Announcing AirAsia Singapore!

[JuliusWong 0]

I guess AK is not ready to compete with Scoot, Tiger Singapore/Australia, Jetstar and other full service Singaporean airlines.The local 5 million market is insufficient to justify operations in Singapore. AK is just good for a feeder to other airlines in Changi Airport.

It is more of Singapore market is too crowded with too many players vying for both leisure, O&D and business travellers markets. In other word, the market has hit maturing plateau.

[flee 5]

It is more of Singapore market is too crowded with too many players vying for both leisure, O&D and business travellers markets. In other word, the market has hit maturing plateau.

I think they are quite content with it being a virtual hub, since four of their group airlines already do good business there. Setting up a SIN JV will mean that each these airlines may need to give up some frequencies in favour of a Singapore unit. So any increase in business may not justify the costs of setting up a unit there.

[ChrisJong 0]

I heard over the radio that it is off due to too high operating cost!

[flee 5]

AirAsia’s Singapore base to be closed less than two years after opening

 

AirAsia decided in late 2011 to start basing aircraft in Changi to enable early morning departures and late night arrivals on its biggest Singapore routes, which rivals Tiger and Jetstar Asia are able to offer as they are based in Singapore. The original plans was for the Malaysian, Indonesian and Thai affiliates to all have at least one aircraft based at Changi with interchangeable crews that are licensed in more than one country.

 

AirAsia initially based one A320 at Changi from its Malaysian subsidiary. Subsequently it attempted to base additional aircraft at Changi but repeated attempts were not successful with Changi telling AirAsia there were no available overnight parking spots. The overnight parking issue along with no progress in securing authorisations to launch new Singapore routes and longer turnaround times due to runway congestion have dampened AirAsia’s appetite for pursuing further expansion in Singapore.

 

AirAsia recently decided to close its Singapore base. It was not practical to base just one aircraft at Changi as it could not enjoy the synergies that would come with basing multiple aircraft at Singapore. With the group now realising it remains unlikely it will be able to get approval in the short to medium term for additional overnight parking spots, it is not logical to continue with a one-aircraft base. The group’s early morning departure to Kuala Lumpur also has not been successful from a load factor standpoint although it was important in providing connections to other AirAsia and AirAsia X flights.

 

As a result of its decision to close the Changi base, AirAsia will be moving back its Singapore-based crews to Kuala Lumpur. The 555am departure from Singapore to Kuala Lumpur will be discontinued – a date has not yet been set but it is expected to be pulled from the AirAsia schedule within the next couple of months.

 

AirAsia will cut its Singapore-Kuala Lumpur schedule by only one daily frequency, from 13 to 12, maintaining its market leading position on the route. But the changes will mean its first departure from Singapore to Kuala Lumpur will be 745am, later than the first departures for Jetstar Asia, Malaysia Airlines (MAS) and SilkAir. (MAS overnights an aircraft at Singapore, putting crews up in a hotel, something AirAsia will not consider given its low cost focus.)

 

AirAsia plans to continue operating all its other Singapore departures to Kuala Lumpur using Malaysia-based aircraft. The Singapore-based aircraft returned to Changi for a crew change in the middle of the day, after operating some domestic sectors within Malaysia. But these flights will continue to be operated using Malaysia-based crews. From Kuala Lumpur to Singapore, only the 1040pm departure will be cut, leaving its 925pm flight as AirAsia’s last departure from Kuala Lumpur to Singapore.

 

More here:

http://centreforaviation.com/analysis/singapore-changi-traffic-growth-to-slow-as-qantas-drops-hub-and-airasia-closes-base-105062

[Philip 1]

No more SIN posting!