Monday, October 2, 2017

AirAsia chalks up fuel savings with new landing system at Malaysian airports

SEPANG: Malaysia is the first country in Asean to use the Required Navigation Performance Authorisation Required Approach (RNP-AR APCH) as its low-cost carrier AirAsia Bhd now uses the flight procedure.

The flight procedure is designed to shorten the distance an aircraft has to fly at the airport and allows the pilot to use on-board global positioning system technology to follow a precise track, independent of ground-based navigation beacons.

AirAsia group development and efficiency head Captain Rajesh Gill said the approach was jointly developed by AirAsia, Department of Civil Aviation (DCA) and GE Aviation, a subsidiary of General Electric.

“This is a great example of how both government and private agencies have worked together to innovate and do their best to contribute more to the transportation infrastructure of the country.”

Rajesh said AirAsia had invested RM23 million on upgrading its aircraft, attaining operational certification and training the pilots.

“Over a one-year period, AirAsia will be able to reduce its costs by up to RM9 million per year as RNP-AR APCH can save the airline on average 25kg of fuel per flight compared to the standard approach path.”

Among other benefits of RNP-AR approach were a reduction in flight time, less fuel burnt, lower noise pollution and carbon emissions, he said.

He said AirAsia hailed the DCA in recognising the airline’s operational capability and approving AirAsia to operate RNP-AR APCH flight paths in Malaysia.

The DCA has implemented RNP-AR APCH procedures at eight airports in Malaysia – Johor Bahru, Kota Bharu, Kota Kinabalu, Kuching, Kuala Terengganu, Langkawi, Penang and Sibu.

Soon, RNP-AR APCH flight procedure will be instigated at all 14 airports nationwide by the end of the year, said Rajesh.

Earlier, AirAsia Bhd (AAB) said it plans to consolidate its various regional affiliates under one holding company – in contrast to a scattered structure now – as the airline takes off on a rapid expansion path in its core Southeast Asian markets.

The Malaysia-based carrier, currently the listed investment holding company and the operating firm for AirAsia‘s Malaysian airline business, proposed a share exchange and transfer of listing with newly created AirAsia Group Bhd, or Newco.

Under the reorganisation, the investment holding function and the Malaysian airline business will be separated. Newco will become the investment holding vehicle and take on AAB’s listing.

AAB will retain the Malaysian airline business and become Newco’s wholly owned unit, the airline said in a Bursa filing – including a plan to expand its fleet by over 20% in the second half.

“This is a positive step forward as the current corporate structure is awkward. It makes sense to have one holding company that controls all the various airlines and related businesses,” said Corrine Png, CEO at research firm Crucial Perspective.

Co-founder and group CEO Tan Sri Tony Fernandes has grown AirAsia from a two-plane operation in 2002 into Asia’s biggest low-cost airline – with affiliates in Indonesia, Thailand, India, Japan and plans to set up ventures in China and Vietnam.

But Fernandes has cited regulatory caps on ownership and complexity surrounding his businesses for not getting the desired valuations from investors.

Following the internal reorganisation, Fernandes said he plans to further streamline the group structure to facilitate future spin-off of operations.

AirAsia is already discussing a sale of its leasing arm and expects to close this before the year-end. Reuters has reported AirAsia was in talks with a South Korean group.

Separately, AirAsia has agreed to partially sell and convert perpetual securities investments in PT Indonesia AirAsia into new shares in a PT Rimau Multi Putra Pratama TBK, to support financing needs of its growth in Indonesia via capital markets ahead of a potential IPO.

AirAsia is battling competition from larger groups such as Singapore Airlines and Indonesia’s Lion Air.

Source: Agencies | 31 August 2017

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