Free seats from AIRASIA

Here were go again, AirAsia and its free seat campaign.

"AirAsia, the world's best low cost airline for three consecutive years, is once again giving away *free seats to selected domestic and international destinations such as Langkawi, Banda Aceh (Indonesia), Hat Yai (Thailand) and Singapore, and many other exhilarating destinations at very low fares.
The ‘FREE SEATS’ booking period starts at 12am (+8GMT) on 21 – 25 September 2011 for the travel period from 3 May - 27 October 2012.
Log on to www.airasia.com to find out more. To avoid the expected high traffic due to the promotion, guests who wish to travel before 1 January 2012 can click at the link provided on the main webpage in order to conduct their transactions smoothly,'' a statement issued by the company said.

IATA revises 2011 profit forecast and warns of tough times in 2012

The International Air Transport Association (IATA) has revised its industry profit expectations to US$6.9 billion, up from US$4.0billion it predicted in June for the year. 

In a statement it said "As emphasized that, despite the improvements, profitability at these levels is still exceptionally weak (1.2% net margin) considering the industry’s total revenues of US$594 billion.''

In its first look at 2012, IATA is projecting profits to fall to US$4.9 billion on revenues of US$632 billion for a net margin of just 0.8%.

“Airlines are going to make a little more money in 2011 than we thought. That is good news. Given the strong headwinds of high oil prices and economic uncertainty, remaining in the black is a great achievement,” said Tony Tyler, IATA’s Director General and CEO.

“But we should keep the improvement in perspective. The US$2.9 billion bottom line improvement is equal to about a half a percent of revenue. And the margin is a paltry 1.2%. Airlines are competing in a very tough environment. And 2012 will be even more difficult,” said Tyler.

IATA’s forecast is built around global projected GDP growth of 2.5% in 2011 falling to 2.4% in 2012. Airline financial performance is closely linked to the health of world economies. Whenever GDP growth has slowed below 2.0% the airline industry has lost money. “We will be perilously close to that level at least through 2012. The industry is brittle. Any shock has the potential to put us in the red,” said Tyler.

MORE AIRCRAFT ORDERS EXPECTED

Global airlines will buy US$3.5 trillion of aircraft

LONDON: Global airlines will buy US$3.5 trillion of aircraft over the next 20 years to meet relentless demand for travel to and from Asia's burgeoning “mega-cities” and renew ageing fleets in the West, according to Airbus.
The world's largest civil jet maker raised its forecast for airplane deliveries over the next 20 years by around 8% to 27,800 aircraft as part of an annual market survey. The figure includes 900 freighters to keep up with a projected expansion in global trade.
The European company shrugged off turmoil in financial markets, saying population growth and urbanisation would continue to promote strong aviation demand. The industry has recovered more quickly than expected from the last recession but some are nervous over the short-term outlook.
“People need and want to fly more than ever before,” Airbus said in a statement.
“Over the next 20 years the aviation sector is expected to remain as resilient to cyclical economic conditions as in the past.”
Revenue passenger kilometres the number of people boarding planes adjusted for the distance flown would grow by an average 4.8% per year, which is equivalent to traffic more than doubling in the next 20 years, Airbus said.
Boeing is even more optimistic, with a recent forecast of 5.1% a year.
The predictions underscore soaring demand for narrow-body or single-aisle jets like the Boeing 737 and Airbus A320, the backbone of many airlines.
Both plane makers have decided to refresh their best-selling models with new engines to cut fuel costs and see off newcomers such as Canada's Bombardier or builders in China and Russia.
Airbus raised its demand forecast for these 100-200 seat aircraft by 7% to 19,200 airplanes worth US$1.4 trillion between 2011 and 2030. Boeing sees a market worth US$2 trillion, though its data includes airplanes from 90 seats upwards instead of 100.
Airbus and Boeing are increasing production rates to keep up with demand.
There is concern, however, over what the plane makers' optimism means for airlines on the eve of a widely-watched airline industry profit forecast from lobby group International Air Transport Associa-tion.
The association halved its forecast for 2011 airline profits in June and could trim it again in the light of Europe's debt crisis and fears of a new US recession.
Premium travel is where airlines make most of their profits and is seen as a sensitive guide to business confidence.
Many airlines are investing in new lightweight airplanes to lower their fuel costs.
Airbus sees strong demand for wide-bodied twin-jets like the Boeing 787 Dreamliner, which is due to be delivered to its first Japanese customer next week after three years of delays, and smaller versions of its own A350. Airbus hiked its forecast for 250-300 seat jets by 11%.
The Airbus survey also acts as a signpost to the next big battle with Boeing over the future of mini-jumbos like the Boeing 777, which Airbus has countered with its planned A350-1000.
Boeing must decide in the next year or so whether to redesign the 777 or just commission a replacement for the world's largest civil jet engines as it tries to keep its dominance of the 350-400 seat market. Airbus sees demand for 2,100 new aircraft in this category over the next 20 years.
However, Airbus and Boeing continue to disagree on the demand for the industry's behemoths the Airbus A380, the world's largest airliner, with 525 seats, and Boeing's newly-revamped 747 jumbo.
Airbus sees a US$600bil market for airplanes with 400 seats or more, representing 1,781 units. Boeing sees demand for less than half that, just 820 planes - Reuters

(First published in The Star on Sept 20. 2011)

More jobs for air sector

Boeing Forecasts Strong Need for Aviation Personnel in Asia Pacific

Source: Boeing

19/09/2011

Boeing (NYSE: BA) forecasts the Asia Pacific region will require hundreds of thousands of new commercial airline pilots and technicians over the next 20 years to support airline fleet modernization and the rapid growth of air travel.
The 2011 Boeing Pilot & Technician Outlook calls for 182,300 new pilots and 247,400 new technicians in the Asia Pacific region through 2030. The greatest need is in China, which will require 72,700 pilots and 108,300 technicians over the next 20 years.
"The demand for aviation personnel is evident today. In Asia we're already beginning to see some delays and operational disruptions due to a shortage of pilots," said Roei Ganzarski, chief customer officer, Boeing Flight Services. "To ensure the success of our industry as travel demands grows, it is critical that we continue to foster a talent pipeline of capable and well-trained aviation personnel."
North East Asia will need 20,800 pilots and 30,200 technicians over the next 20 years. South East Asia will require 47,100 pilots and 60,600 technicians. The Oceania region will need 13,600 pilots and 15,600 technicians and South West Asia will need 28,100 pilots and 32,700 technicians.
"As an industry we must make a concentrated effort to get younger generations excited about careers in aviation. We are competing for talent with alluring hi-tech companies and we need to do a better job showcasing our industry as a global, technological, multi-faceted environment where individuals from all backgrounds and disciplines can make a significant impact," Ganzarski added.
More information on the 2011 Pilot & Technician Outlook is available at http://www.boeing.com/commercial/cmo/pilot_technician_outlook.html.

First published in Air Transport News on Sept 19, 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????

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?

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