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  • AirAsia brings back fuel surcharge

    AirAsia brings back fuel surcharge

    AirAsia Malaysia will be reintroducing fuel surcharge beginning March 8 for all its domestic and international flights.

    The reintroduction of the fuel surcharge by AirAsia is to offset the escalating jet fuel prices, which has exceeded US$120 per barrel. AirAsia has not been charging fuel surcharge since it was abolished in 2015. The airline said it has been absorbing the oil price increase over the years.

    The fuel surcharge will be applicable for new flight bookings made on and after March 8. All bookings made before March 8 will not be affected.

    The fuel surcharge rates for all domestic routes within Malaysia is RM10 while rates for international routes within one to two hours is RM25.

    The rates for international routes for two to three hours, three to four hours and more than four hours are RM35, RM50 and RM60, respectively.

    AirAsia Malaysia Chief Executive Officer Riad Asmat said airlines the world over are affected by the rising oil prices and the continuous upward spiral caused by the situation in Eastern Europe and other external factors have made it imperative for the airlines to reintroduce the fuel surcharge, despite the low-cost operator’s best efforts to resist it for as long as it could.

    “Since we last abolished fuel surcharges in 2015 when the global fuel price was as low as US$48 a barrel, we have faced numerous occasions when the fluctuations have caused other airlines to start imposing surcharges.

    “However, at AirAsia, we have been absorbing past increases in oil prices to continue to provide the best value to our guests. Unfortunately, the current situation where the oil price has shot up more than 160 per cent than what it was in 2015 has made it no longer sustainable,” he said in a statement today.

    Riad hoped that the fuel surcharge will only be a temporary measure.

    He said AirAsia will continue to ensure its fares remain as low as possible despite the fuel surcharge.

    Even when faced with the devastating Covid-19 pandemic, AirAsia still managed to deflect the rising operational costs and continued to offer low fares to the people, he explained.

    “We will continue to monitor the situation and at the same time capitalise on technological and digital innovations as ways to keep costs at bay and make air travel affordable for everyone.”

    AirAsia removed its fuel surcharge twice in the past. It first introduced a fuel surcharge in 2005 and abolished it in 2008, and later reintroduced it in 2011.

    In 2015, the jet fuel price was at its high of US$78 per barrel but AirAsia removed the fuel surcharge as soon as the price went down to around US$48 per barrel that year.

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  • An AirAsia flight was diverted after passengers spotted a snake on their plane

    An AirAsia flight was diverted after passengers spotted a snake on their plane

    Passengers on an AirAsia flight had their trip rerouted after spotting an uninvited passenger on the plane.

    In a video shared on TikTok by user @edal8808, what appears to be a long snake can be seen slithering through an overhead light fixture. In the caption, the user wrote that the flight, which was headed from the Malaysian capital city of Kuala Lumpur to Tawau, had to instead make an emergency landing in Kuching, according to a translation of the text.

    AirAsia did not immediately respond to a request for comment from NPR. However, the airline’s chief security officer Liong Tien Ling confirmed the incident in a statement to CNN.

    “AirAsia is aware of the incident that occurred on the flight from Kuala Lumpur to Tawau on Thursday. As soon as the captain was notified, the plane was diverted to Kuching to be disinfected,” he said.

    He went on to state that neither passengers nor guests were in danger, according to the outlet.

    Passengers were able to continue their journey to Tawau that same day, multinational news network CNA reports.

    Still, travelers with upcoming flights have no need to worry that their vacations may turn into a real-life version of Snakes on a Plane. In a statement obtained by CNA, Ling noted that what happened on Thursday’s place is not a common occurrence.

    “This is a very rare incident which can occur on any aircraft from time to time,” he explained.

    The video has been viewed more than 2 million times since being posted on Thursday, and footage of the unexpected discovery has since spread to other social media platforms like Twitter. However, it is unclear if the TikTok user who initially shared the video was the one to record it and they did not respond to a request for comment from NPR.

    It’s not the first time snakes have found their way onto passenger flights. In 2019, a woman traveling home to Scotland from Australia encountered a nasty surprise when she went to unpack and found a snake curled up in her luggage. There was even an occasion where a pilot had to conduct an emergency landing after finding a snake in the cockpit.

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  • KFC Australia pilots drone-delivery service in Queensland

    KFC Australia pilots drone-delivery service in Queensland

    In an Australian-first, KFC has enlisted a drone delivery company to bring Zingers and other fried faves to homes and workplaces in the Logan area between Brisbane and the Gold Coast.

    Wing, owned by Google parent Alphabet, launched in Canberra in 2019 in a world-first, and in Logan the following year.

    Since then, suburbs within a 10km radius have been having burgers, groceries, pharmacy items, hardware products, coffee and other products zoomed in via 5kg styrofoam drones that can carry up to 1.5kg.

    Under a pilot program kicking off on Friday, the world’s most famous fried chicken brand will initially be available to a small number of households in the South East Queensland suburbs of Kingston, Logan Central, Slacks Creek, Underwood, and Woodridge.

    The service will gradually expand to include other nearby locations, Wing says, dubbing Logan “the drone delivery capital of the world”.

    “You know the future truly is here when you can get hot, fresh Kentucky Fried Chicken delivered by a drone from the click of a few buttons,” KFC Australia chief marketing officer Kristi Woolrych said.

    Wing says the number of deliveries rocketed last year as the pandemic raged on and strong demand has continued in 2022.

    Earlier this week, spokesman Jesse Suskin said the company was planning expansion in Australia.

    “We’ll be in more places in southeast Queensland. We’ve submitted for those permissions from our regulators,” Mr. Suskin said.

    “For other states, we’re actively starting to have those conversations right now.”

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  • AirAsia X narrows operating losses in quarter to 30 September

    AirAsia X narrows operating losses in quarter to 30 September

    Long-haul, low-cost carrier AirAsia X has reported an operating loss of MYR82.5 million ($19.6 million) for the first quarter of its 2022 financial year. The carrier generated revenue of MYR99.3 million for the three months ended 30 September, and a net loss of MYR149 million, it says.

    The carrier did not provide corresponding figures for the same period in 2021, given that it changed its financial year. Still, its performance improved across key metrics.

    In the three months to 30 September 2020, it generated an operating loss of MYR498 million, revenues of MYR60 million, and a net loss of MYR308 million. The airline adds that it remains largely grounded, apart from a “limited number of cargo and charter flights.”

    AirAsia X also provided some details about Thai AirAsia X (TAAX) and Indonesia AirAsia Extra, in which it holds 49% stakes, during the three months to 30 September.

    TAAX suffered a net loss of MYR353 million, while Indonesia AirAsia Extra generated a net profit of MYR12.3 million.

    The group adds that there is “meaningful uncertainty about the reopening of international borders,” which affects its prospects. Earlier this month, AirAsia X received crucial approval from creditors for debt restructuring, following a series of court-convened meetings on 12 November.

    This paved the way for restructuring and recapitalization, which it hopes to wrap up in early 2022.

    The carrier has labeled the restructuring a “wide and deep reset,” that covers all creditors.

    “With the completion of this exercise, AirAsia X will be one of the very few airlines worldwide that has no gearing and a restructured cost base that is significantly below that of its competitors in the region and will be

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  • US direct flight fare around $1,000

    US direct flight fare around $1,000

    A one-way ticket from Vietnam to the U.S. will cost around $1,000 and be available on the Vietnam Airlines website in a few days, the carrier has said.

    There would be a reduced number of passengers to lower the aircraft’s weight to ensure no fuel stops are needed, CEO Le Hong Ha told reporters Tuesday.

    On the Boeing 787 and Airbus 350 planes Vietnam Airlines uses, this means a maximum of 210-220 passengers instead of the full complement of 300, he said.

    The 2.2 million Vietnamese-Americans in the U.S. would be the main targets in the future, he said.

    The Vietnam-U.S. direct route would not be profitable for five to 10 years, but it is better to fly to sustain cash flows, he said.

    Passengers allowed to enter Vietnam from the U.S. now amid Covid-19 are experts, businesspeople and high-skilled workers.

    The first regular direct flight to the U.S. will leave HCMC in the evening of November 28, achieving a dream conceived nearly two decades ago.

    It will arrive in San Francisco 13 hours and 50 minutes later.

  • Vietnam Airlines ready for US direct route

    Vietnam Airlines ready for US direct route

    Vietnam Airlines is set to receive its final permit from U.S. authorities to conduct regular direct flights to the U.S. after nearly two decades of preparation.

    The national flag carrier has completed all necessary documents to be approved by the U.S. Transportation Security Administration (TSA), it stated.

    It is set to receive the permit from Federal Aviation Administration (FAA) soon. The airline did not specify a date.

    Vietnam Airlines said the permit is different from that given earlier for international special charter flights between Vietnam and the U.S.

    The carrier had earlier received permits to conduct 12 charter flights last year and another 12 this year.

    Bamboo Airways had also received a permit to fly 12 charter flights to the U.S. from this month to November.

    Last month, Vietnam Airlines was planning to operate regular flights between Vietnam and the U.S. starting October.

    The airline in 2003 was ordered by the Ministry of Transport to begin direct services to the U.S. by 2005. However, concerns about profitability kept the carrier from realizing the goal until now.

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  • Full flight load to Langkawi signals strong rebound for domestic air travel

    Full flight load to Langkawi signals strong rebound for domestic air travel

    AirAsia’s inaugural service from Kuala Lumpur to Langkawi on Thursday (Sept 16) morning under the travel bubble recorded a 100% flight load, the carrier says, signifying a strong rebound for domestic air travel.

    The low-cost carrier said the maiden flight, the first of nine scheduled daily flights from Kuala Lumpur, left KLIA2 at 9.50am utilising an Airbus A321neo.

    “Aside from Kuala Lumpur (63 flights weekly), AirAsia also has flights to Langkawi departing from Penang (14 times weekly), Johor Baru (seven times weekly), Ipoh (three times weekly) and Kota Baru (three times weekly), making a total of 90 weekly flights,” it said in a statement.

    AirAsia Malaysia chief executive officer Riad Asmat said over 200,000 seats to Langkawi were sold in less than a week.

    “To facilitate this movement, we have prepared extensively and implemented robust and comprehensive health and safety protocols to ensure all of our guests can travel safely, with our 100% vaccinated crew and frontliners.

    “After months of preparation, we are thrilled to get the country flying again and are ready to scale up our operations to meet overwhelming demand.

    “We hope more travel bubbles will be established across the country soon in line with the accelerated vaccination roll-out, and eventually across the region when it is safe to do so,” he added.

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  • Government fund subscribes to Vietnam Airlines right issue

    Government fund subscribes to Vietnam Airlines right issue

    Vietnam’s sovereign fund has subscribed to Vietnam Airlines’s rights offering amid its accumulating losses due to Covid-19.

    The State Capital Investment Corporation (SCIC) paid VND6.89 trillion ($303.56 million) to acquire 689.5 million shares and kept its ownership rate in the state-owned carrier at 31.08 percent.

    The airline’s HVN ticker rose by the maximum allowed 7 percent Monday, its sixth consecutive day of gain.

    HVN’s issued VND8 trillion worth of stocks to existing shareholders to increase its capital.

    Japan’s ANA Holdings, the operator of All Nippon Airways which owns an 8.77 percent stake in Vietnam Airlines, sold its rights to buy 70 million shares to Vietnam Airlines employees since it is itself facing financial difficulties.

    The carrier estimates its losses for the first half of 2021 at around VND10.79 trillion.

  • Launch of direct Vietnam-US flight routes a challenging journey

    Launch of direct Vietnam-US flight routes a challenging journey

    Acquiring flight slots at U.S. airports is only the beginning of a challenging journey to making the Vietnam-U.S. direct route a reality, experts say.

    Private carrier Bamboo Airways recently acquired slots to operate regular direct flights from Ho Chi Minh City to San Francisco and Los Angeles starting September.

    The airline plans to begin charter flights starting July and regular flights in September with four flights a week.

    The flights would be operated using the long-haul Boeing 787-9 Dreamliner aircraft. The carrier said it was rushing to complete the final steps in the process of building its personnel apparatus, including pilot and flight crew training, to get ready for operating direct flights to the U.S.

    While the latest development stirs new hopes for direct flights between the two countries, something that airlines and officials have been discussing and working on for nearly two decades, there are still many hurdles to overcome.

    Aviation expert Nguyen Thien Tong said that apart from flight slots, each Vietnamese airline will need to acquire various safety permits from U.S. agencies before getting the go-ahead for direct flights.

    Vietnam Airlines, with decades of experience in the industry, seems to be the most promising candidate to secure these permits, while Bamboo Airways, having operated for only two years, might face stiff challenges in proving its capability to conduct such long direct flights, he told VnExpress International.

    Last September, national flag carrier Vietnam Airlines had became the first Vietnamese airline to secure permits from the U.S. Department of Transportation for direct flights to the U.S.

    The airline last month received licenses from the Civil Aviation Authority of Vietnam (CAAV) to operate the Airbus A350 aircraft to the U.S. It had already acquired a permit for the Boeing 787.

    Last year, Vietnam Airlines conducted over 20 charter flights between the two countries.

    But, for regular flights, various permits are needed from the Federal Aviation Administration (FAA), the Transportation Security Administration (TSA) and the U.S. Customs and Border Protection (CBP).

    The TSA is one of the toughest obstacles with its stringent requirements. It will send experts to examine Vietnamese airports before proceeding further.

    A CAAV official told local media that the current fleet of Vietnam Airlines and Bamboo Airways with their Boeing 787-9 and the Airbus 350 won’t be able to fly directly to the U.S. at full capacity (over 300 seats).

    For long direct flights, the Boeing 777x and Airbus A350-1000 are needed, but the two carries do not own such jets, he said.

    Apart from concerns over technical challenges, experts have also questioned the profitability of Vietnam-U.S. direct flights.

    Vietnam Airlines CEO Le Hong Ha said the carrier might have to bear a loss of $30-50 million a year in the first five years of operating direct Vietnam-U.S. flights.

    Bamboo Airways chairman Trinh Van Quyet had earlier calculated that the airline could earn VND8 billion ($346,700) a month from direct flights with return ticket prices of around $1,300.

    But it is difficult to confirm those figures, especially as U.S. airlines, such as United Airlines and Delta Air Lines have launched and suspended direct flights to Vietnam after making losses, Tong said.

    There are currently no direct routes between the two countries, and passengers have to transit through Hong Kong, South Korea or Taiwan, taking 18-21 hours in all. A direct flight would shorten the travel time to 15-17 hours.

    Tong also said that with the ongoing Covid-19 pandemic it is unclear when a regular direct route will be established.

    Americans are among the top foreign visitors to Vietnam, with 687,226 arrivals in 2019, and an ethnic Vietnamese population of over 2.1 million in the U.S. is also expected to be a steady source of travel demand.

  • Vietnam allows Boeing 737 Max to enter its airspace again

    Vietnam allows Boeing 737 Max to enter its airspace again

    Vietnam’s Transport Ministry has allowed the Boeing 737 Max aircraft to pass through the country’s airspace after two years.

    The decision was taken following a proposal made by the Civil Aviation Authority of Vietnam (CAAV) last month, citing Boeing’s efforts to address technical issues of the aircraft and assessments by aviation authorities in the U.S. and Europe.

    However, the ministry has ordered CAAV to continue monitoring related issues and updating itself with information from peers in China, Australia, and Russia, countries that have not yet opened up their airspace for this aircraft model.

    The ministry also said that after these countries lift their respective bans on the aircraft and if it meets Vietnamese regulations, the CAAV can report it for the ministry to consider permission for the aircraft to operate in and be imported into Vietnam.

    The U.S. allowed the Boeing 737 Max to resume operations in December and Europe did so in January.

    The Boeing 737 Max aircraft was grounded worldwide in March 2019 after 346 people were killed in two crashes in the space of a few months in Indonesia and Ethiopia.

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  • Nine Singaporeans struggling to leave Macau secure seats on AirAsia flight

    Nine Singaporeans struggling to leave Macau secure seats on AirAsia flight

    At least nine Singaporeans have been struggling to leave Macau after they were unable to secure a direct flight home due to the pandemic. One is desperate to return after losing his job in the Chinese city, whose economy has been hit hard by Covid-19. Another needs surgery for a spinal condition and wants to return home.

    The group of Singaporeans and Malaysians will finally board a special AirAsia flight to Kuala Lumpur on April 8, arranged and confirmed by the consulate-general of Malaysia in Hong Kong on Thursday (March 11).

    Many had spent more than three weeks waiting for the decision, with some unemployed, unwell or pregnant.

    While some people in Macau have flown home on commercial flights via Hong Kong, it is understood that those who have medical conditions or are pregnant did not want to do so for fear of becoming infected with the coronavirus while quarantined in the territory.

    One among the group being repatriated, a Singaporean who works in the events industry, suffered a heart attack at the end of last year and has been trying to return home for treatment ever since.

    The man, who did not want to be named, said that his doctor advised him to have another stent fitted after the emergency operation but he did not have full insurance coverage in Macau.

    He added: “It’s good that we can join our neighbors in returning home since there are very few Singaporeans compared with Malaysians here in Macau.”

    The flight was coordinated by fellow Singaporean Agnes Goh, who has lived in Hong Kong and Macau for around 30 years.

    “Before the confirmation on Thursday, we faced tremendous pressure to secure a flight because quite a number of healthy passengers were thinking of backing out and flying from Hong Kong instead,” she said. “This made the mission increasingly impossible.”

    In response to queries from The Straits Times on Friday, the Ministry of Foreign Affairs (MFA) said that it had been “working with all relevant parties involved to bring them home safely via a special flight”.

    Ms Celia Lao, chief executive of AirAsia Hong Kong and Macau, said the flight was initiated by the Malaysian consulate last month. She added: “Other transit passengers are also welcome to take advantage of this flight once it is confirmed. We are looking to achieve a minimum of 60 passengers.”

    As at 9.30pm on Friday, there were 41 Malaysians and nine Singaporeans confirmed for the flight. “Singaporeans in Macau may also return to Singapore via Hong Kong by commercial flights, after serving their 14-day compulsory quarantine in Hong Kong,” the MFA added.

  • AirAsia making Plans for Flying Taxi business next year

    AirAsia making Plans for Flying Taxi business next year

    Malaysian budget airline AirAsia Group on Saturday stated that plans are in the works to launch a flying-taxi business next year.

    Air Asia CEO Tony Fernandes on Saturday said that the company is working on the project, and it would take about a year and a half to launch it. He made these statements at an online discussion as part of the Youth Economic Forum.

    Fernandes further said that the flying taxis will be powered by a quadcopter, and it will have as many as four seats.

    With the COVID-19 pandemic proving to be detrimental to the aviation business, Air Asia has now branched into the digital space, launching a “super app” that offers services from travel and shopping to logistics and financial services, thus diversifying its revenue stream.

    Meanwhile, Tata Sons will enhance its shareholding in a low-cost carrier — AirAsia India — by buying a 32.67 percent equity stake of its JV partner AirAsia Group Berhad.

    The budget airline is a JV in which Tata Sons owns 51 percent stake, while 49 percent is held with AAIL.

    After the transaction, Tata’s shareholding will go up to 83.67 percent, while that of AAIL will come down to 16.33 percent.

    In a regulatory filing made to Bursa Malaysia, AirAsia Group Berhad said the transaction via a share purchase agreement with Tata Sons was agreed by AAIL’s Board.

    Headquartered in Bengaluru, AAI flies to 19 domestic destinations across India with 33 Airbus A320 aircraft.

  • Vietnam not considering international flight resumption

    Vietnam not considering international flight resumption

    Vietnam is not considering a resumption of international commercial flights with the Covid-19 situation remaining intense globally and vaccine distribution uncertain.

    The pandemic has been complicated by the appearance of a new coronavirus variant, with no certainty a vaccine would be distributed on a large scale this year, Deputy Minister of Planning and Investment Tran Quoc Phuong told press Monday.

    Resumption of tourism activities would only occur when deemed safe, he stressed.

    Vietnam suspended commercial international flights in late March last year to contain the spread of the novel coronavirus.

    However, the country still allows a limited number of flights for experts, businesspeople, workers and overseas Vietnamese, who are all quarantined by up to 14 days upon arrival.

    Phuong said authorities are struggling to contain illegal immigration as travel demand spikes ahead of the Lunar New Year holiday, or Tet, which falls in February this year.

    Foreign arrivals last year fell nearly 79 percent to 3.84 million, according to the General Statistics Office.

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  • Bamboo Airways poised to expand international services

    Bamboo Airways poised to expand international services

    Bamboo Airways plans to launch more new routes to Asian destinations like Japan, Singapore, and Australia besides resuming services to Taiwan and South Korea.

    It will resume flights from Hanoi to Taipei in Taiwan on September 29 and Seoul in South Korea on October 7. There will be one weekly round trip to begin with.

    The airline will begin to fly on the HCMC-Tokyo sector from November 1 and the Hanoi-Tokyo sector from December.

    It will also begin service between the northern port city of Hai Phong and Singapore besides direct flights from Hanoi and HCMC to Melbourne, Australia, in the fourth quarter.

    A spokesperson for the airline said wide-body Boeing 787-9 Dreamliner aircraft would be used for long-haul flights, adding preparations are underway to fly to Europe once Covid-19 is contained globally.

    It is scheduled to start services from Hanoi and HCMC to London in the U.K. and Munich/Frankfurt in Germany in the first quarter of 2021 and is awaiting approval.

    Nguyen Ngoc Trong, the deputy CEO of Bamboo Airways, said there are long-term plans to fly to 27 European destinations. Vietnam suspended all international flights on March 25.

    Bamboo Airways, launched in January last year, was operating on 40 domestic and international routes before the pandemic struck in January. It reported a pre-tax profit of VND303 billion ($13 million) in 2019.

  • AirAsia Seeks Up to $600 Million Cash Injection to whitstand Crisis

    AirAsia Seeks Up to $600 Million Cash Injection to whitstand Crisis

    AirAsia Group is seeking to raise as much as 2.5 billion ringgit ($600 million) by the end of the year as it tries to survive a business slump exacerbated by the coronavirus pandemic.

    The Subang, Malaysia-based budget carrier may borrow up to 1.5 billion ringgit from banks and another 1 billion ringgit from investors, a spokeswoman said Tuesday. AirAsia is also in talks with local and foreign investors including private equity firms, strategic partners, and conglomerates, she said, confirming an earlier report that cited Group Chief Executive Officer Tony Fernandes.

    Airlines around the world are losing money after grounding thousands of planes as countries shut borders and restrict people’s movements. AirAsia, which last month posted its largest quarterly loss on record, resumed domestic operations in late April but its long-haul unit, AirAsia X Bhd., still isn’t flying. Auditor Ernst & Young said in July their ability to continue as going concerns may be in “significant doubt.”

    South Korea’s SK Group said in June that it was in talks to buy a small stake in AirAsia, without providing further details. AirAsia has also cut the salaries of management, trimmed jobs, and deferred plane deliveries in an attempt to shave costs by 30% this year.

    AirAsia is also evaluating its operations in Japan and will make a decision very soon, the company’s spokeswoman said Tuesday. Its India venture remains as is, she said without elaborating. The airline is looking to consolidate and strengthen its business in Southeast Asia, even if that means exiting Japan and India, Reuters reported earlier.

    AirAsia said last month that it needs to reach agreements with major creditors to restructure outstanding debt because it faces “severe liquidity constraints” that threaten its ability to resume flying and continue as a going concern.

    The long-haul budget unit and its AAX Leasing Two Ltd. have received a claim from BOC Aviation Ltd. regarding $23 million of outstanding amounts due under lease agreements, according to an exchange filing Friday. AirAsia X, which said it is seeking legal advice, leases four aircraft from BOC.

    AirAsia is one of Airbus SE’s major customers for A320s while AirAsia X is the world’s biggest customer of Airbus A330neo planes. AirAsia X has 78 of the aircraft on order, according to Airbus’s website, and has already deferred the delivery of some A330neos.

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