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Tag: airasia

  • AirAsia X to resume flights between Kuala Lumpur and Sydney

    AirAsia X to resume flights between Kuala Lumpur and Sydney

    AirAsia X (AAX) has unveiled plans to resume flights between Kuala Lumpur and Sydney on Feb 14. Flights will initially be operated weekly on Mondays from Kuala Lumpur to Sydney, returning on Tuesdays. Flight D7 228 is scheduled to depart from Kuala Lumpur at 19:25, arriving in Sydney at 06:30. The return leg, flight D7 229, is slated to leave Sydney at 08:30 and arrive back in Kuala Lumpur at 14:15.

    “Following our travel downtime over the last two years, and the recent completion of our restructuring process, we are thrilled to be able to relaunch and commence our gradual return to the skies. This would not have been possible without the overwhelming support from our guests and creditors and we thank them for their patience and understanding,” said Benyamin Ismail, CEO of AirAsia X. “Without any domestic routes AAX has been significantly affected by the pandemic. We now see light at the end of this long tunnel and we are working hard to operate again in all of our key markets, as one of the world’s leading low-cost medium-haul operators. Starting with flights to and from Sydney, we will progressively continue to honor outstanding bookings and Credit Accounts for our guests and creditors in other markets as soon as possible.”

    The airline has confirmed that it will prioritize full redemptions for customers affected by the restructuring. AAX customers can reinstate their flight booking and utilize their credit account to book the flights.

    Captain Suresh Kumar Bangah, COO of AirAsia X, said, “We have been very active on all-cargo flights throughout the pandemic and this has been a lifeline for us. For the first time, we are adding on passengers to supplement cargo revenue in our push to be a major combination carrier in this part of the world. Whilst take-up will be gradual, it can only get better in the coming months as more people return to the skies. We are ready for that pent-up demand.”

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  • Malaysia’s Raya Airways denies acquisition talks with AirAsia

    Malaysia’s Raya Airways denies acquisition talks with AirAsia

    Malaysian air cargo carrier Raya Airways has denied being in talks with budget airline AirAsia Group Bhd for an acquisition, it said in a statement on Monday (Jan 24).

    The company said the news reported over the weekend about ongoing talks was factually incorrect.

    The weekly reported that the airline has approached businessman Ishak Ismail whose family owns Raya Airways, to acquire the carrier, and are in early conversations.

    “After consulting with Raya’s shareholders and Board of Directors, we would like to clarify that Raya and its subsidiaries/affiliate companies are not in any talks with AirAsia Group Berhad or any other parties for the acquisition of the Company or any part of its businesses,” it said.

    The carrier said its operational and financial position is strengthening and it is committed to the next stage of growth.

  • Malaysia’s AirAsia eyes air cargo carrier

    Malaysia’s AirAsia eyes air cargo carrier

    Malaysia’s flagship budget airline AirAsia Group is in early acquisition discussions for air cargo carrier Raya Airways to beef up its logistics business, The Edge Weekly reported on Saturday (Jan 22) citing sources.

    The business weekly said the airline has approached businessman Ishak Ismail whose family owns Raya Airways, to acquire the carrier, and are in early conversations, according to people familiar with the matter.

    AirAsia and Raya Airways did not immediately respond to requests for comment.

    AirAsia’s logistics unit Teleport said in November it was aiming to expand its fleet of cargo planes and scale up its freight business.

    Top executives at Raya Airways were not keen to sell the carrier, however, as they have plans for an initial public offering, the report said.

    AirAsia was last week classified as a PN17 firm by Malaysia’s stock exchange, a tag given to financially distressed firms. It said it was working on a plan to “regularise its financial condition”.

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  • AirAsia Experiences Turbulent Stock Market

    AirAsia Experiences Turbulent Stock Market

    AirAsia Group has announced that stock exchange operator Bursa Malaysia dismissed its application to extend a relief period that prevented it from being classified as a Practice Note 17 (PN17) company, a status that relates to companies that are in financial distress.

    Companies classed as PN17 must submit to the stock exchange a proposal to restructure and revive the company in order to maintain listing status. In a disclosure to the exchange on January 13, the AirAsia (AK, Kuala Lumpur Int’l) parent confirmed that, according to Bursa regulations, with the expiry of the relief period it is now “required to reassess its condition.”

    The PN17 financial distress criteria had been triggered in July 2020 after independent auditors from Ernst & Young highlighted in the group’s annual results that net loss and liabilities at the end of 2019 significantly exceeded assets, flagging material uncertainties that cast doubt on its ability to continue as a going concern.

    In light of the pandemic, Bursa Malaysia gave the group 18 months to take steps to address the issue, and when the relief period expired on January 7, AirAsia filed an appeal to prolong it. This has now been rejected, risking delisting from the exchange.

    The following day, on January 14, Bursa Malaysia issued a statement saying that short selling for AirAsia stock had been suspended for the rest of the day as “the last done price of the approved securities dropped more than 15 sen [cents] from the reference price.” Trading will be reactivated at 0830L (0030Z) on the next trading day, Monday, January 17.

    Meanwhile, in Jakarta, the Indonesia Stock Exchange (IDX) again suspended trading in Indonesia AirAsia (QZ, Jakarta Soekarno-Hatta) on January 12. Trading had only resumed on January 3, nearly two-and-a-half years after its shares were suspended due to its failure to meet the 7.5% threshold for free-floating equity.

    This time, the IDX cited unusual market activity the previous day when the stock closed at 24.4% up. In fact, the bourse said, Indonesia AirAsia’s shares jumped in value by 185% from IDR184 rupiah (USD0.0129) on January 3 to IDR525 (USD0.0367) at the close of trading on January 11. The exchange appealed to investors to pay attention to the performance of listed companies and their disclosures of information before making investment decisions.

    In a statement, Indonesia AirAsia clarified: “There is no material information that has not been submitted by the company to the public; and there is no information about the company circulating as rumours or in the mass media.”

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  • AirAsia CEO says international travel will bounce back strongly despite omicron impact

    AirAsia CEO says international travel will bounce back strongly despite omicron impact

    International travel is likely to recover soon despite progress being slowed by the omicron variant, according to AirAsia chief executive Tony Fernandes.

    “I do believe that we’re at the beginning of the end,” he said “Squawk Box Asia” on Monday, noting that the recovery has already begun in earnest.

    “The good thing is, this time last year, we had no planes flying. Now, we’ve got a large chunk of our fleet flying domestic Malaysia, Thailand, and Indonesia,” he said, adding that demand has been “very, very robust.”

    International travel will get back to pre-Covid levels around six months after borders begin to reopen, he predicted and said he hopes borders will start to open again in March.

    After a flurry of announcements about quarantine-free travel in Asia last year, several countries including Thailand and India reinstated restrictions for some arrivals, as omicron drove up caseloads.

    Fernandes also acknowledged that China continues to be a “big question” in terms of reopening, given that the country is still pursuing its zero-Covid policy.

    Separately, Fernandes said the company’s ride-hailing business has done “incredibly well” and “far exceeded” expectations since its launch in August 2021.

    He said AirAsia’s strategy is “exactly the same” as the one it used when the company entered the low-cost airline market years ago — high efficiency that results in lower prices for consumers.

    As a late entrant, AirAsia Ride could observe what models were successful, and did not have to spend a lot of money on research, development or tech, he said. It also acquired part of Indonesian start-up Gojek’s Thailand operations.

    “The market is still very, very calm.”

  • Air Asia accepts vax cards as primary travel requirement

    Air Asia accepts vax cards as primary travel requirement

    All AirAsia Philippines domestic destinations continue to accept vaccination cards as a primary travel requirement, except for Caticlan, Kalibo, Tacloban, Bacolod, Iloilo and Zamboanga, which now require negative RT-PCR test results taken 72 hours prior to departure, regardless of vaccination status, the airline stated in its latest travel advisory.

    Amidst the surge of COVID-19 cases in Metro Manila plus (Metro Manila and CALABARZON), the low-cost carrier said in a statement Tuesday, Jan. 11, it has elevated its internal COVID-19 response to ensure the safety of employees and guests, optimizing operations to avoid canceling flights.

    AirAsia Philippines established a Safety Plus 24/7 Team composed of different department leaders and the People and Culture – Medical team to monitor the health of employees and distribute medication to those who have contracted the virus.

    The airline now requires all employees, including those who are working at home, to submit online daily health check forms to monitor their health.

    Its flight operations department is also clustering schedules and does regular onsite Antigen tests for flight deck and cabin crew.

    “Adequate planning and anticipation are key to mitigating the risks entailed on the unprecedented surge of COVID-19 cases,” said AirAsia Philippines Spokesperson Steve Dailisan.

    “Thankfully, we initiated the reintegration training of our hibernated staff as early as December, and this January, they will complement the requirements for manpower,” he noted.

    “Internally, we have added layers in monitoring and clustering among our Allstar frontliners to make sure our flight schedules remain unhampered during these times,” according to Dailisan.

    AirAsia Philippines also prioritized securing booster shots for all of its employees who have been fully vaccinated against COVID-19.

    On top of this, the airline offered enhanced flexibility among guests who wish to move their flights.

    They can avail of the unlimited rebooking option with no change fees by accessing the manage my flight option through the airasia Super App or airasia.com.

    However, AirAsia Philippines guests traveling over the next few days should check their flight status and visit the airasia flysafe page for the latest updates on travel requirements.

  • AirAsia scaling new heights with drone training

    AirAsia scaling new heights with drone training

    AirAsia Group has become the first in Malaysia to obtain a license to conduct drone training: a game-changer in the drone delivery revolution in the country. This would, at the same time be a boost to the fast-growing domestic e-commerce industry.

    Group chief executive officer of AirAsia Aviation Ltd Bo Lingam said the move to train drone pilots would drive drone delivery. AirAsia Aviation Ltd is a unit of AirAsia Group.

    “It’s a lucrative and incredibly fast-growing market. Globally, the industry has already taken off and is projected to reach US$7.39bil (RM31bil) by 2027.

    “This new training program provides an opportunity to upskill our ‘Allstars’ and offer exciting new programs for the broader community, as well as supporting the drone industry in providing quality training to have more qualified remote pilots in Malaysia.

    “No prior experience is necessary, making this a great opportunity for everyone to learn to fly,” he told StarBiz.

    Ultimately, he said this would support the company’s vision to launch urban drone delivery for goods and retail items from airasia’s e-commerce platforms.

    The sky is the limit as the company could also potentially scale up to support remote areas for essential supplies during natural disasters, he added.

    President AirAsia Group (digital), Aireen Omar said: “Innovation has always been in our DNA and we can’t wait to launch our AirAsia Drone Academy through our digital edutech arm, airasia academy, as we continue to support the digitalization of Malaysia through a broad range of innovative tech-based training programs.

    “Drone delivery will soon become our latest logistics solution, providing a strong boost to support the ever-growing e-commerce industry.

    “Most importantly, this innovation will allow us to create new high-tech job opportunities for Malaysians.

    “The ability to pivot is part of our culture and while some are losing their jobs in aviation, we offer a second chance for them to build a new career with us through e-commerce,” she said.

    As a disruptive leader, Aireen said AirAsia is ready to take on new innovative challenges and embrace the wave of Industry Revolution 4.0 to its advantage.

    AirAsia Group chief safety officer and head of unmanned aircraft system (UAS) Captain Ling Liong Tien said the company is thrilled to be the first in Malaysia to win approval from the Civil Aviation Authority of Malaysia (CAAM) for the accreditation of the remote pilot training organisation (RPTO).

    He said the team has been working closely with CAAM for months and looks forward to starting its first class in the coming weeks.

    “The idea behind becoming an RPTO is to support the industry by providing quality remote pilot training leveraging our strong aviation background and decades of expertise. The UAS has become an important element in many industries driving cost effectiveness and numerous efficiencies.

    “Our commitment is to develop a strong foundation, supported by our existing robust safety management system, crew resource management and human factors training programs along with the remote pilot training modules – both in the class and out in the field,” he said.

    Commercial remote pilot training classes would commence from Jan 24.

    Interested candidates may register to enrol for one of the courses through the airasia academy website.

  • AirAsia India, SpiceJet make discount offers to spur ticket bookings

    AirAsia India, SpiceJet make discount offers to spur ticket bookings

    Domestic airlines AirAsia India and SpiceJet launched disco­unt schemes on Monday, offering tickets upwards of Rs 1,122. Bookings can be made between De­c­ember 27 and 31 and the discount is for tickets between Jan­uary 15 and April 15.

    The move is ex­pe­cted to stimulate forward bookings amid the Omicron scare that has led to increased curbs across states. While travel dem­and in Dec­ember remains str­ong and airlines continue to see around 380,000 daily passeng­ers, forward bookings are looking weak. Additionally, airlines are offering waivers in date change and rescheduling fees to provide better travel flexibility to customers.

    “We have not seen an impact in December but clearly Omicron is a dampener. With rising cases, people are in a wait-and-watch mode,” said a travel industry executive. Generally, airlines launch such offers for travel beginning February or March when demand gets weak, but this time around forwarding bookings are slow given Covid-19 uncertainties, he added.

  • AirAsia sets best performance

    AirAsia sets best performance

    Airasia Philippines has recorded its best performance yet since the Covid-19 pandemic hit in 2020, its officials said yesterday.

    Topping the list of AirAsia’s most preferred domestic flights within the peak Christmas travel period between December 20 to January 05 are Manila to Caticlan with 24 percent of total passenger booking, Manila to Tacloban with 15 percent, and Cebu to Manila with 14 percent.

    The recently resumed Hong Kong to Manila route, meanwhile tops the list of the airline’s current international flights.

    “We believe that it is important we enable our kababayans to travel to see their loved ones this holiday period to help boost their morale and make their Christmas celebrations even more special after almost two years of battling and living in a global health crisis. We look forward to increasing our flight frequencies and broadening our destinations as the situation improves. But for now, we are thankful to be among the preferred airlines of Filipino travelers,” AirAsia Philippines Spokesperson Steve Dailisan said.

    Dailisan said the significant rise in flight bookings is attributed not only to the relaxing of protocols but also to the longing of Filipinos to be with their families this Christmas season — some of whom have not seen each other for almost two years

    He said they continue to by strict safety protocols mandated by the government and as advised by medical experts

    “Guests are asked to follow implemented stringent safety measures on ground and in flight, such as physical distancing and the wearing of face masks,” Dailisan said.

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  • AirAsia clarifies high fares

    AirAsia clarifies high fares

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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  • AirAsia ramps up flight frequencies

    AirAsia ramps up flight frequencies

    AirAsia Philippines continues to increase flight frequencies to domestic destinations to support the surge of air travel demand during the Christmas season.

    The low-cost carrier said it has restored 30 percent of its pre-pandemic capacity, doubling and tripling its frequencies for most of its domestic destinations.

    The airline has also resumed its flights to Hongkong and Singapore to service overseas Filipino workers and business travelers.

    “We are banking on revenge travel for a very strong 2022 recovery,” AirAsia Philippines spokesperson Steve Dailisan said.

    Dailisan said people now have the confidence to plan for their future trips as reflected in the forward bookings from 31 to 120 days.

    “This booking behavior can be significantly attributed to the continuing downtrend of daily COVID-19 infections and the ongoing progress of the government’s nationwide vaccination program,” he said.

    “While travel restrictions have been significantly eased and simplified, we call on our guests to never allow themselves to be complacent. Strict adherence to health and safety protocols must be observed on the ground and in flight,” Dailisan said.

    AirAsia said travelers can currently avail of the airline’s P20 base fare if they book up to Dec. 20 from Manila to Cebu, Puerto Princesa, Iloilo, Cagayan de Oro, Davao, Kalibo, General Santos, Zamboanga and Bacolod. Travel period is up to Sep. 30 next year.

    “AirAsia has been synonymous with great value through the democratization of air travel with low fares and great service. We are sharing this milestone with our guests who have been very loyal to AirAsia and are now part of the growing Super App ecosystem,” Dailisan said.

    AirAsia Philippines said 100 percent of its flying crew and 99.34 percent of the whole workforce have been fully vaccinated against COVID.

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  • AirAsia resumes flights to Singapore after two years

    AirAsia resumes flights to Singapore after two years

    AirAsia Philippines resumed its service to Singapore last December 4, ending a two-year hiatus of its flights to the Asian city-state.

    AirAsia Philippines’ first flight to Singapore in two years departed the NAIA Terminal 3 in Pasay City at 8:00 a.m. and successfully landed at Changi International Airport at 11:40 a.m. last December 4. It made a return flight from Singapore at 12:25 p.m. and safely landed in Manila at 4:05 p.m. the same day.

    “Initially we will cater to our Filipino workers and business travelers but soon as we slowly recover from the global pandemic, we hope to open this route for leisure travel also,” AirAsia Philippines spokesperson Steve Dailisan said.

    “This is extra special for us in AirAsia because we know how Filipinos value family traditions during the Christmas season and we take pride in being an instrument to those happy and meaningful reunions,” he added.

    To recognize the heroism of overseas Filipino workers (OFWs), AirAsia gave away 100 free tickets during the inaugural Manila-Singapore-Manila flight after two years.

    One of the winners was Grace Macaraeg was very thankful for the free ticket that she considers a timely Christmas gift for OFWs.

    She says the money she saved for her ticket to Manila will be used as additional funds for her niece’s cancer medication and treatment.

    “While it is true that we are always a video away from each other, especially at times when she is going through chemo. But nothing beats being able to hug and kiss her in person, it is simply priceless,” Macaraeg said.

    Also, as part of the Department of Tourism’s “Balikan Ang Pilipinas” campaign, AirAsia is also offering an early Christmas package with Balikbayan Package. By using the promo code BLKBYN10, guests can avail of the 10-percent off on Manila-Singapore and Manila-Hong Kong flights for bookings made until Dec. 12, 2021.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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  • AirAsia clarifies high fares

    AirAsia clarifies high fares

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

  • AirAsia rebuilds capacity in core Malaysian domestic market

    AirAsia rebuilds capacity in core Malaysian domestic market

    For AirAsia there has been a welcome recovery in Malaysian domestic demand in the last part of 2021 as internal travel restrictions ease in the group’s most important market.

    Third-quarter operating statistics made a fairly grim reading for AirAsia. The effects of the COVID-19 delta variant caused the governments in the group’s major Southeast Asian markets to impose limitations on domestic travel. This was particularly true in Malaysia and Thailand, where the AirAsia units based in those countries had to suspend most of their remaining operations.

    In Malaysia, the number of new daily cases peaked at more than 600 in late Aug-2021, according to the Our World in Data website. However, the daily case count had fallen again to 173 by 24-Nov-2021.

    At the same time, Malaysia’s vaccination rate continues to climb, with 76.3% of the population fully vaccinated as of 25-Nov-2021. The fully vaccinated rate for eligible adults is above 90%.

    These two factors combined – daily case numbers and vaccination rate – prompted the government to lift many of its interstate travel restrictions in the fourth quarter.

    For AirAsia, this means its Malaysian domestic operation can ramp up, which is important, given that the airline’s international operations remain largely halted.