Wednesday, October 30, 2013

AirAsia to operate the only direct flight from Kota Kinabalu – Kota Bharu

SEPANG: AirAsia is introducing its 8th domestic route from its second busiest hub in Malaysia – Kota Kinabalu, with the announcement of 3x weekly direct flights from Kota Kinabalu – Kota Bharu, which will commence from 16th November 2013 onwards. 

This new direct flight will further complement AirAsia’s extensive connectivity from East Malaysia to Peninsular Malaysia, with flights every Tuesday, Thursday and Saturday, and will be the sole airline to operate this route in the country.
 
Promotional all-in-fares are from as low as RM99 one way, and the inaugural flight will take off on 16th November and guests are able to travel from then until 5th August 2014 when they book online from now until 15th September 2013 at www.airasia.com

Kenny Wong, Head of Commercial, AirAsia Berhad commented, “There is an increasing trend in those travelling to Kota Bharu from Kota Kinabalu, where they connect via our other hubs such as Johor Bahru & Kuala Lumpur. This new 3x weekly direct flight will be a major convenience factor, and enhance both business & leisure travellers’ numbers into each state, and AirAsia is proud to be the only airline connecting East Malaysia directly to the East Coast of Peninsular Malaysia.

“Furthermore, tourists & business travellers from Chinese destinations such as Hong Kong, Shenzhen, Guangzhou, Hangzhou, as well as Taipei who fly into Kota Kinabalu through AirAsia can now connect directly to Kota Bharu to experience the beauty of Perhentian Islands, or even source for the exquisite batik that are produced in Kelantan,” added Kenny.


Sabahans and those who need to connect via Kota Kinabalu can easily reach the north of Peninsular Malaysia with direct flights to Penang; or to the south with direct flights to Johor Bahru; and now the East Coast of Peninsular with this new direct flight to Kota Bharu. 

AirAsia connects both East Malaysia and Peninsular with 417x weekly flights, and offers the best connectivity within East Malaysia as well.


Stay tuned to AirAsia’s Twitter (www.twitter.com/AirAsia) and Facebook (www.facebook.com/AirAsia) for updates on latest promotions, activities and AirAsia news.

Source: AirAsia | 5 Sept. 2013

Tuesday, October 29, 2013

RM312 juta naik taraf lapangan terbang

Pusat Pengurusan Trafik Udara bernilai RM700 juta bakal dibina di KLIA.
KUALA LUMPUR: Malaysia Airport Holdings Berhad (MAHB) melihat pengumuman Belanjawan 2014 dalam sektor penerbangan membolehkan lapangan terbang Malaysia terus maju dan jauh lebih baik daripada lapangan terbang di negara lain.

Hal ini kerana peruntukkan RM312 juta kerajaan dalam menaik taraf beberapa lapangan terbang termasuk di Kota Kinabalu, Sandakan Sabah serta Miri, Sibu juga Mukah di Sarawak akan menyediakan kapasiti tambahan bagi syarikat penerbangan untuk mengembangkan operasi mereka di Malaysia. 

Tambahan, sebuah pusat PengurusanTrafik Udara baharu dengan kos sebanyak RM700 juta akan dibina di Lapangan Terbang Antarabangsa Kuala Lumpur (KLIA). Sistem baharu ini akan dapat meningkatkan pergerakan trafik udara dari 68 kepada 108 pergerakan setiap jam melalui tiga landasan dan kapasiti pengendalian ia adalah antara yang tertinggi di dunia.

Pengarah Urusannya Tan Sri Bashir Ahmad berkata, peruntukkan itu juga membolehkan syarikatnya untuk mengoptimumkan penggunaan semua tiga landasan di KLIA untuk penerbangan.

“Kami gembira dengan keputusan yang dibuat oleh Kerajaan untuk meningkatkan sistem kawalan trafik udara yang dikendalikan oleh Jabatan Penerbangan Awam.

“Sehubungan dengan menaik taraf lapangan terbang, kami dapat terus bekerjasama dengan kerajaan untuk menaik taraf infrastruktur lapangan terbang bagi kemudahan orang awam,” katanya di sini, semalam.

Dalam pembentangan Belanjawan semalam, turut diumumkan adalah menggubal Dasar Penerbangan Nasional yang akan menggariskan langkah bagi mengukuh eko-sistem dan rantaian perkhidmatan industri penerbangan.

Bashir berkata, pihaknya mengalu-alukan keputusan penggubalan dasar itu yang memberi kesan baik untuk industri penerbangan. Lapangan terbang, syarikat penerbangan dan pihak berkepentingan yang berkenaan akan dapat bekerjasama untuk mempromosikan perjalanan udara.

Source: Harian Metro Online | 26 Oct. 2013

Budget 2014 to boost MAHB long term growth

KUCHING: Malaysia Airports Holdings Bhd (MAHB) is poised to be the biggest beneficiary to the RM1 billion budget allocated for the upgrading of infrastructure and facilities at some airports the aviation industry, announced during Budget 2014.

To recap, in Budget 2014 tabled last Friday, the government announced that it will allocate a total of RM1 billion for the upgrading of infrastructure and facilities at some airports in the country. These include the allocation of RM700 million for the replacement of existing air traffic control and management system in Subang, a new air traffic management centre which will be built at Kuala Lumpur International Airport (KLIA).

In addition, RM312 million has also been allocated for the upgrading of Kota Kinabalu, Sandakan, Miri, Sibu, and Mukah airports in Sabah and Sarawak.

The Budget 2014 also outlined the set-up of a National Aviation Policy to strengthen the ecosystem and services network in the Malaysian aviation industry to make Malaysia a leading aviation hub.

According to RHB Research Institute Sdn Bhd (RHB Research), MAHB, which manages all airports across the country except for one in Johor, is likely to be a major beneficiary of this government’s initiative in the long run.

“Our checks with management indicates that the Budget 2014 allocation for infrastructure upgrades will unlikely translate into a higher proportion of user fees, noting that these assets that the government is spending on will not be revenue-generating.

“For the past airport upgrades in Ipoh, Kota Bharu, Kuala Terengganu and Malacca, as well as the ongoing Kota Kinabalu Airport upgrade, the government’s higher capital expenditure allocation did not translate into a higher revenue share for MAHB,” the research firm explained.

As such, it upgraded its earnings forecast for on MAHB financial year 2014 (FY14) and FY15 by six and 10 per cent respectively, attributed to higher passenger assumptions, with its FY13 and FY14 growth assumptions raised to 14 and 12 per cent, a lower corporate tax rate, which the research firm have reduced to one per cent, and higher interest income on a higher cash pile as it trimmed its costs overruns assumptions for the KLIA2 from RM0.5 billion to RM0.2 billion.

Source: Borneo Post Online | 29 Oct. 2013

MAHB to gain from Govt airport plan

IN Budget 2014, the Government announced that it would allocate a total RM1bil for the upgrading of infrastructure and facilities at some airports in the country.

RHB Research sees Malaysia Airports Holdings Berhad (MAHB) as a major beneficiary of this initiative in the long run.

The research house’s checks with the MAHB management indicates that the Budget 2014 allocation for infrastructure upgrades would unlikely translate to a higher proportion of user fees as the assets that the Government is spending on will not be revenue-generating.

In past airport upgrades in Ipoh, Kota Bharu, Kuala Terengganu, and Malacca, as well as the ongoing Kota Kinabalu International Airport upgrade, the Government’s higher capital expenditure allocation did not translate to a higher revenue for MAHB. 

Meanwhile, its discounted cash flow-based fair value (FV) is raised to RM10.13 from RM8.47, based on a weighted average cost of capital of 7% from 7.5% on the assumption of lower returns on market.

It said the RM10.13 FV implies FY14 enterprise value per earnings before interest, tax, depreciation and amortisation of 15 times.

Source: The Star Online | 29 Oct. 2013

AirAsia bakal rintis laluan antarabangsa Kota Bharu - Medan

SYARIKAT penerbangan tambang murah (LCC) terbesar di rantau Asia, AirAsia bakal merintis laluan penerbangan Kota Bharu  - Medan, iaitu laluan penerbangan antarabangsa pertama dari Pantai Timur, Semenanjung Malaysia ke Sumatera, Indonesia.

Cadangan ini bakal direalisasikan oleh syarikat penerbangan ini pada tahun 2014 sempena kempen Tahun Melawat Malaysia 2014 sekali gus menjadikan Lapangan Terbang Kota Bharu (KBR), Kelantan, Malaysia menjadi hab penerbangan antarabangsa serantau.

Medan merupakan bandar raya terbesar di Sumatera dan yang keempat di Indonesia selepas Jakarta, Surabaya, Bandung, dan Bekasi. Lapangan Terbang Antarabangsa Kuala Namu Medan (KNO) merupakan pintu keluar masuk utama ke Medan. Medan merupakan ibu wilayah Sumatera Utara yang mempunyai penerbangan terus antarabangsa dari atau ke Malaysia melalui Kuala Lumpur (AirAsia & Malaysia Airlines), Subang (Firefly), dan Pulau Pinang (AirAsia, Firefly, Malaysia Airlines, Garuda Indonesia, Lion Air, dan Sriwijaya Air), manakala Sriwijaya Air-Flying Fox Airways akan memperkenalkan laluan antarabangsa Ipoh - Medan mulai 8 November 2013 dengan kekerapan dua kali seminggu.

Antara destinasi pelancongan menarik di Medan ialah Masjid Raya Medan, Istana Maimun, Danau Toba, Air Terjun Sipiso-piso, Pulau Simosir, Taman Tema Sibolangit Hill, dan Taman Negara Gunung Leuser. Untuk maklumat lanjut, sila layari: http://www.welcometomedan.com.

Dalam pada itu, AirAsia juga berminat memperkenalkan semula laluan penerbangan Kota Bharu - Singapura yang pernah dirintis oleh syarikat penerbangan Firefly dari 10 Ogos 2012 sehingga 10 Julai 2013. AirAsia juga akan menjadikan KBR sebagai hab penerbangan antarabangsa ke Indochina pada tahun hadapan.

New airline gives more options to get to Medan from Ipoh

Miniature airliners: The air stewardesses displaying models of the airline’s Boeing 737- 400 aircraft during the launch at Impiana Hotel.
THOSE travelling to Indonesia will have another airline to choose from when Flying Fox Airways starts its Ipoh - Medan flights next month.

The new airline in partnership with Sriwijaya Air, a leading airline company in Indonesia, will be offering flights from the Sultan Azlan Shah airport to the Kuala Namu airport on Mondays and Fridays starting Nov 8.

Flying Fox Airways chief executive officer Daniel Lee said the Ipoh - Medan route marked only the beginning of the airline’s plans of establishing Ipoh as a checkout point and transit hub to international destinations.

“We will be increasing the frequency of flights to Medan and introducing an Ipoh - Medan - Dhaka route in December and are looking into setting up a flight to China in the near future.

“We will operate very closely with the Kuala Namu airport, which will function as our transit hub while our main base remains at the Sultan Azlan Shah Airport,” he said during the airline’s official launch here, recently.

Lee, who is an Ipoh-born, said the airline’s slogan Flying Just Got Easier reflected its aim of providing hassle-free, affordable and convenient air travel for locals, tourists and businessmen in Perak right at their doorstep.

For the past 10 years, the most dynamic air travel growth has been centred on the Asia and Pacific regions, where air travel access is boosted by fast-growing trade and investment.

“In partnering with Perak Tourism, we can contribute by opening up the state to even greater potential and putting Ipoh on the international map,” he said.

Perak Tourism and Culture Committee chairman Nolee Ashilin Mohd Radzi officiated at the launch and witnessed the signing of memorandum of understandings with its business partners.

In her speech read out by Perak Economic Planning Unit (Upen) director Datuk Abu Bakar Said, she said the launch was a monumental occasion for the state as the airline was the first to be based here.
Positive move: Lee and Nolee Ashilin unveiling a plaque to officiate the launch of Flying Fox Airways.

“The state government’s vision of turning Perak into a top player in the skies is coming closer to reality through this.

“I am positive that we will see increased international trade and investments following the airline’s launch, as well as a larger influx of visitors to our tourist destinations such as Lumut, Pangkor Island, Gua Tempurung and Kek Look Tong cave temple,” she said.

The airline will be using Boeing 737-400 aircraft that can accommodate 152 passengers and is expected to launch its website by the end of this month.

Source: The Star | 16 Oct. 2013

Ipoh - Medan flights to take off next month

Daniel Lee (fifth from left) after the signing of the memorandum of understanding with travel agencies at the launch of Flying Fox Airlines Sdn Bhd. Pic by Supian Ahmad.

IPOH: Those who want to fly to Medan in Indonesia need not go to Penang anymore to catch their flights. Beginning Nov 8, Indonesia's third largest carrier, Sriwijaya Air, will have flights from Ipoh to Medan, following the signing of a coach-sharing agreement with Flying Fox Airways Sdn Bhd, a Perak-based company offering the service.

The carrier will be operating between the Sultan Azlan Shah Airport and the Kuala Namu Airport in Medan, Indonesia.

"The new air service, using Boeing 737-400, can ferry up to 163 passengers, with flights on Monday and Fridays," Flying Fox Airways chief executive officer Daniel Lee said after the launch of the company by State Tourism, Health and Cultural Committee chairman Nolee Ashilin Mohd Radzi on Friday.

"The main advantage of flying with Sriwijaya Air is convenience. The ticket is priced about RM400 one-way, including all charges.

"We are happy to note that seats for the Ipoh - Medan flights are 80 per cent booked for the next six months with the balance of 20 per cent reserved for walk-in customers.

Lee said the vision of Flying Fox was to make Ipoh a one-stop centre where the city will be a check-out point to international destinations including Bangladesh, China, Thailand, Macau and Australia.

"Meanwhile, Kuala Namu Airport, which is near Medan, is expected to become the new international transit centre for Sumatera.

"Both the Kuala Namu and the Sultan Azlan Shah airports will function as our international hubs, with Ipoh serving as our main base and Kuala Namu as a transit hub.

He added that the Sultan Azlan Shah Airport had been underutilised. The airport was recently re-opened after it was upgraded. Its runway was lengthened from 1.8km to 2km.

"We hope to make the airport the second northern hub for international destinations after Bayan Lepas International Airport in Penang. "For that, Flying Fox Airways intends to purchase two planes which will be based at the airport next year."

Source: New Straits Times | Northern Region | 15 Oct. 2013

Firefly: More than just connecting people

FIREFLY, a regional carrier and a fully owned subsidiary of Malaysia Airlines, is in transformation from a community airline to a boutique airline serving mainly the business crowd. Inside Investor asked the enigmatic Ignatius Ong, Firefly’s CEO, about strategy, safety records and future plans.
Ignatius Ong, Firefly's CEO

Q: What is your definition of a community airline?
A: There are a lot of legacy airlines among the national airlines in the world with a lot of fundamental structures in place that are hard to change. We wanted to do something ground-breaking, to start a new airline set as a template within our airline group and not follow the same model. The point was to do something which hasn’t been done before in Malaysia. Firefly was originally launched for “short hops”, to connect communities within Malaysia and the wider region, thus the term community airline. However, over time we saw that our flights were increasingly used by the business community as well as leisure passengers, and so we decided to softly rebrand the airline towards a premium boutique airline because we are today doing a lot more than connecting communities, for example flying to primary airports.

Q: Are there any synergies with MASwings?
A: Not really. It’s our sister company, but they have a different focus, on Borneo. They are connecting the rural communities there. From that perspective, it’s different, although from the group level the business model of both is centered on turboprops. Another difference is that some routes of MASwings are subsidised by the government because they have to connect remote regions which is commercially unviable. But our model is solely based on commercial operations.

Q: Do you foresee to deploy jets in addition to the turboprops?
A: It’s not really the right time now. Our strength today is turboprops and we know how to address this traffic sector. However, I’d never say never.

Q: What is your long-term target for the fleet size?
A: We have 13 aircraft at present, and 19 are on order. In five years from now, I would like to reach the 20-mark of deployed aircraft.

Q: Do you also see network expansion?
A: Yes, but a network expansion is somehow limited for a turboprop fleet with a two-hour reach. We are now creating hubs, apart from the central hub in Selangor, in Penang, Johor, Malacca  and Kota Bharu for the East Coast. That way, we can increase our reach and network as much as possible as opposed to just operating one hub. We are a point-to-point carrier and will go wherever there is demand. For example, there is no connection from Singapore to Ipoh, here we can act.

Q: What are the fundamental reasons for Firefly’s growth?
A: We have a strong brand, and many people have heard of us. However, some say they haven’t tried us yet. So we did a brand refresh this year to get the message through. Otherwise, we can stimulate demand on certain routes to grow to a sizeable scale, and at the same time reduce costs which we translate into low fares for our passengers, which, in turn, stimulates demand further. For example: Many people go on holiday two times a year – but I want to price our flights so that they can go four times a year for the same amount of money. I know that there is much competition outside, but that way we don’t cut into the pie of the others, but just create more flights. That is the whole idea, and that’s why traffic is growing. One of our most active passengers travels with us 200 times a year. Moreover, many businesses are here in Selangor, and many corporate people want to avoid traveling to Kuala Lumpur International Airport and rather use us. In KLIA or LCCT, you need to be there at least three hours earlier for check-in, whereas for us here it can take less than 15 minutes all the way to get on board. It’s very time-saving and allows us to have a quick turnaround. Especially for corporate people, it makes a big difference to fly with us in terms of time efficiency.

Q: Is Firefly a low-cost carrier?
A: This was the original idea, but we are definitely not. There are refreshments on board, pre-assigned seats, and people do not to have to pay for extras. Furthermore, the passenger composition on our aircraft is much different from others. Many airlines are, for example, carrying many first-time flyers, while we have predominantly frequent flyers. This makes a big difference.

Q: When do you think would be the right time for a stock listing?
A: This is hard to say. It depends on the government, first and foremost, as we are still a government-linked company. I think we are not at the right size yet. We need to reach a status that everyone in Malaysia knows us and almost everyone has flown with us then this would be the right time. The people who can make a decision on a stock listing are actually at Khazanah Nasional or Malaysia Airlines because they are holding the shares.

Q: There have been major safety issues with some rapidly expanding airlines. What is Firefly’s stance on that?
A: You are absolutely right, we have seen a lot of airlines rushing in to get their operating licenses. There might be a situation where safety could be compromised, but at Firefly we would never do anything that way. We are using the safety protocols of Malaysia Airlines which was one of the pioneers in safety and is well renowned for its safety records. We are also cooperating with the manufacturers in terms of maintenance and do more than what’s required. We also started our own maintenance, and of course this may be a little costlier, but there is nothing more important than safety in aviation. An airline can make huge profits, but there only needs to be one incident that not only costs the brand its reputation but more importantly human life. There are two paramount things for our company: Profitability and safety. Good maintenance also means to get high performance and less breakdowns or delays, which is as important.

Q: What will the ASEAN Economic Community bring?
A: We can’t go on it alone in the long run. We have a focus on domestic flights and the competition is pretty strong. We work closely with Malaysia Airlines on code-sharing to offer new connections. In the long run, we would also look into the opportunity to code-share with other airlines in the region. We can’t grow organically alone.

Q: Why did firefly withdraw from East Malaysia?
A: At that time Firefly actually occurred some losses on these routes, and the parent company, which itself was restructuring, said we should focus on what we really are good at, and it was the right decision at that point of time in my view as we have all seen.

A little on the background of the CEO, Ignatius Ong:
Started his career as a personal banker around 20 years ago, worked in local and corporate banks and then switched to Andersen Consulting – today Accenture -, where he was a senior consultant overseeing a number of projects, such as mergers, CRM, loan restructuring etc. within the financial services sector in Malaysia, Singapore and Mauritius. Mr Ong joined Malaysia Airlines in 2004 where as a manager in the project management department and later moved on to take on a role with the then programme management office. Then became regional senior vice president for Australia, New Zealand and Southwest Pacific and was responsible for the region’s route revenue and profitability between 2010 and 2012. After that, he was called back and asked to take on the position at Firefly.

Firefly’s route map:
 Source: Investvine | 24 Sept. 2013

AirAsia plans to make Kota Bharu Airport its new hub

AirAsia group CEO Tan Sri Tony Fernandes wants the airline to start international flights out of Kota Bharu Airport in Kelantan. "From Kota Bharu, we're going to start a flight to Medan. This will be the first international flight from Kota Bharu, and [we are planning to fly] to Singapore as well. We will also fly to Indochina from Kota Bharu, but I can't announce the place yet," he said.

Fernandes said that international flights from Kota Bharu Airport will start in 2014. "Just like Kota Kinabalu, Kota Bharu is underutilised. 

We see potential in Kota Bharu, Senai, which is now expanding, and potentially Kuantan." (Financial Daily)

Source: CIMB Daybreak | 24 Oct. 2013

Sunday, October 27, 2013

Kota Bharu Airport to be AirAsia's next hub

INDOCHINA REGION: Fernandes says plan will most likely be realised next year

AIRASIA Bhd, the country's leading low-cost carrier, plans to establish the Kota Bharu Airport as its hub for the Indochina region, according to group chief operating officer Tan Sri Tony Fernandes.

Speaking on the sidelines of the second day of the World Capital Markets Symposium, here, yesterday, Fernandes said the company also sees the potential of several other domestic airports becoming regional hubs.

"We also see potential in Senai, Johor, and Kuantan, Pahang. I'd rather let Aireen Omar (AirAsia Bhd chief executive officer ) talk about it as she's the boss," Fernandes said, adding that the plan would most-likely be realised next year.

Fernandes, who earlier conducted a session entitled "Disruptive Innovation: The Future of Business", was asked by a member of the audience whether AirAsia would consider "disrupting the status quo" by using Kota Bharu Airport for Indochina-bound flights.

"I think it is a brilliant idea but unfortunately, before you take credit for it, we're (already) doing it," Fernandes answered, drawing laughter from the the packed hall of 700.

"From Kota Bharu, we are going to start a flight to Medan. We're going to Singapore as well, and Indochina," said Fernandes.

On the 2014 Budget, Fernandes expressed his confidence in the Finance Ministry in managing the country's fiscal deficit effectively.

"Malaysians have to be aware that we need to cut the deficit. There are three ways in addressing the deficit - imposing goods and services tax, cutting spending and increasing productivity."

Fernandes said the budget should support productive industries and entrepreneurs as drivers of the economy, which will then create more jobs and generate tax revenue.

"One very simple thing is to break down monopolies and create fair and well-regulated markets.

"I think the banking industry has done a good job, so as to inject more competition into the market and make companies more productive," he added.

Source: Business Times | 24 Oct. 2013