AirAsia’s Fernandes Caterham Jet Acquired Berjaya Air

[alberttky 0]

I won't be surprised if it is set up for his own use.

[BC Tam 2]

Final nail in coffin for bid to have Qantas base its 'Asian subsidiary' at KUL I reckon

Yeah, yeah, you can argue all you like about Caterham Jet and RedQ serving different niches - but if I'm to be a foreign investor (read QF) and my prospective local buddy (read MH) has a board member onboard seemingly pulling all the strings recently (read .....) who just happens to have interests in a few other ventures that may possibly be an irritant in time to come

I would prefer to err on side of caution, wouldn't you ?

 

Don't get me wrong, if T/S TF thinks there is a sustainable market demand for such high end service here, go for it and don't let anyone place obstacles in his way

[Teoh Z Yao 0]

All said, traffic to and out of SZB should be rectified! Without smooth traffic, there's not much point developing SZB.

[Naim 6]

I love the CRJ.

[Izanee 0]

there you go, as we suspected. wipe FY off the face of the earth, get rid of your competition.

use MH's money to pay for QPR and make unsound decisions for MH.

guess which airline will remain??

this guy is so greedy it is unbelievable.

 

MAS made a stupid decision ... sorry, let me rephrase that, the 'higher beings' made a stupid decision for MAS --> either accidentally or not!!

 

it this another way of going around restrictions for Subang? hmmm ..

[flee 5]

I clearly remember Uncle Tony's single line Facebook status/Tweet about Bombardier CRJ aircraft a couple of months back, now the 2 dots are connected.

 

I am also in the opinion that this new airline is targeting the 'super atas' market which is beyond MH's league.

 

Anything especially if it comes from a private initiative that will give more choices and competitions, should be supported by us mortal consumers.

Yes, MH plays in the league that makes the winner a jaguh kampung (village champion).

 

TF plays in the global marketplace - he likes to do things big and he likes to boast that a small country like Malaysia can make an impact on the world markets.

 

So far, nothing has been confirmed nor denied. Lets wait and see how this develops.

[Cheng Long 0]

I feel TF should graciously quit MAS's board.. He is doing nothing there but more like trojan horse and sabotaging from the inside..

[Christopher Lim 0]

I feel TF should graciously quit MAS's board.. He is doing nothing there but more like trojan horse and sabotaging from the inside..

 

QUit for what??? That was his mission from day one!!!! Go Tony Go!

[michgyver 0]

TF said MAS afraid to compete, i guess it is him actually.

[Mike P 0]

TF said MAS afraid to compete, i guess it is him actually.

 

Hmmm.... I don't think "Afraid to Compete" has driven AK to form a premium airlines, supposedly is "Dare to Compete". If AK is so much afraid of competing, it would have formed alliance with MH and Govt to block RedQ's operation here.

[Cheng Long 0]

QUit for what??? That was his mission from day one!!!! Go Tony Go!

 

If he hates MAS so much and want to destroy them, I have no problem with that.. Let them fight and go for each other's throat. But do it fair a bit la.. No dirty tricks.. I am all for healthy competition.. I used to admire him a lot in the early days.. Not anymore.. He is one sly greedy man.. Lost all my respect.

[alberttky 0]

If he hates MAS so much and want to destroy them, I have no problem with that.. Let them fight and go for each other's throat. But do it fair a bit la.. No dirty tricks.. I am all for healthy competition.. I used to admire him a lot in the early days.. Not anymore.. He is one sly greedy man.. Lost all my respect.

 

The environment in Msia does not really promote "healthy competition".

[KC Sim 2]

flee : As a country, Malaysia needs to respond to the worldwide competition. Qantas and Singapore Airlines are threatening Malaysian aviation with new competitors, both at the budget and premium end.

 

Qantas has been operating in the region since around 1935 when it flew from Brisbane to Singapore and eventually extended this to become what is today the Kangaroo Route. Singapore Airlines has been competing against Malaysian Airline System (subsequently named Malaysia Airlines) since 1 October 1972.

 

Malaysia Airlines has done well for many years in the past but often took a nose-dive due to decisions (or lack of decisions) taken by its management as the aviation industry evolved. One of the biggest threat to Malaysia Airlines must certainly have been AirAsia (in whatever form it takes) - but this threat has now been invited in-house and on the board of MAS. His first business in MAS was to dismantle the irritating jet services of Firefly - work done in a surgical manner to the point where I suspect many will soon forget that FY ever operated jets.

 

No mention by flee about the competition posed by the Middle Eastern carriers - the ones I personally suspect took off more traffic from MAS than SIA and QF combined. Emirates (which will soon become the first A380 operator to KUL), Qatar, Etihad and Oman Air all have attractive brand values, inflight product and cabin services and most of all, attractive fares and terrific connections via their home bases to much of Africa, the rest of the Middle East, Europe, North America and increasingly, even South America.

 

MAS was ill-equipped to handle the competition at the premium end of the business. Its aging longhaul fleet looks tired and are not fuel-efficient at a crucial time when oil prices go only one way - UP. At the lower end, it failed to meet the competition when its inflight services (such as meals) were downgraded and it even went further down by attempting to compete with LCCs through "zero Ringgit fares"!

 

It is a case of MAS' management burning the candle from both ends.

 

When it was first announced that SIA was establishing a medium- and long-haul budget carrier, TF clearly said that airlines should stick to their core competentcies - full service carriers should stick to offering premium services and let LCCs offer budget pay-for-what-you-want services. If he had stuck to his own mantra, he would only be operating LCC services in its purest form in Malaysia and around region. But he went on to establish AirAsia X which must have dented MAS' fortunes and coffers. And he is now flushing his own mantra down the toilet bowl once again by wanting to establish a premium carrier - not a very Malaysian-sounding one at that. The business model clearly once again targets Malaysia Airlines and in my opinion has little to do with RedQ. And if Caterham Jets regional services are successful, you will hear of it acquiring bigger jets to operated to medium-haul destinations and eventually even long-haul ones.

 

To all the white sheep merrily bleeting away in the MAS meadows, there is a wolf in sheepskin roaming therein. These are interesting times indeed. For TF to go on a trip seeking investment and make a committment with Bombardier, he must have already obtained high-level blessings - not having the AOC in hand is merely a bureaucratic process to be handled later when he has all the sheep lined up.

 

These are interesting times indeed for Malaysian aviation ... few Asian countries have switched flag carriers in the course of history (with the distinct exception of Cambodia) and who knows, at the rate that the AirAsia Group is re-inventing its place in Malaysia aviation landscape, this might just happen here too.

 

In this industry, and indeed in life ... one never says never. It just might.

 

KC Sim

[michgyver 0]

Hmmm.... I don't think "Afraid to Compete" has driven AK to form a premium airlines, supposedly is "Dare to Compete". If AK is so much afraid of competing, it would have formed alliance with MH and Govt to block RedQ's operation here.

 

then why kills off fireflyz jet service?

[flee 5]

then why kills off fireflyz jet service?

The jet service was losing money while the turboprop service was profitable - I saw numbers like RM 50m losses in 6 months being quoted.

 

MAS is bleeding to the tune of more than RM 5m a day in Q2 2011 and it was urgent to stop this bleeding.

[Ikman Ikreza 0]

then why kills off fireflyz jet service?

 

I was thinking Caterham Jet will kill Firefly ATR regional operation soon and later.

[flee 5]

No mention by flee about the competition posed by the Middle Eastern carriers - the ones I personally suspect took off more traffic from MAS than SIA and QF combined.

I think that you will find in my previous posting that I did:

 

Finally, don't forget the Middle Eastern competition... They will kill MH if the new management does not play it right! The real enemies are all outside Malaysia, not AirAsia!

SQ started Scoot to stem market share losses in the medium/long haul market. Similarly, this new super premium airline is set up to try to win a share of this market and not let QF's new venture gain a dominant position in that market space.

[Cheng Long 0]

The jet service was losing money while the turboprop service was profitable - I saw numbers like RM 50m losses in 6 months being quoted.

 

MAS is bleeding to the tune of more than RM 5m a day in Q2 2011 and it was urgent to stop this bleeding.

 

Guess they are allowed to make some losses as they are just starting business. Plus I'm not sure where the RM50m come from.. Air Asia X boss must have got it from somewhere, though he didn't qoute his source..

 

I believe Air Asia X was not profitable when they first started.. Air Asia Indonesia, Thai also made losses.. BTW how much profit are they making now?

[alberttky 0]

Why Tony Fernandes' new possible premium airline isn't a competitor to Qantas' Asian premium carrier

 

It is tempting to portray Tony Fernandes' possible new premium airline as being in contention with Asia's only other planned premium carrier, the one from Qantas, an airline that has ties to Fernandes. But the premium market in Asia is nascent, and based on the few known details of the carriers, they are pitched at different segments. A closer look is in order.

 

An unconfirmed report from the Malaysian Sun believe Fernandes, the AirAsia co-founder, will start a premium carrier based in Kuala Lumpur. Qantas in August announced its intention to establish a premium carrier in Asia, saying Singapore or Kuala Lumpur were likely.

 

Fernandes' planned operation, possibly to be named Caterham Jet, is expected to be based at Kuala Lumpur's Sultan Abdul Aziz Shah Airport. Commonly known as Subang, the airport is Kuala Lumpur's former international airport but now restricted to general aviation and turboprop flights; Malaysia Airlines and other international carriers are restricted to serving Kuala Lumpur International Airport. Subang is considerably closer to the city centre, taking about half the time to reach.

 

Qantas' planned operation, which favours Singapore, will be restricted to major airports as it will operate Airbus A320s. Fernandes, however, is possibly acquiring Bombardier regional jets, which seat 50-100 in an airline configuration, compared to up to 180 for the A320. Both the Qantas and Fernandes carriers will use less dense layouts, which slashes Fernandes' seat count to a figure more comparable to a shared business jet or air taxi transport. The air taxi model is slowly finding ground in the United States where there is demand for travel in a class beyond first, but not enough demand to rent out or own an entire aircraft.

 

Seat comfort and soft service is not the only driving factor. A smaller operation based at a nearby airport with no crowding reduces waiting time; the only thing better than an extravagant first class lounge is not needing one if passengers can waltz up to the airport and quickly board their flight. This further aligns the known details of Fernandes's operation to a business jet service.

 

Aircraft selection determines network reach. Qantas' A320s with sharklets will have the range to link Southeast Asia with cities eight hours away in Sydney and Melbourne. From Southeast Asia, almost all of Asia will be accessible. It is not known which CRJ model Fernandes will use, but assuming a generous range of 2300nm, North Asia and Australia will be out of range.

 

But available range may be irrelevant. The cities named as possible destinations for Fernandes' possible operation are Bangkok, Jakarta and Singapore – all high-growth, booming cities for trade and financial services. It is evident Fernandes is capitalising on point-to-point regional links where there is demand for speedy flights enabling business people, like the AirAsia founder, to quickly hop around Southeast Asia.

 

In CAPA's ranking of the top 100 intra-Asia international routes by weekly seats available, Kuala Lumpur-Singapore is the third largest, Kuala Lumpur-Bangkok 13th and Kuala Lumpur-Jakarta 15th. If the ASEAN region liberalises air traffic by 2015 as planned, it will open routes like Singapore-Jakarta (second most popular) and Singapore-Bangkok (sixth most popular).

 

Qantas is more interested in network traffic, serving intra-Asia passengers but also those on its long-haul flights from Australia and Europe. This is a major factor for its preference to base its operation at Singapore, although a final decision has yet to be made. A Fernandes operation at Subang provides for little network traffic.

 

Transfer traffic may also be limited, as even if Fernandes' carrier offers a service beyond first class on airlines, that enhanced product will be negated by the extra time involved in having to connect between flights. For short flying distances, a direct flight on a less impressive premium product trumps a superior product with a longer journey time.

 

With Qantas unlikely to base its operation at Kuala Lumpur and Fernandes likely looking at point-to-point services without network feed, the overlap between the two planned operations is minimal. Qantas could expect to lose a minimal amount of traffic, but it is not as though Fernandes is setting up a large capacity operation at a hub airport tapping into network feed. What Fernandes' plan, which awaits comment – he has yet to even Tweet about it – proves is that there is now a market in Asia for premium carriers. But just as the North Atlantic market was flooded last decade with premium carriers eventually put out of business by their legacy rivals, a potential market does not mean the market is accessible.

 

http://www.centreforaviation.com/blogs/aviation-blog/why-tony-fernandes-new-premium-airline-is-not-a-competitor-to-qantas-asian-premium-carrier-62408

[flee 5]

Fernandes looking at executive jet service?

 

PETALING JAYA: Executive jet operator Caterham Jet Sdn Bhd said to be owned by Tan Sri Tony Fernandes, his buddy Datuk Kamarudin Meranun and an American investor will initially have about seven jets that will ply routes within the 2-3 hour flying range.

 

“The deposit for the jets has been paid. Six are CRJ200s jets and one Global Express jet. The jets can carry about 50 passengers each based on economy seating model,'' said a source.

 

Both Fernandes and Kamarudin were not available for comment.

 

“The plan is still at its early stage but Tune Air is not involved in this deal for now, which is to set up a new airline to service the business and executive market in the region. It is a private deal and there could be more investors involved at a later stage if all goes as planned,'' said the source.

 

Those in the know claim that Malaysia Airlines (MAS) could even be roped in as an investor, given the national carrier's aim to re-energise itself into a premium full-service carrier.

 

“You never know what the big plan is, but suffice to say that the promoters are saying there is room for jet services out of Subang and also other locations in the region given the growing affluence,” said sources.

 

The sources added that there might even be more than one hub.

 

When the company will begin services will depend on how soon it can get the aircraft, which are being retrofitted currently, and how fast it can secure the air operator's certificate.

 

A report said that Fernandes was set to expand his empire further as he moved to start a new super-premium full-service carrier that will compete head-on with Qantas' upcoming Asia-based super-premium FSC called RedQ.

 

The report said it expected Catetham Jet to take to the skies in May next year. It would be a point-to-point service, operating routes such Bangkok, Jakarta and Singapore.

 

Fernandes and Kamarudin now own stakes in AirAsia, its sister airline, AirAsia X and MAS, which has low-cost airline Firefly.

 

Source

[flee 5]

Red flag for Tony's Caterham Jet?

 

With Fernandes, who controls AirAsia, uncharacteristically silent on the news report yesterday, many analysts do not know what to make of the idea.

 

 

Kuala Lumpur: If analysts were stumped by the share swap between AirAsia Bhd founders and Khazanah Nasional Bhd earlier, they are rendered speechless by Tan Sri Tony Fernandes' purported super-premium carrier proposal.

 

It was reported that the airline is to be known as Caterham Jet, and will compete head-on with Qantas' upcoming RedQ super-premium airline.

 

With Fernandes, who controls AirAsia, uncharacteristically silent on the news report yesterday, many analysts do not know what to make of the idea.

 

A news daily quoting unnamed sources reported that Fernandes plans to start his own regional super-premium airline with a Bombardier aircraft fleet flying out of Subang in May 2012.

 

Checks with officials in Malaysia Airports Holdings Bhd and the Department of Civil Aviation, however, showed that neither had been approached on the idea.

 

According to sources, Fernandes is yet to apply for an air service licence (ASL) or air service permit (ASP) to start a new airline.

 

An ASL is for scheduled operations (commercial), while ASP is for non-scheduled (charter) operations.

 

The next step would be to apply for an air operator certificate.

 

MAS has also not applied for a new licence yet.

 

It is also understood that there has been no change to Ministry of Transport's directive that Sultan Abdul Aziz Shah Airport (Subang Airport) only caters to turboprop aircraft and corporate jets.

 

"Such a move by Fernandes does seem like it is going against its collaborative agreement with MAS and would hurt MAS' premium plans," OSK Research analyst Ahmad Maghfur Usman told Business Times.

 

He opined, however, that should the airline operate 20-30 seater aircraft for the super-rich, it should not affect MAS' operations.

 

Another issue raised was whether the government would agree to such plan.

 

"The whole concept of the deal between AirAsia and MAS was to have a healthy ecosystem in the aviation industry. How would this fit in with that? It appears to be at odds with it," said an analyst who declined to be named.

 

Another analyst declined to comment much since details of the plan were still sketchy.

 

"What's the definition of super-premium, is it first-class or business class?

 

"Subang is still very much for turboprop and private jet operations. Will the government be willing to reverse that directive. It's still too early to say anything," he said.

 

Fernandes could not be reached for comment.

 

Source

[Mohd Suhaimi Fariz 2]

A red flag in front of TF is like a red cape in front of a bull.

[BC Tam 2]

Those in the know claim that Malaysia Airlines (MAS) could even be roped in as an investor, given the national carrier's aim to re-energise itself into a premium full-service carrier.

Oh boy !

[Christopher Lim 0]

The environment in Msia does not really promote "healthy competition".

 

yup agreed. how to compete healthily in MSIA?

 

Put it simply, it has been a long time since MAS has brought any positive image of our country. They lag behind Thai and SIA without a doubt, and are such an embarassment.

 

AirAsia on the other hand, has put our country in the global spotlight. Even Queen E give Tony CBE, French dude give Tony highest civilian award for purcahsing Airbus.

 

AirAsia is promoting Malaysia so much more than MAS ever did for the past 10 years. So dont be sad. Let it die. We can always fondly remember it in our hearts, the days when it was the sole carrier that over 80% ofMalaysiains couldnt afford to fly, including me. Oh wait, so looks like there is nothing fond to rmeember of MAS after all.

 

If we are so fond of that WAU logo, I am sure TOny would oblige to paint one of his aircraft with a Red and White wau logo tailfin, as a tribute to his enemy which he killed from the inside.

[kandiah k 0]

yup agreed. how to compete healthily in MSIA?

 

Put it simply, it has been a long time since MAS has brought any positive image of our country. They lag behind Thai and SIA without a doubt, and are such an embarassment.

 

AirAsia on the other hand, has put our country in the global spotlight. Even Queen E give Tony CBE, French dude give Tony highest civilian award for purcahsing Airbus.

 

AirAsia is promoting Malaysia so much more than MAS ever did for the past 10 years. So dont be sad. Let it die. We can always fondly remember it in our hearts, the days when it was the sole carrier that over 80% ofMalaysiains couldnt afford to fly, including me. Oh wait, so looks like there is nothing fond to rmeember of MAS after all.

 

If we are so fond of that WAU logo, I am sure TOny would oblige to paint one of his aircraft with a Red and White wau logo tailfin, as a tribute to his enemy which he killed from the inside.

 

 

Well said, and may I add, MH would have had excuses after excuses like always! If only they got their acts together sooner