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Tag: airasia

  • AirAsia aims international flights by October

    AirAsia aims international flights by October

    AirAsia India aims to start international operations in by October this year, its chief operating officer said Monday. The joint venture carrier between Tata Sons and Malaysian low fare airline AirAsia Berhad is looking at short haul destinations in Sri Lanka, Thailand and Kuala Lumpur airline recently received its 21st plane and aims to take the fleet size to 40 in a year, Kumar added. It operates 154 daily flights.

    Earlier this year the airline presented a plan to its board to deploy 40% of its fleet overseas in five years. The government had been investigating the airline for alleged irregular lobbying for international rights. Kumar didn’t comment on the probe but indicated its plans for starting flights by October were firm.

    AirAsia India last month got a boost from its parents by getting a fund infusion of Rs 500 crore for its expansion. That followed an overhaul of its top management, getting IndiGo veteran Kumar as COO and former Tata Steel chief Sunil Bhaskaran as CEO.

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  • AirAsia appoints Kris Taute to global communications role based in Kuala Lumpur

    AirAsia appoints Kris Taute to global communications role based in Kuala Lumpur

    AirAsia Australia PR and communications manager Kris Taute has moved to the airline’s Kuala Lumpur headquarters for a new global communications role.

    Taute had joined Air Asia last year, moving from the New South Wales state government, having worked for both Transport for NSW and for the state tourism body.

    In his new role as group manager communications for editorial, Taute will be responsible for the editorial communications of the airlines and its subsidiaries including  AirAsia and AirAsia X group of airlines, as well as lifestyle brands such as AirAsia Big Loyalty, travel360.com, Vidi, BigPay, RedCargo Logistics, Rokki, and Ourshop.

    In addition, Daphne Cheah is now ASEAN communications manager moving from a previous role as regional head green and sustainability.

    Taute has been replaced by Sarah Quinn who moves from Destination NSW and takes charge as PR and communication manager for AirAsia Australia.

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  • AirAsia, beyond 1Q19 and headline numbers

    AirAsia, beyond 1Q19 and headline numbers

    Tan Sri Tony Fernandes tweeted two months ago that AirAsia Group Bhd will have its “best year” in 2019, and so far headline numbers look okay, if not promising, at least for the first quarter ended March 30, 2019 (1QFY19). Jet fuel prices are at around its hedging price — 52% of its fuel needs in FY19 has been hedged at an effective exercise price of around US$78 (RM326.82) of jet fuel — while passenger load factor is expected to stay solid at 87.9%. The group chief executive officer (CEO) has also hinted that its Asean joint ventures would “perform well”.

    Notwithstanding that, AirAsia’s share price has been underweight so far this year ahead of the release of its 1QFY19 results, scheduled on Wednesday, probably because investors remain wary after the airline’s biggest loss-making quarter last year.

    MFRS16 on pricier sale-leaseback model

    AirAsia made two sale-leaseback deals with BBAM Ltd Partnership for US$1.185 billion (RM4.62 billion) in 2018 and Castlelake LP worth US$768 million (RM3.17 billion) in 2019 to lease back a combination of 108 planes to free up cash, pare debt and fund its digital venture.

    The higher operating lease expenses partly caused AirAsia’s RM394.97 million loss in 4QFY18, despite its 6.2% year-on-year (y-o-y) rise in revenue to RM2.82 billion on the back of a 16% jump in passenger count. Other main factors were higher fuel costs and a stronger US dollar against the ringgit in the period — both of which retreated temporarily in 1Q this year.

    But in 1QFY19, AirAsia will adopt the Malaysian Financial Reporting Standards 16 (MFRS16). This accounting practice recognises all lease assets and liabilities, including planes that are currently treated as off balance sheet operating leases.

    With the change, AirAsia’s operating lease expenses — which rose 73% y-o-y to RM1.13 billion in FY18 because of the sale-leaseback model — will be removed from the calculation.

    On the flip side, estimates show that MFRS16 will result in AirAsia’s profit before tax retreating by around RM400 million y-o-y for the whole of FY19. It may also front-load the lease expense of these planes at a depreciation of around RM3.5 billion and interest expense of RM1.1 billion in the same period.

    Fernandes, in his Twitter account, said the adoption of MFRS16 has no impact on the airliner’s cash position, arguing that the non-cash impact is “not very material” at around RM35 million a year.

    CGSCIMB Research, in an April 8 note, estimated that the group would book a net gain of RM174.3 million from the Castlelake deal in its profit and loss statement, with net cash proceeds of around RM891 million.

    Still, AirAsia is set to expand its fleet size from 226 planes in 2018 to 399 units in 2024, as it fully adopts the sale-leaseback structure from this year onwards. With 244 planes this year, AirAsia will book over RM11 billion of lease assets and liabilities on its balance sheet, while net gearing is expected to jump to 1.5 times. Analysts, meanwhile, confirmed that AirAsia management has guided there will be another special dividend this year, although the quantum has yet to be determined.

    AirAsia is committed to pay special dividends every two years. Recall its bumper FY18, which declared total dividends of 64 sen, inclusive of a 40 sen special dividend in 3QFY18, for a total of over RM2.14 billion.

    As at end of last year, AirAsia held cash equivalents of RM3.35 billion. TA Research in a note dated May 9 published its in-house estimate of AirAsia’s FY19 total dividend at 70 sen per share, ahead of the conclusion of the Castlelake deal.

    Others are more conservative until 1QFY19’s results are out. Full-year dividend estimates among analysts covering the stock, according to Bloomberg, average at 15.5 sen. CGSCIMB’s special dividend assumption was trimmed to 13 sen per share, from 19 sen per share previously, after lowering expectations on net cash proceeds from the Castlelake deal.

    Of 17 analyst calls on Bloomberg, AirAsia has seven “buy”, six “hold” and four “sell”. Twelve-month target prices (TPs), which range from RM1.50 to RM5.20, average at RM2.84. Of the total TPs, 35% were below its last close of RM2.45.

    The group, meanwhile, announced on April 26 that it is seeking shareholders’ approval for the proposed share buy-back of up to 10% of its total issued share. The last time it did so was in 2015.

    As in the past, AirAsia’s minority shareholders may approve both the special payout and the share buy-back.

    Beyond 1QFY19, the strengthening of the greenback against the ringgit and rising fuel costs are some of the things to watch out for. Amid strong load factors across its subsidiaries, market competition continues to put pressure on yields.

    In the horizon is the group’s digital venture, which Fernandes appears to be quite stoked about, given the number of his tweets referring to it of late. Come Wednesday, AirAsia could provide a breakdown of its digital businesses, which includes mobile payment app BigPay and one-stop travel platform, AirAsia.com.

    Fernandes told investors as early as March 1 to “look out” for AirAsia’s 1QFY19 results, which will provide a gauge on its operational changes. With its digital venture and changing market movements thrown into the mix, it remains to be seen if the stock will stay a darling among investors in the long run.

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  • AirAsia 3.0 to help save cost and enhance revenue

    AirAsia 3.0 to help save cost and enhance revenue

    After two years of working closely with Google and other data companies, AirAsia expects cost savings and revenue enhancement beginning next year. Group CEO Tan Sri Tony Fernandes told a group of analysts during AirAsia 3.0 investor day that he expected about 4% less fuel burnt after crunching numbers and using the right aircraft for specific routes. With hundreds and hundreds of other fuel initiatives including spare parts, he is looking at 10% to 15% cost savings by the end of 2020.

    All these initiatives to save costs and enhance revenue are part of the airline’s move towards digitization, which also allows it to be creative in its delivery and offering as well as personalize and segmentize its product offerings. This is made possible by analyzing all the data that it has.

    “On the revenue side, with all the rich data we have, we are able to serve customers better in terms of personalizing all that. We have never done promos, as we normally send e-mails, but now we will be much more proactive in filling up the planes.

    “We also now have the ability to dynamically adjust fares on the spot and all this will help us maximize revenue and save costs,’’ he added.

    As part of the AirAsia 3.0 initiative, the plan is to make the entire journey nicer and comfortable for the traveler while various new initiatives will be introduced.

    An analyst said in a report the AirAsia 3.0 plan would solidify the airline’s business via predictive maintenance, which would result in cost savings by FY20. It will enhance the online user experience by transforming AirAsia.com into all-in-one travel and lifestyle marketplace, facilitated by its mobile payment facility BIGPay.

    The carrier’s cargo arm would cover more networks while eliminating the layers in air cargo fulfillment process, the analyst said.

    Another research house said it “does not expect material earnings contribution in the near term from the implementation of the new business platforms.’’

    A foreign brokerage added that “near-term losses from these new initiatives, which are likely to drag already-thin margins in the core airlines business.’’

    AirAsia, according to Fernandes, has come a long way and was the first to revolutionize the way people travel low cost and used the Internet to sell tickets. But that did not come without skepticism and ridicule.

    Eighteen years on, AirAsia is Asia’s largest low-cost carrier that prides on online options to reach out to travelers. It has flown more than 500 million people and has 260 planes on leaseback arrangements to save cost. Ancillary income accounted for 9% of revenue back in 2008 but now it makes up 21%, or RM2bil, of revenue.

    Fernandes still sets sights on China and is working with a new partner to return to Vietnam. He is also bullish that AirAsia’s Indonesian and Philippine operations will be profitable soon.

    AirAsia group is expected to release its first-quarter 2019 results on May 29. A local research house has forecast core net profit of RM147mil (minus 59% year-on-year).

    “Management has done a good job to retain high load factors in first-quarter 2019. However, yields were exceptionally challenging in Malaysia, India, and Thailand due to softer consumer demand and stiffer competition.

    “We are also concerned on the group’s financial year 2019 growth plan to deploy a net addition of 18 aircraft. There has been no aircraft addition in first-quarter 2019, which implies that all the aircraft will be deployed in the subsequent quarters. We deem this as excessive under the current market conditions,” the research house said.

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  • AirAsia Opens Jakarta-Phuket Route

    AirAsia Opens Jakarta-Phuket Route

    “Currently the traveling trend continues to increase especially in the youth market, hence demand to open unique routes is increasing as well,” said AirAsia Indonesia president director Dendy Kurniawan.

    Phuket is one of Thailand’s biggest islands in the southern side and boasts various destinations, such as Phi Phi Island, Big Buddha statue in Chalong and Phuket Old Town. The carrier is currently offering promotional fares from Rp 583,000 (US$40.35) one way that can be booked until May 26 for a travel period between July 2 and Oct. 25.

    Other direct flights served by AirAsia from Thailand to Indonesia are Jakarta-Bangkok, Medan-Bangkok and Denpasar-Bangkok.

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  • Thai AirAsia parent Q1 operating profit halves

    Thai AirAsia parent Q1 operating profit halves

    Revenue for the quarter ended 31 March was flat at Bt11.6 billion, but expenses rose 10% to Bt10.5 billion. Net profit fell 50% to Bt497million. The company says that fuel costs rose during the quarter, as did airport and MRO costs. Despite this, the carrier’s CASK was flat compared with a year ago at Bt1.53 due to a 10% increase in ASKs and a longer average stage length.

    RPKs grew 9%, while load factor was flat at 91%. The carrier’s average fare for the first quarter was Bt1554, down 7%.b Cash and cash equivalents were Bt4.1 billion on 31 March, down from Bt5.97 billion a year earlier.

    In its outlook, the carrier notes that international trade frictions could hurt the global economy and affect exchange rates.

    “As the company has revenues and expenses in various different currencies such as passenger fares, repair, and maintenance as well as aircraft rental, the company has adopted the practice of natural hedging by matching cash expenses and revenues in the same currency as practically possible,” it says.

    It believes that global crude prices could fall in the second half of the year, but has hedged 52% of its 2019 fuel conception at cost of $80 per barrel.

    It adds that Thailand’s tourism industry will remain strong in 2019. It plans to add new routes later this year from Bangkok Don Mueang to new Vietnam destinations such as Can Tho and Nha Trang, as well as the addition of a Chiang Mai-Da Nang service.

    It plans two Cambodia services, Bangkok Don Mueang-Sihanoukville, and Phuket-Phnom Penh. In addition, it will add a Bangkok Don Mueang-Ahmedabad service.

    “This diversified strategy tends to minimize the risk of dependence on the major customer base, enhancing the company and Thai AirAsia’s sustainable revenue growth in the future and maintain its leading low-fare airline in Thailand,” it says.“In 2019, Thai AirAsiamaintains a target of 23.15 million passengers, with a solid load factor at 86%, and plans to acquire more energy efficient aircraft during the year to bring its fleet to 63 aircraft.”

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  • Eraman and AirAsia’s Ourshop.com announce partnership to transform travel retailing in Malaysia

    Eraman and AirAsia’s Ourshop.com announce partnership to transform travel retailing in Malaysia

    Duty-free operator Eraman Malaysia and AirAsia-controlled online retailer Ourshop have entered into a major new partnership. It allows travelers to collect products pre-booked on Ourshop.com at a dedicated pick-up point, located at the Eraman duty-free outlet in klia2 at Kuala Lumpur International Airport.

    Owned by airport operator Malaysia Airports, Eraman is Malaysia’s largest airport travel retailer. It operates more than 50 shops and F&B outlets at airports including Kuala Lumpur International, Kuching, Kota Kinabalu, Penang, Langkawi and Labuan.

    Ourshop, launched in July last year, is AirAsia’s online marketplace offering a wide selection of products from duty free, high street and local retailers from across the world.

    The partnership has the added benefit of allowing access to passenger trends and travelers’ departing and arrival destinations, enabling more precise marketing and product selection.

    Travelers purchasing products on ourshop.com can earn AirAsia BIG Points, which can be used to redeem free flights on airasia.com. AirAsia said it was thereby creating a “cycle of value”, as the more miles traveled or items bought, the more travelers earn points.

    AirAsia added that passengers can enjoy the peace of mind that they are purchasing from an official retailer or brand directly, thus removing any doubt of product authenticity that it says has plagued e-commerce traditionally.

    Eraman General Manager Zulhikam Ahmad said his company is thrilled to be part of the Trinity collaboration with parent company Malaysia Airports and Ourshop. “This initiative is very timely as we have just undergone a brand refresh exercise,” he said. “We fully understand that e-commerce is fast becoming significant in the travel retail and duty-free market space.

    “Hence, Eraman is embarking on this journey to ensure we too do not miss out on providing the convenience and keeping up with the trends.”

    Malaysia Airports Senior General Manager Mohammad Nazli Abdul Aziz commented: “The partnership between the nation’s key players in the travel retail industry will undoubtedly elevate the shopping experience for all travelers passing through our doors.

    “This is just a taste of the many exciting activities and initiatives that we have lined up as part of Malaysia Airports’ Commercial Reset strategy.

    “We want to bring excitement and joy to our guests when they are at the airport; and in doing so, we hope to change the traditional perceptions of the airport as a mere hub for connectivity, becoming also a place to enjoy the vast retail offerings available – both at our airports and now digitally.”

    Ourshop General Manager Hassan Choudhury said: “What used to be a 20-minute shopping experience as travelers rush to their boarding gates is now 365 days of shopping indulgence.

    “I want to thank Eraman for exploring this unique online shopping experience for travelers with us. We look forward to sharing incredible success together.”

  • AirAsia named top airline by passenger growth

    AirAsia named top airline by passenger growth

    AirAsia has been named the Top Airline by Absolute Passenger Growth (Southeast Asia) at Singapore’s Changi Airline Awards 2019 recently.

    This is in recognition of its 4.1 per cent increase in passengers carried to and from Singapore to 4.5 million pax recorded in 2018, up from 4.3 million pax the year before, the low-cost carrier said in a statement today.

    It said AirAsia was also adjudged as having the third-highest airline passenger movements overall in 2018, together with Singapore Airlines Group, Jetstar, Cathay Pacific Airways and Lion Group.

    AirAsia Singapore chief executive officer Logan Velaitham said together with Changi Airport Group (CAG), AirAsia has grown Singapore into its third-largest hub, with around 40 flights per day from cities in Malaysia, Indonesia, Thailand and the Philippines.

    “As the largest foreign carrier operating into Singapore, we will continue to link new cities and give travellers here more options,” AirAsia said.

    In support of CAG’s growth plans, AirAsia launched its first international route from Ipoh to Singapore in 2018, it said.

    The Changi Airline Awards, now in its 14th year, recognises airlines for their contributions to strengthening and growing Singapore as an aviation hub.

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  • Ex-AirAsia executive joins Malaysia Airports as COO

    Ex-AirAsia executive joins Malaysia Airports as COO

    Malaysia Airport Holdings (MAHB) has appointed former AirAsia executive Mohammed Shukrie Mohammed Salleh as its new chief operating officer.

    MAHB says that Shukrie will oversee strategies related to airport operations, safety and security, as well as planning and development.

    Shukrie was formerly AirAsia Malaysia’s chief operating officer, before moving to the current position.

    It is the second senior leadership appointment at the airport operator in 2019. In January, MAHB appointed its former finance chief Raja Azmi Raja Nazuddin as its chief executive.

    On Twitter, AirAsia group chief executive officer Tony Fernandes lauded the move, saying that he was “thrilled” that Shukrie would be joining MAHB.

    “He values partners, can communicate well and is a positive human being and a team player. These are qualities that have been lacking in MAHB so I’m sure with him there now things will improve,” he adds.

    AirAsia and MAHB have been embroiled in a legal spat over passenger service charges and service levels at Kuala Lumpur International airport. MAHB has initiated court action against the budget carrier over unpaid passenger service charges, while the low-cost carrier then responded with a counter-claim against the airport operator and has been pushing for mediation.

    MAHB manages 39 Malaysian airports, including those in Kuala Lumpur, Penang, Kuching, and Kota Kinabalu.

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  • AirAsia flies to Lanzhou and Quanzhou

    AirAsia flies to Lanzhou and Quanzhou

    AirAsia continues its expansion into China with two new services from Kuala Lumpur to Lanzhou and Quanzhou. These new services take the number of AirAsia destinations in China to 24, firmly cementing the airline’s position as the largest foreign carrier by capacity operating in China with over 400 weekly flights.

    “Malaysia and China are celebrating 45 years of bilateral relations this year. These exclusive direct services from Kuala Lumpur to Lanzhou in the north-west and Quanzhou in the south-east will deliver an additional 280,000 seats per annum to and from China, allowing us to forge even stronger ties between both nations,” said AirAsia X Malaysia CEO Benyamin Ismail.

    AirAsia China CEO Tassapon Bijleveld said: “AirAsia has grown its footprint in China for more than 14 years now, connecting millions of people from Asean to underserved second and third-tier Chinese cities at low fares.

    And China remains a key market for our future growth. Just recently, we launched our new Bangkok-Shenyang service and we continue to review a number of other potential Chinese routes that we hope to be in a position to announce soon.”

    Book all-inclusive AirAsia BIG member fares from as low as RM209 (one-way) to Lanzhou and RM129 (one-way) to Quanzhou on airasia.com or the AirAsia mobile app from now until May 5, 2019, for travel until Sept 30, 2019.

    Enjoy the award-winning premium flatbed to Lanzhou for all-inclusive AirAsia BIG member fares from as low as RM889 (one-way) during the same booking period.

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  • Airasia keen to buy digital platforms to boost digital business

    Airasia keen to buy digital platforms to boost digital business

    Airasia Group Bhd is keen to acquire digital platforms abroad to boost its digital business segment.

    AirAsia Group chief executive officer Tan Sri Tony Fernandes said: “For sure…some will be M&A (merger and acquisition), some will be joint-ventures.”

    Asked which country the group was eyeing, he said: “Wait and see.”

    Fernandes was speaking to reporters after launching a brand new rooftop at AirAsia RedQ here, tonight. Also present was AirAsia executive chairman Datuk Kamarudin Meranun.

    Going forward, Fernandes said digital business would become a large part of the group’s revenue.

    “But I don’t want to make any prediction but many years ago I said ancillary income will be a big part of our business, and it became 25 percent. I believe digital will be much bigger,” he added.

    Commenting on the new rooftop, Fernandes said the idea was to drive integration between the staff from different departments toward an exciting digital future.

    “Digital is more about department working closely together. We are on a very exciting journey turning Airasia into more than just an airline,” he added.

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  • AirAsia’s facial-recognition boarding system can now be activated on your smartphone

    AirAsia’s facial-recognition boarding system can now be activated on your smartphone

    Travelling can be stressful and AirAsia wants to make your boarding experience seamless with its new FACES feature. This is a facial recognition system that uses your face to replace your boarding pass.

    According to AirAsia Group CEO, Tan Sri Tony Fernandes, you can now register your face on the official AirAsia app. To register, just go to your profile and then tap on “My FACES”. You will be asked to record a short video of your face and submit a copy of your passport. Before you can start using FACES, you’ll need to do a one-time verification with their ground staff. Once that’s done, you can just walk through their gates without showing your boarding pass.

    At the moment, FACES is only available at Senai Airport in Johor and they hope to roll out this feature to more airports throughout the country. According to AirAsia, the FACES feature can help to speed up the boarding process and it has a success rate of 98%. FACES is available only for adults aged 18 and above. You can learn more from their FAQ.

    Previously, passengers will need to register their face through a kiosk located around the check-in counter area. With the updated app, you can perform this step anytime with your smartphone.

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  • Thai AirAsia to fly to Sihanoukville from July

    Thai AirAsia to fly to Sihanoukville from July

    Low-cost carrier Thai AirAsia, a subsidiary of Malaysia-based AirAsia, will launch a direct flight from Bangkok’s Don Mueang International Airport to Cambodia’s Sihanoukville in July. The coastal town will become Thai AirAsia’s third destination in Cambodia after Siem Reap and Phnom Penh.

    “The new route is expected to serve the millions of foreign travellers who use Thailand as a hub, while for Thai travellers, Sihanoukville offers an affordable beach and cultural getaway,” Thai AirAsia CEO Santisuk Klongchaiya was quoted as saying in the Bangkok Post on Monday

    Norinda Khek, communications and public relations director at Cambodia Airports, confirmed the new flight, and said it demonstrates the efficiency of Cambodia Airports’ route development strategy, which aims to attract airlines by providing them marketing support, among other services.

    Taing Sochet Krisna, director of Preah Sihanouk province’s tourism department, said that the presence of one more airline in Sihanoukville International Airport will help increase the number of tourists to the province.

    He said China tops the list of visitors to the province by nationality, followed by neighboring countries like Malaysia and Vietnam.

    According to data from Cambodia Airports, last year air passenger traffic to the province increased by more than 92 percent, totalling 650,000 visitors.

    According to Mr Norinda, Sihanoukville International Airport has five domestic airlines – Cambodia Angkor Air, Cambodia Airways, Lanmei Airlines, JC Cambodia Airlines, and Sky Angkor Airlines – and four international ones – AirAsia, Ruili Airlines, Sichuan Airlines, and Hainan Airlines.

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  • AirAsia fails again in Vietnam partnership bid

    AirAsia fails again in Vietnam partnership bid

    Malaysian budget carrier AirAsia says it will keep trying to crack the Vietnamese market even as analysts warn it has “missed the boat” after its latest failed attempt to set up a joint venture in the country.

    The airline announced on Wednesday that it has terminated an agreement with Thien Minh Group, under which it was to take a 30% stake in an airline company to be launched this year.

    AirAsia has already tried three times to set up a partnership in Vietnam, but AirAsia Group CEO Tony Fernandes is not ready to give up.

    “I am still optimistic about AirAsia being in Vietnam by end of the year,” Fernandes said in a Twitter post the day after the company’s announcement. He hinted in his tweet that the choice of partner was to blame for the failure, saying, “Watch this space. Picking the right one.”

    AirAsia and Thien Minh had agreed in December to set up a joint venture in which the Malaysian company would own a 30% stake, the maximum allowed under Vietnamese law. The company did not give a reason for ending the agreement in its official statement, though local analysts point to the country’s restrictive regulations on foreign aviation players as one possible hurdle.

    A spokesperson for Thien Minh told that the group will release an official statement on the move next week.

    AirAsia already offers international flights connecting to Vietnamese cities, but Fernandes has been trying to set up a partnership in the country since 2005.

    Travel demand in the market of 95 million grew 9% in 2018, according to the local aviation authority, and Fernandes has referred to Vietnam as the missing piece of the puzzle in AirAsia’s plan to tap demand from emerging markets.

    But according to Brendan Sobie of the Sydney-based CAPA Center for Aviation, now may be the time for AirAsia to rethink its approach.

    “After three failed attempts with three different partners, it’s time to let this one go and focus on international expansion using their affiliates from Malaysia, Thailand, Japan, etc.,” Sobie said.

    The Vietnamese market for budget travel, moreover, is already dominated by local players: Vietjet Aviation, which controls nearly half the market, Jetstar Pacific Airlines and Bamboo Airways.

    “The domestic market has become overcrowded and intensely competitive,” Sobie added. “Entering now would be risky and it would be nearly impossible to become a significant domestic competitor. AirAsia unfortunately missed the boat on the Vietnam domestic market.”

    Foreign players, moreover, are forbidden from operating domestic routes in Vietnam, even with a local partner. Licenses, moreover, are awarded on a case-by-case basis, and though newcomer Bamboo Airways received its license relative quickly, the process can take much longer. Vietstar Airlines, established in 2010, is still waiting for a license to begin passenger flights. Local analysts have pointed to these hurdles as one possible reason for AirAsia’s repeated setbacks in the country.

    The airline has a presence in Indonesia, India, Japan, Thailand and Philippines, and thrives on a feeder traffic business model of connecting second-tier cities to capitals, while keeping operating costs low with no-frills service.

    The stock market was little moved by the announcement. AirAsia’s share opened 0.4% higher on Thursday trade before closing at 2.43 ringgit.

    MIDF Research echoed Sobie’s sentiment, saying it is “not imperative” for the group to set up local operations in Vietnam as it can still fly to cities in the country from its regional network.

    The Malaysian investment outfit cited the recently inaugurated Kuala Lumpur-Can Tho route, AirAsia’s sixth route in Vietnam, as an example of the group’s ability to continue expanding regionally without Fernandes’ missing puzzle piece.

    AirAsia’s failed bid to penetrate into Vietnam means Vietjet will continue to dominate the market for now. Vietjet’s share price rose 0.44% on Thursday to close at 114,00 dong, and rose a further 0.79% on Friday.

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  • AirAsia India Offers Up To 70% Discount On Flight Tickets

    AirAsia India Offers Up To 70% Discount On Flight Tickets

    AirAsia India is offering up to 70 per cent discount on flights tickets, according to the airline’s official website – airasia.com. Bookings under the sale – valid for travel between October 1 and June 2 – can be made till April 28, 2019.
    AirAsia India’s latest offer is applicable on all destinations, the carrier said on its website. The discount is available on selected fare classes and non-peak periods only. In order to avail AirAsia’s offer on flight tickets, customers need to book flight tickets in advance, according to the airline. How to avail AirAsia’s discount on flight tickets:

    1. Pick the preferred AirAsia flight for departure and arrival.

    2. Select the dates stated in the promo travel period.

    3. Choose the preferred flight.

    4. You would get up to 70 per cent off on base fare or 20 per cent discount on premium flatbed category.

    Value pack and premium flex bundled category, DJ carrier code flights and QZ carried code domestic flights are not included in the offer, the airline noted.

    Meanwhile, rival GoAir is offering domestic flight tickets at a starting all-inclusive price of Rs. 1,375 in a limited-period sale, according to the airline’s official website – goair.in. Bookings under the sale – valid for travel till August 31, 2019 – can be made till April 25, 2019.

    IndiGo, on the other hand, has announced six additional daily direct flights from Delhi. The new flights by IndiGo will be operated to and from Allahabad, Bhopal and Patna, with effect from May 25.

    SpiceJet has also announced the introduction of 24 new flights on its domestic network. The daily direct flights introduced by the airline will be operated to connect Mumbai and Delhi with other cities.

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