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

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 X Cheap flights to Europe set to return

Good news for frequent flyers to Europe...


Low-cost Malaysian airline AirAsia X announced on Wednesday an order of 25 long-range A330-300 aircraft with a catalogue price of nearly $US6 billion (RM19.6 billion) as it looks to return to serving Europe.

"This order stamps our firm intent to dominate the long-haul, low-cost carrier space and marks the next phase in our development to be the undisputed global market leader," AirAsia X's director Tony Fernandes was quoted as saying in a statement.

Airbus said at a joint press conference in Paris it was the biggest single order for the widebody twin-engine aircraft from an airline, and would begin delivering the planes to the long-haul affiliate of the AirAsia group in 2015.

The order includes the latest version of the A330-300 capable of flying from Asia to Europe or the Americas non-stop.

Foto : twitter @azmanosmanrani

AirAsia staff see slash in 2013 bonus payout

Low-cost carrier AirAsia Bhd has slashed bonus for staff getting “good” in their appraisal to 1.5 months from three months the year before at a time when it is starting to see stiffer competition locally.

Staff getting “outstanding” appraisal stand to receive up to three times their monthly pay cheque for their 2013 performance.

The bonus slash comes at a time when AirAsia, for the first nine months ended Sept 30, 2013, saw a strong revenue stream but a big dip in its net profit due to foreign exchange losses on borrowings.

The budget airline saw its yield drop 5.7% year-to-date as both Air- Asia and Malaysian Airline System Bhd (MAS) “embarked on an aggressive capacity expansion to boost topline and achieve economies of scale amid heightening competition driven by Malindo Air’s debut”, according to a sector report by RHB Research Institute Sdn Bhd dated Dec 16.

AirAsia founder and major shareholder Tan Sri Tony Fernandes made the bonus announcement at the company’s annual dinner for the Malaysia- based staff at Sepang, Selangor, last week.

When asked about the slash in bonus payout, the company declined to comment. AirAsia posted a net profit of RM198.6 million on the back of RM3.84 billion in revenue for the first nine months ended Sept 30, 2013. For the same period in 2012, it posted a revenue of RM3.59 billion and a net profit of RM486.2 million.

On its part, loss-making national airline MAS did not award any staff bonus last year and this year. MAS posted a net loss of RM830.2 million on the back of RM11.22 billion in revenue for the first nine months ended Sept 30, 2013, with its group CEO Ahmad Jauhari Yahya expecting the airliner to become profitable by the end of 2014.

Regionally, Cathay Pacific Airways had recently announced that it will award a pay increase to eligible Hong Kong based employees for 2014.

The Hong Kong-based carrier will also provide a discretionary bonus payment for 2013, based on one month’s salary, to eligible staff in their December salary payment.

“While our business has seen some improvement compared to the previous year, 2013 has still been a challenging year for our airline,” its CEO John Slosar said in a recent media statement.

In its report on the aviation sector, RHB Research noted that it has been a challenging year for Malaysian carriers.

“Competition will remain challenging in 2014 but less severe in our view, as Malindo Air has opted to take a more conservative expansion strategy, which bodes well for Air- Asia and MAS,” it said.

Pelancong asing mahu terbang terus ke Langkawi

Berikut ialah artikel semalam (15 Dec 2013) berkenaan ketiadaan penerbangan antarabangsa terus ke Langkawi.

Isu ketiadaan penerbangan terus berjadual dari negara luar ke Langkawi perlu diatasi bagi menjadikan pulau peranginan itu sebagai antara destinasi pelancongan utama dunia.

   
Jika dibandingkan dengan pulau-pulau di selatan Thailand dan Pulau Bali di Indonesia, ramai pelancong asing mengakui Langkawi lebih baik tetapi mereka memilih untuk melancong ke Bali atau pulau-pulau di Thailand kerana adanya penerbangan terus dari negara mereka.  
  
Ketika ini penerbangan terus dari negara luar ke Langkawi hanyalah dari Singapura.
  
Ketua Pegawai Eksekutif Lembaga Pembangunan Langkawi (Lada), Tan Sri Khalid Ramli berkata, pihaknya telah berbincang dengan banyak pihak seperti Malaysia Airlines (MAS), Malaysia Airports Holdings Berhad (MAHB) dan kerajaan tentang pentingnya penerbangan terus berjadual kepada industri pelancongan di Langkawi.
  
[ http://www.lada.gov.my/v2/ ]

 "Ketika ini hanya ada penerbangan sewa khas. Banyak pelancong asing mahukan penerbangan terus. Saya pergi ke Korea, mereka di sana memang mahu ke Langkawi tetapi mahukan penerbangan terus.  

"Tahun lepas MAS buat tiga penerbangan sewa khas (dari Korea), semua penuh. Kesalinghubungan ini penting. Tahun ini ada 32 penerbangan sewa khas tetapi yang kita mahukan penerbangan berjadual," katanya kepada pemberita semasa Program Kembara Riadah Lada Bersama Media 2013 di sini baru-baru ini.
  
Katanya selain itu, pintu masuk ke Langkawi melalui Jeti Kuah juga akan dinaik taraf bagi memastikan perkhidmatan feri dapat dilakukan dengan lebih baik untuk menampung kehadiran pelancong yang lebih ramai.
  
Beliau berkata bagi memastikan kehadiran pelancong ke Langkawi terus meningkat, jumlah bilik penginapan dan hotel perlu dipertingkatkan kerana ketika ini hanya ada kira-kira 8,000 bilik penginapan.
  
"Kita nak banyakkan bilik..untuk mewujudkan penawaran dan permintaan. Kita juga nak banyakkan hotel empat bintang, lima bintang. Banyak yang cakap nak datang Langkawi tetapi bilik penuh (pada musim kemuncak). Bali pun ada 50,000 bilik, bilik sentiasa ada untuk pelancong," katanya.
  
Sementara itu, Khalid berkata walaupun Langkawi mempunyai kemudahan infrastruktur yang baik untuk pelancong, aspek perkhidmatan dan pengalaman buat pelancong juga perlu ditekankan jika mahu mencapai sasaran Pelan Tindakan Pelancongan Langkawi (2011-2015) untuk menjadikan Langkawi antara destinasi pelancongan utama di dunia.
  
"Kalau lihat di sini (Koh Lipe), jeti tak ada...sedangkan punya banyak kapal dan bot. Pelancong terpaksa harung sendiri air untuk ke chalet. Sebenarnya ini yang dikehendaki pelancong. Ini semua kenangan untuk pelancong," katanya.

- Bernama

Sumber : Sinar Harian http://www.sinarharian.com.my/nasional/pelancong-asing-mahu-terbang-terus-ke-langkawi-1.230887

12 success strategies of AirAsia boss Tony Fernandes

Hi Friends,

I had permission from Mr. Wilson Lee Flores who written about "12 success strategies of AirAsia boss Tony Fernandes"  in Philippine Star (www.philstar.com) to share be shared in my blog.

From left: AirAsia boss Tony Fernandes: “In AirAsia we consider ourselves basically a dream factory … where people can pursue their passion.” Fernandes’ business partner, AirAsia Zest chairman Alfredo “Fred” Yao, Joy D. Caneba, chief operating officer of AirAsia Zest

 

We are what we repeatedly do. Excellence, then, is not an act, but a habit.  —Aristotle
I fly because it releases my mind from the tyranny of petty things. —Antoine de Saint-Exupery
MALAYSIA — Congratulations to AirAsia Group boss Tony Fernandes of Malaysia and his business partner, the Philippines’ undisputed “Juice King” Alfredo “Fred” M. Yao. On Dec. 7, I was one of the guests on the inaugural flight Z2 511 of budget airline AirAsia Zest from Manila’s Ninoy Aquino International Airport Terminal 4 to Miri City in the Sarawak state of Malaysia, which took only two hours and 20 minutes.

Manila is the second international direct flight destination for Miri City, the first being direct flights to Singapore. AirAsia Zest chief operating officer Joy Caneba said this new flight route is not only significant for tourism and trade, the four flights every week will help make traveling so much easier for numerous overseas Filipino workers in east Malaysia and Brunei.

United Daily News publisher Sim Yong Liang said Miri City is an ideal, affordable, fun, relaxing and safe tourist destination due to its lush primary forests ideal for jungle trekking, like Niah national park, with its prehistoric human remains, and the UNESCO World Heritage site Mulu Caves, Lambir Hills waterfalls and wildlife, scuba diving, delicious food, colorful and diverse cultures and different ethnic groups.

 

How Asia’s biggest budget airline was built

Who is 49-year-old Tan Sri Anthony Francis “Tony” Fernandes, who has built the publicly listed AirAsia Group into Asia’s largest low-cost airline, with over 120 destinations servicing over 220 million passengers?

AirAsia has been named the “World’s Best Low Cost Airline” in the annual World Airline Survey by Skytrax for five consecutive years from 2009 to 2013. What are his success strategies? Here is our list based on interviews and some research, not in any order:

A good grasp of finance — Similar to Megaworld’s Andrew Tan, Fernandes is an accountant by training and good at numbers. Educated at the London School of Economics, from 1987 to 1989 he worked as the financial controller of British tycoon Richard Branson’s Virgin Records in London. He is from Malaysia’s ethnic Indian minority, with ancestral roots in India’s former Portuguese colony of Goa, which explains his Portuguese-sounding surname.  Fernandes was formerly Southeast Asian regional vice president for Warner Music Group from 1992-2001. No need to become accountants, but we all need a good understanding of accounting and finance.

Determination — During a speech at the Sabah International Business Luncheon Talk 2012, Fernandes was quoted by the Borneo Post as saying nothing is impossible to achieve as long as there is determination. He turned around an unprofitable and small airline company with only two airplanes to one that now has a 160-strong fleet of aircraft in only 12 years!

Do not fear failure — “I don’t care about failing because I do not want to sit down in my older years and say, ‘How come I didn’t try?’ So we did and Malaysia is the country which allowed four Malaysians to go out and make their dreams come true,” Fernandes said.

Take care of key assets, your people — One of Fernandes’ strengths is his caring for and nurturing good employees. He sees people as the “key asset” of any business and hopes to help develop their full potential, passions and dreams. His business offices have no walls and he seeks ideas from his staff. On Dec. 12, Fernandes gave 263 Chopard watches totaling five million ringgit as gifts to 263 staff members who’ve been with the company 10 years. Chopard is a 153-year-old Swiss luxury watch brand. Also, after typhoon Yolanda destroyed Tacloban City, Fernandes reportedly sought out one of his employees whose home was wiped out and I heard the tycoon will help rebuild the house.

Branding — JG Summit Holdings founder John Gokongwei Jr. years ago told me that earning profits is not enough in business, that it is important to create a brand or brands. One believer in the power of brands is Tony Fernandes. He said it took him seven years to consciously and consistently build up the AirAsia brand name and logo as distinct and internationally known.

Marketing — Tony Fernandes invests in and excels in marketing. He said: “If you have a great product but no one knows about it, it’s history.” Fernandes reminds me of his former boss, Virgin Group’s colorful Richard Branson and America’s high-profile realty developer Donald Trump. Like Trump, Fernandes this year hosted the Asian version of the TV series The Apprentice Asia, with the winner being Filipino UP Diliman economics graduate Jonathan Allen S. Yabut, who is now also chief marketing officer of AirAsia Zest.

Support from the government — As in most societies, entrepreneurs cannot go against the government but need their support. Fernandes got his break in 2001 when then Malaysian Prime Minister Dr. Mahathir Mohamad heard of his dream to start an airline and advised him to just buy the heavily in-debt, government-linked AirAsia. Fernandes mortgaged his house and got personal savings to buy this firm with two old jets and US$11 million worth of debt. He bought the company for one ringgit (about 26 US cents). After he turned around AirAsia, in 2003 Fernandes lobbied Dr. Mahathir to raise the “Open Skies” idea with leaders of Thailand, Indonesia, and Singapore, leading to these nations giving AirAsia and other budget airlines landing rights.

Use digital technology — Fernandes believes in using digital technology for his businesses. Much of his business comes from AirAsia.com. In fact, one unique thing about AirAsia flights is its inflight magazine Travel 3Sixty, which has this reminder: “Touch me, feel me and flip me over, but you can’t take me home. Read me online.” I think Fernandes isn’t scrimping on publishing costs, it is part of his clever marketing strategy to make passengers discover and enjoy his website.

Generosity — Fernandes is legendary for his personal and corporate generosity. He gives people big gifts, not only to generate loyalty to the business, but he is also generous in philanthropy, for example, his relief assistance to typhoon Yolanda victims here in the Philippines. His AirAsia Foundation also recently supported the social enterprise Rags2Riches led by Reese Fernandez-Ruiz of the Philippines. Rags2Riches is a genuine NGO helping underprivileged Filipino artisans transform their lives and turn scrap into high-fashion bags and other items.

Passion — Passion seems to be a common denominator among achievers in business, the arts, sports and other fields. Tony Fernandes hires people with passion. He is exceptionally passionate, not only about his firms, charities and employees, but also about sports. He owns a football team in England, an F1 car racing team and is a major supporter of Asia’s biggest mixed martial arts sport, the OneFC.

Bold vision — Tony Fernandes has a bold, global and long-range vision for his various companies. As a child, he dreamt of three things: running an airline, owning an English football club and owning a Formula One racing team.

Dynamic corporate culture — Fernandes said: “In AirAsia we consider ourselves basically a dream factory. We deliberately decided that we wanted a company where people can pursue their passion and we wanted to make use of all the talent that we have in-house.  The culture that we have stems from the fact that we want openness and we want people to be creative and passionate about what they do. In order to do that, we’ve got to inspire them.”

* * *

Thanks for your feedback! E-mail willsoonflourish@gmail.com or follow WilsonLeeFlores on Twitter, Facebook and http://willsoonflourish.blogspot.com/.


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Credit to Mr. Wilson Lee Flores & The Philippine Star
Source : http://www.philstar.com/business-life/2013/12/16/1268045/12-success-strategies-airasia-boss-tony-fernandes 

Tiket Flight Berdasarkan Berat, Pay-by-Weight fares for Airline Ticket

 

Approach baru untuk jual tiket secara Pay-by-Weight fares adalah sangat menarik.

Kata Ketua Pacific airline yang menjadi perintis kepada system bedasarkan berat penumpang menyatakan langkah tersebut sangat berjaya sehingga mereka menambah bilangan kapal terbang.

Samoa Air memperkenalkan world-first system hujung tahun 2012 bila mereka mula mengenakan bayaran tiket berdasarkan berat penumpang, berbeza dengan system lama yang berdasarkan 'seat'.

Ketua Eksekutifnya, Chris Langton menyatakan bahawa caj $0.575 cents atau RM1.83 per kilo terbukti popular dan bermaksud ianya tambang yang murah untuk majority orang.



Copy from their website http://www.samoaair.ws/index.php/booking-2/pay-by-weight  :

Talofa! And welcome to pay by weight and the first Airline in the world to sell your flight by the kilo!

You have probably seen and heard a lot lately about this… well let’s talk airfares!

Heres how it works…

Give us your weight… within a kilo or two would be fine, then tell us how much baggage you want to take, you can take as many bags as you like but just give us the intended total of your baggage in kilos (a kilo is 2.2 pounds)
We or the system will add all of this together and charge by the kilo against the sector fare which is always in our local currency (the Samoan Tala) and that is your total airfare… simple
On payment you will have a page to download and bring with you when you check in…
 If you are travelling as a group and paying as one then follow the same process for each member and again the system will add all the weights and calculate the total cost based on the kilo rate for the sector…

What do we do…?

Well by knowing your weights we can make some arrangements for the best seat for you and your ease of travel and if we can get you more leg room and a more spacious seating then we will…
We weigh everything. We don’t use “standard weights” we use real weights. Real weights are for real people..

Why Pay By Weight…?

Aircraft can only provide a certain amount of weight on each and every sector for us to sell, so our commodity is weight!
We gear our price per kilo by working it to pay for the sector, our objective is to carry the full payload – and give everyone equal comfort and to maximise our efficiency so we can offer lower rates in the future…
So the more we know about actual weight the more efficient we can be at reaching the target then… we can start to bring our cost per kilo down… so you get the benefit of the best price we can deliver for anyone needing to send weight (either cargo or passengers) on any of our sectors and what’s more because you book it on – it travels!

How fair is pay by weight…?

It’s the fairest of any system… not that there are a lot of systems around. Think equality of purchase. Think no discrimination. Think one price for all because a kilo is a kilo is a kilo… think that you only pay for what you carry and everyone pays for what they use (which is the dreaded kilo or pound if you prefer)…

How about space and a comfy seat and some leg room… I just paid a lot for my weight…

We know that weight in advance so we can place you where we can at least try to get you space and a seat which is comfortable and we can do that by removing seats, increasing pitch between rows, and leaving areas unoccupied – and if you nominate a companion we know their weight and we can try to give you the combination you deserve… and for the larger and heavier we will try to give you space adjacent…

What about Families...?

Well… no more paying for seats for the kids at adult seat fare prices or half adult seat fare prices… just total up their individual weights and they get their seats at the same per kilo rate as everyone else on the aircraft pays… check it out… how fair is that… remember that we always have seats but it’s all about weight…

So… how about cargo or unaccompanied baggage...

With us you can book it onto any particular flight… and it goes! Cargo rates are the same as passenger rates because a kilo…is a…. and you know the rest!
The only addition to cargo fees is if an item is in need of special handling then an appropriate fee is added.. but our aim is to minimise that part to actual costs.. I.e. for a Surfboard its $10 tala per board, plus the per kilo weight for the whole pack…

So…how can we help you to help us..

Just give this a go…we want to bring back the enjoyment in air travel.. we want to reinvent ways to make air travel an experience which you can still look forward to… and the greater part of that is staff who really concern themselves with your welfare… on and off the aircraft..
Welcome to our home…and yours...

SAMOA AIR… A WORLDS FIRST!

The Skys the Limit

About Samoa Air :

Samoa Air is a small airline from Samoa that operates scheduled flights between the domestic islands as well as to American Samoa. It also provides charter flights and medical transfer flights.

Foto :
precisionnutrition.com
http://intransit.blogs.nytimes.com

Sumber : 
The Star, 12 Dec 2013
The Telegraph.co.uk http://www.telegraph.co.uk/travel/travelnews/10510159/Pay-as-you-weigh-airline-expands.html

Air France to increase KL-Paris frequency

Happy faces: (From left) Air France-KLM general manager Jurriaan Stelder, French Ambassador to Malaysia Martine Dorance, Roux, country manager Estee Ng and employee Angie Ng posing for a photo during the press conference.

 

PETALING JAYA: Malaysians appear to be increasingly drawn to the world’s most romantic city as proven by the popularity of Air France’s Kuala Lumpur-Paris route.

Air France KLM senior vice-president Patrick Roux said that since the route’s launch in April, the response to the service had been “extremely positive”.

“Due to growing demand, Air France will increase its capacity to 35 business seats, 24 premium economy seats and 250 economy seats from January 2014.

“From June 2014 onwards, Air France will also increase the route’s frequency to four times a week from the current three flights a week,” he told reporters at a press conference here yesterday.

Roux said customers can also look forward to additional seat space, more comfortable seats and better technological devices during their flights.

“The direct flights have created greater economic opportunities, reflected in the increasing demand for travel between the countries,” he said.

Air France-KLM currently offers 17 weekly flights from Malaysia to Europe, including seven with KLM codeshare partner Malaysia Airlines from Kuala Lumpur to Amsterdam.

The airline serves 15 destinations in eight Asian countries – India, China, Japan, Thailand, Singapore, South Korea, Vietnam and Malaysia.

Source : The Star, 13 Dec 2013

Flying Fox Airways Tangguh Penerbangan yang Pertama Ipoh-Medan

Lee (right) said the company was forced to refund at least 17,000 ticket holders. 

IPOH – Penerbangan Flying Fox Airways yang sepatutnya membuat penerbangan pertama Jumaat ini terpaksa ditangguhkan ke tarikh yang belum ditetapkan bagi memberi laluan kepada kerja-kerja menaik taraf landasan Lapangan Terbang Sultan Azlan Shah.

Flying Fox Airways memeterai perjanjian dengan syarikat penerbangan ketiga terbesar di Indonesia, Sriwijaya Air  bagi penerbangan dari Ipoh ke Medan.

Ketua Pegawai Eksekutifnya, Daniel Lee berkata, mereka menerima maklum balas melalui notis kepada juruterbang memaklumkan buat masa ini, hanya kapal terbang jenis ATR-72 (72 tempat duduk) dibenarkan mendarat di lapangan terbang tersebut.

Menurutnya, pihaknya mengutamakan keselamatan penumpang malah perniagaan penerbangan bukan perkara yang boleh dipandang remeh kerana lebih 160 nyawa dibawa.

“Kami akan kerap gunakan landasan itu, jadi dengan kapal terbang jenis Boieng 737-400 (163 tempat duduk) secara tidak langsung tidak boleh mendarat. Kami tidak mahu mengambil risiko.

“Dalam sejarah penerbangan Sriwijaya Air, bagi syarikat yang bekerjasama dengan kami, syarikat penerbangan itu tidak pernah mengalami sebarang kemalangan, jadi kami juga perlu menjaga reputasi tersebut,” katanya pada sidang media di sini.

Hadir sama, Pengurus Projek Flying Fox Airways, Litsa Francis.

Beliau berkata, disebabkan masalah tersebut, mereka terpaksa memulangkan semula semua bayaran tiket ditempah sebelum ini untuk penerbangan pada Disember 2013 dan Januari hingga Jun 2014, bagaimanapun semuanya berjalan lancar.

Katanya, sekiranya sehingga Jun 2014 Flying Fox Airways tidak dibenarkan untuk mendarat dengan Boieng 737-400, pihaknya akan membawa kapal terbang lebih kecil untuk memastikan warga negeri ini masih boleh terbang terus dari Ipoh.

___________
Komen : hairan saya macam mana company ni buat planning sebelum menjual tiket.

Foto : The Malay Mail Online, 12 Dec 2013

Sumber :
http://www.sinarharian.com.my/mobile/edisi/penerbangan-ditangguh-sementara-waktu-1.229768
http://www.themalaymailonline.com/malaysia/article/flying-fox-airways-grounded

Malindo Air upbeat on flying 3 million passengers in 2014

The air carrier is upbeat on its projection for next year due to increase in capacity and soaring demand for air travel to and from Malaysia.

Malindo Air’s chief executive officer Chandran Rama Muthy said the hybrid airline is aiming to fly three million passengers in 2014, a target driven by increasing capacity and upbeat demand for air travel to and from Malaysia.
Chandran said although the airline is hardly a year old, it has generated great confidence in its first 260 days in operation with 800,000 passengers. He estimates 150,000 will fly Malindo Air in December alone.
He said the airline is expecting delivery of up to 15 new aircraft in 2014 to cater for new destinations and increased flights.
“We are looking to take delivery of seven ATR turboprops while the remainder will be Boeing aircraft.
With the turboprops, we will be adding frequencies to some key domestic routes such as Penang, Kota Baru and Johor Baru.
“We have also applied to fly to Singapore. If the approval is granted, we will be flying to Singapore from Subang airport,”said Chandran. He said to ensure better network coverage for its customers, Malindo Air will shift its focus towards the international air travel market from domestic skies.
According to Chandran, the airline will next year focus more on rationalising its network, marketing and building the load factor and passenger volume.
He said the airline has set aside RM10 million to spend on marketing and promotional initiatives next year.
“After India, we will pause for a while before announcing our next destination, to justify the economies of scale to ensure cost efficiency in the company.
“Our real agenda of putting Malaysia as a transit hub is getting into place. The only missing piece in the puzzle is China.
But that (China routes) is not for now,” he said.
The carrier currently serves Bangladesh and Indonesia, beside Malaysian domestic routes, using nine aircraft (six Boeing 737-900s and three ATR 72-600s), all leased from its parent Lion Air. Its maiden flight to India will be launched at the end of this year.
Since its launch early this year, Malindo Air has set a target of taking delivery of 10 new aircraft every year and to have a fleet of 100 aircraft within the next 10 years.
The Lion Air group, controlled by billionaire Rusdi Kirana, is Indonesia’s biggest airline with over 50% market share there.
Last March, Lion Air’s yet to- be delivered planes totalled 600 when it inked a RM79.2 billion deal to purchase 234 Airbus aircraft. The airline has a similar giant aircraft deal with Boeing.
The aircraft are not only for Lion Air but also for its other airlines such as Malindo Air, in which it has a 49% stake. The remaining stake is owned by aircraft maintenance specialist National Aerospace and Defence Industries Sdn Bhd.


By P Prem Kumar

Source :
Malaysian Reserve, 12 Dec 2013
http://www.freemalaysiatoday.com/category/business/2013/12/12/malindo-air-upbeat-on-flying-3-million-passengers-in-2014/