Asmara Air..finally some details

[Mushrif A 3]

Looks like they are taking up 2 ex-MH F50s...but still remain to be seen if it will actually fly....

 

From the NST:

 

Asmara Air may start boutique charter service by year-end

By Anna Maria Samsudin

bt@nstp.com.my

 

 

September 30 2006

 

 

ASMARA Air, the latest entry to Malaysia’s aviation industry, may see its planes take off by the end of this year.

A source from the Department of Civil Aviation (DCA) confirmed that the airline would get its Air Operator Certificate (AOC) permit soon, after having complied with the requirements.

 

Operating a boutique charter service, the airline currently plans to fly on domestic routes such as Ipoh, Kota Baru, Alor Setar, Penang, Johor Baru, Kuala Lumpur, Terengganu, Kerteh and Malacca, as well as the Indonesia/ Malaysia/Thailand — Growth Triangle (IMTGT) routes, namely Phuket, Pekan Baru, Aceh, Medan and many more.

 

Asmara Air chief operating officer, Fadzil Abdullah, said the firm will need RM30 million to start operations.

 

A huge portion of the financing comes from Kuwait Finance House, while the rest are from its current shareholders.

 

He said the airline will operate via its domestic hubs in Bayan Lepas Airport in Penang, the KL International Airport (KLIA), Subang, Malacca, Ipoh and Johor Baru.

 

Initially, the airline will operate two F50s aircraft, which are leased from Penerbangan Malaysia Bhd (PMB), and hope to add another two B737s to its current fleet by early next year.

 

“We are certainly excited about this.

 

We hope that our presence will contribute towards stimulating Malaysia’s airline and travel industry further,” Fadzil told Business Times in an inter view.

 

Asmara Air was founded by Datuk Fuad Hassan, an entrepreneur from Perak.

 

Although the airline had only made public of its presence recently, talk of Asmara Air has been circulating among industry players for the past few years.

 

According to sources, Asmara Air had applied for a permit from the authorities three years ago.

 

Looking at the growing demand for charter air service, Fadzil is optimistic that the airline would be able to break even, or even make a small profit, in the first year.

 

In addition, the airline is banking on the personalised holiday packages offered by its fully-owned tour and travel arm, Asmara Charter Travel and Tours.

 

“From the way I see it, the regional charter industry, estimated to be valued at RM750 million, is currently under- ser ved.

 

“The current charter business is mainly served by the scheduled airlines, which are not able to fully cater to the actual market demand.

 

“There is certainly ample opportunity for us to capture a slice of the regional air charter market,” he added.

 

Asmara Air aspires to provide boutique travel packages to cater to professionals, corporations, groups and individuals.

 

Just like AirAsia, the airline will also sell its tickets via the Internet, at www.asmarair.com.

 

[Raj 0]

Mushrif, Thanks for the Link..

So these 2 F50's that they want to start with, aren't they with FAX??

And i'm guessing they Would Probably get their 737's from AK..

Anyway, All the best to them..

[Sanjay Thaker 0]

thanx mushrif...now we have some light on this..

[Samsyuri 0]

So these 2 F50's that they want to start with, aren't they with FAX??

 

Another 3 F50's still in SZB..

 

 

[Syaz 0]

Mushrif, Thanks for the Link..

So these 2 F50's that they want to start with, aren't they with FAX??

And i'm guessing they Would Probably get their 737's from AK..

Anyway, All the best to them..

 

 

3rd hand aircraft? huhu

 

 

[Edwin Yii 0]

well the more airlines in M'sia = more jobs avail !

[Peter Smith 1]

Edwin, thats exactly the way I read into it!

[Andrew Yong 0]

Malacca Malacca

[Robert 0]

From todays Star

 

Storm in the sky?

 

The entry of Asmara Air into the country's closely-guarded airline sector threatens to shake things up. Even so, in an interview with BizWeek's DARSHINI M NATHAN, its chairman Fuad Hassan insists this is not so

 

THE local aviation sector, currently dominated by national carrier Malaysia Airlines and low-cost carrier AirAsia Bhd, will soon be making way for the entry of full-service charter operator Asmara Air Services Sdn Bhd.

 

That the newbie has managed to keep a tight lid on its business strategy until recently has caused a fair bit of speculation on how it intends to position itself beside the country's two major players who have already been through a turbulent patch to guard their territory.

 

Initially, industry watchers reckoned that Asmara Air would exploit the region's growing demand for budget air services and introduce a service based on the low-cost carrier model.

 

But Asmara Air Services chairman Datuk Fuad Hassan, eager to clear the air about the company's soon-to-be-launched operation, says the mutterings in the market are far from the truth.

 

“People keep saying that we are likely to be a threat to the other players. We say no, because we will operate in a different area and target different segments of the market.

 

“The type of service we provide will vary depending on our customers' budget. We will provide boutique services for those who can afford it and want that kind of luxury. At the same time, we can strip down our services so that we provide wet list or dry list charter services,” he tells BizWeek.

 

Asmara Air, which will operate from its base in Penang, is expected to launch its maiden flight before the end of the year. The charter operator expects to get its air operator certificate from the Department of Civil Aviation within the next few weeks now that it has complied with all of the department's necessary requirements.

 

Still, one could be forgiven for pitting Asmara Air against MAS and AirAsia.

 

Although it would be a stretch to say that the start-up will be an immediate threat to the incumbents, a few industry observers say that in time, it could give the two dominant players a run for their money.

 

For one thing, Asmara Air's fast-tracked expansion programme is a clear indication that the company is optimistic about its growth prospects.

 

Fuad declined to disclose the company's fleet size or the funding that is required to commence operations. But he says that by the middle of next year, Asmara Air hopes to operate long-haul flights to destinations in West Asia and Europe. This would tie-in with the fourth phase of its expansion plan when it takes delivery of a Boeing 777.

 

The market potential for charter services is purportedly worth more than RM700mil at this point in time. According to Fuad, only 30% of that demand is currently being served.

 

It is telling that MAS too is looking to exploit West Asia's vast and untapped charter flight market.

 

The national carrier expects to see revenue from its charter operation grow 10% annually driven by the expansion of its charter services into West Asia.

 

Currently MAS operates charter flights when it has spare aircraft. The division contributes less than 5% to group topline currently.

 

A local bank-backed brokerage says that while it is too early to be concerned about the prospects of existing players, the flight certificate could ease Asmara Air's entry into the scheduled passenger flights segment once it acquires the scale. This would raise competition in the domestic air travel industry.

 

 

 

Exploiting the grey area

 

Fuad says the idea to launch a full-service charter airline was spurred by the realisation that there exists a grey area between traditional charter services and scheduled passenger flights.

 

“Asmara Air feels it can exploit this underserved segment by offering something more than just traditional charter,” he explains.

 

With that in mind, the charter airline intends to operate charter-based scheduled flights targeted at niche markets.

 

“You will find that there is a ready market for flights between KL and Kerteh, for example... or even Ipoh and Aceh. Because these routes are currently not being served, a group from Ipoh wanting to fly to Aceh now has to depart from KLIA,” Fuad says.

 

Asmara Air will work closely with its general sales agent Asmara Charter Travel and Tours Sdn Bhd (ACCT).

 

He points out that ACCT will operate as a separate entity although essentially it will function as Asmara Air Services' marketing arm.

 

ACCT will be tasked with coming up with the travel products and packages. It will post a list of available flights and tour packages on its website about three months in advance of the flight dates for customers to make their bookings.

 

“Electronic ticketing will help the company control its costs,” Fuad says.

 

ACCT will then pass the schedule to Asmara Air to operate the flights. In short, this means that ACCT will be chartering flights from Asmara Air to fulfil its flight bookings.

 

Fuad says the Asmara Air will honour the bookings regardless of whether the aircraft has a sufficient load factor.

 

“But we don't anticipate a problem here as ACCT's schedule will be based on patterns of demand,” he says.

 

The Companies Commission of Malaysia lists Fuad, a former Selangor state assemblyman, together with Subhi Dziyauddin, Roslina Bahari and Annamalai Kasiviavanathan, as directors of Asmara Air Services.

 

The company is 76%-owned by Semarak Imej Sdn Bhd. Its other shareholders include D'Fameux Corp (M) Sdn Bhd, which holds 12% equity, and individuals Hilmy Othman and Jamaludin Mohd Jaan, who each own 6% of the company.

 

Roslina, who is the company's business development director, also heads ACTT. Her airline experience includes a stint at MAS' charter division.

 

Subhi is currently a director and substantial shareholder of Mesdaq-listed EB Capital Bhd. He is also a director in Metronic Global Bhd, another Mesdaq company. He served as a director in Putera Capital Bhd for about two years before resigning in 2005.

 

Asmara Air Sevices' chief operating officer Fadzil Abdullah is said to have more than 30 years' of experience in the aviation industry.

 

 

Class of its own

 

Fuad is keen to point out the differences between the services Asmara Air will soon offer and those currently operated by MAS and AirAsia.

 

For starters, its customers will have the flexibility to choose their destinations because of Asmara Air's charter business model.

 

“Because we are full-service, we will provide meals onboard most of our flights, have numbered seating and fly through KLIA. In terms of pricing, our rates will fall between those offered by MAS and AirAsia,” Fuad explains.

 

Initially, the operator will focus on short hops between domestic town and cities, particularly the underserved ones like Alor Setar, Ipoh, Malacca, Kota Baru, Kerteh and Trengganu. The short hops are ideal for the Fokker 50 aircraft the company intends to operate in the first phase.

 

“We hope to have our 737s by early next year. With that, we can launch the second phase and start flights to Sabah and Sarawak as well as medium-range distances like the Indonesia Malaysia Thailand - Growth Triangle.

 

Here we will concentrate on destinations like Aceh, Penang, Phuket, Haadyai and Riau,” Fuad says.

 

Phase three will involve Asian region destinations like China and India.

 

Its long-haul flights under phase four are expected to kick off towards the middle of next year.

 

“We have no problems in terms of funding. We are a start-up company so everyone is looking at us. We have offers from a few bankers, international as well as local. But we have adequate funds,” he says.

 

That sounds vaguely familiar to Air Asia's story when it was about to begin operations five years ago; funds were then said to be flocking to pour money into the company based on their strong belief of the growth potential of a low cost carrier. Nobody predicted then that Air Asia's business would thrive to the extent of posing a threat to the national airline.

 

A worthy point indeed, for the incumbents to take note.

 

[Radzi 2]

There are still lots of secondary route to be served in the country. JHB-IPH, AOR-KBR comes to mind. F50 or smaller is the way to go for this routes.

[Seng Lim 0]

Phase 1 : F50 serving small cities in peninsular Malaysia by end of this year.

Phase 2 : B737 to Sabah Sarawak early next year.

Phase 3 : India & China

Phase 4 : B777 to West Asia and Europe middle of next year .

 

From F50 serving domestic to B737 then to India & China and B777 to West Asia and EU all within a year? Seems like all they know is just talk big and that's their way to get attentions

 

[Seth K 3]

Phase 1 : F50 serving small cities in peninsular Malaysia by end of this year.

Phase 2 : B737 to Sabah Sarawak early next year.

Phase 3 : India & China

Phase 4 : B777 to West Asia and Europe middle of next year .

 

From F50 serving domestic to B737 then to India & China and B777 to West Asia and EU all within a year? Seems like all they know is just talk big and that's their way to get attentions

Middle next year to EU when they ready to take 777...........too big ambitious By middle of next year iz like a short term wit big time plan, right now, they should already send proposals for available second hand 777/737 Oh well, another good news for spotters round the world!!!

Edited October 14, 2006 by Seth K

[Keno Omar 0]

Phase 1 : F50 serving small cities in peninsular Malaysia by end of this year.

I hope these F50 routes will be served from SZB. It's quite a backtrack to travel all the way down to KLIA for such a short hop, unless you're living in Nilai or Seremban...

[Sing Yew 1]

Phase 2 : B737 to Sabah Sarawak early next year.

 

From F50 serving domestic to B737 then to India & China and B777 to West Asia and EU all within a year? Seems like all they know is just talk big and that's their way to get attentions

 

Do I smell head-on competition with AK and MH ?

 

[Izanee 0]

do they think they will be our own 'emirates'? what the??

[S V Choong 4]

A bit too optimistic, most airlines today are struggling to survive.

[Tony 1]

Phase 1 : F50 serving small cities in peninsular Malaysia by end of this year.

Phase 2 : B737 to Sabah Sarawak early next year.

Phase 3 : India & China

Phase 4 : B777 to West Asia and Europe middle of next year .

righto...my thought: IMPOSSIBLE!

 

just think of the cost associated with keeping 3 different fleet types!

[Isaac 0]

Phase 2 : B737 to Sabah Sarawak early next year.

Wow ! Is that mean more flight between KUL/BKI and KUL/KCH ?

 

[Andrew Ong 1]

Looks like they are taking up 2 ex-MH F50s...but still remain to be seen if it will actually fly....

 

From the NST:

 

Asmara Air may start boutique charter service by year-end

By Anna Maria Samsudin

bt@nstp.com.my

September 30 2006

ASMARA Air, the latest entry to Malaysia’s aviation industry, may see its planes take off by the end of this year.

A source from the Department of Civil Aviation (DCA) confirmed that the airline would get its Air Operator Certificate (AOC) permit soon, after having complied with the requirements.

 

Operating a boutique charter service, the airline currently plans to fly on domestic routes such as Ipoh, Kota Baru, Alor Setar, Penang, Johor Baru, Kuala Lumpur, Terengganu, Kerteh and Malacca, as well as the Indonesia/ Malaysia/Thailand — Growth Triangle (IMTGT) routes, namely Phuket, Pekan Baru, Aceh, Medan and many more.

 

Asmara Air chief operating officer, Fadzil Abdullah, said the firm will need RM30 million to start operations.

 

A huge portion of the financing comes from Kuwait Finance House, while the rest are from its current shareholders.

 

He said the airline will operate via its domestic hubs in Bayan Lepas Airport in Penang, the KL International Airport (KLIA), Subang, Malacca, Ipoh and Johor Baru.

 

Initially, the airline will operate two F50s aircraft, which are leased from Penerbangan Malaysia Bhd (PMB), and hope to add another two B737s to its current fleet by early next year.

 

“We are certainly excited about this.

 

We hope that our presence will contribute towards stimulating Malaysia’s airline and travel industry further,” Fadzil told Business Times in an inter view.

 

Asmara Air was founded by Datuk Fuad Hassan, an entrepreneur from Perak.

 

Although the airline had only made public of its presence recently, talk of Asmara Air has been circulating among industry players for the past few years.

 

According to sources, Asmara Air had applied for a permit from the authorities three years ago.

 

Looking at the growing demand for charter air service, Fadzil is optimistic that the airline would be able to break even, or even make a small profit, in the first year.

 

In addition, the airline is banking on the personalised holiday packages offered by its fully-owned tour and travel arm, Asmara Charter Travel and Tours.

 

“From the way I see it, the regional charter industry, estimated to be valued at RM750 million, is currently under- ser ved.

 

“The current charter business is mainly served by the scheduled airlines, which are not able to fully cater to the actual market demand.

 

“There is certainly ample opportunity for us to capture a slice of the regional air charter market,” he added.

 

Asmara Air aspires to provide boutique travel packages to cater to professionals, corporations, groups and individuals.

 

Just like AirAsia, the airline will also sell its tickets via the Internet, at www.asmarair.com.

 

 

Malaysia Airlines now has the stiffiest competition is its history.

 

[Andrew Yong 0]

Phase 1 : F50 serving small cities in peninsular Malaysia by end of this year.

Phase 2 : B737 to Sabah Sarawak early next year.

Phase 3 : India & China

Phase 4 : B777 to West Asia and Europe middle of next year .

 

From F50 serving domestic to B737 then to India & China and B777 to West Asia and EU all within a year? Seems like all they know is just talk big and that's their way to get attentions

If their plans smoothly, that was a very good news !!!!BUT if the plans too hard to make it ??? is better serve only within Malaysia espeacially between east and west Malaysia!!!

[Sandeep G 1]

Hmm.. I think a bit over-ambitious.. but the poli's will be getting excited and that's important for Asmara in the beginning..

 

I think they're starting off on the wrong foot anyway... they should jump straight into India/China.. one only needs to operate a single aircraft between KUL and Madras to make money.