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  • AirAsia boosts third-quarter profit 5% amid strong revenue rise

    AirAsia boosts third-quarter profit 5% amid strong revenue rise

    AirAsia Group‘s third-quarter profit rose 4.6% to more than MYR264 million ($63.3 million) as revenue and passenger numbers increased.

    Revenue for the quarter ended 30 September was up 18% at MYR3.07 billion. Group-wide traffic likewise grew 18%, slightly lower than the 19% increase in capacity. This resulted in a two-point load-factor decline, to 84%.

    Expenses related to staff, maintenance and user charges rose amid expansion. Depreciation costs meanwhile grew, reflecting the adoption of a new accounting standard on leases.

    AirAsia made a net loss of MYR67.5 million as it took hits from foreign exchange and fair-value losses on derivatives. The previous year, it had made a MYR804 million net profit in the third quarter.

    On a nine-month basis, AirAsia‘s operating profit halved to MYR707 million, despite a 17% lift in revenue to MYR9.09 billion. Net profit shrunk 96% to MYR99.5 million.

    Across the airline operations, third-quarter EBITDA more than doubled to MYR662 million. The group’s overseas units in Indonesia, Philippines and Thailand all improved their performance, while the one in India narrowed its losses.

    Thai AirAsia‘s EBITDAR rose 20.5% to Bt1.32 billion ($43.7 million), while revenue grew 5.3% to Bt9.42 billion. The airline attributes a Bt761 million loss after tax to exchange-rate effects and notes that unit revenue is under pressure as a result of competitors’ low pricing.

    Indonesia AirAsia‘s third-quarter EBITDA was narrowly positive at Rp415 million ($29,000); revenue swelled 72% to Rp1.83 trillion. Net profit came in at Rp61.2 billion, reversing a Rp214 billion net loss in the same period last year.

    Philippines AirAsia‘s EBITDA came in at nearly Ps1 billion ($19.7 million), reversing a Ps1.32 billion loss in the same quarter of 2018. Revenue jumped 40% to Ps6.23 billion, and the operation’s net loss narrowed to Ps367 million.

    AirAsia India narrowed its EBITDA loss to Rs1.2 billion ($16.8 million), as revenue climbed 58% to Rs7.24 billion. Loss after tax was flat at Rs3.1 billion. AirAsia says the unit’s costs grew in line with capacity increases.

    Meanwhile, AirAsia Japan made a net loss of Y3.71 billion ($33.9 million).

    As of 30 September, the AirAsia Group had MYR2.18 billion in cash and cash equivalents – some MYR4.43 billion less than it had on the same date last year.

    AirAsia Group says newly delivered Airbus A321neos will be deployed on routes with high demand and constrained infrastructure, in an effort to reduce unit cost.

    In 2020, the group will make a net addition of 12 aircraft to its fleet. Malaysia AirAsia will not take any aircraft, while Thai AirAsia will remove three jets. Indonesia AirAsia and AirAsia Japan will each receive three jets, and Philippines AirAsia two. The bulk of the growth will be at AirAsia India, which will add seven aircraft.

    The airline group foresees a “positive… core performance” during the fourth quarter. It says: “As the group repositions the business to adapt to the evolving business environment along with new accounting treatment and restructured aircraft ownership, we look forward to a better year in 2020.”

  • AirAsia birthday extend to Thailand

    AirAsia birthday extend to Thailand

    Following on from the launch of low-fares and holiday deals in Kuala Lumpur earlier this week, Thai AirAsia is marking the group’s 18th birthday with more promotions.

    Promotional fares are as low as THB318 for BIG members and THB361 for a non-member on domestic routes from Bangkok to Ubon Ratchathani, Udon Thani, Chiang Mai, Phuket, Krabi, and Khon Kaen.

    On international routes, the deals include bargain fares to Can Tho, Danang, Ho Chi Minh, Macau, Jaipur and Shantou.

    A return flight plus a two-night hotel package has a starting price of THB1,999 per person.

    Other deals include 8% off all add-on baggage selections and an 8% discount on a comprehensive insurance plan.

    The special fares are available on airasia.com and the AirAsia mobile app until 1 December for travel from 27 April 2020 to 1 March 2021. All-in fares including taxes and fees

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  • AirAsia Receives Its First Airbus A321neo by

    AirAsia Receives Its First Airbus A321neo by

    At a delivery ceremony in Hamburg, Germany, budget airline Air Asia took delivery of its very first Airbus A321neo. The event took place on Wednesday under grey skies and wet conditions. The narrowbody long-haul jet will begin operating this week from AirAsia’s hub in Kuala Lumpur to cities across Asia. Destinations already identified include Kuching and Kota Kinabalu

    The Star also reports that it had its ferry flight back home after the ceremony, with over 30 media personnel from the Southeast Asian region as well as AirAsia staff. According to sources included FlightRadar24 and Planespotters, the airplane has been assigned the registration 9M-VAA and includes a unique and ‘funky’ livery.

    “We could not be more thrilled that it will be the new backbone of our operations across the AirAsia Group. With the 25% increase capacity and 10% reduction in cost per seat, the A321neo will enable us to maintain low fares so ‘Everyone Can Fly!’…This new generation aircraft delivers significant capacity and cost benefits which we can pass on to our guests in the form of great value fares and it also unlocks exciting network expansion opportunities allowing us to fly the aircraft for an additional one and a half hours longer.” -AirAsia Indonesia chief executive officer Veranita Yosephine

    A recent Twitter post about the delivery (shown below) mentions that this is the first aircraft out of the 353 ordered from Airbus. In fact, the delivery of this particular model is part of AirAsia’s plan to move from its existing fleet of A320neo aircraft to the larger A321neo.

    AirAsia revealed the order for the A321neo at the Paris Air Show this year. The airline announced the conversion of 253 A320neos to the larger A321neos. This will make AirAsia the largest customer in the world for this type.

    The larger A321neo offers 50 seats more over the current A320neos. Furthermore, it also provides 40% more cargo space as well as “expanded seating capacity with optimized use of cabin space”.

    The upscaling of the order back in June was welcomed news for Airbus. Although the quantity of aircraft ordered stayed the same, all of them being converted from existing A320 orders marks the biggest order for the larger variant of the narrowbody to date. It also signifies a massive vote of confidence for the type.

    The A321neo is the longest variant of the popular A320 family of aircraft. In fact, with the new improvements of the neo (new engine option), there is an expected 20% increase in fuel efficiency from the A321ceo (conventional engine option). Efficiency features include new generation engines and fuel-saving Sharklets.

  • AirAsia and AirAsia X have been named best low-cost airline in Asia again

    AirAsia and AirAsia X have been named best low-cost airline in Asia again

    AirAsia and its partner airline AirAsia X have been jointly named the best low-cost airline in Asia Pacific again at this year’s Airline Excellence Awards by AirlineRatings.com.

    The award is judged by the Australia-based aviation website through a five-star rating system considering factors such as in-flight entertainment, cabin space and comfort, beverages, food, and seat recline.

    This is the second time the Malaysian low-cost carrier has bagged the award, after taking the title from Scoot in 2018.

    Geoffrey Thomas, editor-in-chief at AirlineRatings.com, said that the AirAsia win was “richly deserved” and that the airline is in a “dominant market position”

    “These airlines have made travel affordable for tens of millions throughout Asia, and they offer outstanding value and a great experience,” he added.

    In June, AirAsia has also named the world’s best low-cost airline at the Skytrax World Airline Awards.

    AirAsia Group chief executive Tony Fernandes said in a statement that the airline will continue to focus on “delivering the very best value airfares for short, medium and long haul travel throughout Asia Pacific”.

    The airline is currently looking at slashing fuel burns to help keep airfares low through the new additions of Airbus’ A330 neo wide-body and A321 Xtra Long Range aircraft.

    Benyamin Ismail, AirAsia X’s chief executive officer, said that the two aircraft will provide the carrier with the “lowest possible operating costs to expand its network and enable even more people to fly further for less”.

    This will allow AirAsia X to further expand into markets like Australia, and “explore new longer haul markets including Europe, which are currently under review,” he added.

    The two Kuala Lumpur-based airlines have 272 total aircraft today, flying to more than 150 destinations in 25 markets.

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  • AirAsia to start selling competitor flights on website

    AirAsia to start selling competitor flights on website

    AirAsia has expanded its online offering to include flights on other airlines as it transforms airasia.com into Asia Pacific’s leading travel and lifestyle platform. This was done in partnership with leading travel technology company Kiwi.com. Powered by Kiwi.com, AirAsia’s website users will be able to book travel on more than 100 airlines to destinations currently not served by AirAsia, including Europe, Australia, New Zealand, the Middle East, and the Americas.

    airasia.com head of airline distribution Rajiv Kumar said in addition to the strategic partnership with Kiwi.com, which is focused on content and technology sharing, AirAsia is also exploring opportunities to partner directly with airlines and companies who complement our existing network and travel services beyond Asia Pacific.

    airasia.com CEO Tony Fernandes said, “Today is an unbelievable day. When we started AirAsia as a low-cost airline back in 2001, I never thought one day we would be selling our competitors. But if there’s one thing I’ve learned, it never says never. Never say never and believe the unbelievable. Today, with the help of Kiwi.com, we are reinventing ourselves as more than just an airline, bringing to life our vision for airasia.com to be the region’s one-stop travel shop.”

    Kiwi.com CEO Oliver Dlouhý said, “I’m extremely proud that Kiwi.com has been selected to power AirAsia’s transformation and its ambition to make airasia.com a leading travel and lifestyle platform. We have an abundance of airlines and ground carriers at our disposal and together with AirAsia and its enormous customer base, we are proud to be able to open their platform to the rest of the world.”

    To celebrate the announcement and its partnership with Davis Cup by Rakuten, which takes place on 18-24 November 2019 in Madrid, Spain, AirAsia has kickstarted a global marketing campaign featuring its very own Spanish Allstar, airasia.com. The campaign was launched at AirAsia’s global headquarters RedQ in Kuala Lumpur to much fanfare with a promotional all-in return fare to Madrid from Kuala Lumpur, Bangkok, Jakarta, and Sydney.

    The campaign comes off the back of the company’s reorganization, which separates AirAsia’s airline operations from its travel and lifestyle arm, airasia.com. Since the reorganization was announced in August this year, more than 700 Allstar staff have been recruited, and in addition to being based across Asia Pacific, a new airasia.com campus will open in central Kuala Lumpur early next year.

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  • AirAsia bags Airline Treasury Team of the Year award

    AirAsia bags Airline Treasury Team of the Year award

    AirAsia has bagged the Airline Treasury Team of the Year at the Asia Pacific Aviation 100 awards.

    In a statement today, the low-cost carrier said the Airline Economics Magazine Aviation 100 awards recognize the air travel industry’s most outstanding performers, as well as the most innovative and successful finance and leasing deals,  closed in the last 12 months.

    AirAsia said it won the Airline Treasury Team of the Year based on the company’s efficient fundraising deals that translated to strong financial performance as well as impressive fleet expansion activities.

    In the 2018-2019 year, AirAsia sealed two major aircraft portfolio deals with BBAM and Castlelake LP for a combined US$3.6 billion.

    The completion of the two transactions involved more than 100 aircraft and proved the team was not only efficient in their fundraising efforts, but also able to design financing structures which were not prevalent in typical aircraft financing transactions.

    This year, AirAsia also made global headlines with two significant commitments for new aircraft.

    At the 2019 Paris International Airshow, the company announced it would upsize its future Airbus single-aisle fleet, by converting orders for 253 Airbus A320neo to the larger Airbus A321neo.

    In August 2019, its long-haul affiliate AirAsia X expanded its order book with Airbus by signing a US$5 billion agreement for 12 Airbus A330-900 and 30 A321XLR aircraft.

    AirAsia Group Bhd chief executive officer Tan Sri Tony Fernandes said the sale of its aircraft leasing operations was the culmination of a long-running strategy to dispose of the group’s physical assets, and by doing so, it was able to monetize the aircraft at high prices and reduce residual risk.

    “This strategy has allowed us to invest that cash into a fleet expansion program and our many digital ventures, while at the same time provide shareholder returns and accelerate our vision to become Asia Pacific’s leading travel and financial platform company.

    “This would not have been possible without my incredible aircraft finance team, and I can’t think of anyone else more deserving to win Airline Treasury Team of the Year,” he said.

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  • AirAsia India plots growth to 100 aircraft by 2025

    AirAsia India plots growth to 100 aircraft by 2025

    AirAsia India is planning to accelerate its growth and hopes to increase its fleet fourfold to 100 aircraft in the next five years, an unnamed company source told industry publication TravelBiz Monitor.

    “We have firmed up plans to add 14-15 planes every year starting next year for the next five years. We have remained a small player in the Indian market till now with just 23 planes, which will increase to 29 planes by the end of December,” the executive said.

    According to the ch-aviation fleets advanced module, the Indian LCC, a 51/49 joint venture between Tata Sons and AirAsia Group, currently operates twenty-three A320-200s and is in the process of adding the twenty-fourth unit.

    The airline will be adding aircraft both transferred from other AirAsia Group units and directly from lessors. Out of its current 23-strong fleet, 11 aircraft were previously operated by AirAsia, while the remaining 12 came from other carriers.

    The carrier said earlier this year that its growth plans for 2020 include the addition of the first A320-200neo.

    AirAsia India will focus its growth on existing routes as it plans to add more frequencies rather than launch new, low-frequency routes.

    “There is no point staying a marginal airline on various routes. The focus will rather be on strengthening our position on routes that we are in,” the executive said.

    According to the ch-aviation capacities module, AirAsia India has a 6.8% market share by capacity on the Indian domestic market, compared to 46.4%, 16.0%, and 10.5% shares of its LCC rivals IndiGo Airlines, SpiceJet, and GoAir.

    Meanwhile, the carrier’s Malaysian parent said it will add capacity on its Kuala Lumpur Int’l-Singapore Changi route, using A330-300s operated by AirAsia X to launch an additional two daily services between the cities. According to the ch-aviation schedules module, AirAsia currently operates 59x weekly between Kuala Lumpur and Singapore with all flights operated by A320-200s.

    The carrier’s A320s seat up to 180 passengers, while AirAsia X’s A330-300s have 365 economy class seats and 12 premium class seats. AirAsia has a 21.6% market share by capacity on the Kuala Lumpur Int’l-Singapore Changi market.

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  • E-sports set to fly high with AirAsia backing

    E-sports set to fly high with AirAsia backing

    E-sports are set to take off in a big way with the two head honchos at AirAsia giving their full-fledged support.

    According to Allan Phang, president of the AirAsia All-Stars E-Sports Club, Tan Sri Dr Tony Fernandes, Group CEO, AirAsia Bhd, and Datuk Kamarudin Meranun, executive chairman, AirAsia Bhd, have been very “visionary and supportive” when it comes to e-sports as the low-cost carrier is among the first airlines to back e-sports on a regional scale.

    AirAsia was the main strategic partner of the World Electronic Sports Games Southeast Asia (WESG SEA) Regional Finals, which concluded at the Quill Convention Centre in Kuala Lumpur last weekend.

    Phang said AirAsia made its first foray into e-sports in 2017 with the setting up of the AirAsia All-Stars E-Sports Club.

    “The club had about 10 members upon its inception, but now there are more than 200 members,” said Phang, underlining the surging popularity of e-sports and its future direction.

    As Agri Mind, the organizers of the WESG SEA Regional Finals, have a long-standing relationship with AirAsia, they were able to push through the initiative for the low-cost carrier to come onboard as a partner.

    “AirAsia provided support in terms of flights (to the gamers), which was in support of the e-sports ecosystem, in line with the government’s initiative,” said Phang.

    He added that there are four key verticals of AirAsia’s role in the burgeoning e-sports arena: employee engagement, employer branding, e-sports tourism and supporting the eco-system by way of sponsorship through teams and events.

    “AirAsia is targeting the next generation of consumers as it realizes that the government wants to connect with the youth e-sports generation,” said Phang.

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  • AirAsia India plans to take fleet size to 100 in five years

    AirAsia India plans to take fleet size to 100 in five years

    New Delhi: After growing at a very slow rate in its first five years of operations, AirAsia India plans to expand its fleet more than fourfold to 100 aircraft in the next five years. “We have firmed up plans to add 14-15 planes every year starting next year for the next five years. We have remained a small player in the Indian market till now with just 23 planes, which will increase to 29 planes by the end of December,” said a senior executive, who did not wish to be identified.

    The executive said the lowcost carrier, a 51:49 joint venture between Tata Sons and Malaysia’s AirAsia Berhard, will become an impactful player in the market once its fleet grows to 50 aircraft. The market is dominated by IndiGo, which operates a fleet of about 250 aircraft. “While we will continue to add aircraft under the current model by getting aircraft from AirAsia Berhad, we will also look at leasing planes directly from lessors,” said the executive.

    The airline’s expansion plans focus on strengthening the network on existing routes rather than adding new routes. “The philosophy is simple: There is no point staying a marginal airline on various routes. The focus will rather be on strengthening our position on routes that we are in,” said the executive, adding that both the promoters would put in funds for expansion. AirAsia India, which started operations in 2014, is the smallest scheduled commercial airline in the country. In the ongoing winter schedule, which began at October-end, the airline has increased its flights by 326 departures to 1,345 departures per week.

    With a reduction of nearly 3,600 weekly departures because of the sudden suspension of operations by cash-strapped Jet Airways on April 17, other airlines are seeking to fill the gap by launching new flights.

  • Cebu Pacific, AirAsia launch new domestic routes

    Cebu Pacific, AirAsia launch new domestic routes

    Low-Cost carriers Cebu Pacific and Philippines AirAsia, Inc. started operating new domestic flights. The Gokongwei-led Cebu Pacific launched a direct flight between Cebu and Busuanga, which is the gateway to Coron, Palawan. The operation of the Cebu-Busuanga flights is being carried out by Cebu Pacific’s wholly owned subsidiary Cebgo.

    “The first flight departs Cebu at 7:25 a.m., and arrives in Francisco B. Reyes Airport at 9:00 a.m.; while its return flight leaves Busuanga at 9:20 a.m. and arrives in Cebu at 11:00 a.m.,” Cebu Pacific said in a statement on Monday.

    “The second flight leaves Cebu at 10:25 a.m., and lands in Busuanga at 12:05 p.m.; while its turnaround flight departs at 12:25 p.m. and arrives at 2:10 p.m.,” it added.

    Apart from the new Cebu-Busuanga route, Cebu Pacific, along with Cebgo, flies to 37 domestic and 27 international destinations

    Meanwhile, Philippines AirAsia started offering its thrice-daily service between Manila and Bacolod on Monday.

    For the Manila-Bacolod route, the first 80-minute flight will depart Ninoy Aquino International Airport at 8:20 a.m., and the last one will depart Bacolod at 9:30 p.m.

    “We are excited to celebrate this milestone and to paint the Negros Island skies red. AirAsia’s presence in the region will make air travel more affordable not just for Negrenses but for everyone who wants to explore this part of the country,” AirAsia Philippines Chief Executive Officer Ricardo P. Isla said during the inaugural ceremony at the Bacolod-Silay International Airport on Monday morning.

    Bacolod is the 11th domestic destination that AirAsia Philippines operates out of Manila. Overall, the carrier has more than 500 domestic and international flights weekly coming from its hubs in Manila, Clark, Cebu and Kalibo.

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  • Air Asia flies to Okinawa

    Air Asia flies to Okinawa

    AirAsia announced, Wednesday, a new route from Kuala Lumpur to Okinawa Naha, strengthening its position as the Malaysian carrier with the most connections and capacity in Japan.

    The four times weekly service via Taipei commences 22 January 2020 (subject to regulatory approvals), and will be AirAsia’s sixth international destination in Japan, after Tokyo (Haneda and Narita), Osaka, Sapporo, Fukuoka and Nagoya (via Bangkok).

    AirAsia X Malaysia CEO Benyamin Ismail said: “Our rapid expansion into Japan continues following the launch of services to Fukuoka and Tokyo Narita earlier this year. Okinawa is an island paradise that offers a different Japanese experience for leisure travellers, including white sandy beaches with clear blue waters, some of the world’s most famous diving spots and unique Ryukyuan cuisine.

    “Like Fukuoka, we are building the foundation for more AirAsia flights to serve Okinawa in the near future, strengthening our regional network and allowing more travellers to discover the unique cultural heritage of this amazing destination.”

    Members-only fares from Kuala Lumpur to Okinawa Naha start from RM239* one-way on standard seats and MYR899* one-way on the award-winning Premium Flatbeds, available on airasia.com from today 31 Octoberat 1200 (GMT+8) until 2 November 2019 for travel between 22 January 2020 and 27 March 2020.

    Guests from Kuala Lumpur to Okinawa Naha are not required to obtain a visa during their one hour fifteen minutes stopover in Taipei and may return to their seats after clearing a quick security check of their carry-on bags and inflight belongings.

    Okinawa is one of Japan’s 47 prefectures comprising 160 islands in the East China Sea. With its unique cultural heritage and local cuisine, Okinawa has long been a holiday destination for the Japanese, while its subtropical climate, coral-fringed waters and relaxed way of life attract throngs of international tourists looking for an alternative to the hustle-bustle of major cities in mainland Japan.

  • Indonesia AirAsia names new chief executive

    Indonesia AirAsia names new chief executive

    Indonesia AirAsia (IAA) has named Veranita Yosephine as its new chief executive.

    IAA parent AirAsia Indonesia states in a stock exchange disclosure that Yosephine succeeds Dendy Kurniawan, who is now the president commissioner on its board of commissioners. The change was made at a shareholder’s meeting on 24 October.

    Yosephine’s LinkedIn profile states that she was the airline’s deputy chief executive since July. Prior to that, she served as sales director at Kraft Heinz between March 2017 and June 2019.

    Kurniawan joined AirAsia in May 2014 as chief financial officer at Indonesia AirAsia X (IAAX), before being promoted to chief executive seven months later. Sometime in September 2016, he was then named the Indonesia group chief executive overseeing both IAA and IAAX.

    Cirium had sought comments from IAA on the change in leadership, but it had not yet responded.

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  • AirAsia starts Bacolod-Manila flight

    AirAsia starts Bacolod-Manila flight

    Recognizing the huge tourism potential of Bacolod, low-cost carrier AirAsia has started flying to the Negros Occidental capital city as its 12th and only domestic destination opened this year.

    AirAsia chief executive officer Ricardo Isla said in a press conference at the Bacolod-Silay Airport that they are honored to be part of the city not only in providing socio-economic programs but also in boosting tourism.

    Isla said the airline knows Bacolod City will be one of its fast-selling destinations. Thus, it will continue to expand and build more programs in the near future.

    “This new route will pave the way for us to connect and promote this wonderful destination for its charming location, and of course its local food delicacies and beautiful smiles,” he said.

    He added that now that AirAsia is in Bacolod, “we are committed to offer our affordable products and services so everyone can fly.”

    Initially, the airline has six flight schedules daily — three each for the Bacolod-Manila route and vice versa.

    Its officials announced that ever since they started accepting bookings weeks ago, there were already around 10,000 booked seats for these flights scheduled from the late part of October to December this year.

    Given the initial bookings, they believe that there is a demand in Bacolod City and Negros Occidental.

    Isla, however, said because of their application that has been approved by the airport’s Terminal 4 in Manila with regards to parking and runway slots, the airline has maximized its resources or opportunities for a total of six flights from Manila-Bacolod and vice versa.

    He pointed out that every November and December, there is an increment of about 20 to 30 percent from the regular months.

    “So we are really expecting huge traffic not only for Manila-Bacolod, but also with our 11 other destinations,” Isla said, adding that given these figures, “if we can fly same with other provinces, it should be eight flights here.”

    The 10,000 booked passengers are only about 15 percent of AirAsia’s overall capacity of 64,000 for two months, particularly for its newest domestic route.

    Thus, it can still cater to over 50,000 more passengers, a figure which the airline company is upbeat to cover. Gilber Simpao, chief commercial officer of AirAsia, said the 10,000 booked seats for the next two months is a good start.

    Simpao said they can compare Bacolod versus other flights and that it is ahead of the curve.

    “We’re confident that it’s going to be a healthy route,” he added.

    For Bacolod City Mayor Evelio Leonardia, who was also at the press conference, having more players will always be healthy for the consumers, which is something they expect to happen.

    Citing the reputation of AirAsia and the impression toward it as less expensive, Leonardia said its presence will somehow equalize the playing field.

    “We are expecting AirAsia to be a game changer in Bacolod,” he stressed, adding that the more convenient for the people and more schedules of flights, the better for the city.

    In his speech during the welcome program, the city official said “this is a very much anticipated landing in Bacolod.”

    Leonardia said the 10,000 already-booked passengers are indications of good things to come.

    As he welcomed the new “member of the family,” Leonardia said AirAsia will change the complexion of things.

    “We would like to thank you for responding at a time when there was an uproar over pricing of airfares,” the mayor said, as he expressed hopes that AirAsia’s presence will somehow affect the so-called law of supply and demand.

    For AsiaAsia, making Bacolod City as its newest destination is both a personal choice and corporate decision.

    Lawyer Joseph Omar Castillo, chairman of the Board, said Deputy Speaker Michael Romero, whose family has the largest share at AirAsia, has close relations with the city officials.

    Castillo said the company also sees Bacolod as one of the key cities in the Visayas.

    “So we really wanted to be here for a long time,” he said, adding they waiting for a slot for a long time. “Good thing that we were given.”

    The airline opened only two new destinations this year. Aside from Bacolod-Manila, it also started flying to Osaka, Japan.

    The local government, it recognizes that tourism is going to be the biggest industry in the world. Thus, its programs and plans are also aligned to that.

    Leonardia said AirAsia’s presence will increase the tourism volume for sure.

    “Bacolod is trying to grow, trying our best to be one of the most progressive cities in the Philippines. Let’s grow together,” he added.

    The airline company takes pride in its purpose as a low-cost carrier.

    Simpao said AirAsia believes that flying is not just for rich people as they want everyone to be able to afford to fly.

    He said that when they looked at the market, Bacolod was one of the biggest unserved markets in their network.

    “People from Bacolod should be able to afford good value travel. So we need to be here,” Simpao added.

    Meanwhile, Isla pointed out that the price range varies depending on the timing. Meaning, if the booking is closer to the scheduled flight and if it is during the high-demand period then the airfare cost goes higher, he said.

    If the cost is lower compared to other airlines, it would be five to 10 percent but it still varies depending on the timing, Isla said.

    In terms of on-time performance, AirAsia has 80 percent rate.

    “Hopefully, we will maintain it considering that there is going to be an expected higher traffic in all our airports which most likely we will not encounter that problem in Bacolod,” he added.

    Potential hub

    The airline revealed that two to three more domestic destinations will be added probably by the first quarter of 2020.

    For other areas connecting to the city, officials said they are studying Cebu-Bacolod and Clark-Bacolod routes.

    AirAsia currently has four hubs in the country, namely Manila, Clark in Pampanga, Kalibo in Aklan, and Cebu.

    When pressed if they are looking at Bacolod as another hub.

    “The advance bookings it has are already indications that the focus right now is travelers going to Bacolod,” Isla said, stressing that “for now, there’s no plan but that is actually an option for the future.”

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  • AirAsia X plans for direct flights into Kazakhstan

    AirAsia X plans for direct flights into Kazakhstan

    AirAsia X , the long-haul arm of AirAsia Group Bhd, has met with the Civil Aviation Committee (CAA) of Kazakhstan to discuss the possibility of the airline introducing a direct flight from Malaysia to the Central Asian country.

    The New Straits Times learnt that the meeting was held between AirAsia Group executive chairman Datuk Kamarudin Meranun, AAX chief executive Benyamin Ismail and Kazakhstan CAA chairman Talgat Lastayev as well as representatives from Almaty, Nur-Sultan and Karaganda airports and Kazakhstan embassy to Malaysia.

    The meeting includes discussions on the potential for AAX to introduce a direct route from Kuala Lumpur to Kazakhstan as well as a presentation on the development of the aviation industry in Kazakhstan and the country’s adoption to the Open Skies policy.

    “The interest is there but we must do further research on how to introduce this plan. They (AAX) have expressed interest to use Kazakhstan as a hub for them to fly to the US and Europe,” a source said.

    The potential US and European cities that AAX might fly into include New York, Rome, Milan and Nice.

    The meeting was held at AirAsia’s RedQ office in Sepang on Tuesday.

    Recently, Kazakhstan President Kassym-Jomart Tokayev asked the country to adopt Open Skies policy and expand its international routes while attracting more foreign airlines.

    The sources said that although the move will pose a big competition to Kazakhstan-based airlines, it was time to open the country to the world with more flight connections.

    The move will also help to develop the Astana International Financial Center as well as the country’s tourism industry.

    “Kazakhstan is very excited to have AAX to introduce a direct flight, but of course this is all preliminary. But on Kazakhstan’s side, the country is ready to fully support them (AAX),” another source said, adding that the discussion also included incentives that would be given to the airline such as airport and tariff fees, and marketing support for flight promotion.

    Currently, the only direct flight available is from Almaty to Kuala Lumpur and vice versa via Kazakhstan’s national carrier, Air Astana.

    AAX would be the first international budget airline to fly into Kazakhstan should the carrier introduces the direct flight.

    Meanwhile, Kamarudin expressed his gratitude to Kazakhstan for showing strong interest and offering attractive airport incentives for the airline to fly to various airports in the country.

    “Having been to Kazakhstan, both Nur-Sultan and Almaty, it definitely suits our expansion plan and we have agreed in forming a working team from both parties to seriously explore this possibility.”

    “I would not be surprised to see the flights into Kazakhstan from any of our various hubs some time next year,” he said yesterday.

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  • AirAsia to link Lombok with Surabaya, Yogyakarta

    AirAsia to link Lombok with Surabaya, Yogyakarta

    Low-cost carrier AirAsia is set to launch new routes to Surabaya in East Java and Yogyakarta from Lombok, West Nusa Tenggara.

    The inaugural flight from Lombok to Surabaya will depart on Nov. 25 and be available four times a week, namely on Mondays, Wednesdays, Fridays and Sundays.

    The flight from Lombok International Airport Praya leaves at 8:35 p.m. local time and arrives at Juanda International Airport at 8.40 p.m. local time. The Surabaya-Lombok route, meanwhile, departs at 9.05 p.m. local time and arrives at 11.20 p.m. local time. Surabaya is one hour ahead of Lombok.

    The Lombok-Yogyakarta route will begin on Nov. 26 with thrice-weekly flights, namely on Tuesdays, Thursdays and Saturdays.

    The flight from Lombok will leave at 8.35 p.m. local time and arrive at Adisucipto International Airport in Yogyakarta at 9.10 p.m. local time. The return flight from Yogyakarta to Lombok will depart at 9.35 p.m. local time and arrive at 12.05 a.m. local time. Yogyakarta is also one hour ahead of Lombok.

    Both routes will use the Airbus A320, which has a capacity of 180 passengers.

    Veranita Yosephine, deputy CEO of AirAsia Indonesia, said the new routes were expected to boost Lombok’s tourism.

    “The routes also provide options for travelers in Lombok who wish to extend their vacation to destinations in East Java and Yogyakarta, and vice versa,” she said in an official statement.

    Tickets are available at the airline’s official website and app, with prices starting from Rp 446,000 (US$33.91). Promotions are available until Nov. 25 for the travel period of Nov. 25 to March 28, 2020, for AirAsia BIG members.

    As with AirAsia domestic routes, passengers are allowed free luggage of up to 15 kilograms on both routes.

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