SE Asians: Meet Aseanita

JAKARTA – As the Association of Southeast Asian Nations reached its 45th birthday Wednesday, it’s still struggling to get its ten members to agree on some key issues – like what to do about tensions in the South China Sea.

But the middle-aged economic bloc can at least celebrate what may be the first truly Asean company: AirAsia.

Asia’s largest low-cost carrier’s fast-talking founder, Tony Fernandes, not only opened a new Asean headquarters this week but also moved from Kuala Lumpur to Jakarta to be closer to the Asean headquarters here.

“We started in Malaysia but now we have become an Asean company,” he told reporters from his new office in Jakarta Tuesday. “I hope that this will spur Asean governments into further integration.”

While Mr. Fernandes’s photo-op - flanked by ten models wearing the outfits of different Southeast Asian countries – was an obvious grab for a bit of free advertising , his claims regarding Asean are not just public relations spin.
Fifty-five of AirAsia’s 85 destinations are within Asean and most of the 10,000 people it employs are here as well. As it boosts its fleet from around 100 planes today to more than 500, most of those will also be flying in and out of this region.

Other companies are also trying to regionalize, including banks like CIMB Group Holdings Bhd, and consumer goods companies like noodle-maker PT Indofood CBP Sukses. But few can boast the multiple stock market listings and executive teams AirAsia has in the region.

Southeast Asia is home to more than 600 million people and has a combined gross domestic product larger than that of India. And while the region includes the whole spectrum of economic development – from Myanmar, one of the poorest countries in the world, to Singapore, one of the richest – the growing middle classes of Indonesia, Malaysia, Thailand and the Philippines are expected by many economists to make the region the next engine of growth for Asia.

The speed and stability of that growth will partly be decided on how successful the ten-member countries of Asean are at integrating their economies and financial markets – a process that is supposed to gain momentum between now and 2015, when Asean leaders are hoping to have some form of economic community in place. Mr. Fernandes’ industry will be an important testing ground of how far the countries are willing to go.

Asean has plans for an open skies policy which would allow AirAsia to streamline operations, as it would not have to deal with different regulatory regimes in each country.

Differing rules are the reason why AirAsia has had to create multiple joint ventures and stock listings around Southeast Asia. The rules also force airlines to go through different procedures to acquire landing rights and have different sets of pilots for each country. That’s a lot of inefficiency that a low-cost carrier would like to avoid to keep costs low.

AirAsia’s new headquarters will be home to less than 25 employees, but there are a lot of extra desks for it to grow as barriers to business are lowered.

In the meantime, the airline is promoting a new Asean consciousness through a doe-eyed cartoon character named Aseanita, whose Facebook page is dedicated to promoting Asean pride and culture. It asks fans of the page to figure out exactly what that means, but suggests that among things the people of Asean should be proud of are: boxer Manny Pacquaio, durian and the Khmer tattoo that runs down Angelina Jolie’s shoulder.

Whether Aseanita will trigger a new Asean consciousness remains to be seen. But hopes for the middle aged economic bloc are starting to bloom in some boardrooms.
“It is a massive market with massive potential,” said Mr. Fernandes. “People like us will be setting the trend.”

http://blogs.wsj.com/searealtime/2012/08/08/se-asians-meet-aseanita/

AirAsia Makes Jakarta Home

AirAsia, Asia’s largest low-cost carrier, has yet to decide if it will assume the debt of Batavia Air if its acquisition of the Indonesian carrier is approved.

“It is all still under due diligence,” Dharmadi, chief executive of AirAsia Indonesia, said on Tuesday.

Dharmadi’s remarks suggest that the $80 million acquisition it signed in late July did not include the debt.

AirAsia Group and Fersindo Nusaperkasa — which controls 51 percent of AirAsia Indonesia — signed an agreement late last month to buy control of Batavia Air for $80 million. Details of the agreement remain unclear, including the issue of the Indonesian airline’s debt. Dharmadi declined to disclose the size of Batavia’s debt.

Dharmadi is also the president director of Fersindo Nusaperkasa.

AirAsia would acquire 49 percent of Batavia Air and Fersindo would buy 51 percent. That would bypass the Indonesian regulation limiting foreign ownership of local airlines to 49 percent.

The deal is still awaiting approval from Indonesian regulators.

Meanwhile, AirAsia Group has made Jakarta its headquarters for its operations in Southeast Asia. Jakarta is now home to AirAsia Asean, which will act as the holding company of the six airlines currently operating under the AirAsia group.

“Why Jakarta? Because I think this is the heart of Asean,” said Tony Fernandes, group chief executive of AirAsia.

Fernandes officially opened AirAsia Asean’s office in the Equity Tower in Jakarta’s Sudirman Central Business District.

“It is a no-brainer about being here,” he said. “It’s a massive market with massive potential. It is the center of Asean. It’s where the Asean secretary general’s office is, and it has enormous tourism potential,” he said.

He said Indonesia’s capital would support AirAsia’s growth in the region, with most Southeast Asian nations within three hours of Jakarta.

With its move for Batavia Air, AirAsia hopes to boost its share of Indonesia’s domestic market by as much as 15 percent in two years. It is currently at about 8 percent when you combine AirAsia Indonesia and Batavia’s market share.

Fernandes hopes that by setting up a regional operation, the group will encourage Asean authorities to proceed with their plan for an open sky regulation in the region by 2015.

“I hope this will spur Asean governments into further integration,” he said.

Using Europe as an example, with its one aviation authority, he said the integration would help the region develop its aviation industry.

With 600 million people in Southeast Asia, the region holds massive potential, Fernandes said. The majority of the 30 million passengers that AirAsia is targeting this year are flying within Asean borders. Creating new routes and destinations tops the airline’s list of priorities.

http://www.thejakartaglobe.com/corporatenews/airasia-makes-jakarta-home/536332

AirAsia hurdles ownership issues, awaits long-term permit

AIRASIA, INC. (AirAsia Philippines), which currently operates on a one-year provisional authority, is poised to bag a five-year permit from regulators after proving that the airline complies with the foreign equity limits.

In a board meeting late Thursday, the Civil Aeronautics Board (CAB) decided to give the airline a certificate of public conveyance and necessity (CPCN) to operate domestic and international flights for the next five years.

“The board is set to give them the CPCN, which means that [issues surrounding] its ownership [structure] has been resolved,” Ma. Elben S. L. Moro, head of CAB’s hearing and examiners division, said in an interview on Thursday.

But the approval remains just “in principle” until a final resolution is signed by the board composed of representatives from the Tourism and Transportation departments and the Civil Aviation Authority of the Philippines, Ms. Moro noted.

CAB Executive Director Carmelo A. Arcilla, in a separate text message yesterday, said the final resolution “may be released next week or the following week.”

Sought for comment, AirAsia Philippines Chief Executive Marianne B. Hontiveros welcomed CAB’s decision.

“Their accusations [that we breached the foreign equity limit] were absolutely not true… We are excited to be finally given the CPCN,” Ms. Hontiveros said in a telephone interview on Friday.

Local carriers Cebu Pacific, Philippine Airlines, Zest Airways and Airphil Express had earlier took issue with the company’s equity structure, management control, and its capability to mount flights, CAB documents showed.

AirAsia Philippines maintained that it is only 40% owned by Malaysia’s AirAsia Bhd., with Philippine businessmen Antonio O. Cojuangco III, Michael L. Romero along with Ms. Hontiveros each owning a 20% stake.

Ms. Hontiveros said the permit will allow the company to map out long-term plans, including a possible listing debut. -- Cliff Harvey C. Venzon

AirAsia Japan is officially in the air

TOKYO- AirAsia Japan, the newest low-cost carrier (LCC) based in Narita International Airport, started services on domestic routes with daily flights to Fukuoka and Sapporo on August 1st .

The inaugural flight to Fukuoka (JW8541) took off sharp at 0700hrs with a flight load of 80%, while the inaugural flight to Sapporo (JW8521) took off with a total of 157 guests on board.
Celebrating the inaugural flights, Kazuyuki Iwakata, CEO, AirAsia Japan said, “AirAsia and ANA entered into a joint venture only about a year ago and the response has been overwhelming. I am delighted and emotional to see our first flights take off today to Fukuoka and Sapporo. I would like to express our heartfelt thanks to everyone who has supported and assisted us. We hope to get your continuous support as we take all effort to ensure that we provide the best quality service and affordable air travel for everyone.”

AirAsia Group CEO, Tony Fernandes said “This is a dream come true for all of us at AirAsia. I have always believed in dreaming the impossible, but seeing AirAsia Japan’s inaugural flights take-off today puts a smile on my face. It has only been one year since we announced AirAsia Japan’s establishment and now we already have 2 aircraft, 243 staff in Japan and 3 domestic routes on the day we start our operations. Congratulations to Kazuyuki and his team for pulling this off.”
In conjunction with this history making occasion, AirAsia Japan hold a special celebratory campaign with extremely low fares offered between August 2nd and 5th.

AirAsia eyes the region with Asean base in Jakarta

http://biz.thestar.com.my/news/story.asp?file=/2012/8/7/business/20120807173422&sec=business

JAKARTA: AirAsia group officially launched AirAsia asean here on Tuesday, which will be the low-cost carrier's regional base to expand into Southeast Asia.

AirAsia said the launch reaffirmed the group's commitment to the Asean region which it considered home. The launch also coincided with the eve of the 45th anniversary of the Association of Southeast Asian Nations (ASEAN).

It said in a statement that with its new regional base, AirAsia strengthened its position as the Asean airline.

AirAsia asean was set up as part of the group's regional expansion strategy, which included six airlines, five of which were anchored in Asean. They are the short-haul carriers AirAsia Malaysia, AirAsia Thailand, AirAsia Indonesia, AirAsia Philippines and AirAsia Japan, and the long-haul carrier AirAsia X.

Group CEO of AirAsia, Tan Sri Tony Fernandes and deputy group CEO Datuk Kamarudin Meranun will be based at the AirAsia asean office.

Fernandes said AirAsia's regional base in Jakarta would help it to more fully deliver on its pledge “Now everyone can fly” to all the people of Asean and beyond.

“We are blessed to be located in a part of the world where economic growth is expected to be sustained despite the chilly economic winds blowing through Europe and the United States.

“Shifting AirAsia's emphasis to a regional strategy is, we believe, not just good business, but also a move that will keep us ahead of the inevitable competition that is heading our way," Fernandes said.

AirAsia asean would prepare the group for the implementation of the Asean Open Skies policy and the Asean Economic Community.

"AirAsia asean will help ensure that our voice, our concerns and our appeals are heard much more clearly in the corridors of power with ASEAN. One of the reasons for locating the office in Jakarta is to help us engage more closely with the Asean Secretariat, which is headquartered here," Fernandes said.

Mandalay next destination for Thai AirAsia

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Budget Carrier Takes Aim At Myanmar

Leading low-cost airline carrier Thai AirAsia will commence services to Mandalay from Bangkok starting October 4th.

The airline already flies to the gateway city of Yangon.

According to comments in the Bangkok Post by TAA's Chief Executive Tassapon Bijleveld the carrier is targeting two additional destinations - the popular tourist destination Bagen and new capital Nay Pyi Taw in the near future.

As investors continue to flock to the emerging country, traffic to Yangon has created a bottleneck. TAA's strategy to go direct to other key locations looks to be a strategic move.

AirAsia Groups' Facebooks

 

AirAsia Facebooks with fans numbering close to 100K