AirAsia bags Gold at 30th International ARC Awards in New York City

BY B. SURESH RAM - 18 NOVEMBER 2016 @ 9:41 AM

SEPANG: AirAsia Bhd’s 2015 annual report themed ‘Discover More with AirAsia’ won the prestigious Gold Award under the ‘Grand Award – Best of Asia Pacific’ category at the 30th International ARC Awards. The winners were feted at the Pearl Anniversary Gala, held at The Plaza Hotel in New York City in Oct. The Company also received the Gold Award for ‘Best Non-Traditional Annual Report: Airlines’ category. The ARC Awards honours excellence in annual reports and is considered the most respected and prestigious competition in the industry. Winning an ARC prize is highly coveted due to the impartiality of the judging organisation, which boasts global representation. On top of that, Grand Awards are given only to the top 2 per cent of all the Gold winning annual reports. This year’s awards saw a total of 2,124 competing entries from 32 countries. Established by MerComm Inc. in 1987, the Annual Report Competition (ARC) Awards aims to encourage noteworthy and vital writing, as well as imaginative and original design. Preliminary and final judges represent top-level investor relations executives, financial executives, writers, designers, and photographers from over 50 different agencies and corporations. They hail from Austria, Canada, Germany, Hong Kong, Japan, Korea, Luxembourg, Mexico, New Zealand, Sri Lanka, Switzerland, Turkey, and the United States. Criteria used to choose winners included Cover Design, Chairman’s Letter, Writing, Interior Design, Financial Presentation, and, overall, how well the spirit of the company is reflected in the annual report. Air Asia’s Head of Investor Relations, Elina Effendi, said the award is a recognition of the efforts by a team of passionate people who have worked tirelessly to put the publication together, with the help of Allstars (AirAsia employees) from across the AirAsia Group. “We are proud to be honoured with this prestigious award recognising the creative input to our 2015 annual report. She said Airasia’s annual reports have become collectable items and they have been receiving requests for copies from corporations and individuals not just in Malaysia but all over the world. “With such high expectations given, every year, we challenge ourselves to improve the quality of our annual report as it is a representation of the AirAsia Allstars and the work they have done during the year”, she added. Elaborating on the theme of the annual report, she said, "Our annual reports are all about our people. We feature different Allstars every year based on the theme of the annual report for the year. For this publication in particular, the theme was 'Discover More with AirAsia.' She said apart from promoting new and interesting destinations with AirAsia, the annual report also has sections such as 'Discovering Your Purpose', which highlights the #AirAsiaMAKNA campaign and the story of employees who were personally affected by cancer. Elina said another section was on 'Discovering Your Ambitions', where the company talked about empowering Airasia’s people to achieve their dreams. This included the likes of Kugan Tangiisuran from Malaysia, who was a dispatch boy but is now a pilot; a Thai AirAsia Allstar, Pinkaew Sujanakobkul, who was a ramp agent but is now an ICT Supervisor; and Tantu Agung Suharto, the Head of Corporate Quality and Assurance in Indonesia AirAsia, who started his career with the company as a guest service assistant." AirAsia’s award-winning annual reports can be viewed and downloaded at http://www.airasia.com/my/en/about-us/ir-annual-reports.page. Nova Fusion Sdn Bhd is the Malaysian-based creative agency commissioned by AirAsia Berhad for the creative execution and the publication of the 2015 annual report.

Source :
http://www.nst.com.my/news/2016/11/189648/airasia-bags-gold-30th-international-arc-awards-new-york-city

AirAsia launches Airbus Smarter Fleet Electronic Flight Folder (eFF)

1. Airbus help AirAsia in Smarter Fleet Electronic Flight Folder (eFF).

2. eFF is a comprehensive software application that allows pilots to access their briefing package on-board the aircraft, or from home, the hotel, or the crew briefing room. The software also offers enhanced capabilities to manage electronic forms such as the post flight journey log and air safety reports. It is interconnected with the airline environment delivering briefing packages and automatically archiving data.

3. “At AirAsia we place great importance in making sure that our crew are equipped with the  latest applications and an optimised working environment,” said  Tony Fernandes, Group CEO of AirAsia. “With the latest solutions being offered by Airbus, we can reduce paper in the cockpit, enhance overall efficiency and ensure that we maintain the very highest standards of safety and operational excellence.”

4. “We are pleased to launch our latest innovation with AirAsia,” said Didier Lux, Head of Customer Services, Airbus. “As one of our largest customers, AirAsia continuously demonstrates its commitment to ensure the most efficient and reliable flight operations. Today the airline once again leads the way in working towards a truly Smarter Fleet.”

5. The new eFF application can be combined with a whole suite of Smarter Fleet solutions to optimize end-to-end operations. For instance, with the Maintenance Mobility module, maintenance personnel will be provided with timely information including documentation, work packages, and critical aircraft technical data, harnessing the benefits of mobile technology.
The AirAsia Group is one of Airbus’ largest customers worldwide and has now placed orders for a total of 571 Aircraft. These include 475 A320 Family aircraft for the pan-Asian short haul fleet, plus 96 widebodies (86 A330s and 10 A350 XWBs) for operation by long haul affiliate AirAsia X.

Source : http://www.airbus.com/presscentre/pressreleases/press-release-detail/detail/airasia-launches-airbus-smarter-fleet-electronic-flight-folder-1/

16 JUNE 2015  

AirAsia clarifies use of wheelchairs at airports

From source : www.theborneopost.com , 9 Jan 2014

Dear Editor,

WE refer to the letter written by A Concerned Citizen in the Letters to the Editor section, published by The Borneo Post on Sunday, Jan 5 2014, with the headline ‘Exorbitant fees for usage of wheelchairs at airports’.

AirAsia would like to clarify that usage of wheelchair on all AirAsia flights is complimentary for all disabled guests (OKU). Disabled guests only need to key in their OKU / disability card number during the online flight booking process and present the actual card upon check-in at the airport. They will be fully assisted from the wheelchair counter to the aircraft, and the ambulift will be used to board the disabled guest.

We also work closely with the Malaysian Council for Rehabilitation, Persatuan Mobiliti Selangor & Kuala Lumpur, Department of Social Welfare of the Ministry of Women, Family and Community Development; as well as YMCA and Damai Disabled Person Association Malaysia to provide training to our staff to continuously improve our service level to disabled guests.

The wheelchair service is also available for pre-booking at AirAsia’s website for non-disabled guests who might require it. This service is at a minimal RM30 one way when pre-booked online.

To pre-book the wheelchair service, guests are required to select ‘YES’ at the option menu at the bottom of the flight selection page on our website, which will then be listed under ‘Add-ons’ in the ‘Traveller details’ page. It is available up to 4 hours prior to departure via our booking channels.

Non-disabled guests who require the usage of wheelchairs without pre-booking online will be charged RM60 for a single usage. This fee includes the cost of additional manpower which is required to manage the service.

AirAsia Berhad

AirAsia wins Asia’s Best Managed Company two years in a row

Aireen (right) receiving the ‘Best Managed company in Asia for the Airlines & Aviation sector’ certificate from Euromoney Magazine Asia Regional head; Marcus H Langston.

KUCHING: International magazine Euromoney has once again named AirAsia Bhd (AirAsia) as the winner of the ‘Best Managed Company in Asia for the Airlines and Aviation Sector’, for Euromoney’s ‘Best Managed and Governed Companies – Asia Poll 2014’.

AirAsia was the winner of the same accolade in 2013, a tribute to the company’s focus on integration and expansion and excellent corporate foresight of the aviation industry.

The poll is based on replies received from a total of 93 of the leading equity analysts at the largest investment banks and research houses in the Asia Pacific region nominating a total of 214 different companies.

Analysts were asked to name which companies were the most impressive across a number of factors including; management accessibility, accounting transparency and corporate governance procedures amongst others.

Analysts praised AirAsia for its leading role in promoting transparent communication to investors, citing that “the company has a clear strategy and good visibility”.

Analysts also noted that “AirAsia senior management continues to demonstrate prudent gearing, transparency, good governance and clear articulation of strategy.”

Aireen Omar, chief executive officer of AirAsia said, “This is an excellent start for us in 2014, being the recipient of one of the highest accolades in the industry from Euromoney.

“This achievement reflects our commitment to ensure utmost transparency and good governance in our business, in order to preserve the confidence of our stakeholders and investors.

“Total confidence and unshaken credibility is vital in our quest to expand the business and extend our reach across the region and beyond.”

This is the 15th annual ranking of the Best Managed and Governed Companies in Asia that Euromoney has published and is seen as the benchmark survey of the opinions of equity analysts in the region.

Clive Horwood, editor of Euromoney Magazine, said, “The continuing prominence of Asia in global markets has created new growth opportunities for Asian companies.

“Through our annual survey, leading analysts covering Asia across all sectors have rewarded well governed institutions for sound financials and transparent relations with an increasingly wider investor pool.”

Source & Photo : www.theborneopost.com, 11 Jan 2014 

AirAsia to cut costs by 7 per cent: Tony Fernandes, CEO

CHENNAI: Malaysia-based low cost air carrier AirAsia today indicated cutting
costs in 2014 up to seven per cent, a top official said today.

"2014 is about cutting cost. We think we will cut costs by seven per cent," Air Asia Bhd Group CEO Tony Fernandes wrote on micro-blogging site 'Twitter'.

"Ancillary income will rise and margins will rise," he said.
Fernandes, who is in Frankfurt for a roadshow, said, the load factor for the airline was 91 per cent in December.

"(Air) fares can go lower than they are now. Load factor for December was a whopping 91 per cent", he said.

He said the strategy for 2014 was by "lower costs. higher ancillary through services and the Emirates project".

"I love competition. Will provide some huge competition to full service airlines. Watch us in 2014. Cutting loads of cost," he said.
Source : http://businesstoday.intoday.in

MAS, AirAsia bakal terjejas?

KUALA LUMPUR 3 Jan. - Malaysia Airlines (MAS) dan AirAsia masing-masing dijangka kehilangan tujuh dan lapan peratus penguasaan pasaran bagi laluan Kuala Lumpur-India kepada syarikat penerbangan baharu, Malindo Air bermula akhir Mac depan.

Menurut laporan oleh Pusat Penerbangan Asia Pasifik (CAPA) hari ini, keadaan itu dijangka berlaku apabila Malindo Air memulakan operasi sebanyak 23 penerbangan seminggu bagi laluan tersebut.
Sejumlah 23 penerbangan seminggu itu menyamai kapasiti 4,140 tempat duduk bagi laluan sehala Kuala Lumpur-India atau 15 peratus daripada keseluruhan tempat duduk yang disediakan oleh pelbagai syarikat penerbangan.

Lebih buruk lagi kepada MAS, Malindo Air telah mendapat kebenaran yang diperuntukan kepada syarikat Malaysia, untuk laluan ke Delhi dan Mumbai, sekali gus memecahkan monopoli MAS yang menyediakan laluan ke dua destinasi tersebut sejak awal 2012.

Laporan itu menyebut, sehingga akhir 2013, MAS menguasai 53 peratus pasaran dan dijangka merosot kepada 46 peratus, manakala penguasaan AirAsia menurun daripada 43 peratus kepada 35 peratus.

Kedua-dua syarikat penerbangan itu ketika ini menawarkan 66 penerbangan seminggu dan 56 penerbangan seminggu dari Kuala Lumpur-India meliputi enam destinasi di negara Asia Selatan tersebut.

Langkah terbaharu Malindo Air itu sedikit sebanyak menjejaskan perancangan perniagaan MAS dan AirAsia memandangkan sejak dua tahun lalu, kedua-dua syarikat itu meningkatkan kapasiti penerbangan ke India antara 45 peratus hingga 50 peratus.

Bagaimanapun, menurut laporan itu lagi, AirAsia dijangka tidak menerima kesan seburuk MAS memandangkan syarikat itu telah memperkenalkan AirAsia India yang menyediakan penerbangan domestik di seluruh India.

Hal itu dapat membantu kedudukan syarikat penerbangan tambang murah itu menerusi pakej yang lebih baik kepada pengguna yang menggunakan Kuala Lumpur-India dan seterusnya perkhidmatan domestic.

Sumber : Utusan Malaysia, 5 Jan 2014

AirAsia to lower cost, air fares and effect higher ancillary in 2014

Fernandes is of the view that AirAsia's competition would lose the pace as his company going to have very low fares

AirAsia Group CEO Tony Fernandes today said that the Airline's target for 2014 would be lower cost, higher ancillary through more services and the Emirates project.

In his Twitter page, he said, “Excellent day at AirAisa. Excellent management meeting. Everyone geared up for 2014. Cost reduction. Back to the old days. Lower air fares.”

He further said, “Strategy for 2014. Lower costs. Higher Ancillary through more services and the Emirates project. Exciting. I love competition. Will provide some huge competition to full service airlines. Very exciting for passengers”.

Fernandes is of the view that AirAsia's competition would lose the pace as his company going to have very low fares. “I predict some won't last the pace”.

“The two CEOs are planning something big. Very excited. Our Emirates project,” he said, adding that growing the ancillary income would be one of the major. “Watch us in 2014. Cutting loads of cost.”

Source: Business Standard, 3rd Jan 2014

DGCA to send team to inspect Air Asia facilities

NEW DELHI: Ahead of granting flying permit to AirAsia India, aviation regulator DGCA is sending a team of its officers to Malaysia next week to inspect and certify facilities where the start-up carrier is training its cockpit and cabin crew. 

AirAsia India, which is using the training facilities of its parent airline AirAsia in Malaysia, plans to set up similar facilities in India in the coming years, airline sources said. 

However before these training facilities come up in India, the first few batches of AirAsia India crew, comprising little over 100 personnel, are undergoing training in Malaysia which would be inspected by the officials of the Directorate General of Civil Aviation (DGCA), they said. 

The airline is hopeful of receiving the air operator's permit (or the flying license) by January end, with officials saying work was going on in full-swing in that direction. 

The DGCA team is likely to reach Kuala Lumpur next week, official sources said, adding once these training facilities are certified, the approvals could be reviewed in the next one or two years. 

The officials said the no-frill carrier, a joint venture of AirAsia, Tatas and Telstra Tradeplace, have tailored the training curriculum to meet Indian aviation requirements. In February, the three companies had announced signing of an agreement to launch an Indian no-frill carrier. 

On September 20, AirAsia India got the No Objection Certificate (NOC) from the Civil Aviation Ministry to start airline operations in India after which it applied to the aviation regulator for a permit. It plans to operate a fleet of Airbus A320-200 aircraft, initially with 4-5 planes and quickly expand it to ten in a year. 

Meanwhile, the second aviation venture of the Tatas -- a full-service carrier to be launched by it and the Singapore Airlines (SIA), has applied for the NOC to the Ministry. Tata Sons, the majority partner, and SIA would make a total initial investment of USD 100 million. 

On September 19, Tata-SIA had announced signing a MoU and applying for Foreign Investment Promotion Board's approval to establish the new airline. FIPB, the nodal agency that clears foreign direct investments in India, gave its nod to the proposal on October 24. 

Source : http://economictimes.indiatimes.com 

AirAsia to benefit from KL Sentral-klia2 rail link

PREMIUM air travellers, who previously may have been hesitant to fly via the low-cost carrier terminal (LCCT), could soon be enticed to use the new Kuala Lumpur International Airport 2 (klia2), which is due to open on May 2 next year.

Premium travellers, who see departing from the present LCCT as being inconvenient and uncomfortable, could change their minds when klia2 opens, and this will be a boon for AirAsia Bhd.

"The rail link between the main KLIA terminal, klia2 and Kuala Lumpur's KL Sentral station will lure premium passengers to AirAsia, given the carrier's higher flight frequencies and punctuality," said RHB Research Institute Sdn Bhd.

"This will be positive in providing an upside to overall passenger yields. In fact, AirAsia has taken the opportunity to offer a 'Hi Flyer' scheme tailored to the needs of business and premium passengers, which provides the flexibility of flight timing and express boarding."

RHB Research added that the extra service offering has led to strong take-ups from the business community.

The firm said AirAsia has taken delivery of 11 aircraft, of which five were delivered this month alone, in line with its assumption of an average of six new aircraft for 2013.

RHB Research expects AirAsia to take delivery of four aircraft in 2014 and three in 2015.

In total, the AirAsia group is expected to take delivery of 31 aircraft, although most would be deployed to its associates.

As such, AirAsia will reap the benefits of higher lease rental income.

RHB Research expects this will grow by 18 and 10 per cent for 2014 and 2015, respectively.

With loads expected to hover at 78 per cent for 2014-2015 (down by one percentage point from its 2013 assumption), AirAsia should see its revenue passenger kilometre grow by seven and five per cent, respectively.

On its yield outlook, RHB Research said while there may still be pressure on airfare yield, this will be mitigated by the higher ancillary revenue that AirAsia is expected to rake in, notably from the recent revision of its baggage weighing structure and new ancillary initiatives launched, such as "Hi Flyer".

AirAsia's baggage revision and stricter passenger inspection of cabin luggage have enabled the carrier to garner the highest baggage revenue per pax collected in third quarter 2013 of RM21.30 per passenger.

Good year ahead for aviation?

THE rapidly-expanding aviation sector is expected to remain challenging and competitive in 2014. Nevertheless, industry players and analysts are of the opinion that the outlook will be “positive” next year.

According to industry players, the opening of KLIA2, which has been delayed numerous times, promises an interesting development as it is expected to boost air traffic. At the same time, all eyes will also be on Malaysia Airlines (MAS) turnaround story.

AirAsia group chief executive officer Tan Sri Tony Fernandes says 2014 would be a big year for the AirAsia group and it would be introducing new duty-free business like a mall in the sky to boost its ancillary income.

He adds that the outlook seems positive for the industry while competition would be more rational next year.

He says there was rising demand for air travel as well as positive economic growth.

“I think if competition is rational, which I believe it will be, the industry’s outlook will be positive. I think 2014 has huge benefits for Malaysia because of AirAsia X’s growth,” he says.

Fernandes says the opening of KLIA2 will give the industry a massive boost.

“As long as we keep fares low, people will fly. There are 3 billion people in Asia,” he adds.

To reflect the optimism of the aviation industry, the International Air Transport Association (IATA) recently revised its industry outlook upwards for the coming year. It is now predicting that airlines will collectively post a global net profit of US$12.9bil in 2013, surging to US$19.7bil in 2014.

IATA’s projected profit of US$19.7bil for 2014 is a new record for airlines. The upward revision is due to lower jet fuel prices over the forecast period as well as improvements to the industry’s structure and efficiency already visible in quarterly results this year. Passenger markets continue to outperform the cargo business which remains stagnant both on volumes and revenues.

Industry net profit margins, however, remain weak at 1.1% of revenues in 2012, 1.8% in 2013 and 2.6% in 2014. Within this aggregate forecast for the entire industry, performance of individual airlines and regions will vary considerably.

Asia-Pacific airlines are expected to post a US$4.1bil profit in 2014, up from US$3.2bil in 2013.

“Overall, the industry’s fortunes are moving in the right direction. Jet fuel prices remain high, but below their 2012 peak. Passenger demand is expanding in the 5%-6% range – in line with historical trend. Efficiencies gained through mergers and joint ventures are delivering value to both passengers and shareholders. And product innovations are growing ancillary revenues,” according to IATA director-general and CEO Tony Tyler.

MAS group CEO Ahmad Jauhari Yahya says “2013 was an exciting year for us at MAS. New routes to Dubai, Kochi and Darwin were introduced as we look to improve our network reach. We also deployed our flagship A380 aircraft to the Paris and Hong Kong routes. We expect 2014 to also be a year of more exciting projects.’’

He adds that “we are constantly monitoring markets and various destinations around the world and exploring their economic viability’’.

Malindo Air CEO Chandran Rama Muthy says the airline’s performance the past 10 months has been good and he expects the trend to continue to 2014. Malindo Air will continue pursuing significant domestic and international expansion to capture a greater share of the regional market.’’

He adds that the airline has 11 aircraft this year and will increase to 25 next year.

‘‘We will continue pursuing international expansion, sticking to our long-term plans of turning the under-used KLIA into our main transit hub, thus easing the congested Singapore and Bangkok airports. With the launch of our Indian market in the beginning of the year, we are poised to capture a bigger market share. However, we will focus on a good foothold in the South-East Asian market. Domestically, we are now providing more than 60,000 weekly seats, and with more aircraft next year, we are projecting an increase of 60,000 seats,’’ Chandran adds.

Meanwhile, analysts expect competition in the industry to continue to be intense and not restricted to local airlines.

They note that full-service airlines and low cost carriers are expanding their fleet and seat capacity, making South-East Asia one of the fastest growing aviation markets in the world. Carriers across the region are aggressively expanding their network and capacity ahead of the full implementation of the Asean Open Sky policy in 2015.

AirAsia X Bhd, which was listed on Bursa Malaysia in July, has ordered 25 more A330-300s valued at US$6bil (RM19.55bil). Another notable order of aircraft for 2013 would be Emirates’ purchase of an additional 50 Airbus A380 superjumbos valued at US$20bil, confirming the continued strong demand for air travel.

RHB Research says competition in 2014 will persist, but will be less severe asMalindo Air opts to take a more conservative expansion strategy, which bodes well for AirAsia and MAS.

“We see value in the former and AirAsia X as their valuations are relatively cheap compared to their regional and global peers,” it says.

RHB Research maintains its overweight call on the sector, citing the Visit Malaysia Year 2014 campaign and KLIA2 as the theme for higher passenger arrivals.

“The year 2014 is expected to remain competitive as Malindo continues to spread its wings. However, we think Malindo Air will be less aggressive due to its high cost structure.

Its airfare discounts have narrowed while there have been capacity cutbacks on some routes. Furthermore, fleet delivery so far (it currently has six narrow-bodied aircraft) has been below its initial target of 12 aircraft.”

RHB Research says “2013 has been a challenging year for Malaysian carriers” as they embarked on aggressive capacity expansion to boost topline and achieve economies of scale amid heightening competition driven by Malindo Air’s debut. This resulted in yields coming under pressure for MAS and AirAsia, dropping by 12.7% and 5.3% year-to-date respectively.

The entry of Lion Air group’s Malindo Air this year has proven to be impactful in the MAS-AirAsia duopoly domestic air travel market as both airlines have seen their yields affected by the new carrier.

AirAsia executive chairman Datuk Kamarudin Meranun says its yield has been slightly affected due to the intense competition and that it will be coming back with more promotions, cost reductions and new ancillary income streams to defend its turf.

RHB Research says AirAsia’s low-cost model has enabled it to stand strong despite intensifying competition amid a cost-conscious culture.

It says Malaysia Airports Holdings Bhd (MAHB) benefits the most from rising passenger demand as low air fares stimulate air travel. The airport operator reported a 17.3% jump in year-to-date passenger numbers in October, driven by strong growth in both the domestic and international segments.

There’s a new carrier, Flying Fox Airways, an Ipoh-based airline which aims to increase the accessibility of Ipoh.

Flying Fox was supposed to commence operation on Dec 13 but got grounded on the day itself as the Ipoh airport runway was not ready for their aircraft.

Flying Fox complained that it had to cancel all its Ipoh-Medan flights between Dec 13 and June next year because the airport was unable to accommodate the Boeing 737-400 and Airbus A320.

On the opening of KLIA2, there have been reports suggesting that the contractors may not meet the scheduled completion to commence operations in April 2014.

MAHB has also expressed concern over the slippage in the work schedule of the terminal building, which is being built by the UEMC-Binapuri joint venture.

Nevertheless, UEM Construction Sdn Bhd and Bina Puri Sdn Bhd, the main contractors of the new low-cost terminal, have reaffirmed their commitment to complete work on the project within the stipulated deadline of Jan 31, 2014.

Source : The Star Online, 28 Dec 2013

Tan Sri Tony Fernandes - Founder and Group CEO of AirAsia Bhd

INDIA is the biggest market that Tony Fernandes is hoping to anchor in next year.

He had big dreams and had hoped to land in India this year, but it simply did not happen. He had to abandon two launch dates – September and October – as AirAsia India could not obtain a permit. While he hopes to receive the schedule operator permit or SOP in January to begin flying out of Chennai, Bernama has reported that he may now need to wait until mid-2014 before it can start flying.

Given his expertise in managing low-cost airlines, Fernandes remains confident of taking India by storm, but also knows all too well that India is not an easy market. There are too many players and it is a very competitive market, although it is booming due to its growing upper-middle-class segment.

Besides India in 2014, Fernandes – who has returned from his sojourn in Jakarta – has to come up with a strategy for AirAsia to take on the competition on home turf and increase income.

Barely two years after making Jakarta their new base, Fernandes and his confidant, Datuk Kamarudin Meranun, returned to Kuala Lumpur in November this year. Before leaving for Jakarta, they had left the running of AirAsia to Aireen Omar, but Kamarudin has since been redesignated as executive chairman of AirAsia, and Fernandes as group CEO and non-independent executive director.

The entry of Malindo Air has intensified competition on the home turf not just in the domestic routes but also some regional routes. Although both AirAsia and Malaysia Airlines have discounted the new player, they are, in reality, feeling the heat from the airline, and their return suggests that they are indeed worried about competition on the home turf.

One of Fernandes’ biggest challenges in 2014 is to manage competition and price fares right, although to him, “so long as we keep fares low, people will fly”.

Getting into India will give him a link to a vast market, but it will not give him immediate returns. Hence, AirAsia Malaysia remains the cash cow. However, he has to relook at costs once again.

Fernandes is also a lot richer after the back-to-back listings of his private companies, namely, long-haul carrier AirAsia X and Tune Ins Holdings Bhd this year, which raised more than RM1.2bil.

In 2014, Fernandes is looking at listing Indo AirAsia, and aside from India, he also wants to get into Myanmar, a tough market which other airlines are also eyeing. This will give him another hub that he needs, as he has dreams of AirAsia becoming like Emirates.

Also in the cards for next year are plans to introduce a mall in the sky – selling duty-free stuff to boost ancillary income.

He also has to shift operations from the low-cost carrier terminal in Sepang to KLIA2. Will he use aerobridges or make his passengers walk the tarmac at the new airport?

Most importantly, Fernandes has to deliver what the shareholders want - better dividends. – By B.K. Sidhu

Source : The Star Online, 28 Dec 2013

Aviation industry to fly through 2014 with less turbulence

for Malay version : http://senangtravel.blogspot.com/2013/12/industri-penerbangan-dijangka-kurang.html 

KUALA LUMPUR: The local aviation industry is set to fly at cursing altitude next year, with great growth prospects ahead, after having gone through some minor turbulence this year.

Local airlines can make 2014, a year to remember as Malaysia Airlines, AirAsia and Malindo look set to go head-to-head in the battle to win customers and keep them.

Malaysia Airlines will replace old aircraft to make way for the arrival of new planes to help further improve product offering.

The national carrier will use the additional capacity to increase frequencies to meet passenger demand and fly to new destinations. 

Its solid business model includes aggressive marketing and promotions, better capacity management, optimising asset utilisation and driving productivity.

Meanwhile, low-cost carrier AirAsia's positive growth is set to continue into the New Year while its long-haul service, AirAsia X, is aggressively expanding capacity from time to time.

The group has placed the largest single airline orders with Airbus for an additional 25 A330-300s valued at US$6 billion.

New aircraft will provide the carrier with the ability to offer non-stop services to destinations in Europe or one-stop services to the United States.

Malaysian-based hybrid airline, Malindo Air, will spread its wings in India by aggressively adding six more destinations by the end of next year.

It will start the Kuala Lumpur-New Delhi sector at the end of this month, followed by Trichy, Tamil Nadu, on Jan 2, 2014 and Mumbai, Maharashtra, on Feb 15, 2014.

The government also pledged to transform Malaysia into a regional aviation hub which would have a multiplier effect on the economy.

Prime Minister Datuk Seri Najib Tun Razak tabled the 2014 budget with the promise to formulate a National Aviation Policy, aimed at strengthening the ecosystem and services network in the aviation industry.
2014 will also usher in Visit Malaysia Year, the nation's biggest and grandest tourism celebration aimed at luring a record 28 million international tourist arrivals.

This programme will bode well for the overall aviation sector including, airport operator, Malaysia Airports Holdings Bhd, as it will boost passenger arrivals.

RHB Research Institute expects competition between AirAsia and Malaysia Airlines to remain challenging but less severe. "However, Malindo will be less aggressive due to its high-cost structure," said analyst Ahmad Maghfur Usman.

He said this bode well for the two dominating local carriers, AirAsia and Malaysian Airline, if they play their cards right in maximising yields and loads. 

"Intense competition has resulted in airlines luring travellers with big discounts, which will help boost demand for air travel," he said, adding that this would benefit Malaysia Airports.

New budget terminal, KLIA2 which is scheduled for May 2, will also give a massive boost to the industry.
Ahmad Maghfur said high jet fuel prices, volatile exchange rates and stiff competition were among factors that affected airlines' earnings this year.

The fate of AirAsia and Malaysia Airlines over the fine imposed by the Malaysian Competition Commission in September for allegedly breaching competition laws was likely to be known in January.

On September 6, 2013, the commission announced that the companies would be fined up to RM10mil each for infringing section 4(2)(b) of the Competition Act 2010 by entering into an agreement which saw the two airlines sharing markets within Malaysia. - Bernama

Source : The Star Online, Dec 27, 2013

Industri Penerbangan Dijangka Kurang Tempuhi Gelora Pada 2014

For English Version : http://senangtravel.blogspot.com/2013/12/aviation-industry-to-fly-through-2014.html

Oleh Mohd Iswandi Kasan Anuar

KUALA LUMPUR, 27 Dis (Bernama) -- Industri penerbangan tempatan bersedia untuk 'terbang tinggi' tahun depan, dengan prospek pertumbuhan yang besar, selepas melalui beberapa 'pergolakan' kecil tahun ini.

Syarikat penerbangan tempatan boleh menjadikan 2014 satu tahun untuk dikenang dengan Malaysia Airlines, AirAsia dan Malindo, bersedia untuk bersaing memenangi hati pelanggan.

Malaysia Airlines akan menggantikan pesawat lama untuk memberi laluan kepada ketibaan kapal terbang baharu untuk membantu meningkatkan lagi penawaran produk.

Syarikat penerbangan negara itu akan menggunakan kapasiti tambahan untuk meningkatkan kekerapan bagi memenuhi permintaan penumpang dan terbang ke destinasi baharu.

Model perniagaannya yang kukuh termasuk pemasaran dan promosi yang agresif, pengurusan kapasiti yang lebih baik, mengoptimumkan penggunaan aset dan memacu produktiviti.

Sementara itu, pertumbuhan positif syarikat penerbangan tambang rendah AirAsia, bakal diteruskan pada tahun baharu ini manakala syarikat penerbangan jarak jauhnya, AirAsia X, agresif memperluaskan kapasitinya dari semasa ke semasa.

Kumpulan itu telah membuat tempahan terbesar dengan Airbus bagi tambahan 25 pesawat A330-300 bernilai AS$6 bilion.

Pesawat baharu itu akan membolehkan syarikat penerbangan berkenaan menawarkan perkhidmatan tanpa henti ke destinasi di Eropah atau perkhidmatan sehenti ke Amerika Syarikat.

Syarikat penerbangan hibrid yang berpangkalan di Malaysia, Malindo Air, akan melebarkan sayapnya di India dengan menambah enam lagi destinasi menjelang akhir tahun depan.

Syarikat itu akan memulakan sektor Kuala Lumpur-New Delhi pada akhir bulan ini, diikuti dengan Trichy, Tamil Nadu, pada 2 Jan 2014 dan Mumbai, Maharashtra, pada 15 Feb, 2014.

Kerajaan juga berjanji untuk mengubah Malaysia menjadi hab penerbangan serantau yang akan mempunyai kesan pengganda ke atas ekonomi.

Perdana Menteri Datuk Seri Najib Tun Razak semasa membentangkan bajet 2014 dengan janji untuk menggubal satu Dasar Penerbangan Nasional, bertujuan untuk mengukuhkan ekosistem dan rangkaian perkhidmatan dalam industri penerbangan.

Tahun 2014 juga akan menyambut Tahun Melawat Malaysia, sambutan pelancongan terbesar dan terhebat di negara dengan sasaran untuk menarik 28 juta ketibaan pelancong antarabangsa.

Program ini akan memberikan petanda yang baik untuk sektor penerbangan secara keseluruhan termasuk pengendali lapangan terbang, Malaysia Airports Holdings Bhd, kerana akan meningkatkan ketibaan penumpang.

Institut Penyelidikan RHB menjangkakan persaingan antara AirAsia dan Malaysia Airlines kekal mencabar tetapi kurang teruk.

"Bagaimanapun, Malindo akan kurang agresif disebabkan struktur kos yang tinggi," kata penganalisis Ahmad Maghfur Usman.

Beliau berkata ini juga memberi manfaat kepada kedua-dua syarikat penerbangan tempatan, AirAsia dan Malaysia Airlines, jika mereka menetapkan strategi dengan betul dalam memaksimumkan hasil dan jumlah muatan.

"Persaingan sengit telah menyebabkan syarikat penerbangan menarik penumpang dengan diskaun yang banyak, yang akan membantu meningkatkan permintaan bagi perjalanan udara," kata beliau, sambil menambah bahawa ini akan memberi manfaat kepada Malaysia Airports.

Terminal penerbangan tambang rendah yang baharu, KLIA2 yang dijadualkan siap pada 2 Mei, juga akan memberi rangsangan besar kepada industri.

Ahmad Maghfur berkata harga bahan api jet yang tinggi, kadar pertukaran yang tidak menentu dan persaingan sengit adalah antara faktor yang menjejaskan pendapatan syarikat penerbangan pada tahun ini.

Kedudukan AirAsia dan Malaysia Airlines berhubung denda, yang dikenakan oleh Suruhanjaya Persaingan Malaysia pada September kerana didakwa melanggar undang-undang persaingan, mungkin diketahui pada Januari ini.

Pada 6 September 2013, suruhanjaya itu mengumumkan bahawa syarikat penerbangan berkenaan akan dikenakan denda sehingga RM10 juta setiap satu kerana melanggar Seksyen 4 (2)(b) Akta Persaingan 2010 setelah memeterai satu perjanjian yang menyaksikan kedua-dua syarikat penerbangan itu berkongsi pasaran di Malaysia.



-- BERNAMA

AirAsia India unlikely to start flying before summer 2014

NEW DELHI: AirAsia India, which was initially optimistic about starting operations by October this year and then January 2014, may now need to wait until summer 2014 before it can start flying, according to media reports.

AirAsia India is a 49:30:21 joint venture between AirAsia Bhd, Tata Sons and Telestra Tradeplace.

Tata Sons later entered into another joint venture with Singapore Airlines Tata-SIA to create a full-fledged airline in India. In Tata-SIA, Tata Sons is the majority shareholder with a 51% stake.

The Foreign Investment Promotion Board (FIPB) has cleared both airline ventures.

FirstPost.com reported that Tata-SIA has applied to the Ministry of Civil Aviation for a no-objection certificate (NoC), giving mandatory details such as number of directors on its board and seeking security clearance for them from the Ministry of Home Affairs.

AirAsia India had already secured the NoC earlier. However, it has still not been granted the operating permit and is therefore unlikely to take to the skies before the summer schedule of 2014, reported the online business daily.

The report quoted an unnamed senior official in the ministry confirming both these developments to the daily, saying the NoC application from Tata-SIA has been received over the last few days.

According to the report, there has been much speculation about the apparently fast-track treatment that the Tata-SIA venture has received from various government departments against the rather slow pace of clearances being accorded to AirAsia India.

The NoC for Tata-SIA may also arrive fairly quickly. Thereafter, it will approach aviation regulator DGCA for a flying permit. For AirAsia India, though, delays abound.

Now, another hitch could be the voluntary retirement that current Director General of Civil Aviation has taken his last day in office is Dec 31. And until now, there has been no decision on a successor, said Firstpost.com.

So it is possible that AirAsia's launch plans get further delayed since its operating permit still needs to be issued by the DGCA. The official quoted earlier said there is a long-drawn procedure for issuing a Scheduled Operators' Permit (SOP), the report said.

The two ventures are expected to address widely different segments of the domestic aviation business AirAsia India would be an ultra low-cost carrier, based out of Chennai, whereas Tata-SIA would be a full service carrier, based in New Delhi.

The report also said that there has been persistent speculation over the Tatas pulling out of AirAsia India since the two business models are widely divergent and may not offer synergies.

This speculation has been denied by the Tatas and Civil Aviation Minister Ajit Singhhad earlier clarified that no aviation rule has been violated by the Tatas in having a stake in two separate airline ventures.

The ministry official quoted earlier said in case the Tatas were to pull out, the entire process would have to be cancelled. "The FIPB approval was given based on the shareholding structure submitted at that time. If there is going to be a change in shareholding, a fresh FIPB approval will of course be needed," he said – Bernama.

Source : The Star Online, 27 Dec 2013

Tan Sri Tony Fernandes announced Wi Fi on board AirAsia at Twitter account

Tweet from AirAsia's Tan Sri Tony Fernandes  :

"Pleased to announce to all Airasia guest. In the 1st quarter we will have a Wi Fi on board. New in flight. Social media and shopping. "

Oh, i just activate my twitter account. Zero followers! haha... A new start for 2014!!

@senangtravel