Jump to content


Icon Important Announcement!

New registrations require administration validation. This may delay registration approvals.


Photo

Give us Sydney, not Pyongyang, says AirAsia X


  • Please log in to reply
314 replies to this topic

#1 Sing Yew

Sing Yew
  • Platinum Member
  • 1,506 posts

Posted 13 June 2009 - 08:14 PM

Came across the article below on The Australian:

QUOTE
AirAsia offshoot seeks expansion to
Steve Creedy, Aviation writer | June 11, 2009

Article from: The Australian

AIRASIAX, the Kuala Lumpur-based low-cost carrier that recently offered return flights to London for as little as $700, wants to expand its footprint in Australia and is looking at Sydney as its next target.

The long-haul carrier flies to Australia, China and London and is an offshoot of Southeast Asia's biggest short-haul operator, AirAsia.

Fares from Australia's east coast to Kuala Lumpur start at $199 one-way. Sydney would be the carrier's fourth destination in Australia after Perth, the Gold Coast and Melbourne.

Its expansion plans come as low-cost carriers have steadily been increasing their share of the international market in and out of Australia while flagship carrier Qantas's slice of the action in March slipped to 23.1 per cent, down from 28.2 per cent in 2006. The latest government statistics show low-cost carriers in March accounted for 16 per cent of the overseas market, up from 11.1 per cent a year ago.

AirAsia chief executive Tony Fernandes said the airline was talking with both Sydney and Newcastle airports about servicing Sydney.

"In Australia we want to do daily to the Gold Coast, daily into Sydney and we still haven't done Darwin and Adelaide," Mr Fernandes said, adding that the airline would use a smaller A320 to service Darwin and offer flights for less than $100 one-way.

Mr Fernandes said AirAsiaX was getting a lot of through traffic to London on its services, especially from Melbourne and Perth.

He said the service was also attracting Australians returning from Europe and young travellers, most of whom were taking a break in Asia.

"If you look at the Australians coming in, 80 per cent appear to be using our network to go elsewhere," Mr Fernandes said. "So the symbiosis of AirAsia and AirAsiaX is working well."

Despite the economic downturn, Mr Fernandes said airlines were profitable in their most recent quarter and the second quarter also looked good.

He said both were benefiting from the crisis. As well as investment in expanding the AirAsia network, corporate business had shot up by about 500 per cent, although this was off a small base.

"I took my son to rugby practice the other day and there were four guys who came up to me and said they were all in the oil business," he said.

"They said we're using AirAsia all the time now and even using AirAsiaX down to Perth."


#2 Tony

Tony

    TC

  • Platinum Member
  • 1,454 posts

Posted 13 June 2009 - 08:34 PM

Another option for travellers on the SYD-KUL sector. smile.gif Though I wouldn't fly with D7 again after my utmost "memorable" trip ex-OOL and back. tongue.gif

#3 Mohd Azizul Ramli

Mohd Azizul Ramli
  • Platinum Member
  • 4,725 posts

Posted 13 June 2009 - 08:39 PM

Let's hope that D7 choose SYD over NTL. It's the only way to piss off and further hurt MH's deteriorating market share to/from Sydney.

#4 Sing Yew

Sing Yew
  • Platinum Member
  • 1,506 posts

Posted 13 June 2009 - 08:41 PM

QUOTE (Mohd Azizul Ramli @ Jun 13 2009, 11:09 PM) <{POST_SNAPBACK}>
Let's hope that D7 choose SYD over NTL. It's the only way to piss off and further hurt MH's deteriorating market share to/from Sydney.


Competition is good. Keeps the airfares competitively priced.

#5 KK Lee

KK Lee
  • Platinum Member
  • 4,970 posts

Posted 13 June 2009 - 11:24 PM

QUOTE (Sing Yew @ Jun 13 2009, 08:41 PM) <{POST_SNAPBACK}>
Competition is good. Keeps the airfares competitively priced.


Yep, agree with you totally good.gif yahoo.gif

If AK to DRW, can go fishing for Barramundi! yahoo.gif It is a shame that KUL/CNS is beyond AK 320 range else CNS is another excellent place for fishing good.gif

drinks.gif

#6 C.Foo

C.Foo
  • Silver Member
  • 352 posts

Posted 14 June 2009 - 08:27 AM

More like Newcastle I doubt Sydney Charles Kingfsford somone mentioned Cairns which would be good as they will compete with JetStar ON jAPENESe SECTORS. bUT i belive CNS is profitable with 737's as they nhave range or 757 as you will get lots of budget travellers wanting to go to the great barrier reef. rolleyes.gif

#7 Eugene Koh

Eugene Koh
  • Silver Member
  • 262 posts

Posted 29 July 2009 - 06:57 AM

QUOTE
Long-haul budget airline AirAsia X has been denied permission to fly to Sydney and Seoul due to a row between the Malaysian government and its sister carrier AirAsia, a news report said.

The refusal has forced AirAsia X to scramble to make new plans to utilise the three new Airbus A330 aircraft due for delivery this year, the Star daily said today.

"We had asked for rights to fly to Sydney and Seoul, and the government decided to defer granting us the approval," AirAsia X's chief executive officer Azran Osman-Rani reportedly said.

He said the government first wanted AirAsia to settle the issue of an outstanding 65 million ringgit ($A22.45 million) payment for airport services with Malaysia Airports Holdings before giving the green light.

"The dispute is between the two (AirAsia and MAHB), but delaying us from flying into these two destinations will not help travellers who have limited choices," Azran told the daily.

"We know the Koreans are keen to have us, and both the airports - Sydney and Seoul - welcome us," he added.

AirAsia was not immediately available to confirm the reported comments.

An affiliate of regional low-cost carrier AirAsia and Virgin Group, AirAsia X was launched in January 2007. AirAsia and AirAsia X have common shareholders, including AirAsia founder and CEO Tony Fernandes.

AirAsia X currently flies to three Australian destinations - the Gold Coast, Melbourne and Perth.
UNQUOTE

.

What the CEO said is very true, about MAHB is trying to woo back Qantas & Jetstar back to KLIA although chances is very slim in current economic while AirAsia X wants to fly to Sydney, they being stopped from doing so becoz of conflicts between AirAsia and MAHB. What a shallow decision.

Also on another mail article which published yesterday by The Star, it also mentioned AirAsia X started the process but not officially submitted request for flights to USA eyeing mainly on New York, Los Angeles and San Francisco. Why don't they include Las Vegas & Hawaii as well, am sure there is market for these sectors, or maybe not.

What about Canada?

Speaking of which, why don't MAS relaunch flight to Canada?

While the CEO mentioned in Feb, countries such as France, Germany, Italy & New Zealand, anyone knows of any progress of these sectors. Have they started the process applications?

They would need at least 5 A340-300s for these routes as said by the CEO however I would reckon they would need more than just 5. Since Air Canada's CEO Robert Milton has shares in AirAsia X, he should just lease all Air Canada's A340s to AirAsia X, hehe..

Anyway, sorry for the long thread, aprpeciate any opinion or status updates to the above if anyone knows.

Lastly, I am hoping very much they will be granted rights to fly to Sydney as soon as possible as then, I can afford to fly home to see my parents more often :clapping:

#8 Waiping

Waiping

    Model Collector/Spotter

  • Platinum Member
  • 5,618 posts

Posted 29 July 2009 - 09:36 AM

"I don't give simply because I don't feel like giving." :angry:

#9 KK Lee

KK Lee
  • Platinum Member
  • 4,970 posts

Posted 29 July 2009 - 09:54 AM

AirAsia, MAHB may settle dues row soon

KUALA LUMPUR, July 29 — A three-year dispute between budget carrier Air-Asia and Malaysian Airport Holdings Bhd (MAHB) over unpaid dues could be settled soon, after the airline's chief executive Datuk Tony Fernandes met Prime Minister Datuk Seri Najib Razak.

MAHB, which owns and manages most of Malaysia's airports, has a string of differences with the budget carrier. They include the location and cost of a new budget terminal and — most importantly from AirAsia's point of view — the fees it charges.

Fees have been a bone of contention since AirAsia moved into the current budget terminal next to Kuala Lumpur International Airport.

Airline executives say no rental agreement has been signed because Air-Asia says MAHB's charges are too high. As a result, MAHB insists AirAsia owes it RM103 million.

The dispute has hurt the airline. A month ago, the government turned down a request from AirAsia X — the carrier's long-haul unit — for the rights to fly to Seoul and Sydney. No written rejection has been forwarded to AirAsia but the decision has been conveyed verbally to AirAsia X.

This is a blow to the airline, which was counting on the new routes to use new planes that will be delivered this year.

“The government has decided to defer granting us approval,” AirAsia X chief executive Azran Osman-Rani said in The Star newspaper yesterday.

“They want AirAsia to settle its dues with MAHB,” he said. “It is a high-profile issue. But we are AirAsia X — not the ones that owe MAHB money for airport services. Every invoice we receive is paid within 30 days.”

Fernandes met Najib last Friday to discuss the situation. According to a government official, the talks were amicable but Fernandes was urged to settle the “dues” issue.

The airline's executives said AirAsia is awaiting MAHB's confirmation in writing of the amount owed, before proceeding with the matter.

But it is not clear whether AirAsia X will get the Sydney and Seoul routes even if AirAsia does settle its dues.

According to the executives, objections to AirAsia X were also raised on the grounds of giving national carrier Malaysia Airlines more time to prepare itself for the competition. — Business Times Singapore
:pardon:

http://www.themalays...e-dues-row-soon

:drinks:

#10 Ryan Soh

Ryan Soh
  • Gold Member
  • 587 posts

Posted 29 July 2009 - 10:53 AM

What about Canada?

Speaking of which, why don't MAS relaunch flight to Canada?

Canada remains one of the last forefronts of protected markets in the developed world. If they [Canada] have raised a ruckus over Emirates operating into YYZ, what makes you think they would even consider D7? And as for MAS making a return into Canada, it would be close to impossible for now unless they can somehow make a miracle and start churning money from flying trans-Pacific routes.

According to the executives, objections to AirAsia X were also raised on the grounds of giving national carrier Malaysia Airlines more time to prepare itself for the competition. Business Times Singapore

You are kidding... Someone actually went on record to say that MAS wasn't "ready for competition"?
  • Cheng Long likes this

#11 Waiping

Waiping

    Model Collector/Spotter

  • Platinum Member
  • 5,618 posts

Posted 29 July 2009 - 11:52 AM

You are kidding... Someone actually went on record to say that MAS wasn't "ready for competition"?


At least he's being honest :good:
  • Ignatius likes this

#12 Mohd Suhaimi Fariz

Mohd Suhaimi Fariz
  • Platinum Member
  • 2,506 posts

Posted 29 July 2009 - 11:55 AM

What about Canada?

Speaking of which, why don't MAS relaunch flight to Canada?


Besides the codeshare with Canadian Airlines, did MAS fly to Canada before? I can hardly remember those old routes. I've read that they once flew to Mexico City and Hawaii, but I always thought the service to Vancouver was flown by Canadian Airlines

Edited by Mohd Suhaimi Fariz, 29 July 2009 - 11:57 AM.


#13 Eugene Koh

Eugene Koh
  • Silver Member
  • 262 posts

Posted 29 July 2009 - 12:21 PM

Giving MAS more time to prepare for competition? A star airline should be prepared by now.
What IF Qantas/Jetstar decided to fly to KLIA within a month, do the Government says, Hang on you can't start
within a month as MAS is not ready!!

Seriously, if AirAsia X is an Australian airline brand or even in Spore or HK, it would be damn bloody succesful.
  • Alan L likes this

#14 C.Foo

C.Foo
  • Silver Member
  • 352 posts

Posted 29 July 2009 - 12:25 PM

In a scene of Air Crash Investigations UA 811 there is a scene where it shows a Boeing 747-400 in today's colours

#15 S V Choong

S V Choong
  • Platinum Member
  • 6,969 posts

Posted 29 July 2009 - 12:41 PM

Giving MAS more time to prepare for competition? A star airline should be prepared by now.
What IF Qantas/Jetstar decided to fly to KLIA within a month, do the Government says, Hang on you can't start
within a month as MAS is not ready!!

Seriously, if AirAsia X is an Australian airline brand or even in Spore or HK, it would be damn bloody succesful.

Yes, welcome to Malaysia, a land which is not a level playing field to begin with.

Not sure if Air Asia X would be highly successful as claimed, as Oasis HK went bust and it was a real life HK based scenario.

Singapore may seemed to be a high degree of level playing field, but so far Temasek (the Singapore government's investment arm) has been the only major player in the game and one can only imagine what will happen if the status quo of Temasek is seriously challenged.

Edited by S V Choong, 29 July 2009 - 12:45 PM.


#16 Denny Yen

Denny Yen
  • Platinum Member
  • 2,076 posts

Posted 29 July 2009 - 02:00 PM

Air Asia could consider making TPE as its far east hub because TPE is now seriously competing with Pudong vs Xiamen. Taoyuan where TPE is located is being gazetted by local gov't into an aeroport city with various incentives, plus costs are comparable to Pudong/Xiamen. Japanese airports are heavy on costs side. They could consider TPE-HNL and onward into LAX or SFO.

#17 flee

flee
  • Platinum Member
  • 11,013 posts

Posted 29 July 2009 - 02:18 PM

If the government and MAHB continues to muck AirAsia and AirAsia X around, they must surely be considering moving the operational headquarters out of KLIA LCCT to somewhere more business friendly to their requirements. Of course, AirAsia X may be less forgiving and tolerant because it has more foreigners as their shareholders. If the govt. is not careful, it will be driving Malaysian businesses offshore, just as it has driven its best brains and human resources offshore.

#18 Ryan Soh

Ryan Soh
  • Gold Member
  • 587 posts

Posted 29 July 2009 - 03:03 PM

Not sure if Air Asia X would be highly successful as claimed, as Oasis HK went bust and it was a real life HK based scenario.

Oasis and Air Asia X operate under very different environments. Oasis' demise was a lack of feed into it's 100% long haul routes. Air Asia X's position is such where it can tap on Air Asia's feed (well, technically not a feed FEED... But there is a ready pool of pax) from the domestic and nearby region into KL LCCT to buff up the numbers.

Oasis had NOTHING. They plunged straightaway into the ocean for a 20mile swim with the likes of BA, CX and AC. Naturally they would drown.

Edited by Ryan Soh, 29 July 2009 - 03:04 PM.


#19 Seth K

Seth K
  • Platinum Member
  • 5,397 posts

Posted 29 July 2009 - 03:14 PM

They owe MAHB money, if they can't settle it, well there are consequences. Life not that easy ya.

Edited by Seth K, 29 July 2009 - 03:14 PM.

  • Gavin Andrew David and Cheng Long like this

#20 Naim

Naim

    ****

  • Platinum Member
  • 5,948 posts

Posted 29 July 2009 - 03:21 PM

... just as it has driven its best brains and human resources offshore.


No lah, still many 'best' ppl around. Nobody is indispensible.




1 user(s) are reading this topic

0 members, 1 guests, 0 anonymous users