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We don’t need aerobridges, AirAsia tells MAHB

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Just being kiasu and wanna max profits?

 

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We don’t need aerobridges, AirAsia tells MAHB

December 19, 2010

 

MANILA, Dec 19 — Budget carrier AirAsia Bhd has officially written to Malaysia Airports Holdings Bhd (MAHB) to inform that the airline does not require aerobridges at the upcoming permanent low-cost carrier terminal (LCCT) or KLIA 2, says group chief executive officer Datuk Seri Dr Tony Fernandes.

 

He said aerobridges would only add to the airline’s cost but suggested that aerobridges may be useful during wet weather.

 

Fernandes explained that AirAsia’s aim to remain a budget airline, offering the lowest fare for everyone, would be lost if cost goes up to the passenger. Ultimately, passenger will have to pay for any additional cost incurred by the airline.

 

“We have confirmed in writing to MAHB that we do not require aerobridges at KLIA 2. We have made our representation officially.

 

“But, we suggested six to eight aerobridges for use during wet weather. The airline will pay for the use of the aerobridge which will be charged accordingly by MAHB,” he told reporters here recently.

 

AirAsia previously resisted using aerobridges at the current temporary LCCT to keep its cost structure low and in keeping with its quick turnaround time.

 

Fernandes had on previous occasions echoed that “the solution would be to have some aerobridges so that if it rains very heavily, we can use it and pay for it then. I think our passengers still want lower fares”.

 

On another note, he suggested that the Economic Transformation Programme (ETP) also consider allowing other parties to operate airports. He proposed that low-cost terminals be built in Kuching, Kota Kinabalu, Penang and Langkawi as there was a need for such airports in these states.

 

Although the airline is heading the game in the budget airline industry, Fernandes said Asean was catching up and Singapore and Indonesia were already looking at more low-cost carrier terminals.

 

“I hope MAHB will not miss out on the opportunity,” he said, adding that what has been done in Kuala Lumpur should be replicated in other states.

 

“You can see the tremendous growth we have brought and the same economic growth can be generated in other states which will spur tourism and the state economy.

 

“I have started talks with MAHB on this but have not been successful but I hope they will re-look at it and see how crucial it is,” he explained.

 

Fernandes said if MAHB was not keen, there were many other interested parties who would want to build the terminals.

 

“Why can’t we have private terminals? They should open it up. If they don’t want to do it, let others do it, anyone would want to do it if you say AirAsia wants to fly. There’s no monopoly in any business in Malaysia,” he added.

 

AirAsia flies to 140 routes across 65 destinations and with over 400 flights daily. — Bernama

 

http://www.themalaysianinsider.com/business/article/we-dont-need-aerobridges-airasia-tells-mahb/?utm_source=twitterfeed&utm_medium=twitter

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sorry for being new here..but this guy is just being kiasu. there are rules and regulation in this world. why dont u just follow it mr fernandes like everyone else?

its good enough the goverment is building KLIA2 on the cost of the Malaysian tax payer's money

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how much would aerobridge costs add to your plane tix? a few sen? that's why we need firefly around.

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TF now very aggresive try to create own rules. After aerobridges, whatelse? MAHB should think their own profit too rather than follow TF rules.

Yup, that's why we need Firefly.

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how much would aerobridge costs add to your plane tix? a few sen? that's why we need firefly around.

 

:good:

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i just flew from incheon on akx. everything modern & efficient there - terminal and comfy aerobridge. land klia, gotta go down steep stairs and walked to terminal in the open. luckily no rain. apa ni?

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I hate not having an aerobridge! I'm sorry TF but you don't have the right to expect a new LCCT for your cheap-arse airline but reject having aerobridges. It's not just you that wants to maximise your profits. You might as well skip the aerobridges altogether (instead of having only 5 or 6 in case it rains).

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AK is using aerobridge in BKK, HAN, SGN, DAC, VTE, SIN, etc. It seems only in Malaysia that AK is not using aerobridge :sorry:

 

It is more likely that MAB is charging exorbitant price for the use of aerobridge.

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its good enough the goverment is building KLIA2 on the cost of the Malaysian tax payer's money

Actually they did not ask the govt. to build KLIA2 - they offered to build KLIA East @Labu but the govt. stopped them after first giving approval.

 

So MAHB knows that they need the LCC business and had to build KLIA2. Otherwise KLIA will be another white elephant.

 

Yup, that's why we need Firefly.

Not just Firefly - we need more LCCs to come to KLIA and compete with AK.

 

AK is using aerobridge in BKK, HAN, SGN, DAC, VTE, SIN, etc. It seems only in Malaysia that AK is not using aerobridge :sorry:

 

It is more likely that MAB is charging exorbitant price for the use of aerobridge.

I think MAHB mentioned RM 8 per pax sometime ago.

 

Well, AK has the most flights coming out of KLIA LCCT. At other airports, they operate fewer flights - so the impact on turnaround delays is not as big as it has on KLIA LCCC ops. If there are too many delays at LCCT, the pax will also complain since LCCT is really a dump, a refugee camp.

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Low Cost Terminal in LGK?? Has TF ever visited LGK to see what the place is like? Aircrafts are parked at open bays, there are no aerobridge to be used for any flight, baggage delivery system is at its simplest form, access from arrival and access to departure is only a short walk away, its everything he wants in a LCC terminal, so whats the point of building a dedicated LCC terminal in LGK?

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I think MAHB mentioned RM 8 per pax sometime ago.

 

Assume each gate is use for 6 flights per day and average 75 pax per flight, at RM8/pax, income for MAB will be about RM1.2 million per aerobridge per year :o India is known to have purchased aerobridge for about RM2 million per unit.

 

Why other airports can offer affordable aerobridge rate to AK but not MAB? :sorry:

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Low Cost Terminal in LGK?? Has TF ever visited LGK to see what the place is like? Aircrafts are parked at open bays, there are no aerobridge to be used for any flight, baggage delivery system is at its simplest form, access from arrival and access to departure is only a short walk away, its everything he wants in a LCC terminal, so whats the point of building a dedicated LCC terminal in LGK?

 

A dedicated terminal under its own 'brand name' to satisfy his own desire perhaps ........ <_>

 

 

:hi:

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this guy is just what we call a 'chancer' ..someone who pushes his luck to the max. stop being and10t, tony. really, i've had enough of your crap.

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AK is using aerobridge in BKK, HAN, SGN, DAC, VTE, SIN, etc. It seems only in Malaysia that AK is not using aerobridge :sorry:

 

It is more likely that MAB is charging exorbitant price for the use of aerobridge.

 

Is it true that MAHB charge exorbitant price for aerobridge use? Saw AK using the aerobridge in HKG when MH B734 only uses bus to transfer pax to the terminal.

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AK is using aerobridge in BKK, HAN, SGN, DAC, VTE, SIN, etc. It seems only in Malaysia that AK is not using aerobridge :sorry:

 

It is more likely that MAB is charging exorbitant price for the use of aerobridge.

 

Those places airport authority doesn't give AK a choice of it. Either leave it or take it! I also hate those 'customer' so KIASU and AJI -AJO a lot! Without AK, those airport still can survive!

Edited by Robin

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Fernandes: AirAsia does not need aerobridges as it may increase passenger fare

 

MANILA: AirAsia Bhd has informed Malaysian Airports Holdings Bhd (MAHB) that it does not require aerobridges at the new low-cost carrier terminal (LCCT) that is currently being built.

 

We have put in a writing to tell MAHB that we do not require aerobridges at the new terminal. We have made our representation officially, Group CEO Datuk Seri Tony Fernandes said after a signing ceremony to form a 40:60 joint venture with three Philippines partners Antonio O. Cojuangco Jr, Dr Michael R Romero and Marianne B. Hontiveros to set up AirAsia Philippines.

 

Fernandes said the usage of aerobridges would be a cost for AirAsia as the charges for the aerobridges were on per flight basis.

 

AirAsia flies to 140 routes across 65 destinations and with over 400 flights daily.

 

He said AirAsia's aim was to provide low fare for everyone and passenger might have to pay extra for the service.

 

However, he said the aerobridges could be used in terms of very bad weather.

 

If it rains very heavily, we can use it and pay for it then.

 

We suggested six to eight aerobridges for use during wet weather. The airline will pay for the use of the aerobridge which will be charged accordingly by MAHB, Fernandes said, adding that simple and adequate facilities were sufficient for the low cost carrier to operate in.

 

AirAsia was previously reported to be against the use of aerobridges at the new LCCT to keep its low cost model and in keeping with its quick turnaround time.

 

Fernandes explained that with aerobridges, the carrier may not be able to turnaround their flight within 25 minutes.

 

He said AirAsia usually opened up both its front and back exit for passengers to embark and disembark allowing it to turnaround faster against the front exit when using aerobridges.

 

Fernandes expects the new LCCT to be ready in 2013 although MAHB said it would be completed by 2012.

 

Separately, Fernandes opined that the Economic Transformation Programme (ETP) should consider allowing other parties to operate airports.

 

He proposed that low-cost terminals be built in Kuching, Kota Kinabalu, Penang and Langkawi as there was a need for LCCTs in these states.

 

Fernandes said Asean was fast catching up. He said Singapore was already expanding its LCCT and Indonesia was already looking at more LCCTs.

 

I hope, MAHB will not miss out on the opportunity, he said, adding that what has been done in KL should be replicated in other states.

 

You can see the tremendous growth we have brought and the same economic growth can be generated in other states which will spur tourism and the state economy.

 

Fernandes said it had started talks with MAHB but had not been successful so far.

 

He believes that if MAHB was not interested, other parties would want to build such LCCTs at other states.

 

Why can't we have private terminals. They should open it up. If they don't want to do it, let others do it, anyone would want to do it if AirAsia wants to fly.

 

There's no monopoly in any business in Malaysia, Fernandes said.

 

Meanwhile, AirAsia has clarified that it was currently evaluating its choices of airport between Subic International Airport and Clark International Airport as its hub in the archipelago.

 

AirAsia would be investing US$8mil for its 40% stake in Air Asia Philippines.

 

AirAsia would hold 40% equity in AirAsia Inc, the joint venture company set up for AirAsia Philippines. The new airline was expected to begin operations in August 2011 with an initial working capital of US$25mil.

 

OSK Research was optimistic with the long-term growth prospects offered by AirAsia Philippines.

 

Although the associate is expected to be loss making over the first few years, we are optimistic on the Philippines long term prospects, underpinned by the growing propensity for air travel, its archipelagic geographic landscape, the growth in the number of Filipinos working abroad and untapped tourism potential, it said.

 

The research house said despite the intensity of competition in the Philippine aviation space, it believes that there was still a lot of room for market share gain, notably in the international segment as AirAsia Philippines would be able to leverage on AirAsia's branding and comprehensive network.

 

OSK expects AirAsia Philippines initial start-up losses of an average net loss margin of 10%, which would be rather minimal over the immediate term as it would kick off with a small fleet.

 

However, we are confident that earnings could start trickling in after two years of operation given the experience gleaned from the setting up of its Indonesia and Thai associates, it added.

 

Source: http://biz.thestar.com.my/news/story.asp?file=/2010/12/20/business/7653942&sec=business

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from what im told, MAB charges RM8x (86 iirc) per a/b docking (aerobridge fee)...

..then there's the parking fee (park at the bay, doesnt matter open or aero-equipped)..this im not sure how much but something like aircraft weight category + RMx per hour

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Low Cost Terminal in LGK?? Has TF ever visited LGK to see what the place is like? Aircrafts are parked at open bays, there are no aerobridge to be used for any flight, baggage delivery system is at its simplest form, access from arrival and access to departure is only a short walk away, its everything he wants in a LCC terminal, so whats the point of building a dedicated LCC terminal in LGK?

You must remember, when you ask MAHB to build something, they will take a long, long time to get it done. By the time a LGK LCCT is completed, it may be some 10 years from now. AirAsia is quite capable of outgrowing the existing facilities if it decides to make LGK into one of its hubs. We can see how the KLIA LCCT is struggling to cope with traffic growth and how MAHB is struggling to expand and build new facilities to allow more growth.

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AIRASIA Bhd (5099) will not be using aerobridges at the new low cost carrier terminal (LCCT), KLIA 2.

 

Previously AirAsia co-founder and chief executive officer Datuk Seri Tony Fernandes had said there is a possibility the budget carrier would start using aerobridges at the new terminal following a proposal from airport operator, Malaysia Airports Holdings Bhd (MAHB) to do so.

 

Last week, Fernandes said its board had decided against using aerobridges at a meeting held on November 25 2010.

 

"We have, however, suggested that MAHB have between six and eight aerobridges available on a request basis, for use during bad weather," he told reporters in Manila last week.

MAHB is yet to get back to AirAsia on the request.

 

Fernandes said the cost of the aerobridges and the impact it would have on its turnaround time, is behind its decision.

 

Meanwhile, Asia's budget carrier guru, Fernandes, is propagating the establishment of more LCCTs in the country.

 

He said the country should have five LCCTs, in a move to cater to not only its growth but also the growth of the regional budget travel market.

 

"We hope that the authorities will consider this, because while we have been ahead of the game in low cost terminals, Asean is fast catching up. Indonesia is looking at more low cost airports and terminals."

 

"I'm hoping that Datuk Seri Idris Jala and Economic Transformation Programme team, will see how crucial it is for us to have more LCCTs in the country," Fernandes said.

 

He suggests that these LCCTs be in Penang, Kuching, Kota Kinabalu and Langkawi.

 

While Fernandes has communicated his thoughts to MAHB, he claims that he has not been successful in converting them to the idea.

 

"Financing for such an airport/terminal is not an issue. If the government or MAHB does not want to foot the bill, I'm sure private investors will. Just tell them that AirAsia will be flying there (the LCCTs)."

 

"The issue is opening up airports, if there can be private roads and private power plants, why not private airports?" Fernandes added.

 

Source: Aerobridges? No thanks, says AirAsia http://www.btimes.com.my/Current_News/BTIMES/articles/ptaa/Article/

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So now the airline is telling the airport what to do?

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So now the airline is telling the airport what to do?

KLIA's LCCT is a cash cow for MAHB - that was why the govt. retracted permission for Sime Darby/AirAsia to build their own airport at Labu. They know that if the LCCT business moved from Sepang to Labu, KLIA will definitely be a white elephant.

 

He is actually teaching MAHB how to make money and not let the neighbouring countries catch up with Malaysia. We already lost to SIN and BKK as a regional hub for legacy carriers. Now we have a chance to be a regional powerhouse for LCCs. He is merely telling MAHB that they should get off their fat arses and do something to maintain and increase Malaysia's leadership in LCCs and LCCTs.

 

Airports and airlines are partners - one cannot exist without the other. Instead of providing something the LCC does not want, MAHB should be more responsive to customer demand for what they want. MAHB should have realised this long ago. This is a cry of frustration by Tony Fernandes because MAHB is only fixated by show off features like aerobridges. LCCs need better basic facilities, not the bells and whistles.

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So now the airline is telling the airport what to do?

 

Hahaha, nowadays airline control airport and not airport control airline. Whatelse TF don't need?

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