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AirAsia X flies into greater turbulence

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Understandable with weakened MYR.

 

That report was for 2nd quarter ended in 30 June 2015. MYR has further weakened since then.

 

Interestingly QF has reported a AUD975 million pretax profit for financial year 2014-15 (1 July 2014 to 30 June 2015). AUD has dropped 20% against USD while MYR dropped 15% during this period.

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That report was for 2nd quarter ended in 30 June 2015. MYR has further weakened since then.

 

Interestingly QF has reported a AUD975 million pretax profit for financial year 2014-15 (1 July 2014 to 30 June 2015). AUD has dropped 20% against USD while MYR dropped 15% during this period.

So the drop is not solely due to RM depreciation. And MH is retreating too so can't say they're dumping fares and impacting D7's bottom line.

 

There is a fundamental issue with D7 that they need to rectify immediately.

Edited by Mohd Suhaimi Fariz

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So the drop is not solely due to RM depreciation. And MH is retreating too so can't say they're dumping fares and impacting D7's bottom line.

 

There is a fundamental issue with D7 that they need to rectify immediately.

 

Current D7 business model is geared to leisure travelers i.e seasonal. Hence, load and yield is poor outside school holidays period.

 

For D7 to survive, they need to behave more like FSC, attracting more transit pax and have a mix fleet to improve yield.

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Current D7 business model is geared to leisure travelers i.e seasonal. Hence, load and yield is poor outside school holidays period.

 

For D7 to survive, they need to behave more like FSC, attracting more transit pax and have a mix fleet to improve yield.

They can do the 'transit' part easily...'mixed fleet' not so though...

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I think they should have concentrated on using KLIA2 as a transit Hub instead of being greedy and spreading themselves too thinly by flying from Bangkok and Denpasar as well...

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With how creative (or daring/brash/gung-ho) AirAsia is; whats stopping them from introducing a new concept to the "long haul - low cost" industry ?

 

Spent 6 years in UK/Europe and have always been impressed with their Sleeper Trains. Applying this concept, I think getting a bunk or just a place to lie down would be awesome for a long haul flight. Add in an on-board lounge for those who want to dine/drink ... with the right ticket price (nothing higher than FSC economy) I would gladly switch to such an offering !

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AAX optimistic about returning to the black in FY16


KUALA LUMPUR: The long-haul arm of budget carrier AirAsia Bhd ( Valuation: 0.60, Fundamental: 0.20), AirAsia X Bhd (AAX) ( Valuation: 0.30, Fundamental: 0.20), which has been making losses for eight consecutive quarters and has chalked up accumulated losses of up to RM1.07 billion as at Sept 30, 2015, expects to return to profit in the financial year ending Dec 31, 2016 (FY16) — if the ringgit doesn’t weaken to below the 4.40 mark against the US dollar.



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AirAsia X says taking carrier private is an option on valuation


NEW DELHI (Jan 13): The chief executive officer of AirAsia X Bhd ( Valuation: 0.30, Fundamental: 0.20) said taking the company private is an option, after shares of the long-haul budget carrier in Tony Fernandes’s AirAsia group plunged 64% in the past year to become the worst-performing airline in Asia.



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With AAX keeps losing money, I wonder how Scoot doing...

I think one must be mindful that D7's losses these days are paper losses caused by foreign currency translations of the USD borrowings - cash is not really bleeding from the coffers. Accounting standards dictate that they have to recognise these losses and not just make provisions for them. If and when the MYR recovers against the USD, you may also find huge paper profits due to forex.

 

Scoot has not made money since the commencement of its operations and they expect to break even or make profits this year or next. Please see: http://www.malaysianwings.com/forum/index.php?showtopic=16130&p=359398

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AirAsia X 2016 outlook: turnaround predicted as Australia improves, China grows, 5th freedoms launch

 

http://centreforaviation.com/analysis/airasia-x-2016-outlook-turnaround-predicted-as-australia-improves-china-grows-5th-freedoms-launch-261774


Can't access the website.......Not sure what they are up to now??

I checked - I don't think it is implemented yet. The email is advance warning for those who have not bought their luggage yet.

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Not good at all... they want to collect all these fees up front nowadays. They are cash hungry.

Low on cash probably. Their forward bookings have dipped last I heard. Their sales are no longer as attractive as they were a few years back resulting in many people not willing to commit to buying tickets so many months in advance

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Low on cash probably. Their forward bookings have dipped last I heard. Their sales are no longer as attractive as they were a few years back resulting in many people not willing to commit to buying tickets so many months in advance

Not to mention their exhorbitant credit card fees. Now, the also charge for online banking transfers!

 

In the quest to improve yields, luggage and seat booking fees are also substantially higher. However, they did not dare to raise food and beverage prices too steeply. People will just stop buying if it is too high cost.

 

Yes, they are real cash hungry and I don't fly with them as often as I used to.

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Not good at all... they want to collect all these fees up front nowadays. They are cash hungry.

 

Are they introducing three tier pricing system (pre-booking, post-booking and counter check-in price)?

 

 

Low on cash probably. Their forward bookings have dipped last I heard. Their sales are no longer as attractive as they were a few years back resulting in many people not willing to commit to buying tickets so many months in advance

In my opinion, AirAsia faces what a lot of big FMCG organisation are facing: matured stage of product life cycle. With sales reaching their peak and the market becoming saturated, AirAsia is finding it difficult to maintain their profits, let alone continue trying to increase them, especially in the face of intense competition. AirAsia needs to look for new innovative ways to make their product more appealing to maintain current consumer base as well as to attract new customers.
They need to have fresh marketing ideas, new development/redesign products and service, new/ extending their distribution channel.....
If they keep increasing the fee and surcharges, customers will just turn away as there many options in the market.
AirAsia is at trajectory where she is her worst enemy.

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Jazeera Airways eyes long-haul venture with foreign partner

Kuwaiti low-cost carrier Jazeera Airways could set up a long-haul service with a foreign partner as an alternative to buying a stake in national carrier Kuwait Airways, whose privatisation has hit long delays

from: http://www.themalaysianinsider.com/business/article/jazeera-airways-eyes-long-haul-venture-with-foreign-partner#sthash.ajXTghOe.dpuf

Wonder if D7/AK is the prospective foreign partner ?

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Jazeera Airways eyes long-haul venture with foreign partner

 

from: http://www.themalaysianinsider.com/business/article/jazeera-airways-eyes-long-haul-venture-with-foreign-partner#sthash.ajXTghOe.dpuf

Wonder if D7/AK is the prospective foreign partner ?

I hope not. TF and his team should focus to get their house in order first before venturing into new business again. Once bitten, twice shy. All of their sister companies are loss making except for Thai AirAsia.

 

Much operational issues have been highlighted on their FB. They need to "brand refresh".

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Yes, unfortunately, TF is not able to focus on all his business units and his so called business partners have not always been the best people to be partners with. It is best he focused on sorting out the existing business units before venturing into something new.

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