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Ikman Ikreza

Asean to see four new airlines by 2012

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Asean to see four new airlines by 2012

Posted on 15 September 2011 - 05:38am

 

PETALING JAYA (Sept 14, 2011): Competition in the Asean aviation sector is set to intensify with the upcoming launch of four new airlines — Singapore Airlines' (SIA) long-haul low-cost carrier (LCC) that may be named Scoot, Qantas' Asia-based super-premium full-service carrier (FSC) called RedQ, Thai Airways' Thai Smile and MAS' Sapphire, says CIMB Research.

 

And the undisputed winner in an intensified competitive landscape will be passengers, although airlines need not lose out if they remain nimble, it added.

 

"In the next 12 months, the aviation market in Southeast Asia could see some interesting airline plans coming to fruition. In fact, four new airlines would start operations next year," said the research firm in a report Wednesday.

 

CIMB said Sapphire is expected to start operations in November this year but would need help from Qantas and British Airways to succeed.

 

The new airline will be positioned as a premium FSC serving routes in Asean, South China and the south/east coast of India, much in the same way as SilkAir is positioned within the SIA group.

 

"A revitalised product would be good for MAS, but we note that this is coming very late and in an environment of heightened competition in Asean in both the low and high-end segments. We are not confident about the ability of MAS as a standalone entity to successfully transition to a more premium offering.

 

"However, if MAS succeeds in joining the oneworld Alliance as it plans to, Qantas and British Airways could contribute to its success by feeding traffic into KLIA through the resumption of flights or by directly taking a stake in Sapphire. However, this is purely our conjecture at this point and until more details emerge, we remain cautious on MAS," said CIMB.

 

It believes that all of Firefly's leased Boeing 737-800s will be reconfigured from LCC planes into FSC aircraft and then transferred to Sapphire.

 

"Additionally, the 737-800s that are owned by MAS may be transferred to Sapphire for regional flight operations, with the remaining legacy 737-400 and leased 737-800s left behind with mainline MAS to service regional and domestic routes.

 

"As such, Sapphire may have a fleet of up to 13 737-800s by end-2011," it said.

 

The research firm also said while both Scoot and RedQ will add depth to the Singapore aviation market, they could slow or impede MAS' plans to compete with the Singapore hub.

 

"The gales around MAS remain fierce. Nevertheless, there are some bright spots. We think MAS' impending oneworld Alliance membership could see Qantas and British Airways resuming flights to KLIA, feeding traffic into MAS' continental European and Asian routes. In return, British Airways or Qantas may also take a stake in Sapphire," it added.

 

Meanwhile, CIMB warned AirAsia X and Jetstar of looming threat from SIA's Scoot, which will be launched by mid-2012.

 

"Scoot is planning a product superior to AirAsia X and the latter will have to invest to improve its customer service proposition. The economics of Scoot's 400-seater 777-200 also look superior to the 327-seater Airbus A340-300 that AirAsia X currently deploys to London and Paris.

 

"However, AirAsia X has a strong brand name, a larger fleet and a headstart in this industry. Product enhancements can be made. We do not expect AirAsia's KL-based short-haul A320 operations to be affected by Scoot," said CIMB.

 

It has upgraded its sector call from underperform to neutral.

 

Source : http://www.thesundaily.my/news/144063

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The research firm also said while both Scoot and RedQ will add depth to the Singapore aviation market, they could slow or impede MAS' plans to compete with the Singapore hub.

But Qantas hasn't announced where its soon to be set up premium carrier will be based... But i guess even reseachers at CIMB knows it's going to be SIN :D

 

 

"However, AirAsia X has a strong brand name, a larger fleet and a headstart in this industry. Product enhancements can be made. We do not expect AirAsia's KL-based short-haul A320 operations to be affected by Scoot," said CIMB.

And "Scoot" has the SIA brand name to back it up, despite being a low cost carrier. Besides, i can see "Scoot" becoming larger than D7 very fast as SQ phases out more older 772. Singapore having open skies agreement with many countries will no doubt benefit the expansion of "Scoot" too.

Edited by Isaac

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Asean to see four new airlines by 2012

 

"However, if MAS succeeds in joining the oneworld Alliance as it plans to, Qantas and British Airways could contribute to its success by feeding traffic into KLIA through the resumption of flights or by directly taking a stake in Sapphire. However, this is purely our conjecture at this point and until more details emerge, we remain cautious on MAS," said CIMB.

 

 

Hahaha... Wait long long! :clapping: :rofl: :good:

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..... the 737-800s that are owned by MAS may be transferred to Sapphire for regional flight operations, with the remaining legacy 737-400 and leased 737-800s left behind with mainline MAS to service regional and domestic routes.

:blink:

after spending a fortune bringing in and promoting the newly owned 737-8H6's ? :huh:

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Asean to see four new airlines by 2012

Posted on 15 September 2011 - 05:38am

 

 

"Additionally, the 737-800s that are owned by MAS may be transferred to Sapphire for regional flight operations, with the remaining legacy 737-400 and leased 737-800s left behind with mainline MAS to service regional and domestic routes.

 

 

 

Sounds stupid....

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transferring the brand new 738 to Fireflyz? that doesn't sound like a good idea to me

 

Either those in MH fleet management, or the reporter is high on drugs. I strongly hope for latter...

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Really sounds stupid, I think not much people want to fly the legacy 737-400 for some more years ahead...I also don't want...

 

Maybe the whole idea is to bring up Sapphire to a high standard as soon as possible, hence the brand new B738. Plus Sapphire is not an LCC, hence the upgraded equipment with all those interior goodies should suit Premium FSC better. I wouldn't want to travel on a Premium FSC with outdated equipment.

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I don't think MAS should transffer it newest 737-800 to Saphire

I think they should, at least some of them, otherwise MH is going to be burdened with so many 737-8H6's they won't be able to work them sufficiently to be profitable :)

Sapphire is supppsed to be a FSC after all

It's the idea of retaining the ancient 734's and leased in 738's for MH that is more alarming :(

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What if Firefly operate the ATR 72-500 that it has in possesion? And the FY B738 reconfigure into Premium FSC for Sapphire operation. Anyway what is this sapphire operation based on? Full fledge airline or LCC? and is it for domestic or international?

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Anyway what is this sapphire operation based on? Full fledge airline or LCC? and is it for domestic or international?

Premium, full service carrier à la Silk Air. No news whether it will fly to international destinationss or just domestic or both yet.

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Premium, full service carrier à la Silk Air. No news whether it will fly to international destinationss or just domestic or both yet.

i thought they already mentioned sapphire will fly regional destinations

 

Call me thick, I still do not see the rationale of Sapphire.. soon to be mispronounced Sapaiyer... sapayah! Payah!

just pronounce like this,"sefire". easy right?

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What if Firefly operate the ATR 72-500 that it has in possesion? And the FY B738 reconfigure into Premium FSC for Sapphire operation. Anyway what is this sapphire operation based on? Full fledge airline or LCC? and is it for domestic or international?

 

I think there is no more B738 coming in for FY. 9M-FFF should be the last. So all incoming B738s should be destined for MH and configured as premium service aircraft.

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i thought they already mentioned sapphire will fly regional destinations

Yes. They did but they weren't clear whether it will just be international or domestic destinations or both.

 

 

just pronounce like this,"sefire". easy right?

Still not the correct pronunciation though :D

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Yes. They did but they weren't clear whether it will just be international or domestic destinations or both.

 

 

 

Still not the correct pronunciation though :D

then,how the correct one?

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Yes. They did but they weren't clear whether it will just be international or domestic destinations or both.

 

 

 

Still not the correct pronunciation though :D

 

Sapphire :)

 

Potential flamebait but, come on, I'm sure the Malaysian flying public are educated enough to say such word eh? This business of suggesting ways of saying Sapaya Sefire Siapa ye?! Sapphire SePapaya whatnot is getting trivial and might I say a tad patronising.

 

:drinks:

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Sapphire :)

 

Potential flamebait but, come on, I'm sure the Malaysian flying public are educated enough to say such word eh? This business of suggesting ways of saying Sapaya Sefire Siapa ye?! Sapphire SePapaya whatnot is getting trivial and might I say a tad patronising.

 

:drinks:

 

Indeed, we certainly can. There is nothing wrong with the term Sapphire. It actually sounds very classy and isn't hard to pronounce. Its about time the general public buck's up on their English anyway.

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Giving a slightly complicated word will not improve the command of the language. It would only give birth to a local pronunciation of the same word...lah (Malaysian slang intended).

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