AirAsia to move regional office to Jakarta

[flee 5]

Don't see them in any mood to relocate to BKI's T1 anytime soon though

Oh wait, we don't have any real long haul flights at BKI

The competitive landscape at BKI is now completely overhauled with the arrival of Firefly with its aggressive expansion plans.

 

I am sure AK are very worried about them and want to hang on to any cost advantage they have at T2. They may also have to axe some marginal routes if costs escalate.

[BC Tam 2]

AirAsia has a difficult balancing act to perform. It needs to deliver lower fares to its customers. It needs to deliver higher returns to its investors

I assure you that particular balancing act is not proprietary to Air Asia alone. Nor even to the aviation industry even

Quite universal in fact, applies to every entity that intends to stay in business

 

The competitive landscape at BKI is now completely overhauled with the arrival of Firefly with its aggressive expansion plans.

What ? MH (or rather her proxy) giving AK a run for its money - and AK running scared ?

Nah, not likely - AK already has the pedigree

I don't wholly buy this cost advantage at T2 story, nor taken in by route axing scaremongering

But then, what do I know ?

[flee 5]

What ? MH (or rather her proxy) giving AK a run for its money - and AK running scared ?

Nah, not likely - AK already has the pedigree

I don't wholly buy this cost advantage at T2 story, nor taken in by route axing scaremongering

But then, what do I know ?

Yes, additional costs are very real - especially in the IT area. Communications lines and computers have to be up at both sides. You just can't rip the stuff from T2 and install it at T1. I am sure that there are also some other associated costs.

 

You must also remember that AirAsia not only competes with other airlines - it also competes with itself. If another route can be more profitable using the same resources, they will not hesitate to axe the less profitable one. This is all about using capital as efficiently as possible.

 

I am sure AirAsia is not foolish enough to dismiss the competition, whether it is FY, MH or any other airline. To do so would be arrogant and taking your eye off the ball...

[BC Tam 2]

You must also remember that AirAsia not only competes with other airlines - it also competes with itself. If another route can be more profitable using the same resources, they will not hesitate to axe the less profitable one. This is all about using capital as efficiently as possible.

Resource number one would be having enough hardware (ie. flying aeroplanes) to do the job ?

That was the story that was offered last time when routes were axed

Anyway, with new deliveries being deferred nowadays, cannot use the same story line anymore

[flee 5]

Resource number one would be having enough hardware (ie. flying aeroplanes) to do the job ?

That was the story that was offered last time when routes were axed

Anyway, with new deliveries being deferred nowadays, cannot use the same story line anymore

Sorry I am not sure I understand the logic you put up here.

 

I think that this year, we saw AirAsia rationalise their routes because LCCT capacity is reached. So whatever flights that operate out of LCCT now will have to vie for the finite resources available. That is why some frequencies were cut and some routes were axed. Only those routes that were top of the table in terms of profitability remained.

[Sandeep G 1]

I have a question..

 

As parking bays in the immediate vicinity of the LCCT are scarce, and there are multiple buys at the Satellite building why not park the airplanes there and instead of towing, why not MAHB foot the bill for buses to transport the passengers via BUS to the arrival hall of LCCT. If they can provide Rapid KL buses round the clock while the aerotrains were down, why not for the LCCT?

[Mohd Suhaimi Fariz 2]

I have a question..

 

As parking bays in the immediate vicinity of the LCCT are scarce, and there are multiple buys at the Satellite building why not park the airplanes there and instead of towing, why not MAHB foot the bill for buses to transport the passengers via BUS to the arrival hall of LCCT. If they can provide Rapid KL buses round the clock while the aerotrains were down, why not for the LCCT?

 

I doubt they can do their famous 25 minute turnarounds that way. And with their schedules packed so tight it'll lead to immense delays throughout the system.

[Mike P 0]

Sorry I am not sure I understand the logic you put up here.

 

I think that this year, we saw AirAsia rationalise their routes because LCCT capacity is reached. So whatever flights that operate out of LCCT now will have to vie for the finite resources available. That is why some frequencies were cut and some routes were axed. Only those routes that were top of the table in terms of profitability remained.

 

That's basically what an Airlines would do reasonably to maximise their profits.

[Izanee 0]

i doubt the postponement of deliveries is because of the lack of parking space in LCCT. As someone mentioned before, the aircraft can be parked on the apron elsewhere and passengers bussed to the LCCT. I think the main reason is purely FINANCIAL.

[JuliusWong 0]

No flee, AK was not relaunched in 1993. They were launched in 1993, and relaunched by TF in the 2000s

 

It's just me being pedantic.

 

Found the evidence....lolx~~ here goes: http://cgi.ebay.com.my/MALAYSIA-RM10-RM20-AIR-ASIA-BOEING-737-PHONECARD-SET-/180653266173?pt=UK_Collectables_PhoneCards_SM&hash=item2a0fc614fd

[flee 5]

i doubt the postponement of deliveries is because of the lack of parking space in LCCT. As someone mentioned before, the aircraft can be parked on the apron elsewhere and passengers bussed to the LCCT. I think the main reason is purely FINANCIAL.

Of course it is financial - according to their Q1 2011 report, they managed to keep other costs low and grow revenue to partially ameliorate the extra costs of fuel.

 

They are also shifting their routes around and are avoiding flights longer than 3 hours as they are not as profitable as the shorter flights.

 

They leave no stone unturned - so it is not just flight operations costs that are scrutinised. Their admin costs are under the microscope too, hence the relocation of the regional office.

[BC Tam 2]

25 May 2011 Last updated at 23:09 GMT

Entrepreneurs face global challenges

By Andrew Walker

Economics correspondent, BBC World Service

 

Indonesia is the best place for entrepreneurs to start a business, a BBC survey has suggested.

 

The US, Canada, India and Australia are seen as among the next best countries at supporting new businesses.

 

At the other extreme, Colombia, Egypt, Turkey, Italy and Russia are among the least entrepreneur-friendly.

 

The survey for the BBC's Extreme World series found wide variations in perceptions of the support different cultures offer to start-ups.

 

The results come from a survey of more than 24,000 people across 24 countries.

 

They were asked whether innovation was highly valued in their country; whether it was hard for people like them to start a business; whether people who do were highly valued; and whether people with good ideas could usually put them into practice.

 

Relatively favourable

 

Taking all the answers together as a single index, Indonesia came out as the most favourable place for entrepreneurs.

 

Also near the top were the US, Canada and Australia.

............

read the rest here

 

Helps in better understanding of subject eh ?

Edited May 27, 2011 by BC Tam

[flee 5]

PETALING JAYA (May 30, 2011): AirAsia Bhd's main base of operations will continue to be out of the KL International Airport in Sepang although the budget carrier is reviewing a proposal to move its Asean regional operations from Kuala Lumpur to Jakarta.

 

Its group chief executive officer Datuk Seri Dr Tony Fernandes said it's still a preliminary idea.

 

Dismissing concerns that the relocation will have an impact on Malaysia's aviation industry, he said: "We have 8,000 staff (AirAsia and its affiliates). I was just thinking about taking 10 people out of the main office here and base them in Jakarta to do regional functions because that's where the secretary-general of Asean secretariat is currently based," Fernandes told SunBiz via telephone.

 

"It's part of our Asean strategy where the regional team will facilitate planning and the executive of activities among group companies in the region; negotiate air traffic rights for the group, among others.

 

"But it's still early days and nothing is definite yet. At our regular staff meetings, we always bounced off business ideas of each other and obviously this one got out," he said.

 

AirAsia currently has hubs in Malaysia, Indonesia and Thailand, with the Philippines joining in soon.

 

"We are a regional carrier now, but we are a Malaysian company. We have to drive Asean forward," Fernandes added.

 

It is understood that AirAsia's regional heads of the various departments have been asked to relocate. However, Kathleen Tan, the regional head of commercial for AirAsia Group, will remain here.

 

An online news portal, quoting unnamed sources, recently reported that AirAsia will move its regional headquarters to Jakarta as early as this year, which was seen as a blow to Malaysia's aim of becoming a regional aviation hub.

 

The relocation was also seen as a move to pressure the Malaysian government for air rights to some international destinations such as Sydney and Jeddah, which are operated by sister company AirAsia X.

 

Last week, Fernandes was reported to have said that if the government continues to hold back new route approvals, Singapore will have an advantage to build a hub and Malaysia will lose out.

 

Following this, it was reported that the Ministry of Transport had hit back at Fernandes saying that the ministry had approved AirAsia X's applications to operate in 32 international destinations, which were made at between 2007 and 2011. However, AirAsia X has only operated into 15 destinations.

 

The report, quoting the ministry, had said that AirAsia X had withdrawn one destination (Abu Dhabi) in February 2010, and had not fully used all the traffic rights granted to them to Tianjin, Melbourne, Taipei and Teheran. This has impeded the provisions of traffic rights to the other airlines, it added.

 

At the same time, the ministry is considering AirAsia X's application to operate into Beijing, Shanghai, Jeddah, Istanbul and Osaka.

 

"The approval of these routes depends on the traffic rights availability and the receiving country's rules and regulations, which include among others, restriction on low-cost carrier, slots constraints and airspace control," it said.

 

It added that AirAsia and AirAsia X have suspended their operations on some routes without giving prior notifications to passengers and the ministry, resulting in inconvenience to the passengers.

 

Commenting on AirAsia's move to review the proposal to move its regional operations to Jakarta, a foreign airline operator said it is normal for airlines to set up regional headquarters to be nearer to customers and partners there.

 

"These regional offices will usually house smaller groups of people. As long as their (AirAsia) main base is still in Kuala Lumpur, I won't read too much into it unless AirAsia says it is moving its whole operational base including top management to Jakarta.

 

"Right now, it's mainly to set up a regional office there so that they can put themselves in a better position to expand their operations in Indonesia better," the operator said.

 

Source: http://www.sun2surf.com/article.cfm?id=61189

[Mike P 0]

I Think AK is making noise about SYD!

[Ikman Ikreza 0]

It's CONFIRMED move in October 2011.

 

AirAsia to Move Base to Jakarta

A. Lin Neumann | July 22, 2011

 

Tokyo. AirAsia has chosen Jakarta to be its regional headquarters in an effort to be seen as a Southeast Asian airline rather than just a Malaysian one.

 

The region’s largest low-cost airline plans to open its base in the capital at South Jakarta’s Equity Building in October, group chief executive Tony Fernandes told the Jakarta Globe on Thursday.

 

It plans to take advantage of easy access to the Asean secretariat in advance of the “open skies” agreement that will go into effect in 2015.

 

That agreement will lower barriers for air travel between the region’s capitals.

 

Asked why he chose to move the fast-growing airline’s principal corporate base to Jakarta from Kuala Lumpur, Fernandes said: “Asean is based in Jakarta, and Indonesia will be the largest economy in Asean in times to come … And I like it there.”

 

Fernandes, who is Malaysian, said he had already bought a home in Jakarta within walking distance of the new office. “I don’t like the Jakarta traffic,” he said.

 

The Equity Building is in the Sudirman Central Business District, near the Indonesia Stock Exchange (IDX). According to aviation experts, AirAsia’s relocation to Jakarta highlights the country’s growing importance in the region’s aviation sector.

 

“This will be great for our aviation industry,” said Dudi Sudibyo, an aviation industry analyst in Jakarta. “This will push us to be better.”

 

To match AirAsia’s ambitious strategy, the Indonesian government will have to continue to improve infrastructure to accommodate more passengers flying into and around the country, said Bambang Ervan, a Transportation Ministry spokesman.

 

“This is very positive, we welcome AirAsia’s plan,” he said. “It shows that AirAsia, one of the world leaders in the aviation industry, has confidence in Indonesia’s strong growth.”

 

The Indonesia National Air Carriers Association (Inaca) forecasts passenger growth at 10 percent to 15 percent this year.

 

Central Statistics Agency (BPS) data showed that air traffic in Indonesia grew 22 percent to 53.4 million passengers in 2010 on the back of demand from the middle class for domestic flights.

 

That is higher than the 9 percent average increase recorded by Asia-Pacific carriers, according to data from the International Air Transport Association.

 

“Indonesia is among very few countries that managed to record strong growth in air traffic last year,” Bambang said. “The lack of available airlines compared to population and geographic conditions is only a sign that there’s a lot of opportunity here.”

 

Fernandes was in Tokyo for the announcement of AirAsia Japan, a new joint venture with Japan’s largest carrier, the ANA Group, to launch Japan’s second budget airline next year.

 

He confirmed his airline’s recent order for 300 Airbus A320neos. The deal, originally for 200 planes, was increased with an option for 100 more. It was the largest single aircraft order until Wednesday, when American Airlines ordered 460 Airbus and Boeing aircraft in a $38 billion deal.

 

Fernandes played down concerns raised by some analysts about the possible debt implications of such a deal, saying the company was cash rich, with a turnover of more than $4 billion last year, and operated as a group with a profit margin of about 20 percent.

 

Source : http://www.thejakartaglobe.com/home/airasia-to-move-base-to-jakarta/454618

 

Another related news : http://www.utusan.com.my/utusan/info.asp?y=2011&dt=0723&pub=Utusan_Malaysia&sec=Korporat&pg=ko_04.htm

Edited July 22, 2011 by Ikman Ikreza

[Alif A. F. 0]

Well, AK is an ASEAN airline as envisioned by Mr. Fernandez. And what will happen to Air Asia X?

[BC Tam 2]

Will the Indonesians build him a spanking new LCCT at CGK ?

And all other airports there will be instant 'hab' aspirants too ?

[KK Lee 5]

Will the Indonesians build him a spanking new LCCT at CGK ?

And all other airports there will be instant 'hab' aspirants too ?

 

CGK T3

[BC Tam 2]

CGK T3

Nah, T3 already built and in use - where got kick like that ?

Otherwise throw tantrum and say want to build own new airport down the road, or something like that lah

[flee 5]

Actually an LCCT in CGK is not such a far fetched dream. Tony Fernandes has already said that QZ will grow to be bigger than AK in about 10 years. So they will need facilities for at least 100 aircraft in their HQ in CGK.

[Adrian M 0]

AirAsia Moves Corporate HQ from KL to Jakarta

 

http://www.asiasentinel.com/index.php?option=com_content&task=view&id=3339&Itemid=229

[filipeseda 0]

The problem is simple. Fistly, M'sia has been stagnant for the past 10 years economically. It's financial plight never seems to end. If Najib seriosuly wants to "menjana transformasi satu Malaysia" he has to COME DOWN HARD on corruption which I don't see happening. Also, politically speaking M'sia is rather volatile which again adds to the dicomfort of foreign investors. Now, you've got Indonesia where all the markers are pointing upwards vs M'sia where the markers seem to be poiting nowhere. Of course AK will choose Indo. It' s simply because of $$$.

[Cheng Long 0]

Very sad case for Malaysia.. Can't believe we will need to go to Indonesia for greener pasture..

[BC Tam 2]

Well, to progress from

Meanwhile, AirAsia Bhd group chief executive officer Datuk Seri Tony Fernandes told StarBiz yesterday that Malaysia would remain the group's head office after an online news report said that AirAsia would move its regional headquarters to Jakarta

from here on 20 May

to

“I don't know whether Najib has been told or not,” said a business associate of Fernandes in Kuala Lumpur. “But why should Tony care? There are solid business reasons for moving to Jakarta.”

from here

in a shade past two months ......

[Ariff A. 0]

Good News!!!

 

Airasia Not Moving Headquarter To Jakarta

 

KUALA LUMPUR, July 25 (Bernama) -- Low cost carrier AirAsia Bhd's headquarters will continue to be located where it is now -- the mezzanine floor of the Low-Cost Carrier Terminal (LCCT) in Sepang, said the company.

 

"There are absolutely no plans, nor the inclination, to move the headquarters of this Malaysian-incorporated company out of the country. And our Malaysian-registered fleet of aircraft will continue to operate from the LCCT."

 

The airline said this in a statement to clarify news reports that stated AirAsia is moving its "corporate headquarters" from Malaysia to Indonesia.

 

The office in Jakarta is to be called AirAsia Asean, an entity set up under the aegis of AirAsia, and the main goal of the unit is to serve as a representative office for AirAsia in efforts to broaden its branding as a "Truly Asean" airline and extend its outreach to various groups in the region in regards to aviation policies within Asean.

 

The decision to locate this representative office in Jakarta is based solely on the rationale that the Asean Secretariat is based in Jakarta, and a regional office there would help AirAsia present its ideas regarding regional aviation and tourism growth much more effectively.

 

This is particularly relevant at this time given that Indonesia is currently the chairman of Asean and is firmly committed to implementing the provisions of the Asean Connectivity initiative, it said.

 

"Also, Indonesia's growth trajectory indicates it is set to increase its share of Asean's GDP in the years to come, and AirAsia is but merely moving ahead of the curve in locating AirAsia Asean in Jakarta to help increase our visibility and profile in the region's most-populated nation."

 

This is particularly relevant at this time with AirAsia Indonesia heading for a listing on the Indonesian stock exchange.

 

"We believe that having our Asean representative office in Jakarta will also help our group coordinate more effectively with the Indonesian authorities and interact more closely with the 240-million people in that archipelagic nation to better serve them in their increasing need for affordable and convenient air travel," it added.

 

-- BERNAMA

 

 

http://www.bernama.com.my/bernama/v5/newsbusiness.php?id=603750

Edited July 25, 2011 by aish