Fernandes: Illogical to move us to KKIA

[flee 5]

I do wonder what is worse - a privately funded company trying to make a success of its business or a GLC requiring taxpayers' bailouts from time to time. I am just thankful that should AirAsia collapse, only the banks and shareholders will suffer directly. Of course, the taxpayer is impacted indirectly as there will be no more tax collections from them.

 

I do think the TF is just doing his typical stuff - fight for what he wants. Things have never come on a silver platter for AirAsia - they had to work hard for everything. He won't go down without a good fight! I think this would mean that AK would probably scale down their expansion plans for BKI as they start to get AirAsia Philippines up and running. There is more than one way to skin a cat.

[Samuel Chy 0]

if AK move out from BKI, then can MH and FY increase their frequency on KUL-BKI vv.?

or when AK make Labuan as their hub, so MH, MH3 and FY also can increase their BKI-LBU vv. flights to cater their 1 million pax into LBU?

[Mushrif A 3]

TF seems to always be very economical with the truth...of late, he seems to be that boy that cried wolf once too often.

Edited February 15, 2011 by Mushrif A

[Alif A. F. 0]

What will happen to BKI post June 2011? Will AK move to Terminal 1 (Or stay at terminal 2). Will domestic routes be affected?

[Cheng Long 0]

I do wonder what is worse - a privately funded company trying to make a success of its business or a GLC requiring taxpayers' bailouts from time to time. I am just thankful that should AirAsia collapse, only the banks and shareholders will suffer directly. Of course, the taxpayer is impacted indirectly as there will be no more tax collections from them.

 

Guess the issue is more that of whether TF is making a reasonable demand.. Most people don't seem to think so..

I personally would prefer them to move to T1. It will make life more convenient to connect to other airlines for instance.

[flee 5]

I personally would prefer them to move to T1. It will make life more convenient to connect to other airlines for instance.

Well I am not sure TF wants to deliver pax to other airlines. He has shown quite clearly he prefers all pax to connect within the AirAsia networks! Perhaps that was the bigger picture that he was looking at!

[Ahmad M 1]

If that's true than it seems TF doesn't want competition which I find a little bit ironic.

[flee 5]

If that's true than it seems TF doesn't want competition which I find a little bit ironic.

Yes, it may appear to be the case. However, he will probably claim that he is not competing directly, route by route. He competes on an airline to airline basis - like which airlines offer more choice of destinations, more frequency, lower bottom line fares, etc.

 

Why does AirAsia fly into Changi's T1 instead of the budget terminal? That is what the BKI authorities should ask him. Why not do in BKI what he is doing in Changi?

[flee 5]

From Bernama:

 

KOTA KINABALU, Feb 15 — State Tourism, Culture and Environment Minister Datuk Masidi Manjun has asked low-cost carrier AirAsia to consider national interest and not just profit when relocating operations to Kota Kinabalu International Airport Terminal 1.

 

He urged the Transport Ministry and the budget airline to settle the matter amicably.

 

“Airasia has some good points, but I think they also need to look into the rationale, the points raised by the government. If the issue is cost, I'm sure the government will be more than happy to discuss.

 

“Being a low-cost airline, I know AirAsia wants to be efficient and want to cut cost, but we have to consider national interest than just profit,” he told reporters when commenting on AirAsia Group chief executive officer Datuk Seri Tony Fernandes' remark last week that the airline was reluctant to move from Terminal 2, where AirAsia is currently operating now, to the newly-expanded KKIA Terminal 1, as costs would increase and force the airline to reduce flights, causing Sabah to lose some one million tourists.

 

The Terminal 2 is to be converted for cargo handling.

 

Deputy Transport Minister Datuk Abdul Rahim Bakri had responded, saying the ministry was surprised by Fernandes’ remarks as AirAsia had signed an undertaking letter with the ministry to shift its operations to Terminal 1.

 

He said the Kota Kinabalu International Airport has been upgraded at a cost of RM1.6 billion to cater for airlines’ needs and growth.

[Isaac 0]

Talking of jokers

(scanned from our local daily this morning)

Stupidity taken to a whole new level.

[Cheng Long 0]

Well I am not sure TF wants to deliver pax to other airlines. He has shown quite clearly he prefers all pax to connect within the AirAsia networks! Perhaps that was the bigger picture that he was looking at!

 

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

[Cire 0]

Move in the name of national interest? But when it comes to getting some lee-way from the government, it is all business.

Why in the first place AK go into F1? National interest. And then when Proton/Lotus appears, "you go and sort it out among yourselves".

 

Who's being played and who's being shrewd here?

 

I say AK continue to fight on based on good business sense, as it had help developed the route, and the steady flow of passengers traffic ensure AK's route continue to get in revenue.

 

The news' prints clearly said AK's have some positive points.

 

 

National interest? IMHO, its more of a political show case for the coming GE12.

[Waiping 12]

Connecting flights with AK is a risky business, no? Despite offering some connectivity for limited routes lately they still haven't shed the point-to-point airline principle.

[Josh T 0]

Connecting flights with AK is a risky business, no? Despite offering some connectivity for limited routes lately they still haven't shed the point-to-point airline principle.

And that is something I find highly irritating and a good enough reason not to fly airlines that have that kind of philosophy. Funny how D7 had to offer connectivity at KUL because I'm sure lot of passengers would have complained about it.

[flee 5]

Funny how D7 had to offer connectivity at KUL because I'm sure lot of passengers would have complained about it.

I have been following this development closely.

 

Aussies are an adventurous lot of people and those who are not so well off are now taking foreign holidays (instead of domestic) because they can now afford it when flying with D7. D7 is bound by Aussie law to advertise their NET fares - so there are few gimmicks over there. Just look at forums like Tripadvisor and you will see that D7 has a big following there.

 

I don't think it is due to complaints because LCC pax are are hardy lot, especially those from Oz - they have been self connecting since they found the fares on D7 to be more pocket friendly. I think D7 is just trying to maintain or increase their passenger loads on the European and China services from Australia.

 

Move in the name of national interest? But when it comes to getting some lee-way from the government, it is all business.

Why in the first place AK go into F1? National interest. And then when Proton/Lotus appears, "you go and sort it out among yourselves".

 

Who's being played and who's being shrewd here?

 

I say AK continue to fight on based on good business sense, as it had help developed the route, and the steady flow of passengers traffic ensure AK's route continue to get in revenue.

 

The news' prints clearly said AK's have some positive points.

 

 

National interest? IMHO, its more of a political show case for the coming GE12.

Frankly, when govt. and politicians get involved in business, it is bad for the people. It also stifles free entreprise. TF is also trying to play politics - cos he probably believes that if you can't beat them, join them!

[benz 0]

Better if AirAsia move to Terminal 1: STB

 

Published on: Tuesday, February 15, 2011

 

 

Kota Kinabalu: Sabah Tourism Board (STB) Chairman Datuk Seri Tengku Zainal Adlin said the issue raised by AirAsia Group Chief Executive Officer Datuk Sri Tony Fernandez is basically between the Ministry of Transport, Malaysia Airports Berhad and AirAsia.

 

"Sabah Tourism Board does not own nor operate an airport," he said in a statement, Monday.

 

However, he said from the tourism industry perspective, the proposed relocation of AirAsia to the Kota Kinabalu International Airport (KKIA) Terminal 1 would benefit all parties, especially for convenience of passengers and connectivity.

 

"It will enhance KKIA as Malaysia's secondary aviation hub.

 

STB will continue to render assistance to all airlines that will bring more visitors to the State," he said, Monday.

 

As a matter of fact, Adlin said, AirAsia had written a letter of undertaking to the Minister of Transport a few months ago to relocate to Terminal 1.

 

"The newly-completed nine million passengers per annum capacity at Terminal 1 provides bigger and better facilities to both passengers and airlines with a total of three times more parking bays.

 

"Besides more check-in counters of 64 compared to only 23 in Terminal 2, car parks of 1,400 compared to only 200 in Terminal 2, 20 dedicated parking bays for tour coaches and none in Terminal 2," he said.

 

Terminal 2, he said, was just a temporary terminal and that the passenger movements in Terminal 2 had far exceeded its design capacity of two million passengers per annum.

 

In 2010, there were 2.7 million passengers, which resulted in total congestion and inconvenience to passengers such as inadequate toilets, congestion at check-in counters, security and Custom, Immigration and Quarantine (CIQ) counters, he said.

 

In Terminal 1, Adlin said AirAsia would have a dedicated island of 16 check-in counters compared to only nine at Terminal 2.

 

STB was also informed that there would be no aerobridges from Bay 9 to Bay 19, which means low cost carriers have options to use again.

 

"Again as said by Deputy Transport Minister Datuk Abdul Rahim Bakri today (Feb 14) the use of aerobridges would only cost 50 sen per passenger," he said.

 

Fernandes had said that AirAsia had been given until June 1, 2011 by the Transport Ministry to shift to Terminal 1.

 

However, AirAsia wanted to continue operating from its present premises due to its plan to turn Kota Kinabalu into an eastern hub for domestic and international flights.

 

"We will have a headache in Kota Kinabalu with Malaysia Airports that is trying to move us from Terminal 2 to the main terminal É we will not move out.

 

"I will chain myself and the FRU has to take us," he quipped.

 

Fernandes also cited STB General Manager Datuk Irene Charuruks as the cause of the problems.

 

2.7 milion passengers in a 2 million build Terminal 2...it was 2.1 million in 2009. No wonder it is so congested with people

so how would AirAsia going to solve this problems? Have they or the fed gov thought of expanding terminal 2 if AirAsia really gets to stay on. AirAsia is given Island C and why do they need more check-in counters if they do not have any new route plans for BKI

[Cire 0]

yup...probably TF have been screwed numerously by the G, he now is more wise and played the same game. GLCs aka Money pits are never a profitable entities.

Made worse by appointing retired politicians or VIPs who does not know anything about running a company, eg..Sime Darby. Young professionals find it hard to work in these establishment as it goes against good and effective business management practices. Usually you could see a lot of related staffs working in GLCs. Less ambitious one would succumbed to this laid back establishment, and climb a slow and political-linked promotion ladder.

The only way to make it to the top, is to join a popular G-winged political party.

GLCs are a retirement safety net for politicians and Government VIPs.

[benz 0]

'Official should be asked to take leave'

 

Published on: Wednesday, February 16, 2011

 

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Sandakan: A Sabah Tourism Board (STB) Director said Tuesday the concern by AirAsia that Sabah stands to lose one million tourists if it moves from Kota Kinabalu International Airport (KKIA) Terminal Two to Terminal One is alarming news to all tourism players in the State.

 

Datuk John Lim Shau Ket said it should also sound alarm bells to the tourism industry in the country in general.

 

"If the move is done unprofessionally or by the input of some irresponsible sector or by an individual, then the whole exercise needs a complete in-depth study before a final decision is made by the relevant Ministry or authority," he said in a statement.

 

In this connection, he said it was very appropriate that the Sabah Tourism official who had been singled out in connection with the issue is asked to take leave.

 

"This so to allow a full investigation to be carried out to clear the air so as to be fair to other STB members who are not involved."

 

He said AirAsia should consider setting up a new hub of for the East Coast in Sabah particularly in Sandakan.

 

He said AirAsia CEO, Datuk Seri Tony Fernandez should consider the abundant tourism products that Sandakan has to offer such as the orangutan, proboscis monkey, Bornean Pygmy elephants, Kinabatangan river and fresh seafood, among others.

 

If air connectivity in Sandakan is considered, it would certainly boost the economy there.

 

"The wildlife and eco-friendly environment are anxiously waiting AirAsia'a arrival with red carpet," he said.

 

He also appealed to low-cost carrier Firefly to consider resuming its Johore-Sandakan, Melaka-Sandakan, Ipoh-Sandakan and Penang-Sandakan flights once or twice a week.

 

Lim, also a tourism player-cum-resort owner, said the government should kickstart Sabah's second international airport that was approved by the Federal Government last year so as to facilitate economy development in the East Coast particularly the tourism sector.

 

Is Sandakan the second international airport that is mentioned in the below section of the article?

[Waiping 12]

Is Sandakan the second international airport that is mentioned in the below section of the article?

 

Maybe Labuan. After all they had a new airport nicely done before MH cut frequency and AK cut the route entirely.

[BC Tam 2]

More likely Sandakan than Labuan (no surprises there !)

Some discussions here already

[Arthur W. 0]

1 AirAsia A320 carries maximum 180 pax.

1 plane takes an average 6 hours for a round-trip BKI-destination-BKI. Means an average 3 departures/arrival per plane per day (taken account night curfew).

1 year has 365 days.

 

Do the math:

Provided each flight is FULL, no flight cancellations, and ALL flights only carry TOURISTS (not locals travelling for business/balik kampung/studies, etc.)...

 

180pax x 3 arrivals/day x 366 days/year (bonus 1 day assuming every year is a leap year!) = 197640 tourists per plane/year ONLY.

 

Wait, did he actually say MILLIONS?? Clearly the fella has been over-exaggerating on the tourist arrival statistics... trying to con STB...

[Mohd Azizul Ramli 2]

No it isn't.

 

Based on the arrival info at BKI on 15 February 2011 http://www.flightstats.com/go/FlightStatus/flightStatusByAirport.do;jsessionid=C3A4E2DE0375F33B76D35600A3EED5DC.web4:8009?airport=(BKI)+Kota+Kinabalu+Airport,+MY&airportQueryDate=2011-02-15&airportQueryTime=-1&airlineToFilter=&airportQueryType=1&x=40&y=10

 

AK has 29 arrivals, of which if all 29 flights are full will result in the arrival of 5,220 tourists (29 flights x 180 passengers), both local and abroad, to Kota Kinabalu. Assuming all 29 flights operated daily, (5,220 passengers per day x 365 days) = 1,905,300 tourists for the full year.

 

So his numbers are valid, no exaggerating.

[benz 0]

and don't forget the article that I've posted above

Terminal 2 handled 2.7 million passengers in 2010

lets just said 2 million belongs to AirAsia or its still a big amount if 50% of the total passengers are taking AirAsia

[Arthur W. 0]

No it isn't.

 

Based on the arrival info at BKI on 15 February 2011 http://www.flightstats.com/go/FlightStatus/flightStatusByAirport.do;jsessionid=C3A4E2DE0375F33B76D35600A3EED5DC.web4:8009?airport=(BKI)+Kota+Kinabalu+Airport,+MY&airportQueryDate=2011-02-15&airportQueryTime=-1&airlineToFilter=&airportQueryType=1&x=40&y=10

 

AK has 29 arrivals, of which if all 29 flights are full will result in the arrival of 5,220 tourists (29 flights x 180 passengers), both local and abroad, to Kota Kinabalu. Assuming all 29 flights operated daily, (5,220 passengers per day x 365 days) = 1,905,300 tourists for the full year.

 

So his numbers are valid, no exaggerating.

 

TF quoted each plane could bring in 400000 tourists per year... my calculations only show <200000. That is what I mean over-exaggerated.

 

FYI AK doesn't only carry tourists. Many passengers are actually local travelers working/studying/visiting relatives. 29 flights I assume includes intrastate domestic too... And I don't think we should count a tourist flying SDK-BKI as another +1. Otherwise if I'd fly BKI-SDK-BKI 3 times a year to visit family, I'd be counted as +3 tourists.

[flee 5]

We are nitpicking numbers here!

 

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. What he is not happy about is that despite contributing to BKI's growth, they failed to listen to his concerns. I am sure that he will comply in the end, if forced to. But he will probably let the market do the talking. If business slows down due to higher prices of tickets, he will be ruthless in cutting the flights and routes. AirAsia does not have taxpayers to bail them out of any losses.

 

BTW, every pax counts, whether they are tourists or not. They pay Airport Tax, they patronise airport outlets, taxis, etc. They all contribute to Sabah's economy.