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Saving Airasia Group and Airasia X: Covid-19 Recovery Thread

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AirAsia turns to Cambodia with new airline after woes elsewhere

(Dec 9): Capital A Bhd's AirAsia Aviation Group plans to start a low-cost airline in Cambodia, as tycoon Tan Sri Tony Fernandes reorganises his network following the collapse of a joint venture (JV) in Japan and sale of an India affiliate.

The airline aims to begin operations late next year after receiving regulatory approvals, Capital A said in a statement on Friday. In a subsequent interview with Bloomberg Television, Fernandes said the venture will start with two aircraft and eventually expand to 15.

"It's time for expansion and time for growth," Fernandes said. "Cambodia is a very attractive market, population is up to 13 million, huge tourism potential, not a lot of airline capacity here. The largest airline only has four planes."

Capital A operates budget airlines in Malaysia, Indonesia, Thailand, and the Philippines. AirAsia Japan Co filed for bankruptcy with the Tokyo District Court in 2020, while the company recently sold its stake in an Indian JV to partner Tata Group.

The new airline should be profitable "from the get-go", Fernandes said.

AirAsia India predicted it would break even in four months when it began flying in 2014, but it never made money in a market where high fuel taxes and cut-throat competition could make even dominant players unprofitable. Now the entire aviation industry faces the added challenge of emerging from the Covid-19 crisis, although demand is rebounding swiftly and airfares are rising.

AirAsia operates about 49 weekly flights to Cambodia from Malaysia and Thailand, down from 90 prior to the pandemic, according to its chief executive officer, Bo Lingam. The new airline aims to serve routes within a four-hour radius of Cambodia, he said.

 

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AirAsia X's second ex-PR A330-343 2-RPCA (MSN 1467, previously RP-C8784) arrived in KUL yesterday December 11, 2022. To registered as 9M-XBG.

319181988_10160293946827270_3845626846551074215_n.jpg

Photo Credit: John Ho.

Cabin video of her sister 9M-XBF MSN1475 (previously RP-C8785):

 

 

Edited by JuliusWong

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On 12/7/2022 at 4:32 AM, Zamir said:

AIRASIA X DEC 2022 – MAR 2023 SERVICE ADJUSTMENT – 04DEC22

AirAsia X in recent schedule update adjusted planned operations for Northern winter 2022/23 season. As of 04DEC22, planned service adjustment (previously not covered) between December 2022 and March 2023 as follows.

Kuala Lumpur – Denpasar eff 18DEC22 Increase from 5 to 7 weekly
Kuala Lumpur – Gold Coast eff 15FEB23 Service resumption, 3 weekly (Service announced on Monday 05DEC22)
Kuala Lumpur – Jeddah eff 07FEB23 Reduce from 6 to 5 weekly
Kuala Lumpur – Osaka Kansai eff 20JAN23 Service resumption, 3 weekly (4 from 13FEB23)
Kuala Lumpur – Osaka Kansai – Honolulu Planned service resumption for Honolulu from 01FEB23 moved to 28MAR23 at earliest
Kuala Lumpur – Seoul Incheon eff 01DEC22 Increase from 5 to 7 weekly (10 weekly from 01FEB23)
Kuala Lumpur – Taipei Taoyuan eff 15JAN23 Increase from 3 to 7 weekly

Separately, The Malaysian Aviation Commission (MAVCOM) in October 2022 awarded following traffic rights to AirAsia X, posted in November. Following routes to be commenced from January 2023 at earliest:

Kuala Lumpur – Hong Kong 7 weekly
Kuala Lumpur – Macau 7 weekly

AIRASIA X MOVES HAWAII SERVICE RESUMPTION TO 3Q23

AirAsia X on its web booking system is displaying revised service resumption to Hawaii, based on available flights for reservation. The airline tentatively lists Kuala Lumpur – Osaka Kansai – Honolulu service from 01JUL23, although only highest fare category is available for booking.
 
The airline tentatively schedules 4 weekly flights with A330-300.
 
D7001 KUL1410 – 2135KIX2355 – 1220HNL 330 x247
D7002 HNL1620 – 2140+1KIX2300+1 – 0510+2KUL 330 x247

Additional changes remain possible.

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On 12/11/2022 at 3:01 AM, Zamir said:

 

AirAsia turns to Cambodia with new airline after woes elsewhere

(Dec 9): Capital A Bhd's AirAsia Aviation Group plans to start a low-cost airline in Cambodia, as tycoon Tan Sri Tony Fernandes reorganises his network following the collapse of a joint venture (JV) in Japan and sale of an India affiliate.

The airline aims to begin operations late next year after receiving regulatory approvals, Capital A said in a statement on Friday. In a subsequent interview with Bloomberg Television, Fernandes said the venture will start with two aircraft and eventually expand to 15.

"It's time for expansion and time for growth," Fernandes said. "Cambodia is a very attractive market, population is up to 13 million, huge tourism potential, not a lot of airline capacity here. The largest airline only has four planes."

Capital A operates budget airlines in Malaysia, Indonesia, Thailand, and the Philippines. AirAsia Japan Co filed for bankruptcy with the Tokyo District Court in 2020, while the company recently sold its stake in an Indian JV to partner Tata Group.

The new airline should be profitable "from the get-go", Fernandes said.

AirAsia India predicted it would break even in four months when it began flying in 2014, but it never made money in a market where high fuel taxes and cut-throat competition could make even dominant players unprofitable. Now the entire aviation industry faces the added challenge of emerging from the Covid-19 crisis, although demand is rebounding swiftly and airfares are rising.

AirAsia operates about 49 weekly flights to Cambodia from Malaysia and Thailand, down from 90 prior to the pandemic, according to its chief executive officer, Bo Lingam. The new airline aims to serve routes within a four-hour radius of Cambodia, he said.

 

We don't know how much aid they are getting from the Cambodian government - I remember Fernandes saying that the government placed little to no restrictions on what they can do. Cambodians are still incredibly poor bar a small number of rich business persons. I think that the bulk of the demand will come from tourists visiting the country. So the choice of routes to operate to bring in tourists will be crucial.

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50 minutes ago, flee said:

We don't know how much aid they are getting from the Cambodian government - I remember Fernandes saying that the government placed little to no restrictions on what they can do. Cambodians are still incredibly poor bar a small number of rich business persons. I think that the bulk of the demand will come from tourists visiting the country. So the choice of routes to operate to bring in tourists will be crucial.

International audit back in 2018 cited the aviation industry in Cambodia as being unsustainable unless there's form of subsidies. Believe Ak is going in there with some cambodian gov aid(may not be monetary) and full control of Airasia branding something India and japan was quite reserved on. They've also been trying for decades to start any possible joint venture in Vietnam and China to no avail. 

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AIRASIA X RESUMES BUSAN SERVICE IN FEB 2023

AirAsia X in February 2023 plans to resume Kuala Lumpur – Busan service, its second route between Malaysia and Korea. Upon service resumption on 03FEB23, the airline will operate 3 weekly flights with Airbus A330-300 aircraft.
 
D7518 KUL0210 – 0900PUS 333 135
D7519 PUS1030 – 1550KUL 333 135

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Malaysia to Korea flights have always been popular.

Lets hope they can sustain it and continue to recover from their bankruptcy disaster.

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From Mavcom's November traffic rights bulletin, D7 applied for KUL-SAW (footnote says *vary from KUL-IST*, whatever that means), but they want to fly to Istanbul's MAHB operated airport after going into big dispute with them? 😂

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4 hours ago, Craig said:

 but they want to fly to Istanbul's MAHB operated airport after going into big dispute with them? 😂

How else can they add misleading surcharges and pin it on the airport authority? :D

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Vietjet will be adding four more former AirAsia X Group A330-343E as they plan for more larger long haul network with points in Australia, Middle East and Eastern Europe.

https://www.routesonline.com/news/29/breaking-news/298175/vietjet-plans-more-a330s-for-larger-long-haul-network/

New Registration No./ MSN No/ Previous Registration No./ Lessor

  1. VN-A810    MSN 952    9M-XXA, leased from ICBC
  2. VN-A811    MSN 974    9M-XXB, leased from ICBC
  3. VN-A812    MSN 1165  9M-XXH, leased from ICBC
  4. VN-             MSN 1659  9M-XBC, leased from BOC
  5. VN-             MSN 1646  HS-XTF, leased from BOC
  6. VN-             MSN 1670  9M-XBB, leased from BOC
  7. VN-             MSN 1674  9M-XBA, leased from BOC

They also have added a new A330 door trainer. https://www.timesaerospace.aero/news/training/spatial-welcomes-new-order-for-a330-door-trainer-for-vietjet-air

Looks like AirAsia X Group downfall is Vietjet's rise. Those A330s they are now having come with AirAsia X's J-class cabin and the Y-class are refreshed in black-red leather. Vietjet is getting all these airframes on a silver platter by AirAsia X. 

94621_1640399809.jpg

Edited by JuliusWong

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One of the aircraft I have followed for many years A320 9M-AQQ, which was the worlds first sharklet equipped A32x series plane, finally pinged on FR24 last night after nearly 2 1/2 years in hibernation and is now back flying in familiar airways.

Good to see aircraft returning to the AK fleet, I should really use my gold membership and see where we’re up to with their fleet reactivations. 

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11 hours ago, Tom/PER said:

One of the aircraft I have followed for many years A320 9M-AQQ, which was the worlds first sharklet equipped A32x series plane, finally pinged on FR24 last night after nearly 2 1/2 years in hibernation and is now back flying in familiar airways.

Good to see aircraft returning to the AK fleet, I should really use my gold membership and see where we’re up to with their fleet reactivations. 

Welcome back to Asia/AirAsia I supposed? 

There are still bunch of A320s being stored at the previous LCCT area and MH Cargo building. There is also a lone A320ceo at klia2 P gates (meant for widebody), not sure why she is there. Some were flown to Subang for reactivation/ A and B checks.

At the last financial results press release, Capital A states that "as of November 2022, AAAGL as a group of four airlines had a total of 125 operating aircraft back flying. AAAGL expects to end 2022 with 140 aircraft returned to service and the full return of its fleet, totalling 205 aircrafts, by the second quarter of 2023". Source

Planespotters.net is currently showing a total of 232 A320ceo/A320neo and A321neo, meaning 27 airframes will be removed from their operating fleet.

Edited by JuliusWong

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Reactivating aircraft is a complex process. So many factors involved and the cost is high. So everything needs to be balanced. It takes time too - QF says it takes several months to bring back its A380 from the desert. Although A320 checks are simpler, they still need time as supply chain difficulties will largely dictate how soon an aircraft can be activated.

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AIRASIA RESUMES KUALA LUMPUR – BALIKPAPAN ROUTE IN 1Q23

AirAsia in March 2023 plans to add Kuala Lumpur – Balikpapan service, last served until July 2016. The airline plans to resume this route on 08MAR23, with Airbus A320 aircraft scheduled twice weekly.

AK483 KUL0930 – 1230BPN 320 37
AK482 BPN1255 – 1545KUL 320 37

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AirAsia to lease 15 new planes to meet demand,  teases Southeast Asia Units

Source: https://www.thestar.com.my/business/business-news/2023/02/08/airasia-to-lease-15-new-planes-to-meet-demand

SINGAPORE: AirAsia plans to take on lease 15 additional aircraft to meet travel demand from China now that it has reopened its borders, according to the chief executive officer of the budget carrier’s parent company Capital A Bhd.

“We are so bullish on growth that we’re in negotiations now to sign 15 new aircraft from lessors,” Tan Sri Tony Fernandes told Reuters on the sidelines of an event.

“The fact that we are talking about new planes means things are coming back.”

“The uncertainty of routes have now gone with China opening. And there’s a clear path to normalcy, to 2019 pre-Covid,” Fernandes said. The 15 aircraft are on top of the 326 planes already on the company’s order book until 2030.

Currently, AirAsia has 150 planes in the air and expects to put all 204 of its fleet back in service by August.

On February 8th, Fernandes also teased plans for the group to add two more units in Southeast Asia. He added that the two new units would arrive in late  and complete the airline plan for Southeast Asia.

Although he did not disclose where the units would be based, the remaining countries without an AirAsia unit are Vietnam, Laos, Singapore, Brunei, and Myanmar. This comes as AK is creating a new unit in Cambodia which is the first new unit set up by the airline in over ten years. AirAsia plans to launch operations by the end of 2023.

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AirAsia suspending Kuching-Penang direct flights effective March 1

Source: https://www.theborneopost.com/2023/02/07/airasia-suspending-kuching-penang-direct-flights-effective-march-1/

KUCHING (Feb 7): AirAsia is suspending direct flights between Kuching and Penang effective March 1 this year due to operational reasons.

The airline in a statement today said that affected guests have been contacted by email and notified that their flights have been moved to the best available ‘FlyThru’ options between the two destinations with a stopover in Kuala Lumpur (KLIA2) so as to avoid any disruption to their travel plans.

Now Firefly can conquer PEN-KCH market......

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7 hours ago, JuliusWong said:

AirAsia suspending Kuching-Penang direct flights effective March 1

Now Firefly can conquer PEN-KCH market......

It looks like this is just an excuse to redeploy the aircraft on higher yielding routes. They are smarter now and don't wish to get into another irrational competition with FY. They don't have cash to burn like they did the last time. 

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3 hours ago, flee said:

It looks like this is just an excuse to redeploy the aircraft on higher yielding routes. They are smarter now and don't wish to get into another irrational competition with FY. They don't have cash to burn like they did the last time. 

I think the reason is more of AirAsia is really short of cockpit crew now. A lot of them have resigned post pandemic and taken up offer in Vietnam, Middle East, Taiwan and Turkey. Some even paid to break the bond, or their new employer paid off AirAsia. Tony Fernandes can't do much though since he is running a scam shithouse with AirAsia. Really pity those who have no choice but to stay put. 

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8 hours ago, JuliusWong said:

I think the reason is more of AirAsia is really short of cockpit crew now. A lot of them have resigned post pandemic and taken up offer in Vietnam, Middle East, Taiwan and Turkey. Some even paid to break the bond, or their new employer paid off AirAsia. Tony Fernandes can't do much though since he is running a scam shithouse with AirAsia. Really pity those who have no choice but to stay put. 

Its pretty much same for airlines in Indonesia and MH.

Foreign competitors offering sign on bonuses ranging from rm100k to sometimes rm300k which is easy fo waive off your bond debt. Salary standard monthly gross of rm14k ish is now potentially usd 18k-25k ish gross with housing rental allowance not yet added. Some even offer spouse and children allowance if you opt to bring them over.

Ability to select balance lifestyle for okayish usd salary or choosing super high work hours hours for more(something no airlines in msia and indon has offered). 

Indonesia tried to block the exodus by implementing the "i dont recognize the hours you fly overseas" except nobody bothers and still go overseas lol. 

Some carriers in America argued its not level field playing that some rich airlines can just tap into the hr pool that easily but failed to coax its own local to join. Other airlines ended up spending resources to handle the turnover.

Edited by jahur

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On 2/11/2023 at 12:28 AM, JuliusWong said:

I think the reason is more of AirAsia is really short of cockpit crew now. A lot of them have resigned post pandemic and taken up offer in Vietnam, Middle East, Taiwan and Turkey. Some even paid to break the bond, or their new employer paid off AirAsia. Tony Fernandes can't do much though since he is running a scam shithouse with AirAsia. Really pity those who have no choice but to stay put. 

Quite the opposite, they still have many on furlough and operating with half month work pattern. Those flying are only working half of what they used to.

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May be an image of text that says "RM0 1/2 AirAsia: Your AirAsia direct flight from DMK-BKI on 23Jun23 has been cancelled and rerouted as a Fly-Thru flight FD319 departing DMK to BKI (vi RM0 2/2 ia KUL) at 13:50 hrs. Pls check your email for more info."

AirAsia Malaysia will be cancelling its BKI-DMK flight with last flight departing on March 17, 2023. Thereafter passengers will be routed through KUL. If I am not mistaken, AirAsia Malaysia has been flying this route since 2002 on and off. The current rendition commenced on May 2022. Thai AirAsia started their own flight in April24, 2004 via Johor Bahru.

As historical record, Thai Smile flew the same route from March 26, 2017 to Sept 1, 2017 and AirAsia Thailand flew from Aug 16, 2018 till Oct 29, 2019.

 

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10 hours ago, JuliusWong said:

May be an image of text that says "RM0 1/2 AirAsia: Your AirAsia direct flight from DMK-BKI on 23Jun23 has been cancelled and rerouted as a Fly-Thru flight FD319 departing DMK to BKI (vi RM0 2/2 ia KUL) at 13:50 hrs. Pls check your email for more info."

AirAsia Malaysia will be cancelling its BKI-DMK flight with last flight departing on March 17, 2023. Thereafter passengers will be routed through KUL. If I am not mistaken, AirAsia Malaysia has been flying this route since 2002 on and off. The current rendition commenced on May 2022. Thai AirAsia started their own flight in April24, 2004 via Johor Bahru.

As historical record, Thai Smile flew the same route from March 26, 2017 to Sept 1, 2017 and AirAsia Thailand flew from Aug 16, 2018 till Oct 29, 2019.

 

Bki thailand direct requires strong consistent local support(non tourism) which currently it does not. Even flights to Jakarta and Bali direct have failed consistently.

It is noted Sabah has very weak Asean connection as usually these segments are not tourist oriented but rely more towards work industry related as in the case for PEN. But Sabah has been very weak in pushing anything outside of tourism/agriculture. 

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AirAsia X posts net profit of RM153.48m for 3 months, boosted by year-end travel season

https://www.malaymail.com/news/money/2023/02/21/airasia-x-posts-net-profit-of-rm15348m-for-3-months-boosted-by-year-end-travel-season/56111?utm_term=Autofeed&utm_medium=Social&utm_channel=Echobox&utm_source=Twitter#Echobox=1676996622

KUALA LUMPUR, Feb 21 — AirAsia X Bhd (AAX) posted a net profit of RM153.48 million for three months ended Dec 31, 2022 on the back of a strong revenue of RM339.29 million by carrying 337,638 passengers, boosted by the year-end peak travel season.

In a statement, it said the average base fare in the quarter was a record high at RM866 strengthened by the as-anticipated and continuing pent-up demand for international air travel within the region.

Ancillary revenue per passengers recorded RM196 during the quarter, up 17 per cent compared to the same period in 2019. Passenger Load Factor (PLF) was healthy at 79 per cent, up six percentage points from the previous quarter, and showed an over 97 per cent recovery of the same period in 2019.

As of the end of December 2022, AirAsia X’s fleet size stood at 14 A330s, with seven aircraft activated and operational. TAAX’s fleet size for the same period stood at eight A330s, with five aircraft activated and operational. 

 

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I have serious doubts about their financial statements. They have twice changed their financial years. This time, they did not give comparative figures for the corresponding period of the previous year. This serves to mask their true financial position. Also, they continue to receive a lot of complaints about refunds - definitely not a good sign for the future. There are still many planes stored at KUL and DMK. I wonder how many of these will be reactivated or are they getting some more aircraft from elsewhere?

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1 hour ago, flee said:

I have serious doubts about their financial statements. They have twice changed their financial years. This time, they did not give comparative figures for the corresponding period of the previous year. This serves to mask their true financial position. Also, they continue to receive a lot of complaints about refunds - definitely not a good sign for the future. There are still many planes stored at KUL and DMK. I wonder how many of these will be reactivated or are they getting some more aircraft from elsewhere?

Currently for short haul arms, they have about 150 out of 204 A320ceo/neo and A321neo activated and in active operation. They target the rest should be up and running by end of August 2023. A bit optimistic given they are short of manpower. A330 fleet wise they left with only 23 airframes now, including one with AirAsia. 15 are currently active, but short of cabin crew and pilots are hindering their expansion. Also China gomen is not really keen in approving hundreds of foreign airlines overnight despite opening its borders and PRC citizens are now also not as eager as pre-pandemic to travel aboard due to credit constraint. Guess they need to wait.

Customer service wise still s#1t....oh well.....

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