Malaysia's AirAsia sees growth on KL-Singapore route

[Naim 6]

"Over the next 5 years, we expect to carry about 7 million passengers between Singapore and Malaysia."

 

"We have so many planes coming in, it's a matter of where to put them."

 

[TF]

 

===

 

 

Malaysia's AirAsia sees growth on KL-Singapore route

Thu Jan 10, 2008 4:51am EST

 

SINGAPORE, Jan 10 (Reuters) - AirAsia (AIRA.KL: Quote, Profile, Research), Asia's largest budget airline, expects to carry 250,000 passengers on its new Kuala Lumpur-Singapore route this year and aims to expand destinations with extra flights to Vietnam and Indonesia.

 

Two daily flights between Singapore and Kuala-Lumpur will start February 1, though the firm could not say what market share it expected to grab from current monopoly holders Singapore Airlines (SIAL.SI: Quote, Profile, Research) and Malaysian Airline System (MASM.KL: Quote, Profile, Research).

 

"Over the next 5 years, we expect to carry about 7 million passengers between Singapore and Malaysia," said Tony Fernandes, chief executive of AirAsia, at a press conference.

 

Singapore and Malaysian governments decided to partially open the Singapore-Kuala Lumpur air route in November last year, by allowing four daily services by low-cost carriers, ahead of an "open skies" policy by Southeast Asian nations.

 

Fernandes said he is eyeing routes between Singapore and the Malaysian cities of Penang, Kota Kinabalu and Kuching.

 

"KL-Singapore was a giddy knot -- breaking that makes opening up the others a lot easier," he said.

 

With oil prices soaring, AirAsia will aim to pass on the costs to passengers by charging them for services such as priority boarding and internet check-in, Fernandes said.

 

AirAsia will also be looking to open an air route to Ho Chi Minh City in Vietnam and to fly to more Indonesian destinations.

 

"We have so many planes coming in, it's a matter of where to put them," Fernandes said. AirAsia said it recently ordered 175 Airbus A320s to be delivered by 2013.

 

A spokeswoman said long-haul budget carrier AirAsiaX, in which AirAsia holds a 20 percent stake, was in discussions with Airbus to buy more planes, but nothing had been decided.

 

AirAsia's competitors Jetstar and Tiger Airways will also have rights to operate a daily return service from Singapore to Kuala Lumpur. Jetstar is a unit of Australia's Qantas Airways Ltd (QAN.AX: Quote, Profile, Research), while Tiger is 49 percent held by Singapore Airlines. (Reporting by Melanie Lee and Kevin Lim, editing by Neil Chatterjee)

 

http://www.reuters.com/article/rbssIndustr...0080110?sp=true

 

 

 

[Mohd Azizul Ramli 2]

With oil prices soaring, AirAsia will aim to pass on the costs to passengers by charging them for services such as priority boarding and internet check-in, Fernandes said.

 

AirAsia will also be looking to open an air route to Ho Chi Minh City in Vietnam and to fly to more Indonesian destinations.

 

A spokeswoman said long-haul budget carrier AirAsiaX, in which AirAsia holds a 20 percent stake, was in discussions with Airbus to buy more planes, but nothing had been decided.

They are going to charge passengers for internet check in?

 

On the other hand, it is great to know that finally AirAsia will be serving SGN, another major South East Asian city which still remain elusive to AK/FD/QZ. Will PNK be one of the many Indonesian destinations he mentioned?

 

D7 to buy more aircrafts? 15 A333s are not enough?

 

In A.Net, there is a rumour going around that D7 is looking for 2 A346s (instead of A343s) to start its service to Europe. Most speculate that D7 is going to lease the A346s from QR, which the Doha based carrier is planning to phase out.

[Nuriman Ahmad 2]

Wow...I wonder where do AK get their funds from to finance all these aircrafts?

 

The number of orders looks to be really impressive indeed..I can really see AK overtaking MH one day..

 

AK is expanding on a grand scale...while MH just keeps on rationalising itself into bits and pieces..

[FK Wong 0]

AK - Ananda Krishnan and banks

[Pieter C. 5]

On the other hand, it is great to know that finally AirAsia will be serving SGN, another major South East Asian city which still remain elusive to AK/FD/QZ.

 

Heard this will not happen, as the Vietnamese Government refused the permit; also no more SGN staff-ads on the AirAsia website

[Naim 6]

Heard this will not happen, as the Vietnamese Government refused the permit; also no more SGN staff-ads on the AirAsia website

 

The plan was to have Vietnam AirAsia (hubbing in SGN) through a JV with Vietnamese parties (incl VN). Last I heard the JV did not happen when the parties failed to agree on the equity participation. Well, simply put, some ppl got greedy.

[Azmir I. 1]

The plan was to have Vietnam AirAsia (hubbing in SGN) through a JV with Vietnamese parties (incl VN). Last I heard the JV did not happen when the parties failed to agree on the equity participation. Well, simply put, some ppl got greedy.

[/

The JV company was to be named VinaAirAsia.It was not greedyness but more of politics 101.Strong oppositions from national carrier AirVietnam or Vietnam Airlines and PacificAirlines which was recently boughtover by Qantas.AirAsia participation was about 30% and the rest by the conglomerate Vina.

[Naim 6]

The JV company was to be named VinaAirAsia.It was not greedyness but more of politics 101.Strong oppositions from national carrier AirVietnam or Vietnam Airlines and PacificAirlines which was recently boughtover by Qantas.AirAsia participation was about 30% and the rest by the conglomerate Vina.

 

I stand by my 'greediness' claim. My insider told me in Oct '07: "Local political parties and ppl with vested interest got greedy ... Our ppl were also too aggressive with their start up plans ... Imagine starting ops with 9 planes and ordering 20 airbus 320, scares the s#1t out of VN."

 

That's all I can disclose.

[Mohd Azizul Ramli 2]

Heard this will not happen, as the Vietnamese Government refused the permit; also no more SGN staff-ads on the AirAsia website.

But why only on SGN? AK doesn't have any problem to operate to/from HAN.

 

The plan was to have Vietnam AirAsia (hubbing in SGN) through a JV with Vietnamese parties (incl VN). Last I heard the JV did not happen when the parties failed to agree on the equity participation. Well, simply put, some ppl got greedy.

Vina AirAsia is going to hub in HAN, not SGN.

 

 

AirAsia confident of Vietnam market

The Star, 4 September 2007

 

AirAsia Bhd expects to expand into the emerging Vietnamese air travel market with the signing of the Letter of Intent with Vietnam Shipbuilding Industry Group (Vinashin), one of the largest state-owned corporations in Vietnam with an estimated legal capital of US$30mil (RM105.05mil) for the joint venture company.

 

Its group CEO Datuk Tony Fernandes was confident that both parties would not only enjoy a productive and profitable outcome from this joint venture, but also benefit from the exchange of fresh ideas, skills and technologies.

 

"The growth potential in Vietnam's air travel is significant with Vietnam's 84 million population. We are very excited to be working with a colossal corporation in Vietnam to develop this opportunity," he told reporters, after signing the Letter of Intent with Vietnam's Shipbuilding Industry group chairman and chief executive officer, Pham Thanh Binh, on Friday.

 

The joint venture company, to be known as Vina AirAsia, in which AirAsia Bhd holds a 30% stake (the maximum holding allowable for a single foreign entity), will see both parties securing a licence to establish a low-cost airline by July next year in Hanoi, Vietnam. The low-cost airline, to be based on AirAsia's successful business model, is expected to have a fleet of nine aircraft over the next two years.

 

The low-cost Vietnamese airline will serve domestic, regional and international routes. According to Fernandes, this partnership would help develop the tourism industry in Vietnam, particularly in Hanoi, which was known for its tree-lined boulevards and lakeside pagodas.

[Naim 6]

But why only on SGN? AK doesn't have any problem to operate to/from HAN.

 

Saigon/HCMC is the business capital and engine of Vietnam, Hanoi is the political capital, though things are picking up slowly. VN is not too keen to share the cake yet.

 

Vina AirAsia is going to hub in HAN, not SGN.

 

Thanks for correction, Azizul.

 

[Mohd Azizul Ramli 2]

I am more inclined to believe that the actual 'dalang' is the partner from Down Under. Their reputation in blocking other's entries into their foray is inquestionable. (Hint: SQ's direct Australia-USA flights).

[Keith T 2]

I am more inclined to believe that the actual 'dalang' is the partner from Down Under. Their reputation in blocking other's entries into their foray is inquestionable. (Hint: SQ's direct Australia-USA flights).

 

That might be about to change:

http://www.travelweekly.com.au/dirplus/ima.../21_01_2008.pdf

 

Giving his first response to the travel media on the controversial Pacific route, Albanese said its priority was helping Virgin Blue get its US flights off the ground.

 

Under current regulations,airlines based in each country can only launch four weekly flights on the route. V Australia has applied for 10 and Open Skies talks planned for next month with the US are expected to open up the route. Albanese also left the door open for other carriers, including Singapore airlines, to operate on the route. “The Government does not rule out opening the route up to further competition in the future should it be in the national interest,” he said.

 

Albanese = New Federal Transport Minister Anthony Albanese.

Edited January 23, 2008 by Keith T

[jani 0]

wow, 175 new aircraft? fantastic job by Air Asia!

 

why oh why can't MAS do the same thing? (I know the answer, was just a rhetorical question )