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Tag: airasia

  • The airline founder building Asia’s next super app

    The airline founder building Asia’s next super app

    AirAsia’s founder Tony Fernandes is building what he hopes will be the region’s next “super app” as he deals with the coronavirus travel downturn. He wants to rival the likes of Grab, GoJek, and WeChat with an all-in-one app for food delivery, shopping, payments, entertainment, and travel. As the airline’s boss, he has been looking at new ways to generate income while his planes were grounded. AirAsia has struggled during the pandemic and cut 30% of its staff.

    Mr. Fernandes said he has spent his time during the travel slump improving the AirAsia app and the company’s payments platform BigPay.

    “The downturn was a blessing in disguise in some ways as it allowed us to focus more on it. Running an airline takes up a lot of our time but we have been given the opportunity and time to focus on our digital business.”

    AirAsia already has a “rich database” of over 60 million users as its starting point. The AirAsia app, which also offers users a messaging service, has set its sights on super apps like Singapore-based Grab, Indonesia’s GoJek, and China’s Meituan.

    “AirAsia has always been a digital company. We were one of the first airlines to sell online. It’s in our bloodstream,” added Mr. Fernandes, who is also a major shareholder of English football club Queen’s Park Rangers (QPR).

    “I know a super app sounds like a lofty target but Grab and GoJek also started out small as food or mobility apps. Plus people also questioned me the same way when I said I wanted to start AirAsia.”

    Mr. Fernandes’ airline has now grown to become Asia’s biggest budget carrier. Last year AirAsia launched its own record label called RedRecords in partnership with Universal Music. The aim is to discover stars from South East Asia who will appeal to a Western audience. The first major signing, Thai pop star Jannine Weigel, has already built up millions of followers across social media.

    “Boy have we got something special with the record label. The Koreans have shown how Asian music can appeal to a global audience with K-pop and there is huge potential for southeast Asia.”

    “This also helps us engage with a younger audience and gives lots of content for our app.”

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  • AirAsia X to implement further payroll cut next month as losses swell

    AirAsia X to implement further payroll cut next month as losses swell

    AirAsia X Bhd’s net loss for the second quarter ended June 30, 2020 (2QFY20) widened to RM305.24 million, 47.4% more than the RM207.11 million it recorded a year ago as the airline bore the full brunt of travel restrictions implemented to curb the Covid-19 pandemic.

    AAX sees more turbulence ahead due to uncertainties surrounding the lifting of travel restrictions, which have grounded most of its aircraft fleet.

    The low-cost carrier revealed that its severe liquidity constraints persisted. “In the short term the company will need to seek agreement with major creditors to restructure outstanding liabilities, which have accrued during the period since the start of the Covid-19 pandemic, in order to continue as a going concern,” AAX said in its quarterly financial result announcement.

    Meanwhile, the carrier continues to seek payment deferrals and concessions from its suppliers, lessors, and lenders. “Further payroll reductions will be implemented in the next month to reflect the significantly lower level of operations both at the current time and also when the company is able to start operating again,” it added.

    However, the quarter’s performance was an improvement over the preceding quarter’s in which the long-haul low-cost carrier posted its largest-ever net loss of RM549.7 million due to large foreign exchange losses and losses from the hedges against higher crude oil prices.

    Quarterly revenue shrank to barely RM91.44 million compared with the RM1.01 billion reported a year ago as AAX operated only 16 scheduled flights throughout the three months versus 4,824 a year ago.

    Its total cash balance contracted almost 30% to RM252.04 million from RM357.96 million at the end of last year. Deducting pledged deposits, its cash pile stood at RM211.94 million, a drop from RM307.85 million previously.

    The airline’s current liabilities ballooned by nearly 31% to RM3.38 billion from RM2.58 billion as at end-2019. The spike in its current liabilities was mainly attributed to trade and other payables, which rose to RM1.31 billion from RM823.81 million.

    “AAX will not be able to restart scheduled operations until international borders reopen and, in recognition of the current degree of uncertainty and the timing of the lifting of restrictions, the company has stopped selling tickets for future travel dates,” said the carrier.

    Shares in AAX closed unchanged at 6.5 sen today, giving the airline a market capitalization of RM269.63 million. Year-to-date, the counter has plummeted by more than half from 15.5 sen.

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  • AirAsia’s 1Q e-commerce sales leap 118%

    AirAsia’s 1Q e-commerce sales leap 118%

    Budget airline AirAsia Group Bhd saw revenue from its e-commerce platform, AirAsia.com, rose 118% year-on-year in the first quarter of this year as it rolled out new offers, promotions, flights and hotel bundle packages.

    “As travel continues to gradually resume, more activities are authorized… which in turn will support the growth of our non-airline business divisions, particularly in the lifestyle, e-commerce and media verticals,” said AirAsia.com chief executive officer Karen Chan in a statement today.

    AirAsia anticipates that its airline and ancillary revenues will gradually stabilize as non-airline revenues become a key driver of growth and business priority.

    “In the future, we foresee our non-airline revenues will outperform our airline performance which is why our focus is on offering innovative products that encompass travel, lifestyle, e-commerce and media verticals, in both the B2B and B2C segments,” said Chan.

    “While Asean is our home and domestic travel is our short-term focus, we look forward to the reopening of international borders to realize the potential of AirAsia.com,” she added.

    In anticipation of international borders reopening soon, Chan said AirAsia is in final stages of discussions with key international airlines to connect their European and MEA networks directly with AirAsia’s vast Asean network.

    “These strategic partnerships will complement our existing partnership with Kiwi.com, which provides a virtual interlining and connectivity optimization engine to offer a one-stop-shop, best-price-guaranteed service for our customers.”

    The airline wants to position AirAsia.com as a leading one-stop travel and lifestyle e-commerce platform in Asean, offering products from flights, hotels, travel activities, shopping and more.

    Chan said AirAsia has always regarded Asean as its playground, connecting its 640 million people to 160 destinations across Asia and the Pacific. “But with the pandemic still at large and continued restrictions to cross-border travel, we are looking at creative ways to overcome these limitations.”

    For now, the focus for AirAsia.com is to promote domestic travel until international borders reopen and travel restrictions are relaxed.

    “Given AirAsia’s dominant market position (with over 73% market share in capacity in Malaysia), we are using our position of strength to stimulate domestic air travel where there is demand.

    “Going back to our DNA which is all about making travel affordable for everyone, we will continue to innovate with more exciting products, leveraging on our one-stop travel shop ecosystem and focusing on our business divisions which are most relevant given current market conditions,” said Chan.

    “Based on our recent market survey, close to 45% of travelers want to travel immediately post lockdown. Flight searches on our website have increased by more than 150% post-hibernation period and as of June 2020, AirAsia.com receives 1 million daily active users.

    “Our domestic travel promotions have been very well-received. We sold over a million seats group-wide in July and we continue to ramp up capacity. With restrictions on activities being lifted, we hope to achieve a load factor of 70%-80% by the third quarter of 2020,” she said.

    Chan noted that the aviation industry, being one of the heaviest impacted by the Covid-19 pandemic, is undergoing a period of consolidation — fare rationalization will be a natural outcome.

    “We continually review our products and innovate to best meet our customer’s needs, at unbeatable prices. We survived for 18 years in a hyper-competitive industry and became the leader of the low-cost carrier segment by providing the best prices, best Asean connectivity and best customer experience.”

    Under its recently-launched Unlimited Flight Pass in Malaysia and Thailand, AirAsia sold more than 200,000 passes and has received many requests for the product to be introduced in other markets.

    “We are closely monitoring the domestic travel situation in all of our markets (that AirAsia operates) and are looking forward to extending the Unlimited Flight Pass to other markets such as Indonesia and the Philippines when flight restrictions have eased,” said Chan.

    To date, AirAsia.com partners close to 400 hotel chain properties and over 100 independent hotels across Malaysia, Thailand and Indonesia.

    In Malaysia, AirAsia.com is working closely with the Malaysian Association of Hotels to collaborate with more hotels, and hopes to increase its partnerships with independent hotels in Kuala Lumpur, Langkawi, Penang, as well as Sabah and Sarawak.

    AirAsia shares closed up one sen or 1.52% at 67 sen today, bringing a market capitalization of RM2.24 billion. A total of 11.91 million shares were traded.

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  • AirAsia.com, Agoda announce strategic partnership

    AirAsia.com, Agoda announce strategic partnership

    AirAsia.com, Asean’s fastest-growing travel and lifestyle e-commerce platform, and Agoda, the world’s leading digital travel platform, have announced a strategic partnership to spur travel activity in Southeast Asia and strengthen AirAsia’s super app offering.

    The partnership between the two major online travel service providers in the region harnesses the synergistic strengths of both digital platforms, it said in a statement here, today.

    Through the sharing of flight and hotel inventories, travelers will gain access to a more extensive multi-product selection, enjoy greater convenience and benefit from superior value.

    Initiatives from the collaboration include travel bundles, membership privileges, as well as joint product marketing. Customers of AirAsia.com can now enjoy more variety with over 600,000 Agoda properties, combined with AirAsia’s great value fares by booking through SNAP — offering flight and hotel packages with the best price guaranteed.

    The partnership with Agoda is part of AirAsia group-wide strategy to revitalize travel in anticipation of the reopening of borders in Southeast Asia in the near future, AirAsia Group group chief executive officer (CEO) Tan Sri Tony Fernandes said today.

    “We are taking the opportunity during this downtime to work innovatively with strategic partners like Agoda, so that we can better serve our guests’ travel and lifestyle needs. There are more strategic ventures in development, which we look forward to announcing when the time is right.”

    Agoda CEO John Brown said: “The public’s appetite for travel is still strong, and we believe that our collaboration with AirAsia will help take the hassle out of travel by helping travelers easily find great value deals as they venture out again.”

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  • AirAsia resumes KL-Singapore flights under RGL scheme

    AirAsia resumes KL-Singapore flights under RGL scheme

    AirAsia resumed its Kuala Lumpur to Singapore flights today, allowing cross-border travel for essential and official travellers, following the implementation the Reciprocal Green Lane (RGL) scheme by both countries.

    AirAsia Malaysia CEO Riad Asmat said both countries have taken relentless efforts and strict discipline in containing the spread of Covid-19, and the RGL is a first step towards reviving the economy, especially for those who have essential travel needs between both countries.

    “We look forward to seeing more ‘travel bubbles’ and ‘green lanes’ formed between countries with low infection rates or active cases, and proven pandemic curbing systems to facilitate the need for air travel.

    “At the same time, we urge all guests to adhere to the required regulations and follow the safety measures for a safe flying journey,” he said in a statement today.

    The flight departed from klia2 today at 11.50am to Changi International Airport, and returned to klia2 at 2.35pm.

    He said AirAsia will continue to review the suitability of introducing more frequencies between the two countries.

    “AirAsia would like to remind guests of travel requirements set by both countries under the RGL scheme, all inbound and outbound travellers for essential business and official travel between Malaysia and Singapore via the RGL are required to check their eligibility and travel requirements before their scheduled departure,” he said.

    More information on the matter is available on AirAsia’s Travel Requirements page.

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  • AirAsia’s charter flights to boost Malaysia’s medical tourism

    AirAsia’s charter flights to boost Malaysia’s medical tourism

    AirAsia is set to grow its medical tourism business by providing charter flight services from Indonesia, giving patients and medical tourists from Indonesia greater access to medical treatments and health services in Malaysia.

    On August 14, AirAsia welcomed its first international medical charter flight from Medan into Penang International Airport. The next medical charter flight from Indonesia will be from Jakarta to Kuala Lumpur on August 24.

    AirAsia set to grow medical tourism business with charter flight service from Indonesia

    The medical charter service will be expanded to other cities in Indonesia and soon develop into an end-to-end service offering under the AirAsia.com platform.

    AirAsia.com CEO Karen Chan said that the carrier is committed to connecting people to their critical needs amid Covid-19 travel restrictions.

    “These are stressful times for families with members suffering from chronic illnesses that require specialized medical treatments. AirAsia is working closely with medical institutions and government authorities to ensure inbound patients have a seamless traveling experience from Indonesia to Malaysia,” she said.

    She added that the airline will continue to work with strategic partners like Island Hospital in Penang, and with the full support of Malaysia Healthcare Travel.

    According to Chan, Indonesia as a country accounts for the highest inbound healthcare tourists arriving into Malaysia.

  • Financial aid for AirAsia crucial due to high multiplier effect

    Financial aid for AirAsia crucial due to high multiplier effect

    Financial assistance such as loans with easier terms to AirAsia Group is crucial in helping the struggling low-cost carrier to turn around as its recovery will bring about a huge spillover effect to the broader economy.

    AirAsia X  chairman Tan Sri Rafidah Aziz reportedly said easier loan terms will not only provide the carrier with operating funds but also create a high multiplier effect in boosting and reviving the country’s economy.

    She was quoted by Utusan Online as saying AirAsia is negotiating for bank loans with low-interest rates and longer tenures.

    “We have a multiplier effect from flights which is 12 times, with every RM1 we bring in, another RM12 given to (economic) sectors such as hotels, resorts and restaurants, ” Rafidah was quoted as saying in the report.

    She said countries understand, when the aviation industry opens, business people and tourists will come, so hotels and restaurants will resume operations and receive visitors

    According to Rafidah, support and financial assistance is needed by the airlines affected by the enforcement of the Movement Control Order (MCO) to curb the Covid-19 pandemic.

    She noted that no income is earned during the MCO period because flights in and out of the country are stopped while expenses continue to be incurred.

    Rafidah said the Covid-19 pandemic situation has not stopped AirAsia from continuing to find new flight destinations.

    However, she said, various aspects need to be looked at first including the number of visitors and fuel prices.

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  • AirAsia aiming to launch Muslim-friendly services including packages to perform Haj and Umrah

    AirAsia aiming to launch Muslim-friendly services including packages to perform Haj and Umrah

    AirAsia Group Bhd is aiming to launch Muslim-friendly services including packages to perform the Haj and Umrah.

    In the low-cost carrier’s management discussion and analysis in its Annual & Corporate Governance Report 2019 released July 29, AirAsia co-founder and group CEO Tan Sri Tony Fernandes said the airline was actively assessing the prospects of a number of products that cater to niche travel.

    “For example, we aim to launch Muslim-friendly services including packages to perform the Haj and Umrah.

    “We are also looking to enter the medical tourism space, a rapidly growing segment where we would be able to provide the full complement of visas, travel, accommodation, and insurance,” he said.

    He said the idea was to provide complete end-to-end services and experiences for travelers, who only need to search and click for what they want on their mobiles or laptops.

    Fernandes said while AirAsia adhered to its low-cost model to be able to grow our network and offer an ever-increasing range of exciting destinations for guests, it was not able to fully cushion itself from the vagaries of the operating environment.

    “Natural disasters, viral outbreaks, economic downturns, geopolitical upheavals – all of these can, and do impact travel,” he said.

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  • Budget airline AirAsia’s future in ‘significant doubt’

    Budget airline AirAsia’s future in ‘significant doubt’

    The future of Asia’s biggest budget airline, AirAsia, is in “significant doubt”, auditor Ernst & Young has said. Shares in the Malaysian-based airline fell by more than 17% on Wednesday after being halted earlier in the day.

    The airline’s founder and chief executive is tycoon Tony Fernandes, who also co-owns Queens Park Rangers (QPR) football club in the UK.

    The world’s airlines have been hit hard by the sharp fall in passengers due to strict coronavirus travel restrictions.

    Ernst & Young highlighted the airline’s huge debts in a statement to the Kuala Lumpur stock exchange late on Tuesday.

    It said AirAsia’s current liabilities already exceeded its current assets by 1.84bn ringgit ($430m; £340m) at the end of 2019, before the start of the pandemic.

    The Asian carrier’s financial performance and cash flow have been further hit by the grounding of its planes amid tight travel curbs and lockdowns.

    This slump and AirAsia’s financial performance “indicate the existence of material uncertainties that may cast significant doubt on the Group’s and the Company’s ability to continue as a going concern,” Ernst & Young said in its unqualified audit opinion statement.

    On Monday, AirAsia reported a record quarterly loss of 803.8m ringgit. The budget airline started suspending flights in late March.

    “This is by far the biggest challenge we have faced since we began in 2001,” Mr Fernandes said in a statement.

    “Every crisis is an obstacle to overcome, and we have restructured the group into a leaner and tighter ship.”

    “We are positive in the strides we have made in bringing cash expenses down by at least 50% this year, and this will make us even stronger as the leading low-cost carrier in the region,” he added.

    AirAsia said it was in talks over joint ventures and collaborations that may result in additional investment. It has also applied for bank loans and is weighing proposals to raise additional capital.

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  • All eyes on AirAsia X’s 1Q2020 results

    All eyes on AirAsia X’s 1Q2020 results

    Airasia’sfinancial performance in the first quarter of the year was below expectations, owing to the double whammy of the Covid-19 pandemic and low oil prices, which led to fuel hedge losses.

    As analysts predict more pain ahead for Asia’s largest budget airline, many anticipate losses at its long-haul affiliate AirAsia X Bhd to be worse and for AAX to be in greater need of a cash injection to stay afloat.

    AAX is due to release its first-quarter 2020 earnings results by this month after it was granted an extension of time by Bursa Malaysia. Until then, two analysts The Edge spoke to say they are not revising their full-year revenue and earnings per share (EPS) estimates given the volatile and uncertain market environment.

    In February, analysts raised concerns over AAX’s balance sheet. It had a cash balance of only RM358 million as at Dec 31, 2019, and borrowings of RM6.32 billion.

    With only RM224 million in shareholders’ equity and a market capitalization of RM394.07 million at last Thursday’s close, there is an urgent need for fresh capital injection, they say, adding that AirAsia may need to step in to provide support to AAX.

    “AAX can leverage on AirAsia Group’s balance sheet. AirAsia is still in a net cash position, giving it more room to maneuver. However, AAX focuses on long-haul flights and its flights remain grounded as the nation’s borders remain closed to overseas visitors and even then, people may not be prepared to fly long haul anytime soon,” an analyst from a foreign house tells The Edge.

    According to an investment banker, AirAsia is “still bankable”. The narrative is, however, different from AAX as its long-haul, low-cost airline model remains questionable, he adds.

    AAX’s net loss increased 62% year on year to RM489.48 million in the financial year ended Dec 31, 2019 (FY2019), owing mainly to lower-than-expected revenue. Revenue declined 4% y-o-y to RM4.39 billion in FY2019, owing to fewer passengers carried because of lower demand from 1QFY2019 to 3QFY2019.

    Since AAX’s listing on Bursa in 2013, only two of its financial years (FY2016 and FY2017) have been profitable.

    Year to date, the stock has declined 41%, closing at 9.5 sen last Thursday.

  • AirAsia Philippines reports 30% jump in sales

    AirAsia Philippines reports 30% jump in sales

    AirAsia Philippines said ticket sales were increasing as it gradually ramped up operations and offered flexible rebooking options amid the new coronavirus pandemic.

    The budget carrier, part of Malaysia’s AirAsia Group, said June ticket sales rose by 30 percent versus May, when major cites around the Philippines were still under lockdown rules.

    “AirAsia’s road to recovery has started and this has kept us in good spirits knowing that we are in the midst of the aviation industry’s upturn,” AirAsia Philippines CEO Ricky Isla said.

    “We are committed to gradually restoring our network. This month, we are glad to resume international flights, starting with Kuala Lumpur, where AirAsia’s headquarters is located,” he added.

    The company said it contributed to AirAsia Group’s recent record-breaking 41,000 single-day seats sold last June 24.

    For local flights, popular routes were Manila to Puerto Princesa and Davao. Flights to and from Davao similarly showed consistently high load factors throughout the month.

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  • Malaysia’s AirAsia in talks to raise more than $230m

    Malaysia’s AirAsia in talks to raise more than $230m

    Malaysian budget carrier AirAsia Group Bhd on Thursday said it was in talks to raise more than 1 billion ringgit ($234.52 million) in funds, a day after its auditor cast doubt on its ability to continue as a going concern.

    AirAsia, like other airlines, has been slammed by the coronavirus pandemic that has hammered demand for air travel. Its auditors have said its 2019 earnings were prepared on a going concern basis, which is dependent upon recovery from the crisis and the success of fundraising efforts.

    AirAsia said it was considering various fundraising options, including debt and equity, and looking to at least halve cash expenses this year.

    “We have been presented with proposals in various forms of capital raising, be it debt or equity, and are in ongoing discussions with numerous parties, including investment banks, lenders, as well as interested investors in seeking a favorable outcome for the group,” the airline said in a statement.

    Some financial institutions have indicated they would support a funding request of over 1 billion ringgit, it said.

    A part of the funding would come from a Malaysian government guarantee loan program, AirAsia said, adding its subsidiaries in the Philippines and Indonesia have also applied for loans.

    The airline has begun to cut jobs and salaries to save costs, and is working on extensions with lessors, it said.

    Earlier this week, the airline posted a first-quarter loss of nearly $200 million, its biggest quarterly loss since its 2004 listing.

    AirAsia has also sought payment deferrals from suppliers and lenders and halted all deliveries of Airbus SE jets this year.

    Equities research firm CGS-CIMB said AirAsia would need 3 billion ringgit in new funding to maintain a healthy cash position, adding capital-raising efforts could result in shareholder dilution.

    AirAsia’s shares rose 5%, after dropping as much as 17% in the previous session.

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  • AirAsia to lay off 30% of workforce

    AirAsia to lay off 30% of workforce

    AirAsia India is expected to let go of several of its employees as its part-owner, AirAsiaBerhad struggles to maintain its group operations across regions following the outbreak of coronavirus.

    AirAsia Berhad is set to reduce up to 30 percent of its workforce across regions including its Indian operations which it part-owns with Tata Sons as the group struggles to maintain its operations following the Covid-19 outbreak.

    Sources in the airline said that apart from salary reduction up to 75 percent, the group is seriously considering plans to let go between 25 percent and 30 percent of its entire workforce of about 20,000 across regions.

    An AirAsia India spokesperson, however, declined to comment on the possible measures being taken to retrench employees. As of December 2019, AirAsia India had a market share of 7 percent. It has a total fleet size of 30 aircraft and flies to 21 destinations across India.

    The airline sector is one of the most-affected industries since the outbreak of coronavirus across the countries. According to the airline consultancy firm CAPA, most airlines in the world could file for bankruptcy soon. “As the impact of the coronavirus and multiple government travel reactions sweep through our world, many airlines have probably already been driven into technical bankruptcy, or are at least substantially in breach of debt covenants.”

    As far as the airlines operating in India are concerned, CAPA said they are expected to incur a total loss of $3.6 billion during the first quarter of the current financial year. Cash reserves are running down quickly as fleets are grounded and what flights there are operate much less than half full, it said.

    Surprisingly, AirAsia India recently received its board’s clearance for increasing its borrowing limit by ₹1,000 crore to ensure it continues to pay leasing and parking charges for its grounded aircraft. AirAsia India is learned to be the first domestic airline to formally increase the borrowing limit. The decision to increase the limit from ₹500 crore to ₹1,500 crore was taken at a meeting of the shareholders in April.

    AirAsia India is a joint venture between Tata Sons, which owns 51 percent in the airline, and AirAsia Berhad. The special resolution was approved to carry out “existing and future financial requirements to support its business operations”

    AirAsia India, which has been struggling since it began its operations in June 2014, recorded a fourth-quarter net loss of ₹123.3 crore in FY19, which was 26 percent lesser than the same quarter in the previous year. It recorded revenues of ₹1,057.6 crore, a 65 percent increase from Q4 of FY18 on the back of a 38 percent increase in capacity, and a 19 percent increase in average fare.

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  • Tune Protect launches enhanced AirAsia Travel Protection with Covid-19 coverage

    Tune Protect launches enhanced AirAsia Travel Protection with Covid-19 coverage

    Tune Protect Group Bhd has launched its enhanced AirAsia Travel Protection, which now comes with Covid-19 protection benefits and is available in both Single and Annual Plans for both domestic and international travel, for AirAsia guests.

    In a statement today, Tune Protect said the enhanced Travel Protection is timely with the reopening of domestic travel and the discussion that has been initiated to reopen Malaysia’s borders to “green zones” countries as Malaysia phases into the Recovery Movement Control Order.

    It said the resumption of the travel and tourism sector is in line with the efforts in accelerating the country’s economic recovery and reviving the Malaysian travel and tourism industry, which was at a standstill due to Covid-19.

    “As AirAsia initiates domestic flights with new safety and health procedures, we have also put in place new and enhanced benefits to our existing Travel Protection, which include Covid-19 coverage to ensure ease and peace of mind of our customers during traveling,” said Tune Protect group chief executive officer Khoo Ai Lin.

    The Annual Travel Protection Plan starts at RM56 covering customers for an entire year from the date of activation, regardless of the frequency of travel. Customers can also purchase the Single Plan coverage when they are purchasing AirAsia plane tickets or any time before they fly, it added.

    AirAsia Group Bhd executive chairman Datuk Kamarudin Meranun said that while air travel remains one of the safest modes of travel, there had been an increase in awareness of the importance of travel insurance products in the last few months from the group’s sales channel. This enhancement is a great complement to the various end-to-end safety measures that have been put in place by AirAsia for its passengers to fly again with a peace of mind, protecting them beyond flying.

    “As travel begins to regain traction, we look forward to welcoming our passengers to fly with us again,” he said.

    The enhanced Travel Protection plan includes the Covid-19 Bereavement Allowance, Trip Cancellation, Daily Hospital Allowance and Compassionate Visit.

    “Tune Protect understands the needs and worries of travelers since the fight against Covid-19 is still ongoing. With the enhanced coverage that comes with our Travel Protection, travelers can put their worries to rest when making their travel plans with us or through AirAsia,” Khoo concluded.

    At the midday break, Tune Protect shed 1 sen or 3.03% to 32 sen, for a market capitalization of RM240.56 million.

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  • AirAsia Sold A Record-Breaking 41,000 Seats In One Day Last Week

    AirAsia Sold A Record-Breaking 41,000 Seats In One Day Last Week

    On Tuesday, low-cost carrier AirAsia sold a record-breaking 41,000 seats in just one day. This marks AirAsia’s highest post-hibernation sale day since it resumed domestic flight services in May.

    The official site hit an overall traffic growth of 170%. By the looks of it, the number will only increase going forward. Passengers are eager to fly again – whether to reunite with loved ones, for business purposes or just to travel.

    “We are encouraged by this positive trend, and we foresee this will continue in the coming weeks,” CEO Tan Sri Tony Fernandes said in a statement sent to Simple Flying.

    According to a statement sent to Simple Flying, the most popular destinations booked on June 23rd were for the following routes:

    • Malaysia: From Kota Kinabalu and Kuching to Kuala Lumpur
    • Thailand: From Bangkok to Chiang Mai and Hat Yai
    • Indonesia: From Jakarta to Denpasar and Medan
    • Philippines: From Manila to Puerto Princesa and Davao
    • India: From Delhi to Srinagar and from Bengaluru to Hyderabad

    In Malaysia, the Recovery Movement Control Order (RMCO) began on June 10th. The RMCO allows for the resumption of domestic travel. As such, all interstate travel has picked up since. AirAsia also introduced an ‘Unlimited Pass’ for those traveling within the state. Additionally, there is a 20% sale on all domestic flights in Malaysia, which undeniably led to the airline’s highest load factor post-hibernation.

    AirAsia’s flight ticket sales are picking up as more countries resume domestic travel. Photo: Getty Images

    AirAsia Group’s load factor hit 50%, with AirAsia Malaysia reaching a whopping 70%. Fernandes added,

    The airline has also focused on enhancing its safety and cleaning measures. On top of compulsory masks and social distancing measures, all cabin crew will don personal protective equipment (PPE) and wear masks and gloves. Cleaning measures are completed regularly for each aircraft.

    Specifically for AirAsia Philippines, cabin crew must wear a newly designed PPE in AirAsia colors – complete with a face shield, mask, and gloves.

    AirAsia introduced end-to-end contactless journeys for customers in May. With minimal contact needed, the airline hopes to keep its passengers’ minds at ease while going through the boarding and check-in process.

    These initiatives began on May 13th and included contactless payments at the airport, a Passenger Reconciliation System (PRS) for digitized boarding passes, and enhanced features to its mobile app.

    It seems that the Malaysian-based carrier handled the COVID-19 situation relatively well. Although it had to ground 96% of its fleet and halt Airbus deliveries, the airline has succeeded in enticing passengers with new promotions.

    Furthermore, the airline implemented initiatives targeted at helping vulnerable communities amid the virus outbreak. Earlier this month, the airline gave away 50,000 tickets to frontline workers and doctors.

    AirAsia’s uptick in sales shows that there is indeed a demand for domestic travel. Fernandes mentions the airline will increase its flight schedule to 50% of its pre-pandemic operations in the next few weeks.

    “Currently, we are operating 152 daily flights across the region. We look forward to the reopening of international borders in recognition of the fact that air transport provides the connectivity that is essential for the resumption of economic activities and the global recovery efforts”, he added.

    Once international borders reopen, there is no doubt the carrier will continue to have its sales numbers increase.

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