Cost management to be key focus: AirAsia Group CEO

Undeterred by expensive fuel and limited infrastructure, AirAsia Group CEO Tony Fernandes believes that the airline’s effective cost management strategy will allow AirAsia India to succeed, even if “the rest of the Indian aviation industry has so far failed to deliver”.

According to Mr. Fernandes, the airline’s Indian venture will start “more aggressively than any of the company’s previous ventures”, with operations starting hopefully before the end of this year. “We want to stimulate the market while charging as low as we can go, even if that means initially avoiding pricier airports like Mumbai and Delhi. We need less fat everywhere, we will charge for extra baggage, and not go in for decisions like code share agreements which just add to the fat,” he said, while addressing reporters here on Saturday.

“If people say the market is shrinking, that’s because other players aren’t doing it right. Being low cost is in our DNA… other Indian players gave up too quickly. The key for us is in our discipline and focus. India still hasn’t seen a true low-cost carrier, even Deccan got the cost management wrong,” he added.

AirAsia India will initially start its operations with three aircraft, all Airbus, and plans on adding one plane every month. A large part of the airline’s strategy in India, according to Mr. Fernandes, will rest on the ability of the Indian market to adapt to AirAsia’s low-cost ways.

Dismissing suggestions that the project was delayed by the government, he asserted that AirAsia India’s entry came at “the perfect time.”

IndiGo Airlines may lose its commanders to AirAsia India

Besides a hefty package that AirAsia India is offering to the pilots, there are other reasons, like better working conditions, for these pilots to move out, say Indigo sources. "As many as 100 commanders have sought jobs with AirAsia India. And this is not only for higher packages, but also for better working conditions," airline sources said.

AirAsia is expected to bring in competitive pricing in the domestic aviation market with its "nano" airfares and may pose a direct competition to IndiGo, which is the undisputed leader in the low-cost segment now.

IndiGo currently has around 1,000 pilots to operate its fleet of 66 Airbus planes. Out of these, nearly 60 per cent of them are commanders. "An IndiGo commanders' average take-home salary is around Rs 3.20-3.30 lakh a month, which is below the industry level. As against this, AirAsia India is offering a take-home salary of Rs 4-4.20 lakh a month," sources said.

AirAsia sees higher F&B sales with ‘Raya meal’ promotion

Its chief executive officer Aireen Omar said the promotion, starting on Sunday would attract more locals and foreigners to fly with AirAsia to enjoy Malaysian traditional food like vegetable Manchurian rice, Uncle Chin's sweet and sour chicken rice and vegetable briyani.

"We will also provide nasi hujan panas with beef rendang and pickled vegetables and wajik as the dessert," she told a media briefing after the launch of the 'Raya Meal' promotion and the new in-flight menu in Sepang today.

She said it was not easy to have these types of food nowadays unless you were in the kampung.

Aireen said AirAsia has also introduced a new snack selection like yam cake, samosa with mint chutney and lamb kathi kebab wrap which would be available for purchase onboard AirAsia flights with 'AK' flight code.

Friends,

I am curious about your thoughts. Is Air Asia undervalued at 3.x? It seems like the airline is well run and has much higher load factor (meaning flights are typically full) compared with its competitors like malindo, and because its first mover advantage in ASEAN, it has strong customer base. What do you think?

bro, already got thread on AirAsia

https://forum.lowyat.net/index.php?showtopi...4791&hl=airasia

AirAsia targets Indonesia listing by Q4'13 or Q1'14

Expecting more "special dividend" in near future

Did they ever do? Airasia X IPO got special dividend?

if not mistaken, after the Thai AA IPO last year, AirAsia bhd gave some "special dividend" early this year.

http://www.channelnewsasia.com/news/busine...fit/785808.html
KUALA LUMPUR - AirAsia, Asia's largest low-cost carrier by fleet size, said on Wednesday its net profit slumped 62 percent in the second quarter due to higher operating expenses and foreign-exchange losses on borrowings.

Net profit was 58.35 million ringgit ($17.75 million) in the three months ending June 30, falling year-on-year despite a 5.5 percent rise in revenue, according to a filing with Malaysia's stock exchange.

It said challenges remained due to high prices for oil and aviation fuel.

"However, barring any unforeseen circumstances, the directors remain positive for the prospects of the group for the third quarter and the remainder of 2013," it said.

The airline had reported a 39 percent year-on-year drop in profit in the first quarter.

Rapidly growing AirAsia has set up subsidiary budget carriers in Indonesia, the Philippines and Thailand. It said each of the fledgling airlines saw significant revenue increases in the quarter.

AirAsia has grown from two planes, when flamboyant boss Tony Fernandes bought the then-struggling airline in 2001, to a total fleet of more than 120 A320s.

"Our traffic numbers show that the AirAsia brand is strong and that we are still able to stimulate demand and retain loyalty among our existing passengers through our low fares and extensive network across the region," Fernandes said in a statement.

The airline, one of the biggest customers for European aircraft maker Airbus, is expecting nearly 360 more aircraft to be delivered up to 2026.

AirAsia is planning to launch a no-frills joint venture in India later this year.

But it was announced in June that it would terminate a joint venture with Japan's All Nippon Airways to set up a Japanese budget carrier, citing management differences.

- AFP/de

AIRASIA – Q2 2013 Financial Report (http://www.bursamalaysia.com/market/listed...cements/1382517) on 21 Aug 2013

Analysis Report – http://lcchong.wordpress.com/2013/08/22/ai...is-22-aug-2013/ or http://lcchong.wordpress.com/knowledge-sharing/

something wrong at here
airasia probability 40% going down

due to passenger shrinks or cost higher ?

time to BUY @ 2.51 a sweet entry spot.

let see today result..

even 2.65 look so juicy to buy

what RESULT to u want to see? RESULT means the Quarterly business performance.

indeed

are u high on weed?

http://www.bursamalaysia.com/market/listed...cements/1382517

Its there already. Today is AUGUST 23 mang...

http://klse.i3investor.com/servlets/stk/fin/5099.jsp

don;t understand what are u mumbling about.



That is the result. SO from RM3 >>>RM2.70 -30cts happened.