flee 5 Report post Posted January 21, 2015 AIRASIA BHD and its loss-making associate AirAsia X Bhd are consolidating their operations, where possible, in a major exercise to cut cost and improve efficiencies, sources say. The move will also see the group’s founder, Tan Sri Tony Fernandes, play a more prominent role in the management of AirAsia X. This has prompted intense speculation that AirAsia X CEO Azran Osman-Rani may leave the long-haul budget carrier he has helmed since July 2007. But Azran, when contacted, denies this. “The consolidation exercise began about two months ago and is expected to bring about 30% overall savings — for example, in terms of fuel cost — across the group by the second quarter of next year. “Wherever the two companies can consolidate their departments, they will. They will ride on each other’s strengths rather than waste cost and talent through duplication. The ultimate aim is to try and have much leaner operations,” a source familiar with the plan tells The Edge. Full Report: http://www.theedgemarkets.com/my/article/airasia-and-airasia-x-consolidate-operations Share this post Link to post Share on other sites
BC Tam 2 Report post Posted January 22, 2015 "Consolidation" may not be the best choice of word in this case, both entities being public listed Share this post Link to post Share on other sites
flee 5 Report post Posted January 22, 2015 Not sure if it makes any difference - analysts will still mis-analyse aviation industry moves.... Well, TF used to admire SQ (for product quality and good service) but now, he is trying to emulate EK for large scale economies. Looks like following EK is easier said than done. They may have scale but the markets they are flying to may not.... We wait and see what 2015 will hold for them! Share this post Link to post Share on other sites
KK Lee 5 Report post Posted January 22, 2015 Not sure if it makes any difference - analysts will still mis-analyse aviation industry moves.... Well, TF used to admire SQ (for product quality and good service) but now, he is trying to emulate EK for large scale economies. Looks like following EK is easier said than done. They may have scale but the markets they are flying to may not.... We wait and see what 2015 will hold for them! Unless D7 could fill A333 most of the time, D7 need a mixed fleet e.g. A321, A332 to optimize yield. Share this post Link to post Share on other sites
flee 5 Report post Posted January 22, 2015 Unless D7 could fill A333 most of the time, D7 need a mixed fleet e.g. A321, A332 to optimize yield. Agree - I think the A332 is not such a big difference. However, having the A321neo LR in the fleet will give D7 considerable flexibility. I don't like them cancelling flights "for commercial reasons". This gives the airline a very negative image as it screws up passengers' travel bookings and schedules. It is not very pleasant to have to change your itinerary because D7 cancels your flight. Instead of cancelling, they can sub the A333 with the A321 when loads are not good. D7 can configure the A321neo LR with about 190 seats in two classes. That will enable it to carry a little more than half the pax of an A333. Having such an aircraft will give them less headaches, if they cannot fill the seats on their services. If D7 cancels too many of its flights, they will then get a reputation of being an UNRELIABLE airline... a bit like what AK was in their early days (2002-2005). Share this post Link to post Share on other sites
Mike P 0 Report post Posted January 22, 2015 Agree - I think the A332 is not such a big difference. However, having the A321neo LR in the fleet will give D7 considerable flexibility. I don't like them cancelling flights "for commercial reasons". This gives the airline a very negative image as it screws up passengers' travel bookings and schedules. It is not very pleasant to have to change your itinerary because D7 cancels your flight. Instead of cancelling, they can sub the A333 with the A321 when loads are not good. D7 can configure the A321neo LR with about 190 seats in two classes. That will enable it to carry a little more than half the pax of an A333. Having such an aircraft will give them less headaches, if they cannot fill the seats on their services. If D7 cancels too many of its flights, they will then get a reputation of being an UNRELIABLE airline... a bit like what AK was in their early days (2002-2005). I thought D7 flying only routes taking 5 hours and more? Would A321 able to cover that flying range? Share this post Link to post Share on other sites
flee 5 Report post Posted January 22, 2015 I thought D7 flying only routes taking 5 hours and more? Would A321 able to cover that flying range? Yes, it has about 6-8 hours endurance. Please see: http://www.malaysianwings.com/forum/index.php?showtopic=15176&p=351508 Share this post Link to post Share on other sites
nrazmoor 0 Report post Posted January 22, 2015 This has prompted intense speculation that AirAsia X CEO Azran Osman-Rani may leave the long-haul budget carrier he has helmed since July 2007. But Azran, when contacted, denies this. Full Report: http://www.theedgemarkets.com/my/article/airasia-and-airasia-x-consolidate-operations Not surprise if the CEO is leaving.... Azran and TF seems have different opinions especially on Europe. Share this post Link to post Share on other sites
KK Lee 5 Report post Posted January 22, 2015 Not surprise if the CEO is leaving.... Azran and TF seems have different opinions especially on Europe. Top executives must be seen dancing to the same tune even if the chief is out of step. Share this post Link to post Share on other sites
Mike P 0 Report post Posted January 25, 2015 I trust AirAsia would come out good strategy to consolidate the business. The branding is strong with the red tag and common name of AirAsia. AirAsia facebook has garnered some 3 mil likes! More than any prominent airlines around the world by half! Share this post Link to post Share on other sites
adibvanhalen 0 Report post Posted February 23, 2015 the A321Neo LR would be a good alternative to downgauge capacity from their A330s. Aust to Asean routes are set back by overcapacity, so if he intends to use KLIA2 as hub and spoke like Emirates' with DXB..Tan Sri TF should utilize Kangaroo routes to Zagreb and Athens using scaled-down capacity of their A333s. I doubt a full-load of 379 pax can take the range. There are lots of Aussies who originate from Croatia and Greece...as well as Italy, but a direct flight to Rome is out of range. Share this post Link to post Share on other sites
flee 5 Report post Posted March 2, 2015 AirAsia X rubbishes merger speculation KUALA LUMPUR, March 2 (Bernama) -- Internal restructuring is taking place at AirAsia X Bhd (AAX), quashing talks that it would need to merge with AirAsia Bhd. Its chairman, Tan Sri Rafidah Aziz, said the company was sorting out all that the airline needed for a turnaround. "While analysing routes are normal, our turnaround plan covers other key aspects of operations such as the allocation of functions and human resources. "The plans we have in place are to meet the changing environment," she said on the sidelines of the International Directors Summit 2015 here today. She said AAX would also manage internal factors such as efficiency, productivity and rationalising functions. "We must ensure that all efforts we have put in place will be improved from time to time," she said. The long-haul low-cost carrier, sank deeper into the red for the financial year ended Dec 31, 2014 with net losses rising to RM519.34 million due to rising operating expenses, compared with RM88.26 million in 2013. The group's operating expenses for 2014 surged 44.8 per cent to RM3.33 billion mainly due to higher staff costs in 2014 which rose 33.9 per cent to RM312.7 million from RM233.6 million in 2013. Revenue, however, was higher at RM2.94 billion, up 27.3 per cent from the RM2.31 billion in 2013. Share this post Link to post Share on other sites
JuliusWong 0 Report post Posted March 23, 2015 AirAsia 15kg luggage allowance is now back for purchase: RM25 each way. Share this post Link to post Share on other sites
