AirAsia set to fly into crowded skies

AirAsia India appears to have chosen destinations where it would face intense competition from other airlines, which fly directly to all these, barring one.

It hasn't formally announced its intended network but in what it sent the Directorate General of Civil Aviation, it says the main hub will be Chennai. And, listed 10 line stations, destinations where an airline does pre-flight departure checks, transit checks and routine maintenance of aircraft.

In AirAsia's statement of intent, put up on the DGCA website, it listed Bangalore, Trichy, Madurai, Coimbatore, Cochin, Goa Hyderabad, Ahmedabad, Jaipur and Pune as line stations. This might not be the final list; it can introduce flights to only some of the cities in the initial phase and can amend the list. A check of existing flight schedules from airline websites and the DGCA site shows multiple flights between Chennai and the 10 cities. The exception is Jaipur, connected to Chennai via Ahmedabad by a sole IndiGo flight.

"There is a potential to start additional services on Chennai-Ahmedabad and Chennai-Pune, especially for business traffic. We believe AirAsia could also utilise aircraft on certain routes on a seasonal basis. Goa flights are in demand in winter, so it could add a flight for only that season. We feel a part of the AirAsia strategy could be to launch international services from regional cities such as Coimbatore and Madurai, which do not have foreign connections," said an executive from a rival airline.
===========================
EXISTING DAILY DIRECT FLIGHTS
Does not include flights which operate on certain days of week or with one stop

• CHENNAI-BANGALORE
  12 flights
• CHENNAI-KOCHI
  6 flights
• CHENNAI-COIMBATORE
  7 flights
• CHENNAI-GOA
  2 flights
• CHENNAI-HYDERABAD
  12 flights
  CHENNAI-JAIPUR No direct flight. One flight via Ahmedabad
• CHENNAI-AHMEDABAD
  2 flights
• CHENNAI-PUNE
  4 flights
• CHENNAI-TRICHY
  4 flights
• CHENNAI-MADURAI
  8 flights

Air Asia’s Foray into Korea Makes Local Airlines Nervous

16 December 2013

 

Asia’s lowest-cost airline, Air Asia, is planning to launch its own subsidiary in Korea.

According to the Ministry of Land, Infrastructure and Transport (MLIT) and aviation industry officials on November 15, Air Asia has begun the process of establishing a subsidiary company in Korea, to be named “Air Asia Korea,” with aid from both financial investors and strategic investors.

And it is also preparing to submit applications for air transport business in Korea to MLIT.

Initially Air Asia will operate a domestic route between Cheongju and Jeju, and has plans to apply for an international route in the future.

In November, Air Asia’s CEO Tony Fernandes came to visit MLIT to present Air Asia’s roadmap, outlining its plan of operation.

Curious onlookers are watching closely at how Air Asia will operate its subsidiary.

At the moment, there are two obstacles to Air Asia.

First, there is a “rule that forbids a foreigner and/or foreign company from owning more than 50 percent share of an airline,” and there is a second “rule that prevents a foreign company from owning an airline.”

Last year, Air Asia was unsuccessful in its attempt take over T’way Air, Korea’s low-cost airline, because of these rules and domestic airlines’ objections.

Currently, the MLIT is mulling over whether or not it should accept Air Asia’s application.

It matters this time once again whether or not Air Asia’s entry into the Korean market will disrupt the aviation business and bring about inroads into the local market against the law of aviation that MLIT created to protect the Korean air transport and logistics industry.
This move is threatening Korea’s air transport industry, in particular the fledgling low-cost airlines that have just begun their baby steps.

An official for a local low-cost airline said, “Unreasonable pricing will have detrimental effects on the market,” adding, “Heated competition will eventually jack up prices, hurting consumers.”
 

- See more at: http://www.businesskorea.co.kr/article/2458/low-cost-airliner-air-asia%E2%80%99s-foray-korea-makes-local-airlines-nervous#sthash.pXaZKMkl.dpuf

AirAsia India to spread wings wide by end of first year

http://www.business-standard.com/article/companies/airasia-india-to-spread-wings-wide-by-end-of-first-year-113121300831_1.html

AirAsia India to spread wings wide by end of first year

To import 10 Airbus A320s and account for 7% of total domestic LCC fleet

Aneesh Phadnis | Mumbai

December 14, 2013 Last Updated at 22:54 IST

Low-cost carrier (LCC) AirAsia India, which is expected to launch its domestic services in partnership with the Tatas in February next year, has secured permission to import 10 Airbus A320 aircraft in the first year of its operations — about seven per cent of the country’s total LCC capacity. This will make the Malaysian carrier’s first-year fleet bigger than those of most others in the segment.

Air Asia’s capacity share is based on the premise that other competing airlines would use their entire new capacity in the domestic skies, though that is highly unlikely.

At present, IndiGo, the largest Indian LCC, has a capacity to ferry 60,000 passengers a day. It is expected to add 12 aircraft next year to increase its overall capacity to 73,000 seats a day. Compared with this, according to aviation experts, Air Asia should be able to fly 11,000 passengers a day by the end of its first year. On an average, a single plane is used for six domestic flights a day. The number of flights depends on route distance.

A closer rival to AirAsia would be Go Air, which is expected to have an average seat capacity of 18,000 a day after it has inducted three aircraft over the next twelve months.

SpiceJet, too, is likely to add three more planes to fleet next year. Taking these aircraft into account, AirAsia’s capacity after a year would a fourth of SpiceJet’s. Kapil Kaul, CEO for South Asia at the Centre for Asia Pacific Aviation (Capa) said: “I expect AirAsia to have more aggressive expansion. The full impact of its operations will be visible from 2015, but much of that depends on when it receives clearance from DGCA (The Directorate General of Civil Aviation) and when it launches operations.”

At present, the total number of seats offered by IndiGo, GoAir, SpiceJet and JetKonnect stands at 127,000 a day. These four airlines will collectively add 18 to 20 aircraft to their fleet over the next twelve months. According to analysts, the number of daily seats could rise by 15,000 to 20,000 after capacity augmentation during the period. But, all the new planes brought by the airlines may not be for the domestic routes.

AirAsia India is a joint venture among AirAsia Berhad (49 per cent), the Tata group (30 per cent) and Telestra Tradeplace (20 per cent). The airline had received a clearance from the Foreign Investment Promotion Board in March and a no-objection clearance from the civil aviation ministry in September. But it can file its schedule and secure slots only after it has received DGCA approval.

Earlier this year AirAsia India had announced it would launch services with three-four Airbus A320 aircraft, with a hub in Chennai. It also said South India would be its focus market and it would skip “high cost” airports, including the Mumbai and Delhi ones. Last year, the Malaysian airline had withdrawn its Kuala Lumpur-Delhi and Kuala Lumpur-Mumbai flights, citing high costs.

AirAsia to take off in Indian skies by February

http://www.moneycontrol.com/news/business/airasia-to-take-offindian-skies-by-february_1007206.html

AirAsia's launch, which was supposed to take place in January has been delayed by a month as the Malaysian airline has been awaiting operator's permit from aviation regulator, DGCA.
The aviation ministry has allowed AirAsia to import aircraft, but the launch has been delayed by a month - the carrier will now take to the Indian skies by February next year, reports CNBC-TV18’s Shereen Bhan.

 AirAsia has now managed to get a no objection certificate (NOC) from civil aviation ministry for the acquisition of aircrafts, which means the Malaysian airline can start the process of importing aircraft into India. But even that process is going to be closely linked to AirAsia getting air operator's permit, as AirAsia is not keen to get the aircraft into India and have them sitting on the ground unless they have a license to fly. Both these issues will be linked closely to each other, but at least it is one step forward. They can start the process of acquisition of aircraft. In Phase-I, they are looking at getting in four aircrafts. They may stagger them, they may get two first and two later and then eventually the plan is to actually get an aircraft in a month. As far as the launch is concerned, they are still pending clearance as far as the directorate general of civil aviation (DGCA) is concerned, the air operating permit has not come in and so, the earlier launch date was the end of 2013, but that has now been pushed. According to sources, earlier deadline of January is likely to be missed and now they are working with end of February, but all of this depends on by when the regulatory clearances come in. As of now, AirAsia is hoping to launch in India by February end, so it is one step forward, but not really more certain in terms of being able to kick-start in India as yet.

AirAsia to Launch Fly-Thru Services in Bangkok

From 1 December 2013, a brand new Fly-Thru service will allow AirAsia passengers to check their bags through and collect them at their final destination when transiting through Bangkok Don Muang International Airport.

Fly-Thru passengers will also be exempt from Don Muang’s airport tax.

Those who book Fly-Thru flights before 17 November 2013 can enjoy a promotional deal of up to 20% off for travel between 1 December 2013 and 29 March 2014.

AirAsia to Launch Fly-Thru Service in Bangkok. Click to Enlarge.

“We are excited that Don Muang International Airport is expanding its capacity to facilitate transit options for passengers. We have prepared a CIQ area for transit passengers on the second floor of the arrival area, with facilities including security checks, visa-on-arrival counters and immigration counters,” said Flying Officer Chaturongkapon Sodmanee, General Manager of Don Muang International Airport. “With so much traffic into Indochina from Ho Chi Minh city and Yangon via Bangkok, there is much potential for Don Muang International Airport to become a travel and transit hub to Indochina and other destinations. Such services will certainly be an advantage for business and leisure travellers flying through Don Muang and we look forward to constantly making the transit an easier and more convenient process.”

Santisuk Klongchaiya, Thai AirAsia’s Director of Commercial, said, “We are very pleased to offer more convenience to our passengers who can now easily transit to AirAsia’s extensive network of 34 Fly-Thru routes via Bangkok. Apart from AirAsia’s low fares, travellers will be able to check in one time and pick up all their checked-in belongings at the final destination. Other benefits for Fly-Thru passengers who are travelling from one international destination to another international destination via Bangkok include being exempt from airport taxes in Don Muang Airport, being exempt from a Thai visa requirement, and being able to skip the immigration line in Bangkok.”

“The Fly-Thru service will benefit leisure travellers, business travellers, and also those who live in other cities in Thailand. Leisure travellers include passengers from China to Thailand’s beach destinations such as Krabi and Phuket while business travellers may find the Yangon-Siem Reap or Yangon-Ho Chi Minh city route a convenient option. From Thailand, people who are living in Krabi, Chiang Mai or Phuket will be able to conveniently reach international destinations with ease,” added Khun Santisuk.

Thai AirAsia’s most popular routes that people self connect to include Macau-Phuket, followed by Guangzhou-Phuket and Chongqing-Phuket.

International passengers who are transiting to a domestic destination in Thailand (Chiang Mai, Phuket or Krabi) will be required to go through an immigration line upon their arrival in Bangkok, which is their first port of entry into the country. Meanwhile, visa requirements for the final destination still apply and airport taxes are still applicable at the origin destination.

AirAsia offers Bangkok connections

New Fly Thru service allows passengers to transit between flights at Don Mueang Airport

AirAsia has made it easier for passengers to connect between flights in Bangkok, with the launch of its ‘Fly-Thru’ service.
Passengers connecting from one AirAsia flight to another at the Thai capital’s Don Mueang International Airport can now transfer between aircraft without needing to check-in twice. Passengers’ baggage will also be checked through to the final destination, and passengers will be exempt from Don Mueang’s airport tax. The service will initially be available for 34 routes.
“We are very pleased to offer more convenience to our passengers who can now easily transit… via Bangkok,” said Santisuk Klongchaiya, Thai AirAsia’s director of commercial.
“The Fly-Thru service will benefit leisure travellers, business travellers, and also those who live in other cities in Thailand. Leisure travellers include passengers from China to Thailand’s beach destinations such as Krabi and Phuket while business travellers may find the Yangon-Siem Reap or Yangon-Ho Chi Minh City route a convenient option. From Thailand, people who are living in Krabi, Chiang Mai or Phuket will be able to conveniently reach international destinations with ease.”
The service is available for connecting flights not more than six hours apart. This will mean passengers from major cities such as Guangzhou, Kolkata, Chennai, Chongqing, Hong Kong, Wuhan, Shenzhen and Ho Chi Minh City will be able to connect via Bangkok to destinations such as Phuket, Krabi and Chiang Mai. It will also offer international connections including Singapore-Siem Reap, Singapore-Chongqing, Yangon-Ho Chi Minh City, Yangon-Siem Reap and Kolkata-Macau.
Transit passengers at Don Mueang will be able to wait in a new area on the second floor of the airport. International passengers transiting to a domestic destination in Thailand will still be required to go through immigration upon arrival in Bangkok, as it is their first port of entry into the country.
The launch of Fly Thru in Bangkok follows an existing service for AirAsia’s passengers transiting in Kuala Lumpur.

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