AirAsia X Weighing Options For Europe

November 27, 2008 23:50 PM

From Muin Abdul Majid

LONDON, Nov 27 (Bernama) -- Malaysia's long-haul budget carrier AirAsia X is weighing its options for Europe following the London Stansted-Kuala Lumpur (KL) service which is set to take off on March 11, 2009.

"The big question is whether we put all our efforts into London and this becomes the hub for Europe, and from there (London) people can go off to France, Germany or other destinations, or whether we eventually have one place in central Europe, one place in eastern Europe, for example," said AirAsia group chief executive officer Datuk Seri Tony Fernandes.

"That's to be debated. (AirAsia X chief executive officer) Azran (Osman-Rani) and his team will look at it," he said at the London-KL route launch, with fares starting from 99 pounds each way.

Fernandes said he personally had mixed feelings about the matter.

"I think sometimes it's good to have a lot of frequency in one place and then farm it out. But it would be nice to say we're going to fly to Rome, Prague and so on. What makes financial sense will drive us," he said.

The airline chief said the next step would be to have daily flights between KL and London, and possibly introducing two flights a day for the sector.

AirAsia X is scheduled to fly five times weekly between the two cities using the Airbus A340 from Air Canada.

Meanwhile, Azran said he would definitely introduce daily flights to London if he could get a second A340 plane.

To a question, he expressed hope that the load factor for the London sector would hover in the 83 to 84 percent range.

"It works for us if it's in the mid-70s in terms of breaking even. Eighty percent is really good, but 84 and beyond is what I'm hoping for," he said.

Azran said Germany was a potential destination for AirAsia X.

Source: BERNAMA

Azalina: Some tourism offices abroad to close

2008/11/27

KUALA LUMPUR: Tourism Malaysia offices abroad risk closure if they do not bring in the projected number of tourists.

Tourism Minister Datuk Seri Azalina Othman Said said the move was necessary because maintaining the offices were expensive and if they failed to meet their target, they would have to be closed down.

"We won't hesitate to do this, if the market is slow and the numbers projected do not come through.

"For example, if the offices in New York and Los Angeles are not doing well because of the decline in tourists, we will ask them to close shop immediately," she said, adding that it would be better to focus on the more aggressive markets such as those in the Middle East.

There are 44 Tourism Malaysia offices abroad, among them in Guangzhou, China; Perth, Australia; and Seoul, Korea, besides those operating in New York and Los Angeles.
Azalina said a review of the offices abroad would begin from January next year, and if the targets were not met by March, they would be closed.

The minister was speaking at a press conference following an annual meeting with Tourism Malaysia overseas directors, to review next year's tourism marketing strategy and plans in light of the global economic slowdown.

"We are already changing our approach of promoting the country in our advertisements overseas by showing more visuals of unknown places such as Danau Labaung in Sabah.

She added that the ministry would also be announcing a new target number for next year's tourist arrivals during the cabinet meeting on Dec 3.

"The tourism consultative council will meet before that to deliberate on the issue.

"Earlier, the target was 22.9 million tourist arrivals. We will review this target, as we have a lot of factors to consider such as the economic crisis, which would affect the number of tourists."

On strategies to woo more tourists next year, Azalina said the ministry would focus more on collaborations with neighbouring countries and online marketing to promote Malaysia.

"We are also looking at suggestions by neighbouring countries such as Indonesia, Thailand and Singapore on reducing technicalities and adopting a more open policy for all our citizens."

Azalina also said that the ministry was planning to set up a Tourism Malaysia office in Tashkent, Uzbekistan.

Source: NST

Thai unrest: AirAsia, MAS stop flights to Bangkok

2008/11/27

KUALA LUMPUR: Malaysia Airlines and AirAsia temporarily stopped its operations into Bangkok beginning yesterday following the closure of the Suvarnabhumi International Airport after it was taken over by anti-government protesters.

Both airlines could not say when their flight operations would resume.

Low-cost carrier AirAsia called off 30 flights.

The routes include destinations connecting Bangkok to other cities in Thailand, as well as flights to and from Kuala Lumpur, Penang, Singapore, Macau, Jakarta, Ha-noi and Yangon.

AirAsia, in a statement posted on its website, said all affected passengers would receive a refund to be credited into their accounts.

Passengers were told that they could use their credit shell to redeem a seat on the next available flight to/from Bangkok within 3 days from their original date of travel. This is subject to the reopening of the airport and availability of seats.

Its corporate communications head, Hamdan Mohamad, said the company hoped its service would resume soon.

Malaysia Airlines said all its flights to Bangkok were cancelled but those to Phuket were operating.

Operations director Datuk Tajuden Abu Bakar said: "As the closure is indefinite, we are unable to advise when our flight operations will resume."

A Wisma Putra official in Kuala Lumpur said: "We advise those who want to go to Bangkok to reconsider doing so unless they have pressing reasons to go there."


Deputy chief of mission Syed Bakri Syed Abdul Rahman said all Malaysians in Bangkok were safe.

"There are about 370 Ma-laysians registered with the embassy.

"Some of them are students, but the majority are working here."

Syed Bakri said most areas in Bangkok were safe. "One would have to avoid the areas where people are demonstrating, but the greater part of Bangkok is fine.

"The demonstrators are not hostile to foreigners. Their anger is directed at the government and they are friendly to outsiders."

Source: NST

Malaysians stuck in Thailand

Thursday November 27, 2008

BANGKOK: At around 10am yesterday, as she was getting ready to return home to Malaysia, Dr Mary Makanjang received an SMS from AirAsia.

The SMS read: “Urgent. AK681 flight to Johor Baru has been cancelled because Suvarnabhumi Airport has been closed due to riot.”

“I was shocked as the situation in Bangkok was ‘cool’, nothing (untoward) was happening,” said the gynaecologist who is based in Kota Kinabalu.

Not knowing whether to believe the SMS, she called AirAsia and the Malaysian Embassy but could not get through.

She then called her Thai tour guide who confirmed that the People’s Alliance for Democracy protesters had seized the airport on Tuesday night.

“I panicked as I didn’t know when we could go back to Malaysia,” said the 38-year-old Malaysian, who was in Bangkok on holiday with her husband and two children aged eight and 11.

Dr Makanjang was also worried about the extra cost that she and her husband would incur.

“I don’t know what will happen next. I’m so afraid that something will happen that I dare not wander out of the Pratunam area where my family and I are staying.”

When she finally managed to speak to an AirAsia official she was told that the airline had rescheduled her flight to Friday.

“But AirAsia cannot guarantee that we will be able to board that flight as they don’t know when the airport will reopen,” she added.

The Star’s marketing services manager Fong Ten Chee and his family were more fortunate as they managed to get on a flight back home in the nick of time.

Had his taxi been 10 minutes late he would have been trapped at the airport that was shut down by demonstrators, some of whom were carrying weapons.

“I was a little concerned,” said Fong, 58, who was travelling with his wife and child.
Fong was on the way to the airport when his taxi driver told him protesters were converging on the old Don Muang International Airport.

“A friend then called him to say the protesters were making their way to the new airport,” he said.

Fong, who had been on holiday from Friday, said when his taxi got near the airport, there was tension and chaos.

“Traffic was at a standstill for at least 5km from the airport. The four-lane highway was reduced to a single lane as the rest was taken up by protesters.

Despite the chaos, the Fongs got through immigration and on the flight home.

Source: The Star

MAS and AirAsia cancel flights to and from Bangkok

Thursday November 27, 2008

KUALA LUMPUR: Malaysia Airlines (MAS) and AirAsia have cancelled flights into and out of Bangkok after Thai authorities closed Suvarnabhumi International Airport.

MAS operations director Datuk Tajuden Abu Bakar said that as the closure was indefinite, the airline was unable to say when flights would resume.

Tajuden advised customers in Malaysia to call 1-300-88-3000 for further updates. Passengers in Bangkok could call +662-2630572 or +662-1343184.

AirAsia, on its website, said all affected customers would automatically receive a refund via a credit shell.

The statement said the credit shell could be used to redeem a seat on the next available flight to or from Bangkok within three days from the passenger’s original date of travel, subject to the reopening of the airport in Bangkok and availability of seats.

It added that arrangements for the next flight to or from Bangkok must be done at the AirAsia sales counter at the respective airport of departure.

In George Town, Penang Thai Airways International general manager Niruth Sripawatakul said yesterday about 250 passengers who were supposed to board an 8.10am flight were turned back.

Source: The Star

It’s RM499 to fly to London on AirAsia X (updated)

Published: Tuesday November 25, 2008 MYT 7:04:00 PM
Updated: Tuesday November 25, 2008 MYT 9:54:48 PM

By CHOI TUCK WO

LONDON: It’s £99 or RM499 one-way – that’s the much-awaited opening fare of AirAsia X’s latest London Stansted-Kuala Lumpur route.

Malaysians flying to London will also pay RM499 for the return flight while travellers from London going to KLIA will pay £99 (RM541) for the return ticket.

Online bookings opened at 8pm Tuesday (Malaysian time) for the five-times-a-week direct flights which will begin in March.

Also on offer are premium seats at £549 or RM1,999. The initial bookings are for the travel period from March 11 till Oct 24 next year.

The AirAsia X flights will use Airbus A340 planes which will have 286 economy and 30 premium seats.

AirAsia X CEO Azran Osman-Rani made the announcement during the route launch at London’s County Hall featuring a special performance by five-member British girl band, The Saturdays.

“The London-Kuala Lumpur route is the realisation of a long-held ambition to open up affordable access between Malaysia and Europe for both the Asean and European communities,” AirAsia Group CEO Datuk Seri Tony Fernandes said.

Fernandes said with the airline’s comprehensive route network, the opportunity for Londoners and Europeans to explore Asean has never been greater.

“This new route will benefit all of Asean as it will encourage more economic and tourism activities, bringing in more revenue and creating job opportunities,” he said.

Azran described the London route as a significant achievement, allowing those who had always wanted to travel between Europe and Asean to achieve their dream at an affordable price.

Stansted Airport’s commercial and development director Nick Barton, who finalised discussions with AirAsia X, hailed the launch as a major milestone for low-cost, long-haul air travel around the world.

“This is set to be a hugely popular link for business and leisure travellers seeking affordable long-haul travel options,” he added.

The latest route is the first step for AirAsia to realise its European aspirations and boost Kuala Lumpur as the regional aviation hub and gateway into Asean, China and Australia.

With the launch, Europeans can now see more of Asia for less by tapping into the airline’s network to popular destinations such as Phuket, Borneo, Bali, Angkor Wat and Ho Chi Minh city.

To date, AirAsia X – the long-haul affiliate of AirAsia – flies to the Gold Coast, Perth and Melbourne in Australia, Hangzhou in China and now London, bringing the Asean brand to a global stage.

Stansted is Britain’s third busiest airport, with 22.8 million passengers passing through and many leading low-cost airlines making it their base.

Source: The Star

Airasia X's London Stansted-KL Service Takes Off On Mar 11, 2009

November 25, 2008 23:59 PM

By Muin Abdul Majid

LONDON, Nov 25 (Bernama) -- Malaysia's long-haul budget carrier, AirAsia X, today announced that its London Stansted-Kuala Lumpur service will take off on March 11, 2009, with fares starting from as low as 99 pounds(RM499) each way.

AirAsia Group chief executive officer, Datuk Seri Tony Fernandes, said AirAsia X's London-KL route was the realisation of a long-held ambition to open up affordable access between Malaysia and Europe for both Asean and European communities.

For the sector AirAsia X will use Airbus A340 for the five times weekly direct flights.

Fernandes said bookings would start at midday London time today until Nov 30 for the travel period of March 11, 2009 to Oct 24, 2009.

London would be AirAsia-X's fifth international destination after Gold Coast, Perth and Melbourne in Australia as well as Hangzhou in China, Fernandes told a news conference in conjunction with the sales launch of the new service at the London County here.

Also present at the event were AirAsia X chief executive officer Azran Osman-Rani and chairman Datuk Seri Kalimullah Hassan, as well as Malaysian High Commissioner to UK Datuk Abd Aziz Mohammed and representative from Stansted Airport.

Besides the 99 pounds fare for the economy seats, Fernandes said passengers also had the option to pay 549 pounds (RM1,999) for the XL seats respectively.

When asked on the timing of the launch now with the world facing an economic recession, he said the country needed some positive action and that entrepreneurs and corporations should do their bit in dealing with the situation.

"I am not going to sit there and cut everything and just say we are going to die. We are going to fight and find our way out of this recession," he said, adding that this was the time to "give back to the country."

"I could cut and make a bit more money but this has to be about being stronger after the recession."

Asked on what was next for the airline, Fernandes said he was aiming for daily service to London and possibly two flights a day.

Source: BERNAMA

No route cuts for MAS

Monday November 24, 2008

By B.K. SIDHU

Airline wants to make profit from every flight despite challenges

MALAYSIA Airlines (MAS) will make seasonal adjustments to its capacity but not scrap routes in the current economic slowdown.

It aims to make profit from every flight even though there are challenges such as a global lack of demand for passenger air travel, the threat of overcapacity and more competition that puts yields under pressure.

“We want to innovate and make the most of what we have. We look to survive but not cut routes and frequencies. We will make adjustments to meet our cost,’’ he told StarBiz.

Earlier this year, MAS announced a 6.4% reduction in capacity. MAS will make ad hoc adjustments to ensure that it retains a balance in network and fleet utilisation for supply and demand in air travel. The airline’s load factor is “still holding’’ at about 70%.

Newly-appointed senior general manager of sales Datuk Bernard Francis wants to beef up sales to grow market share.

To do that, he is reviewing the existing strategies as he feels there are opportunities even in a slowdown. Francis was assigned to his present post on Nov 1. He was previously senior general manager of network revenue management.

To grow its share of the market, he is segmentising the market, customising product offerings to the different market segments, broadening the distribution channels and revving up corporate sales.

“We want to create a lot of products and the biggest would be branding Malaysia as a centre for meetings, incentives, conventions and exhibitions (MICE).’’

Francis believes Malaysia has good infrastructure, facilities and services to support the MICE business. He wants to work with Tourism Malaysia to bring in quality customers.

MAS operates in nine regions inculding Malaysia. The others are Asean, Australia, North Asia, South Asia, Middle East and Africa, Britain, Europe and the Americas. Francis says in each region, the aim is to be the first or second player. “We want to anchor strongly in Malaysia even though we are already a dominant player here,’’ he said.

To be the lead player in a particular region means MAS must carry the most number of passengers from KL International Airport (KLIA) to the region.

Other than its lead position in the domestic market, Francis said MAS also carried the most number of passengers from KLIA to China, Europe and Asean countries but he did not provide the passenger numbers.

Francis said MAS would also review its products in greater detail in every single market.

“What is important is that we understand consumer needs and come up with products that cater to that market. Products (in future) will be differentiated. We want to customise them for the different market segments,’’ he said.

Products that MAS will continue to have are “everyday low fares and all inclusive fares.’’

Francis said these were popular products and MAS would consistently innovate and create offerings for the market.

“We will be offering more competitive fares so that we are able to give customers more choices,’’ he added.

To him, marketing should be taken to a new level at MAS. Online booking is becoming a popular option and MAS’ lowest fares are found online. But travel agents are still the biggest contributors to sales for the airlines, making up 80% of sales. Online sales bring in 7%. The rest is from MAS sales offices and centres.

“Travel agents are our important stakeholders and we want to further enhance the incentive programme that is in place.

“We will refine the programme to include all the 670 travel agents. The more they sell, the higher their incentives. MAS will track the agents’ performance from within,’’ Francis said.

Corporate sales is another big area that can grow further. MAS has 1,000 corporate customers and a team that will be pushing for corporate sales to hit 10% of total sales by end-2009 from 5% currently.

MAS’ sales division was previously regionalised but it has now been aligned to the headquarters for the airline to respond quickly to market dynamics. Francis believes he has an excellent team that can help the airline withstand the many challenges in the aviation sector.

“It is a rough patch but we will strive to survive with good leadership,’’ he said.

Source: The Star