KUL-SIN: AirAsia hopes for May takeoff

[Naim 6]

 

Monday February 12, 2007

 

AirAsia hopes for May takeoff

 

KUALA LUMPUR: AirAsia chief executive officer says he hopes to secure approval by May to fly between Singapore and Kuala Lumpur and to operate 20 flights a day on the lucrative route.

 

Datuk Tony Fernandes, who has promised much lower ticket prices than are currently available on the route, said aviation officials from Malaysia and Singapore were expected to meet next month to iron out the details.

 

“Obviously, it is an important route for us. It is like the busy Paris-London route. And it will surely be profitable,” he said here yesterday.

 

He said Kuala Lumpur was “set to become a hub for low-cost carriers”.

 

“I hope to get the approval by May,” he said.

 

AirAsia has been pushing hard for access to the route, which is dominated by Singapore Airlines and Malaysia Airlines.

 

The two carriers account for 85% of traffic on the 30-minute route between the two cities, with a confirmed round-trip ticket departing from Singapore costing more than S$450 (RM1,025) including taxes.

 

Fernandes has said a one-way AirAsia ticket would start from S$60 (RM137).

 

The AirAsia chief also said the airline had taken delivery of 16 new A320 Airbus aircraft and would have 23 jets in June.

 

“We are very happy with the A320 aircraft. The operation cost of the jets is lower than expected. The fuel burn is less than expected.” – AFP

[Gavin Andrew David 6]

Fernandes has said a one-way AirAsia ticket would start from S$60 (RM137).

 

He forgot to add his taxes ..

[Naim 6]

He forgot to add his taxes ..

 

Yeah. I hate it when their PR chief said during the recent cheap fare promo: who would not fly when a ticket costs less than a packet of nasi lemak. Nasi lemak, my foot!

 

+++

[Seth K 3]

MYR1025 for vv with SIA/MH, that's ridiculous, we paid MYR750 for roundtrip with SIA to SIN from KUL rtn including taxes & surcharge. Start at MYR137 one way not includi9ng tax, I wonder if the price will barely be the same AK will operate start this flight at really high frequency, that's pretty odd eh?

[Keno Omar 0]

No idea how much AK will be charging for taxes + yadayada for this route, so let's assume is about the same as KUL-HKT return which is RM245. At RM137 one-way, this works out at RM519 return. This is assuming you can get the lowest fare, chances are you can't on your preferred date as in most cases...

 

How much does a standby seat on MH/SQ costs these days?

[Jessnor Arif 1]

Given any routes.. if the price of AK and MH is just about MYR200 difference.. I'd fly MH any time

[Edwin Lau 0]

Well the results are not out yet so we shall see if ak is able to serve the route or not

[Seng Lim 0]

Don't forget if the KUL-SIN route is not only open for AK but to another Singapore LCC as well (should be Tiger). Thus there will be some competitions between 2 LCCs on the same route.

[Mushrif A 3]

No idea how much AK will be charging for taxes + yadayada for this route, so let's assume is about the same as KUL-HKT return which is RM245. At RM137 one-way, this works out at RM519 return. This is assuming you can get the lowest fare, chances are you can't on your preferred date as in most cases...

 

How much does a standby seat on MH/SQ costs these days?

 

Not SQ or MH, but on UL - if booked online until 31-Mar, UL offers RM295 NETT ALL IN, for KUL-SIN return. That's less than 40% of what the cartel is charging. Of course, you don't have much choice in terms of flight timings (afternoon departures from KUL, and early morning return) but you do get to fly in 332 or 343s, and the service (not that much can be done in 30mins flying time) is very good.

 

 

 

[Edwin P K 0]

20 flights a day??

[Radzi 2]

I guess the best result of this will be the reduction of price on both MH and SQ to a more realistic level.

[Seth K 3]

Agree with Radzi, if MH drop the price a bit, I say more ppl will fly MH than AK to SIN............

Base on the assumption, the price will not be far different, will see.....

[Tamizi Hj Tamby 1]

MH responds after the AK announcement for opening of KUL-SIN route:

 

The Borneo Post Online

Tuesday,February 13,2007

 

 

MAS vows to stay competitive despite planned opening of KL- S’pore route

 

 

 

KUALA LUMPUR: Malaysia Airlines will likely be affected by the opening up of the lucrative Kuala Lumpur-Singapore route, but vows to raise its competitiveness.

 

And the national carrier’s competitiveness is already showing whereby its yield has improved by 20 percent, “which is close to RM1 billion,” its managing director, Idris Jala, said here yesterday.

 

He was responding to questions on the impact on MAS should leading regional low cost carrier, AirAsia obtain approval to fly the route.

 

As for earnings, Idris said he was optimistic about MAS’s fourth quarter results ending December 31, 2006.

 

“We will beat our fourth quarter target. People in MAS are very confident and upbeat about our future,” he told reporters after speaking at the Edge Lipper-Malaysian Funds Award.

 

In the third quarter, MAS recorded a net profit of RM240 million, its first profit since the unveiling of its Business Turnaround Plan in February 2006.

 

Idris said MAS has expressed its concern over the opening up of the KL-Singapore route with the government, but declined to elaborate on how big the impact would be.

 

“I think we will continue as a company to improve our competitiveness and as we compete with a lot of airlines internationally, it is important to stay focus,” he said.

 

AirAsia expects to get the rights to fly the KL-Singapore routes by May this year.

 

At present MAS and the national carrier of Singapore, Singapore International Airlines (SIA) dominate the route operating more than 200 flights weekly.

 

Budget carriers such as AirAsia are unable to fly this route due to the 34-year air services agreement between both countries — last revised in 1980 — which does not allow for new players.

 

However, both governments have agreed to meet in March to discuss opening the route in efforts to liberalise the air travel sector as more players would be able to capitalise on the opportunities that would arise.

 

Asked if AirAsia’s flying through Singapore would affect MAS’s revenue and sales target, Idris said the current Asean road map requires the KL-Singapore route along with some other routes only to be opened in December 2008.

 

“We have not heard of any other things other than that. We are in conversation with the government and will continue to discuss with the government about the open sky policy,” he said.

 

On the delay in the delivery of the A380s purchased by MAS, Idris said they were still discussing.

 

Asked whether MAS would cancel the order or seek compensation for the delay, he said “We are not going there.”

 

“A constructive conversation on what is the best option for MAS is still ongoing,” he said.

 

On the airline’s fuel surcharge and whether MAS would bring it down due to declining crude oil prices, he said MAS was still monitoring crude oil price movements on the world market.

 

“Our fuel surcharge is still competitive,” he said.

 

– BERNAMA

 

[Paul Ho 0]

Weird thing is they have open up the SIN KUL route long time ago to foreign airline.Those who are currently operating are

 

1) Emirates Airline

 

2) Japan Airline

 

3) Bangaladesh airline

 

4) Mariutius Airline

 

5) PIA pakistan airline

 

 

Even the lucrative KUL PEN is open to cathay pacific

Edited February 14, 2007 by Paul Ho

[Mushrif A 3]

Weird thing is they have open up the SIN KUL route long time ago to foreign airline.Those who are currently operating are

 

1) Emirates Airline

 

2) Japan Airline

 

3) Bangaladesh airline

 

4) Mariutius Airline

 

5) PIA pakistan airline

Even the lucrative KUL PEN is open to cathay pacific

 

I think you can only buy tickets for KUL-SIN (or vv) on JL (on the KIX run) and maybe PIA, but certainly not on EK, Biman etc. Another airline you can buy tickets for this route is UL - it current has a great offer of RM295 all inclusive return fare to SIN. I think some of these airlines had grandfather righst or something from yesteryears.

 

You cannot buy a tkt on CX for solely KUL-PEN (or vv) as it has no traffic rights. CX cannot offer domestic tickets. However, if you buy a HKG-PEN tkt, you may stopover in KUL, and then fly KUL-PEN on another day on CX.

 

 

 

 

 

[T Azahan 1]

its time for 'everyone can fly' to singapore. sure aaah everyone can fly?? hehehe. at least i hope spotters from kul and sin can meet more often then.

[Edwin Lau 0]

So how many routes of of Malaysia to SIN is considered lucrative?

 

KUL-SIN (vv)

PEN-SIN (vv)

 

is KCH-SIN (vv) lucrative how about BKI-SIN (vv) I think the KCH-SIN(vv) is more lucrative right?

[kandiah k 0]

MH and SILKAIR used to operate SIN-KUA-SIN a couple of times a week at one point.

 

 

[BC Tam 2]

is KCH-SIN (vv) lucrative ..... ?

I suppose it depends on how deep you wish to analyze the issue. Per se, KCH-SIN (or BKI-SIN, PEN-SIN even) could well be lucrative for MH cause they have a triopoly (is there such a thing ?!) with SQ and MI and can jack up the charges.

 

However, I do understand that a fair portion of those travelling to SIN are actually transitting to say US, Europe and other parts of the world, mostly on SQ but perhaps on other foreign airlines serving SIN too. In such cases, it would be 'business lost' to MH, because those pax would otherwise have flown to their final intended destinations via KUL and on MH.

 

That would be my simplistic way of looking at things, I'm sure someone else will furnish theirs in due course !

[Mushrif A 3]

So how many routes of of Malaysia to SIN is considered lucrative?

 

KUL-SIN (vv)

PEN-SIN (vv)

 

is KCH-SIN (vv) lucrative how about BKI-SIN (vv) I think the KCH-SIN(vv) is more lucrative right?

 

I think it is pretty obvious how lucrative the SIN-BKI/KCH markets are:

 

- if they are that highly lucrative, MH won't route BKI via KCH.

- Also, SQ would be operating the route iso MI.

 

 

 

[Ruiz Razy 1]

First and foremost - MH and SQ must get those bloody fares down ! It's totally illogical. The Joint Shuttle may stay but please make them more affordable.

 

Two - LCC should be allowed. But with limited rights!

Why ?

1 JHB will loose out. Senai would no longer be the so call southern hub.

2 Johore Bahru would loose out . Bad for Malaysian Economy

3 Singapore stand to gain a lot more than Malaysia, as this would further enhance SIN position as an air hub. Considering KUL coverage is insignificant compared to SIN

4 AK may gain but at the expense of Johore economy. As a Malaysian, I feel like that is more like killing a member of your own family!

 

[Kee Hooi Yen 0]

MH responds after the AK announcement for opening of KUL-SIN route:

 

...In the third quarter, MAS recorded a net profit of RM240 million, its first profit since the unveiling of its Business Turnaround Plan in February 2006.

 

Does it include the selling of aircraft from MAS ? Btw, are those sold aircraft own by MAS or PMB ?

[Mushrif A 3]

Does it include the selling of aircraft from MAS ? Btw, are those sold aircraft own by MAS or PMB ?

 

No to the 1st question.

 

ANyway, one should focus on operating profit, which there was a small one in 3rd quater.

 

[Teo CK 0]

First and foremost - MH and SQ must get those bloody fares down ! It's totally illogical. The Joint Shuttle may stay but please make them more affordable.

 

Two - LCC should be allowed. But with limited rights!

Why ?

1 JHB will loose out. Senai would no longer be the so call southern hub.

2 Johore Bahru would loose out . Bad for Malaysian Economy

3 Singapore stand to gain a lot more than Malaysia, as this would further enhance SIN position as an air hub. Considering KUL coverage is insignificant compared to SIN

4 AK may gain but at the expense of Johore economy. As a Malaysian, I feel like that is more like killing a member of your own family!

 

Whether it is bad for Malaysian economy will depends very much on how much Senai contribute vis-a-vis AirAsia contribute to the country economy. But judging from the current trend, AirAsia is definitely ahead in terms of employment opportunities & the number of tourists it bring into Malaysia. For Johor, PTP is much more important than Senai in terms of economic values & creation.

 

By opening KUL-SIN, AirAsia should try to attract more sporeans to transit at KUL thru their vast network from KLIA. In this case, Malaysia is going to take some traffic away from Spore.

 

 

cheers

 

[Pieter C. 5]

AirAsia is definitely ahead in terms of employment opportunities & the number of tourists it bring into Malaysia.

 

and.......I've heard from 3 different KLM colleagues already, they've flown AK (booked via internet) i.s.o. MH (on stand-by ZED), for lower rates and were very pleased with the overall service !!!

 

So, AK is even getting well known amongst us Europeans when flying Intra-Asia (basically between TH, MY and ID), for their 'low- and promotional fares'...

 

do not underestimate 'mouth-to-mouth' advertising.