AirAsia to move regional office to Jakarta

[flee 5]

The Asian Sentinel article was wrong. Nobody said AirAsia was moving its HQ to Jakarta. That is why the follow up article by Bernama was needed.

[BC Tam 2]

"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."

There, the highlighted wordings (emphasis are my doing) should be the significant bits to note

One way to view it (albeit a cynical way I admit) would be that the Malaysian operations can remain here and play jaguh kampung games for as much as necessary. The more serious regional/international business, promising better growth and profitability prospects presumably - better place them elsewhere, hopefully out of reach of 'interested parties'

[flee 5]

Well the AirAsia group does not have the chip on their head that says that they must own the majority shares in any joint venture. So the hold all their overseas ventures have this characteristic, including AirAsia Japan. They have worked out that 49% of something is better than 100% of nothing. One can clearly see that with the many JVs outside Malaysia, the rest of the AirAsia group airlines will easily dwarf the Malaysia ops.

 

I guess the AirAsia group is not so much about flag waving but to build a strong, world class brand with good profit record. It is not bothered about what country they do it in. Business is top priority, not politics.

[Walter Sim 1]

Only the regional honchos would be moving over to Jakarta, all Malaysian ops will remain as it is! Nothing to be worried about!

[Ikman Ikreza 0]

Answer given from AirAsia FB.

 

AirAsia Hi Man, it's some internal movement, however the base remain located as usual for each airlines.

Saturday at 9:13am · Like

Edited July 25, 2011 by Ikman Ikreza

[Cheng Long 0]

Guess further questions to clarify things a bit are, where the top management will be based? What's the scope of this regional or corporate HQ? In other words, is it going to be the main HQ for Air Asia group? We all know that TF bought a house in Jakarta, hates the traffic jam apparently.

 

From what I can gather, for Malaysian op, its aircrafts and HQ will be based in Malaysia.. (Yea..of course). But their main HQ to oversee and run their regional operation (including Malaysia) will be based in Jakarta.

[BC Tam 2]

Anyone know who owns the IP rights to the Air Asia brand - Air Asia Malaysia or Tune Air ?

I guess whether the owner relocate or stay put will tell quite a bit about intentions

[flee 5]

Media Statement

 

Kuala Lumpur, 25 July 2011

 

Re: AirAsia Asean

 

We have received numerous queries and requests for more details in the wake of the reports regarding the establishment of a regional office in Jakarta, Indonesia. It is unfortunate that some sections of the media have reported incorrectly that we are moving our "corporate headquarters" to Jakarta.

 

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

 

As AirAsia grows and expands within the region, and in keeping with our own philosophy of the ASEAN region as our base, we have found that it is imperative we engage with all parties interested in aviation and tourism throughout the region. Hence, AirAsia Asean's mandate is to engage closely with the governments, non-governmental organisations and the media in ASEAN to put forward our ideas regarding the growth of the tourism industry and aviation policies in this region we all call home.

 

The decision to locate this representative office in Jakarta is based solely on this rationale. As mentioned by AirAsia Group CEO Tan Sri Tony Fernandes in Tokyo on July 21, AirAsia Asean is to set up office in Jakarta because 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.

 

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 is incorrect to say, or imply, that AirAsia Berhad is moving its "corporate headquarters" from Malaysia to Indonesia. AirAsia Berhad's headquarters will continue to be located where it is -- the mezzanine floor of the Low-Cost Carrier Terminal in Sepang. 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.

 

In fact, we are of the firm conviction that AirAsia Asean's outreach efforts from Jakarta can eventually benefit not just the aviation and tourism industries in the region, but also help AirAsia boost the economies of all ASEAN countries -- with Malaysia, in particular, gaining substantially given the increasing connectivity established by AirAsia from our LCCT hub in Sepang.

 

 

Thank you.

 

AirAsia Communications

[Mushrif A 3]

I wonder if the media statement above is being economical with the truth. Note how the word "Berhad" suddenly appears in the second last paragraph, which I assume is meant to narrow the focus of what is deemed to be incorrect.

 

If it makes great commercial sense, of course Tony will move the Group (not "Berhad") HQ to wherever he sees fit. But, of course he has to tread carefully as it may be seen as being politically incorrect to move the HQ elsewhere.

[flee 5]

I think that before we come to any conclusions we should also be knowledgeable about the structure of the AirAsia Group companies. I think the non-aviation media got their reports wrong.

 

Credit must go to MWings members - we knew (right from Post No 1 in this thread) that they were only moving the regional HQ to JKT because of cost and business reasons.

 

I think that AirAsia is focussed more on business and less on politics.

 

A large proportion of AirAsia investors are foreigners. They appreciate the value of AirAsia's business focus. That is why AirAsia shares have shot up a lot recently.

 

I won't be surprised if AirAsia will replace MAS in the MSCI the next time they revise their components.

 

[Mike P 0]

Good for AirAsia for exploring every business opportunity!

[Mohd Azizul Ramli 2]

Uncle Tony now has his own airport in Jakarta. ALL AirAsia flights are now under one roof. No more splitting between Terminal 2 (International flight) and Terminal 3 (Domestic flight).

 

Tony Fernandes

Off to indonesia today. Big day. Terminal 3 in jakarta now used for all airasia flights. Thank you indonesian airport authorities. Big news.

[alberttky 0]

Uncle Tony now has his own airport in Jakarta. ALL AirAsia flights are now under one roof. No more splitting between Terminal 2 (International flight) and Terminal 3 (Domestic flight).

 

Wonder how much "good will" is involved.

[flee 5]

I think AirAsia X should perhaps open a second hub in CGK. MAHB's long delays is hurting their expansion as they cannot take in more new planes. With Scoot coming up, D7 has to respond to the new competitive environment, whether MAHB helps or not.

 

With the Indonesian airport authorities are helping out and with QZ having grown sufficiently to provide good connections, it may be viable for D7 to start hub operations there.

[Mike P 0]

What about BKK? It's also a good hub, too.

[flee 5]

Yes, BKK is good too but the Indonesian market has greater potential by virtue of its huge population. QZ should grow to be bigger than AK and with more routes.

[alberttky 0]

What about BKK? It's also a good hub, too.

 

BKK is still operated by MAHB.

[Mike P 0]

That's good. But if D7 is ever going to do that, it really proves MAHB or Malaysian Government's incompetency to fulfil D7's growing demand. Shame.

[alberttky 0]

BKK is still operated by MAHB.

 

Apologies... I thought I saw BKI.

[Isaac 0]

Wonder how much "good will" is involved.

Nothing is free in this country and it is much worse over there. But i guess he's not making a noise because he considers that as a win-win

[Cheng Long 0]

If they were to build KLIA2 as an airport that serves its basic function for budget airlines.. You know, without fancy designs, this and that, I am sure the airport will be completed or near completion by now..

 

As it stands now, KLIA2 at least from the outside, looks more impressive than the KLIA itself.

[flee 5]

That's good. But if D7 is ever going to do that, it really proves MAHB or Malaysian Government's incompetency to fulfil D7's growing demand. Shame.

Well I have a feeling that D7 has already decided to open a hub in NRT to support AirAsia Japan. They have just not announced it. Similarly, it is significant that D7 is holding its board meeting in Jakarta - I think that this is an early reconnaissance mission to check out if T3 at CGK meets with their requirements.

 

If KLIA2 does not complete by end of 2012 as per delayed schedule (it was originally to be completed between Q4 2011 to Q1 2012), I am sure D7 (and maybe even AK) will have to take some concrete action.

 

If they were to build KLIA2 as an airport that serves its basic function for budget airlines.. You know, without fancy designs, this and that, I am sure the airport will be completed or near completion by now..

 

As it stands now, KLIA2 at least from the outside, looks more impressive than the KLIA itself.

Yes, the original SimeDarby/AirAsia KLIA East@Labu was scheduled for completion in Q1 2011.

 

It is no wonder that they are screaming now, cos the current LCCT is running beyond capacity. It really feels like a refugee camp!

 

Nothing is free in this country and it is much worse over there. But i guess he's not making a noise because he considers that as a win-win

I think it is not a question of just whether it is free or some palm greasing needs to be done. It is a question of whether the facilities are available on time and at the correct cost. If MAHB cannot do that, then they will have to seek alternatives.

 

The airline business is not just about domestic competition. They are subject to international pressures and if they cannot have a good home base to mount their competitive products from, they definitely need to look elsewhere.

[flee 5]

Just managed to google up this old Star Report:

A closer look at the proposed KLIA East@Labu

[Cheng Long 0]

The KLIA EAST@Labu thing was very fishy from the start. It was approved by the cabinet..Must be some closed door dealings.. Our famed sleepy Pak Lah was PM at that time... But when the news came out, there was a public uproar namely cause KLIA is underutilized and Labu will make it an even whiter elephant. Dr M was also foaming at the mouth. The gov then reversed the decision and Pak Lah pretended didn't know anything..It seemed there were unhappy factions within BN who also wanted a share of the pie.

 

No doubt, we need a new terminal for LCC. So now we have KLIA2. Closer to the KLIA itself, which is all good... But then things get messy when they start adding on all the frills, fancy design here and there, new runway.. They should just keep it simple, no frills and with basic functions. Get it done and ready. Everyone happy (maybe except for cronies)

[flee 5]

Since when is any big project in this country not fishy?

 

LRT extension, MRT, KLIA2, second Penang Bridge - they are all fishy!

Edited November 16, 2011 by flee