Lion Air will begin flying from the KL International Airport to Jakarta daily from June 29.
Its president director Rusdi Kirana said Lion Air would be introducing its new Boeing 737-900ER series with a maximum capacity of 215 economy class seats to ply the route.
“Although Lion Air is a low fare airline, we will operate from the main terminal building of KLIA which will provide aerobridge services to ensure passenger comfort.
“We are also providing free baggage allowance of up to 20kg per passenger for check-ins and 7kg for hand luggage. Passengers can also pre-assign their seats at check-in desk or use our web check-in facility to reserve their seats,'' he told StarBiz.
Lion Air is the largest airline in Indonesia. Its parent company PT Lion Mentari Airlines recently entered into a joint agreement with Berjaya Air Sdn Bhd to operate, manage and develop the business operations of Berjaya Air.
Kirana said the company hoped to capture a big portion of the market here as they offered very attractive fares which start from as low as RM139 nett (one way and inclusive of airport tax and surcharge).
Lion Air has almost 500 departures daily in Indonesia via 150 routes to 61 destinations and the Kuala Lumpur - Jakarta flight would be able to connect passengers with any of its Indonesia domestic flights.
“For now we have only one flight daily with the flight departing from Kuala Lumpur at 1 pm and arriving in Jakarta at 2 pm. The flight will depart from Jakarta at 9.05am and arrive in Kuala Lumpur at 12.05 noon,'' he said.
Lion Air senior manager (Sales and Marketing) Chandran Rama Muthy said Lion Air's fares and services were affordable and gave value for money.
He said Lion Air was the first airline in the world to operate the new Boeing 737-900ER series aircraft.
Source : STAR
[tags : malaysiahotelnews hotels malaysia resorts news travel tourism travel tourism news]
Showing posts with label airlines. Show all posts
Showing posts with label airlines. Show all posts
Wednesday, June 15, 2011
Tuesday, June 14, 2011
MAS Offers 4 Million Seats For 'Global Deals, Dream Getaways'
Malaysia Airlines (MAS) expects four million seats to be offered at various discounts under the second wave "Global Deals, Dream Getaways" promotional campaign beginning today until June 27.
"We are mounting this second wave campaign to give an opportunity for our passengers to fly onboard the A330-300, to selected international destinations, to fly business class to domestic destinations, as well as, enjoy discounts of up to 75 per cent," said its Regional Senior Vice President, Sales, Azman Ahmad at a media briefing here today.
He was optimistic the four million seats on offer would be taken up during this offer period based on the encouraging response received to the maiden five-day campaign held from May 13, forthcoming holidays, and the longer travel period until May 2012.
One hundred and forty-four destinations are up for grabs under the campaign and potential travellers are expected to chose long-haul destinations compared with regional sectors which were the focus of the first campaign.
Azman said for the second wave campaign, the thrust would be the special, all inclusive promotional economy class fares from Malaysia to Tokyo and Osaka starting from RM693.00 one way.
"MAS was offering flights to Japan as part of its initiative to improve air travel between Malaysia and the land of the rising sun after the North Asian country was impacted by the recent natural calamities. We are also partnering Malaysian tour operators who use there fares to offer very attractive packages from Kuala Lumpur, Kuching and Kota Kinabalu to Japan," he added.
These deals are offered by all MAS distribution channels such as the website, www.malaysiaairlines.com; flymas.mobi on mobile; MHbuddy on facebook; MAS' ticketing offices and appointed travel agents.
All promotional airfares are for one-way economy or business class journey on MAS during off-peak period and includes airfare, airport tax, fuel surcharge, insurance and administrative fees.
Source : Bernama
[tags : malaysiahotelnews hotels malaysia resorts news travel tourism travel tourism news]
"We are mounting this second wave campaign to give an opportunity for our passengers to fly onboard the A330-300, to selected international destinations, to fly business class to domestic destinations, as well as, enjoy discounts of up to 75 per cent," said its Regional Senior Vice President, Sales, Azman Ahmad at a media briefing here today.
He was optimistic the four million seats on offer would be taken up during this offer period based on the encouraging response received to the maiden five-day campaign held from May 13, forthcoming holidays, and the longer travel period until May 2012.
One hundred and forty-four destinations are up for grabs under the campaign and potential travellers are expected to chose long-haul destinations compared with regional sectors which were the focus of the first campaign.
Azman said for the second wave campaign, the thrust would be the special, all inclusive promotional economy class fares from Malaysia to Tokyo and Osaka starting from RM693.00 one way.
"MAS was offering flights to Japan as part of its initiative to improve air travel between Malaysia and the land of the rising sun after the North Asian country was impacted by the recent natural calamities. We are also partnering Malaysian tour operators who use there fares to offer very attractive packages from Kuala Lumpur, Kuching and Kota Kinabalu to Japan," he added.
These deals are offered by all MAS distribution channels such as the website, www.malaysiaairlines.com; flymas.mobi on mobile; MHbuddy on facebook; MAS' ticketing offices and appointed travel agents.
All promotional airfares are for one-way economy or business class journey on MAS during off-peak period and includes airfare, airport tax, fuel surcharge, insurance and administrative fees.
Source : Bernama
[tags : malaysiahotelnews hotels malaysia resorts news travel tourism travel tourism news]
Saturday, June 11, 2011
MAS: On a wing and prayer
The short term appears bleak but there are signs that MAS may improve.
The woes of national carrier Malaysia Airlines' are aplenty. They range from an aging core fleet, escalating cost structure, high leasing cost and legacy issues to a network that's not far reaching enough. And these keep coming back to haunt the airline despite its hard-fought efforts to get back on steady ground.
To tackle these issues, it needs nothing less than dynamism. Take for example its recent entry into the much-vaunted oneworld. This should have been done years ago.
It's tough out there factors such as rising oil prices sparked by tensions in the Middle East and the earthquake/tsunami in Japan leave an impact on the global airline industry.
Even so, other airlines are able to report profits. Sadly, MAS once again plunged into the red territory with a RM242mil net loss for the first quarter of the year, shocking many who had thought the worst was over when the carrier reported a RM225mil in net profit for 2010.
“I wish I could say we could have done things differently and the losses had nothing to do with fuel prices but the volatility in fuel prices was a major contributor to our loses,'' says MAS managing director Tengku Datuk Seri Azmil Zahruddin.
To Shukor Yusof, a Singapore-based airline analyst for Standard and Poor's “MAS biggest threat in the last seven to eight years has been AirAsia” and the fact that it is still struggling to overcome legacy issues. “For as long as they do not have a clear vision of where they are headed, they will continue to have issues going forward,'' says Shukor.
The issue is made worse as no one can predict the direction of jet fuel prices. International Air Transport Association (IATA) director general and CEO Giovanni Bisignani says that “remains a concern.'
A Maybank IB analyst adds that MAS needs to sort out its unresolved fundamental issues. “They are doing it but the pace needs to hasten as the world is not waiting for them.''
The question to ask - after a host of revamps and reforms labelled with acronyms such as WAU (Widespread Asset Unbundling), BTP1 (Business Transformation Programme) and BTP2 - what could the airline possibly do - more?
The red ink
Rising jet fuel prices and high leasing made up 58% of total cost that drove MAS into the red in the first quarter. This sent shockwaves to the analysts fraternity.
Of 18 analysts, 12 have a sell call on the stock. Jet fuel raced to US$113 a barrel during the period. MAS hedges 25% of its fuel requirements at US$93 a barrel. Fuel made up 38% of its total cost in the first quarter, aircraft leases 20%, staff cost about 12%-15% and the rest is for maintenance, landing and parking and others.
Its cost per available seat km (CASK) is 8.25 US cents versus SIA's 7.13, and AirAsia's was 4.2 US cents. Even a single cent change can make a difference during turbulent times. MAS is seeking a 15% CASK reduction by 2015.
The airline also added 11% capacity during the year. Had it not, would things have been better? “Unlikely...the fuel pricing would have hit it anyway,'' says an analyst.
Encouraged by the bullish projections that this will be a good year, MAS has added more seats to its network.
“Had we known it (about the tensions in the Middle East that pushed fuel prices and the earthquake in Japan), we would not have put in so much capacity. About 38% of our cost is fuel and with this kind of volatility, we can mitigate but cannot eliminate,'' Azmil says.
It has been a humbling experience. On June 1, MAS was booted out of the MSCI Malaysia Index.
The counter has lost much ground since it released its results closing Friday at RM1.43. Its archrival on the domestic front, AirAsia has also overtaken it in terms of market value at RM8.8bil versus MAS' RM4.8bil.
So, can it keep to its full year projections despite the first quarter blip? “We are on track,'' Azmil says.
Fleet dilemma
Having older planes are one thing but utilitising them to the maximum is another. But here's one of the roots of MAS' headache.
In the past, MAS has been somewhat slow to replace its fleet whenever there was a new generation aircraft launched.
While its rivals would be the first to hop on and make the orders, MAS would take the “wait and see'' approach.
Furthermore, the fuel and maintenance cost of its aging fleet is high. Some attribute this lack of agility then to its dire financial straits.
But that seems to have changed, with Azmil at the helm. The airline has ordered 35 B737-800 and 15 A330-300, some of which have arrived and the bulk coming the next and the following year.
The shift in strategy from being asset light to having a third leased and a third owned is best to balance its portfolio and hopefully it will drive cost down as these are next generation aircraft that are far more fuel efficient than its existing fleet.
“The old ones are sucking too much fuel and does not help yields. Its direct competitors have the latest generation of planes that are much more fuel efficient. Two of the B737-800 that it took delivery of this year are flying 16 hours. That shows there is better utilisation of its fleet to earn better yields,'' says the Maybank IB analyst.
Azmil says many new aircraft are coming into system. “This year, we will see new aircraft coming in and you will see the difference in the economy class and also the front end of the cabin,'' says Azmil.
Next year, MAS will get its long-awaited A380 aircraft but they come years after rivals SIA, Emirates and Qantas. It will certainly lift MAS portfolio of offerings.
Its recent shift in strategy to focus on front end by expanding its portfolio to more market segments is the way to go as MAS would need to bump that up to match the yields enjoyed by SIA.
The yield gap has been widening over the years and some say this is because MAS has been caught up fending off competition on the local front by trying to be both premium and a low cost airlines.
The realisation has set in that a premium product cannot be low cost. So, it now has a portfolio of products offering premium, value (Firefly turboprops) and low cost (Firefly low cost).
Firefly is managed separately though it is a unit of MAS and even SIA is getting directly into the long-haul low-cost market which is competitive as the low-cost carriers are eating into premium airlines' margins.
“Firefly is a bright spot for MAS and will keep improving when it takes more 737-800s. But the revenue contribution isn't that big to MAS overall bottomline. MAS needs to fly more profitable routes especially with the A380s coming in 2012,'' says Shukor.
The brand of choice
One analyst compared air travel withfast-moving consumer goods where there's no loyalty. In this era, airlines need to distinguish themselves from the rest of the pack through right pricing and the soft touch. Also, having a brand new plane gives the perception that it is also safer so that's a factor travellers will consider.
With that, the new planes bode well for MAS. Having the A380, will put MAS in the same ranks as SIA or even Cathay but still, it does not guarantee the loads. With A380, MAS will have to fill over 500 passengers at one go at a time when competition is bursting, not just from the premium carriers but low cost as well which offer business class seats a fraction of the cost.
To address that, the airline is focusing on filling the front end of the cabin.
Although the strategy was crafted recently, the front end loads have picked up, according to MAS senior general manager sales and marketing Datuk Bernard Francis.
The recently launched Global Deals Dream Getaways is showing results and the focus from overdependence on corporate sector has widened.
Internally, the target is 25% which means a RM650mil contribution to earnings. The airline has thus far hit 23%. Average load is about 70% and forward preloads are 18% higher than last year in the second half.
Though MAS flies to many countries, it is hard to match the branding that SIA and Cathay command. This is another issue the national carrier needs to address.
“People rather pay more for the rival planes which are newer, with latest interiors. So, it is a perception of better quality even tough MAS' soft skills are excellent,'' says an analyst.
The change afoot for the airline is not just limited to new aircraft and new seats. It has also started from the first touch point.
MAS is one of the first airlines in the world apart from Delta to use iphones, ipads, Facebook and even Android's as tools to check-in and even buy tickets.
The food offering is changing and it has “chef on call'' for the first class to make sure you get the meal the way you want it. It also offers “ferrero rocher'' which is a premium chocolate as a dessert and it is buying new planes. The only set back - the planes cannot arrive any faster.
The ties that bind
Twelve years and two attempts. That is how long the courtship with oneworld took. MAS was invited 12 years ago but due to technical issues, nothing had materialised.
“The board gave the management up to June to get into an alliance,'' says MAS chairman Tan Sri Dr Munir Majid.
After the first attempt, MAS search continued but its balance sheets did not make it “pretty'' enough to be considered as a member.
What changed this time around was that MAS is looking much better despite its recent quarterly blip. Geographically, it is well located as oneworld needs to get smack into the South-East Asian markets since growth in passenger traffic is expected to be robust in the region.
IATA expects Asia to lead traffic growth. All these had strengthened MAS case. This time, following an invitation, the pact was sealed after a 12-hour meeting over the past weekend. “It is the best fit for us and MAS is the best fit for oneworld,” says Azmil.
The full impact is likely to be felt in 2013.
“But don't expect investors to jump to buy the stock as it will take time before we can see the results. Surely, there will be benefits from ferrying member passengers around and the geographic reach for MAS travellers just gets bigger. More so now, there are more avenues to earn miles for the travellers,'' says an analyst.
Centre for Asia Pacific Aviation analyst Brendan Sobie says MAS is going in the right direction as the alliance helps strengthen its position in Asia and widens its reach.
An analyst remarks that the only reason oneworld is losing to SkyTeam and Star Alliance is that they do not have a representative in SEA. “Now, they do with MAS,” he says. The other factor that could boost traffic is Qantas willingness to work with MAS via oneworld to tap into SEA.
Transformation mode
As rightly pointed out by Azmil, MAS is in transformation mode, no longer turnaround .
“Transformation takes long but it will stick with you versus business turnaround, which is for a short time only,'' he says.
An analyst likes the sound of it: “He is going back to the textbooks and this is something which should have been done 12 years ago.”
More crucially, what does that mean for the consumer? “You will see a very different value proposition from MAS from how you buy tickets, whether you use a website, the call centre, the facebook or the androids to the ipad.
It is a different experience when you get to the airport. We are improving the first and business class and looking to improve the economy offering. We are getting new aircraft and modern products.
“At the end of the day, it is not just a transformation, but we are changing the mindset,'' Azmil says.
Source : STAR
[tags : malaysiahotelnews hotels malaysia resorts news travel tourism travel tourism news]
The woes of national carrier Malaysia Airlines' are aplenty. They range from an aging core fleet, escalating cost structure, high leasing cost and legacy issues to a network that's not far reaching enough. And these keep coming back to haunt the airline despite its hard-fought efforts to get back on steady ground.
To tackle these issues, it needs nothing less than dynamism. Take for example its recent entry into the much-vaunted oneworld. This should have been done years ago.
It's tough out there factors such as rising oil prices sparked by tensions in the Middle East and the earthquake/tsunami in Japan leave an impact on the global airline industry.
Even so, other airlines are able to report profits. Sadly, MAS once again plunged into the red territory with a RM242mil net loss for the first quarter of the year, shocking many who had thought the worst was over when the carrier reported a RM225mil in net profit for 2010.
“I wish I could say we could have done things differently and the losses had nothing to do with fuel prices but the volatility in fuel prices was a major contributor to our loses,'' says MAS managing director Tengku Datuk Seri Azmil Zahruddin.
To Shukor Yusof, a Singapore-based airline analyst for Standard and Poor's “MAS biggest threat in the last seven to eight years has been AirAsia” and the fact that it is still struggling to overcome legacy issues. “For as long as they do not have a clear vision of where they are headed, they will continue to have issues going forward,'' says Shukor.
The issue is made worse as no one can predict the direction of jet fuel prices. International Air Transport Association (IATA) director general and CEO Giovanni Bisignani says that “remains a concern.'
A Maybank IB analyst adds that MAS needs to sort out its unresolved fundamental issues. “They are doing it but the pace needs to hasten as the world is not waiting for them.''
The question to ask - after a host of revamps and reforms labelled with acronyms such as WAU (Widespread Asset Unbundling), BTP1 (Business Transformation Programme) and BTP2 - what could the airline possibly do - more?
The red ink
Rising jet fuel prices and high leasing made up 58% of total cost that drove MAS into the red in the first quarter. This sent shockwaves to the analysts fraternity.
Of 18 analysts, 12 have a sell call on the stock. Jet fuel raced to US$113 a barrel during the period. MAS hedges 25% of its fuel requirements at US$93 a barrel. Fuel made up 38% of its total cost in the first quarter, aircraft leases 20%, staff cost about 12%-15% and the rest is for maintenance, landing and parking and others.
Its cost per available seat km (CASK) is 8.25 US cents versus SIA's 7.13, and AirAsia's was 4.2 US cents. Even a single cent change can make a difference during turbulent times. MAS is seeking a 15% CASK reduction by 2015.
The airline also added 11% capacity during the year. Had it not, would things have been better? “Unlikely...the fuel pricing would have hit it anyway,'' says an analyst.
Encouraged by the bullish projections that this will be a good year, MAS has added more seats to its network.
“Had we known it (about the tensions in the Middle East that pushed fuel prices and the earthquake in Japan), we would not have put in so much capacity. About 38% of our cost is fuel and with this kind of volatility, we can mitigate but cannot eliminate,'' Azmil says.
It has been a humbling experience. On June 1, MAS was booted out of the MSCI Malaysia Index.
The counter has lost much ground since it released its results closing Friday at RM1.43. Its archrival on the domestic front, AirAsia has also overtaken it in terms of market value at RM8.8bil versus MAS' RM4.8bil.
So, can it keep to its full year projections despite the first quarter blip? “We are on track,'' Azmil says.
Fleet dilemma
Having older planes are one thing but utilitising them to the maximum is another. But here's one of the roots of MAS' headache.
In the past, MAS has been somewhat slow to replace its fleet whenever there was a new generation aircraft launched.
While its rivals would be the first to hop on and make the orders, MAS would take the “wait and see'' approach.
Furthermore, the fuel and maintenance cost of its aging fleet is high. Some attribute this lack of agility then to its dire financial straits.
But that seems to have changed, with Azmil at the helm. The airline has ordered 35 B737-800 and 15 A330-300, some of which have arrived and the bulk coming the next and the following year.
The shift in strategy from being asset light to having a third leased and a third owned is best to balance its portfolio and hopefully it will drive cost down as these are next generation aircraft that are far more fuel efficient than its existing fleet.
“The old ones are sucking too much fuel and does not help yields. Its direct competitors have the latest generation of planes that are much more fuel efficient. Two of the B737-800 that it took delivery of this year are flying 16 hours. That shows there is better utilisation of its fleet to earn better yields,'' says the Maybank IB analyst.
Azmil says many new aircraft are coming into system. “This year, we will see new aircraft coming in and you will see the difference in the economy class and also the front end of the cabin,'' says Azmil.
Next year, MAS will get its long-awaited A380 aircraft but they come years after rivals SIA, Emirates and Qantas. It will certainly lift MAS portfolio of offerings.
Its recent shift in strategy to focus on front end by expanding its portfolio to more market segments is the way to go as MAS would need to bump that up to match the yields enjoyed by SIA.
The yield gap has been widening over the years and some say this is because MAS has been caught up fending off competition on the local front by trying to be both premium and a low cost airlines.
The realisation has set in that a premium product cannot be low cost. So, it now has a portfolio of products offering premium, value (Firefly turboprops) and low cost (Firefly low cost).
Firefly is managed separately though it is a unit of MAS and even SIA is getting directly into the long-haul low-cost market which is competitive as the low-cost carriers are eating into premium airlines' margins.
“Firefly is a bright spot for MAS and will keep improving when it takes more 737-800s. But the revenue contribution isn't that big to MAS overall bottomline. MAS needs to fly more profitable routes especially with the A380s coming in 2012,'' says Shukor.
The brand of choice
One analyst compared air travel withfast-moving consumer goods where there's no loyalty. In this era, airlines need to distinguish themselves from the rest of the pack through right pricing and the soft touch. Also, having a brand new plane gives the perception that it is also safer so that's a factor travellers will consider.
With that, the new planes bode well for MAS. Having the A380, will put MAS in the same ranks as SIA or even Cathay but still, it does not guarantee the loads. With A380, MAS will have to fill over 500 passengers at one go at a time when competition is bursting, not just from the premium carriers but low cost as well which offer business class seats a fraction of the cost.
To address that, the airline is focusing on filling the front end of the cabin.
Although the strategy was crafted recently, the front end loads have picked up, according to MAS senior general manager sales and marketing Datuk Bernard Francis.
The recently launched Global Deals Dream Getaways is showing results and the focus from overdependence on corporate sector has widened.
Internally, the target is 25% which means a RM650mil contribution to earnings. The airline has thus far hit 23%. Average load is about 70% and forward preloads are 18% higher than last year in the second half.
Though MAS flies to many countries, it is hard to match the branding that SIA and Cathay command. This is another issue the national carrier needs to address.
“People rather pay more for the rival planes which are newer, with latest interiors. So, it is a perception of better quality even tough MAS' soft skills are excellent,'' says an analyst.
The change afoot for the airline is not just limited to new aircraft and new seats. It has also started from the first touch point.
MAS is one of the first airlines in the world apart from Delta to use iphones, ipads, Facebook and even Android's as tools to check-in and even buy tickets.
The food offering is changing and it has “chef on call'' for the first class to make sure you get the meal the way you want it. It also offers “ferrero rocher'' which is a premium chocolate as a dessert and it is buying new planes. The only set back - the planes cannot arrive any faster.
The ties that bind
Twelve years and two attempts. That is how long the courtship with oneworld took. MAS was invited 12 years ago but due to technical issues, nothing had materialised.
“The board gave the management up to June to get into an alliance,'' says MAS chairman Tan Sri Dr Munir Majid.
After the first attempt, MAS search continued but its balance sheets did not make it “pretty'' enough to be considered as a member.
What changed this time around was that MAS is looking much better despite its recent quarterly blip. Geographically, it is well located as oneworld needs to get smack into the South-East Asian markets since growth in passenger traffic is expected to be robust in the region.
IATA expects Asia to lead traffic growth. All these had strengthened MAS case. This time, following an invitation, the pact was sealed after a 12-hour meeting over the past weekend. “It is the best fit for us and MAS is the best fit for oneworld,” says Azmil.
The full impact is likely to be felt in 2013.
“But don't expect investors to jump to buy the stock as it will take time before we can see the results. Surely, there will be benefits from ferrying member passengers around and the geographic reach for MAS travellers just gets bigger. More so now, there are more avenues to earn miles for the travellers,'' says an analyst.
Centre for Asia Pacific Aviation analyst Brendan Sobie says MAS is going in the right direction as the alliance helps strengthen its position in Asia and widens its reach.
An analyst remarks that the only reason oneworld is losing to SkyTeam and Star Alliance is that they do not have a representative in SEA. “Now, they do with MAS,” he says. The other factor that could boost traffic is Qantas willingness to work with MAS via oneworld to tap into SEA.
Transformation mode
As rightly pointed out by Azmil, MAS is in transformation mode, no longer turnaround .
“Transformation takes long but it will stick with you versus business turnaround, which is for a short time only,'' he says.
An analyst likes the sound of it: “He is going back to the textbooks and this is something which should have been done 12 years ago.”
More crucially, what does that mean for the consumer? “You will see a very different value proposition from MAS from how you buy tickets, whether you use a website, the call centre, the facebook or the androids to the ipad.
It is a different experience when you get to the airport. We are improving the first and business class and looking to improve the economy offering. We are getting new aircraft and modern products.
“At the end of the day, it is not just a transformation, but we are changing the mindset,'' Azmil says.
Source : STAR
[tags : malaysiahotelnews hotels malaysia resorts news travel tourism travel tourism news]
Thursday, May 19, 2011
AirAsia CEO 'Keen' On Operating New AirAsia Singapore Brand
AirAsia's chief executive is "keen" to operate in Singapore, and the Malaysian airline will soon base some aircraft there in a move that may presage an AirAsia Singapore unit launch.
Recent advertisements for cabin crew positions at AirAsia Singapore are hoped to be the first step, Tony Fernandes told Dow Jones Newswires in an interview. AirAsia will be "night-stopping" aircraft there, in order to make morning flights out of the Southeast Asian island nation.
There have been rumors that Australia's Qantas is interested in its low-cost unit, Jetstar, making a similar move into Singapore to save on costs by hiring locally.
Fernandes also said that its two, 49% owned units, AirAsia Thailand and AirAsia Indonesia, remain on track for separate initial public offerings later this year. The pair may go public simultaneously, or Thailand may go first and Indonesia second, depending on a number of factors.
The IPOs come at a good time for AirAsia, he said, as the moves will free up the balance sheet and allow the low-cost airline to launch new AirAsia units in Vietnam and the Philippines in the near term. The CEO said Vietnam's new government is "much more receptive" to the company's ideas on branding and its websites, and Vietnam's tourism industry is growing quickly, so Fernandes doesn't anticipate the problems that caused its first foray into that country to fail.
Fernandes said he was pleased by remarks made earlier Tuesday by the Malaysian prime minister at the Invest Malaysia conference at the New York Stock Exchange, in which the prime minister expressed a desire to make Malaysia the economic center of Southeast Asia.
AirAsia doesn't believe it can beat the market, so it doesn't do much hedging against rising oil prices, he said, and it is currently about 10% hedged at a cost of about $120 a barrel. Similarly, it doesn't hedge much against currencies, and noted that many forecasts call for the Malaysian ringgit, which has risen sharply, to hover in the MYR2.90 to MYR2.95 range to the dollar, near current levels.
Its long-haul international unit, AirAsia X, is slated to announce a pact with General Electric Co.'s (GE) aviation unit on Wednesday. Fernandes didn't want to steal the unit's thunder, but hinted that the pact could involve aircraft engines, a new type of Airbus aircraft AirAsia X hasn't purchased before and new routes for AirAsia X to Europe.
GE lost out on a previous contract to supply AirAsia X airplane engines, and has been aggressively courting AirAsia for new business, he said. GE CEO Jeff Immelt has been "a fantastic friend" of AirAsia.
In U.S. dollars, AirAsia has about $3 billion market capitalization, and posted annual revenue of about $2 billion and earnings of about $400 million, which excludes the contributions of the Thailand and Indonesia units, Fernandes said.
"We've proven the model," he said of the airline that has grown from 2 two planes to around 100 planes, and there is "great upside" for AirAsia, even after the marked increase in its share price, as it continues to extract even more "ancillary" revenue from passengers for things like food and insurance. AirAsia now extracts $16 of such revenue per passenger, up from $5 in the past.
Source : Dow Jones
[tags : malaysiahotelnews hotels malaysia resorts news travel tourism travel tourism news]
Recent advertisements for cabin crew positions at AirAsia Singapore are hoped to be the first step, Tony Fernandes told Dow Jones Newswires in an interview. AirAsia will be "night-stopping" aircraft there, in order to make morning flights out of the Southeast Asian island nation.
There have been rumors that Australia's Qantas is interested in its low-cost unit, Jetstar, making a similar move into Singapore to save on costs by hiring locally.
Fernandes also said that its two, 49% owned units, AirAsia Thailand and AirAsia Indonesia, remain on track for separate initial public offerings later this year. The pair may go public simultaneously, or Thailand may go first and Indonesia second, depending on a number of factors.
The IPOs come at a good time for AirAsia, he said, as the moves will free up the balance sheet and allow the low-cost airline to launch new AirAsia units in Vietnam and the Philippines in the near term. The CEO said Vietnam's new government is "much more receptive" to the company's ideas on branding and its websites, and Vietnam's tourism industry is growing quickly, so Fernandes doesn't anticipate the problems that caused its first foray into that country to fail.
Fernandes said he was pleased by remarks made earlier Tuesday by the Malaysian prime minister at the Invest Malaysia conference at the New York Stock Exchange, in which the prime minister expressed a desire to make Malaysia the economic center of Southeast Asia.
AirAsia doesn't believe it can beat the market, so it doesn't do much hedging against rising oil prices, he said, and it is currently about 10% hedged at a cost of about $120 a barrel. Similarly, it doesn't hedge much against currencies, and noted that many forecasts call for the Malaysian ringgit, which has risen sharply, to hover in the MYR2.90 to MYR2.95 range to the dollar, near current levels.
Its long-haul international unit, AirAsia X, is slated to announce a pact with General Electric Co.'s (GE) aviation unit on Wednesday. Fernandes didn't want to steal the unit's thunder, but hinted that the pact could involve aircraft engines, a new type of Airbus aircraft AirAsia X hasn't purchased before and new routes for AirAsia X to Europe.
GE lost out on a previous contract to supply AirAsia X airplane engines, and has been aggressively courting AirAsia for new business, he said. GE CEO Jeff Immelt has been "a fantastic friend" of AirAsia.
In U.S. dollars, AirAsia has about $3 billion market capitalization, and posted annual revenue of about $2 billion and earnings of about $400 million, which excludes the contributions of the Thailand and Indonesia units, Fernandes said.
"We've proven the model," he said of the airline that has grown from 2 two planes to around 100 planes, and there is "great upside" for AirAsia, even after the marked increase in its share price, as it continues to extract even more "ancillary" revenue from passengers for things like food and insurance. AirAsia now extracts $16 of such revenue per passenger, up from $5 in the past.
Source : Dow Jones
[tags : malaysiahotelnews hotels malaysia resorts news travel tourism travel tourism news]
Tuesday, May 03, 2011
US raises security alert for Americans
Citing the “uncertainty and volatility of the current situation” following the death of al-Qaida leader Osama bin Laden, the US Department of State has issued a global alert warning American citizens against a possible outbreak of anti-US violence worldwide.
“The US Department of State alerts US citizens traveling and residing abroad to the enhanced potential for anti-American violence given recent counterterrorism activity in Pakistan,” the agency’s Bureau of Consular Affairs (BCA) said in a May 1 advisory.
Australia issued a similar warning. In countries with significant Muslim populations, international schools, embassies and other potential targets were putting extra security measures in place in case of reprisals.
Britain confirmed it was taking extra precautions at its embassies around the world and its military bases were on heightened alert.
The global police agency Interpol also called for increased security measures, warning that the death of Bin Laden could provoke reprisal attacks around the world.
Supporters of Bin Laden’s violent campaign took to militant Internet sites to vow revenge.
“The lions will remain lions and will continue moving in the footsteps of Osama. O Allah, America will not enjoy safety and security until we live it in Palestine,” one user wrote on the Shumukh al-Islam forum.
“The celebrations are amusing. Cheer all you want infidel, you only have a limited amount of time in this life in which to do it,” another wrote.
While some experts said that Bin Laden’s death would damage al-Qaida’s brand image, and perhaps lead the organization to fracture still further along geographical lines, most predicted attacks would continue.
“The United States will unfortunately suffer, because jihadists have a tendency to avenge their slain chiefs,” warned Matthieu Guidere, a French academic who specializes in the Arab world.
After the death of the leader of al-Qaida’s group in Iraq, Abu Musab al-Zarkawi, in April 2006, his successor launched a wave of suicide attacks against US and Iraqi targets, Guidere noted.
And although the figurehead of the operation has died in a plush Pakistani mountain resort and garrison town north of Islamabad, al-Qaida militants in the field have long been acting independently.
“On a tactical level, the death of Bin Laden is not a decisive victory, as for many years he has not been an operational leader and the power has been in the hands of local commanders,” Guidere said.
Lost brand label
Jean-Pierre Filiu, a professor at the Sciences-Po school in Paris and author of a book on al-Qaida, said Bin Laden’s death would accelerate the group’s existing division into separate fighting entities.
“Osama bin Laden’s leadership was in truth ideological. He was the only one able to unite all the disparate groups around the world,” said antiterrorist judge Marc Trevidic, saying al-Qaida had lost a brand label.
Nevertheless, Frank Faulkner, a senior lecturer in sociology and terrorism studies at the University of Derby in Britain, said that revenge attacks were inevitable.
“It’s just a case of when and where,” he said.
Extra vigilance
Interpol secretary general Ronald Noble urged “extra vigilance” from “law enforcement authorities to a heightened terror risk from al-Qaida affiliated or al-Qaida inspired terrorists as a result of Bin Laden’s death.”
“The world’s most wanted international terrorist is no more,” Noble said in a statement issued by his office.
“But the death of Bin Laden does not represent the demise of al-Qaida affiliates and those inspired by al-Qaida, who have and will continue to engage in terrorist attacks around the world,” he said.
“We therefore need to remain united and focused in our ongoing cooperation and fight, not only against this global threat but also against terrorism by any group anywhere,” he added.
Noble said Interpol, a global coordinating body based in France that works with national police forces in 188 member states, was “on full alert for acts of retaliation should al-Qaida try to prove they still exist.”
Limit travel, avoid rallies
The BCA strongly urged Americans “in areas where recent events could cause anti-American violence to limit their travel outside of their homes and hotels and avoid mass gatherings and demonstrations.”
US citizens should also “stay current with media coverage of local events and be aware of their surroundings … US citizens abroad are urged to monitor the local news and maintain contact with the nearest US embassy or consulate,” said the travel alert, which expires on Aug. 1.
It noted that “media coverage of local events may cause family and friends to become concerned for their loved ones traveling and residing abroad.”
“We urge US citizens to keep in regular contact with family and friends,” said the BCA.
The state department said US embassy operations in affected areas would continue to the extent possible under the constraints of any evolving security situation.
“US government facilities worldwide remain at a heightened state of alert. These facilities may temporarily close or periodically suspend public services to assess their security posture. In those instances, US embassies and consulates will make every effort to provide emergency services to US citizens,” it said.
On Monday, Rebecca B. Thompson, spokesperson of the US embassy in Manila, did not comment on the travel alert.
Instead, Thompson referred the Philippine Daily Inquirer to the BCA website —www.travel.state.gov— which she said “has the most up-to-date information.”
NAIA alert
The Manila International Airport Authority (MIAA) has placed four terminals of the Ninoy Aquino International Airport (NAIA) under “heightened alert” status following Bin Laden’s death.
In a May 2 memorandum, Vicente Guerzon Jr., MIAA assistant general manager, said the move was necessary “as a precautionary measure to ensure the security and safety of airport users, as well as protect airport infrastructure.”
Guerzon said the following security measures shall be immediately implemented at NAIA Terminals 1 to 4:
• Strict access control procedures for both personnel and vehicles.
• Rigid inspection of airline passengers and cargo at security checkpoints.
• Intensified police visibility as well as K-9 paneling at the terminals.
• Maximized deployment of patrol vehicles at aircraft movement areas and airport perimeter.
• Intensified intelligence and monitoring operations as well as networking with other security units.
Guerzon said “matters that may affect smooth airport operations must be brought to the immediate attention of MIAA General Manager Jose Angel Honrado.”
Source : Inquirer
[tags : malaysiahotelnews hotels malaysia resorts news travel tourism travel tourism news]
“The US Department of State alerts US citizens traveling and residing abroad to the enhanced potential for anti-American violence given recent counterterrorism activity in Pakistan,” the agency’s Bureau of Consular Affairs (BCA) said in a May 1 advisory.
Australia issued a similar warning. In countries with significant Muslim populations, international schools, embassies and other potential targets were putting extra security measures in place in case of reprisals.
Britain confirmed it was taking extra precautions at its embassies around the world and its military bases were on heightened alert.
The global police agency Interpol also called for increased security measures, warning that the death of Bin Laden could provoke reprisal attacks around the world.
Supporters of Bin Laden’s violent campaign took to militant Internet sites to vow revenge.
“The lions will remain lions and will continue moving in the footsteps of Osama. O Allah, America will not enjoy safety and security until we live it in Palestine,” one user wrote on the Shumukh al-Islam forum.
“The celebrations are amusing. Cheer all you want infidel, you only have a limited amount of time in this life in which to do it,” another wrote.
While some experts said that Bin Laden’s death would damage al-Qaida’s brand image, and perhaps lead the organization to fracture still further along geographical lines, most predicted attacks would continue.
“The United States will unfortunately suffer, because jihadists have a tendency to avenge their slain chiefs,” warned Matthieu Guidere, a French academic who specializes in the Arab world.
After the death of the leader of al-Qaida’s group in Iraq, Abu Musab al-Zarkawi, in April 2006, his successor launched a wave of suicide attacks against US and Iraqi targets, Guidere noted.
And although the figurehead of the operation has died in a plush Pakistani mountain resort and garrison town north of Islamabad, al-Qaida militants in the field have long been acting independently.
“On a tactical level, the death of Bin Laden is not a decisive victory, as for many years he has not been an operational leader and the power has been in the hands of local commanders,” Guidere said.
Lost brand label
Jean-Pierre Filiu, a professor at the Sciences-Po school in Paris and author of a book on al-Qaida, said Bin Laden’s death would accelerate the group’s existing division into separate fighting entities.
“Osama bin Laden’s leadership was in truth ideological. He was the only one able to unite all the disparate groups around the world,” said antiterrorist judge Marc Trevidic, saying al-Qaida had lost a brand label.
Nevertheless, Frank Faulkner, a senior lecturer in sociology and terrorism studies at the University of Derby in Britain, said that revenge attacks were inevitable.
“It’s just a case of when and where,” he said.
Extra vigilance
Interpol secretary general Ronald Noble urged “extra vigilance” from “law enforcement authorities to a heightened terror risk from al-Qaida affiliated or al-Qaida inspired terrorists as a result of Bin Laden’s death.”
“The world’s most wanted international terrorist is no more,” Noble said in a statement issued by his office.
“But the death of Bin Laden does not represent the demise of al-Qaida affiliates and those inspired by al-Qaida, who have and will continue to engage in terrorist attacks around the world,” he said.
“We therefore need to remain united and focused in our ongoing cooperation and fight, not only against this global threat but also against terrorism by any group anywhere,” he added.
Noble said Interpol, a global coordinating body based in France that works with national police forces in 188 member states, was “on full alert for acts of retaliation should al-Qaida try to prove they still exist.”
Limit travel, avoid rallies
The BCA strongly urged Americans “in areas where recent events could cause anti-American violence to limit their travel outside of their homes and hotels and avoid mass gatherings and demonstrations.”
US citizens should also “stay current with media coverage of local events and be aware of their surroundings … US citizens abroad are urged to monitor the local news and maintain contact with the nearest US embassy or consulate,” said the travel alert, which expires on Aug. 1.
It noted that “media coverage of local events may cause family and friends to become concerned for their loved ones traveling and residing abroad.”
“We urge US citizens to keep in regular contact with family and friends,” said the BCA.
The state department said US embassy operations in affected areas would continue to the extent possible under the constraints of any evolving security situation.
“US government facilities worldwide remain at a heightened state of alert. These facilities may temporarily close or periodically suspend public services to assess their security posture. In those instances, US embassies and consulates will make every effort to provide emergency services to US citizens,” it said.
On Monday, Rebecca B. Thompson, spokesperson of the US embassy in Manila, did not comment on the travel alert.
Instead, Thompson referred the Philippine Daily Inquirer to the BCA website —www.travel.state.gov— which she said “has the most up-to-date information.”
NAIA alert
The Manila International Airport Authority (MIAA) has placed four terminals of the Ninoy Aquino International Airport (NAIA) under “heightened alert” status following Bin Laden’s death.
In a May 2 memorandum, Vicente Guerzon Jr., MIAA assistant general manager, said the move was necessary “as a precautionary measure to ensure the security and safety of airport users, as well as protect airport infrastructure.”
Guerzon said the following security measures shall be immediately implemented at NAIA Terminals 1 to 4:
• Strict access control procedures for both personnel and vehicles.
• Rigid inspection of airline passengers and cargo at security checkpoints.
• Intensified police visibility as well as K-9 paneling at the terminals.
• Maximized deployment of patrol vehicles at aircraft movement areas and airport perimeter.
• Intensified intelligence and monitoring operations as well as networking with other security units.
Guerzon said “matters that may affect smooth airport operations must be brought to the immediate attention of MIAA General Manager Jose Angel Honrado.”
Source : Inquirer
[tags : malaysiahotelnews hotels malaysia resorts news travel tourism travel tourism news]
Osama revenge fears put world on high alert
Governments and airlines around the world are bracing for a backlash following the killing in Pakistan of Osama bin Laden by US Special Forces.
Interpol has called for increased security measures by national police forces and several countries have responded with extra security measures spanning airports and other public transport systems.
Japan said its military bases are on full alert in case of revenge attacks by bin Laden’s al-Qaida supporters.
A Qantas spokesman said the airline was “closely monitoring the situation and if the security situation changes then we will take appropriate steps”.
While the county celebrated bin Laden’s death, the U.S. Department of State issued warnings for Americans abroad and is asking travellers to be vigilant. Britain and Australia have issued similar warnings.
“The terrorists almost certainly will attempt to avenge him (bin Laden), and we must – and will – remain vigilant and resolute,” said CIA director Leon Panetta.
Authorities in Indonesia are especially wary of reprisals.
Just weeks before Bin Laden’s death, authorities in Pakistan arrested Umar Patek, an Al Qaeda-linked Indonesian militant who for 10 years had been on the run for allegedly helping to build the explosive devices used in the 2002 bombings of nightclubs in Bali that killed 202 people.
Source : TravelMole
[tags : malaysiahotelnews hotels malaysia resorts news travel tourism travel tourism news]
Interpol has called for increased security measures by national police forces and several countries have responded with extra security measures spanning airports and other public transport systems.
Japan said its military bases are on full alert in case of revenge attacks by bin Laden’s al-Qaida supporters.
A Qantas spokesman said the airline was “closely monitoring the situation and if the security situation changes then we will take appropriate steps”.
While the county celebrated bin Laden’s death, the U.S. Department of State issued warnings for Americans abroad and is asking travellers to be vigilant. Britain and Australia have issued similar warnings.
“The terrorists almost certainly will attempt to avenge him (bin Laden), and we must – and will – remain vigilant and resolute,” said CIA director Leon Panetta.
Authorities in Indonesia are especially wary of reprisals.
Just weeks before Bin Laden’s death, authorities in Pakistan arrested Umar Patek, an Al Qaeda-linked Indonesian militant who for 10 years had been on the run for allegedly helping to build the explosive devices used in the 2002 bombings of nightclubs in Bali that killed 202 people.
Source : TravelMole
[tags : malaysiahotelnews hotels malaysia resorts news travel tourism travel tourism news]
Friday, March 25, 2011
MAS aims to be Asia's No.1
MALAYSIA Airlines (MAS), which is now in its transformation phase, is halfway towards becoming Asia's champion in terms of product offering and quality service. Chairman Tan Sri Dr Mohamed Munir Abdul Majid said the national carrier is already Asia's best airline in terms of service and having the world's best cabin crew.
"Our target is to become the number one airline in Asia, with an average fleet age of 5.2 years," he told reporters from selected local media groups in Subang, Selangor, yesterday.
Munir said the airline now has a good balance sheet, cash position and a team led by a chief executive officer (Tengku Azmil Zahruddin) who is professional, passionate, knows the business well, sound financial management and makes strategic decisions.
He said although the rising oil price is a challenge, MAS now has "a stamina" to expand. The airline is expecting delivery of more aircraft including Boeing 738, Boeing 737-800 and Airbus A330-800.
"MAS is in a good position today. We can take on competition," he said.
Munir also said that subsidiary Firefly will will take over MAS' domestic routes. "But don't ask me when. It depends on market dynamics," he added. Domestic and short-haul routes previously bled MAS as they were deemed unprofitable.
He said MAS is not competing directly with the country's low-cost airline, AirAsia Bhd, but "Firefly is supporting MAS in the low-cost segment to maintain the group's passenger load factor".
According to Munir, market dynamics of supply, demand and price will determine whether MAS will continue to provide domestic full-service flights or reduce its frequency. "People would still want premium service on some routes," he said, pointing out that MASwings, which operates turbo-prop aircraft like Firefly, has a business class.
He said MAS will also focus on the maintenance, repair and overhaul (MRO) business. MAS is currently the world's fifth largest provider of third-party MRO.
Munir also rubbished claims that as a government-linked corporation, MAS receives special treatment from the government. "We don't have a seat at the high table as we are a professional lot," he added.
AirAsia X, the long-haul operations of AirAsia, has been seeking rights to routes like Sydney and Jeddah but has not received approval to do so from the government. Munir said MAS' contribution to the country's social and economic development should not be forgotten. The national carrier has also trained and exported many experts in the aviation and MRO industries, he added.
He likened MAS as the first wife, whose contribution to the family has been forgotten, while the AirAsia as the second, younger wife. Describing AirAsia as "a youthful success", Munir said: "They (AirAsia) are wearing red and sitting pretty, while people forget the first wife, who helped raise the children, sending them to school."
On AirAsia X's newly-appointed chairman Tan Sri Rafidah Aziz, he said: "I consider her as a friend. But we have to protect our interests."
Last night, Munir, who has been in the corporate sector for about 33 years, received the Brand Laureate Personality Award 2011.
Source : BusinessTimes
[tags : malaysiahotelnews hotels malaysia resorts news travel tourism travel tourism news]
Monday, February 07, 2011
IATA Statistics Show Increased Demand For Air Travel
The International Air Transport Association (IATA) said demand statistics last year for international scheduled air traffic showed an 8.2 per cent increase in the passenger business and a 20.6 per cent increase in freight.
Demand growth outstripped capacity increases of 4.4 per cent for passenger and 8.9 per cent for cargo, IATA said in a statement here Wednesday.
Average passenger load factor for the year was 78.4 per cent, which was a 2.7 percentage improvement from 2009, while a 5.2 percentage point improvement to 53.8 per cent was recorded on the freight load factor.
"Compared to the pre-recession levels of early 2008, December air travel volumes were four per cent higher.
"Air freight was one per cent higher than pre-recession level, however, volumes have fallen five per cent since the peak of the post-recession inventory re-stocking boom in early 2010," IATA said.
Its Director General and Chief Executive Officer, Giovanni Bisignani said airlines ended the year slightly ahead of early 2008 with only 2.7 per cent profit margin.
"After the biggest demand decline in the history of aviation in 2009, people started to travel and do business again in 2010. The challenge is to turn the demand for mobility into sustainable profit," he said.
It was estimated that the severe weather Europe and North America in December would shaved one per cent off of total traffic demand for the months.
The hardest hit was Europe, which saw December passenger demand growth slow to 3.3 per cent.
Source : Bernama
[tags : malaysiahotelnews hotels malaysia resorts news travel tourism travel tourism news]
Demand growth outstripped capacity increases of 4.4 per cent for passenger and 8.9 per cent for cargo, IATA said in a statement here Wednesday.
Average passenger load factor for the year was 78.4 per cent, which was a 2.7 percentage improvement from 2009, while a 5.2 percentage point improvement to 53.8 per cent was recorded on the freight load factor.
"Compared to the pre-recession levels of early 2008, December air travel volumes were four per cent higher.
"Air freight was one per cent higher than pre-recession level, however, volumes have fallen five per cent since the peak of the post-recession inventory re-stocking boom in early 2010," IATA said.
Its Director General and Chief Executive Officer, Giovanni Bisignani said airlines ended the year slightly ahead of early 2008 with only 2.7 per cent profit margin.
"After the biggest demand decline in the history of aviation in 2009, people started to travel and do business again in 2010. The challenge is to turn the demand for mobility into sustainable profit," he said.
It was estimated that the severe weather Europe and North America in December would shaved one per cent off of total traffic demand for the months.
The hardest hit was Europe, which saw December passenger demand growth slow to 3.3 per cent.
Source : Bernama
[tags : malaysiahotelnews hotels malaysia resorts news travel tourism travel tourism news]
Tuesday, September 28, 2010
Royal Jordanian and MH sign free sale code-share agreement
Royal Jordanian and Malaysia Airline (MH), the national carrier of Malaysia, signed a unilateral free sale code-share agreement, whereby MH is the marketing carrier, placing its code on RJ flights operated on Amman-Kuala Lumpur-Amman sector.
The agreement has been effective since September 1, 2010.
RJ President/CEO Hussein Dabbas, who signed the agreement with MH Managing Director Tengku Dato' Azmil Zaharuddin, said: "The code-share agreement between RJ and MH is a free flow agreement whereby MH may sell unlimited seats on each Amman-Kuala Lumpur-Amman flight.”
Dabbas added: “After resuming its regular flights to the Malaysian capital, Kuala Lumpur, on June 2, after a 7-year suspension in operations between the two countries due to the weak economic feasibility of the route over the past years, this move comes as a result of the economic revival and the growth of commercial activity and tourism between the two countries.
“This will offer new opportunities for passengers and will boost the tourism sector as Malaysia is considered a gateway to Southeast Asia, particularly in the economic field where it will serve the traffic of businessmen and students.”
Royal Jordanian operates three flights a week, on Mondays, Wednesdays and Fridays, using its recently introduced Airbus A330s.
Dabbas added that RJ is also preparing to transform a code-share agreement from bilateral to unilateral with British Airways; it comes after having implemented the Amadeus system in October 2010. Next year, RJ is planning to increase the number of code-share agreements with its oneworld partners.
Currently, Royal Jordanian has marketing alliances, through code sharing, with several international airlines: American Airlines, British Airways, US Airways, Iberia, Malév Hungarian Airlines, Siberia airlines (S7), Tarom, Gulf Air, Syrian Airlines and Yemen Airways.
Zaharuddin expressed satisfaction with the agreement with Royal Jordanian:
“RJ is a highly appreciated airline, and thus clients will enjoy the high-class services RJ offers them on board its aircraft.
“MH guests will enjoy the same services as those provided to the RJ passengers. Crown Class passengers will have the opportunity to benefit from the extended services provided by the operating carrier.”
Thursday, September 23, 2010
AirAsia X optimistic over Tokyo route in December
Long-haul budget carrier AirAsia X will fly to Japan in December, with three non-stop flights a week from KL International Airport to Haneda in Tokyo.
Chief executive officer Azran Osman Rani said considering its status as the world’s largest metropolitan city, Tokyo was an important feeder market for the airline to move into the growing international network.
“The three weekly flights will strengthen our historic business and tourism links with Japan’s commercial centre,” he said.
Azran said he estimated that more than 60% of the passengers between Kuala Lumpur and Tokyo would be first-time visitors, adding that new market segments could be created from the tourism growth.
To mark its new destination, Air Asia X is offering promotional fares for a one-way ticket from Kuala Lumpur to Tokyo from as low as RM99. The tickets will be available from Sept 23 to Sept 26 for travel period Dec 9 to Jul 31, 2011.
The seats are offered on a first-come, first-served basis and tickets are only available online via www.airasia.com and mobile.airasia.com.
Passengers will travel in a brand new A330 aircraft with standard business class “Premium Flat Bed” seats that feature universal power sockets, adjustable headrests and built-in personal utilities, such as tray table, drink holder, reading light and privacy screen.
AirASia X currently flies to destinations in Australia, India, Taiwan, China, Europe and Korea.
Friday, September 17, 2010
AirAsia X opens tickets to Tokyo from next week
Airline will be first foreign low-cost carrier serving Haneda airport from Dec 9
AirAsia X will begin flights to Haneda airport in
The airline plans to mount three weekly flights and it will be the first foreign low-cost carrier serving the airport that is expected to open for international flights in late October.
Asashi newspaper in
AirAsia X chief executive officer Azran Osman-Rani declined to reveal any pricing when contacted yesterday by StarBiz. But the market is abuzz with talk that the introductory price could range from RM99 to RM199.
Azran said that flying to
Three flights per week may be too few for AirAsia X but for now the airline does not have much of a choice.
It is learnt that the Japanese authorities had accorded seven rights and the Malaysian authorities awarded three each to AirAsia X and MAS, and one to Transmile.
“
MAS will introduce three flights a week between Kota Kinabalu and Haneda from Nov 15.
Haneda airport is the main domestic hub for
To beat potential competition from six foreign low-cost carriers from
ANA has inked a deal with
Tuesday, September 14, 2010
MAS to boost its sales with innovative services
NATIONAL carrier Malaysia Airlines is relying on new technological devices such as iPhones, iPads, android and blackberry phones to ramp up its marketing efforts and rake in more sales.
Its senior general manager of commercial strategy Dr Amin Khan said the airline was using innovation to make travel easier and to offer good value.
MAS recently embarked on a three-phased upgrade of its passenger service system (PSS) for a total investment value of RM480 million. MAS' decision to upgrade its PSS, now in the final phase and to be completed in 2013, is to cut cost and drive revenue.
The traditional distribution channels for the airline are travel agents, other airlines and ticketing outlets. However, it has expanded the reach of its distribution by utilising call centres, Internet, mobile and iPad kiosks.
"Instead of just focusing on the marketplace, we are moving into the market space using e-commerce," Dr Amin said. He said the market space will allow the airline to recognise its customers as individuals and give them choices at their own convenience.
With 45 per cent of airline bookings done on the Web (based on an Airline Business report in June), MAS is focused on addressing three basic needs on the Web: giving information, getting a transaction done and providing help.
The airline is also using social networking sites such as Facebook and Flickr to generate news of its offers. Aside from this, Dr Amin said that MAS was the first airline in the world to introduce MHmobile with a complete suite of products.
The airline is also using augmented reality for iPhone users, through the global positioning system (GPS), for its offers on fares.
Among other services it has adopted are the introduction of iPad kiosks for booking and purchasing of tickets.
The airline plans to improve its call centre services by increasing its capacity through cloud computing. It will also introduce Web chat services to guide customers who book tickets online.
In line with innovative services, MAS is also looking at a similar model operated by low-cost carriers, such as unbundling its product offering. Dr Amin said that MAS was considering unbundling its low fares, more so for the MHlow category.
"The unbundling will probably happen for services at the ground level, like, if a customer chooses to select a seat." MAS will not look to unbundling meals, or comfort items like pillows and blankets, he said.
MAS flyers can buy train tickets online
Malaysia Airlines (MAS) passengers can now purchase KL International Airport (KLIA) Ekspres train tickets via online, through the national carrier and MASholiday websites at malaysiaairlines.com and holiday.malaysiaairlines.com.
MAS senior general manager (Commercial Strategy) Dr Amin Khan said via the service which was available since August 23, customers only needed to follow three simple steps -- purchase, print and scan.
"Passengers can now avoid the rush and long queues at the KLIA check-in counters by simply checking in and collecting their boarding pass at the KL Sentral.
"All they have to do is purchase the train ticket through the website, print it from their email and scan the ticket at the gate before taking the train," he said in a statement today.
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"We are constantly looking for ways to provide more convenience to our customers and provide them with seamless connectivity when they travel with us," he added.
Tuesday, September 07, 2010
Airlines leverage on social media sites
As travellers become more Internet and social media-savvy, airlines have started to leverage on social media sites for branding, promotion and marketing.
Airlines including Malaysia Airlines (MAS), AirAsia Bhd, Singapore Airlines, Cathay Pacific and Delta Air Lines are using Twitter, Facebook, YouTube, Flickr and even blogs to market themselves and engage with the public. Some airlines turn their Facebook page into a fan page whereby they can connect with their fans on the Internet. Some promote their business, products, and new offerings on Twitter to reach out to more people.
MAS senior general manager, commercial strategy, Dr Amin Khan said the carrier had a two-pronged approach for its Facebook and Twitter accounts. “For Malaysia Airlines Travel on Facebook, @MAS Twitter account and blogger engagements, our primary objective is to inspire travel by engaging and building a connection with our fans and followers.
Our efforts here are focused on engaging our younger audience and customers, around 20 to 35 years old. This includes promoting our fares and deals, destinations, travel stories and competitions,” he told StarBiz.
Amin said MAS started its social media outreach including the Malaysia Airlines Travel on Facebook in March 2009. “To date, we have more than 125,000 fans on Malaysia Airlines Travel on Facebook and some 16,500 followers on @MAS Twitter account.”
He added that the MH Deals by Malaysia Airlines on Facebook, which started in January, had 37,000 fans and it had 3,500 followers on @MHdeals Twitter account. “We also have 11,500 fans on MH Students Facebook pages. A majority of them are students who are currently studying in
MAS has managed to generate great interest with its lunch hour sales on Facebook. “The idea for the lunch hour sale came from our Facebook fans. We are constantly engaging with them to get their feedback on what they would like to see. We are also planning other promotions according to ticket availability and seasonality,” Amin said.
A quick search on Twitter revealed that AirAsia has one of the most followers on its Twitter account with some 50,086 followers. The budget carrier had previously operated under AirAsiaDotCom on Twitter. However, last Friday it announced to its followers that it had managed to secure back its @AirAsia twitter handler.
AirAsia has 478,708 fans on its main Facebook site. On top of the country specific sites that AirAsia has on Facebook and Twitter, it has a dedicated AirAsia YouTube channel, AirAsia Blog: Just Plane Thoughts and Flickr account as its official gallery of AirAsia pictures.
Media specialists see social media as a great platform to get the online community involved, to motivate them to travel, get them to spread the word on which airline to use.
“Most of these airlines make use of Twitter to introduce new events, offer a limited number of air tickets at discounted prices, etc,” a media specialist said. She added that airlines were beginning to use social media productively. “Facebook is an excellent way to engage customers. And both MAS and AirAsia are doing it well.”
She said both carriers managed to encourage their customers to engage with one another. “They made it easy to access the airlines and build relationships. Potential customers can also ask questions and get help. If their customers are happy, it means returning customers to the carrier.”
She said it was good to note that AirAsia had managed to put links on its websites to generate interest on its Twitter and Facebook pages and vice-versa. “It (AirAsia) manages to interact well on Facebook. Every news item it posts seems to get feedbacks and there are heaps of praises from fans.”
Last month, US-based Delta Air Lines had introduced the Delta Ticket Window, a Facebook application that allows its fans to find, book and share flights via the “Book a Trip” tab on its Facebook Page. The carrier believes it can capitalise on a captive audience given that Facebook is the most trafficked website on its inflight WiFi service. It is a cutting edge offering for the airline which is unparallelled by other airlines.
Asked if MAS would start offering such service, Amin said its offerings would tie in closely with its digital strategy. “For example, we are revamping our MASTraveller portal as part of our strategy to inspire travel. In line with this, our Facebook and Twitter accounts will be promoting destinations and encouraging user-generated content.”
“We also have a social media feature on MHmobile. After a customer books his ticket on flymas.mobi, he will be able to share his itinerary on his own Facebook page, Tripit or Dopplr. This ensures that all his friends are aware of his travel plans, and he is also able to make other travel arrangements such as hotel bookings and car rentals via Tripit or Dopplr,” Amin said.
Amin said all its channels were focused on attracting consumers to its main website, www.malaysiaairlines.com. MAS employee bloggers also share their experiences on its official blog. The carrier has a team managing the Facebook pages and Twitter accounts beside traditional media and other digital initiatives such as the website, applications for our mobile site, flymas.mobi, mobile gadgets and others.
Monday, August 16, 2010
MAS fights for air space with AirAsia
MALAYSIA Airlines (MAS) ramps up flights to Yangon, Myanmar from Kuala Lumpur from September 2. Facing off with AirAsia, MAS will have daily flights, up from its current five weekly flights.
The increase in service frequency follows low-cost carrier AirAsia's new daily flights on the same route on July 20. The latter is offering fares from as low as US$9 per way.
MAS is offering a return fare of US$206 nett to mark the start of the improved frequency. Regular fares, excluding surcharges and taxes, will start from US$279. Meanwhile, Malaysia's move to stop issuing visa-on-arrival (VOA) to tourists from seven countries, including Myanmar, from August 15 is believed to have no impact on Myanmar travellers, said an officer at the Malaysian embassy in Yangon.
He explained that the majority of Myanmar travellers preferred to arrange their visa in advance at the embassy as it is cheaper. VOA at Kuala Lumpur Airport costs RM100 (US$31.40) while a visa obtained from the embassy in Yangon is US$6.
Source : TTG
[tags : malaysiahotelnews hotels malaysia resorts news travel tourism travel tourism news]
Wednesday, August 11, 2010
AirAsia Achieves World Record By Selling 500,000 Seats In 24 Hours
AirAsia Bhd has achieved a world record by selling more than 500,000 seats on the first day of its "Mind Blowing Fare" campaign.
The leading budget airline said it had sold a record-breaking 538,000 seats on the first day of the campaign, which offered RM1 airfare for domestic and international flights.
The ongoing "Mind Blowing Fare" promotion offers RM1 for bookings made from August 10 to 15, 2010, for travel between April 1 and August 11, 2011.
The promotion is available exclusively at www.airasia.com and mobile.airasia.com.
AirAsia also recorded its highest number of seat sales in an hour by selling 36,871 seats, a 47.5 per cent increase from the previous record of 25,000 seats.
In a statement today, the airline said the "Mind Blowing Fare" campaign was the first major promotion under its New Skies booking system.
Group chief executive officer Datuk Seri Tony Fernandes said the successful sale of more than half a million seats in the ongoing promotion showed that the new system was stable and able to efficiently handle massive sales volume.
He said that AirAsia's investment in the new booking engine was clearly paying off and its New Skies had revolutionised Internet bookings.
"We're happy to offer guests the opportunity to grab the special offers under our 'Mind Blowing Fare' campaign. The campaign is especially attractive with festive holidays such as Hari Raya coming up," he added.
Source : Bernama
[tags : malaysiahotelnews hotels malaysia resorts news travel tourism travel tourism news]
The leading budget airline said it had sold a record-breaking 538,000 seats on the first day of the campaign, which offered RM1 airfare for domestic and international flights.
The ongoing "Mind Blowing Fare" promotion offers RM1 for bookings made from August 10 to 15, 2010, for travel between April 1 and August 11, 2011.
The promotion is available exclusively at www.airasia.com and mobile.airasia.com.
AirAsia also recorded its highest number of seat sales in an hour by selling 36,871 seats, a 47.5 per cent increase from the previous record of 25,000 seats.
In a statement today, the airline said the "Mind Blowing Fare" campaign was the first major promotion under its New Skies booking system.
Group chief executive officer Datuk Seri Tony Fernandes said the successful sale of more than half a million seats in the ongoing promotion showed that the new system was stable and able to efficiently handle massive sales volume.
He said that AirAsia's investment in the new booking engine was clearly paying off and its New Skies had revolutionised Internet bookings.
"We're happy to offer guests the opportunity to grab the special offers under our 'Mind Blowing Fare' campaign. The campaign is especially attractive with festive holidays such as Hari Raya coming up," he added.
Source : Bernama
[tags : malaysiahotelnews hotels malaysia resorts news travel tourism travel tourism news]
Thursday, July 15, 2010
AirAsia flew more passengers than MAS last year
Budget airline AirAsia overtook national carrier Malaysia Airlines (MAS) last year in terms of overall passenger volume, the Dewan Rakyat was told Wednesday.
Transport Minister Datuk Seri Kong Cho Ha said AirAsia flew 15.23 million passengers last year compared to the 13.87 million recorded by MAS.
Of the AirAsia passengers, 7.2 million were international passengers while 8.03 million were domestic passengers, he said in a written reply to a question from Loke Siew Fook (DAP-Rasah).
Source : STAR
[tags : malaysiahotelnews hotels malaysia resorts news travel tourism travel tourism news]
Friday, July 09, 2010
Malaysian Airlines-MITM Travel Fair 2010 Expects 60,000 Visitors
The Malaysia Airlines-MITM Travel Fair 2010 is expected to have a visitor turnout of 60,000 with sales turnover exceeding at least RM50 million.
Chairman of Malaysian International Travel Mart (MITM) 2010 organising committee and President of Malaysian Chinese Tourism Association (MCTA), Paul Paw said the event scheduled from August 13 to 15, will be staged at the Mid Valley Exhibition Centre.
"It will bring together tourism products under one roof," Paw said during the soft launch of the Malaysia Airlines-MITM Travel Fair 2010 here Thursday.
He also said that for the first time in the history of MITM travel fair, all booths were sold out in 14 days from the date it opened for registration in mid April this year.
"Over 40 travel agents are participating in the event. Tourism Malaysia has also taken six booths in this fair."
Meanwhile, the director general of Tourism Malaysia, Datuk Mirza Mohammad Taiyab said the Malaysia Airlines-MITM Travel Fair could be a platform to promote tourism in Malaysia particularly among domestic travellers.
"From past experience, it's domestic travellers who had helped to sustain the tourism industry especially during economic crisis," Mirza said.
The government has set the target of positioning Malaysia among the top 10 global tourist destinations by 2015, he added.
Source : Bernama
[tags : malaysiahotelnews hotels malaysia resorts news travel tourism travel tourism news]
Chairman of Malaysian International Travel Mart (MITM) 2010 organising committee and President of Malaysian Chinese Tourism Association (MCTA), Paul Paw said the event scheduled from August 13 to 15, will be staged at the Mid Valley Exhibition Centre.
"It will bring together tourism products under one roof," Paw said during the soft launch of the Malaysia Airlines-MITM Travel Fair 2010 here Thursday.
He also said that for the first time in the history of MITM travel fair, all booths were sold out in 14 days from the date it opened for registration in mid April this year.
"Over 40 travel agents are participating in the event. Tourism Malaysia has also taken six booths in this fair."
Meanwhile, the director general of Tourism Malaysia, Datuk Mirza Mohammad Taiyab said the Malaysia Airlines-MITM Travel Fair could be a platform to promote tourism in Malaysia particularly among domestic travellers.
"From past experience, it's domestic travellers who had helped to sustain the tourism industry especially during economic crisis," Mirza said.
The government has set the target of positioning Malaysia among the top 10 global tourist destinations by 2015, he added.
Source : Bernama
[tags : malaysiahotelnews hotels malaysia resorts news travel tourism travel tourism news]
Wednesday, July 07, 2010
Tuesday, July 06, 2010
Low-cost carriers like AirAsia X versus full-service carriers like SIA
AirAsia Bhd and Qantas Airways Ltd are challenging Singapore Airlines Ltd and other full-service carriers with a low-fare, long-haul business model that has previously failed.
Qantas’s Jetstar unit will add budget long-haul flights from Singapore later this year. The carrier cuts costs by renting movies to passengers and using lightweight equipment to pare fuel usage. AirAsia X, which flew more than 1 million passengers in 2009, squeezes 35% more seats onto its planes than full-service carriers to pare expenses.
The two carriers also have support from existing airlines, with AirAsia X able to access flights to about 70 cities from its Kuala Lumpur hub through cooperation with AirAsia, Asia’s largest budget carrier. These ties may help the long-haul carriers avoid the fate of stand-alones Oasis Hong Kong Airlines Ltd and London-based Zoom Airlines, which both folded in 2008.
“Long haul, low cost is transforming the whole aviation landscape in Asia,” said K. Ajith, an analyst at UOB-Kay Hian Research in Singapore. “Budget carriers may be a force to reckon with in the future because if they have a strong network and are viable, they can potentially lure passengers from established carriers.”
Long-haul discount airlines differ from Southwest Airlines Co and Ryanair Holdings Plc because they offer flights of more than five hours and have premium-class seats. AirAsia X, part-owned by AirAsia, flies twin-aisle Airbus SAS planes to London and Australia, and it’s planning services to Japan and South Korea. Jetstar intends to begin Singapore-Melbourne flights in December followed by services to Auckland in March. It’s also planning flights to European and Asian destinations.
“There seems to be a market for long-haul discount travel if prices are low enough,” said Sean Fenton, who helps manage US$740mil at Tribeca Investment Partners in Sydney. “It’s a threat to the incumbent carriers.”
AirAsia X charges from about RM1,286 for a flight from Kuala Lumpur to Stansted Airport, 12km outside of central London. An economy ticket on Malaysian Airline System Bhd (MAS), the nation’s largest carrier, to Heathrow Airport costs from about RM2,104. Singapore Airlines charges from about S$1,486 (RM3,429) for a Singapore-Heathrow coach-class ticket.
Singapore Airlines serves “different market segments with different service propositions,” Nicholas Ionides, a spokesman, said in an e-mail reply to Bloomberg questions.
MAS doesn’t intend to compete directly with the lowest fares rivals are offering to safeguard margins, chief executive officer Tengku Azmil Zahruddin said in an e-mail. The airline was targeting customers who didn’t make decisions based on price alone, he said.
AirAsia X, which last year had its first annual profit since starting flights in 2007, had gained from AirAsia’s feeder traffic, said chief executive officer Azran Osman Rani. Oasis Hong Kong, which flew to London and Vancouver, and trans-atlantic carrier Zoom, didn’t have similar partners.
Relying on a point-to-point market “will be a real killer because there won’t be enough people flying every day,” Azran said. “That’s why the Oasis of the world really struggled.”
Jetstar, which operates domestic flights within Australia and services to Japan, has code-shares with Qantas and a partnership with Air France-KLM Group, Europe’s largest carrier.
AirAsia X cuts costs by using fewer attendants per flight than full-service carriers because it only loads and serves hot meals that customers have ordered, Azran said. That saves the carrier as much as US$100 per passenger, he said. Jetstar also formed a venture with AirAsia in January aimed at lowering costs for spare parts and ground-handling services.
AirAsia X’s costs were 2.8 cents per available seat kilometer last year, Azran said. Jetstar had costs of 6.8 Australian cents (5.7 cents) in the six months ended December, said chief executive officer Bruce Buchanan. The carrier made twice as much profit as the Qantas mainline business in that period.
Costs at Singapore Airlines, including premium and economy cabins, averaged 8.7 Singapore cents (6.2 cents) last year, according to Bloomberg calculations on figures from the carrier.
Jetstar plans to boost its fleet to about 100 aircraft by 2015 from 65 as of June. AirAsia X aims to increase its twin-aisle fleet to 20 planes from eight over the same period, as it strives to more than triple sales.
Including short-haul routes, budget carriers may account for 30% of Asia-Pacific capacity by 2015 from 20% now, said Derek Sadubin, chief operating officer at the Sydney-based Centre for Asia Pacific Aviation.
Singapore Airlines may be shielded from budget competition by its reliance on premium passengers, who account for about 40% of revenue, said Ng Sem Guan, an analyst at OSK Research Sdn in Kuala Lumpur. “There’s always demand for luxury things such as Mercedes Benz,” he said. Singapore Airlines is “a different animal” from low-cost carriers.”
Travelers now flying economy-class with full-service airlines may also be reluctant to give up frills just for a cheaper ticket, said Rohan Suppiah, an analyst at Kim Eng Securities Pte in Singapore. “Do you really want to sit for hours in a budget configuration?” he said. “This model will probably only appeal to customers who are very price-sensitive.”
Zoom stopped flying in August 2008 about a year after it began London-New York flights, crippled by competition and rising fuel costs. Oasis Hong Kong, which halted services after 17 months of flying, entered liquidation in June 2008 with about a HK$1bil of debts.
Stephen Miller, who was Oasis’s chief executive officer, said there was “great potential in Asia” for low-cost long-haul because of the high costs at full-service carriers.
“But it’s a tough business until you get a name, a certain percentage of the market and a critical mass of aircraft,” he said. — Bloomberg
Source : STAR
[tags : malaysiahotelnews hotels malaysia resorts news travel tourism travel tourism news]
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