Air Asia to become the largest carrier in Asia

[Izanee 0]

From business times online:

 

AirAsia aims to be region's biggest carrier

By Anna Maria Samsuddin Published: 2008/02/27

 

 

 

 

 

BUDGET airline AirAsia Bhd has drawn up a six-year business plan that will see it carry 70 million passengers a year from 2014, which will make it Asia's biggest carrier.

 

The figure is 3.5 times higher than this year's target of 20 million passengers.

 

Group chief executive officer Datuk Tony Fernandes is optimistic of achieving the target, which will in turn make the low-cost carrier terminal at the KL International Airport the regional hub for budget travel, given the foundation laid out over the past six years.

 

Factors going for the airline include its extensive regional network comprising 90 routes and its huge order of 175 Airbus A320s.

 

"Six years going forward, I think things will look rosy and optimistic. This is mainly because we have worked hard to build the necessary foundation for the airline, namely in terms of network and the brand, and we have already acquired the aircraft to support our growth," Fernandes told Business Times in an interview.

 

"With the recent inclusion of Singapore in our network, we are basically connected to all points within the region; and what we are going to do now is to further develop each of these existing routes. We are indeed in a strong position now, stronger than we have ever been," he said.

 

From an unknown airline which started operations in 2001 with RM40 million debt inherited from its previous owner, DRB-HICOM, AirAsia has evolved into the region's largest budget carrier.

 

The airline, which carried more than 15 million passengers annually in its five years of operation, has been recognised as the fastest-growing low-cost carrier in history - faster than the US' Southwest Airline and Europe's Ryanair, which only breached the 10-million passenger mark after operating for more than a decade.

 

After taking delivery of some of its new A320s, the airline has achieved 95 per cent on-time performance.

 

Fernandes said the airline will not just strive to provide affordable airfares, but will also improve its inflight services, including promoting Malaysian hospitality and the huge varieties of local food.

 

"To date, AirAsia's inflight meal has an interesting selection of local favourites such as roti canai, nasi lemak and nasi briyani. Of course, when we started the airline six years ago this was not in our plan.

 

"Now, we want our passengers to be able to enjoy some of Malaysia's popular food and hospitality onboard our flights as well," he said.

 

"We will also continue to improve other services, such as our Internet and mobile bookings.

 

"We are now in the midst of completing our mobile and Web check-in system. We hope to introduce this in March."

 

Despite the airline's enthusiasm to improve the quality of its services, Fernandes stressed that AirAsia will remain as a budget airline.

 

"AirAsia is successful because we are very focused in our business model, which is providing affordable airline service.

 

"The other improvements that we are doing are basically to improve passengers' experience when flying with us. We want to be an LCC offering five-star service," he said.

 

Fernandes also said that AirAsia will continue to look out for potential joint-venture opportunities with symbiotic benefits for the parties involved.

 

It is in the process of establishing a potential joint venture in the Philippines and Vietnam.

 

In addition, the airline plans to introduce more routes, add frequencies and develop the existing ones.

 

 

 

GOOD news for KLIA and for MALAYSIA as a whole.

 

[Rozhan 0]

Fernandes said the airline will not just strive to provide affordable airfares, but will also improve its inflight services, including promoting Malaysian hospitality and the huge varieties of local food.

 

"To date, AirAsia's inflight meal has an interesting selection of local favourites such as roti canai, nasi lemak and nasi briyani. Of course, when we started the airline six years ago this was not in our plan.

 

"Now, we want our passengers to be able to enjoy some of Malaysia's popular food and hospitality onboard our flights as well," he said.

 

"We will also continue to improve other services, such as our Internet and mobile bookings.

 

"We are now in the midst of completing our mobile and Web check-in system. We hope to introduce this in March."

 

I like those parts. Air Asia knows what people want, and deliver them. Now why is it that Air Asia is taking all the trouble to introduce more hot meal choices even on the shortest of sectors, but the competition thinks people just want 'snacks' such as unheard-of recipes for sandwiches and other convinience-store type food...! Strange. They must be in the twilight zone!

Edited February 26, 2008 by Rozhan

[Keno Omar 0]

"Now, we want our passengers to be able to enjoy some of Malaysia's popular food and hospitality onboard our flights as well," he said.

Haha I like this quote. At least passengers have the option to have nasi lemak on board (albeit at RM8 charge) compared to that other airline which recently launched Malaysian Hospitality campaign

 

All the best to AirAsia

 

[Andrew K 0]

Well, MH is somewhat like a low cost carrier now with minimal fringes. Following the path of domestic Air New Zealand? Lcc inspired domestic services? Why not go all the way? Keep hot meals regionally and free tea/coffee and muffin or something with hot meals made purchaseable?

[Ewan Shamsudin 0]

I like those parts. Air Asia knows what people want, and deliver them. Now why is it that Air Asia is taking all the trouble to introduce more hot meal choices even on the shortest of sectors, but the competition thinks people just want 'snacks' such as unheard-of recipes for sandwiches and other convinience-store type food...! Strange. They must be in the twilight zone!

 

Definitely, Rozhan! Next perhaps, nasi kerabu (rice mixed with aromatic herbs) with batter-fried fish and salted egg for breakfast (I'm tempted to include the pickled garlic condiment as well, hehehe).

 

 

 

[Brennan Raj 0]

After taking delivery of some of its new A320s, the airline has achieved 95 per cent on-time performance.

REALLY?of course when you keep 'retiming' your flights. Anyways introduction of roti canai and nasi briyani is a good move. Kudos for that.

[Andy 1]

REALLY?of course when you keep 'retiming' your flights. Anyways introduction of roti canai and nasi briyani is a good move. Kudos for that.

 

 

 

really proud of air asia

[Sri Ramani K. 0]

if you read EVERY one of tony's press statements, you can see loads of repetition in them. this was probably a news for the stock people.

[Rozhan 0]

Definitely, Rozhan! Next perhaps, nasi kerabu (rice mixed with aromatic herbs) with batter-fried fish and salted egg for breakfast (I'm tempted to include the pickled garlic condiment as well, hehehe).

 

Oh yes Ewan! In my 5 years living in KBR, I've learnt to love Kelantan delicacies, and nasi kerabu is one of them. Deeelicious!

 

 

Just out from AFP:

 

AirAsia upbeat after posting strong profits

 

 

KUALA LUMPUR, Feb 27, 2008 (AFP) — AirAsia, Asia's largest low-cost carrier, said Wednesday the outlook for 2008 was bright despite volatile oil prices after posting a 73 percent profits surge in the quarter ending December 2007.

 

Tony Fernandes, group chief executive officer, said passenger volume was expected to grow by 20 percent in 2008 on the back of lower operating costs with the introduction of new efficient Airbus A320 aircraft.

 

"Cost items excluding fuel is expected to reduce further due to the induction of cost efficient Airbus A320 aircraft into the fleet," he said.

 

AirAsia has 26 A320 aircraft and 39 Boeing 737s serving 90 routes. It has ordered 175 A320 planes, becoming Airbus's largest customer for the model, which can carry between 150 and 180 passengers depending on its configuration.

 

AirAsia said its profits soared to 246 million ringgit (77 million dollars) for the three-month period ended December 31, 2007 after 24 consecutive profitable quarters.

 

"We are now the highest profit margin airline in the world," Fernandes said, adding his firm had posted robust growth and record profits last year.

 

Revenue for the quarter was 633 million ringgit, up 43 percent, while passenger volume jumped 21 percent, he said.

 

Fernandes said the demand for low fares remained strong and that the airline's load factors "held up at high levels."

 

But he said "escalating and volatile fuel price remains as our principle challenge for the year."

 

AirAsia's shares closed flat at 1.54 ringgit each.

 

The firm, which launched as a budget carrier in December 2001 with just two aircraft, has become a significant player in the industry.

 

It is now Southeast Asia's biggest low-cost carrier in terms of fleet size and derives much of its business within Malaysia. It also operates in Singapore, Thailand, Indonesia, the Philippines and China.

 

http://afp.google.com/article/ALeqM5gpO-JA...hY1ZYBpPbn3ij_Q

[Andrew Yong 0]

What a good news fro AK!!

[Nik H. 3]

Salute, a cautious one, but salute nevertheless........

[Naim 6]

Salute, a cautious one, but salute nevertheless........

 

I'd say doubly cautious. A walk on a tightrope this.

 

[KK Lee 5]

 

It is about time for the gomen to issue another AOC before AK becoming too complacent and abusive.

 

 

[BC Tam 2]

Oh yeah - short of some astoundingly shocking outcome come late evening on 8th / early morning 9th March, how likely are we to see anything being allowed to stand in the way of AK's prosperity ?!

[Izanee 0]

exactly my sentiments BC. AK will NOT be allowed to fail too!

[Tim Lee 6]

Sorry, just can't help myself. Had to simply take a swipe at TF.

 

Air Asia to become the biggest in Asia - Biggest Wind Bag or Hot Air Baloon

 

 

Market analyst have on many ocassions labeled him as "Over promise, under deliver"

 

 

[BC Tam 2]

Sorry, just can't help myself. Had to simply take a swipe at TF.

.....

Market analyst have on many ocassions labeled him as "Over promise, under deliver"

No, don't be sorry !

I think MAS/Datuk IJ & Co has probably been served its fair share of 'analytical dissection' here - for now

Perhaps it's time now to balance things out - what say fellow crappers ?!

[Izanee 0]

Hear hear BC Tam...time to please the unhappy forumers who cannnot stand MAS bashing...

 

Let me kindly start.

 

TF is not here for the rakyat as I mentioned before. He won't be happy until he gets what he wants. And he will get what he wants (much to the chagrin of IJ&co) as TF is buddies with the 4th floor boys and Slumberboy.

 

 

[Rozhan 0]

In yesterday's 'The Exchange' business program on TV3, TF said that AK "has overtaken MAS on domestic routes. We now have 55% of the market share".

[Izanee 0]

No surprises there then, Rozhan. However, the 'big guns' of MAS don't seem to be worried. Hey, they all know what they're doing right?

[Rozhan 0]

Correct. Kalau MAS dah rasa ianya adalah syarikat penerbangan yang terunggul dan maha agung di muka bumi ini, kira OK lah tu. Syarikat lain masih terkial-kial nak mencapai darjat sehebat Malaysia Airlines

 

(If MAS already thinks it 'has arrived', good for them. Other airlines are struggling to achieve that status)

Edited March 3, 2008 by Rozhan