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Tag: Malaysia

  • Change of guard as new CEO takes Malaysia Airports’ reins

    Change of guard as new CEO takes Malaysia Airports’ reins

    The new Director and Chairman of Malaysia Airports is YAM Tan Sri Dato’ Seri Syed Zainol Anwar Ibni Syed Putra Jamalullail, who took over from Tan Sri Dr Wan Abdul Aziz, who has served in the position for the last five years.

    Commenting on the contribution made by its former chairman, Malaysia Airports said: “Tan Sri Dr Wan Abdul Aziz has held the position for five years and during his stewardship has seen to the company’s significant achievements such as the successful opening of klia2 and full acquisition of Istanbul Sabiha Gokcen International Airport in Turkey – as well as the opening of Mitsui Outlet Park KLIA as a catalyst to KLIA Aeropolis.

    “His guidance and commitment at the Board has also steered the company towards charting its next phase of growth in Malaysia Airports’ five-year business plan Runway to Success 2020 (RtS2020) and launching of the KLIA Aeropolis Master Plan.”

    Adding his remarks at the end of his tenure at the airports company, Tan Sri Dr Wan Abdul Aziz said: “I believe Malaysia Airports has the capability to continue to create value for the ever-evolving aviation landscape – way into the future.

    “I am also confident that it will continue to reap the success of its innovative plans and hard work. This is the right time for me to make way for another leader at the helm to pursue the company’s vision and steer it towards achieving even greater heights.”

    The new incoming Chairman YAM Tan Sri Syed Zainol Anwar was formerly the Chairman of Nestlé (Malaysia).

  • Alibaba launches new sales channels in Singapore, Malaysia

    Alibaba launches new sales channels in Singapore, Malaysia

    Chinese e-commerce giant Alibaba Group Holding Ltd on Monday said it is launching new sales channels in Singapore, Malaysia, Hong Kong and Taiwan as China’s deep-pocketed e-commerce firms vie for new users in the region. The new service, branded Tmall World, will allow overseas Chinese users to buy goods from Alibaba’s Tmall, its popular brand-to-consumer retail site, the company said in a statement.

    “Alibaba will provide end-to-end solutions including logistics, payment, and localization support catering to each local market’s needs,” the statement said.

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  • Footwear company Red Wing opens first store in Malaysia

    Footwear company Red Wing opens first store in Malaysia

    Red Wing Shoe Company announced on Tuesday the grand opening of its first retail location in Kuala Lumpur. The store opening expands the footwear company’s retail footprint in Southeast Asia.

    The new store is a result of Red Wing’s partnership with Leeden National Oxygen (Leeden NOX), a distributor partner for over four decades. Prior to opening the new store in Kuala Lumpur, the two companies opened stores in Singapore.

    The Kuala Lumpur store, which is located in the Avenue K Shopping Mall, features an industrial work-themed interior with leather chairs, brick walls, and custom fixtures.

    In addition to offering the brand’s full product offering, including its namesake line, Vasque, the performance hiking boots and shoes collection, the Heritage collection that launched in 2008 and personal protective equipment and accessories, Red Wing Kuala Lumpur offers foot-scanning technology that identifies arch type, foot type and pressure points.

    “Red Wing Shoe Company has been a leader in the footwear industry for over 110 years, and for more than 50 years it has grown to become a top provider of head-to-toe solutions for the international energy industry,” said Paul Olson, Managing Director, Eastern Hemisphere for Red Wing. “From oil rigs to shipping docks, factory floors to refineries, we’ve supported Malaysian oil and gas workers for over three decades through our distribution services, and we’re now excited to offer those workwear products as well as new offerings for lifestyle and hiking footwear through our Kuala Lumpur retail store location.”

    Established in Red Wing, Minnesota in 1905, the Red Wing Shoe Company is a global designer, producer, and distributor of work, safety and lifestyle and work apparel. Today, Red Wing is distributed in over 110 countries in a multi-channel environment of 500+ stores, third party partners, and owned e-commerce platforms.

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  • Samsung Experience Store Large unveiled at The Gardens Mall

    Samsung Experience Store Large unveiled at The Gardens Mall

    Samsung Malaysia Electronics relaunched one of its most prominent Samsung Experience Store Large (SESLs) in Malaysia at The Gardens Mall here.

    Being only one of a handful of SESL establishments in the country with vast retail area that integrates merchandising, experiential zones and customer services, the grand reopening marked the establishment’s first major revamp since its inception in 2013.

    Samsung Malaysia Electronics said the SESL, operated by Welfon Telecommunication Sdn Bhd, is designed to be a one-stop retail solution, offering the full range of smartphones, tablets, wearables, ecosystem and genuine accessories.

    The company’s Head of Mobile Business, Hosea Heen, said the new flagship store concept is a reflection of the Samsung philosophy to provide the best costumer experience.

    “With this new SESL located at one of the prime shopping locations in the Klang Valley, we look forward to encouraging an open and welcoming (environment) that goes beyond just brick-and-mortar, and resonate with consumers from all walks of life,” he said.

    The SESL also provides the Samsung Smart Service, allowing customers to obtain after-sales care at the service centre, including full hardware repair, software upgrades, device consultation and advice.

    From June 9 to 27, in conjunction with the SESL’s grand opening, customers who spend over RM1,000 will receive a complimentary Mono Bluetooth Headset; while visitors who register their first payment via card will be entitled to a free Samsung Wireless Charger Stand worth RM279.

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  • Maxis’ continuous plans to enhance network in Sarawak

    Maxis’ continuous plans to enhance network in Sarawak

    Maxis Bhd’s (Maxis) network expansion plans in Sarawak is an ongoing development, as it currently covers 89 per cent of the population with its 4G network.

    According to head of Sarawak region Alexius Bong, at this point in time, Maxis has no intentions to stop and will continue to expand “even to the smallest towns.”

    “Because you can’t hide the fact that people are consuming more data and you need that network to support (demand), it is definitely a focus in our plan to do that,” he revealed in an exclusive interview with The Borneo Post earlier this week.

    On plans to open more retail outlets in Sarawak, Bong stressed that Maxis is very focused on retail expansion and distribution footprint. It currently has nine Maxis centres and 15 dealer-operated retail stores in the state.

    “By this year end, we intend to add six more retail stores plus another 20 dealer-operated stores at the same time to increase our distribution footprint, it goes in tandem with our network,” he added.

    These plans will occur throughout Sarawak, with the focus now on secondary towns. Maxis also intends for customers to have the same experience whether they are visiting Maxis centres or dealer-operated outlets.

    Continuous network expansion will be one of the key areas Maxis focuses on in Sarawak this year.

    “We want to continue expanding our network, we have such a great product that syncs together with this,” Bong added.

    “At any one time, the focus of the network is not just the network itself – it ties back to the consumer.

    “With that, we want to ensure that whether it is prepaid, postpaid, or wireless broadband (WBB), we will continue to enhance our product proposition especially on internet offerings.

    “Of course, we will continue to expand our distribution and retail because market presence is significant in our business and is very important.”

    At the same time, Maxis would also like to relook at the small and medium enterprises (SMEs) in Malaysia and, how they can help SMEs digitalise the way they work.

    Head of prepaid, Navin Manian, highlighted that Maxis is also trying to give a much better experience by going purely digital for its customers.

    “It’s not just all product-centric, we also look into the customer experience,” Navin said.

    “So it’s a big drive now, for both postpaid and prepaid segments to move our customers from the old UMB usage behaviour to now the app and we have been doing very good in that space.”

    On the expected takeup rate for the prepaid segment in East Malaysia, Navin revealed that Maxis has been doing really well in the region over the past few years from a series of products that they have been launching.

    “We are very confident that this will continue a good growth trajectory for us here,” he added.

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  • Visa Partners ShopBack to Host Three-Day Buka Puasa Treats Online

    Visa Partners ShopBack to Host Three-Day Buka Puasa Treats Online

    Top Cashback platform ShopBack and global payment technology company Visa today announced a three-day Buka Puasa Treats ‘Jom Iftar Bersama ShopBack’ campaign, which will be organised in the form of online meals booking via ShopBack Malaysia’s Visa store from 14th – 16th June 2017.

    During the event period, the public can go to the site and order a meal/voucher from Eatigo, Fave by Groupon, Foodpanda, or PappaDelivery for themselves and the person they want to sponsor and enjoy a Buka Puasa dinner with, whereas Visa and ShopBack will giveaway RM25 Cashback to their accounts thereafter.

    “We are truly glad to team up with Visa on this campaign in the spirit of Ramadan. We hope to express our appreciation to our users and encourage the spirit of sharing among the online community in Malaysia, starting by ordering and sharing a meal with the people around us. The Cashback earned is meant to be transferred to their bank account after verification, which is also a savings that could be put to good use.” Alvin Gill, the Country Manager for ShopBack Malaysia said.

    Alvin expressed that the company has seen at least 60 per cent increment in terms of the number of users from its website and app in the past six months, which indicates more Malaysians are spending cautiously and constantly looking for the ways to save due to current economic challenges.

    Currently, there are more than 650,000 Malaysians making online purchases through ShopBack account every month. The company collaborates with over 500 international and online e-retailers such as Booking.com, Fave by Groupon, Foodpanda, Hermo, Lazada, Zalora and more to reward shoppers with up to 30% hard cash whenever they make a purchase online.

    ShopBack is the top Cashback platform in Southeast Asia that has enabled Malaysian online shoppers to save RM13.5 million thus far. Other than Malaysia, it also has a presence in India, Indonesia, Philippines, Singapore and Taiwan.

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  • AirAsia eyes local, international expansion

    AirAsia eyes local, international expansion

    AirAsia , who has been gunning for aggressive regional expansion with the signing of two separate joint-ventures in Vietnam and China in the first half of 2017 (1H17), will continue to emphasise on both local and international expansion.

    According to head of commercial Spencer Lee, AirAsia will continue to focus on expanding local connectivity and frequency amidst regional expansion in order to stimulate and maintain local market demand.

    “For us it is always about expansion and locally, we are aiming to close the gap on local connectivity with flights to unique destinations that people might not even expect.

    “For example for our current network in Sarawak, we have started Kuching Pontianak and Kuching Langkawai routes and are set to reveal another additional two new destinations from Kuching at the end of the year,” Lee revealed to The Borneo Post yesterday.

    This was during the inaugural AK1029 flight ceremony from Pontianak to Kuching held at Kuching International Airport yesterday.

    The Kuching-Pontianak route is the latest AirAsia route from Kuching and has begun its operations with daily flights between the two destinations. Its addition brings total AirAsia destinations from Kuching to ten and total weekly flights both ways to 468.

    The Kuching-Langkawi route on the other hand, is slated to begin operation sometime in August.

    Besides expansion on their airline business, Lee emphasised that the group would also be looking towards focusing on growth of their non-airline products such as their Tune travel insurance and their Big prepaid travel money card.

    “Now that have built our network and our passenger numbers, we believe that the one huge opportunity for us to grow even further is to build businesses that complements our entire business model by adding to the whole flying experience for our customers.

    “For example, with our BIG programme, we have amassed a huge database which we can use to improve our customer services, and our other offered products that seek to enhance the entire flying experience we offer.

    “I think at the end of the day, while we are primarily an airline, we believe that it’s about giving guests the best flying experience that extends beyond the actual flight.

    “Hence, at AirAsia, we are really aiming to build up an ecosystem were we can link and connect all of our businesses together.”

    Looking forward, Lee anticipates for the group to see another great year like they had in 2016, especially for Sarawakian operations due to increased partnerships with the local authorities, travel industry and state government with their expansion plans.

    “I hope that personally for Kuching, we will continue seeing a growth like the four per cent year over year (y-o-y) passenger number growth we saw last year and while we don’t have an estimate right now, you can rest assure that we will be aiming to beat last year’s figure.”

  • Air Asia X‘s Direct Flights from Bali Reduce Passengers Going through KL

    Air Asia X‘s Direct Flights from Bali Reduce Passengers Going through KL

    he number of tourists from China and India has seen huge improvements after e-visa services were made available, said Tourism Malaysia chairman Datuk Dr Siew Ka Wei.

    According to Siew in a statement, between March 2016 and April 2017, total of 284,606 and 323,173 Chinese tourists have applied for e-visa (electronic visa) and eNTRI (Electronic Travel Registration and Information), respectively. As for India, its tourists’ visas application also shot up by 91.1 per cent from 36,442 approved in March to 69,635 visas approved in April.

    “Following the green light from Prime Minister Datuk Seri Najib Razak to approve e-visa applications for multiple entries, the Home Affairs Ministry is working on the final details of the two-week multiple entry visa-free visit to Malaysia, which will boost this number even further.

    “In addition, they are also allowed to transit in Malaysia without a visa, on specific terms and conditions. “This improved facility is expected to help attract larger numbers of tourists from China and India to Malaysia who are looking for a holiday experience that offers diversity at an affordable price,” he said.

    He added that Chinese and Indian nationals can now apply for e-visa, eNTRI or VOA (Visa on Arrival), depending on the purpose of their visit to Malaysia. “These improvements have come at an opportune time to encourage more Chinese and Indian tourists to visit Malaysia.

    “Considering that visa arrangements are critical for the convenience of travellers, these facilities are expected to ease travel preparations, especially since it has the following features, namely online application system, faster processing time and reasonable fees,” he added.

    Meanwhile, Malaysian Association of Tours and Travel Agents (Matta) Inbound and Domestic vice president Datuk KL Tan said the number of tourists from China and India saw a drop lately due to aggressive promotions from neighbouring countries such as Indonesia, Thailand and Singapore.

    “These countries have increased their promotions and are targeting the Chinese and Indian tourists. “Indian tourists have dropped significantly as more countries such as Indonesia had extended free visa on arrival to Indian nationals. Thailand too had extended a similar policy until end of this year.

    “Their airlines have started to fly direct. Air Asia X Indonesia started direct flights from Bali to Mumbai and Bali to Kochi. These have reduced chances of passengers going through Kuala Lumpur,” said Tan.

    Tan added that most country’s tourist market have dropped especially in the ASEAN region.“Foreign tourists’ arrival such as those from Singapore, Thailand, Brunei and Indonesia has seen a decrease.“But for long haul markets, we are quite dependent on Chinese tourists.”

    He however applauded the improvements made by the government saying that an increase of visitors from any country is always good. “But India visitors dropped 35.1 per cent during the first quarter in 2017 compared to 11.6 per cent for whole of last year.

    “The visa fee is slightly on the high side. We would like to see for the government’s review on the visa fees, especially for India. “If everything goes right, we could get six million Chinese visitors and 1.5 million from India by 2020. Growth from the nine ASEAN nations will be steady, rising to 23.5 million by 2020 and the rest of the world, five million,” Tan said.

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  • Samsung Galaxy Tab S3 now available in Malaysia

    Samsung Galaxy Tab S3 now available in Malaysia

    Samsung Malaysia Electronics announced the availability of the Galaxy Tab S3, a stylishly designed tablet with advanced computing technology offering a premium mobile experience.

    Equipped with an S Pen designed to feel and write like your favourite ball pen, the Galaxy Tab S3 delivers versatile usage as a productivity tool.

    “The Galaxy Tab S3 is carefully crafted with versatile features and functionality that provide a dynamic user experience.

    “This tablet represents Samsung’s commitment to expand its tablet portfolio with premium technology and deliver the best of entertainment and productivity for users at home, work or on the go,” said Hosea Heen, Samsung Malaysia Electronics head of mobile business.

    Building upon its signature design, the Galaxy Tab S3’s minimal and refined design was achieved by affixing glossy, reinforced glass panels to an aluminium frame, resulting in seamless aesthetics.

    The Galaxy Tab S3 provides premium Galaxy technology including an enhanced S Pen, which allows users to be more productive, creative, and to multi-task.

    The Galaxy Tab S3 is the first Samsung tablet to boast powerful quad-stereo speakers crafted by AKG by Harman in each corner of the device.

    Housing a superb 9.7-inch Super AMOLED display with HDR (High Dynamic Range) video content support, the Galaxy Tab S3 also displays stunningly vivid images with true-to-life colours.

    Unveiled at this year’s Mobile World Congress, the Galaxy Tab S3 delivers on Samsung’s legacy of innovative Galaxy technology including a 13-megapixel rear camera with auto focus and a 5-megapixel front camera for high-quality photos.

    The tablet also includes expandable storage and more power efficiency with fast-charge capabilities, supporting up to 12 hours of video playback.

    Mobile entertainment is taken to the next level as the tablet provides a cinema-like experience with 4K video playback on its Super AMOLED display. Highly optimised for gaming, the Galaxy Tab S3 also comes equipped with Vulkan API for superior graphics and the new Game Launcher for an enhanced user interface and personalised gaming experience, as well as modes like ‘Do Not Disturb’ for uninterrupted gameplay.

    Samsung Flow uses biometric authentication for a safe and secure login and can wirelessly tether compatible devices to transfer documents from a mobile device to a tablet. It also syncs message notifications so users will never miss an important text message, whether they are using a smartphone or their tablet, making working on the go seamless.

    For power users always on the go, the Galaxy Tab S3 also supports Pogo keyboards as no charging or pairing is required. The tablet’s dedicated Pogo pin-connected keyboard locks into place securely so users can get to work quickly, and features a streamlined layout that optimises key spacing to promote accurate typing. USB Type-C compatibility, meanwhile, provides more convenient cable connections as well as much faster data transfers. The Pogo Keyboard Cover comes in gray colour and retails at RM499.

    A new selection of Galaxy Tab S3 covers will give stylish users the option to pair their tablet with soft-coloured Book Covers that feature powdery matte finishing and a lightweight design to complete the device’s stylish look.

    Its dual usage mode—Viewing Mode or Touch Mode—makes it perfect for propping the tablet up to touch with ease or standing it up to watch movies comfortably. The Book Covers are also designed to magnetically attach the S Pen for quick access.

    Available in black, white and green colours, the Book Covers retail at RM199.

    The Galaxy Tab S3 is available in Malaysia at Samsung Experience Stores nationwide, including e-commerce partners Lazada and 11street, as well as authorised dealers starting June 1.

    Offered in understated black and silver colours to suit the refined tastes of modern millennials, the powerful tablet has an attractive recommended retail price of RM2,999 inclusive of six per cent GST.

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  • Malaysia’s online sales set to quintuple by 2025, fashion leads

    Malaysia’s online sales set to quintuple by 2025, fashion leads

    Online sales in Malaysia, which is currently just above 1 per cent of total retail market, is likely to quintuple by 2025, says a report. The rise is due to online outpacing store-based retail, especially fashion sales. The Malaysian government has launched a strategic roadmap for e-commerce and rolled out several initiatives in partnership with the private sector.

    According to the Malaysia B2C E-commerce Market 2017 report by yStats, more than 50 per cent of online shoppers in Malaysia are less than 29 years old. Meaning, the continued maturity and wealth growth of this demographic sits well for the increase of online sales, said yStats.

    Moreover, Malaysia’s internet penetration is one of the highest in the region with approximately one third of internet users make purchases online, said report authors. The product category with the largest share of e-commerce sales in 2016 was clothing and footwear.

    Complementing the government-backed e-commerce development projects, other factors encouraging the growth of online retail in Malaysia are the ready infrastructure and favourable demographics in the Asian nation, said the report.

    In March, Malaysian Prime Minister Najib Razak launched a digital free trade zone along with Jack Ma, founder and executive chairman of Alibaba. At the time, the Chinese e-commerce company said it would set up a logistics hub in Kuala Lumpur that will serve as a regional distribution hub.

    It will be part of a digital free trade zone set to be developed close to the Kuala Lumpur International Airport.

    The e-commerce competition landscape in Malaysia is led by online marketplaces. Lazada.com.my and 11street.my were the most visited e-commerce websites in Malaysia in February 2017, according to a ranking included in the report.

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  • Three key areas that will help grow Malaysia’s retail industry

    Three key areas that will help grow Malaysia’s retail industry

    The e-commerce market is one. According to BMI Research, three specific areas: big-box boulevards, e-commerce, and duty-free shopping will be the key growth areas in Malaysia’s retail sector over the coming years. They are attracting significant investment initiatives that are in line with the government’s National Economic Transformation Program.

    The government is currently stimulating public-private investment in modern ‘big-box boulevards’-large scale integrated shopping malls on the outskirts of urban centres. Multinational corporations are predicted to be attracted by Malaysia’s strong outlook for consumer spending.

    “We forecast total household spending in Malaysia to expand at an annual growth rate of 7.5% between 2017 and 2021, rising from MYR774b ($250.12b) in 20 17 to MYR1t ($323.45b) in 2021,” BMI said.

    Malaysia’s e-commerce sector is still noted to be nascent, with consumers generally preferring to shop using cash in local stores due to a lack of trust with regards to online payments. However BMI estimates that this will gradually change as consumer purchasing habits evolve, supported by the government’s National e-Commerce Strategic Roadmap.

    “We forecast Malaysia’s e-commerce market to reach MYR21.04b ($6.81b) in sales in 2017, a 28.2% y-o-y increase,” BMI said.

    Malaysia’s tourist industry is another key part of the government’s economic transformation strategy, and like retail, is one of the 12 designated areas for investment. The government’s aim is to position Malaysia as a duty-free shopping destination for the Asia-Pacific Region, centred upon Kuala Lumpur International Airport.

    “Our forecasts for tourist arrivals into Malaysia will underpin growth in duty-free retail sales. 2017 will see 28.1m international tourists , rising at an average of 5.2% y-o-y to hit 34.3m by 2021. This will be driven by ongoing weakness in the Malaysian ringgit, making the country affordable for tourists,” BMI said.

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  • Consumer spending in Malaysia to increase 5.8% in 2017

    Consumer spending in Malaysia to increase 5.8% in 2017

    It will grow at an annual average of 5.3% between 2017-2021. BMI Research reported that consumer spending in Malaysia is set to increase. The rise will be brought about the increasing disposable income. Real household spending growth in Malaysia will continue to expand the medium term.

    However, it will be modest on the back of an uptick in inflation and slightly weaker currency. Household spending will become more dynamic over the medium term as the share of non-essential spending rises. BMI foresees household spending real to grow at an annual average of 5.3% between 2017-2021. In 2017 we project a y-o-y increase of 5.8%

    Rising disposable incomes will foster discretionary spending, highlighted by robust growth in education; restaurants and hotels; and recreation and culture spending. According to BMI, these categories are set to grow at an annual average rate of 8.7%, 8.5% and 8.2% respectively.

    Consumer spending in Malaysia will benefit from a youthful and increasingly urbanised population; rising household incomes; and low levels of unemployment. The growing middle class and relatively low inflation will help generate demand for non-essential items and luxury goods.

  • 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.

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  • 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.

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  • 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.

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