Air Asia X Given Long Haul Rights Malaysia-Europe

[haansel 0]

like i said for the Upper economi class seats only not 4 economi seats. maby the seat plans might be like virgin atlantic

[Jessnor Arif 1]

I just wonder how will MH react to this news? I really dont mind if Govt really protect MH simply because MH is Malaysian Flag carrier in Aviation industry. Some time what i see gov is too keen in airasia and some of it's decision might kill MH. Malaysian air market is not as big as in the US or in Europe. and the Govt should play preference to MH regardless what other airlines says. With this much opportunity for Airasia wonder why Tony still fret on govt protecting MH.

 

Should let AKX fly KUL ARN KUL since MH want to drop it!!

 

Here's the thing i dont get.. many ADUN and MP from sabah and sarawak (possibly "speaking on behalf of citizen") keep complaining on FAX services and want MH back. So even domestically FAX is not that satisfying.. how would they operate long haul?

 

 

[BC Tam 2]

..... I really dont mind if Govt really protect MH simply because MH is Malaysian Flag carrier in Aviation industry .....

are you paying Malaysian tax ?

 

..... Some time what i see gov is too keen in airasia and some of it's decision might kill MH .....

MH's (previous) management was well capable of that destiny on their own. We can only hope that Mr Idris Jala has the balls and conviction to respond appropriately (as he has done so far)

 

..... many ADUN and MP from sabah and sarawak (possibly "speaking on behalf of citizen") keep complaining on FAX services and want MH back .....

many do not have much of an idea how much the Malaysian govt was (still is ?)pouring into MH's RAS As long as they are seen and heard to be "speaking on behalf of citizen" it earns them brownie points for the next election

[Mushrif A 3]

Precisely, PC. Furthermore AK is not really cash-rich - profits have been thin (see Asiatimes report I attached above) - but then they are using start-up FAX for AKX. Even more risks. Gearing must be sky-high. Wrong expansion strategy and down the drain the whole show goes. I just hope I'm able to spend a weekend or two in Prague & Budapest first before anything happens. Selfish me, yeah!

 

+++

 

Actually that Asiatimes report that you quoted was being very economical with the truth with respect to AK's 1st qrtr profit. There was a dispute on how deferred taxation was to be recognised, given that AK benefits from substantial tax allowance arising from its major investments in a new fleet. Following deliberations with authorities, the taxman, auditors, AK eventually reported two sets of numbers.

 

Under M'sian accounting standards, profit was as reported by Asiatimes, but under int'l accounting standards, AK registered almost RM95 million net 19x more than under the M'sian standards. (In the airline business alone, AK actually seems to be making more money than MH in their last respective reported quarters)

 

So, the ill-informed or very-much-informed (depending on how you wish to slice it) reporter may just state one of the two numbers depending on what tone he/she is setting. To state the perils of LCCs, quote low number. To suggest that business is booming, quote the higher number instead.

 

But cashflow wise, AK numbers are the same under both standards, as no actual tax was paid out. Cash generated from ops for that quarter was RM145 million.

 

 

 

 

 

 

 

[dsim 0]

no MEL. FAX only got non-MAS routes.

 

south eastern australia + non-MAS route = hobart? gee gee...

 

[Isaac 0]

If one chooses to be absolutely picky about this DVT issue, you cannot for now even associate the medical problem with long haul LCC flights - simply because the concept is so new and (to best of my knowledge) there has been no incidents since Oasis started service. Reported incidents so far mainly involves long haul flights on "full service" carriers. Ironic yes, but facts are there !

Actually the seat pitch of EY in Oasis 744 is on par with the full-service carriers. Around 31" - 32" of pitch.

 

Jetstar, which has just recently launched long-haul budget flights with 3x ex-QF 332, is offering 31" of pitch in Economy Class & 38" of pitch in Premium Economy Class (dubbed Star Class).

 

[Rozhan 0]

Looking back, low cost long haul was already available back during the USSR-era Aeroflot. Fares were about half of MAS advance purchase fares KUL-LHR vv. The novelty was that one could have a short transit of the then mysterious Moscow in the days of the 'iron curtain'.

 

The journey was a relatively long one, with a transit of 9 hours at Moscow for the flight to KUL via Karachi. In all it took about 24 hours from Heathrow to Subang! No inflight entertainment (nobody cared then), simple meals, and one-class seating on an IL-62M. It was fun.

[Keith T 2]

Jetstar, which has just recently launched long-haul budget flights with 3x ex-QF 332, is offering 31" of pitch in Economy Class & 38" of pitch in Premium Economy Class (dubbed Star Class).

 

StarClass seats are like essentially QF domestic business class. It's a good deal - not sure what the meal service is like (whether it's like domestic business class or regular Y), but you get an amenity kit, avod, extra baggage allowance, priority check in, Qantas Club access and QF status credits/mileage at Business class rates (just pity QF FF itself is crap). Essentially 'almost' business class service for the price of flex economy class.

Edited January 7, 2007 by Keith T

[BC Tam 2]

..... KUL-LHR vv. The novelty was that one could have a short transit of the then mysterious Moscow in the days of the 'iron curtain'.

 

The journey was a relatively long one, with a transit of 9 hours at Moscow for the flight to KUL via Karachi. In all it took about 24 hours from Heathrow to Subang! .....

My friend did that once, the "transit" at Moscow totalled about a week - somehow got stranded both on outbound and inbound sectors !

[Fairul 0]

insiders from AK inform that they will lease few A332 for the new service and later will purchase A333....

[zealich 0]

seems like we can go watch EPL on weekend and fly back after the match ya...lol..

[Kee Hooi Yen 0]

seems like we can go watch EPL on weekend and fly back after the match ya...lol..

 

Mamak stalls business will be affected by then ......

[Ruiz Razy 1]

 

....the move will have an impact on MH , good for budget consumers and this is a way of ensuring MH to be on the toes at all times.

 

So, MH, what's your next move?

 

p/s Don't forget SQ with their new products as well!

[Jessnor Arif 1]

are you paying Malaysian tax ?

 

Does it really matter? So far I am not paying any tax since i am not yet working and dont have any properties. but my parent did. so does my sibling. not counting my aunt, my uncle my cousins and all.

 

by protecting MH I mean by deciding aviation matter always in favour of MH. Not pushing MH in a corner. If not the govt should let MH do what it want.

 

Right know AKX is given non MH routes. nxt 5 years? when both airlines is expanding...it will indeed force MH to compete with AKX instead of competing with the like of QR, or SQ. Remember malaysia air market is not as large as in europe or in US. or in Japan

[Seng Lim 0]

As a consumer, I want to see more competitions because I want to have more choices and better deals.

Those who like to travel in style, frills, under company expenses will go for full service carriers like MH.

For those who just want to fly from point A to point B with limited comfort and no frills with good savings on airfares will go for AK.

Afterall there's a limit on how much a government can protect those GLC like MH because market has to be open.

 

[BC Tam 2]

Does it really matter? So far I am not paying any tax since i am not yet working and dont have any properties

After reading the above, I guess not (in your case that is !)

 

As Seng Lim has alluded to, the market will not remain status quo (remember the "only constant is change" quote ?) For MH to be continually 'protected' has turned out to be a very expensive exercise. Both in terms of RM spent in "restructurings" and "rationalisations" as well as losing our competitive edge over our neighbours and other foreign competitors.

(I do realize this could well degenerate into another Malaysia vs Singapore debate. Hence this shall be my last comment on this point. Let's get back on topic !)

Edited January 8, 2007 by BC Tam

[H C Chai 4]

Here's the thing i dont get.. many ADUN and MP from sabah and sarawak (possibly "speaking on behalf of citizen") keep complaining on FAX services and want MH back

 

There must be a reason behind this... people don't complain out of no reason. I have just been back to Sarawak and what I have heard from friends and relatives is that FAX is very unrealiable (at least on KCH-MKK run). Even my relatives from Mukah decided to take a bus to Kuching (thats a 12hr+ bus ride!).

[Sandeep G 1]

AirAsia X is clearly not being targeted at the same market group as AirAsia. The Malaysians that utilize the service will most likely be middle-class families trying out the service and students. Lower class Malaysians could afford the airfare, but what will they do when they get to the UK!!??? The Exchange rate does not favour tourist exports from Malaysia like AirAsia in the South East Asian region does. However, the number of western tourists that will utilise the service will be more. Middle class families from the UK/EU and backpackers alike will LOVE this service and THAT is who AirAsia is really catering for. MAS will still retain premium traffic and business traffic as well as loyal MAS customers who want flexibility with their flights.

 

The same goes for flights to Australia and East Asia.

 

On flights to China and India, yes, locals in both countries will REALLY benefit!

 

Malaysia will benefit from an anticipated increase in number of tourist arrivals.

[Keith T 2]

As a consumer, I want to see more competitions because I want to have more choices and better deals.

 

Spot on. Everyone benefits - even those who stick to legacy carriers like MH or SQ as these carriers would be forced to price themselves even more competitively.

[Rozhan 0]

If the product and price is right perhaps even corporate customers will use Air Asia X for middle management travels. I understand that many companies are already using AK for corporate travels.

 

The CEO of my company recently issued a circular to stop using MAS travel warrants for overseas travels as he argues that using them cost more. Instead the company now uses competitor middle eastern airlines for flights to middle east and Europe. And this company being an organization dealing in Islamic Finance under the central bank (Bank Negara) suggest that even some gov travels are moving away from MAS.

[Tamizi Hj Tamby 1]

If the product and price is right perhaps even corporate customers will use Air Asia X for middle management travels. I understand that many companies are already using AK for corporate travels.

 

The CEO of my company recently issued a circular to stop using MAS travel warrants for overseas travels as he argues that using them cost more. Instead the company now uses competitor middle eastern airlines for flights to middle east and Europe. And this company being an organization dealing in Islamic Finance under the central bank (Bank Negara) suggest that even some gov travels are moving away from MAS.

 

Wow,your CEO issued a circular to stop using MAS travel warrants? Due to the current situation right now,i'm not suprised to hear about it.Even i've used to get onboard MAS for domestic flights.Now,i have to shift to AirAsia.

 

About the middle eastern airlines,my guess is either Emirates,Qatar Airways or Gulf Air.Am i right,Rozhan?

[Rozhan 0]

About the middle eastern airlines,my guess is either Emirates,Qatar Airways or Gulf Air.Am i right,Rozhan?

 

OT, but to answer Tamizi.....Emirates to the mid east, Qatar Airways to Mid East and London, Sri Lankan to Colombo, Lufthansa to CIS countries, all for marketing missions and BNM events. CEO is entitled to first class, deputy CEO and department heads on biz, everyone else on economy. Air ticket cost is about RM60,000-80,000 per month on gov money, all flowing out. MAS is for domestic only, since CEO can't do without biz class, the next best thing to first class which is not available!

 

Anyway heard that BKI LCCT has VIP lounge. So VIPs can have special treatment even travelling on AK?! However Tony did mention in one of the interviews after AKX launch that they don't intend to have any lounge, just 50-60% cheaper fares than the cheapest what full service carriers charge. Now that's just great!

Edited January 10, 2007 by Rozhan

[Imran K. 0]

Yay Rozhan!

 

Treat yourself to a smile...Fly Emirates.

[Pieter C. 5]

OT, but to answer Tamizi.....Emirates to the mid east, Qatar Airways to Mid East and London, Sri Lankan to Colombo, Lufthansa to CIS countries, all for marketing missions and BNM events.

 

and............which airline to the other European countries (not CIS) ?? Also, Lufty ??

 

[Rozhan 0]

EK to other major EU countries, wherever available I see Imran smiling.

 

They (dept heads up to CEO) are collecting Skywards points for personal travels later, all accumulated under gov money!

 

This year the company will start marketing missions in the far east. I expect either CX or SQ as travel agent says MH is often more expensive. Patriotism out the window!