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.

We'll be back soon

AirAsia India Facebook. 400K 'LIKES' even before launch

AirAsia shifts operations to new International terminal in Chennai

http://newindianexpress.com/business/news/AirAsia-shifts-operations-to-new-International-terminal-in-Chennai/2013/10/22/article1848051.ece

ByENS Economic Bureau - BANGALORE

Published: 22nd October 2013 07:27 AM

Last Updated: 22nd October 2013 07:27 AM

 

Malaysian-based International carrier, AirAsia has shifted its operations to the New International Terminal, Chennai (NITC) Airport from its earlier location in Anna International Terminal from Monday.

The carrier is slated to start operations in India by December 2013. The company entered into a partnership with Indian business house, Tata and Telstra Tradeplace in a 49:30:21 share respectively.
The company said that all flight departures from Chennai will be based and operated at the NITC but arrivals will continue to be at the old terminal.

The new proposed carrier received a No Objection Certificate from the Ministry of Civil Aviation in September this year. Earlier, the company said that they will begin the process of obtaining an Air Operating Permit and prepare to kick-start its operations. However, operations in their new location could become slightly more expensive as they move to the `2,000 crore new terminal, which has the capacity to handle over 4 million passengers annually.

According to AirAsia chief, Tony Fernandes, the company will initially invest $50 million and have three aircraft and over 200 people for their operations here.

http://business.inquirer.net/148595/airasia-zest-launches-flights-to-miri-malaysia-to-service-ofws

AirAsia Zest launches flights to Miri, Malaysia to service OFWs

By Miguel R. Camus
Philippine Daily Inquirer

AirAsia Zest, the domestic unit of Malaysia’s AirAsia Berhad, is launching its Manila to Miri, Malaysia route as it seeks to widen its presence abroad, a statement on Monday showed.

The airline, which would be the first to fly from Manila to Miri, famous for its rainforests and limestone formations, said the promo fare will start at P460, one way.

“AirAsia Zest is pleased to announce that we are the first and only airline servicing Manila to Miri route, giving our passengers and OFWs (Overseas Filipino Workers) access to this majestic city,” AirAsia Zest executive vice president and chief operating officer Joy Caneba said.

Guests who will avail themselves of this promo will be able to travel from Dec. 7, 2013 to April 14, 2014, the statement showed.

“AirAsia Zest’s brand of air travel is characterized by efficiency and good service and we are all geared up to welcome our guest to this new route on Dec. 7, when we commence operations,” Caneba said.

AirAsia Zest flights from Manila to Kota Kinabalu will also increase in frequency from 4 times to 14 times weekly effective Dec. 1, according to Caneba.

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The newly rebranded airline has also announced that it will launch new flights from Cebu’s Mactan International Airport to Kuala Lumpur on Dec. 1 and to domestic destinations of Puerto Princesa (Palawan), Davao and Cagayan de Oro on Nov. 15.

Miri is the second largest city in the Malaysian state of Sarawak in Borneo. The discovery of oil 100 years ago transformed Miri from a quiet fishing village into a wealthy city.

ZestAir was recently been rebranded as AirAsia Zest to reflect its partnership with AirAsia, the largest low-cost carrier in the region.

AirAsia Zest, meanwhile, operates a fleet of 13 aircraft and services nine domestic and four international routes from Manila’s Ninoy Aquino International Airport.

The move came as Air Asia Philippines, an affiliate of AirAsia Zest, suspended its flights out of Clark International Airport to support the operations of AirAsia Zest.

Air Asia Philippines CEO Marianne Hontiveros said flights from Clark to Hong Kong would temporarily resume for the Christmas holidays.

========================================

AirAsia Zest to offer more flights from Cebu

by Jon Carlos Rodriguez, ABS-CBNnews.com

Posted at 10/11/2013 5:26 PM | Updated as of 10/11/2013 6:17 PM

 

MANILA – AirAsia Zest, the rebranded airline of sister firms AirAsia Inc. Philippines and Zest Airways Inc., announced on Friday that it will be offering more flights from Cebu.
Joy Caneba, now COO and EVP of AirAsia Zest, said tickets to Puerto Princesa, Davao, and Cagayan de Oro will go on sale starting Monday, October 14.
AirAsia Zest will fly to Davao and Cagayan de Oro daily while flights to Puerto Princesa will be offered four times a week.
“For as low as P533 all-in fare, you can go to those destinations from Cebu,” Caneba said in a press briefing in Makati.
Travel dates for the introductory promo rate will be from November 15, 2013 to April 14, 2014.
Caneba also announced that AirAsia Zest will be launching daily flights to Kuala Lumpur from Cebu starting December 1.
“When you go to Kuala Lumpur, you can have a fly-through to other AirAsia destinations so you have access now to Australia, China, India and other destinations," said Caneba.
She added that the goal of the airline is to “dominate key hubs” in the Philippines and expand its reach to other Asian destinations.
AirAsia Zest is also planning to add another Airbus A320 to its fleet by the end of the year, increasing its fleet to 14.
Currently, AirAsia Zest flies to nine regional destinations and four international destinations-- Kuala Lumpur, Kota Kinabalu, Incheon, and Shanghai.
AirAsia Zest will announce more regional routes from Manila on October 21, which will also mark the formal launching of the rebranded airline.
Rebranding
Caneba admitted that the firm is still recovering from the losses incurred in the grounding of Zest Air flights in August 16, saying the incident is a “chip on the shoulder” of the low cost carrier.
“The strategic plan of Air Asia is to end the year in a positive note…We want to prove that we still have the support of the public and with this rebranding, it will turn things around for us,” she said.
Caneba believes that the AirAsia brand will help increase passenger traffic and restore confidence in the airline.
“With the AirAsia name on board, we feel that we will be able to offer better service and convenience to the passengers. There will be a lot more services and products that will be rolled out in a couple of months and years to come,” she said.
More equity
Caneba said AirAsia Philippines is planning to increase its stake in Zest Airways Inc., but the move needs to be approved by both houses of Congress.
She said the airline has informed the Committee on Franchise of the House of Representatives and submitted its corporate documents to signify its intention.

“A franchise is also a law and there is a certain process that we have to go through in both houses. The basic requirement is the intention to acquire more equity and the transfer of controlling interest. You have to inform Congress who will be acquiring and who will be transferring,” she said.

AirAsia acquired an 85% economic interest and 49% voting rights in ZestAir, as well as a 100% interest in Asiawide Airways Inc.
ZestAir, in exchange, received $16 million and a 13 percent interest in AirAsia Philippines.

AirAsia is now eyeing to increase its 49 percent stake in ZestAir to a controlling stake of at least 51 percent.
===========================================

AirAsia moves to take control of Zest

AIRASIA Inc., operator of low-cost carrier AirAsia Philippines, has submitted to the House of Representatives a letter of intention to increase its stake in Zest Airways, Inc., a senior official of the Yao-led airline said Friday.

"We have already submitted our letter of intention to the Committee of Franchise of Congress," Zest Air Executive Vice-President and Chief Operating Officer Joy D. Caneba said in a press briefing in Makati City.

AirAsia Philippines needs congressional approval acquire more equity for a bigger stake in Zest Air, which has been rebranded as AirAsia Zest to reflect AirAsia’s investment.

"Hopefully we get it by the end of the year," Ms. Caneba said.

Currently, AirAsia Inc. has a 49% stake in Zest Air. The remaining 51% is held by former ambassador Alfredo M. Yao.

Ms. Caneba said the letter to Congress does not state how much more AirAsia plans to take in Zest Air, but admitted: "The intention is at least 51% and more".

"The basic requirements are the intention to acquire more equity, to transfer the controlling interest. Number two is you have to inform Congress who would be acquiring and who would be transferring (shares)."

NEW ROUTE
AirAsia Zest has also launched new routes from Cebu: Cebu-Puerto Princesa (four times a week), Cebu-Cagayan de Oro (daily), Cebu-Davao (daily), and Cebu-Kuala Lumpur (daily).

Flights along the new routes will start on Nov. 15.

AirAsia Zest currently flies to Kalibo, Puerto Princesa, Cebu, Davao, Tagbilaran, and Cagayan de Oro from Ninoy Aquino International Airport Terminal 4.
"What’s good with the Cebu-Kuala Lumpur (route) is when you go to Kuala Lumpur you can fly to other AirAsia destinations so you have access to Australia, China, and other 85 destinations of AirAsia," Ms. Caneba said. -- L. C. S. Marasigan
 

AirAsia Zest to lease new planes by 2015

By Miguel R. Camus
Philippine Daily Inquirer

Budget airline AirAsia Zest, which was recently renamed from Zest Airways, is aiming to grow its fleet by 50 percent in two years as it seeks to tap new destinations in the country and overseas, an official said on Friday.
AirAsia Zest director Joy Caneba said in an interview that discussions were being held to acquire via lease deals as many as seven mid-range Airbus A320s through 2015, to end that period with 21 planes.
The expansions comes amid commitments of support from the AirAsia Group of Malaysian tycoon Tony Fernandes, which earlier said it would infuse about $100 million into the budget carrier established by juice magnate Alfredo Yao in 2008.
The move would also increase Air Asia Zest’s market share, currently at about 10 percent of domestic flights, with the lion’s share going to Cebu Pacific, PAL Express and Philippine Airlines.

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A longer-term plan, beyond five years, could involve mounting flights to long-haul destinations in Europe or the United States, Caneba said.

“With the rebranding, we have been aligning the business,” Caneba said
More planes will allow the airline to serve new routes in North Asia like Japan and South Korea, as well as parts of China, she said. For domestic flights, the carrier was set to announce three new routes out of Cebu, namely, Davao, Puerto Princesa and Cagayan de Oro.
Prior to rebranding, AirAsia came into Zest Air as a minority investor, given the latter’s attractive slots at Manila’s Ninoy Aquino International Airport. AirAsia’s own Philippine unit said it would temporarily stop flights out of Clark International Airport to allow the group to focus on Manila

AirAsia India Facebook - now over 100K fans

AirAsia India Facebook

AirAsia India Walk-in Interview

AirAsia incorporates Indian venture; files all papers with Corporate Affairs Ministry

http://profit.ndtv.com/news/corporates/article-airasia-incorporates-indian-venture-files-all-papers-with-corporate-affairs-ministry-320238

Gearing up to launch services in partnership with Tatas, Malaysian low-cost carrier AirAsia has incorporated a company in India with the filing of all requisite documents with the Ministry of Corporate Affairs.

The venture, AirAsia (India) Pvt Ltd, was incorporated as an "Indian non-government company" with its registered office in Mumbai. It will be an "unlisted" company, as per the documents filed with the Registrar of Companies (RoC).

The private sector company was incorporated on March 28, 2013 with an initial authorised capital of Rs. 5 lakh.

A company can change its share capital, as also other details, at a later stage.

Most of the existing air carriers present in the country, including SpiceJet, Go Air, Kingfisher, Jet Airways and IndiGo have authorised share capitals running into hundreds of crores of rupees, their RoC filings show.

Among various documents submitted by AirAsia (India), the incorporation certificate was filed on March 28, while Article of Association, Memorandum of Association, image of airline logo and other forms were filed earlier on March 11.

Prior to that, AirAsia had registered the name for its Indian venture on March 1, after getting the necessary approval from the ministry.

The filing process for this new venture has been completed on a fast-track basis, a senior official said.

AirAsia chief Tony Fernandez has also tweeted that the company formation has been done for the Indian venture.

"Airasia India pvt has been formed. One more step. Been studying the Indian market hard. Exciting. We can make a difference," he wrote on the micro-blogging site.

The Foreign Investment Promotion Board has already approved investment in the new venture, wherein Malyasia-based AirAsia would hold 49 per cent stake, Tata Sons will have 30 per cent and 21 per cent stake would be owned by Telestra Tradeplace's Arun Bhatia, whose son is married to the daughter of NRI billionaire Lakshmi Mittal.

Being started with an initial investment of $14.5 million (about Rs. 80 crore), AirAsia India will compete in the domestic passenger aviation space with Jet Airways, Spicejet, IndiGo, Go Air and state-run Air India.

The airline now needs to get a no-objection certificate from the Aviation Ministry,
and thereafter an air transport license from the DGCA (Directorate General of Civil Aviation) to be declared a scheduled airline.
AirAsia India would also mark the re-entry of Tatas into the aviation space after about 60 years of JRD Tata-founded Air India being nationalised in 1953.

AirAsia and Tatas announced their plans to start the low-cost airline in India on February 20, while the FIPB approved the foreign investment for the venture in March.

AirAsia may fly from Chennai to Bangalore, Kolkata, Kochi

As listed on Airline Network and News analysis website, whose predictions are based on potential passenger market size, distance from Chennai & competition

AirAsia may launch flights to Bangalore, Kolkata, Coimbatore, Kochi, Nagpur and Bhubaneshwar from its Chennai base, an aviation website has said. The Malaysian-based low-cost airline plans to start its India operations by the end of this year. The airline's group CEO Tony Fernandes has said the airline will link tier II and tier III cities from Chennai with 3-4 Airbus A320s in its initial launch phase. Fernandes also ruled out operations to Delhi and Mumbai because of high aeronautical tariffs.

Airline Network and News Analysis, a website which tracks route planning and network development news has evaluated AirAsia's potential network in India. AirAsia did not respond to an email query on the issue. However, an official involved in the launch of the service in India said all these routes are possible. "It is too early to say which routes AirAsia will fly and which will be the inaugural service,'' the official said.

The website's predictions are based on the potential passenger market size, distance from Chennai and competition.

"As low-cost airlines typically like to 'join-the-dots', Bangalore and Kolkata would seem to be the most likely Tier I opportunities, as AirAsia already flies to both destinations from Kuala Lumpur. Competition on the Kolkata route will be against Jet Airways, SpiceJet, Air India and IndiGo – a combined 56 weekly flights – and it will be fiercer on Bengaluru, where the same four airlines fly 101 weekly services,'' the website has said.

It also states that AirAsia could look to start new routes from Chennai. Currently there are no direct flights from Chennai to Guwahati, Lucknow, Jaipur, Srinagar, Nagpur, Bhubaneshwar and Indore. The website claims that the airline could launch flights to Nagpur and Bhubaneshwar which have connectivity with Mumbai and Delhi but do not direct have air link to Chennai. Another possible route includes Chennai-Surat, the websites says.

The routes which AirAsia will fly will also depend on whether it secures a national operating permit or regional permit. While civil aviation minister Ajit Singh said there will be no problem in AirAsia getting a national permit a section of officials in the ministry believe that the airline should first be only granted a regional permit. Other issues related to potential network will depend on route dispersal guidelines which make it mandatory on airlines to fly certain routes including those to North East or Andaman and availability of slots.

AirAsia-Zest Air Strategic Partnership

Zest Airways Chairman Donald Dee, AirAsia Group CEO Tony Fernandes, Philippines’ AirAsia CEO Maan Hontiveros, Zest Airways CEO Ambassador Yao, Philippines’ AirAsia Chairman Tony Boy Cojuangco, Philippines’ AirAsia Vice Chairman Mikee Romero, joined by Cabin Crew from Philippines’ AirAsia and Zest Airways, at the Dusit Thani Hotel for the AirAsia-Zest Air Strategic Partnership.

AirAsia's India entry to mark arrival of truly low-cost airline; may face delay in clearances

AirAsia gets Govt approval for name of Indian JV

http://businesstoday.intoday.in/story/airasia-gets-govt-approval-for-name-of-indian-jv/1/193168.html

The Ministry of Corporate Affairs has approved the name of AirAsia's India venture company 'AirAsia (India) Private Ltd', which the Malaysia-based low-cost airline is launching in partnership with Tatas.

The name of the new company has been registered in the state of Maharashtra and the approval was granted by the Ministry of Corporate Affairs (MCA) earlier this month, a senior official said.

The company is now in the process of incorporating itself in India and completing other formalities of submitting the required documents and certificates with the Ministry, he said. The filing process for the new venture is being completed on a fast-track basis, he added.

Before incorporating itself in India, a company needs to get its name approved by the Ministry of Corporate Affairs, after which it is required to file an application for incorporation.

Thereafter, the company needs to file a notice of situation of registered office, followed by filings related to particulars of appointment of managing director, directors, manager and secretary.

The country's foreign direct investment clearance body FIPB (Foreign Investment Promotion Board) has already approved investment in the new venture, wherein Malyasia-based AirAsia would hold 49 per cent stake, Tata Sons will have 30 per cent and 21 per cent stake would be owned by Arun Bhatia of Telestra Tradeplace.

Being started with an initial investment of USD 14.5 million (about Rs 80 crore), AirAsia India would compete in the domestic passenger aviation space with the likes of Jet Airways, Spicejet, IndiGo, Go Air and state-run Air India.

AirAsia and Tatas announced their plans to start the low-cost airline in India on February 20, while the FIPB approved the foreign investment for the venture earlier this month.

The airline needs to get a no-objection certificate from the Aviation Ministry and thereafter an air transport license from the DGCA (Directorate General of Civil Aviation) to be declared a scheduled airline.

AirAsia India would also mark the re-entry of Tatas into the aviation space after about 60 years of JRD Tata-founded Air India being nationalised in 1953.

The company is also in process of finalising its senior executive team and hiring of other employees and plans to start operations later this year.

AirAsia chief Tony Fernandez recently tweeted that he has selected the CEO for AirAsia India and the final call would be taken by the Tatas.

AirAsia group recorded a 13 per cent passenger growth in 2012 with about 33.8 million passengers carried during the year in its Malaysia, Thailand and Indonesia operations.

With PTI inputs

Tune Hotels - India Middle East, Australia, Japan and Africa

http://www.mysinchew.com/node/83207

 

Tune Hotels on exponential growth path

  2013-02-21 11:43

NEW DELHI, Feb 21 (Bernama) -- Tune Hotel Group is set to grow exponentially from 2013 onwards with hotels mushrooming in India, Middle East, Australia, Japan, as well as, the African region, says Chief Executive Officer Mark Lankester.

By end-2013, Tune Hotel would be present in eight countries, he said. "Currently we are in Malaysia, Indonesia, Thailand, the Philippines and United Kingdom. India will be the sixth market followed by Australia and Japan," he said in an interview with Bernama.

In India, the first hotel would open in Ahmedabad, Gujarat, in April, followed by Melbourne, Australia, in November and one more in Japan, he said.

Next year, Tune Hotel would also open its doors in Mekkah, Madinah and Jeddah in Saudi Arabia, he said.

"We are looking at Europe as well. We are looking at Italy and we are finalising a deal in Vienna, Austria, amid the huge tourist potential there," he said.

In the African region, Tune Hotel is keen to enter Kenya, Tanzania and Uganda, he said, adding that the value hotel chain had already signed a deal in Nigeria.

"There is oil money in Nigeria. The economy is growing fast. There is huge demand amid a population 160 million people but there is no supply and the fact that there are no big international brands in the country it is a great time for us to gain a foothold there.

"We love countries that offer high room rates," said Mark.

He said Colombo, Sri Lanka, also offered good opportunity and Tune Hotel was eyeing that market too.

"In Colombo, we are looking but we have not got anything substantial as yet," he said.

Besides expanding into new territories, Tune Hotel is also keen to grow in its existing markets.
"Only by expansion you will benefit from the economies of scale," he said.

Currently, there are 11 hotels in Malaysia, five in United Kingdom, three each in Indonesia and Thailand and four in the Philippines.

In Malaysia, hotels will open in Melaka, Alor Setar, Cyberjaya and KLIA2 ( 400 rooms) and in United Kingdom while one more hotel would be located in Canary Wharf, he said.

"The total number of hotel rooms will change rapidly from now onwards as we have plans to open one to two hotels every month," said Mark.

He said the key aspect was to continuously expand without over-stretching as campaign, advertising and brand building was equally important.

Asked on competition, he said there are rivalry at every place but it is all about offering the right product and services priced reasonably to attract customers.

Going forward, Mark said there was potential for Tune Hotel to go into full-fledged hotel services.
Although he did not provide a timeframe, he noted that at some stage it would make sense to offer a four-star hotel facility.

"By then, we would have built up certain amount of expertise. Just like how after AirAsia, AirAsia X came about," he added.

KLIA2