Tag: airasia

  • Double win for AirAsia at World Travel Awards

    Double win for AirAsia at World Travel Awards

    AirAsia has been voted Asia’s Leading Low-Cost Airline for the fifth year in a row at the 2017 World Travel Awards Asia and Australasia.

    It beat 10 other contenders – Air India Express, Firefly, GoAir, JetKonnect, JetStar Airways, Lucky Air, Nok Air, Scoot, SpiceJet and West Air.

    AirAsia also fended off nine other contenders to win the title of Asia’s Leading Low-Cost Airline Cabin Crew at the awards ceremony in Shanghai.

    The World Travel Awards are considered prestigious and much sought-after trophies in the global tourism industry, and are voted on by international travel and tourism professionals.

    AirAsia Group chief executive officer Tan Sri Tony Fernandes said the awards were a special win because it recognised the airline’s efforts to always do better.

    “This year, we are focusing on improving our check-in systems to make the whole process easier.

    “RoKKi (AirAsia’s onboard WiFi portal) is our big push to make the in-flight experience better, and our Santan in-flight food goes from strength to strength.

    “We are excited to bring our uniquely Asean products to the rest of Asia and the world,” he said in a statement.

    Fernandes also thanked his cabin crew, describing them as “simply the best – special, warm and real”.

    The airline’s North Asia president, Kathleen Tan, said it had listened to its passengers for the past 16 years and refined its vision of low-cost travel.

    “We have continuously ensured that we only deliver services that epitomise the best of Asean hospitality,” she said.

    “Thank you to those who voted to make us Asia’s No. 1 for five years in a row and for giving us our second cabin crew award.”

  • AirAsia Free Seats promotion starts tomorrow

    AirAsia Free Seats promotion starts tomorrow

    Need to satisfy your wanderlust? Look no further, because AirAsia will be giving away up to three million promotional seats in its Free Seats campaign.

    The promotion is available from June 5 to June 11 for travel between Jan 15 and Aug 28, 2018.

    Fares will be as low as RM0 to des­­tinations such as Johor Baru, Pe­­nang and Surat Thani from Kuala Lumpur; Singapore and Lang­­kawi from Penang; and Te­­reng­ganu from Johor Baru.

    Other than that, AirAsia X guests can also fly from Kuala Lumpur to Perth and Chongqing for fares as low as RM199.

    Those travelling on AirAsia X will also be able to enjoy its award-winning Premium Flatbed from Kuala Lumpur to Beijing, Shanghai, Osaka, Busan, Auckland, Gold Coast, and many more destinations from only RM899.

    AirAsia BIG Members and BIG Prepaid MasterCard members will enjoy priority access and will be able to make bookings on airasia.com and the AirAsia mobile app or redeem flights via airasiabig.com from today.

    Other partners will also be able to access the promotion 24 hours earlier. BIG Prepaid cardholders can do so on airasia.com, AirAsiaGo and AirAsia Expedia on their respective websites, while account holders with Citibank in Malaysia will re­ceive an exclusive link from the bank. The first 100 daily bookings with AirAsia-Citi Card will get a RM50 AirAsia Electronic Gift Voucher (eGV).

    “Free Seats is the best time to lock down travel plans for next year,” said AirAsia Group chief commer­cial officer Siegtraund Teh.

    “With so many fantastic destinations on offer, it’s perfect for a long break or even just a quick weekend getaway,” she said in a statement.

  • AirAsia eyes budget-conscious Aussie travellers

    AirAsia eyes budget-conscious Aussie travellers

    Benyamin Ismail, the CEO of budget airline AirAsia X, wants the coastal city in Borneo to become as familiar to Australians as the famous Bali beach destination.

    AirAsia is eyeing Aussie travellers and wants the Malaysian-based low-cost carrier to be a serious contender in our budget travel market.

    Its pitch to local travellers is its network can offer flights to places we might not have been able to afford before.

    Speaking on the airline’s 10th anniversary in Australia, Mr Ismail, said it wants to beef up its Aussie operations to win budget travellers, and show us there is life beyond Bali.

    “We see a lot of Australians travelling to Bali. So of course, we know that is a very strong market and we have been doing well in that market, but we have been trying to educate that there is life beyond Bali,” Mr Ismail told news.com.au.

    It’s just that many Australians haven’t been able to get there, affordably, before.

    “We want to focus on other islands in Malaysia — Penang, Langkawi and Kota Kinabalu.

    “We are also looking at Sri Lanka — Colombo has a very nice stretch of beaches so we are pushing hard on that. And we are also looking at Vietnam.

    “We know that there is an attraction there, we just want to make these markets affordable.”

    AirAsia currently operates flights out of most of our major airports — Sydney, Melbourne, Perth, Gold Coast and Darwin.

    Flights from Sydney to Kota Kinabula start from $278 one-way, from Melbourne $288, or Perth from $228.

    But Mr Ismail believes its their network within Asia that will open up low-cost travel to Australians once they are in the region.

    For example, trips from Kuala Lumpur to Penang can go for as low as $10 or Bangkok to Phuket for $55 for a basic economy seat without all the comforts.

    However, like most low-cost carriers, ticket prices only include a basic economy seat. If you want to add baggage allowance, a meal, standard seat selection and in-flight entertainment, you’ll have to pay an extra. These fees change depending on departure and arrival destinations and ticket prices can change depending on demand.

    But Mr Ismail said giving passengers this choice on how they fly is an important part of how budget airlines are able to keep prices low.

    “If you are really concerned about the cost and value for money, you don’t have to buy food, for example. That is the good thing about low-cost carriers, you pay for what you use,” he told.

    “Whereas full-service airlines charge everything onto one ticket, but 60 per cent of those things you might not need. That’s really why we are able to transfer savings to our customers too.”

    He said AirAsia is also able to make travel more affordable for Australians by focusing on volume and efficiency.

    “We run a very cost-efficient operation which allows us to charge lower fares,” Mr Ismail said.

    “We have more seats on our planes. We are a very high density aircraft, so the cost per seat is much lower. But how we operate staff is also quite efficient.

    “When we look at the number of staff per aircraft — the number of total airline staff divided by the number of aircraft — we are at about 90 staff per aircraft.

    “Low-cost carriers like Ryanair or EasyJet run their airlines at about 72 to 80 staff per aircraft. Full service carriers are sitting about 160 to 180.”

    And he assures that efficiency doesn’t equal poor service.

    “It just means if you arrive at a terminal to board, in a low-cost airline you might only have one staff member there welcoming you rather than five,” Mr Ismail said.

  • AirAsia warns of free ticket scam

    AirAsia warns of free ticket scam

    AirAsia has issued a public warning about a social media post, claiming to offer free flight tickets through an online survey.

    The post asks participants to answer several questions to redeem vouchers, the low-cost carrier said in a statement on Monday.

    “There is also another scam circulating on Facebook, offering 268 free tickets in conjunction with AirAsia’s 28th anniversary.

    “Both scams used the AirAsia brand without authorisation and aim to lure the public to participate in it,” it added.

    The airline said it will not be held liable for any claims pertaining to the false scheme and will not hesitate to take legal action against individuals or groups that organise illegal schemes using the AirAsia brand.

  • AirAsia: No merger with AirAsia X

    AirAsia: No merger with AirAsia X

    Low cost carrier AirAsia Bhd and its long-haul sister company AirAsia X Bhd (AAX) are not considering a merger, according to the co-founders of both the low cost carriers.

    At a press conference today, AirAsia Group chief executive officer Tan Sri Tony Fernandes said the merger was never brought to the board of directors, and the management remain in their belief that both short and long haul operations have to be separated.

    “AirAsia’s position is very clear, the board has never discussed this and there is no merger at all,” he said.

    “The whole purpose of setting up AAX as a separate company, is because we believe it should be separated, and 10 years on we still believe that,” he added.

    Last week, local media reported that there will be a possible merger between the two companies.

    Today AirAsia Group’s executive chairman Datuk Kamarudin Meranun also clarified that it is premature to talk about merger between the two entity, and AAX should remains focus on improving its profitability.

    “In AirAsia everything is possible, but I made it very clear that we should focus on AAX’s profitability strength first, and the issue has never been discussed at the board,” he said.

    On the AirAsia’s China venture, Fernandes said it represents the first stage of establishing an airline there and the group is unfazed by concern of local airlines may lobby against the idea.

    “It is the first stage and we are very proud and excited about it, there are many stages, we been through that in India, there should be something by the end of this year. I can’t talk for the other airlines, but all over the world, airlines have been lobbying against us, but we still did it,” he said.

    Earlier this month, AirAsia signed a memorandum of understanding (MoU) with China Everbright Group and the Henan Government Working Group to jointly explore the planned establishment of a budget airline in China.

    The MoU enabled AirAsia, Everbright and the Henan Government “to confirm their interest” in forming joint venture (JV) entity AirAsia (China). Henan is a province in central China.

    The MoU parties planned to incorporate AirAsia (China) in Henan’s capital city Zhengzhou, which is intended to be the headquarters of AirAsia (China).
    At the midday break, AirAsia rose 5.78% or 17 sen to RM3.11 while AAX fell 3.33% or 1.5 sen to 43.5 sen.

  • AirAsia sees 2017 results surpassing 2016 despite lower 1Q earnings

    AirAsia sees 2017 results surpassing 2016 despite lower 1Q earnings

    AirAsia, Asia’s largest budget airline, saw net profit drop 29.8% to RM615.81 million or 18.4 sen a share in the first quarter ended March 31, 2017 (1QFY17) from RM877.79 million or 31.5 sen a share a year ago, mainly due to higher fuel costs as average fuel price rose 20% to US$67 (RM286.18) per barrel in 1QFY17 from US$56 per barrel in 1QFY16 and a strong US dollar.

    Staff costs also went up sharply by 27% year-on-year to RM363.5 million in 1QFY17, mainly due to a revised staff remuneration package that was introduced in 4QFY16. As a result, total net operating profits fell to RM267.1 million in 1QFY17 from RM337.7 million in 1QFY16. However, the airline remains positive about its prospects in 2017 and is optimistic that the 2017 results may surpass that of 2016, it said in a filing with Bursa Malaysia yesterday.

    For the remaining quarters of 2017, AirAsia said it remains optimistic as it continues to observe strong demand across most sectors coupled with a favourable fuel price and foreign exchange environment.It is projecting to achieve an average forecast load factor of 91% in 2QFY17 based on the existing forward booking trend. “The strong demand is expected to derive from the festive Hari Raya season, in conjuction with the midterm school holidays in India, as well as the expanded South Korea and China network from the Philippines,” it added.

    AirAsia’s quarterly revenue jumped 31% to RM2.23 billion in 1QFY17 from RM1.7 billion in 1QFY16 due to the consolidation of Indonesia AirAsia (IAA) and Philippines AirAsia (PAA) Group during the current quarter under review. AirAsia said the improved quarterly revenue growth was also derived from a 6% increase in total passengers carried on an additional 1% growth in seat capacity, as well as a strong seat load factor of 89% in 1QFY17 compared with 85% in 1QFY16. Despite of a slight reduction in the average fare of 2%, overall revenue per available seat kilometre improved 3% to 14.91 sen in 1QFY17 from 14.42 sen in 1QFY16. Its cost of available seat kilometre (CASK), however, rose 14% to 13.61 sen in 1QFY17 from 11.97 sen in 1QFY16, while non-fuel CASK increased 9% to 8.6 sen from 7.87 sen.

    In a separate statement yesterday, AirAsia group chief executive officer Tan Sri Tony Fernandes said following the completion of the capital injection exercise in January, the airline’s net gearing ratio stood at 1.22 times at the end of 1QFY17 compared with 1.33 times at the end of 4QFY16. “With the start of consolidated accounts combining our Malaysia, Indonesia and Philippine units, we are taking a major step to being recognised as one airline, not many. AirAsia as OneAirAsia, sharing a single cost structure, brings immense benefits in terms of economies of scale and building a dominant position in the markets we operate in. We hope to include Thai AirAsia in our consolidated accounts beginning the second quarter,” he said.

    He said the airline will add 29 new planes this year through a combination of finance and operating lease, bringing the total fleet to 201 aircraft by end-2017. “This is the most number of aircraft we have added in four years, demonstrating our confidence in the competitive environment in Asia.

    “In March this year, we signed a joint venture in Vietnam and later another in China in early May. Adding these two countries will give us air operator certificates in a total of eight Asian countries, and with that, unrivalled connectivity within the region,” he also said.

    The airline is also expected to achieve 10% further savings by end-2017 as it moves towards regional consolidation and streamlining group operations across the board. It also plans to grow its ancillary target per passenger from RM50 to RM60 this year.

    “In generating returns for our shareholders, we hope to monetise our non-core assets and distribute a special dividend every two years. We are currently in final negotiations and will materialise the sale of Asia Aviation Capital, our leasing arm, very soon. We continue to work toward the listing of PAA and IAA and our training centre — AirAsia Aviation Centre of Excellence,” said Fernandes.

  • Malaysia’s AirAsia again tries to take off in Vietnam

    Malaysia’s AirAsia again tries to take off in Vietnam

    After failing three times, Malaysian discount air carrier AirAsia is once again trying to crack the growing, but well-protected, Vietnamese airline market

    Vietnam closely guards its airline market, dominated by state-run Vietnam Airlines and local discount carrier Vietjet Air, but growth potential is such that it is attracting yet another bid by AirAsia, its fourth since 2005.

    AirAsia’s latest strategy is to team with Thien Minh Group, a pioneering local travel agency founded in 1994 by Tran Trong Kien, the current chief executive officer. TMG, whose Buffalo Tours is one of the best known travel brands in the country, also operates hotels and a travel booking website. The company also began offering seaplane flights four years ago.

    AirAsia CEO Tony Fernandes is said to have first met TMG’s Kien in late 2015. The two have since explored ways to collaborate in Vietnam. Determined not to repeat AirAsia’s previous failed attempts, the two companies carefully studied strategic options as well as how to integrate the companies’ different corporate cultures, Kien said.

    The companies plan to jointly set up a low-cost carrier in Vietnam, with the first flight planned for spring 2018. Deploying medium-range passenger aircraft, such as the Airbus A320 and A321, the venture will target domestic and international routes not served by Vietnam Airlines or Vietjet Air.

    Kien said there are still niche routes where they see strong demand, such as direct flights between Tokyo and Nha Trang.

    Failed attempts

    AirAsia first attempted to enter the Vietnamese market in 2005 through a proposal to support Vietnam’s Pacific Airlines, predecessor to Jetstar Pacific Airlines, but lost to rival Qantas Airways. The next bid, in 2007, was a proposed joint venture with a state-owned shipbuilder that was rejected by the government. Its most recent deal, this time to acquire 30% of Vietjet Air in 2010, was signed by the two companies but again grounded by the government.

    Vietnam’s heavily protected airline market has so far resisted outside penetration by foreign newcomers.

    However, it still remains attractive to AirAisa, which is determined to grab a piece of the market owing to the large growth potential compared to other Southeast Asian countries, according to an executive at a Japanese airline company.

  • AirAsia X’s profit hit by higher fuel expenses

    AirAsia X’s profit hit by higher fuel expenses

    AirAsia X Bhd’s (AAX) profit for the first quarter (Q1) ended March 31, 2017, was dragged down by higher expenses such as aircraft fuel cost, which ballooned by 55% from a year earlier.

    AAX, whose expenses are mostly denominated in the US dollar, said it posted a 43% year-on-year drop in operating profit to RM60.3mil mainly due to an overall 6% depreciation of the ringgit against the greenback.

    The long-haul, low-cost airline told Bursa Malaysia on Tuesday that net profit fell to RM10.34mil from RM179.49mil previously.

    Aircraft fuel expenses, the single largest operating cost, swelled to RM377.69mil from RM243.06mil a year earlier. Aircraft operating lease costs rose to RM70.82mil from RM45.64mil previously.

    Its profit took a hit despite a healthy growth in passengers carried – up 33% to 1.4 million in Q1 on the back of a higher available seat capacity – that led to a 22% jump in revenue year-on-year to RM1.18bil.

    Load factors were 2 basis points higher at 84% compared with the same quarter in 2016.

    Ancillary revenue per passenger remained constant at RM150 while freight and cargo revenue grew by 5.9% to RM32.8mil in the quarter under review.

    Revenue per available seat kilometer (RASK) was down 6% year-on-year from 15.11 sen to 14.20 sen during the quarter under review.

    AAX said the marginal drop was due to the expected increase in capacity on core existing routes as per its strategy to grow market share and therefore pressuring yields.

    In a press statement, it said Malaysia AirAsia X (MAAX) registered a healthy load factor of 84%, up 2 percentage points (ppts).

    Thailand AirAsia X outperformed despite regulatory constraints by posting US$5.5mil net profit in Q1. It recorded a strong 94% load factor, an increase of 5 ppts from 89% in the same period last year.

    As for Indonesia AirAsia X, the A330s service was still temporarily suspended in Q1 as part of a network restructuring aimed at improving operational efficiencies. However, it has resumed the A330 operations with the introduction of two new routes this month.

    On its prospects, the AirAsia group affiliate said that based on the current forward booking trend, forward loads and average fares were trending better than the previous year.

    However, it added, the relative weakness of the Malaysian ringgit remained a key concern as a large portion of the company’s borrowings and operating costs – including fuel expenses and aircraft operating lease exprnses – are denominated in US dollars.

    “Barring any unforeseen circumstances, including but not limited to terrorist attacks, natural disasters, epidemics, economic downturn, fuel price hike and fluctuation in foreign currencies against the Malaysian ringgit, the company expects its prospects to remain positive,” it said.

    In the press statement, MAAX chief executive officer Benyamin Ismail said: “Moving forward for the rest 2017, AirAsia X will focus on strengthening our market leadership through a number of strategies.

    “We hope to stretch our aircraft utilisation rate further with more incremental frequencies on high yield point-to-point routes and new routes in the second half of 2017. We have also set targets in ensuring the company remains lean through various cost initiatives and maximise the operational synergies between AirAsia and AirAsia X.”

  • AirAsia to introduce ePos system for F&B orders on flights

    AirAsia to introduce ePos system for F&B orders on flights

    Budget carrier AirAsia will introduce an electronic point of sales (ePos) system in the next eight months to allow passengers to make food and beverage (F & B) orders and payments online during flights.

    AirAsia group chief executive officer Tan Sri Tony Fernandes said the ePos system could be accessed through the on board WiFi service, roKKi, and this was a part of the airlines digitalisation efforts at creating better, more innovative inflight offerings.

    “It is opposed to just pushing the food trolley, and will help us serve customers faster and efficiently with them making orders from their smart phones,” he told the media at the AirAsia Santan Food Festival in Sepang on Monday.

    Fernandes said since the roKKi Wi-Fi service was launched in 2014, about 6% of passengers on board had used it.

    On the Santan Food Festival, he said AirAsia had collaborated with about 50 Asean F & B enterprises in offering the meals from across the region.

    “What we are doing is bringing the wonderful flavour of Asean into Santan to create a unique food experience, with the vision of replicating the on-ground gourmet experience on board flights,” he added.

    He said the company was also exploring the use of green packaging and an inflight coffee trolley to enable freshly brewed coffee to be served on board flights.

  • Discover the best of Cebu with AirAsia

    Discover the best of Cebu with AirAsia

    Whether you are into mouthwatering dishes, breathtaking beaches or amazing historical sites, Cebu offers the best experience and AirAsia is making it easier and more affordable for you to fly now to the “Queen City of the South” from Davao with an all-in fare from as low as P499. AirAsia, voted the world’s best low cost carrier for eight consecutive years, flies twice daily to Cebu from Davao and five times daily from Manila. Cebu is the secondary hub for AirAsia after the airline launched in April several flights to/from Palawan and Boracay.

    International flights are also available from Cebu to Incheon/Seoul, Taipei, Singapore and Kuala Lumpur with fares now on sale at 50-percent off from May 17 until May 21, 2017, valid for travel from September 5, 2017 to February 8, 2018. AirAsia Philippines chief executive office Captain Dexter Comendador said, “We are a Filipino company but a regional and proudly Asean brand and part of the AirAsia Group delivering world-class service.

    As a Filipino low cost carrier, we feel strongly about supporting the growth and development of cities outside Metro Manila.” “Starting April 22, Cebuanos now have direct access to Boracay via Caticlan, Palawan, and Davao with our signature low fares.

    Foreign tourists arriving in Cebu can skip the crowded airport of Manila and fly straight to Cebu and to our country’s best island destinations. With our newest routes, AirAsia would like to provide the much-needed connections and tap into underserved market and grow it as there is definitely great tourism and business potential in Visayas and Mindanao.” Comendador added. AirAsia in the Philippines operates a fleet of 17 aircraft with domestic and international flights out of hubs in Manila, Cebu and Kalibo. The airline operates several flights to/from Manila, Davao, Cebu, Kalibo, Caticlan (Boracay), Tacloban, Tagbilaran (Bohol), Puerto Princesa (Palawan) and Clark in the Philippines with international flights to/from Shanghai, Taipei, Incheon (Seoul), Hong Kong, Macau, Kuala Lumpur, Kota Kinabalu, and Singapore (via Cebu only). AirAsia Philippines is part of the AirAsia Group that has been awarded by Skytrax as the World’s Best Low Cost Carrier for eight consecutive years since 2009.

  • AirAsia X dedicates aircraft to remember late COO

    AirAsia X dedicates aircraft to remember late COO

    AirAsia X has dedicated an aircraft to remember their late chief operating officer Anaz Ahmad Tajuddin, who passed away on Jan 13 from cancer.

    AirAsia group chief executive officer Tan Sri Tony Fernandes filmed two Facebook live videos of the sombre event held on Tuesday, unveiling the aircraft with Anaz’s smiling face on the fuselage together with the phrases “A truly passionate Allstar” and “Anaz the legend”.

    “We’re here to give tribute to our wonderful staff Anaz, who left us all too quickly,” said Fernandes in the video.

    Anaz was 43 when he passed away. Meanwhile, AirAsia X chief executive officer Ben Ismail said that the Airbus A330 aircraft was delivered about three weeks ago, and has since travelled to Japan, Australia and China.

    “We are celebrating Anaz being one of the most important men in AirAsia,” said Ben.

    “As you can see, I dedicated one of our aircrafts to him. We love him. I love him,” he added.

    AirAsia executive chairman Kamarudin Meranun said they have gathered to remember “our dear brother Anaz” who was a “very passionate Allstar”.

    “It’s happy because we still remember him but it’s also a sad affair,” said Kamarudin.

    AirAsia chief executive officer Aireen Omar also commended the artistic touch on the plane.

    “I will always remember Anaz,” said Aireen.

    Anaz’s family and other AirAsia staff were also present at the event.

  • AirAsia and Terengganu join hands as the latter eyes 5.5 million tourist arrivals

    AirAsia and Terengganu join hands as the latter eyes 5.5 million tourist arrivals

    AirAsia and Terengganu state government has signed a memorandum of agreement (MOA) which will see both parties collaborate to promote local tourism in Terengganu. AirAsia will add in new route, allowing travellers to fly directly from Johor Bahru to Terengganu starting 22 June 2017.

    “Terengganu is ready to be known as a tourism state with efficient land and air accessibility, with good services, modern infrastructures and treasures of nature, culture and heritage. The additional Johor Bahru to Kuala Terengganu direct flights will definitely boost the arrival of tourists into Terengganu,” Terengganu chief minister, Ahmad Razif bin Abdul Rahman said.

    “With this collaboration, we will drive our marketing efforts to promote Terengganu as a must-visit destination in Malaysia. We are confident this will contribute significantly in achieving the state government’s target of 5.5 million tourist arrivals in Terengganu for this year,” Aziz Bakar, who sits on AirAsia Berhad’s board of directors added.

    In August last year, the airline’s Singapore unit has also collaborated with the Indonesian Ministry of Tourism on a marketing campaign to promote Indonesia in the city state. As part of the campaign, it showcased travel-related content on various mediums such as radio, Yahoo, Facebook and also brought two top Singapore YouTubers: Night Owls Cinematics and Lepak One Korner) on board.

  • AirAsia Cambodia to debut soon

    AirAsia Cambodia to debut soon

    Asia’s largest budget airline AirAsia, headquartered in Kuala Lumpur, plans to open a subsidiary company in Cambodia to handle an anticipated increase in the number of passengers travelling to Phnom Penh, Siem Reap and Sihanoukville from Malaysia.

    The subsidiary, said the Minister of Public Works and Transport Sun Chanthol yesterday, would be named AirAsia Cambodia.

    “The purpose of forming AirAsia Cambodia was brought up by AirAsia CEO Tony Fernandes in his meeting with Prime Minister Hun Sen last week at the sidelines of the World Economic Forum on Asean,” said Mr Chanthol.

    “Mr Fernandes told the prime minister that AirAsia Cambodia, as AirAsia’s new subsidiary company, would be needed to handle an increasing number of air travelers from Malaysia to Phnom Penh, Siem Reap and Sihanoukville,” he added.

    “The prime minister, in turn, replied that he was behind Mr Fernandes’s decision 100 percent.”

    Mr Chanthol said AirAsia’s decision to start a new subsidiary company in Cambodia reflected the aviation industry’s confidence in the country’s open skies policy.

    “Cambodia’s open skies policy promotes Asean connectivity and this in turn allows more goods to be transported and more people to travel to other countries,” he said.

    When asked by reporters when AirAsia Cambodia would start up in the country, Mr Chanthol said the proposal was now with the Council of Ministers for approval.

    The decision to form AirAsia Cambodia came after Mr Fernandes announced at a press conference on Thursday that his airline plans to launch a new service from Kuala Lumpur to Sihanoukville city.

    “There will be four AirAsia flights a week from Kuala Lumpur International Airport 2 to Sihanouk International Airport on the Airbus 320,” he said. The first flight is scheduled for August 9.

    Mr Fernandes said he recognised the potential of Cambodia’s international airports to handle an increased number of arrivals from overseas.

    “We think the Cambodian air travel market could be lucrative and the timing to expand our routes is perfect,” he said.

    AirAsia currently flies daily from Kuala Lumpur to Phnom Penh and Siem Reap.

    “We hope in time to come that people may come to Phnom Penh and then go to Sihanoukville,” Mr Fernandes said.

    “We are about to invest for the long term and see huge potential in these airports.

    “It is about connectivity and I think one of the most important aspects is for the people of Sihanoukville to have another option to fly.

    It is not just about tourism. We also hope small businesses can benefit by expanding their businesses into Asean.”

  • AirAsia to launch new Chinese low cost carrier

    AirAsia to launch new Chinese low cost carrier

    AirAsia signed a joint venture agreement with China on Sunday to establish a low cost carrier (LCC), with a base in the east-central city of Zhengzhou. AirAsia (China) is a joint venture between AirAsia, Everbright Group and Henan Government Working Group, the airline said in a statement.

    AirAsia (China) will also invest in aviation infrastructure, including a dedicated LCC terminal at Zhengzhou airport and an aviation academy to train pilots, crew and engineers, as well as maintenance, repair and overhaul (MRO) facilities to service aircraft, the statement said.

    No further details of the LCC were provided.

    Malaysian Prime Minister Datuk Seri Najib Tun Razak, who is on a visit to China, witnessed the signing of the joint venture agreement.

    “This Chinese venture represents the final piece of the AirAsia puzzle,” said AirAsia Group CEO Tan Sri Tony Fernandes.

    “In just 16 years, we have successfully built a presence in Malaysia, Thailand, Indonesia, Philippines, India and Japan, with China closing the loop on all major territories in Asia Pacific.”

    AirAsia and AirAsia X currently fly to 15 destinations in China and the group is the largest foreign LCC operating into the country.

  • AirAsia, Tourism Malaysia team up to promote tourism

    AirAsia, Tourism Malaysia team up to promote tourism

    AirAsia and Tourism Malaysia are teaming up to attract tourists to Malaysia under a two-year agreement.

    In a statement, the low-cost airline said they would focus on developing activities to promote the country to all 10 Asean countries, China, Japan, South Korea, India, Sri Lanka, Bangladesh, Nepal, Maldives, Saudi Arabia, Iran, Australia and New Zealand.

    The agreement will include efforts in terms of brand advertising, promotional activities and campaigns; familiarisation trip for consumer, trade, media, travel agencies to Malaysia; synergy in planning between tourism development and air transportation to provide better connectivity; market intelligence sharing and assistance for developing the tourism sector; and joint roadshows between both parties to market Malaysia to trade partners.

    In conjunction with this partnership, AirAsia is offering a 5% special discount on top of all existing promotions exclusively for UnionPay cardholders.

    This discount is available for booking starting now until July 4, 2017, with travel period from May 5, 2017, to June 5 2018.

    AirAsia and Tourism Malaysia signed a memorandum of agreement (MOA) for the partnership on Wednesday in Shanghai.

    Tourism Malaysia was represented by its deputy director general (promotion) Datuk Seri Abdul Khani Daud and AirAsia Bhd by its head of commercial Spencer Lee.

    The signing ceremony was witnessed by Tourism and Culture Minister Datuk Seri Mohamed Nazri Abdul Aziz, who was in Shanghai to lead Malaysia’s participation at the inaugural ITB China travel trade fair at the Shanghai World Expo Exhibition and Convention Centre.

    “Connectivity is the heart of tourism, and this partnership between Tourism Malaysia and AirAsia will combine our marketing efforts, resulting in a stronger awareness and branding for Malaysia as a tourist destination,” Abdul Khani said.

    “We look forward to stronger customer demand and confidence in Malaysia as an ideal holiday destination.”

    Lee said AirAsia looked forward to work closely with Tourism Malaysia to provide travellers with better connectivity into and within Malaysia while allowing them to travel from one destination to another seamlessly.

    “Through this partnership, we aim to generate wide awareness and publicity on Malaysia as a preferred leisure and business destination, and boost the country’s tourist arrivals and receipts. This effort is in line with the national objectives, as seen through the newly implemented e-visa entry for China and India, making tourist entry into Malaysia easier and convenient,” he said.

    It has been reported that the Tourism and Culture Ministry faced financial constraints, with its advertising and promotion budget being slashed year after year over the last few years. The budget last year was RM167mil, down about 40% from 2012.

    In April, Parliament passed a bill to introduce a tourism tax, which is expected to provide a sustainable fund every year to develop the tourism industry.