Flying cheap from KL to London??

[Sri Ramani K. 0]

Flying cheap from KL to London

Budget flights expected to start in July

30 Dec 2006

Anna Maria Samsudin

 

 

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KUALA LUMPUR: After dominating the regional low-cost-carrier (LCC) market within just five years, airline whizzes Datuk Tony Fernandes and Datuk Kamaruddin Meranun are now ready to take on Europe, and London is the likely maiden destination.

 

Word has it that the Kuala Lumpur-London route would be the first of several more low-cost long-haul air services to be offered.

 

Scheduled to take off by July next year, it is believed that the service would be the world’s longest LCC route and would fast-track Malaysia into becoming a leading global LCC hub.

 

Fernandes, who is AirAsia chief executive officer, declined to confirm or deny speculation when contacted by Business Times.

 

He said the long-haul service was not a model for AirAsia because the airline focused on short-haul travel with flight times of three to four hours.

 

 

 

He said that while he believed there was huge potential for a budget long-haul air service model, “currently, there is no budget long-haul model that we really like”.

 

“It is just a matter of time before someone comes up with a good model for a low-cost carrier and I hope the innovation would come from Malaysia.

 

“This would complement our efforts in turning KLIA into the Dubai and Changi for LCCs," he said yesterday.

 

Although details are sketchy, sources close to the deal said the Kuala Lumpur-London service would be a partnership between AirAsia and Fly Asian Xpress (FAX).

 

FAX — privately owned by Fernandes, Kamaruddin (picture) of AirAsia and former AirAsia chief financial officer Raja Azmi Raja Razali — is the operator of rural air services in Sabah and Sarawak.

 

In conjunction with the plan, FAX is in talks with several parties to look for wide-body aircraft, namely Boeing 777s or Airbus 330s, to lease or buy.

 

The Kuala Lumpur-London flight service would most likely stop over in Dubai and may have two seat classes, economy and "super economy", which is equivalent to business class.

 

The budget flights will probably seek to land at airports near London where landing charges are lower.

 

Malaysia Airlines (MAS) is the only carrier operating non-stop full-service Kuala Lumpur-London routes 18 times weekly.

 

A check showed the lowest return trip on MAS costs between RM4,000 and RM5,000, including taxes, and RM18,000 for business class.

 

For the budget flights to be competitive, because they have a stopover, the pricing must be substantially lower to attract travellers.

 

Analysts contacted by Business Times were positive about a budget Kuala Lumpur-London service, which they believe would open up a new market segment for long-haul flights.

 

Nevertheless, they said the nature of long-haul flights was different from normal LCC business and required thorough planing to work.

 

Oasis Hong Kong Airlines is the sole operator of a budget long-haul service via its Hong Kong-London flights that started in October.

 

It is the second airline in the world, after the defunct Laker Airways Skytrain, to adopt the long-haul budget service model.

 

Although Oasis has plans to expand to other parts of Europe, market observers said the airline was having difficulties due to the complexity of running a budget long-haul model.

 

Aviation analyst Shukor Yusof, from Standard & Poor’s Equity Research in Singapore, said the market for long-haul flights was different from the normal LCC market.

 

He said long-haul business was more complicated and had a higher risk factor.

 

"LCCs flying long haul must be prepared to see their costs rise in return for lower yields."

 

On whether the new service would have a negative impact on the national carrier, TA Securities analyst Rosnani Rasul was optimistic that the "cake" was big enough for everyone.

 

"The new service will create a new market segment. It will not cannibalise MAS."

 

While optimistic that a budget long-haul service would work, she said details such as food, beverage and entertainment had to be looked into because of the lengthy flight time involved.

 

"I don’t think they can adopt AirAsia’s current no-frills model."

 

*NST 30/12/2006

[Andrew Ong 1]

In conjunction with the plan, FAX is in talks with several parties to look for wide-body aircraft, namely Boeing 777s or Airbus 330s, to lease or buy.

 

Would love to see a Boeing 777 or an Airbus A330 in AK or FAX livery

 

[Isaac 0]

"I don’t think they can adopt AirAsia’s current no-frills model."

AK can consider JQ's.

 

[Pieter C. 5]

Flying cheap from KL to London

Budget flights expected to start in July

 

In conjunction with the plan, FAX is in talks with several parties to look for wide-body aircraft, namely Boeing 777s or Airbus 330s, to lease or buy.

 

The Kuala Lumpur-London flight service would most likely stop over in Dubai and may have two seat classes, economy and "super economy", which is equivalent to business class.

 

Loads on Oasis to LGW are quite good, so there must be a market...so, starting already July 2007, huh; any idea which of the 4 LON airports will be used ?

 

For cockpit-crew commonality, the A330 would be favoured (less training for the A320 crews)...

 

A320 deliveries sofar were via SHJ: think that airport is by far cheaper for handling, etc. than DXB...just my 2 sen

[S V Choong 4]

I am sure many Malaysian at home have already read the news

 

The following are Chinese only pages, sorry :

 

http://www.sinchew.com.my/content.phtml?se...id=200612301682

http://www.sinchew.com.my/content.phtml?se...id=200612301708

 

Happy New Year 2007

Edited December 31, 2006 by S V Choong

[Seng Lim 0]

Airasia is not flying to Shanghai & Beijing but to 2 destination that close with shanghai & Beijing.

According to the news these 2 cities one of it is a popular holiday destination while the other is a port city.

 

My bet for Shanghai will be Nanjing, Suzhou or Hangzhou (both popular holiday destination and pretty close to Shanghai).

For Beijing my bet will be Tianjin since it was pretty close with Beijing and it's a port city, another holiday spot as well.

[S V Choong 4]

Seriously Nanjing is pretty far from Shanghai. Nanjing's new airport is pretty far from Nanjing city (South of Nanjing). Suzhou might be a good choice as it is between Nanjing and Shanghai, however, does Suzhou and Wuxi have an airport??

 

Ningbo is also a port city just south of Shanghai and right next to Hangzhou, both in Zhejiang province. The Chinese will built a long bridge (one of the world's longest bridge) to connect the channel that separates Ningbo and Shanghai. Hangzhou itself is not a port city, but a very popular tourist destination. Wonder if there's a chance for AK to fly into older Shanghai Hongqiao airport as oppose to the newer Shanghai Pudong as well.

 

Looks like Tianjin might be the airport that Air Asia is going to fly to in Northern China.

Edited December 31, 2006 by S V Choong

[KK Lee 5]

 

A strip down A320 may make to STN via AUH.

 

Until AK found a viable long haul LCC business model, believe AK is just teasing MH.

 

[Seth K 3]

For reasons, I think AK will have PTV inside their will-be 777/330. If they looking for a really cheap plane, there are bunch out there available cheap + PTV installed. AK realized that by having PTV, their revenue will go up.......entertainment has psichology effect ya know And how come A.nutter discussing that AK offer USD6 one way to LON......

 

If AK do offer this route, I will be flying often between LON-KUL next year for spotting

Edited December 31, 2006 by Seth K

[Andrew Ong 1]

For me, if AK does offer the KUL-LHR route, maybe my family can go to LHR from KUL via TPE and LAX (yes I want to go to LHR from LAX the long way )

 

If AK does operate a T7, then it may be my very first time on a 777

[Edwin P K 0]

I like the idea...cheap traveling...everyone should get a chance to visit the world!

 

With AA, now everyone can fly!

 

 

[Pieter C. 5]

London for 20 Ringgit ???

[Imran K. 0]

In keeping with the fleet commonality issue...whats to stop AK from buying A340's?

 

Same cockpit...

 

KUL-LHR on an A343...possible...

 

but on an A345...easy peasy

[Isaac 0]

For Beijing my bet will be Tianjin since it was pretty close with Beijing and it's a port city, another holiday spot as well.

 

Looks like Tianjin might be the airport that Air Asia is going to fly to in Northern China.

Problem is AK 320 won't be able to reach TSN from KUL non-stop, especially that AK newer 320 have derated engines and it got 180 seats. From BKI may be (i suspect they still might have some restrictions because of too many seats in AK 320) but the press said it's gonna be from KUL.

 

 

Seriously Nanjing is pretty far from Shanghai. Nanjing's new airport is pretty far from Nanjing city (South of Nanjing). Suzhou might be a good choice as it is between Nanjing and Shanghai, however, does Suzhou and Wuxi have an airport??

 

Ningbo is also a port city just south of Shanghai and right next to Hangzhou, both in Zhejiang province. The Chinese will built a long bridge (one of the world's longest bridge) to connect the channel that separates Ningbo and Shanghai. Hangzhou itself is not a port city, but a very popular tourist destination. Wonder if there's a chance for AK to fly into older Shanghai Hongqiao airport as oppose to the newer Shanghai Pudong as well.

There is no airport at Suzhou. Nearest one is from HGH (2.5 hours by taxi). Another one is NKG. As for Wuxi, i think there is one new small airport.

Edited December 31, 2006 by Isaac

[Min Chun 0]

and RM18,000 for business class

Didnt know that the price of a ticket for business class is so high and expensive compare to econowhy which was Rm5k

[Seth K 3]

Didnt know that the price of a ticket for business class is so high and expensive compare to econowhy which was Rm5k

That only biz, try wonder F fares now The price of one biz class seat equal to 4 economy seats. So you can expect 4 x better service in biz class............whcih hardly you can get today

[Pieter C. 5]

Easyjet is denying everything and what came out of last firday's meeting ???

 

AirAsia Considering Virgin Tie-Up

 

January 2, 2007

Malaysian budget carrier AirAsia said it would make a major announcement on a new service on Friday after a report that it was considering an alliance with Britain's easyJet and the Virgin group.

 

"It's a huge announcement. The transport minister will be attending the event in Kuala Lumpur at 10 a.m. (0200 GMT) on Friday." a company spokeswoman said. "It's about a new service."

 

She declined to give further details. AirAsia's Chief Executive Tony Fernandes declined to comment on a Malaysian newspaper report on the alliance.

 

The Star, quoting unidentified sources, said the three airlines were in talks to form a global no-frills alliance that would offer cheap flights within Asia as well as between Europe and Australia via Kuala Lumpur.

 

It said the tie-up would give AirAsia access to London's Stansted Airport. In return, Richard Branson's Virgin and easyJet would have access to Kuala Lumpur airport's low-cost terminal which is the home for AirAsia, it added.

 

Fernandes told Malaysia's New Straits Times on Saturday that there was a potential for a budget long-haul air service model.

 

"It's a matter of time before someone comes up with a good model for a low-cost carrier and I hope the innovation would come from Malaysia," he told the newspaper.

 

But a spokesman for easyJet said on Monday the British airline had not discussed any such alliance with AirAsia. "We are not in any talks with AirAsia or Virgin," he said.

 

The Times newspaper in London reported on Tuesday that Virgin had re-entered talks with AirAsia about taking a stake in the group, which was founded in 2001 by Fernandes, who began his career in the finance department of Virgin Records.

 

Virgin Blue, Virgin Group's Australian unit, had discussed investment possibilities with AirAsia in 2003 but this did not materialize at the time.

 

It is believed a link-up with AirAsia will give Virgin access to Malaysia as well as other countries in the region, including Thailand and Indonesia, The Times said.

 

(Reuters)

 

Any more news, guys ???

 

[BC Tam 2]

Not surprised easyJet has denied they are in talks with the other two parties so far, considering sensitivities that could potentially surface from such a deal - may even have to be subjected to scrutiny of monopolies commission ?

 

Having said that, could also be that Sir Stelios is going in as 'himself' where easyJet would be technically correct in 'not being involved' !! Sir Richard (Mr publicity!) on the other hand has characteristically been less reserved about having his finger in the pie !

 

It is very exciting days indeed for My aviation scene.

 

BTW, if this deal jadi and AK & co. do make a success of the long haul model, any chance they will swap KUL's LCCT with MTB ? Imagine the change, MH at LCCT, AK at MTB (probably cheapen version !)

[Sandeep G 1]

You have to remember that the three amigos - Dato' Tony Fernandes, Sir Richard Branson & Sir Stelios - all have some history together.

 

Tony Fernandes used to work as an accountant for Virgin Atlantic (IIRC) and started at Virgin records - there's his relationship with Sir Branson.

 

Tony Fernandes left the music industry for the airline industry after admiring (Again IIRC) EasyJet birds in London. He then followed around Sir Stelios for a while and learnt the ins and outs of the industry!

 

Sir Stelios has a sterling reputation for his airline in the UK and across Europe - something Virgin Express didn't quite manage to emulate, however, Stelios and Branson are definately a little more flamboyant than Tony Fernandes.

 

And last but certainly not least - I think they all have a certain dis-taste for Michael O-Leary and the Ryanair family!! Remember, Ryanair is Virgin Express' and EasyJet's major rival and were also instrumental in setting up Tiger Airways in Singapore along with their buddies at Temasek!!!

 

ALSO! Do not discount Temaseks want to have a indirect share of the AirAsia group - which could be possible should Virgin Atlantic be involved in the deal!!! But, I doubt this is the case - do they own anything of Virgin Express???

[Pieter C. 5]

Both British airlines denying involvement

 

EasyJet, Virgin Deny AirAsia Tie-Up Talks

 

January 3, 2007

British airlines easyJet and Virgin Atlantic on Wednesday denied media reports which said they might take part in a global low-cost alliance with Malaysian carrier AirAsia or its owners.

 

"We are not joining any alliance," easyJet spokesman Toby Nicol said.

 

"The whole low-cost airline business model is based on simplicity," he added, noting alliances with other airlines involve costs and complications.

 

Virgin Atlantic spokesman Paul Charles said: "It's nothing to do with us. AirAsia clearly have their own plans and it is up to them to announce them."

 

Malaysian newspapers have reported that AirAsia, easyJet and the Virgin Group were in talks to form a global no-frills alliance that would offer cheap flights within Asia as well between Europe and Australia via Kuala Lumpur.

 

A source said that the major owners of AirAsia might pursue a tie-up with the two airlines via FlyasianXpress (FAX), a domestic Malaysian carrier they control.

 

(Reuters)

 

[KK Lee 5]

Both British airlines denying involvement

 

EasyJet, Virgin Deny AirAsia Tie-Up Talks

 

January 3, 2007

British airlines easyJet and Virgin Atlantic on Wednesday denied media reports which said they might take part in a global low-cost alliance with Malaysian carrier AirAsia or its owners.

 

"We are not joining any alliance," easyJet spokesman Toby Nicol said.

 

"The whole low-cost airline business model is based on simplicity," he added, noting alliances with other airlines involve costs and complications.

 

Virgin Atlantic spokesman Paul Charles said: "It's nothing to do with us. AirAsia clearly have their own plans and it is up to them to announce them."

 

 

In many cases, what Malaysian newspapers reported is only worth the paper it is printed on e.g. Disneyland in Johor.

 

 

 

[Kenneth T 0]

It just annouced in the local newspapers yesterday and today..d AirAsia shares shoots up to RM1.65..before closing at RM1.60 i suppose...I thought FAX is suppose to serve the interior part of Sabah and Sarawak only? It may be more economical to forma new company...without distracting the operations of the Sabah and Sarawak flights of which are still in a mess...and often delays...

Well..seems like a new LCC models are beginning to emerged..with different fleet.nowadays

[Sri Ramani K. 0]

well, we'll wait and see since there would be a so called "surprise" on friday...

wonder what could the gimmick be this time around, AirAsia?

[Pieter C. 5]

AirAsia nears low-cost, long-haul startup

 

Thursday January 4, 2007

AirAsia is planning to establish a long-haul budget airline, according to local press reports, through regional affiliate FlyAsian Xpress, in which AirAsia CEO Tony Fernandes holds 50%.

 

AirAsia Executive Director Kamarudin Meranum holds a 30% stake in FAX and Raja Azmi, AirAsia's former CFO and current FAX CEO, owns the rest. FAX flies throughout east Malaysia using seven F50s and five Twin Otters. For the moment, all of its flights are domestic, but according to its website, "it will extend services to international destinations in the future."

 

FAX is expected to form a strategic alliance with European carriers. Several newspapers mentioned that Fernandes would be teaming with Richard Branson of Virgin Group and easyJet's Stelios Haji-Ioannou. Both Virgin Atlantic Airways and easyJet yesterday denied they were in talks with AirAsia or its owners to form a global low-cost alliance, Reuters said. "We are not joining any alliance," an easyJet spokesperson told the news agency. "The whole low-cost airline business model is based on simplicity."

 

Fernandes is scheduled to unveil at a Friday news conference "a revolutionary service that will change the face of aviation travel forever," AirAsia said.

 

The new low-cost, long-haul venture reportedly would launch from Kuala Lumpur International's low-cost terminal to Manchester and Amritsar. In a second phase it would operate to Hangzhou and Tianjin and either London Luton or Stansted.

 

 

[TW Teo 0]

Fly Asian Xpress (FAX) has been given air traffic rights to operate long haul services on international routes to destinations in Asia, Australia and Europe not flown by Malaysia Airlines.

 

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