AirAsia prefers a low-cost terminal in Labu

Wednesday December 24, 2008

KUALA LUMPUR: Budget airline AirAsia Bhd and Sime Darby Bhd have confirmed their interest to jointly develop and operate an RM1.6bil private low-cost carrier terminal (LCCT) in Labu, Negri Sembilan.

Approval for the terminal in Labu, to be known as KLIA-East@Labu, was expected “shortly, possibly in a few days,” officials of AirAsia and the developer, Sime Darby, told reporters at a briefing yesterday.

In separate announcements to the stock exchange yesterday, AirAsia and Sime Darby said the two companies have “jointly expressed an interest to the Government of Malaysia to develop and operate a private low-cost carrier terminal (LCCT Project) on the Sime Darby group’s land in Negri Sembilan.”

Both announcements said “the LCCT Project was in the initial planning phase and the companies were engaged in preliminary discussions with state and federal authorities.”

Officials of both companies said that while details had to be ironed out, the project, estimated to cost about RM1.6bil, would be privately funded.

The RM1.6bil was an estimate of the cost of structures and the runway but did not include the 3,000-acre land where it would be built.

“We are very much at the planning stage and the land valuation certainly has not been done yet,” a Sime Darby spokesman said.

Sime Darby, in its filing, said the collaboration was an intergral part of the company’s plan for its Negri Sembilan Vision City (NSVC).

The NSVC is part of Sime Darby’s Central Vision Valley property development project spanning Selangor and Negri Sembilan, a concept which includes seaside resorts, a medical city and a safari park, among others.

It was reported that Sime Darby is expected to take up a majority stake in the joint venture.

“After the construction, we will turn over the whole project including the land to AirAsia who is the client. We are not operating the airport,” the Sime Darby spokesman said.

AirAsia said the Labu LCCT project would address its overcapacity problem when completed in 2011 and that it was preferable to another LCCT project proposed by Malaysia Airports Holdings Bhd (MAHB).

The LCCT proposed by MAHB is expected to completed by 2014.

“The completion date for the new permanent LCCT proposed by MAHB is too late to keep up with our passenger growth,” AirAsia said.

The Star

AirAsia-X’s new Airbus from Perth hits a glitch

Tuesday November 4, 2008

By ROYCE CHEAH

SEPANG: The anticipated tour of AirAsia-X’s new Airbus A330 ended up as a computer slide show after the plane failed to touch down on schedule here due to a delay in its departure from Perth.

AirAsia-X chief executive officer, Azran Osman-Rani told the media, guests and AirAsia staff waiting at the low-cost carrier terminal (LCCT) here yesterday that the plane was delayed in the interests of safety.

The plane was to have touched down at the LCCT at 1pm but it only arrived hours later.

“Warning lights for a certain component lit up as the plane was flying here from Perth. The pilot then decided to return to Perth.

“Back there, the onboard computer system was restarted and everything was rechecked. This took six hours, including getting a new time slot to depart,” Azran said.

In an e-mail sent to The Star, a passenger claimed the plane had encountered hydraulic problems.

Asked if he was disappointed with the performance of the first Airbus A330 that AirAsia-X had acquired, Azran said such delays did not necessarily impact the ability of the plane to fly.

“We must test everything. Even if it is going to take three, six or 24 hours, I would not risk it for the safety of the passengers,” he said.

Azran said affected passengers, both from Kuala Lumpur and Perth, were provided with the necessary assistance such as replacement flights and hotel stays.

AirAsia-X had taken delivery of its first A330 on Friday in Toulouse, France. The delivery of the second A330 is expected in mid-December.

Yesterday was AirAsia-X’s first anniversary of commercial service.

SOurce: The Star

Airasia Confident Of Robust Growth Despite Global Crisis

October 23, 2008 17:46 PM

KUALA LUMPUR, Oct 23 (Bernama) -- Despite the challenging global financial crisis, low-cost carrier AirAsia is confident of continuing to experience robust growth, bolstered by a sustainable business model, its chief executive officer Datuk Seri Tony Fernandes said.

"We think that we are in a strong position. We will continue to invest in our brand and increase demand through quality products while expanding routes," he told reporters after a media briefing on AirAsia's latest 5-Star Enhancement here Thursday.

He however said nothing was guaranteed as it was not known what was around the corner.

According to Tony, AirAsia was ready to face this challenging period as he had earlier predicted the eventuality.

"All I can say is that we will maintain a consistent strategy and change our products. We are a low-cost carrier and will not pretend to be something else.

"But, we are a high-quality low-cost carrier," he said.

Tony said the way out of recession for AirAsia was growth.

He said some airlines would deal with the recession by contracting. "But I am not going to waste five years of hardwork by throwing away the routes and brand development.

"It is going to be a long recession. I have been predicting this for two years and we are ready for it.

"Although it is not going to be easy, we have to maintain demand by having the lowest fares and good products," he stated.

Being the largest low cost carrier in Asia, AirAsia is able to compete with other full service airlines by maintaining its low fares and adding yet another sparkle to its already 5-star service, by enhancing its On-Time Guarantee.

The On-Time performance of flights refers to the departure of flights within 15 minutes of their scheduled departure times.

AirAsia is the only airline in the world that provides its customers with an innovative protection like the On-Time Guarantee. It is an innovative protection provided by the airline for customers against flight delays.

Beginning Nov 1, 2008, the AirAsia On-Time Guarantee cut waiting time from three to two hours.Customers affected by flight delays of more than two hours are eligible to receive an e-gift voucher.

Each e-gift voucher is worth RM200 and may be used to buy a seat on another AirAsia flight or redeemed for any AirAsia product or service.

The enhanced On-Time Guarantee is a benefit passed on to AirAsia customers as a result of the airline's improved performance for flight departures across its entire network.

In just a matter of three months since the AirAsia On-Time Guarantee was launched in June this year, the number of AirAsia flights delayed by an hour or more dropped from three percent in July and four in August to just two percent in September.

As a result, AirAsia has seen its On-Time performance for flight departures improving from 89 percent in July and 85 percent in August to 90 percent in September.

Touching on the delivery of the new airbus aircraft, Tony said it would be used for flights to India, China, Thailand and other Southeast Asian countries as AirAsia had a problem at the Low Cost Carrier Terminal(LCCT)in Sepang.

"The problem is, I have got no place to park the plane.Every morning when I come in and ask my engineers what all the planes were doing in the hangar,their reply was that there was no other place to park them.

"So, we now have 33 bays and 36 aircraft. Until we get more bays, it is a real problem for us," he said.

Tony said that AirAsia would allow Malaysia Airports Bhd to finish its development first before bringing the airbus to Malaysia.

On whether AirAsia would reduce the fuel surcharge following the decline in global oil prices, he said the company would review the situation but only make a decision when there is some price stability.

"Let's see some consistency in pricing and the volatility out of the market.

Then, we will make a decision," he said.

On Malaysia Airlines, he said: "Our battle with the airline is over. All I wanted was to be treated fairly and to get our routes.We have got that.

"The focus now is on our branding and we want to get better. The competition is now within us and with no one else," he added.

Source: BERNAMA

ERL Sees 5-10 Pct Growth Next Year

October 13, 2008 21:27 PM

By Siti Radziah Hamzah

KUALA LUMPUR, Oct 13 (Bernama) - Express Rail Link Sdn Bhd (ERL) is looking at five to 10 percent growth in its overall business next year.

Its chief executive officer, Dr. Aminuddin Adnan, said the target could be achieved with new strategies that have been outlined by the company and expected to be carried out by end of this year or early next year.

ERL is looking to expand its KLIA Transit business for the Low Cost Carrier Terminal (LCCT) and to market its services in Europe.

Aminuddin noted that its KLIA Transit service was growing and already recording higher number of passengers than its KLIA Express service.

KLIA Transit captures between 6,500 and 7,000 passengers a day while KLIA Express serves 4,500 passengers a day.

The company is planning to focus on KLIA Transits KL Sentral station to Salak Tinggi station and three connecting buses from Salak Tinggi to the LCCT.

"The competitors are charging RM8-RM9 from KL Sentral to LCCT. (However) we are looking (at a figure) higher than that because the fare from KL Sentral to Salak Tinggi is already RM12.50," Aminuddin explained.

He added that the transit bus fare would be waived for passengers who commute with KLIA Transit from KL Sentral, while passengers from Bandar Tasik Selatan and Putrajaya will be charged for the bus transit.

ERL operates two high-speed rail services, namely KLIA Express and KLIA Transit, which are connected from KL Sentral to the KL International Airport (KLIA).

"At the moment, KLIA Express has not been growing because even the traffic at the main terminal building has dropped to some extent," he told Bernama in an interview on the sidelines of the 14th World Route Development Forum here Sunday.

He said there was a 20 percent decline for the usage of KLIA Express since the opening of the LCCT in March 2006.

"We are affected because we have seen a lot of people switching from normal airlines to low cost carrier," he said, adding that the company is hoping to capture part of the Air Asias market.

He added ERL is looking at the Air Asias market, as they would probably constitute about 35 percent of the traffic at KLIA.

Aminuddin said that ERL is looking to selling its tickets worldwide and have started with Amadeus to market its service throughout the 300,000 Amadeus sales outlets in Europe.

Spain-based Amadeus is the leading Global Distribution System (GDS) and the biggest processor of travel bookings in the world.

"They are very strong in Europe. At the moment, we are almost finalising the legal arrangements with them and our technical people are already solving some technical issues," he said.

"We are looking at two to five percent (contribution from this partnership). This is a new market. So far, we notice more and more foreigners are taking our train. They are quite used to doing this in Europe," he added.

Source: BERNAMA

AirAsia Eyes America, Europe And Africa

October 07, 2008 17:29 PM

SEPANG, Oct 7 (Bernama) -- Low cost carrier AirAsia is eyeing new routes in America, Europe and Africa following its success in establishing operations in 11 Asean countries.

AirAsia Group chief executive officer, Datuk Seri Tony Fernandes said the new routes plan was not an impossible feat and will be profitable for AirAsia in future considering the good passenger growth rate it has recorded in Asean countries such as Indonesia and Thailand.

He, however did not say when the plans will become a reality.

Asked on the passenger growth rate amid the slowdown in world economy, he said it would all depend on how many new planes AirAsia will receive next year.

"Next year, we expect to receive nine new Airbus planes," he told reporters after attending a farewell ceremony for AirAsia's remaining Boeing 737 which made its last flight from Kota Kinabalu, Sabah to the Low Cost Carrier Terminal here today.

He also said that AirAsia was in a strong position to capitalise on whatever the economic situation, adding that air travel will be in business as usual because people needed to travel and that the budget airlines offered the best options currently.

Fernandes refused to comment on the privatisation plans for AirAsia.

At the event today, he also paid tribute to Boeing, saying that AirAsia started off with two Boeing 737s which had rendered them a wonderful service, and got them where they are today.

Replacing the Boeing 737 for the more fuel efficient Airbus A320 is an important step for AirAsia's ongoing efforts to minimise its carbon footprint. In addition, the saving AirAsia makes on fuel consumption will be passed on as low fares to its customers, he added.

Source: BERNAMA

AirAsia To Operate New Routes Between Singapore And Cities In Sabah, Sarawak

October 04, 2008 19:04 PM

KOTA KINABALU, Oct 4 (Bernama) -- Low-cost carrier AirAsia has been given the green light to operate new routes between Singapore and three cities in Sabah and Sarawak.

Transport Minister Datuk Ong Tee Keat said those cities are Kota Kinabalu, Kuching and Miri.

"Detailed negotiations between my ministry and the Singapore authorities will be finalised this month and we hope AirAsia can operate those routes as soon as possible. Definitely this year," he told reporters after attending the Sabah MCA convention here.

Ong also said that the negotiations would involve increasing AirAsias frequency between Kuala Lumpur and Singapore by December.

Currently, AirAsia is operating the Kuala Lumpur-Singapore route twice daily.

Meanwhile, Ong quashed misconceptions that Malaysia was not practising the open sky policy.

"People seem to have a misconception on the open sky policy when it is actually in place," he said.

"We have reached agreements with other countries to practise this policy in Sabah and Sarawak as well as at our secondary airports," he added.

Source: BERNAMA

Malaysian airports: Bring back AirAsia to save KLIA

2008/08/11

By : AZMI ATAN, Petaling Jaya

The Low-Cost Carrier Terminal is seeing a surge in the number of passengers while the Kuala Lumpur International Airport looks deserted.

I WISH to make a comparison. On a recent trip to Bangkok, I landed at the Suvarnabhumi Airport. It was a great experience. It was money well spent.

I got to enjoy all the facilities at the new airport and I feel this is what passengers, irrespective of what airline they are flying, should get.

When I compare this with the Low-Cost Carrier Terminal, I feel shortchanged.

Yes, the LCCT is built for AirAsia and other low-budget carriers. But look at Kuala Lumpur International Airport in Sepang. With all AirAsia flights originating and terminating at the LCCT, KLIA looks deserted.

Passenger volume is not at its maximum although the facilities at the airport are world-standard.
Compared with Suvarnabhumi, KLIA is rather quiet and too peaceful.

It would have been better if AirAsia returns to KLIA so that more people will be able to enjoy the facilities.

More passengers also means good business for the commercial outlets at KLIA.

I have accepted the fact that the return of AirAsia to KLIA is almost impossible, especially with the construction of the new LCCT.

I just hope that the new terminal will give the passengers greater comfort and better facilities.

We are humans and not robots. We want to enjoy good facilities and comfort.

We would love to see many shops and outlets and spacious waiting areas.

Yes, we pay a small amount as far as airport tax is concerned, but I wonder what the point is of having a big, modern and world-standard airport when most of the passengers and activities are centred at the LCCT?

I still harbour a small hope that AirAsia flights will one day originate and terminate at KLIA to make the airport relevant and make air travel via budget carriers like AirAsia more comfortable and worthwhile.

Source: NST

AirAsia Keen To Operate From Subang Airport

November 22, 2007 19:18 PM

SEPANG, Nov 22 (Bernama) -- AirAsia Bhd is keen to operate from the Sultan Abdul Aziz Shah Airport at Subang, a move that it says will enhance business and make the airport more competitive regionally.

AirAsia chief executive officer Datuk Tony Fernandes said today the company will do the necessary to help develop Subang airport.

It will be a good idea for the government to allow AirAsia to operate from Subang Airport, he told reporters after the company's annual general meeting here.

AirAsia had, among others, suggested that it too be allowed to operate from Subang just like community airline FireFly, a subsidiary of Malaysia Airlines (MAS).

Yesterday, Air Asia X chairman Datuk Seri Kalimullah Hassan was reported as saying that Malaysia needs a larger low-cost carrier terminal (LCCT) soon to accommodate the increasing passenger volume if it wants to become the regional hub for low-cost travel.

Fernandes said the Subang airport operations, apart from attracting more foreign investors to locate their businesses in Malaysia due to easier access to the Federal Capital, will also make it easier for foreigners to come here for medical, education and tourism reasons.

"Let's make Kuala Lumpur a relevant hub. If we are good and become a strong aviation player, there are so many aspects we can cater for, especially in the medical, tourism and education industries," he added.

"It is a fantastic cause-and-effect business. If we have our own airport close to town, it will attract more foreign investors and more visitors to Malaysia."

Fernandes also said that if AirAsia is allowed to operate from Subang Airport, the LCCT at Sepang can be converted into a cargo terminal.

Source: BERNAMA

Fly for price of bus ticket!

01 Feb 2007

KUALA LUMPUR: Almost a million more passengers thronged the arrival and departure halls of the Kuala Lumpur International Airport last year than in 2005.

About 24.1 million passengers went through the KLIA and the Low Cost Carrier Terminal that it launched in March last year.

That’s a four per cent increase over the 23.2 million passengers it saw in 2005, according to a preliminary report by Malaysia Airports Holdings Berhad.

The LCCT alone saw 4.6 million passengers, about half of its capacity of 10 million.

"We never thought budget flying would become so big," said MAHB corporate communications general manager Norliza Kamaruddin.

"Low airfares spread like wildfire among travellers. Those who thought they would never be able to fly discovered that they could," she said.

So would a price war bring more flyers?

"Ten years ago, the majority of Malaysians travelled by bus, car or trains, those who had a little bit more money could fly with Malaysia Airlines," Norliza said.

"Now everyone can fly for the same price that they pay for a bus ticket. It all depends on how much you want to pay," she added.

That no-frill airlines are still the main draw is plain. MAHB is planning to expand the terminal’s capacity to 15 million passengers.

Source: NST

New Low Cost Long Haul Airline aims for July 2007 Take Off

Wednesday, 10 January 2007

Fly Asian Xpress (FAX) is set to launch AirAsia X, a new low cost long haul airline. AirAsia X is expected to commence operations in July 2007 from the low cost terminal at Kuala Lumpur International Airport.

As part of the move FAX signed a Memorandum of Understanding with AirAsia. The MoU allows AirAsia to franchise its internationally recognized brand to FAX, the operator of AirAsia X.

AirAsia X’s network focus will cover destinations which are more than 4 hours in flight from Kuala Lumpur, offering daily point-to-point frequencies to popular destination in China, India and Europe. AirAsia X will also plans to tie up with LCC partners at destinations in order to increase connectivity and route network.

In terms of fleet, AirAsia X is currently finalizing its requirements, and aircrafts under consideration include Boeing 777-300ER’s and Airbus 330-300‘s.

”While AirAsia and AirAsia X will be 2 separate legal entities and have separate management teams, I believe AirAsia X and AirAsia will have a symbiotic relationship. Both carriers will enhance the feed of passengers into each others operations, and ensure passengers enjoy a seamless experience when flying with both carriers. We intend to leverage from the global popularity of AirAsia in creating the awareness of AirAsia X” Dato’ Tony Fernandes, Group Chief Executive Officer of AirAsia.

Source: ASIA Travel Tips .com

External Links:
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