AirAsia in Vietnam  

Malaysian low-cost carrier AirAsia recently signed a letter of intent with state-owned Vietnam Shipbuilding Industry Group (Vinashin) to set up a new low cost-carrier in Vietnam to be called Vinashin AirAsia. It is to be 30%-owned by AirAsia and will initially operate on domestic routes using Boeing 737-300s, expanding later to international services. There has been speculation that the Vietnamese Government plans to block the establishment of the new airline, in part because of opposition from existing operators Vietnam Airlines and Pacific Airlines, which recently became part-owned by Australia’s Qantas Airways. But AirAsia says that, as far as they are concerned, everything is on track with the business proposal. AirAsia already has 49%-owned associate carriers in Indonesia and Thailand.
26 October 2007

Malaysian unions in joint civil aviation push 

The ITF has congratulated Malaysian trade unions who will tomorrow sign an agreement on how they can best represent workers at Air Asia. The MASEU, AIROD, MHS Aviation and CAATCSU unions will sign the memorandum of understanding at 10.30 tomorrow at the Hotel Singgahsana, Petaling Jaya. Among the guests will be the Hon. Dato Abdul Rahman Bakar, Deputy Minister of Human Resources. 3 September 2007
[read the press release]

Virgin investing in AirAsia's long-haul carrier  

Malaysian low-cost carrier AirAsia’s planned long-haul sister airline is to name a foreign investor later this week, as speculation grows that it will be Richard Branson’s Virgin Group. The planned long-haul budget carrier is being established by some of AirAsia’s key shareholders, including group CEO Tony Fernandes who has been saying for some time that a 20% stake is to be sold to a strategic investor. It is widely known that the Virgin Group has been looking at acquiring a stake, as both Virgin Group and the new airline’s backers have declined comment. The planned new carrier says in a media invitation that its “strategic global investor” will be identified at a briefing in Kuala Lumpur on 10 August. The ITF follows this development with great interest, as it works very closely together with unions within the Virgin Group in Great Britain. 07 August 2007

Thai AirAsia's executives control 51% of the carrier 

Thai AirAsia’s top management has bought the equity stake held by a Thai businessman who had been roped in by Shin Corp to comply with foreign ownership rules: Shin Corp used to own 50% of AirAsia’s shares but early last year half of its shares in an attempt to appease Thai authorities concerned about foreign control of the airline in light of the fact that AirAsia of Malaysia already had 49%. In January 2006 the Singapore Government’s investment arm bought Shin Corp from the family of Thailand’s then-prime minister Thaksin Shinawatra. The combined stakes held by management were purchased via a loan which is supposed to be repaid in three years when the carrier completes an initial public offering. Currently Thai AirAsia is a privately owned carrier in which AirAsia of Malaysia has 49%. 22 June 2007

AirAsia X places A330 order 

Fly Asian Express, the operating company for new Malaysian long-haul airline AirAsia X, has signed for 15 Airbus A330-300s and selected Rolls-Royce Trent 700 engines to power the aircraft. Deliveries are scheduled to begin in September 2008, although AirAsia X will begin operations this September using leased aircraft. Publicly traded AirAsia is licensing its name to AirAsia X and AirAsia has an option to purchase a sizeable minority stake. Flights will be operated using Fly Asian Express’s air operator’s certificate. The airlines intends to operate the planes with 396 seats and to offer fares which are 50-60% lower than what’s being offered in the market. 19 June 2007

Fly Asian Xpress struggles to maintain turboprop operations 

Air Asia’s sister, Fly Asian Xpress (FAX), is struggling to maintain reliable turboprop operations in East Malaysia because of maintenance woes. Some of its Fokker 50s have been grounded for unscheduled maintenance forcing the airline to maintain services between Kota Kinabalu, Bintulu and Sibu using Boeing 737-300s from AirAsia.

FAX's fleet comprises of seven 50-seat Fokker 50s and five 19-seat de Havilland Canada Twin Otters. It took-over the aircraft and East Malaysian turboprop routes last August from MAS but later decided to return the business to the Government and MAS.

FAX meanwhile is busy getting ready to launch medium and long-haul international operations in September using Airbus A330-300s. 11 June 2007.

Malaysia may build LCC terminal at Penang airport 

Malaysia may build LCC terminal at Penang airport: Malaysia’s Government is considering building a new terminal at Penang airport dedicated for use by low-cost carriers, after last year opening its first such airport terminal at the flagship Kuala Lumpur International Airport. It says talks are taking place between several parties including the Transport Ministry and national airports operator Malaysia Airports Holding. 23 April 2007

AirAsia X orders 10 A330s and plans September launch 

AirAsia X orders 10 A330s and plans September launch: Planned long-haul low-cost carrier AirAsia X has placed a firm order for 10 Airbus A330-300s and has secured a lease on one aircraft of the same type, enabling it to launch operations in September. AirAsia X, which will be a sister carrier to Malaysian short-haul low-cost airline AirAsia, plans to launch operations in September because it has secured a six-year lease on an A330-300 from an undisclosed lessor. 23 April 2007

Aviation workers forge links across Asia  

The ITF has launched a new website, www.AKstaff-connect.org,  to coincide with the signing of a memorandum of understanding by the Malaysian Maseu trade union and the Indonesian Ikagi union. This commits both organisations to work together to best represent the needs of civil aviation workers across the region, including those of Air Asia. 17 April 2007
[read the Press Release] | [ view event photos ]

Thai Air Asia looking at share sale: Airline is looking at sale of share of one of its major shareholders, the Shin Corporation. 

Thai Air Asia looking at share sale: The airline is looking at sale of share of one of its major shareholders, the Shin Corporation. Shin Corp holds 49% of the Thai company Asia Aviation, which in turn owns 50% of Thai AirAsia. The only other stakeholder in Asia Aviation is a Thai businessman who holds a 50% stake, but has been described by commentators as acting as a proxy of Singapore based Temasek Holding. Critics had complained that international ownership restrictions were violated which should have disqualified it from holding a licence. But the Department of Civil Aviation later cleared Thai AirAsia of the charge. AirAsia Bhd Group is upbeat about the prospect of Shin striking a deal. Thai AirAsia aims to put at least 40 new Airbus A320 jetliners in its fleet over the next five years. 10 April 2007

 

The Indonesian Transportation Department will impose restrictions on seven airlines because of safety lapses.

The Indonesian Transportation Department will impose restrictions on seven airlines because of safety lapses: This is the result of an evaluation of 20 scheduled airlines. The evaluation comprised three categories, the first being fulfilment of ICAO’s civil flight safety regulation requirements, the second including companies that have fulfilled minimal requirements but have not yet fulfilled some of the others, and the third covering companies that have fulfilled minimum civil flight safety requirements but not yet those which potentially will reduce safety level. Out of 20 airlines evaluated, none is included in the first category, and seven are included in the third. They will receive first, second and third warning with a three-month interval, and will have their air operator’s certificate (AOC) frozen if there is not any improvement. Both the Indonesian flag carrier Garuda and Indonesia Air Asia achieved category 2 ratings. 23 March 2007
 

Air Asia X to buy long haul Airbus jets: AirAsia X is expected to announce in May that it will buy up to 15 Airbus A330-300 aircraft.

Air Asia X to buy long haul Airbus jets: AirAsia X is expected to announce in May that it will buy up to 15 Airbus A330-300 aircraft. The creation of AirAsia X was recently announced by some of the owners of Asian short-haul low-cost carrier AirAsia. With London as one of the first destinations, London’s Heathrow airport is off-limits as the Malaysian government has granted AirAsia X only traffic routes to destinations that national carrier Malaysia Airlines has refrained from serving. The selection of Airbus for the long-haul fleet is not a surprise since AirAsia has ordered up to 100 Airbus A320s, which ensures compatibility between the two airlines in terms of maintenance and servicing. The bulk order with Airbus also means that AirAsia and AirAsia X are likely to buy the aircraft at a discount. 15 March 2007
 

Airline alliance developments in Asia

Airline alliance developments in Asia: Oneworld alliance carriers plan to continue taking a “wait and see” view on the emerging Indian market before actively seeking out a member from the country. This includes Air India and Indian Airlines, which are being prepared by the Indian Government for a merger - despite the fact that there have been reports the enlarged airline entity plans to join Star Alliance. Air Sahara was also one of Oneworld’s favourites but then they went through the flirtation with a merger with Jet Airways. In China, Air China and Shanghai Airlines have announced plans to join Star and where China Southern Airlines has announced plans to join SkyTeam. Oneworld has no mainland Chinese member carriers although Hong Kong-based Cathay Pacific Airways is a founding alliance partner and Cathay subsidiary Dragonair is due to join as an affiliate later this year. 01 March 2007
 

Alliance from Asia to Europe?

Alliance from Asia to Europe? There are rumours that Air Asia and/or Air Asia X might sound out possible ties with carriers like Virgin Atlantic and Air Canada. EasyJet, a European low cost carrier, was also mentioned, but it is said that it is too early to say if that will go ahead. 05 January 2007