AirAsia Eyes Serbian Airline as Foothold in Europe!

[reezal 0]

AirAsia Eyes Serbian Airline as Foothold in Europe, Novosti Says

 

 

AirAsia Bhd. (AIRA), Asia’s biggest discount airline, may take over JAT Airways, Serbia’s state- owned flag carrier, Vecernje Novosti newspaper reported,

citing an unidentified Serbian government official.

 

AirAsia representatives are meeting with Serbian officials in Belgrade this week and may bid for the unprofitable airline as it may choose the Serbian capital

as a regional hub for flights to Asia, the report said.

 

SOURCE: http://www.businessw...pe-novosti-says

 

 

 

This is somewhat interesting news, never thought they would venture into European market again!

[Mohd Suhaimi Fariz 2]

Belgrade as a hub for flights from Asia?

[alberttky 0]

what should they call it then?? Air Asia Europe??

[reezal 0]

what should they call it then?? Air Asia Europe??

 

Maybe they should name it Tune Air Europe.

[BC Tam 2]

Belgrade as a hub for flights from Asia?

History has proven Tan Sri can sniff out opportunities from unlikeliest of cracks and corners

Some have been wildly successful, some dismal failures (outstanding PR dept will handle those)

Guiding principle seem to be 'never try, never know - better to try than not know'

[Isaac 0]

The name Air Europe will do. Air Europe was originally a British airline but it ceased operation in 1991.

[Mike P 0]

Doesn't sound like a wise decision or idea made... but who knows? Dato' TF got his way of thinking... =)

[Kenneth Chong WT 0]

Air Euro-Asia...Asia Air Europe...Air AE...Europe? really? Taking Ryanair and Easy Jet by the horns? Can't wait to see how this will work out...ever seen a Caucasian in an AirAsia female uniform? Wonder how they would look like? I always get the Caucasians wannabes...hahahaha!

Edited September 4, 2012 by Kenneth Chong WT

[flee 5]

Hmmm, very interesting.

 

KUL-BEG is around 9,000 kms - within the A333's range. Flight time is around 11 hrs 45 mins.

 

JU's fleet of 9 B733 and 4 ATR-72s is very old - average age is 25 years. Just nice for replacement.

 

So if AirAsia buys them, it is definitely to get their European AOC and to escape the heavy carbon taxes of the EU.

 

So all D7 flights to Europe will be KUL-BEG. From there, pax can take onward connections to their European destinations on fuel efficient narrow bodies (A320s?).

 

Lets see what happens...

[Isaac 0]

Hmmm, very interesting.

 

KUL-BEG is around 9,000 kms - within the A333's range. Flight time is around 11 hrs 45 mins.

 

JU's fleet of 9 B733 and 4 ATR-72s is very old - average age is 25 years. Just nice for replacement.

 

So if AirAsia buys them, it is definitely to get their European AOC and to escape the heavy carbon taxes of the EU.

 

So all D7 flights to Europe will be KUL-BEG. From there, pax can take onward connections to their European destinations on fuel efficient narrow bodies (A320s?).

 

Lets see what happens...

Not a bad idea! But whether they can compete effectively with those Middle-eastern giants for flights between Asia and EU remain to be seen.

[BC Tam 2]

So if AirAsia buys them, it is definitely to get their European AOC and to escape the heavy carbon taxes of the EU.

If they are to fly KUL-BEG, how to escape carbon tax for this long leg ?

At best, maybe save on the intra-EU (eg. BEG-LHR, BEG-AMS, etc) carbon tax, if there is such an exemption to start with

Anyway, the former Yugoslav now has only half a foot into EU - not a full member yet

[Naim 6]

In the old days of Yugoslavia, JAT used to fly Belgrade-KL using Soviet-made airliners.

[amanairways 0]

hope they will make it convienient to fly to Tivat or Podoriga ...and from asia direct !!

[Naim 6]

Aman, why your name got 'airways'?

[amanairways 0]

Aman, why your name got 'airways'?

 

Made mistake when registering .

Can admin contact me ?

Thks

 

Cheng

[Naim 6]

 

 

Made mistake when registering .

Can admin contact me ?

Thks

 

Cheng

 

You can PM "Gavin Andrew David" or 'Norman', thanks!

 

[KK Lee 5]

Fernandes denies AirAsia eyeing Serbian airline

 

 

 

UPDATED @ 03:00:45 PM 05-09-2012

By Lee Wei Lian

September 05, 2012

KUALA LUMPUR, Sept 5 — AirAsia group CEO Tan Sri Tony Fernandes has dismissed reports that his airline is eyeing Serbian airline JAT Airways and is trying to make Belgrade a hub just months after pulling out of the European market.

Bloomberg reported today that the budget airline may take over JAT Airways - a state- owned flag carrier, citing reports in the Vecernje Novosti newspaper.

"Not true," said Fernandes in a text message when contacted over the report.

AirAsia has however been active on the acquisition and expansion trail, buying into Indonesia's Batavia Air for RM240 million in cash in July and launching AirAsia Japan last month.

Serbia has been trying to sell JAT Airways for several years with the most recent suitor, Baltic Aviation Systems, withdrawing its bid last December.

According to its website, JAT flies to more than 30 destinations in Europe and the Mediterranean region and has 14 aircraft.

Its net loss in 2010 more than doubled to 2.5 billion dinars (RM 82.7 million) from 1.1 billion dinars in the previous year.

AirAsia's sister airline AirAsia X halted flights to Paris and London, the group's only European destinations in March this year, reportedly due to high fuel prices and weak demand.

AirAsia, which celebrated its tenth anniversary in 2011, has grown from a two plane outfit in 2001 to become Asia's budget airline with more than 100 aircraft in its fleet and reported to be in negotiations to order another 100 more.

One aviation analyst said that it appears unlikely that AirAsia will buy JAT.

"Europe is not their market right now and they are likely to want to focus on Asia," said the analyst.

After an ill-fated equity partnership with national flag carrier Malaysia Airlines was dissolved earlier this year, Fernandes has focused outwards, moving the budget carrier's regional headquarters to Jakarta and even basing himself in the Indonesian capital, leaving former head of corporate finance and treasury,Aireen Omar, to oversee AirAsia's operations in Malaysia.

AirAsia posted a 10-fold rise in its second quarter net profit to RM1.19 billion due to a one-time gain in its disposal of interest Thai AirAsia.

Its net operating profit however fell three per cent to RM130.94 million while revenue rose nine per cent to RM1.08 billion.

http://www.themalaysianinsider.com/business/article/fernandes-denies-airasia-eyeing-serbian-airline/

[alberttky 0]

I won't be surprised if they target Myanmar next.

[Mushrif A 3]

Fernandes denies AirAsia eyeing Serbian airline

 

 

 

UPDATED @ 03:00:45 PM 05-09-2012

 

By Lee Wei Lian

September 05, 2012

 

KUALA LUMPUR, Sept 5 — AirAsia group CEO Tan Sri Tony Fernandes has dismissed reports that his airline is eyeing Serbian airline JAT Airways and is trying to make Belgrade a hub just months after pulling out of the European market.

Bloomberg reported today that the budget airline may take over JAT Airways - a state- owned flag carrier, citing reports in the Vecernje Novosti newspaper.

"Not true," said Fernandes in a text message when contacted over the report.

AirAsia has however been active on the acquisition and expansion trail, buying into Indonesia's Batavia Air for RM240 million in cash in July and launching AirAsia Japan last month.

Serbia has been trying to sell JAT Airways for several years with the most recent suitor, Baltic Aviation Systems, withdrawing its bid last December.

According to its website, JAT flies to more than 30 destinations in Europe and the Mediterranean region and has 14 aircraft.

Its net loss in 2010 more than doubled to 2.5 billion dinars (RM 82.7 million) from 1.1 billion dinars in the previous year.

AirAsia's sister airline AirAsia X halted flights to Paris and London, the group's only European destinations in March this year, reportedly due to high fuel prices and weak demand.

AirAsia, which celebrated its tenth anniversary in 2011, has grown from a two plane outfit in 2001 to become Asia's budget airline with more than 100 aircraft in its fleet and reported to be in negotiations to order another 100 more.

One aviation analyst said that it appears unlikely that AirAsia will buy JAT.

"Europe is not their market right now and they are likely to want to focus on Asia," said the analyst.

After an ill-fated equity partnership with national flag carrier Malaysia Airlines was dissolved earlier this year, Fernandes has focused outwards, moving the budget carrier's regional headquarters to Jakarta and even basing himself in the Indonesian capital, leaving former head of corporate finance and treasury,Aireen Omar, to oversee AirAsia's operations in Malaysia.

AirAsia posted a 10-fold rise in its second quarter net profit to RM1.19 billion due to a one-time gain in its disposal of interest Thai AirAsia.

Its net operating profit however fell three per cent to RM130.94 million while revenue rose nine per cent to RM1.08 billion.

 

http://www.themalays...erbian-airline/

 

What exactly is "not true"...which are the "not true" bits...still not an outright denial.

[BC Tam 2]

Yup, wasn't there denials galore too during those few days before Khazanah/Tune share swap deal ?!

[flee 5]

AIRASIA Bhd group chief executive Tan Sri Tony Fernandes and AirAsia X chief executive Azran Osman Rani have denied reports that the low-cost carrier or the long-haul budget airline is buying Serbia's national flag carrier, JAT Airways.

 

"AirAsia is a big brand and many people ask us to help ... I can confirm that AirAsia will not be involved," Fernandes told Business Times.

 

Meanwhile, Azran said AirAsia X just routinely reviews potential destinations based on invitation by airports.

 

"But it is exploratory/preliminary. No where near any decisions, and not for 2013-2014," he said, adding that the long-haul budget carrier regularly reviews dozens of potential routes.

 

"Nothing special about this," he said.

 

Meanwhile, AirAsia X commercial director Senthil Balan said the airline accep-tedthe invitation as part of its long-haul route opportunities.

 

However, he said nothing is confirmed and, at the moment, the long-haul budget carrier will remain focused on the Asia-Pacific region.

 

A local daily, quoting a Serbian newspaper Vecernje Novosti, said AirAsia may take over JAT Airways as the budget carrier may choose Belgrade as a regional hub for its flights to Asia.

 

The daily also said that the budget carrier may bid for the unprofitable airline during its meeting with Serbian officials this week.

 

This comes as AirAsia and its Indonesian partner, PT Fersindo Nusaperkasa, acquired PT Metro Batavia in July for RM253 million to enable its expansion in Indonesia.

 

PT Metro Batavia operates Batavia Air and Aero Flyer Institute, an aviation training school.

 

Meanwhile, based on JAT Airways' website, the Serbian national flag carrier was originally founded in 1927 as Aeroput.

 

Currently, the airline has 14 aircraft - 10 Boeing 737-300s and 4 ATR 72s - and serves over 30 Euro-Mediterranean destinations.

 

Source: http://www.btimes.co...icle/index_html

[Josh T 0]

I didn't think this would happen. It makes no sense economically.

[Ruiz Razy 1]

Let's be realistic; Air Asia is Asian.... I think they would be concentrating more in Asia, with the biggest population base within 5 hour flight radius from their HQ in KUL... oops CGK. They've got most ASEAN, Japan.....etc. Obviously China and India would be ideal and may be followed by others such as Taiwan, Bangladesh, Middle East or even Iran and Iraq.

[flee 5]

The low hanging fruit is still in Asia. So they must harvest these before looking elsewhere.