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Tag: frequency

  • AirAsia X’s 3Q flight frequencies fail to boost overall capacity

    AirAsia X’s 3Q flight frequencies fail to boost overall capacity

    AIRASIA X Bhd’s additional flight frequencies in the third quarter of the year (3Q19) were insufficient to boost overall capacity, MIDF Amanah Investment Bank Bhd said.

    The long-haul affiliate of low-cost carrier AirAsia Group Bhd increased flight frequencies to Gold Coast, Sydney and Melbourne to cater for increased demand following the school-term holidays in Australia.

    However, this was insufficient to boost overall capacity, causing AirAsia X’s average stage length to remain flat on a yearly basis between July and August this year.

    In 3Q19, AirAsia X’s average seat per kilometer (ASK) declined by 3% year-on-year (YoY), outpacing the 2% YoY dip in revenue per kilometer (RPK).

    “This was due to seasonal capacity management which saw the total capacity (-3% YoY) decline more than the number of passengers carried,” MIDF said in a research note yesterday.

    The destinations involved were Sapporo and Taipei in response to weaker demand during the leanest season of the year for these routes.

    Meanwhile, AirAsia X Thailand recorded a 32% YoY increase in passengers carried in 3Q19, underpinned by additional seat capacity and the inauguration of the fifth Japanese destination, Fukuoka, on July 2019.

    ASK grew at a faster pace of 48% YoY due to high capacity, leading to a decline of 10 points in load factor to reach 77% in 3Q19.

    MIDF forecasts a loss of RM8.1 million for AirAsia X in the financial year ending Dec 31, 2019 (FY19), and lower earnings of RM45.6 million for FY20.

    “We are imputing a lower jet fuel estimate as our Brent crude oil estimate for FY19 has been lowered to US$63 (RM264.60) per barrel (previously US$70 per barrel).

    “Nonetheless, the effect of lower estimated fuel expenses is moderated by a higher US dollar to ringgit rate of 4.15 (previously 4.08). We have also taken into account lower growth in capacity amid the group’s ongoing network rationalization exercises in its key markets,” the research house said.

    Moving forward, lower passenger service charges (PSC) of RM50 for international departures from Asean will deliver an additional boost to the current traveling trend.

    The PSC was revised last month for passengers traveling outside of Asean from RM73 to RM50, effective Oct 1, 2019.

    “Notwithstanding this, we believe the ongoing capacity deployment will remain a headwind for the rest of FY19,” MIDF added.

    The adoption of the Malaysian Financial Reporting Standard 16 will be a hurdle to AirAsia X, since the majority of the group’s fleet are leased, with gains from lower interest to be realized beyond the fifth-year of the leased term.

    MIDF maintained a Neutral call on the low-cost long-haul carrier with a target price of 17 sen per share based on the adjustment in earnings.

    AirAsia X share price closed one sen higher yesterday at 17 sen, valuing the airline at RM705 million.

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  • Garuda Indonesia Increases Flight Frequency of Routes to Australia

    Garuda Indonesia Increases Flight Frequency of Routes to Australia

    National airliner Garuda Indonesia (GIAA.JK) will increase its flight frequency to destinations in Australia during the holiday period from May to October, 2017.

    The company targets its passenger growth from flights to Australia to reach 650,000 passengers this year.

    “Flight frequency from Jakarta to Australia is increased to five times from four times each week, while the frequency for Bali-Australia route is raised to seven times from six times per week,” said M Arif Wibowo, President Director of Garuda Indonesia on Tuesday (3/7).

    He said the addition of frequency on flights to Australia will be adjusted with market demand during the holiday period. Thus the flight frequency will be different each period.

    The addition of frequency is part of Garuda Indonesia’s effort in meeting demands and rising market growth, and is line with the synergy commitment the company has implemented with Tourism Australia. The cooperation has boosted the number of passengers on Australia flights to more than 644,237 passengers in 2016.

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  • Thailand legislature passes new frequency act

    Thailand legislature passes new frequency act

    Many NLA members also clashed on the composition of the NBTC board which will now be a unified board with 7 members instead of 11 with a telecoms and broadcasting sub-board. Many of the legislators feared that the changes in the criteria such as age and experience would lead to a board filled with career bureaucrats.

    The selection process will see a 7-member committee (consisting of the chair of the country’s three courts, chair of the national anti-corruption commission, auditor-general, comptroller-general and governor of the bank of Thailand) to select 14 candidates to be sent to the upper house to vote on.

    Earlier there was widespread concern over article 13 that would force the NBTC to comply with the Digital Economy Commission policy and article 19 that gave the DE Commission final say as to whether the NBTC had complied with their plans or not.

    The new article 15 also allows for shared use of spectrum while articles 24 and 25 forces the NBTC to consider the greater good rather than just money when holding a spectrum auction.

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