Category Archives: AirAsia (Malaysia)

Thai AirAsia is confident in air travel recovery after the Group reports a large loss in the second quarter

AirAsia (Thai AirAsia) Airbus A320-251N WL HS-CBF (msn 7949) DPS (Pascal Simon). Image: 954967.

AirAsia (Thailand) issued this statement:

AirAsia is confident air travel sentiment will recover especially during the year-end holiday period following a government announcement relaxing travel restrictions, and supported byย  its own health and safety enhancements.

Upon resuming service on 3 September, 2021, the airline has observed that its direct flights from Don Mueang to Chiang Mai, Chiang Rai and Hat Yai to be the top 3 most booked and flown routes, with an average of 80% of available seats bookedย  for 3-15 September 2021. (This is based on the 75% maximum capacity per flight allowed by the Civil Aviation Authority of Thailand).

Flights to northeastern destinations of Khon Kaen, Ubon Ratchathani, Udon Thani and Nakhon Panom have also been well received. In anticipation of higher demand, AirAsia has plans to increase its flight frequencies to these destinations, with additional direct flights and regional connections especially for the year-end holiday season.

AirAsia Thailand Chief Executive Officer, Mr. Santisuk Klongchaiya, saidย  AirAsia has resumedย  11 routes as part of its gradual return to domestic service.ย  The carrier has been flying direct from Don Mueang to Chiang Mai, Chiang Rai, Hat Yai, Nakhon Si Thammarat, Narathiwat, Khon Kaen, Udon Thani, Ubon Ratchathani, Nakhon Panom and Roi Et since 3 September and began flying direct to Phuket on 8 September.

โ€œWe have seen a very positive response within the first three days of returning to service especially for popular destinations such as Chiang Mai, Chiang Rai and Hat Yai, which achieved load factors as high as 90% and we foresee the demand to continue on a good momentum. These are very encouragingย  signsย  for the aviation business and tourism industry, which we expect to begin recovering very soon,โ€ Mr. Santisuk said.

AirAsia is keeping a close eye on the situation and is always committed to playing an active and positive role in the recovery of the domestic market byย  adding moreย  routes and increasing flight frequencies in time for the high season in the fourth quarter.

A steady decline in the number of COVID-19 infections and wider vaccination rates across the Kingdom are key catalysts for the recovery.ย  To further boost demand, the airline is offering promotions and campaigns to give travelers the best value and flexible travel deals.

Most importantly, AirAsia is maintaining its stringent health and safety measures, including vaccinating all of its service staff, who will also regularly be tested for COVID-19, requiring guests to wear a face mask throughout their journey, performing regular disinfection of cabins and contact surfaces, and strictly adhering to all guidelines and regulations set by health and civil aviation authorities, including 75% maximum capacity allowed per flight and transfer shuttles to a maximum 50 people per trip. All AirAsia aircraft are fitted with hospital-grade HEPA filters that are able to filter out 99.99% of dust particulates including bacteria and viruses from the cabin air.

Related to this, AirAsia Group Berhad reported its financial results for the quarter ended June 30, 2021 (โ€œ2Q2021โ€).

Unaudited Consolidated Second Quarter 2021 Results of AirAsia Group Berhad

The Consolidated Group posted 2Q2021 revenue of RM371 million, higher by 161% year-on-year (โ€œYoYโ€) and 24% quarter-on-quarter (โ€œQoQโ€). Aviation revenue declined 8% QoQ but increased 176% YoY off a low base due to the fleet hibernation for the most part of 2Q2020 caused by the onset of the pandemic. Digital businesses reported stronger revenue, up 147% YoY led by contributions from Teleport, which tripled its revenue YoY driven by a higher number of cargo only flights and deliveries.

EBITDA loss was RM207 million for the quarter, which narrowed by 70% YoY and 5% QoQ. Fixed costs were successfully reduced by 15% YoY despite a low base in 2Q2020, primarily attributed to lower staff costs. Net operating cash flow burn was lower QoQ, averaging RM62 million per month in 2Q2021.

The airasia Super App reported strong revenue growth of 39% YoY, attributed to new product offerings and commissions. BigPay posted significant growth in revenue, up 56% YoY driven by payments and remittances. Teleportโ€™s revenue tripled YoY due to a higher number of cargo only flights and significant delivery demand volume through scheduled cargo networks connecting India, China, Korean and Japan through Asean.

The Consolidated Group posted a 2Q2021 Net Loss After Tax of RM720 million, which narrowed by 38% compared to the Net Loss After Tax of RM1.2 billion in 2Q2020. Although aviation revenue was much higher by 176% YoY, active capacity management and concentration on flying the most profitable routes as well as lease restructuring, asset optimisation and targeted cost control resulted in a 54% reduction in aviation operating expenses YoY. The absence of fuel swap loss for the quarter also contributed to the better performance.

Operating & Market Share Performance

Key operational metrics improved significantly YoY for all four entities, on the back of a low base in 2Q2020. As for QoQ performance, AirAsia Philippines progressed steadily with a 2% increase in the number of passengers carried and an improvement of 4 percentage points (โ€œpptsโ€) in load factor, to reach a commendable 78%, while AirAsia Indonesiaโ€™s load factor increased by 11 ppts. Revenue per ASK (โ€œRASKโ€) for the Consolidated Group was flat at 15.93 sen during the quarter, while load factor was firm at 68%, 9 ppts higher YoY, supported by active capacity management.

Cost Performance

Airline operating expenses for 2Q2021 reduced by 54% YoY while fixed costs were efficiently reduced by 15% YoY despite a low base in 2Q2020. Reduction was flat on a QoQ basis. Airline staff costs declined the most by 48% YoY and 19% QoQ, contributed by headcount rationalisation, salary cuts and natural attrition. User charges and other related expenses were reduced by 53% in line with lower traffic. The adoption of contactless procedures and digital check-in processes also aided to result in lower ground-handling costs.

On the airline performance results and outlook, President (Airlines) of AirAsia Group Berhad Bo Lingam said:

โ€œThe Group posted a healthy load factor of 68% during the quarter, up 9 ppts attributed to active capacity management to match demand. This is led by AirAsia Philippines with 78% load factor during the quarter. AirAsia Malaysia, AirAsia Indonesia and AirAsia Thailand experienced subdued momentum QoQ due to rising Covid-19 cases in their respective domestic markets. Nonetheless, passenger numbers improved YoY with AirAsia Malaysia reporting a 64% increase YoY while AirAsia Indonesia, AirAsia Philippines and AirAsia Thailand each increased by more than 100% YoY.

โ€œWe continued to see positive outcomes from our stringent cost containment measures. Our 2Q2021 fixed costs reduced 15% despite coming off a low base. On a QoQ basis, fixed costs were flat after a consistent QoQ downtrend since the first Covid wave in late 1Q2020. Airline staff costs were down 48% YoY and another 19% QoQ due to headcount rationalisation & attrition. We reported zero fuel hedging losses, which will remain nil in the upcoming quarters as it has been fully restructured.

โ€œAirAsia Thailand resumed 11 domestic routes in early September following the relaxation of travel restrictions by the authorities, operating under strict SOPs and with enhanced hygiene measures in place. Meanwhile, AirAsia Indonesia has remained in hibernation mode since July 2021, adhering to strict containment efforts enforced by the government due to the rising number of infection cases as well as significantly subdued demand for travel. AirAsia Indonesia was recovering well prior to the hibernation, achieving as high as 70% of pre-Covid domestic capacity levels in May 2021.

โ€œOn a positive note, AirAsia Malaysia welcomes the governmentโ€™s announcement of the Langkawi travel bubble opening mid September. We expect all our airline entities to see a gradual pick up in domestic operations in the fourth quarter, following the easing of travel restrictions in line with the increase in vaccination rates in all of our key markets.

โ€œQuick and efficient vaccination rollouts in our key operating markets will ensure a strong recovery as soon as travel restrictions allow. Malaysia is on track to have vaccinated 80% of its population by the end of this year. Singapore has fully vaccinated 80% of its population while other Asean countries are progressing favourably. Across the world, many countries are already allowing vaccinated travellers in. With the accelerated vaccine rollouts across Asean, we expect to see more vaccinated travel lanes and vaccine bubbles forming which will boost a V shaped resumption of air travel in the near future.

โ€œImportantly, the health and wellbeing of our staff and guests remain our top priority. Our operating crew and frontline staff are 100% fully vaccinated and ready to serve our guests with stringent safety and hygiene standard operating procedures in place. We have also adopted numerous contactless procedures through technological innovations to ensure a seamless travel experience.

โ€œWe have unwavering confidence that our robust short haul business model, lean operations, contactless procedures, combined with pent-up demand, vaccines and travel bubble formations, will ensure a quick recovery upon the relaxation of travel restrictions in the near future. People are craving to travel again and we expect to see a strong resurgence in the visiting friends and relatives (VFR) as well as the leisure and spontaneous travel markets first.โ€

On Asia Digital Engineering (ADE)โ€™s performance and outlook, CEO of ADE, Mahesh Kumar said:

โ€œAsia Digital Engineering (ADE), AirAsiaโ€™s aircraft maintenance, repair and overhaul (MRO) arm, is well on the way to revolutionise and dominate the aircraft MRO market in Asia, driven by our experienced workforce of more than 15 years managing AirAsiaโ€™s fleet, lower cost base combined with our commitment to delivering the highest quality outcomes, diverse capabilities, state-of-the-art facilities and strong relationship with suppliers. This year, ADE has successfully obtained base and line maintenance approvals in Malaysia, received foreign approvals from Indonesian and Indian authorities for works to be carried out at ADEโ€™s facilities, secured three external clients and converted passenger planes to freighter planes. 2022 will be about expanding our business to attract more third party airlines. We are focused to continue expanding our capabilities by adding at least 14 more workshops, broadening the approvals for line & base maintenance and ramp up the activities on the digital front by developing the best-in-class applications for both airlines & MRO operations. Competitive pricing, faster turnaround and end-to-end support coverage will shape ADE to be the preferred service provider in the region.โ€

On Santanโ€™s performance and outlook, General Manager of Santan, Catherine Goh said:

โ€œSantan, our in-flight catering turned Asean restaurant brand, operates 12 restaurants across Klang Valley. Two outlets, Midvalley and Sunway Pyramid are owned while the remaining 10 are franchised. Plans to take the Santan brand to the international stage, starting with Cambodia, Thailand, Singapore and China, have been pushed to 2022 as we await the reopening of borders and lifting of travel restrictions. In the meantime, we remain committed to expanding our restaurant network across Malaysia, with upcoming stores to be located in Penang, Ipoh, Melaka, Seremban, Sabah and Sarawak by the end of the first quarter next year.โ€

On airasia Super Appโ€™s performance and outlook, CEO of airasia Super App, Amanda Woo said:

โ€œDelivering the best value and choice for consumers underpins our brand and our continuous ramp up of the airasia Super App as an all in one travel and lifestyle platform is showing strong results. Driven by new products and commissions, revenue for the quarter was up 39% YoY. In 2Q2021, we have successfully launched airasia beauty in Malaysia and Indonesia, recognising the high demand for e-commerce beauty and skincare products. We have also recently expanded airasia food to Penang in May, Kota Kinabalu and Johor Bahru in July, Melaka and Bangkok in August.

โ€œWe reached a significant milestone in July this year, when we acquired the Gojek businesses in Thailand for a share swap consideration, which valued airasia superapp at US$1 billion. We are thrilled with this partnership which provides a strong jump start into the Thailand delivery market and we remain committed to leveraging the existing ecosystem while adding on new offerings. On that note, last month we launched our first ever e-hailing services as our latest product offering called airasia ride, which is now available for bookings in Klang Valley, with plans for further expansion in Malaysia and across Asean.โ€

On Teleportโ€™s performance and outlook, CEO of Teleport, Pete Chareonwongsak said:

โ€œTeleportโ€™s revenue increased 67% QoQ and tripled YoY, boosted by a higher number of cargo only flights and significant delivery demand volume through scheduled cargo networks connecting India, China, Korean and Japan through Asean. During the quarter, Teleport obtained the Postal and Courier License from the Malaysian Communications and Multimedia Commission (MCMC) which authorised Teleport to operate domestic and international courier services in Malaysia. In order to meet the higher demand, Teleport has since modified two cargo-only A320 passenger planes and will soon induct our first dedicated freighter into our growing fleet. In August, Teleport successfully acquired delivery platform DeliverEat for US$9.8 million and welcomed prominent investors, including venture capital firm Gobi Partners onboard, valuing Teleport at US$300 million. In order to reach our goal to move anything across Asean better than anyone else within 24 hours, Teleport is actively establishing partnerships with other airlines to grow its cargo network, while strengthening its delivery network with end-to-end infrastructure which includes our pool of delivery drivers and riders currently numbered at 15,000 and growing.โ€

On BigPayโ€™s performance and outlook, CEO of BigPay, Salim Dhanani said:

โ€œBigPayโ€™s revenue was 56% higher YoY, driven by higher payments and remittances. During the quarter, BigPay introduced an all-in-one lifestyle insurance service, providing coverage with premiums from as low as RM30 annually, and officially applied for a digital bank license in Malaysia with a consortium of strategic partners. As for funding, BigPay secured financing of up to US$100 million from SK Group, which is a strong testament to BigPayโ€™s credibility and commitment to becoming a leading challenger bank across Asean. BigPay is focused on developing microlending, transactional lending, saving and investment products as well as rolling out its existing payments and remittance products to other Asean countries.โ€

On the groupโ€™s outlook, CEO of AirAsia Group Berhad, Tan Sri Tony Fernandes said:

โ€œOur transformation is over and AirAsia Group Berhad is now an investment holding company with a portfolio of synergistic travel and lifestyle businesses that leverage data and technology to deliver the best value at the lowest cost, supported by strong data and one of Asia’s leading brands that remains committed to serving the underserved.

โ€œInnovation has always been in our DNA and we will continue to develop and expand our products and services to meet consumer demand in all of our key markets.

โ€œWe continue to evaluate funding, potential monetization and other corporate exercises to ensure sufficient liquidity for the Group. By the end of the third quarter of 2021, we will have completed two batches of lease restructuring and expect to complete the full exercise by the end of 2021. In August, BigPay secured up to US$100 million in financing led by SK Group. We have also proposed a renounceable rights issue of up to RM1.0 billion, which we expect to be finalised by the end of this year, subject to SC and Bursaโ€™s approval, as well as shareholdersโ€™ approval at an Extraordinary General Meeting to be convened. Positive discussions for raising additional new capital for airlines, Asia Digital Engineering and our digital businesses are ongoing. Through all of our strategic fundraising exercises, we expect to have sufficient liquidity for 2H2021 and throughout 2022.โ€

More on this story:

https://www.msn.com/en-my/money/topstories/airasia-says-transformation-into-digital-travel-and-lifestyle-group-complete/ar-AAOdNMw?ocid=BingNewsSearch

Top Copyright Photo: AirAsia (Thai AirAsia) Airbus A320-251N WL HS-CBF (msn 7949) DPS (Pascal Simon). Image: 954967.

Thai AirAsia aircraft slide show:

Auditor: AirAsia’s future in “significant doubt”

The external auditor of AirAsia (Ernst and Young) has raised significant doubts about budget airline AirAsia as a going concern.

According to the report, AirAsiaโ€™s current liabilities already exceeded its current assets by 1.84 billion ringgit ($430 million; ยฃ340 million) at the end of 2019, before the start of the COVID-19 pandemic.

Trading in AirAsia were suspended.

Read more from the Nikkei Asian Review.

AirAsia issued this statement:

AirAsia Group Berhad wishes to draw attention to our latest update where AirAsiaโ€™s external auditors, Messrs Ernst & Young PLT issued an unqualified audit opinion with an emphasis of matter on material uncertainty relating to going concern in respect of the Companyโ€™s audited financial statements for the financial year ended December 31, 2019.

The unqualified audit opinion states that the financial statements of AirAsia for the financial year ended December 31, 2019 are true and fair and in compliance with financial reporting standards and statutory requirements, in all material aspects.

The emphasis of matter highlights that there are significant uncertainties with respect to the Companyโ€™s ability to continue as a going concern as a result of the unprecedented COVID-19 pandemic. Nevertheless, it is important to note that the financial statements have been prepared on a going concern basis, as the Board of Directors is confident of the successful continuation of the business, in conjunction with the actions undertaken by the governments of the operating entities, outcome of ongoing discussions with financial institutions and investors to obtain required funding and implementation of managementโ€™s action plans, in response to the conditions above.

In this regard, the auditorsโ€™ report should be read in full and can be found in the annual audited accounts that is available on the Companyโ€™s Investor Relations website.

Domestic rebound demand is strong; Optimistic of re-opening of international travel

AirAsia Group Berhad CEO, Tan Sri Tony Fernandes said โ€œThe first half of 2020 has been extremely challenging. However, in recent weeks, countries around the world have resumed domestic travel and are gradually reopening international borders in recognition that air transport provides the connectivity that is essential for the resumption of economic activities. The formation and discussion of โ€œtravel bubblesโ€ and โ€œgreen lanesโ€ย  with key economic partners with a low infection rate and proven pandemic curbing systems, is a step in the right direction.

โ€œAs domestic travel is now allowed in Malaysia, Thailand, Indonesia, India and the Philippines, we have been resuming our flights on a staggered yet steady basis since late May. In support of governmentsโ€™ efforts to revive domestic tourism and ultimately stimulate economic recovery, AirAsia has aggressively launched large-scale promotions and sales campaigns. I am encouraged by the higher-than-anticipated sales this has generated.ย  On July 7, 2020 we registered our highest post-hibernation sale with 75,000 seats sold in a single day, reflecting pent-up demand and signalling green shoots of recovery. We also sold over 200,000 AirAsia Unlimited Passes since its recent launch for domestic Malaysia, domestic Thailand and AirAsia X.

โ€œPositive trends in our flight bookings and load factors are additional signals of a better second half of the year. In June, our group-wide load factor was 60% with AirAsia Malaysiaโ€™s load factor reaching 65%. For July, we expect to achieve a higher load factor of 70% despite tripling our capacity month-on-month to cater to the increased demand.

โ€œTeleport, the profitable technology-meets-logistics venture of AirAsia, accelerated its regional growth despite a challenging environment, growing 49% year-on-year in the first quarter of 2020. This growth was supported by a strong emphasis on transporting medical aid and critical supplies at a time of need. In addition, despite the complete hibernation of the airline group, Teleport pivoted from delivering cross-border e-commerce to last mile deliveries, delivering more parcels, restaurant orders, and fresh produce during the movement control period than in the previous 12 months collectively. With the launch of Freightchain, the world’s first digital cargo platform built on blockchain, the re-launch of OURSHOP as an e-commerce marketplace to support the local businesses we love, and rollout of OURFOOD a fuss-free platform to bring all types of food businesses online, Teleport has emerged with even stronger growth prospects for the second half of 2020.

โ€œAs a great believer in Asean, we remain confident in the growth potential of the region. In IMFโ€™s latest World Economic Outlook, Asean-5โ€™s GDP growth is expected to rebound strongly to 6.2% in 2021, one of the highest growth rates in the world. Weโ€™re confident that AirAsia will not only benefit from this growth upturn but also contribute to the regionโ€™s recovery given the significant role that air connectivity plays in Aseanโ€™s trade and investment landscape.โ€

On funding…

โ€œWe understand the importance of shoring up our liquidity to ensure sufficient cash flow. We have been presented with proposals in various forms of capital raising, be it debt or equity, and are in ongoing discussions with numerous parties, including investment banks, lenders, as well as interested investors in seeking a favourable outcome for the group. We have received indications from certain financial institutions to support our request for funding, amounting to more than RM1.0 billion. Of this debt funding, a certain portion would be eligible for the government guarantee loan under the Danajamin PRIHATIN Guarantee Scheme in Malaysia. Other than Malaysia, our Philippine and Indonesia entities are currently in various stages of bank loan applications. In the Philippines, we have applied for the government guaranteed loan under the Philippine Economic Stimulus Act (PESA), with an expected positive outcome.โ€

On working capital management,…

โ€œDuring the hibernation period, we have taken significant measures internally as a group while also reaching out externally for assistance to ensure our working capital remains intact.

โ€œInternally, we have embarked on headcount rationalisation for leaner operations, given the current demand for air travel and expectations on recovery. Internal cost-cutting efforts include a group-wide temporary salary reduction of between 15% – 75%.

โ€œWe have received deferrals from our supportive lessors and are now working on further extensions. We have also restructured 70% of our fuel hedging contracts and are continuously negotiating with our supportive counterparties for the remaining exposure.

โ€œAll in all, we expect at least 50% reduction in our cash expenses in 2020.

โ€œIn conclusion, the impact of Covid-19 pandemic on the Company is never taken lightly, as does the trust and support put into us. The management has been working tirelessly to ensure the sustainability of our business operations. With the confidence of our stakeholders and business partners, we are determined to move forward in this new normal. We are positive that the proactive mitigating actions we have implemented as well as our consistency in transforming the Company would aid us in recovering and overcoming this operating environment.

โ€œIn times of difficulties lies opportunities.ย  We have weathered many crisis and emerged stronger. We wonโ€™t waste this crisis and we will come out stronger.โ€

AirAsia aircraft photo gallery:

AirAsia aircraft slide show:

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A message from AirAsia’s Tony Fernandes, 96% of the fleet grounded

AirAsia issued this statement from the CEO:

When Kamarudin and I started AirAsia nearly 20 years ago, we had a dream of allowing everyone the opportunity to fly. Sadly, that opportunity has now been taken away from us for now.

Itโ€™s an uncertain time. Never could I have imagined it, no one could have predicted it and yet everyone has been touched by it. So I want to be open and transparent with you in this time of uncertainty.

Thereโ€™s no denying that our industry has been hit hard, and we are no exception. This is possibly the biggest challenge we have ever had to face. We have no revenue coming in, 96% of our fleet is grounded and we still have significant ongoing financial commitments such as fuel suppliers and leasing agents.

We are doing everything possible to reduce costs during this time so we can come back fighting as fast as possible and continue to be the worldโ€™s best low cost carrier, enabling everyone the ability to fly with our great value and service.

We are one of the few airlines world over who has kept all of our staff on. AirAsia is a family and there are tens of thousands of Allstars who depend on the business for their livelihoods and the wellbeing of their own families. Kamarudin and I will not be taking a salary during this period and Allstars from across the business have accepted temporary pay reductions of anywhere between 15-75%,depending on seniority, to share the impact this is having on our business. I thank them for their sacrifice and in keeping the big picture in mind as we navigate this together.

In spite of all these challenges, I want to assure you that AirAsia is strong and remains firmly focused on the future and serving you, our guests . I also want to express my heartfelt thanks and appreciation to all of you for your loyalty to AirAsia and I hope that you and your loved ones are healthy and well throughout this trying time. Iโ€™m truly sorry that many of your travel plans have been affected. Like all airlines, AirAsia had no choice but to cancel a large number of flights due to government restrictions in an effort to contain the spread of COVID-19.

I know many of you have expressed frustration with not receiving a refund for your flights but I encourage you to accept a credit as a good alternative. More than 80 percent of you have accepted our credit offer and we truly appreciate this. Please know that our policy is in line with many operators in the travel industry and reflects our focus on coming out the other side of this difficult period and flying with you again as soon as possible. We have ensured that we adhere to all regulations and requirements of respective governments and consumer authorities and believe this is the best solution. You are among the over 600 million guests who have flown AirAsia and canโ€™t wait to fly with you again once this is over.

While we strongly encourage you to accept the credit which is instant and comes with a 365-day validity and allows you to change your flight date for an unlimited number of times, we do accept requests for refund on a case by case basis. However, due to the overwhelming number of requests that we have received, it may take a long process of between 12 to 16 weeks.

I also want to acknowledge the comments Iโ€™ve seen about our virtual Allstar AVA. Please know that we take your feedback seriously and my team is making improvements to the system daily. Currently our team and AVA are handling 10 times the normal volume of queries, which is now at about half a million guests on a daily basis.

We are working tirelessly, around the clock, to provide assistance to each and every one of you. Weโ€™ve mobilised additional support to our customer happiness team, including 1,800 Allstars from other functions, who have rolled up their sleeves and volunteered to help, so more live agents are available to assist you via our LiveChat, Facebook Messenger, Twitter & WeChat 24/7.

Weโ€™ve never had a time like this before and we are doing our best. We are not always perfect but we strive to do all we can for our people and our customers at all times. This is unprecedented but it is also temporary and we will be back, stronger than before, repainting the skies red and making sure everyone can fly again.

Until thenโ€ฆ

Stay home. Be safe. And look to the future.

#InThisTogether

Lots of love,

Tony

AirAsia (Malaysia) aircraft photo gallery:

AirAsia takes delivery of its first Airbus A321neo

AirAsia officially welcomed the future of its single-aisle fleet with the arrival of its first Airbus A321neo aircraft on November 22, that is set to present the airline group with greater efficiencies and higher capacity.

This is the first of 353 A321neos on order by the AirAsia Group which will eventually replace the existing fleet of A320 and A320neo aircraft throughout the network covering Malaysia, Thailand, Indonesia, the Philippines, India and Japan.

It is now set to become the first A321neo aircraft operating in Malaysia.

With 236 seats – a 27% increase in capacity compared to AirAsiaโ€™s present fleet of A320 (180 seats) and A320neo (186 seats) – the A321neo will enable AirAsia to serve strong ongoing demand across the network with significant operational efficiencies and open up opportunities to explore new destinations, with more than 10% fuel savings.

AirAsia will initially operate the aircraft from its Kuala Lumpur hub to cities across Asia, with the first destinations including Kuching, Kota Kinabalu, Singapore, Bangkok and Shenzhen.

The new aircraft, with registration number 9M-VAA, was welcomed by Malaysiaโ€™s Minister of Tourism, Arts and Culture YB Datuk Mohamaddin Ketapi, together with AirAsiaโ€™s senior management team in a ceremonial event at Sepang Aircraft Engineering (SAE) here today.

Earlier this year, AirAsia converted 253 orders for the A320neo to the larger A321neo version, with a total of 353 aircraft on order, making AirAsia one of the worldโ€™s largest customer for the A321neo.

AirAsia Group currently operates a wholly Airbus Family fleet of aircraft, flying out of its hubs in Malaysia, Thailand, Indonesia, the Philippines, India and Japan.

Photo: AirAsia. 9M-VAA wears a special “3.2.1 take off” livery.

AirAsia expands it online platform by offering services of other airlines

AirAsia has made this announcement:

AirAsia has expanded its online offering to include flights on other airlines as it transforms airasia.com into Asia Pacificโ€™s leading travel and lifestyle platform.

Announced in partnership with leading travel technology company Kiwi.com, destinations such as London, Dubai, Madrid and Auckland are now available to the more than 50 million unique monthly users who choose to book flights, hotels, activities and more on airasia.com.

airasia.com CEO Tony Fernandes said, โ€œToday is an unbelievable day. When we started AirAsia as a low-cost airline back in 2001, I never thought one day we would be selling our competitors. But if thereโ€™s one thing Iโ€™ve learned, itโ€™s never say never. Never say never and believe the unbelievable. Today, with the help of Kiwi.com, we are reinventing ourselves as more than just an airline, bringing to life our vision for airasia.com to be the regionโ€™s one-stop travel shop.โ€

Powered by Kiwi.com, AirAsiaโ€™s website users will be able to book travel on more than 100 airlines to destinations currently not served by AirAsia, including Europe, Australia, New Zealand, the Middle East and the Americas.

Spain_BIG_Pablo_KV_4X5_MY.jpg

To celebrate the announcement and its partnership with Davis Cup by Rakuten, which takes place on November 18-24, 2019 in Madrid, Spain, AirAsia has kickstarted a global marketing campaign featuring its very own Spanish Allstar, airasia.com Head of Product Pablo Sanz Salcedo

The campaign comes off the back of the companyโ€™s reorganization, which separates AirAsiaโ€™s airline operations from its travel and lifestyle arm, airasia.com. Since the reorganisation was announced in August this year, more than 700 Allstar staff have been recruited, and in addition to being based across Asia Pacific, a new airasia.com campus will open in central Kuala Lumpur early next year.

AirAsia orders more Airbus aircraft

AirAsia has signed two major agreements with Airbus, covering the order of an additional 12 A330neo and 30 A321XLR aircraft, as well as a memorandum of agreement to support the development of the Malaysian aerospace industry.

As part of the deal, Airbus will expand its maintenance, repair and overhaul (MRO) presence in Malaysia and establish the Airbus Malaysia Digital Initiative to enhance the competitiveness of the local aerospace sector through the application of new digital technologies, in line with the governmentโ€™s vision to make Malaysia a regional aerospace hub.

Airbus will also boost its commitment to the Aerospace Malaysia Innovation Centre (AMIC) – of which it is a founding member – by appointing an Innovation Technical Director and increasing its funding for joint research programmes, including into the production of sustainable aviation biofuels in Malaysia.

The agreements were signed by Airbus CEO Guillaume Faury and Tan Sri Rafidah Aziz, Chairman of AirAsia X Berhad for the aircraft purchase and Datuk Kamarudin Meranun, Executive Chairman of AirAsia Group Berhad for the industrial projects.

The signing ceremony was witnessed by Tun Dr Mahathir Mohamad, the Prime Minister of Malaysia. Also present was AirAsia Group CEO Tan Sri Tony Fernandes.

Airbus is the largest international partner for the Malaysian aerospace industry. Its sourcing and services businesses in the country are now valued at some US$400 million per annum for the local economy, a figure expected to rise to more than US$550 million every year with these new initiatives.

AirAsia also signed an agreement for a firm order of 12 additional Airbus A330neo aircraft, (taking the total from 66 to 78 A330neos on order) and 30 state-of-the-art A321XLR aircraft, to join AirAsiaโ€™s future long-haul fleet. The introduction of the A321XLR provides AirAsia X with greater flexibility to better manage capacity on key routes as well as respond to seasonal demand. The A321XLR also gives AirAsia X an advantage when it comes to exploring opportunities to operate non-stop flights between Southeast Asia and secondary cities in countries like Australia, China and Japan.

AirAsia upsizes Airbus A320neo order to larger A321neo

 

AirAsia will upsize its future Airbus single aisle fleet, converting 253 orders for the A320neo to the larger A321neo version. The change will enable the airline to offer higher capacity in response to ongoing strong demand across its network. AirAsia becomes the worldโ€™s largest customer for the A321neo.

In total, AirAsia has placed orders for 592 A320 Family aircraft. Following the upsizing, AirAsiaโ€™s backlog with Airbus includes 353 A321neo. To date, the airline has taken delivery of 224 A320 Family aircraft, flying out of its bases in Malaysia, India, Indonesia, Japan, the Philippines and Thailand.

Image: Airbus.

AirAsia paints the skies (RED), featuring 88rising, with a new logo jet

(AirAsia)RED

AirAsia has made this announcement:

AirAsia is proud to announce our partnership with (RED)ยฎ in support of the Global Fund to fight AIDS in Asean.

The funds generated from the (AirAsia)RED partnership will go directly to the Global Fund to support HIV/AIDS programs in Southeast Asia, home to nearly 1.8 million people living with HIV, according to 2017 UNAIDS data.

AirAsia has pledged proceeds from its current Free Seats promotion and various activities planned for 2019.

For every seat sold onย airasia.comย and the AirAsia mobile app until noon on Wednesday (GMT +8), AirAsia will donate 20 US cents, enough to buy one day’s worth of live-saving antiretroviral treatment for someone living with HIV.

In addition, AirAsia and (RED) will be collaborating with leading global Asian music label, 88rising, to launch a new Asean music and arts festival in 2019 to drive positivity and awareness of HIV/AIDS in the region. Dates, location and line-up will be announced at a later date.

The partnership was announced at the unveiling of a special (WEAREALLCHAMPIONS)RED livery at Sepang Aircraft Engineering (SAE). Guests were treated to a live performance by Los Angeles-based rapper Dumbfoundead, an 88rising collaborator who performed at their recent Head in the Clouds festival in the US.

The event was attended by Malaysian Minister of Health Datuk Seri Dr Dzulkefly Ahmad, Malaysian Youth and Sports Minister Syed Saddiq Syed Abdul Rahman, Malaysian AIDS Foundation (MAF) Malaysian Business Consortium on HIV/AIDS Manager Dr Rethish Raghu, MAF Advocacy Manager Dayana Omar, (RED) CEO Deborah Dugan, 88rising Founder and CEO Sean Miyashiro, AirAsia Group CEO Tony Fernandes and AirAsia Group Head of Branding Rudy Khaw, among others.

(RED) CEO Deborah Dugan said, “We couldn’t be more excited to partner with such a creative and innovative brand like AirAsia! Loved by millions and committed to making a real difference in Southeast Asia, the (AirAsia)RED partnership is literally taking the AIDS fight to new heights.”

88rising Founder and CEO Sean Miyashiro said, “88rising is absolutely over the moon with the idea of an amazing music and arts festival in Asean that empowers a young audience to save lives. All of 88rising will put all of our creative minds together to make this experience one of a kind, while creating massive awareness and engagement to a globally minded audience.”

AirAsia Group CEO Tony Fernandes said, “AirAsia has always been about making the impossible possible. Today’s global partnership is all about championing new opportunities, both for those living with HIV/AIDS and in terms of bringing a broader message of positivity and change to the Asean. And this is just the beginning. We have many more things planned with (RED), with support from 88rising, to supercharge outreach in the region, so watch this space.”

All images by AirAsia.

AirAsia launches Airbus A330 UFC branded livery to celebrate UFC partnership

AirAsia hasย launched the first UFC โ€“ branded livery on an AirAsiaย Airbus A330-300.

The aircraft is the first of its kind in the world to feature UFC branding and is sure to capture the attention of travelers all over the world.

AirAsia Group Head of Branding Rudyย Khawย added: โ€œWe are pleased to unveil this special livery as the Official Airline of the UFC in Asia. Fight fans have been eagerly awaiting the return of UFC to Singapore, and we are thrilled to be able to present Cowboy vs Edwards for their enjoyment.โ€

Speaking of the launch, Vice President of Asia Pacific at UFC Kevin Chang said: โ€œThis is a special moment for our valued partner AirAsia and UFC. Weโ€™re committed to growing the brand and sport in Asia, and this collaborative partnership will continue to help us do that. We have a Fight Night in Singapore in less than a month, and this branded aircraft will add to the excitement of fans traveling there.โ€

Come June 23, fans can expect a world-class MMA event with athletes from around the world. A truly international fight card,ย UFCยฎ FIGHT NIGHT SINGAPORE: COWBOY vs. EDWARDSย presented by AirAsiaย boasts athletes from Australia, Brazil, China, England, Japan, Mexico, Philippines, Russia and the United States.

Photos by AirAsia.

 

First Airbus A320neo assembled in Tianjin delivered to AirAsia

AirAsia (Malaysia) has taken delivery of the first Airbus A320neo (9M-AGK) assembled at the Airbus Final Assembly Line Asia (FALA) at a dedicated ceremony in Tianjin, China. The aircraft, powered by CFM LEAP-1A engines, seats comfortably 186 passengers and is equipped with the innovative Space-Flex cabin.

AirAsia is the largest airline customer of the A320 Family with orders for 578 aircraft. These include 404 A320neo Family aircraft.

Aireen Omar, AirAsia Berhad Chief Executive Officer said: โ€œWe are very proud to receive the first Airbus A320neo fully assembled in Tianjin, China and we would like to congratulate Airbus, as well as the Chinese Government ย for achieving yet another milestone. China is today one of the worldโ€™s most important markets for aviation, and we are honoured to be part of the development and rapid growth of Chinaโ€™s civil aviation. We are certainly proud to take delivery of this aircraft fully assembled in Tianjin and have this historic aircraft as part of our fleetโ€.

โ€œThe Airbus A320 aircraft has contributed immensely towards our business model and our operations. We received our first A320neo last year and this is our thirteenth Airbus A320neo that we are receiving for the group, which is also the 184th aircraft delivered by Airbus. As we expand our network and grow our fleet, it is important for us to stay at the forefront of our business. We are very pleased with the A320neo, which provides up to 15 percent fuel savings and an additional range of 500 nautical miles, which translates to a lower fares for our guests.โ€ she added.

โ€œI am very pleased to hand over the first A320neo to be assembled in Tianjin to AirAsia. ย AirAsia will continue to benefit from the unique commonality between all variants of the Airbus Family and enjoy efficiencies throughout its existing fleet.โ€ said Eric Chen, President of Airbus Commercial Aircraft China. โ€œThe delivery of the NEO is a milestone for our Asia Final Assembly Line, which will help to meet the robust demand of our customers in China and the Asia-Pacific region.โ€

The FALA in Tianjin, inaugurated in 2008 became the third single-aisle aircraft final assembly line location of Airbus worldwide, following Toulouse and Hamburg. It was also the first Airbus Final Assembly Line outside Europe. Today, some 340 aircraft have been assembled and delivered from Tianjin, China.

The A320neo Family incorporates the very latest technologies including new generation engines and Sharklets, which together deliver at least 15 percent fuel savings at delivery and 20 percent by 2020. With more than 5,200 orders received from 95 customers since its launch in 2010, the A320neo Family has captured some 60 percent share of the market.

Copyright Photo: Airbus.