AirAsia chief rules out starting long-haul budget carrier

[Naim 6]

A couple of stories on AK.

 

 

AirAsia chief rules out starting long-haul budget carrier

Sunday October 8, 3:54 PM

 

KUALA LUMPUR (AFP) - The head of Malaysian low-cost carrier AirAsia ruled out establishing a budget long-haul airline and labelled as "preposterous" a report flagging the move.

 

AirAsia's Group Chief Executive Officer Tony Fernandes scotched a report that the carrier's management team was behind the new airline and would submit a business plan to the government.

 

"It's a preposterous idea," Fernandes told AFP. "I'm ruling it out, I don't see it happening, I don't believe in the model."

 

The Edge financial weekly, quoting unnamed sources, reported at the weekend that Fernandes and his associates planned to launch the budget long-haul operator by early next year.

 

One of the routes under consideration was the lucrative Kuala Lumpur to London route currently operated by Malaysia Airlines, it said.

 

Fernandes said he had considered the idea some four years ago before his involvement in AirAsia, but had been advised it was better to start a short-haul airline.

 

"I have enough on my plate doing a short-haul airline," he added.

 

AirAsia was launched as a budget carrier in December 2001 with just two aircraft. It now offers more than 100 domestic and international flights to Malaysia, Thailand, Indonesia, Singapore, Cambodia, Vietnam and the Philippines.

 

 

 

AirAsia urges Malaysian approval for KL-Singapore route

Sunday October 8, 6:55 PM

 

KUALA LUMPUR (AFP) - Low-cost carrier AirAsia has urged Malaysia to approve

its application to fly to Singapore, arguing the government had to reduce

protection for Malaysia Airlines.

 

AirAsia's Group Chief Executive Tony Fernandes said Malaysia had to improve

its connectivity by allowing in more airlines, which would in turn

supplement the budget carrier's network.

 

Malaysian-based AirAsia announced last month it had made a bid to ply the

lucrative Kuala Lumpur-Singapore route, and that it expected to commence

flights by early 2007.

 

"We hope the KL to Singapore route is open quickly so we can get a share of

their hub traffic," Fernandes told AFP.

 

"There should be no a reason for it it not to be open except for the

protection of Malaysia Airlines," he said Sunday.

 

The Malaysian government has said it is studying whether to allow AirAsia

and Singapore-based Tiger Airways to operate the hour-long route currently

monopolised by Malaysia Airlines (MAS) and Singapore Airlines.

 

Fernandes said Malaysia Airlines was facing increasing challenges from

airlines entering the country, and called on the government to allow fair

competition for routes.

 

"More and more Arab airlines are being allowed into Malaysia and they have

to compete with those airlines," he said.

 

"We shouldn't be holding anyone back for the benefit of one party," he

added.

 

The chief executive said AirAsia had no news yet of a decision from the

Malaysian government, but indicated protection for Malaysia Airlines could

be a sticking point.

 

"We are just waiting for the Malaysian government response," he said. "The

only reason not to give a decision would be to protect MAS."

 

AirAsia was launched as a budget carrier in December 2001 with just two

aircraft. It now offers more than 100 domestic and international flights to

Malaysia, Thailand, Indonesia, Singapore, Cambodia, Vietnam and the

Philippines.

[KK Lee 5]

 

KUL/SIN sector is one of the best if not the best yield routes for MH and SQ. Both governments would try to delay AK entry to this route as long as possible. Else MH will incur more losses.

 

 

[Desmond Loo 0]

In light of Air Asia's close sponsorship with Manchester United Football Club and the fact that the four weekly flights that MAS use to have to Manchester was nearly always full, I think that Air Asia should seriously consider Manchester as a destination.

[Tony 1]

In light of Air Asia's close sponsorship with Manchester United Football Club and the fact that the four weekly flights that MAS use to have to Manchester was nearly always full, I think that Air Asia should seriously consider Manchester as a destination.

Hop to Manchester with A320? Unlikely that AK will acquire another aircraft type to complicate its maintenance and fleet. Also, flying to Manchester with AK? Don't think it'll be comfortable with the limited and pay-as-you-go service.

 

My 2 cents.

[KK Lee 5]

In light of Air Asia's close sponsorship with Manchester United Football Club and the fact that the four weekly flights that MAS use to have to Manchester was nearly always full, I think that Air Asia should seriously consider Manchester as a destination.

 

Understand at present, there isn’t a successful business model for long haul LCC.

 

 

 

[Leo 0]

wow for a 12 hours flight we get to choose nasi lemak or some small snacks with 32 inch seat that have limited recline. I think I will be really suffer for that flight And the worse part 15 KG load limit. I don't think I will be hope on the flight.

 

 

[Isaac 0]

wow for a 12 hours flight we get to choose nasi lemak or some small snacks with 32 inch seat that have limited recline. I think I will be really suffer for that flight And the worse part 15 KG load limit. I don't think I will be hope on the flight.

We'll see how JQ fare in the long-haul low-cost market first.

[I. Wong 0]

off topic, AK will fly from KUL to Palembang very soon. saw this advertisement on their website.

[Robert 0]

wow for a 12 hours flight we get to choose nasi lemak or some small snacks with 32 inch seat that have limited recline. I think I will be really suffer for that flight And the worse part 15 KG load limit. I don't think I will be hope on the flight.

 

32 inch seat dream on!! many of the UK long haul charter airlines have 29-30 inch seat pitch and even BA and VS only have 31'.

[Sandeep G 1]

32 inch seat dream on!! many of the UK long haul charter airlines have 29-30 inch seat pitch and even BA and VS only have 31'.

 

meanwhile, the Beeb had a report over the weekend about the resurgence of LCC carriers on transatlantic ops.. this is the newest attempt at bringing the LCC model to transatlantic long haul service since the days of Freddie Laker. UK ailine "ZOOM" is planning services to NY, Miami and the Carribean.. let's see how they do..

 

meanwhile.. looks like with all the happenings around the world, there will be some LCC long haul carriers in the future!