Fernandes: Illogical to move us to KKIA

[flee 5]

It will work both ways.. People to connect to his airlines as well, vice versa.

Those who fly legacy carriers might be reluctant to connect to LCCs unless there is no choice. So they might feed more pax to legacy carriers than they get from them. LCCs work on very thin margins, so every pax counts!

[BC Tam 2]

(1) What cannot be disputed is that since AirAsia started promoting BKI in a big way 3 or 4 years ago, traffic to BKI has escalated in a big way

(2) What he is not happy about is that despite contributing to BKI's growth, they failed to listen to his concerns

(3) I am sure that he will comply in the end, if forced to

(4) But he will probably let the market do the talking

(5) If business slows down due to higher prices of tickets, he will be ruthless in cutting the flights and routes

(6) AirAsia does not have taxpayers to bail them out of any losses.

(1) No dispute, well done AK and Dato TF

(2) Even with a bed of roses you have to contend with the thorns within - life is such

(3) What is point of forcing - there is the chinese saying regarding futility of forcing a buffalo's head down if it doesn't want a drink of water

(4) Principle has worked well thus far, keep listening. More crucially, respond appropriately to what you hear

(5) And ruthlessly he should do so - but be certain it's actually due to higher prices of tickets and not justification to remedy anyone's bruised ego

(6) Thank goodness ! At least that is the impression we have been served anyway

[Josh T 0]

I think most people are missing the point here. MAB upgraded KKIA with the understanding that AK will move to T1 so that the airport could handle more passengers and provide better services for passengers at the airport and that move would also allow the conversion of T2 to a proper cargo terminal. Now that the airport is completed, AK doesn't want to move. It's like me ordering something and then, when it arrives, I decide I don't want it because it's too expensive even though I knew it would be when I ordered it in the first place. AK may be a private company but TF's antics over KKIA is also wasting taxpayer's money.

[Michael Chai 0]

Talking to the point of moving AK to KKIA, for my confusion, Why does AK can stop its destination in KIA which is also new terminal as well compared to KKIA? Same principle of using new terminal but only that AK seldom use aerobridges? <_ with same tax too src="%7B___base_url___%7D/uploads/emoticons/default_blink.png" alt=":blink:">

Edited February 17, 2011 by Michael Chai

[Cheng Long 0]

I think most people are missing the point here. MAB upgraded KKIA with the understanding that AK will move to T1 so that the airport could handle more passengers and provide better services for passengers at the airport and that move would also allow the conversion of T2 to a proper cargo terminal. Now that the airport is completed, AK doesn't want to move. It's like me ordering something and then, when it arrives, I decide I don't want it because it's too expensive even though I knew it would be when I ordered it in the first place. AK may be a private company but TF's antics over KKIA is also wasting taxpayer's money.

 

Deputy Transport Minister Datuk Abdul Rahim Bakri said his ministry was surprised by Fernandes’ stand on the matter as AirAsia had signed a letter of undertaking with the ministry concerning the relocation to Teminal 1.

 

Yup, that's right. They did sign the letter implying to others that they agree to move. But when the terminal is completed, they throw up a ruckus not to move. That's very irresponsible.

[flee 5]

Talking to the point of moving AK to KKIA, for my confusion, Why does AK can stop its destination in KIA which is also new terminal as well compared to KKIA? Same principle of using new terminal but only that AK seldom use aerobridges? <_ with same tax too src="%7B___base_url___%7D/uploads/emoticons/default_blink.png" alt=":blink:">

I think I know why - KIA is not a hub and has fewer flights and marginal routes.

 

Now that FY is also competing with them, the KKIA hub status may be under threat. That is probably why they are having second thoughts about moving from T2.

[BC Tam 2]

Makes you wonder what could have transpired in between Dato TF (in all his wisdom) signing that letter of undertaking, apparently only a few months ago, and this new tantrum session

 

There is also the carrot being dangled that should AK be allowed to remain at T2, even better still make it bigger, they will mount all sort of exotic routes ex-BKI (US of A ?) Assuming this option is arrived at, how are we going to ensure AK keeps to its promises - get Dato TF to sign another letter of undertaking ?

[Waiping 12]

Just a thought. Can the T2 handle the A330 and maybe, just maybe, an A340?

[BC Tam 2]

Just a thought. Can the T2 handle the A330 and maybe, just maybe, an A340?

We've had A300's, DC10's and Tristars there before, and that was pre-rebuild

Maybe need to draw a few new lines on the ground ?

[dean hizudy 0]

I think I know why - KIA is not a hub and has fewer flights and marginal routes.

 

Now that FY is also competing with them, the KKIA hub status may be under threat. That is probably why they are having second thoughts about moving from T2.

They should thinking of that before they signed the letter to agree move to T1

Edited February 17, 2011 by dean hizudy

[flee 5]

They should thinking of that before they signed the letter to agree move to T1

Do you know when this letter was signed? Was it signed before or after FY announced their decision to fly jets from KUL?

 

Since LCC margins are never going to be as good as legacy carriers, FY's decision to become a LCC can tip the balance on whether BKI remains a hub. I think AirAsia probably wants some clarity of the impact of FY's operations on its bottom line. Relocating a hub has higher costs associated with it - so the move is not as simple as just taxiing the planes to T1.

[benz 0]

KKIA is a hub to how many airlines?

MH, FY and AK?

FY sharing resources with MH as a hub?

[dean hizudy 0]

Do you know when this letter was signed? Was it signed before or after FY announced their decision to fly jets from KUL?

 

Since LCC margins are never going to be as good as legacy carriers, FY's decision to become a LCC can tip the balance on whether BKI remains a hub. I think AirAsia probably wants some clarity of the impact of FY's operations on its bottom line. Relocating a hub has higher costs associated with it - so the move is not as simple as just taxiing the planes to T1.

 

Seriusly, i think this has no relationship with FY. It just AK/TF doesnt want to operate at main terminal building eventhough there is no FY operating there. Remember, TF also urged MAHB to build more LCCT at others Malaysian airport which is not the FY's hub such as LGK.

[Waiping 12]

I thought CGK-BKI-CGK flights are confirmed being axed from Apr 2011?

 

Seems like BKI-CGK not bookable from April onwards.

[Mike P 0]

At KKIA, besides Carousel A & B, C & D are not utilised at all... Kinda a waste though.... KIA just recently able to utilise all the Carousels...

[BC Tam 2]

At KKIA, besides Carousel A & B, C & D are not utilised at all... Kinda a waste though.... KIA just recently able to utilise all the Carousels...

Carousels or the check-in islands at KKIA ?

Yes, you'll likely soon hear (the now familiar) chorus about 'congestion' at KIA and demands for another round of expansion/redevelopment, better still relocation

[Zamir 0]

Here the link

 

AirAsia too good to last for Sabah, Sarawak

 

Commuters in Sabah and Sarawak will pay a heavy price if AirAsia is forced out of the market.

 

Sabahans and Sarawakians are increasingly convinced that AirAsia was too good a story to last for them after their being held to ransom by Malaysia Airlines (MAS) since 1963.

They fear that MAS, in cahoots with Malaysian Airports Bhd (MAB), will use their political connections to do a number on AirAsia in their two states and to their detriment. All the signs are there given declining profits at MAS.

Consider the fact that the National Cabotage Policy (NCP) continues to keep prices in Sabah and Sarawak at a much higher level than in Peninsular Malaysia despite constant calls for its abolishment.

A little container of Olive Grove olive oil spread, for example, costs just RM4.50 at the TMC Mini Market in Kuala Lumpur’s Bangsar area. The same product retails at a price three times as much at a supermarket in Kota Kinabalu and six times over at an outlet for expatriates and well-heeled foreigners.

At the same time, wages in both states are very much lower than in the rest of the country. The NCP has also been responsible for holding back the economic development and industrialisation of Sabah and Sarawak. Not surprisingly, the World Bank listed the two states last year as the poorest and second poorest states in the country.

If the federal government is not willing to budge on the NCP, despite the poverty figures and under-development, it’s unlikely to budge on AirAsia in favour of the long-suffering air commuters in Sabah and Sarawak.

Already, the warning signs have come with the refusal of AirAsia to move from its present no-frills location at Terminal 2 to the newly-upgraded Terminal 1 of the Kota Kinabalu International Airport (KKIA) . The move, if it takes place at all by the June 1 deadline, will entail a doubling in passenger service costs alone for the airline from the current RM25 to RM51.

Besides, Air Asia has warned that forcing it to move to Terminal 1 will see a drop in Sabah’s present tourist arrivals by some one million and further deprive the state of over two million new tourists.

 

Intense lobbying

 

Earlier, AirAsia was forced to abort its direct China-to-Sibu flights in the face of intense lobbying by MAS. The airline has also suspended or cancelled direct flights between Kota Kinabalu and Labuan, Bandar Seri Begawan, Bangkok and Jakarta.

The national flag carrier is also preventing the budget carrier, Southeast Asia’s largest, from flying to Sydney and New York. The last is a city that MAS abandoned after many fruitless years. Nevertheless, it continues to pursue its “dog in the manger” approach in matters which involve AirAsia.

In fact, Sabah and Sarawak were one of the reasons why Tony Fernandes was emboldened to venture on AirAsia. Fernandes realised, upon his return from London after a stint with Richard Branson’s Virgin Airlines, that MAS was “charging passengers a month’s salary to fly them from one part of Malaysia to another”. He decided that this could not be allowed to go on and came up with his famous tagline, “Now everyone can fly”. The rest is history.

In between Malaysia and the advent of AirAsia, MAS indirectly or directly forced the closure of Borneo Airways and Seaga Airlines in Sarawak. It has also prevented Hornbill Skyways Sarawak and Sabah Air from taking off in any big way in the region. The latter two have been forced to confining themselves to heli logging, flying doctor services, air ambulance, providing air services support for state government officials and politicians and the like. They can’t get even a slice of the annual haj traffic to Mecca, at least from Sabah and Sarawak, and the umrah flights.

Moving forward, AirAsia sees a bleak picture emerging in Sabah and Sarawak for itself. As further insurance, it has decided to initiate the formation of AirAsia Philippines (AAP). AAP, along with other AirAsia subsidiaries in Southeast Asia, will play a crucial role in protecting the company from politicians in Putrajaya who have long cast covetous eyes on it. AAP, in that sense, will join AirAsia Indonesia and AirAsia Thailand. There are also plans for AirAsia Vietnam, AirAsia China and AirAsia India to deter the itchy fingers in Putrajaya.

The emergence of various AirAsia subsidiaries will ensure that the mother company in Malaysia will be better cushioned against various setbacks created for it, from time to time, by politicians in Putrajaya.

No transparency

All this may mean that AirAsia lives to fight another day. But they mean nothing by way of assurances for the air commuters in Sabah and Sarawak.

As it stands, air ticket costs are expected to go up in Sabah and Sarawak if the government continues to knock AirAsia in Sabah and Sarawak. This will take a toll on students and their parents, the business community and tourists.

KK-Labuan-KK, for example, used to be RM50 or less return when AirAsia was serving the sector. Now, with the exit of the airline from this sector, the airfare for the 25-minute flight is RM300 or more whether from MAS or its subsidiary MasWings.

With the politicians having a hand in MAS, there’s anything but transparency in the award of contracts by the national flag-carrier. Many still recall the disclosure in Parliament not so long ago that a nasi lemak on board MAS, incorporated in the ticket price, was RM150 per serving. The resultant public hue-and-cry brought the price down to RM75 but this is still very steep even by the best international five-star chain hotel standards.

If MAS is to be brought to heel, AirAsia has to remain relevant in Malaysia, especially in Sabah and Sarawak. There is no way out from these two states except by air.

[Walter Sim 1]

Wonder where the writer gathers his information, always thought the axed routes in Sabah and Sarawak and more of economic reasons

Edited March 1, 2011 by Walter Sim

[Mike P 0]

Carousels or the check-in islands at KKIA ?

Yes, you'll likely soon hear (the now familiar) chorus about 'congestion' at KIA and demands for another round of expansion/redevelopment, better still relocation

 

Sorry, not the Carousel (supposed to be the one for baggage claims), it's the checked in counters... I do wonder if the checked in counters in KIA would be sufficient if Firefly continues to expands its wing to KCH, Firefly would make 9 flights daily to KCH in June soon...

 

Pertaining to Zamir's post, if it was verified true... It's just so politic... if the Government keeps protecting MAS because it's GLC, does it apply on Telekom Malaysia, too?

 

I hardly hear about the unfair competition between TM and other Telco companies due to the intervention by the Govt..

[BC Tam 2]

I do wonder if the checked in counters in KIA would be sufficient if Firefly continues to expands its wing to KCH, Firefly would make 9 flights daily to KCH in June soon...

Trendy thing to implement nowadays is those self check in kiosks - so you may find in time to come that the classic check in counters become less and less in demand, especially when the 'check in fee' is imposed (make no mistake, the fee will come, everyone is waiting for the opportune time)

[Mike P 0]

Trendy thing to implement nowadays is those self check in kiosks - so you may find in time to come that the classic check in counters become less and less in demand, especially when the 'check in fee' is imposed (make no mistake, the fee will come, everyone is waiting for the opportune time)

 

Not unless Firefly can integrate their checked in system with MAS's... Firefly still doesn't have the mobile or online checked in facility yet!

[flee 5]

if the Government keeps protecting MAS because it's GLC, does it apply on Telekom Malaysia, too?

 

I hardly hear about the unfair competition between TM and other Telco companies due to the intervention by the Govt..

OT:

Telco industry is tightly controlled by MCMC (Govt agency) just like aviation is controlled by DCA/DoT.

 

TM still has a near monopoly for the major infrastructure and last mile facilities and other telcos like Maxis only has a very small share of the market. However, there are a few players in the industry and already, controversy about the award of the broadband and IPTV to Yes! has been going on recently.

 

Lets just say that whenever the govt. meddles with business, a mess is usually the result. So the telco industry is in the same boat as the aviation industry.

[Zamir 0]

Source

[Cire 0]

..typical of the Msian business scene where bully tactics are employed for the "benefit of others".

I doubt this would happen if the companies belonged to some cronies or relative of some big shots..sigh..

[Mohd Suhaimi Fariz 2]

..typical of the Msian business scene where bully tactics are employed for the "benefit of others".

I doubt this would happen if the companies belonged to some cronies or relative of some big shots..sigh..

 

Well, how do you know it's not the other way around though?