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Airasia Forced Out Of Sibu-KK Route: CEO

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If BKI/SBW is profitable, tax will be paid to the gomen. With competition, ticket will be lower, benefiting the people/taxpayer. History has proved, monopoly will only increase unproductively, inefficiency and higher fare. Since domestic routes is liberalized, why not permit AK to serve BKI/SBW to benefit the gomen and the people?

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To call someone emotional is kinda ok.. but for Tony Fernandez to call another fellow airline CEO "silly", that's very disrespectful.

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If BKI/SBW is profitable, tax will be paid to the gomen. With competition, ticket will be lower, benefiting the people/taxpayer. History has proved, monopoly will only increase unproductively, inefficiency and higher fare. Since domestic routes is liberalized, why not permit AK to serve BKI/SBW to benefit the gomen and the people?

 

The profit from BKI/SBW is used to cross-subsidize other unprofitable routes in the RAS. That's because the government is so stingy that they halved the subsidy they give to MASwing as compared to ones for FAX. Even though East Malaysians literally kept them in power, guess they don't give a hoot for Sabah and Sarawak.

 

If you just look at BKI/SBW route by itself, it's reasonable to wonder how come AK not allowed the route. But looking at the overall scheme of things (as have been mentioned previously in this thread), you can just see how AK is manipulating people, bending laws and agreement to get its own ways. Very unethical.

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So crying foul and running to the government for more protection is ethical?

 

Anyway, it looks like the case is closed. AK has withdrawn and they are moving on. No point wasting time fighting for a daily frequency. Use the time to engage in more profitable activities! If AK makes profit, govt. also gains as they have to pay tax.

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Related news:

MTUC S’wak objects to review of scrapping

By Raynore Mering

 

KUCHING: The Malaysian Trades Union Congress (MTUC) Sarawak has come to the aid of their brothers in the airline workers unions to protest against a review of the scrapping of AirAsia’s Sibu-Kota Kinabalu route.

 

Its secretary, Andrew Lo, said in a press statement yesterday: “… AirAsia cannot simply pick and choose profitable routes after leaving Sarawakians high and dry; and taxpayers to pick up the pieces of the Fly Asian Express (FAX) fiasco.”

 

The Airlines Workers Union Sarawak (Awus) and the Air Transport Workers Union Sabah (Atwus) had protested the Transport Ministry’s plan to review the route, which AirAsia will surrender to MASwings on Oct 25 this year.

 

The unions said in a press statement on Tuesday that the ministry should not ‘kowtow’ to AirAsia, pointing out that when the low-cost carrier ran the rural air service (RAS) routes through FAX some three years ago, many Malaysia Airlines (MAS) workers were affected.

 

AirAsia claims that MAS is forcing it out of the Sibu-Kota Kinabalu route, although the route is under RAS, which was now serviced by MASwings.

 

Lo felt that AirAsia, instead of playing to the gallery, should keep to its plan to develop Kuching as a low-cost travel hub.

 

He also said the public should not only be concerned with getting the cheapest deals.

 

“While we always welcome competition and cheaper airfares, Sarawakians must not be simply swayed.

 

“Just because supermarkets offer two crates of soft drinks at RM3 during festive occasions does not mean that everything in the supermarket is a good deal,” he said.

Edited by Tamizi Hj Tamby

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It is actually interesting that they want AirAsia to develop a low cost travel hub in Kuching. I do wonder how viable it is because the Kuching-Macau route did not really generate a lot of passengers. Now, AK has Penang to Macau flights and I wonder how good is the response there.

 

Somehow, I do think that hubs need a certain level of population to sustain them. Right now, only KUL seems to be viable because of the huge population and they also use it to balik kampung during festive periods. I seriously doubt if Kuching has enough travellers to sustain a hub.

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It is actually interesting that they want AirAsia to develop a low cost travel hub in Kuching. I do wonder how viable it is because the Kuching-Macau route did not really generate a lot of passengers. Now, AK has Penang to Macau flights and I wonder how good is the response there.

 

Somehow, I do think that hubs need a certain level of population to sustain them. Right now, only KUL seems to be viable because of the huge population and they also use it to balik kampung during festive periods. I seriously doubt if Kuching has enough travellers to sustain a hub.

 

I thought BKI is doing quite well considering it is now the second busiest airport after KLIA, no?

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Well I would think that BKI is a hub for East Malaysia. I think that is why AK wanted to link up Sibu with BKI. To get low cost, they need economies of scale. Too many hubs and too few pax is not ideal.

Edited by flee

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So crying foul and running to the government for more protection is ethical?

 

There is no more protection here, the protection is already there and MASwing is only trying to make sure the government enforce it.

 

I am glad that I never experienced FAX myself, but what they did to the rural folks of Sabah and Sarawak should not be forgotten.

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I thought BKI is doing quite well considering it is now the second busiest airport after KLIA, no?

I thought so too. There were talks about bringing in D7 here to fly to Japan, South Korea, China and even Australia.

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Sibu-KK route is MASwings’ after all

By Patricia Gari and Jacqueline David

 

AirAsia CEO admits route part of exclusive accord between government and MASwings for RAS

 

KUCHING: AirAsia chief executive officer Datuk Seri Tony Fernandes appears to have relented in the tussle for the direct Sibu-Kota Kinabalu route with MASwings.

 

He told Utusan Borneo yesterday that the route was part of an exclusive agreement between the government and MASwings for the rural air service (RAS).

 

“We don’t have a choice,” he said. “We do not intend to initiate any meeting to discuss the matter as AirAsia is also opening up a lot of flights to other destinations.”

 

He said that many people were disappointed when news of the termination of the route got out last week. Among those who had voiced their disapproval to him was the Foochow association.

 

While some might view AirAsia negatively as a result of the termination of the route, he pointed out that his company had contributed greatly to tourism in Sarawak from all sectors and this could be verified with the Sarawak Tourism Board (STB).....

 

 

 

http://www.theborneopost.com/?p=56514

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The news was actually yesterday;but i've decided to share it with you guys here.

 

 

AirAsia out of Sibu-KK route

By Raymond Tan

 

Deputy minister assures without budget airline, passengers can still expect attractive discounts

 

 

SIBU: AirAsia will stop flying the Sibu-Kota Kinabalu-Sibu route with effect from Oct 25, Deputy Minister of Transport Datuk Robert Lau announced yesterday.

 

Speaking at a dialogue session, Lau referred to an agreement between his ministry and MASwings which excluded the Sibu-KK-Sibu route from the seven shared routes of MAS, MASwings and AirAsia.

 

Despite cutting the budget airline out, he said his ministry and MAS had worked out discounts for passengers of this route.

 

“Passengers can now get discounts of up to 70 per cent if they book the tickets online. The cheapest airfare per route can cost only RM77 while passengers still enjoy full in-flight services,” Lau said.

 

Environment and Public Health Minister Dato Sri Wong Soon Koh, Sarawak United Chinese Association president Datuk Lau Cheng Kiong and representatives of Sibu Chinese Chamber of Commerce and Industry and various Chinese associations and travel agents were present at the dialogue.

 

Also present were Sibu Municipal Council chairman Datuk Tiong Thai King and Nangka assemblyman Datuk Awang Bemee.

 

Lau said although the contract between his ministry and MASwings only agreed on providing two direct flights daily, MASwings had increased the flight frequency to four daily.

 

“MASwings is at the same time looking into the possibility of having the fifth direct flight in the late evening from Kota Kinabalu,” he said, adding that there were many tourists from China, Hong Kong, Japan and Korea entering Kota Kinabalu.

 

He said the fifth later evening flight could help connect these passengers to Sibu to help boost tourism here.

 

Lau said his ministry, under the request of the Ministry of Finance, was conducting a study on reviewing the Rural Air Services (RAS) contract in Sabah and Sarawak to possibly redefine the RAS routes.

 

He also touched on air connectivity between Sibu and Limbang, adding that in the past, passengers from Sibu would have to wait in Miri for a considerable time before they could fly to Limbang.

 

“With the new arrangement, passengers can now stay in the plane at Miri Airport while waiting for the same aircraft to take off for Limbang in 25 minutes. This has helped cut the travel time.”

 

He said the same applied to passengers travelling from Limbang to Sibu via Miri.

 

More good news came from the Transport Ministry when Lau said arrangements with MAS had added two more daily flights between Sibu and Kuala Lumpur beginning Oct 25.

 

He said the early additional flight would fly from Sibu at 7am, arriving at the national capital at 8.50pm.

 

“The other additional flight, non-stop, will fly from KL at 7.30pm and arrive Sibu at 9.25pm. These additional flights will enable businessmen to make day trips instead of having to stay overnight in the national capital,” he said.

 

Another good piece of news from Lau’s ministry is the route of Sibu and Kuching. According to him, MASwings has added an early flight from Kuching to Sibu, flying out at 6.10am and arriving Sibu at 6.55am.

 

“The same aircraft will carry passengers from Sibu to Kuching, departing at 7.25am and arriving at 8.20am. This introduction will also enable businessmen and government officials to make day trips between the two places,” he said.

 

Lau said he was also working with MAS and MASwings on the possibility of operating international flights from Sarawak into BIMP-EAGA region (destinations in Indonesian Kalimantan and South Philippines) next year.

 

He said this request had come from the Minister of Tourism and Urban Development Datuk Michael Manyin, to help with the development of tourism in the region.

 

“During a recent cabinet meeting on tourism chaired by Deputy Prime Minister Tan Sri Muhyiddin Mohd Yassin, I brought this up. The deputy prime minister has instructed MAS and MASwings to study the viability of this proposal,” Lau said.

 

Lau hoped this would be realised soon as it would be a big boost to the tourism industry and the business community.

 

They're considering about a direct SBW-LMN route..wonder's how the respond :pardon:

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Visit Sibu Year moved to 2017

 

...On the Sibu-KK flight, he said it was very much needed to bring in foreign tourists for the Visit Sibu Year. The Transport Ministry, he said, had yet to give its approval for AirAsia to commence this sector. “To make Visit Sibu Year successful, the most important thing is to have (better) air connectivity, not only with one but two transit points,” he said. Wong said at present Sibu-KK was served by MasWings only. Moreover, MasWings’ smaller aircraft could not carry many passengers at a one time and there was limited frequency....

 

Read more at: http://www.thestar.com.my/Metro/Community/2015/07/30/Visit-Sibu-Year-moved-to-2017/

 

-----

 

It is time MoT scrap the rule. Sibu is NOT a rural town...

Edited by Alif A. F.

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Why have to depend on bki sbw sector? Bki only cater 11 daily international flight. Andrew Wong shud hv aim higher. Aim for 1st sbw sin flight. There you will tape hundreds of international traffic to sbw. Doesnt it make more sense than kept on talking bki-sbw route stale issue?

Edited by Dr Chuo Hock Tieng

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It's time for the reinstatement for SBW-BKI flight by AK. MOT rule is simply absurd; and time to scrap it.

And i do agree with you Doc; it's high time for the SBW-SIN flight. SBW is now capable of accepting international flight.

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I think AK is putting any expansion of services out of BKI on hold - they won't do anything to weaken their position on the issue of moving to T1.


So SIN-SBW may happen sooner than we think...

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Let's hope SIN-SBW will be materialized. Who knows if Tiger / Silkair / Jetstar Asia will fly that route.

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Let's hope SIN-SBW will be materialized. Who knows if Tiger / Silkair / Jetstar Asia will fly that route.

 

TR and 3K had better reinstated the routes to KCH and BKI first!

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Loke said a new Operating Agreement between the government and AirAsia would be signed by year-end to finalise the deal, which would include the compensation amount for MASwings.

 

https://www.malaysiakini.com/news/452783

I wonder what kind of agreement is this - that Airasia cannot cancel the route?

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KKSBW/SBWKK had been full load during 2009 even at non holiday season..

I think it will be 2x daily during launch and hope for 3x for coming CNY

Edited by prosibu1

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Interesting that airasia added freq btwn KK-SBW during 2013 CNY

 

https://www.airasia.com/my/en/latest-news/cny-extra-frequency.page

 

while starting 1/1/2019 the BKI SBW flight details as below:

 

AK6090 BKI-SBW 0600 0720
AK6091 SBW-BKI 0745 0905
AK6092 BKI-SBW 1840 2000
AK6093 SBW-BKI 2025 2145
BKI BTU as below:
AK6340 BKI-BTU 0600 0710
AK6341 BTU-BKI 0735 0845
AK6342 BKI-BTU 1530 1640
AK6343 BTU-BKI 1705 1815

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