Posts: 1581
Joined: Tue Jan 30, 2001 8:55 am

Air Asia To Go Regional By January 2004

Mon Feb 24, 2003 1:12 pm

Malaysia's no-frills carrier, Air Asia, will start flying regional by January 2004. Air Asia plans to buy up to 8 aircraft to service these new regional destinations (Air Asia will expand its current fleet of 6 aircraft of 15 by year end, and the additional 8 aircraft will bring the total aircraft count to 23). Those regional destinations that had been earmarked for the regional expansion include Semarang, Surabaya, Bandung, Medan and Bukit Tinggi in Indoneasia; Phuket and Chiang Mai in Thailand. Singapore will not be included in the regional expansion since Air Asia plan to develop Johore Bahru as one of its hub.

In the domestic market, Air Asia will inaugurate flights from Kuala Lumpur (KUL) to Alor Star next month; Sandakan and Sibu in April; Johore Bahru and Bintulu in May. It's unlikely that Air Asia will add new destinations from KUL after this expansion, but it will develop Kota Kinabalu, Johore Bahru and Penang as its domestic hubs and fly from these hubs.

Also, Air Asia seem to take SIA's "warning" lightly when the latter carrier warned Air Asia that it can turn SilkAir into a low cost carrier in a very short period of time to meet any challenge from any budget carriers, i.e. Air Asia. "So, my advice to Cheong is to keep to their territory. They are best on the international front. But it is nice to have people with calibre and experience like Cheong commenting on us. We are just a four men of straw" as quoted by Air Asia's chairman.

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Triple Seven
Posts: 518
Joined: Fri Apr 07, 2000 10:04 pm

RE: Air Asia To Go Regional By January 2004

Tue Feb 25, 2003 3:12 am

I suppose the additional 8 aircrafts will be something other than 737s. I wonder how well would Silk Air work out as a no-frill carrier, this will probably mean abandoning most of its current routes that was designed to complement SQ.

- Triple Seven

OdiE - I heard that the snow up north are melting and there might be flooding.
Have fun swimming  Wink/being sarcastic
Posts: 1581
Joined: Tue Jan 30, 2001 8:55 am

RE: Air Asia To Go Regional By January 2004

Wed Feb 26, 2003 6:37 am

From their press release, it seems that they are going to buy the 8 additional aircraft instead of leasing it. According to Tsentsan, Air Asia is planning to buy the B737NG, which will be a great for its regional expansion. Also, I think they wanted to expand into Vietnam as well, but obtainning traffic rights in Vietnam is really tricky though.

Triple Seven: Well, when you have 2 feet of snow, it just doesn't go away in a rainstorm. There's something better now. Ice! Some of those snow had melted, but we still have a good couple of inches left on the ground. And now that it's cold again, we get something called ice! Anyway, we are expecting another storm this Thursday! Good luck with the thunderstorm down in AL.

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