Jump to content
MalaysianWings - Malaysia's Premier Aviation Portal
Sing Yew

Give us Sydney, not Pyongyang, says AirAsia X

Recommended Posts

Came across the article below on The Australian:

 

AirAsia offshoot seeks expansion to

Steve Creedy, Aviation writer | June 11, 2009

 

Article from: The Australian

 

AIRASIAX, the Kuala Lumpur-based low-cost carrier that recently offered return flights to London for as little as $700, wants to expand its footprint in Australia and is looking at Sydney as its next target.

 

The long-haul carrier flies to Australia, China and London and is an offshoot of Southeast Asia's biggest short-haul operator, AirAsia.

 

Fares from Australia's east coast to Kuala Lumpur start at $199 one-way. Sydney would be the carrier's fourth destination in Australia after Perth, the Gold Coast and Melbourne.

 

Its expansion plans come as low-cost carriers have steadily been increasing their share of the international market in and out of Australia while flagship carrier Qantas's slice of the action in March slipped to 23.1 per cent, down from 28.2 per cent in 2006. The latest government statistics show low-cost carriers in March accounted for 16 per cent of the overseas market, up from 11.1 per cent a year ago.

 

AirAsia chief executive Tony Fernandes said the airline was talking with both Sydney and Newcastle airports about servicing Sydney.

 

"In Australia we want to do daily to the Gold Coast, daily into Sydney and we still haven't done Darwin and Adelaide," Mr Fernandes said, adding that the airline would use a smaller A320 to service Darwin and offer flights for less than $100 one-way.

 

Mr Fernandes said AirAsiaX was getting a lot of through traffic to London on its services, especially from Melbourne and Perth.

 

He said the service was also attracting Australians returning from Europe and young travellers, most of whom were taking a break in Asia.

 

"If you look at the Australians coming in, 80 per cent appear to be using our network to go elsewhere," Mr Fernandes said. "So the symbiosis of AirAsia and AirAsiaX is working well."

 

Despite the economic downturn, Mr Fernandes said airlines were profitable in their most recent quarter and the second quarter also looked good.

 

He said both were benefiting from the crisis. As well as investment in expanding the AirAsia network, corporate business had shot up by about 500 per cent, although this was off a small base.

 

"I took my son to rugby practice the other day and there were four guys who came up to me and said they were all in the oil business," he said.

 

"They said we're using AirAsia all the time now and even using AirAsiaX down to Perth."

Share this post


Link to post
Share on other sites

Another option for travellers on the SYD-KUL sector. :) Though I wouldn't fly with D7 again after my utmost "memorable" trip ex-OOL and back. :p

Share this post


Link to post
Share on other sites
Let's hope that D7 choose SYD over NTL. It's the only way to piss off and further hurt MH's deteriorating market share to/from Sydney.

 

Competition is good. Keeps the airfares competitively priced.

Share this post


Link to post
Share on other sites
Competition is good. Keeps the airfares competitively priced.

 

Yep, agree with you totally :good: :yahoo:

 

If AK to DRW, can go fishing for Barramundi! :yahoo: It is a shame that KUL/CNS is beyond AK 320 range else CNS is another excellent place for fishing :good:

 

:drinks:

Share this post


Link to post
Share on other sites

More like Newcastle I doubt Sydney Charles Kingfsford somone mentioned Cairns which would be good as they will compete with JetStar ON jAPENESe SECTORS. bUT i belive CNS is profitable with 737's as they nhave range or 757 as you will get lots of budget travellers wanting to go to the great barrier reef. :rolleyes:

Share this post


Link to post
Share on other sites

QUOTE

Long-haul budget airline AirAsia X has been denied permission to fly to Sydney and Seoul due to a row between the Malaysian government and its sister carrier AirAsia, a news report said.

 

The refusal has forced AirAsia X to scramble to make new plans to utilise the three new Airbus A330 aircraft due for delivery this year, the Star daily said today.

 

"We had asked for rights to fly to Sydney and Seoul, and the government decided to defer granting us the approval," AirAsia X's chief executive officer Azran Osman-Rani reportedly said.

 

He said the government first wanted AirAsia to settle the issue of an outstanding 65 million ringgit ($A22.45 million) payment for airport services with Malaysia Airports Holdings before giving the green light.

 

"The dispute is between the two (AirAsia and MAHB), but delaying us from flying into these two destinations will not help travellers who have limited choices," Azran told the daily.

 

"We know the Koreans are keen to have us, and both the airports - Sydney and Seoul - welcome us," he added.

 

AirAsia was not immediately available to confirm the reported comments.

 

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.

 

AirAsia X currently flies to three Australian destinations - the Gold Coast, Melbourne and Perth.

UNQUOTE

 

.

 

What the CEO said is very true, about MAHB is trying to woo back Qantas & Jetstar back to KLIA although chances is very slim in current economic while AirAsia X wants to fly to Sydney, they being stopped from doing so becoz of conflicts between AirAsia and MAHB. What a shallow decision.

 

Also on another mail article which published yesterday by The Star, it also mentioned AirAsia X started the process but not officially submitted request for flights to USA eyeing mainly on New York, Los Angeles and San Francisco. Why don't they include Las Vegas & Hawaii as well, am sure there is market for these sectors, or maybe not.

 

What about Canada?

 

Speaking of which, why don't MAS relaunch flight to Canada?

 

While the CEO mentioned in Feb, countries such as France, Germany, Italy & New Zealand, anyone knows of any progress of these sectors. Have they started the process applications?

 

They would need at least 5 A340-300s for these routes as said by the CEO however I would reckon they would need more than just 5. Since Air Canada's CEO Robert Milton has shares in AirAsia X, he should just lease all Air Canada's A340s to AirAsia X, hehe..

 

Anyway, sorry for the long thread, aprpeciate any opinion or status updates to the above if anyone knows.

 

Lastly, I am hoping very much they will be granted rights to fly to Sydney as soon as possible as then, I can afford to fly home to see my parents more often :clapping:

Share this post


Link to post
Share on other sites

"I don't give simply because I don't feel like giving." :angry:

Share this post


Link to post
Share on other sites

AirAsia, MAHB may settle dues row soon

 

KUALA LUMPUR, July 29 — A three-year dispute between budget carrier Air-Asia and Malaysian Airport Holdings Bhd (MAHB) over unpaid dues could be settled soon, after the airline's chief executive Datuk Tony Fernandes met Prime Minister Datuk Seri Najib Razak.

 

MAHB, which owns and manages most of Malaysia's airports, has a string of differences with the budget carrier. They include the location and cost of a new budget terminal and — most importantly from AirAsia's point of view — the fees it charges.

 

Fees have been a bone of contention since AirAsia moved into the current budget terminal next to Kuala Lumpur International Airport.

 

Airline executives say no rental agreement has been signed because Air-Asia says MAHB's charges are too high. As a result, MAHB insists AirAsia owes it RM103 million.

 

The dispute has hurt the airline. A month ago, the government turned down a request from AirAsia X — the carrier's long-haul unit — for the rights to fly to Seoul and Sydney. No written rejection has been forwarded to AirAsia but the decision has been conveyed verbally to AirAsia X.

 

This is a blow to the airline, which was counting on the new routes to use new planes that will be delivered this year.

 

“The government has decided to defer granting us approval,” AirAsia X chief executive Azran Osman-Rani said in The Star newspaper yesterday.

 

“They want AirAsia to settle its dues with MAHB,” he said. “It is a high-profile issue. But we are AirAsia X — not the ones that owe MAHB money for airport services. Every invoice we receive is paid within 30 days.”

 

Fernandes met Najib last Friday to discuss the situation. According to a government official, the talks were amicable but Fernandes was urged to settle the “dues” issue.

 

The airline's executives said AirAsia is awaiting MAHB's confirmation in writing of the amount owed, before proceeding with the matter.

 

But it is not clear whether AirAsia X will get the Sydney and Seoul routes even if AirAsia does settle its dues.

 

According to the executives, objections to AirAsia X were also raised on the grounds of giving national carrier Malaysia Airlines more time to prepare itself for the competition. — Business Times Singapore :pardon:

 

http://www.themalaysianinsider.com/index.php/business/33634-airasia-mahb-may-settle-dues-row-soon

 

:drinks:

Share this post


Link to post
Share on other sites

What about Canada?

 

Speaking of which, why don't MAS relaunch flight to Canada?

Canada remains one of the last forefronts of protected markets in the developed world. If they [Canada] have raised a ruckus over Emirates operating into YYZ, what makes you think they would even consider D7? And as for MAS making a return into Canada, it would be close to impossible for now unless they can somehow make a miracle and start churning money from flying trans-Pacific routes.

 

According to the executives, objections to AirAsia X were also raised on the grounds of giving national carrier Malaysia Airlines more time to prepare itself for the competition. — Business Times Singapore

You are kidding... Someone actually went on record to say that MAS wasn't "ready for competition"?

  • Like 1

Share this post


Link to post
Share on other sites

You are kidding... Someone actually went on record to say that MAS wasn't "ready for competition"?

 

At least he's being honest :good:

  • Like 1

Share this post


Link to post
Share on other sites

What about Canada?

 

Speaking of which, why don't MAS relaunch flight to Canada?

 

 

Besides the codeshare with Canadian Airlines, did MAS fly to Canada before? I can hardly remember those old routes. I've read that they once flew to Mexico City and Hawaii, but I always thought the service to Vancouver was flown by Canadian Airlines

Edited by Mohd Suhaimi Fariz

Share this post


Link to post
Share on other sites

Giving MAS more time to prepare for competition? A star airline should be prepared by now.

What IF Qantas/Jetstar decided to fly to KLIA within a month, do the Government says, Hang on you can't start

within a month as MAS is not ready!!

 

Seriously, if AirAsia X is an Australian airline brand or even in Spore or HK, it would be damn bloody succesful.

  • Like 1

Share this post


Link to post
Share on other sites

Giving MAS more time to prepare for competition? A star airline should be prepared by now.

What IF Qantas/Jetstar decided to fly to KLIA within a month, do the Government says, Hang on you can't start

within a month as MAS is not ready!!

 

Seriously, if AirAsia X is an Australian airline brand or even in Spore or HK, it would be damn bloody succesful.

Yes, welcome to Malaysia, a land which is not a level playing field to begin with.

 

Not sure if Air Asia X would be highly successful as claimed, as Oasis HK went bust and it was a real life HK based scenario.

 

Singapore may seemed to be a high degree of level playing field, but so far Temasek (the Singapore government's investment arm) has been the only major player in the game and one can only imagine what will happen if the status quo of Temasek is seriously challenged.

Edited by S V Choong

Share this post


Link to post
Share on other sites

Air Asia could consider making TPE as its far east hub because TPE is now seriously competing with Pudong vs Xiamen. Taoyuan where TPE is located is being gazetted by local gov't into an aeroport city with various incentives, plus costs are comparable to Pudong/Xiamen. Japanese airports are heavy on costs side. They could consider TPE-HNL and onward into LAX or SFO.

Share this post


Link to post
Share on other sites

If the government and MAHB continues to muck AirAsia and AirAsia X around, they must surely be considering moving the operational headquarters out of KLIA LCCT to somewhere more business friendly to their requirements. Of course, AirAsia X may be less forgiving and tolerant because it has more foreigners as their shareholders. If the govt. is not careful, it will be driving Malaysian businesses offshore, just as it has driven its best brains and human resources offshore.

Share this post


Link to post
Share on other sites

Not sure if Air Asia X would be highly successful as claimed, as Oasis HK went bust and it was a real life HK based scenario.

Oasis and Air Asia X operate under very different environments. Oasis' demise was a lack of feed into it's 100% long haul routes. Air Asia X's position is such where it can tap on Air Asia's feed (well, technically not a feed FEED... But there is a ready pool of pax) from the domestic and nearby region into KL LCCT to buff up the numbers.

 

Oasis had NOTHING. They plunged straightaway into the ocean for a 20mile swim with the likes of BA, CX and AC. Naturally they would drown.

Edited by Ryan Soh

Share this post


Link to post
Share on other sites

They owe MAHB money, if they can't settle it, well there are consequences. Life not that easy ya.

Edited by Seth K
  • Like 2

Share this post


Link to post
Share on other sites

... just as it has driven its best brains and human resources offshore.

 

No lah, still many 'best' ppl around. Nobody is indispensible.

Share this post


Link to post
Share on other sites

No lah, still many 'best' ppl around. Nobody is indispensible.

Hehehe, but I'd rather work with people smarter than me. Unfortunately, there are too few of them left in this country, and I am not that smart either.

Edited by flee

Share this post


Link to post
Share on other sites

SV Choong, the point made by Ryan Soh is spot on as Tony himself mentioned this before. Hence AirAsia X would be succesful.

How are you by the way, still in Melbourne.

 

As for Malaysia trying to achieve the Vision 2020, with decision like this perhaps it should be Vision 2090. And recent issue on subjects whether

to be taught in English or Bahasa, back and forth..it basically simple decision yet it goes on forever. By spending so much time on crap like this, don't Malaysia is ready for Vision 2020.

 

Anyway, back on track as long as both parties (AirAsia & MAS) play fair in terms of fair competition, it's healthy for the airlines as well as the country. Both are Malaysian companies which all Malaysians shold be proud of. Can you imagine if AirAsia X flies to Sydney, how much revenue it will bring with it to the country in terms of tourism etc...

 

To all readers: I may know some of you while others I don't hence let me be upfront on threads I posted. I was born in Malaysia and loved the country as this is where my roots started. I like both MAS and AirAsia/X as it's both Malaysia companies and both have done Malaysia very proud in terms of service, one of only 6 airlines with 5 stars, largest low cost airlines etc...

 

Obviously there are others that dislikes both airlines which is not uncommon, as some dislikes prestige airlines like SIA too.

 

I am terrible at expressing things but what I am saying is that it frustrates me big time and being a Malaysian living abroad, I like to be able to promote these two airlines to friends both in Sydney, Australia and New York, USA where these two cities are my country of residence now.

 

AirAsia X has officially submitted application to fly to New York, so I like to do my part in promoting this as I don't mind as my hobby is aviation, obviously. I have done similar promotion to friends in Australia and so far, few have tried using AirAsia X flying out from either Melbourne, Brisbane or Perth. Well, some says I don't get paid by AirAsia for this 'free' advertisement for this airline, why promotes so much? Well, why not.

 

Maybe AirAsia X can offer me a job here in Australia.

 

End of the day, what I am really trying to say is that please don't feel upset/angry or think that I am bias or anything. Don't get my message the wrong way, thanks all.

Share this post


Link to post
Share on other sites

Besides the codeshare with Canadian Airlines, did MAS fly to Canada before? I can hardly remember those old routes. I've read that they once flew to Mexico City and Hawaii, but I always thought the service to Vancouver was flown by Canadian Airlines

I believe it was thrice weekly YVR-TPE-KUL-TPE-YVR on D10.

 

 

Not sure if Air Asia X would be highly successful as claimed, as Oasis HK went bust and it was a real life HK based scenario.

There was a major flaw with the Oasis' business model. They were trying to sell tickets like a low cost carrier but at the same time, they were trying to be BA, LH etc. They were doomed to fail. It was only a matter of time.

 

Anyways, i am also a bit skeptical just how successful D7 would be as constantly, their air fares seem to be on par or more expensive than traditional full service carriers unless they are having a sales. Otherwise one rarely sees a really competitive air fare offered by D7. The PTV on every seat is also an overkill for a low cost carrier like D7. But time will tell :drinks:

 

 

Singapore may seemed to be a high degree of level playing field, but so far Temasek (the Singapore government's investment arm) has been the only major player in the game and one can only imagine what will happen if the status quo of Temasek is seriously challenged.

Every countries have their own sovereign wealth funds companies. Malaysia, China, USA are no exception either.

 

Temasek is not the only investment firm for the Singaporean government. There is another bigger one named Government of Singapore Investment Corporation (GIC) but not as well known as Temasek.

 

Airlines can really compete competitively in Singapore. Just look at how many airlines are flying into Changi and basically all SIA routes are under threat yet they are still doing fine. You are out if you are slow to adapt. While i agree that Singapore is not for everyone and its citizens are not exactly big fan of the government, but they must have done something right that many people still are seeking for Singapore PR. Even Jet Li is "fleeing" USA and going to migrate to Singapore soon. Singapore is also posed to take over Hong Kong's status as Asia's financial centre but of course we all know that the title will eventually goes to Shanghai.

Edited by Isaac
  • Like 1

Share this post


Link to post
Share on other sites

Can D7 fly to Sydney or Seoul directly from SIN? That ought to piss off the Government. :p

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

×
×
  • Create New...