Airbus A340-300 configured for 256 seats in economy class will be deployed on the service.

 

Reaffirming the global drop in first and business class passengers, the carrier’s A340 will only hold up to 30 passengers in its premium class cabin.

 

“We are ecstatic with our first long-haul route into the Middle East from Kuala Lumpur,” said AirAsia X CEO Azran Osman-Rani.

 

“This clearly indicates that our expansion plans are on track, which represents our determination in providing truly low fares on our long-haul, low fare services across the globe.”

 

Osman-Rani added that the airline had plans to expand further into the Middle East.

 

“We foresee an increasing trend of UAE travellers flying to Malaysia for holidays; [we are] tapping into a very lucrative market.”

 

ADAC vice president of airline marketing and aeronautical revenue Mohammed Al Bulooki added: “Abu Dhabi aims to increase its reputation as the capital’s airport, and we continue to increase connectivity and the range and breadth of services we offer to our local community, as well as our customers from further afield.”

 

Abu Dhabi is the eighth long-haul destination for AirAsia X.

 

 

From http://www.arabiansupplychain.com/article-2853-airasia_x_announces_first_middle_east_route/

[Hon Kit 3]

A340 for this route. Which means no more A340 for TSN?

[flee 5]

A340 for this route. Which means no more A340 for TSN?

I don't trust this report. I suspect the newly delivered A333s will be deployed and XL seats will be lie flat. By November, D7 will have 2 new A333's, 9M-XXC and 9M-XXD.

[flee 5]

Here is another report saying A340's will ply the route: http://www.flightglobal.com/articles/2009/08/19/331189/airasia-x-launching-services-to-abu-dhabi.html

 

Perhaps it does make sense afterall. The route is longer than the TSN route and the seats are more comfortable on the A340-300. There are also fewer seats to sell, a good way to test the market. So maybe the reports are correct afterall!

[flee 5]

Apparently, the A343 was deployed because it had better seats. They will revert to the A333 when it has better seats than those non reclining ones...