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Category: General

Retail News Asia is committed to providing both local and global retailers with the latest General Retail news throughout the Asian market. This on a daily base.

  • Messenger to start testing bill splitting feature in the US

    Messenger to start testing bill splitting feature in the US

    Recapping everything that’s been released from the beginning of the year, Messenger revealed a couple of surprises that haven’t yet been implemented. One of these surprises is a sneak peek at the bill splitting feature that Messenger will be testing in the United States.

    Starting next week, Messenger users in the US will be able to test Split Payments, a free way to share the cost of bills and expenses. If you’re selected for the testing sample, you can find the Split Payments feature by clicking the “Get Started” button in a group chat or the Payments Hub in Messenger.

    Any bill can be split evenly, but Messenger users can also modify the contribution amount for each individual in the chat, with or without themselves included. All requests will be sent and viewable in the group chat thread after entering a personalized message and confirming Facebook Pay details.

    Messenger doesn’t say when Split Payments will be available for everyone, but if we were to guess, they will probably be ready for prime time early next year.

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  • Vietravel Airlines to resume domestic flights

    Vietravel Airlines to resume domestic flights

    Vietravel Airlines will reopen domestic flight ticket sales next Monday to tap year-end travel demands, after remaining grounded for about three months owing to pandemic restrictions.

    The carrier, which belongs to leading tourism company Vietravel, announced it will reopen ticket sales from 9 a.m. Monday, with the first flight taking off next Thursday.

    The flights will depart to and from Hanoi, Ho Chi Minh City, and beach tourist hotspots such as Da Nang, Nha Trang, Phu Quoc and Quy Nhon.

    The company said it will gradually increase its flight frequency from now to the end of the month to meet higher travel demand during the year-end peak season, including the upcoming Tet (Lunar New Year) holiday two months from now.

    Vietravel Airlines was launched at the end of Dec. 2020 and was one of the airlines that allowed to operate amid the turbulence created by the pandemic.

    After about half a year of operation, the carrier had to reduce its frequency and also closed operations since late August due to Covid-19 resurgence. It resumed business on Oct. 18.

    According to the new restructuring plan, Vietravel plans to operate as a holding company instead of engaging in operating activity itself.

    The company has invested additional capital in the carrier this year, raising its total investment from VND700 billion (over $30 million) to VND1.3 trillion (over $56 million) for the 2021-2025 period.

    The Civil Aviation Authority of Vietnam has said that domestic carriers will increase flight frequency in the coming time.

    Budget carrier Vietjet Air has increased its frequency to six flights a day on each of the Hanoi-HCMC, Hanoi-Da Nang, and Da Nang-HCMC routes.

    Another budget carrier, Bamboo Airways, will increase its frequency to 4-5 daily flights on the Hanoi-HCMC route from mid-December.

    National flag carrier Vietnam Airlines will operate about 140 flights per day on nearly 40 domestic routes. On the Hanoi – HCMC route, Vietnam Airlines operates five flights per day and its affiliate Pacific Airlines flies two flights per day. From Dec. 15, each airline will increase frequency on this route with one more flight per day.

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  • Steel exports surge 130 pct as global demand shoots up

    Steel exports surge 130 pct as global demand shoots up

    Steel exports rose by nearly 130 percent in the first 11 months of this year to US$10.8 billion, according to the Vietnam Steel Association.

    Hoa Phat exported 914,000 tons of finished construction steel products, a year-on-year rise of 90 percent. It plans to export over one million tons, double the volume it shipped last year.

    The association expected exports to be robust this month due to rising global demand and a temporary shortage in China.

    Vietcombank Securities Company explained that China is gradually reducing its steel exports.

    The association said Vietnam has a production capacity of around 24 million tons a year, and output this year is expected to reach 21.2 million tons, enough to fully meet domestic and export needs.

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  • Vivaldi is world’s first mobile browser to introduce two rows of tabs

    Vivaldi is world’s first mobile browser to introduce two rows of tabs

    Vivaldi is trying to appease as many Android users as possible, so the most recent update for the mobile browser brings a world premiere. Vivaldi 5.0 is the world’s first mobile browser to offer a “two-level tab stacks” solution. Additionally, Vivaldi’s Android browser brings built-in Panels on tablets and Chromebooks, another first.

    Back to the “two-level tabs stacks” solution, this has been launched on Vivaldi’s desktop browser earlier this year and allows users to manage multiple web pages smoothly and easily. Starting today, the same feature but designed for mobile devices, is available for Android users.

    To enable the new feature, simply long-press the New Tab button and select “New Tab Stack.” That should allow you to start using the new stack/group created, with the current tab and one new additional tab. There’s another way to make a group of tabs from the Tab Switcher: drag one tab on top of another to create a new stack.

    But this isn’t the only new feature included in the latest Vivaldi update. An improved tab interface and new ways to tweak the Tab Bar have been added too. The built-in Notes tool has been enhanced too so that Android users can quickly handle big chunks of text from a webpage to an existing note with an “Append to Note” option when highlighting text.

    Vivaldi 5.0 is also a big step up for tablet users, as developers have been working to optimize the browser for bigger screens. Apart from a new design, the new version of Vivaldi features a side Panel to make it easier for users to optimize their screen space better on tablets.

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  • AuMake and Miniso to launch dual-branded stores in Sydney

    AuMake and Miniso to launch dual-branded stores in Sydney

    The specialist retailer in Australia and New Zealand, Aumake Limited shared on Thursday that it has entered into a distribution agreement with a Japanese-inspired lifestyle product retailer MINISO Master Franchisee Pty Ltd (MINIS0).

    As per the agreement, MINISO will provide operational support and products to three of Aumake’s physical stores initially, strategically picked for their high foot traffic locations and traction with Asian customers.

    The key terms of the distribution agreement include:

    • Initial physical stores are located in Chinatown, World Square CBD and Burwood in Sydney, NSW.
    • Physical stores to be dual-branded as Aumake and MINISO.
    • MINISO will pay Aumake a percentage of sales (GST incl.) in exchange for using Aumake’s premises to sell the products.

    Aumake’s deal with MINISO creates a significant revenue opportunity and subsequent reduction in overhead costs due to increased physical foot traffic, especially when the restrictions on international borders are likely to be eased for Asian tourists and international students in the coming weeks.

    In addition, the cooperation between the two companies will also provide Aumake with an opportunity to introduce and expand new skincare and cosmetic brands.

    Meanwhile, the stock AUK was spotted trading 10% higher at AU$0.016 per share at 2:00 PM AEDT.

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  • Japan eases blanket ban on new incoming flights

    Japan eases blanket ban on new incoming flights

    Japan has softened its suspension of all new incoming flight bookings to make it easier for citizens to return, the government said Thursday, a day after it announced the move prompted by worries about the Omicron coronavirus variant.

    The transport ministry abruptly said Wednesday it was asking airlines to stop taking all new incoming flight reservations for a month, in a surprise move affecting citizens and foreign residents.

    But on Thursday, government spokesman Hirokazu Matsuno said it would be amended.

    “This request caused confusion among those affected and so the prime minister instructed the transport ministry to examine the issue and consider the needs of Japanese citizens hoping to return home,” he told reporters.

    As a result, the ministry “asked airlines to cancel the blanket suspension of new reservations for international flights to accommodate Japanese hoping to return home”, he added.

    Japan has had tight border restrictions throughout the Covid-19 pandemic, barring almost all foreign arrivals.

    It had begun to ease those rules slightly last month to allow some students and business travelers entry, but reversed that decision after the emergence of the Omicron variant.

    It has also barred all non-citizens from entering the country if they are coming from 10 southern African countries.

    All arrivals in Japan must quarantine for 14 days at home, with people coming from dozens of locations required to spend between three and 10 days of that two-week period in designated facilities.

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  • Thai AirAsia X looking for new investors

    Thai AirAsia X looking for new investors

    Thai AirAsia X needs a major restructuring and new investors to prep the airline to resume international routes next year, after Thai AirAsia (TAA) already secured additional funding for the carrier last week.

    Thai AirAsia X, a long-haul, low-cost carrier under the AirAsia group, has been grounded for almost two years since the pandemic emerged in 2020. The 11-aircraft fleet was reduced to seven earlier this year, said Tassapon Bijleveld, executive chairman of SET-listed Asia Aviation (AAV), the majority shareholder in TAA.

    Mr Tassapon, also a shareholder in Thai AirAsia X, said the airline had to switch its wide-body Airbus A330 jets to cargo service to stem financial losses. Thai AirAsia X requires additional liquidity to prepare for passenger flights, which are expected to resume next year, he said.

    Tourists have started asking when international flights will resume and the airline responded by launching ticket sales for the Bangkok-Incheon (South Korea) route from April 2022 in the hope that borders will reopen by then, said Mr Tassapon.

    “Border closures should not be an option to prevent the spread of the Omicron variant as the national economy and cash-strapped tourism sector in particular cannot afford to survive another lockdown,” he said.

    Mr Tassapon said it has been over two years since the pandemic broke out and the government should learn to live with it by sourcing sufficient immunity, by using vaccines and medicines, for local communities in order to let economic activities run as usual.

    He said Thai AirAsia X, which is not yet listed on the stock market, is in negotiations with a few potential investors and will enter the restructuring process by next year.

    TAA was given approval by shareholders at a meeting on Nov 26 to commence the restructuring plan, enabling the airline to raise an additional 14 billion baht.

    Under the new structure, Mr Tassapon will hold 18% of the shares, down from 40.52% at present, while AirAsia Aviation, the investing company under AirAsia Group Berhad, will hold 40.7%, followed by commercial banks at 5.3% and new individual Thai investors at 5.2%.

    However, even though TAA is expected to receive the first allotment of fresh capital by mid-December, the cost-cutting measures have to remain until air travel fully recovers.

    On announcing massive layoffs last month, Mr Tassapon said TAA would have to bid farewell to more than 400 employees from its total workforce of 5,000. Some employees decided to join the early retirement program offered by the firm, he said.

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  • Cebu Pacific receives first Airbus A330neo; targets all-neo fleet by 2027

    Cebu Pacific receives first Airbus A330neo; targets all-neo fleet by 2027

    Philippine low-cost airline Cebu Pacific received its first Airbus A330neo on November 28,2021 as it begins its widebody fleet modernization program.

    The aircraft features 459 lightweight Recaro seats, which have been ergonomically designed, and offer versatility for a wide range of routes from shorter regional services to medium and long-haul operations. The Airbus A330neo will be used to operate trunk routes within the Philippines and the rest of Asia, as well as on longer-range services to Australia and the Middle East.

    The A330neo brings a step-change in efficiency, consuming 25% less fuel than previous generation aircraft and a similar reduction in CO2 emissions. The efficiency of the A330neo also ensures compliance with current and future sustainability requirements in terms of noise and emissions.

    “Cebu Pacific’s first A330neo brings us closer to our target of having an all-Neo fleet by 2027, and shows our commitment to making air travel accessible while ensuring environmental and social sustainability,” Cebu Pacific chief strategy officer Alex Reyes said in a statement.

    Reyes added: “We believe that growth and sustainability are not mutually exclusive and should in fact be inclusive if we want to work towards the greater good. This is why we will always choose the greener options – increased aircraft efficiency, reduced noise, and carbon emissions, to ensure that lower fares will be available for every Juan.”

    In total, Cebu Pacific has ordered 16 A330neo, and also has 16 A320neo and 22 A321neo still to be delivered. The low-cost carrier currently operates 50 Airbus aircraft, comprising 43 A320 families and 7 A330ceo.

    “We thank and applaud Cebu Pacific for selecting our latest-technology A330neo as part of its fleet modernization drive to fly the greenest aircraft for a sustainable future. The A330neo is the first aircraft in the world already certified to comply with ICAO’s CO2 emissions standards beyond 2028. The airline will benefit from the aircraft’s step-change in performance and economics while maintaining passenger comfort and lowest operating costs,” said Airbus Asia-Pacific President Anand Stanley in a press statement.

    The aircraft is powered by Rolls-Royce’s latest-generation Trent 7000 engines and features a new composite wing with increased span for enhanced aerodynamics.

    The A330 remains the most popular widebody family aircraft for Airbus, with an order book of more than 1,800 aircraft at the end of October 2021.

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  • AirAsia CEO ‘bullish’ on beating Omicron as airline announces resumption of Phnom Penh flights

    AirAsia CEO ‘bullish’ on beating Omicron as airline announces resumption of Phnom Penh flights

    AirAsia Group chief executive Tony Fernandes has urged governments to stop “overreacting” to the emergence of the new Omicron variant of Covid-19 and focus on reducing the cost of PCR testing instead.

    “It’s a huge overreaction. We don’t know anything about this variant yet. Let’s wait and see before we jump the gun,” Mr. Fernandes said at a virtual address at Bangkok Post’s International Forum 2021 dubbed “Unleashing the Future: A Glimpse into 2022 and Beyond” on Thursday.

    Air Asia has also hinted that Cambodia is one potential market for new ventures. Current group president for airlines Bo Lingam says: “We will continue to review new markets to operate from in the future, like Cambodia for example when we can connect Southeast Asia once again with the best value fares and lifestyle offerings.”

    The chief executive of the low-cost carrier said the world is more equipped and better prepared to deal with Omicron — first detected in South Africa — than previous strains.

    Air Asia is also reportedly looking at resuming Kuala Lumpur-Phnom Penh flights in January 26 to take advantage of Chinese New Year travelers. During its heydays prior to COVID-19, it used to mount three flights a day.

    “There are Merck pills, and Pfizer pills are coming out. We are vaccinated. There are boosters available. I’m feeling much more bullish, and I am not doom and gloom,” he said.

    “Governments need to use common sense and see what is needed. I think travel restrictions and such measures are temporary, and the world is global. No matter how much we close the borders, the viruses will travel.”

    He criticized the pricing and frequency of the PCR tests required by many governments, including Thailand, when travelers enter their borders. He said this risks deterring passengers from taking a vacation despite the pent-up demand to venture overseas.

    “No government has looked at the cost of the PCR test. PCR tests in Southeast Asia are extremely [expensive]. It’s unfair for passengers to pay that kind of cost. Of course, we want to be safe, but make it as simple as possible.”

    He praised Thailand for planning to reduce some of these charges and procedures.

    “Thailand is ahead of the rest of ASEAN, which are still quite draconian,” he said, referring to the Association of Southeast Asian Nations.

    “In Malaysia, we have a seven-day quarantine. It’s a start. At least we are opening up borders, but there’s a long way to go before we get to where we used to be.”

    As for AirAsia’s operations and outlook for 2022, Mr. Fernandes said he had restructured the company and pivoted to more digital businesses.

    So far, the low-cost carrier has launched three logistics businesses — a food delivery super-app, online bank BigPay, and parcel delivery service Teleport. The company has no plans to cut routes yet, it said.

    The group CEO was optimistic about the future of the aviation industry. He said he expects low-cost carriers to bounce back faster than full-service airlines as most passengers prefer to travel short distances. Moreover, business travelers are getting used to attending meetings virtually instead of in person, he said.

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  • 7-Eleven Malaysia ventures into Indonesia’s pharmacy market

    7-Eleven Malaysia ventures into Indonesia’s pharmacy market

    7-Eleven Malaysia Holdings Bhd has teamed up with a listed company on the Jakarta Stock Exchange to set up a retail pharmacy chain in Indonesia.

    SEM, in a filing today, said its 75% owned Caring Pharmacy Retail Management Sdn Bhd has entered into a joint venture with PT Era Prima Indonesia (EPI) to establish the business.

    Caring would take a 50.1% stake in the JV.

    SEM said the total funding of the proposed JV was about RM8.55mil. “The proposals represent an opportunity for the SEM Group to venture into the pharmaceutical industry in Indonesia,” it said.

    EPI is a subsidiary of listed firm PT Erajaya Swasembada Tbk, a distributor and retailer of mobile communication products.

  • Vietnam–US air fare starts from $1,300: Bamboo Airways

    Vietnam–US air fare starts from $1,300: Bamboo Airways

    A Bamboo Airways return ticket between Vietnam and the U.S. is set to cost $1,300-1,500, with the first regular flight planned for the first quarter of next year.

    Bamboo Airways plans to start one regular flight every two days from Ho Chi Minh City to San Francisco and increase the frequency to daily later, chairman Trinh Van Quyet told the press recently.

    This is the same price the startup airline announced two years ago. It is set to record losses with such a fare.

    “Our advantage is big resorts. The combination of aviation and tourism will bring many benefits to customers.”

    The airline is negotiating to lease wide-body Boeing 787-9 and Boeing 787-10 aircraft for flights to the U.S. and Europe.

    Quyet said the airline has submitted all necessary documents to U.S. aviation authorities.

    It will start flying once U.S. Federal Aviation Administration (FAA) gives it permission and the Vietnamese government resumes regular international flights.

    Bamboo Airways began its first charter flight from Vietnam to the U.S. on Sep. 23 as part of the 12 charter flights the U.S. Transportation Security Administration (TSA) had given permission to operate.

    Vietnam Airlines on Nov. 29 operated its first regular flight to the U.S. The airline announced earlier that one-way ticket prices would be around $1,000.

    The Vietnam-U.S. route recorded 1.4 million passengers in 2019.

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  • Search bar placement and design changes are being tested for the Google app

    Search bar placement and design changes are being tested for the Google app

    Changes are taking place behind the scenes for the popular Google app. According to Mishaal Rahman, former Editor-in-Chief at XDA and currently the Senior Technical Editor at Esper, members of the Google News-Telegram group are seeing different placements and designs for the search bar in the Google app. There are both positives and negatives to these changes.

    For example, one design change puts your profile picture inside the Google app’s search bar where it can be tapped to access the settings (see image at the top of this article). Of course, the downside here is that the search bar is placed at the top of the display requiring you to have Jimi Hendrix’s legendary fingers to reach it. The integration of the settings with the search bar is no different than what you’ll find on Gmail and the Google Play Store.

    Another change being tested is one that moves the search bar to the bottom of the display. However, images show that in this test, the user’s profile picture, and thus access to the Google app’s settings, is no longer integrated inside the search bar.

    Google loves to run so-called A/B tests where in this case we’d assume that some Android users will get the new search bar with the integrated settings access at the top of the screen, and others get the version with the search bar on the bottom of the display without the settings integration.

    After the test is run over a period of time, Google grills Android users to find out which one they would like to see made permanent, “A” or “B.” Which change will Google select, or will it decide to keep the status quo? Right now, it is anyone’s guess.

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  • Carrefour’s Flash 10/10 c-store deploys avatars and AI to speed purchases

    Carrefour’s Flash 10/10 c-store deploys avatars and AI to speed purchases

    Carrefour open Flash 10/10, its next-generation test store, on 24 November in Paris’ eleventh arrondissement. This new convenience store – developed in collaboration and exclusively with Californian start-up AiFi – uses technology that has never been seen before and is designed to provide customers the most accessible and fastest shopping experience ever.

    Carrefour Flash 10/10: 900 products available in a flash

    Carrefour Flash is the first store of this kind in France, and will be located at 11 avenue Parmentier, in the capital’s eleventh arrondissement. With Flash, technology is used to enhance the customer experience, making shopping more straightforward. It has nearly 900 everyday product references on sale.

    With this innovative new format, Flash 10/10 (“10 seconds to shop and 10 seconds to pay”) features a shopping journey that does not involve having to scan any products and payment that is almost instantaneous. Customers don’t even have to take their items out of their bag. This saves time for customers and creates a smoother experience. Customers are free to enter and exit the store without having to pass through a gateway. There is no need to download an app or register beforehand. And there are no surprises – they can view their total spending in real-time.

    Four employees will be on-hand to open the store and oversee its operation. They will maintain it and keep it tidy, manage its new e-commerce services (including Pedestrian click and collect), and provide customers with advice.

    This whole customer experience will be made possible by 60 HD cameras, nearly 2000 sensors built into the connected shelves, an algorithm for interpreting all the data, and a proprietary tablet payment system. Customers are tracked anonymously as a virtual avatar, allocated to them as soon as they enter the store. The products that they pick up are automatically detected and then added to their virtual basket. Once they have finished shopping, customers just get their baskets validated at a kiosk and then pay contactless. They can get an electronic receipt sent to them immediately simply

    by scanning a QR code. An automatic checkout kiosk is also available for any customers wishing to pay with cash.

    Carrefour Flash was tested at Carrefour’s head office in Massy over more than a year, during which the Innovation team was able to refine the technology and adapt the concept based on feedback from the employees using it on a daily basis.

    In March 2021, Carrefour Brazil launched Flash Scan & Go – a store where customers can use their smartphones to shop and pay for the products they want to take home. 6 such stores are currently in operation in Brazil, and the subsidiary is planning on opening another 8 or so before the end of the year.

    And in September, Carrefour launched its “Carrefour City+” concept in Dubai alongside Emirati partner Majid Al Futtaim.

    “The Flash concept checks our customers’ expectations. They want to be able enter the store easily, know what they are buying, pay quickly and then leave. Compared with other existing concepts, with Carrefour Flash, customers get speed and accessibility in a unique way”, said Elodie Perthuisot, the Carrefour Group’s Executive Director of E-Commerce, Data and Digital Transformation.

    “Following our initial testing in Massy, we are proud and delighted to be launching this store with Carrefour. Flash is definitely one of the stores with the most advanced technology in the world”, said Ying Zheng, Co-founder and President of AiFi.

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  • Best Mart 360 plans mainland foray

    Best Mart 360 plans mainland foray

    Hong Kong-headquartered, self-described “leisure food retailer” Best Mart 360 is on track to open its first store in Mainland China this month ahead of a broad expansion across the border.

    The company set up a wholly-owned subsidiary in Shenzhen and relocated Hong Kong staff to open an office in the city’s Futian district earlier this year. In a statement announcing its half-year results, Best Mart 360 said the first store will open in Shenzhen later this month “with the objective of expanding its operating model to other cities in the Greater Bay Area, thereby extending the group’s sales network to the whole nation”.

    The expansion plan follows a 10-per-cent increase in its Hong Kong and Macau store network to 129 stores in the year to September 30 as it sought opportunities to open in shopping centers and local residential communities instead of a previous focus on tourist areas.

    In September, the company also opened the first of a new retail concept called FoodVille in Tseung Kwan O, which it describes as a global gourmet store. Responding to the consumer trend of preparing more meals at home, prompted by Covid-related restrictions on dining out, the store stocks medium-to-high-end quality food products including wines, chocolates, health foods, cheeses, western sauces and ingredients from around the world. An unspecified number of FoodVille stores in Hong Kong are planned, with the company targeting large and medium-to-high-end shopping malls in the city “as well as stores with larger area and locations with high customer traffic and population density”.

    And in another expansion initiative, Best Mart 360 says it is looking to enter the B2B space by wholesaling its private-label products and other imported goods to other Hong Kong retailers, as well as distributors or retailers overseas.

    Sales derived from private-label products in the company’s own stores nearly doubled during the period and now account for about 16 percent of turnover. Best Mart 360 now has 11 private labels covering more than 150 products, including masks, canned Chinese delicacies, cereals, milk, honey, nuts and dried fruits and a wide range of leisure food products.

    While Best Mart 360’s Hong Kong stores have typically had small footprints, the company says it will be looking for larger sites in the future to enable it to expand its range of products and a more comfortable shopping experience for customers (Its smaller stores are renowned for being crowded.)

    The retailer says it sold some 3000 SKUs from 900 brands during the period and that it is continuing to broaden its range while also discontinuing less popular products to make way for new lines. It expanded its range in the frozen and chilled food, sauces and condiments, Chinese delicacies, dairy products, and alcoholic beverage categories to meet market demand and changes for these daily household food products during the pandemic.

    In the six months to September 30, Best Mart 360 recorded revenue of US$110.7 million, representing a 21.7-per-cent improvement over the same period last year, which is attributed to its expansion strategy and the optimization of its product mix. Same-store sales rose by 5.6 percent.

    Profit attributable to shareholders reached $2.9 million, down from $4.58 million, year on year, a decline the company attributed to the absence of subsidy income from the Hong Kong government to support businesses through the Covid crisis. Excluding that from last year’s results, profit attributable to owners was up 56.5 percent.

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  • AirAsia clarifies high fares

    AirAsia clarifies high fares

    AirAsia has denied that its airfares between the Peninsula and Sarawak are high as well as its unavailability for the Christmas and state election period.

    The low-cost airline operator said it has engaged continuously with the Ministry of Transport Sarawak (MoTS) and submitted applications to permanently increase its scheduled flight frequencies from Peninsular Malaysia and Sabah into Sarawak on several occasions since early this year, including the latest request submitted last week which included the operation of extra flights for the upcoming holiday season, Christmas and Chinese New Year.

    The airline said it received confirmation from MoTS and the Sarawak State Disaster Management Committee (SDMC) today for an additional 42 weekly flights from Peninsular Malaysia and Sabah into the state for a limited period from Dec 4 to Jan 5, 2022.

    This has brought the fares down from around RM1,000 one way to below RM200 for a Kuala Lumpur to Kuching flight and these were very quickly snapped up, it said.

    “AirAsia wishes to clarify its position with regards to the views and concerns expressed on social media that the airline is charging high fares for flights between Peninsular Malaysia and Sarawak for the upcoming Christmas and holiday season that coincides with the state election scheduled for Dec 18”, it said in a statement.

    Chief Executive Officer of AirAsia Malaysia Riad Asmat said as a low-cost carrier, the airline is in a volume business to pass on the lowest fares to its guests.

    “AirAsia’s operation is all about economies of scale where we need to achieve a high passenger volume so that costs can be spread among a sizable number of passengers, allowing us to offer travelers low fares and giving them great value for money.

    “Historically, our average fare for flights between Sarawak and Peninsular Malaysia has been around RM160 per one-way passenger. This takes into account the highest fares and the lowest, including when we offer zero fare promotional sales,” he said.

    Riad said AirAsia’s pricing model is similar to other airlines around the world and is based on supply and demand.

    “In abiding with the limited flight frequencies imposed by the SDMC resulting in a reduced supply of flight seats, AirAsia’s demand-based dynamic pricing mechanism has inevitably derived prices seen as unfavorable to buyers at this time. It must be remembered that this is also the same mechanism that we used to offer guests promotional fares from as low as RM99 one way earlier in October,” he said.

    He added that as a general rule, fares will be higher, closer to the travel date, and during peak holiday periods when their flights are already near full.

    “Buyers have already taken up to 90 percent of our capacity on most flights. The limitation on the number of flights available in the market is a key factor that has pushed the prices higher across all airlines”.

    Riad said for the record, AirAsia used to fly over 300 weekly flights into Sarawak pre-Covid, connecting Kuching, Sibu, Miri, and Bintulu to Kuala Lumpur, Penang, Johor Baru, Kota Kinabalu, and various other destinations in Malaysia.

    “Just for Kuala Lumpur – Kuching alone, we used to fly between 12 and 15 flights daily on this hugely popular route before Covid, but with the latest approval today, AirAsia will be flying 5 daily flights between Kuala Lumpur and Kuching which is a 67 percent reduction in our capacity due to the restrictions by SDMC.

    “We comprehend that demand is there but at the moment we are unable to meet it until more flight approvals are given,” he said.

    Riad also expressed AirAsia’s sincere appreciation to SDMC and MoTS for the additional flight approval for the Christmas holiday season.

    “However, we would like to appeal to MOTS and SDMC to also approve our request for extra Chinese New Year flights, and to remove frequency restrictions on all the approved flights entirely to enable us to better manage cost efficiency and lower the fares for passengers.”

    AirAsia, Riad said has always pledged its full commitment and support towards the full reopening and resumption of travel and tourism activities in Sarawak.

    They were also looking forward to keep working closely with all relevant regulators, the federal and state governments, civil aviation and health authorities, and tourism bodies to ensure the highest conformity to standard operating procedures for every flight.