Wednesday, August 17, 2011

Pay, just to check in?????

That's true.

From Sept 21, all travellers on AirAsia will be subject to RM10 check in fee if they fail to check in online or via their smartphones.

Another way to raise ancillary income.

Their statement reads:

"AirAsia will continue to provide limited conventional check-in counters at all airports where it operates. However, a check-in fee of RM10 per guest will apply for all flights which bookings are made from 21 September 2011 onwards. The check-in fee is not applicable for bookings made before 21 September 2011.
In the rise of escalating jet fuel prices, AirAsia strives to counter the effects by aggressively growing revenue through ancillary income and services, instead of transferring the full cost of the hike to its guests. Hence, check-in at the counter will be an additional service and an ancillary fee will apply.

This fee will apply for all AirAsia (AK) domestic and international flights originating from airports in Malaysia. As for AirAsia X (D7), counter check-in charges will apply for flights departing from the airline’s base in Kuala Lumpur and at all airports where the airline operates except in Tokyo (Haneda) & Osaka (Kansai) in Japan, Seoul (Incheon) in Korea and Tehran (Iran).''

How much can they raise from this????

Monday, August 15, 2011

MAHB next???

Should there be a change when the present management has delivered in terms of passenger numbers, financials and also number of airlines operating at KLIA?

any thoughts?

Friday, August 12, 2011

CEO needs to know - Who is the master, passengers or his bosses?

My bet is the passengers, without which there can be no money. Take care of your customers.

MAS needs a CEO/MD with the guts to set things right

“IF you want to make peace with your enemy, you have to work with your enemy. Then he becomes your partner.”
That is Nelson Mandela's quote and it aptly describes Tan Sri Tony Fernandes who was once a critic of Malaysia Airlines (MAS). Fernandes and Datuk Kamarudin Meranun bought a 20.5% stake in MAS and both of them have now become directors of the national carrier.
For nearly a decade, he has been lambasting MAS for his airline's - AirAsia - failure to get the right routes among many other issues. Things had not been going well at MAS and it needed to be salvaged.
Tuesday marked an important milestone for both the airlines as the demarcation lines were drawn very clearly.
And for the umpteenth time MAS will undergo a restructuring, turnaround or transformation to get it back on course.
The ultimatum is for MAS to regain its lost glory and that means being only a premium full-service airline.
That is going to be tough when its competitors are already so far ahead.
Execution will be key to making that dream of the airline's shareholders come true.
Fernandes and Kamarudin are the best man for the job, but they will not dabble in the the day-to-day operation of the airline.
So the search for CEO/MD is on.
The person should possess Fernandes' magic touch, Kamarudin's finance acumen and the wisdom of MAS chairman Tan Sri Md Nor Yusof.
Fernandes said he preferred someone who was “numbers-driven like AirAsia X's CEO Azran Osman-Rani, someone with a clear focus, possibly not someone from the airline industry, humble yet analytical, understands the basics of marketing and has a strong head for communications.”
Those who had endured the pain of holding MAS shares for nearly a decade now have their own wish list too. MAS shares, which are at a nine-year low, closed at RM1.80 yesterday.
The person should be ambitious, not just for himself but the airline, someone who sees the big picture, a leader with guts to hire and fire, cut and stop the bleeding, brave enough to end procurement contracts that are at expense of the airline. The candidate should not be distracted just because other airlines dumped fares. He or she has to rebuild the airline, staff morale, shareholder value but the biggest challenge is handling the perception issue. That is why the person needs to be the best communicator and best salesperson. The person has to be mindful of cultural issues and who his or her masters are the passengers or the bosses?
And don't fumble on the front-end passenger seats issue again as the travellers know whether the seats they have bought are really flat for their comfort or otherwise. Get it right once and for all if MAS aspirations are to be a premier airline like Singapore Airlines and Emirates.
The person should eat, breath, think of yields, that's the hallmark to profitability, as without that no number of passengers, connectivity, frequency and comfort can bring in the profits that the airline desperately needs. We are talking about a premium brandnot a mixed bag of premium-to-mid and low-cost.
Throw the dice, take your pick.
An executor who can perform his job with gusto is what MAS needs. If those in power really want the problem at MAS to be resolved once and for all, they should warm up to the idea of even hiring a foreigner, not necessarily a mat salleh. But certainly not someone who is into a quick fix and short-term gains.

  • Deputy news editor B.K. Sidhu says saving MAS is inevitable but she is drawn to a quote made a long time ago by someone powerful that reads: “I don't care if SIA goes down, but Changi should not, at all cost”.

  • This article was first published in The Star on August 12, 2011

    Wednesday, August 10, 2011

    MAS and AirAsia alliance

    The alliance is sealed, expect the colloboration to take place from November onwards so the synergies and benefits will start to show in 2012.

    whether you will pay more or less for your next travel will depend on how this whole alliance works.

    Tuesday, August 9, 2011

    Will there really be competition?

    Malaysia Airlines and AirAsia Bhd will have common directors in Tan Sri Tony Fernandes and Datuk Kamarudin Meranun sitting on MAS board. Datuk Azman Yahya (a director in MAS) and Mohd Rashdan (executive director of MAS) will sit on AirAsia board.

    This is a result of a share swap deal where Fernandes and Kamarudin's vehicle Tune Air ends with a 20.5% stake in MAS and Khazanah Nasional Bhd (MAS parent) takes 10% in AirAsia. The deal will change the landscape of the local aviation industry. It virtually takes the element of low cost fares away from MAS.

    Food for thought:
    Is the deal good for travellers, will fares get lower or will all this curtail competition?

    Btw, the pretty Datuk Rohana Rozhan, the CEO of Astro Malaysia is now MAS board member.
    And to Tengku Datuk Azmil Zahruddin, you are a good man...all the best to you.

    Monday, August 8, 2011

    AirAsia and MAS colloboration

    The press conference by Khazanah Nasional, AirAsia and Malaysia Airlines at 3.30 pm today in KL

    It has been under wraps for a long time and now it is in the open,expect more details on Tuesday.

    Those in the know claim it will be very "promising,'' but once again there is an effort to put MAS back on its feet. Why is it always falling after a restructuring, transformation, etc, are all these exercises addressing the real issue the airline faces or just facets of it?
    Has some actually cleaned up the procurement side?

    How many "bailouts of sorts" do we need to get MAS rising again?

    Hope this is the last and hope it does not create a cartel or else we may just have to pay RM820 for a return flight to Singapore.

    Get the talent from within to lead.

    Also read how critical Ganesh is