Air Asia to STN

Here it is then…

AirAsia owners set up low-cost long-haul carrier
Leithen Francis, Singapore (05Jan07, 06:52 GMT, 664 words)

Some of the owners of Asian short-haul low-cost carrier AirAsia are establishing a long-haul low-cost carrier that will start operations in July with three leased aircraft.

The new long-haul airline will be called AirAsia X to differentiate it from Malaysia-based AirAsia, but it will come under the auspices of privately held company Fly Asian Xpress. Its potential destinations include the UK, Australia, and parts of Asia.

AirAsia’s group CEO Tony Fernandes says the new carrier will have only one aircraft type in its fleet, and is deciding between the Airbus A330-300 and Boeing 777-300ER. It plans to place an order for 20 widebodies as early as this month, he adds.

The aircraft will have a two-class configuration – ‘economy’ with a seat pitch better than AirAsia’s and ‘super economy’ that will have “almost” flat-bed seats, says Fly Asian Xpress CEO Raja Amzi Raja Razali. If the A330 is chosen, the aircraft will have around 400 passenger seats including 14-21 super economy seats, he adds.

Frills such as food and beverages will be offered but “you will probably have to pay for these”, he says.

Fly Asian Xpress is a turboprop operation that Fernandes and his closest business partners established last year to take over some Malaysia Airlines routes within East Malaysia. Its other owners are Raja Amzi, who was previously AirAsia’s chief financial officer, and AirAsia’s deputy group CEO Kamaradin Meranun. The three men are also the founders of the publicly listed AirAsia.

The move into long-haul will spark a change in Fly Asian Xpress’ ownership structure. Conor McCarthy, the former Ryanair executive who was instrumental in helping AirAsia adopt the short-haul low-cost carrier business model, is to be a shareholder in Fly Asian Xpress, says Fernandes.

AirAsia will also get a 20% stake in Fly Asian Xpress with an option for a further 10%. This is part of deal giving Fly Asian Xpress a 30-year license to use the AirAsia brand name, says Raja Azmi. The new venture will use AirAsia’s online booking engine but, unlike the short-haul operation, also make more use of travel agents to generate sales.

Having the ‘X’ in AirAsia X’s name will be useful for the airline’s advertising campaigns, says Raja Azmi. “X has a mysterious feel to it and it can be used in a number of different ways,” he says.

He adds that it is important to have use of the AirAsia brand as this means its new long-haul operation gains instant recognition in Asia and in Europe, where AirAsia is a sponsor of England’s Manchester United football team.

Manchester in the UK is one several destinations in the UK, the Middle East, Asia and Australia that the Malaysian Government has granted to AirAsia X, says transport minister Chan Kong Choy, who also attended today’s press conference.

AirAsia X’s first flights will be to the UK and two destinations in China, says Azmi. He adds that London is a strong possibility as the first destination, although he rules out using London Heathrow and London Gatwick. The UK capital has at least two other international airports.

London Heathrow 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, says Chan.

In the future, the government could grant AirAsia X some destinations currently served by the national carrier, says Chan. He also downplays suggestions that the new carrier might cannibalise Malaysia Airlines’ long-haul business.

“It is a different clientele and market so I don’t see a problem…MAS will grow too. More importantly it [the launch of AirAsia X] is good for the country.”

Fernandes has had preliminary discussions with the founders of Virgin Atlantic and EasyJet on an alliance, but he says that it is too early to say if that will go ahead. “I have a personal relationship with both men and we are always talking,” he adds.

Raja Azmi says AirAsia X is looking to “interconnect” with carriers in Europe rather than interline.

Source: Air Transport Intelligence news

and…

AirAsia poised to unveil big Airbus order on Monday
Leithen Francis, Singapore (05Jan07, 08:54 GMT, 624 words)

AirAsia will announce a massive order for Airbus A320s, and possibly Airbus widebodies, on 8 January.

Industry sources say the Malaysia-based low-cost carrier’s top executives will be in Europe on Monday to unveil an order for over 30 Airbus A320s. The total order, including options, could exceed 100 A320s, they add. One well-placed source also says Airbus has agreed to deliver some of the aircraft before 2012.

AirAsia already has 15 A320s and 35 Boeing 737s, and another 85 A320s on firm order. However it needs even more A320s due to its rapid expansion and as its associate carriers in Thailand and Indonesia are keen to grow. The group, for example, wants to launch services to India and additional services to China and the Philippines.

The A330-300 is also understood to be the front-runner for a 20 aircraft firm order from AirAsia X, the new long-haul low-cost carrier that will be launched in July. The carrier, which is being set up by AirAsia CEO Tony Fernandes and several of his associates, plans to launch in July with three leased aircraft and have the purchased aircraft arrive later

One well-placed industry source, however, says Airbus and AirAsia X may fail to conclude negotiations for A330s in time to make Monday’s announcement. Fernandes declined to say if the carrier had selected A330-300s for the new long-haul operation, but he says that Air Asia X will place an order for 20 widebodies by end-January.

AirAsia X plans to launch in July with services from Kuala Lumpur to Tianjin and Hangzhou in China and from Kuala Lumpur to the UK, says Fernandes.

He says the Malaysian government has granted AirAsia X traffic rights to Birmingham and Manchester, and that it was looking at granting rights to London. The government has ruled-out London Heathrow and London Gatwick, but industry sources say AirAsia is likely to get London Stansted.

Fernandes says they are considering the A330-300 and Boeing 777-300ER for AirAsia X, which will operate only one aircraft type. He describes Airbus’ A330 replacement, the A350XWB, as the perfect aircraft for AirAsia X. However, he adds that they are first looking at the A330 as the A350XWB is a new aircraft type under development and will only be available in later years.

Fernandes concedes that it will also be easier for AirAsia pilots to move from the A320 to the A330 rather than to the 777-300ER. But the 777-300ER has the range to allow AirAsia X to go non-stop from its Kuala Lumpur base to Europe, while the A330 would have to stop on the way due to its shorter range.

When asked about the A330’s shorter-range, Fernandes says: “I don’t think it is a problem.” He says if AirAsia X decides to use the A330, the aircraft will stop in the Middle East and that AirAsia X plans to make the airfares low enough to entice travellers.

“I think if you could fly from Kuala Lumpur to London for $200, then you would not mind stopping-over in Sharjah (in the United Arab Emirates),” he says. Other Middle East stop-over points being considered include Bahrain and Kuwait City but Fernandes adds that AirAsia is unlikely to stop-over in Dubai.

The government has also granted AirAsia traffic rights to undisclosed destinations in Australia, the Middle East and other points in Europe.

Fernandes declines to discuss these but industry sources say Air Asia X’s Australian traffic rights include Avalon, a secondary airport near Melbourne that Qantas Airways’ low-cost carrier Jetstar currently uses.

The Australian traffic rights exclude Melbourne and Sydney because the rights are all being used by Malaysia Airlines. However, the source adds that the government plans to negotiate a new air services agreement with Australia that could help AirAsia X.

Source: Air Transport Intelligence news

Have VS got any plans for Stansted

Probably more the fact that VS doesnt want them anywhere near LGW or LHR.

It said the tie-up would give AirAsia access to London’s Stansted airport. In return, Richard Branson’s Virgin and easyJet would have access to Kuala Lumpur airport’s low-cost terminal which is the home for AirAsia, it added.

Intersting bit of information.Why would easyjet need access to the terminal in KUL and how would an alliance with U2 and VS give them access to STN.(EZY bit i can understand. VS i cant).

Have VS got any plans for Stansted because after reading this and being told the other day that Virgin Nigeria were considering a move to the other side of London i am becoming very interested.

edit:
http://thestar.com.my/news/story.asp?file=/2007/1/1/nation/16454059&sec=nation
On that link it says they are considering Manchester too!!!

Indeed, and a rumor is that they might offer the first seats at about £3 each way, excluding tax ovbiosuly :p