Flying-Tiger
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Air Asia To Operate 400 Planes

Tue Dec 06, 2005 6:18 pm

If true it should be a major win for Airbus in the longer term and KUL as well...

Source: http://www.bernama.com/bernama/v3/news_lite.php?id=168898

KUALA LUMPUR, Dec 6 (Bernama) -- Southeast Asia's leading low cost carrier, AirAsia Bhd could eventually grow to operate a fleet of over 400 aircraft, its group chief executive officer, Datuk Tony Fernandes, said.

Responding to a question at a press conference here Tuesday on how big his carrier could get, he pointed out that the American low cost carrier, Southwest Airlines, which started with three aircraft, now had about 400, and that "they're in a smaller market than ours."

To-date, AirAsia has ordered 60 Airbus A320s with an option for another 40 aircraft which will completely replace its current fleet of 28 single-aisle, 148-seats Boeing 737-300s, he said.

The airline is expected to take delivery of its first A320 in two days time.

[SNIP SNAP]
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PanAm_DC10
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RE: Air Asia To Operate 400 Planes

Tue Dec 06, 2005 6:29 pm

Just to add a little from another report if I may;

By Kyunghee Park
Dec. 6 (Bloomberg) -- AirAsia Bhd., Southeast Asia's biggest discount carrier, said it has proposed to operate all but three of Malaysian Airline System Bhd.'s domestic routes as part of the government's reorganization of the network.

The review of the domestic routes is part of the government's plan to help Malaysian Airline, the nation's biggest carrier, recover from losses of 367.7 million ringgit ($97.3 million) in the second quarter ended Sept. 30. ``AirAsia can take on the bulk of the domestic routes where Malaysian Airline can't make money,'' AirAsia's Chief Executive Tony Fernandes said in an interview today in Kuala Lumpur.


They've still 40 options on the A320 Series and the above article does seem to confirm that MAS have no need to go ahead with their 737 Classic replacement RFP as reported last week if this proposal goes gains approval.

Regards, PanAm_DC10
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scbriml
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RE: Air Asia To Operate 400 Planes

Tue Dec 06, 2005 6:42 pm

Quoting PanAm_DC10 (Reply 1):
They've still 40 options on the A320 Series and the above article does seem to confirm that MAS have no need to go ahead with their 737 Classic replacement RFP as reported last week if this proposal goes gains approval.

Interesting! That would tie in with the lack of progress on a MAS order.
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bjornstrom
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RE: Air Asia To Operate 400 Planes

Tue Dec 06, 2005 6:49 pm

I really believe in AirAsia - they have a unique selling point in their market and offer good value for money. If they can offer prices low as $1 and still make money they will prosper.
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RE: Air Asia To Operate 400 Planes

Tue Dec 06, 2005 7:09 pm

Yeah, sure 400 sounds awesome. I mean we all love to boast and Tony is well known for that, for his attempts to be the Sir RB of Asia. But I fail to understand, how would AK have a market bigger than that of the USA? I'm assuming AK is counting the whole of ASEAN's population against that of the USA. If so, wouldn't (1) the % of people able to afford air travel dramatically higher in the USA generally, and (2) Southwest has the entire USA market available to them as domestic flights, whereas AK is restricted to bilateral aviation agreements with all 11 ASEAN countries. To have access to the market like Southwest does, AK would need a full open sky among ASEAN countries, something I wouldn't be too optimistic about at this stage, and even then, looking at the rate of development it is certainly not going to happen anytime soon.

So, should we say then Tony is once again boasting beyond his dreams? A fleet of 400 for AK? Maybe... I'll keep dreaming for now though. They certainly have the potential and if that is going to happen (god knows how many years later), I cannot imagine how they are going to manage a large fleet of 400 seeing how they are struggling with their B733s. They better put their acts together, and use the A320s as a starting point for that purpose.
 
levent
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RE: Air Asia To Operate 400 Planes

Tue Dec 06, 2005 10:30 pm

Following Ryanair's periodic stunts, Air Asia is offering 2,000,000 free seats (excl. taxes and charges) on all its routes to mark its 4th anniversary. Bookings can be made from 7 December to 28 December, for flights from February to October 2006.

Although my first experience with Thai Air Asia was not a good one, I sure won't let this chance escape to discover more of the region!  Wink

www.airasia.com
 
Flying-Tiger
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RE: Air Asia To Operate 400 Planes

Wed Dec 07, 2005 2:01 am

I think the bigger market is not too difficult to explain. IMO they speculate on an Open Sky Agreement for South East Asia in the next couple of years, which would certainly give them a huge market. Even if this is not realized in the next couple of years they are still able to start up a "Vietnam Air Asia", a "Cambodia Air Asia", a "Macau Air Asia" etc... so they have plenty of room to grow.

In addition they have options such as the take-over of basically all domestic MH routes. As they are an LCC they will not only be able to keep MH´s current pax but should be able to grow a couple of routes by quite a margin. So that would probably justify a total of 30 A320s just to replace the domestic 734s and another 15 for growth. Add in a couple of additional international routes ex Malaysia and you end up with another 15 or so A320s - which puts you into the region of 60 A320s you should be able reasonably operate.

Now add in the Thai market, and you have the domestic potential of say 15-20 A320s and an international potential of another 30. Indonesia would probably have a domestic potential of 50 A320s (all under currentl market conditions) and another 20 international. Makes another 60 (Thai) and 70 (Indonesia) - which means you already end up with a good 60 (MY) + 60 (TH) + 70 (ID) A320s = 190 A320s you should be reasonably able to operate under current conditions. If you throw in other ventures such as Cambodia, Vietnam or similar you should be easily able to pass the 200 mark.

Now, if you assume a constant economic growth in the region and a genereally increasing wealth you should be able to assume a strongly growing potential market.

So, he might be talking about 400 planes, but I would say in 12-15 years that should certainly be a possibility, especially when they opt for a mix of A319 and 320s.
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lehpron
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RE: Air Asia To Operate 400 Planes

Wed Dec 07, 2005 7:26 am

Is it me or do some posters simply do not believe that the area of China-India-Africa will ever get bigger, forget bigger than them, in the next few decades? Or is that it, they forget that this kind of growth takes a LONG time?

What, the whole world doesn't experience growth?

[Edited 2005-12-06 23:42:00]
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stealthpilot
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RE: Air Asia To Operate 400 Planes

Wed Dec 07, 2005 8:11 am

"..he pointed out that the American low cost carrier, Southwest Airlines, which started with three aircraft, now had about 400, and that "they're in a smaller market than ours.""

Not anywhere close. The US domestic market will be a smaller market eventually but not anytime soon- you're looking at a time period of 15 years or so and that�s being optimistic. The Asian region will grow, and grow fast undoubtedly but it definitely won�t rival the US domestic market anytime within the next 10 years.
Good outlook though..... I like it  Smile
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RE: Air Asia To Operate 400 Planes

Wed Dec 07, 2005 10:39 am

Flying Tiger,

Certainly some very optimistic thinking there. I mean, the outlook is definitely good and it is only a matter of time, like Stealthpilot said. Nothing during this decade for sure, and will be hard pressed for it to happen even in the next decade.

Vietnam AirAsia? Hmm.. I like that idea. Will it ever happen? Looking at how things are going now, I doubt it. Same goes for Macau AirAsia or Cambodia AirAsia. They will not be granted the necessary operating licenses in places like Vietnam.

Yes, a complete open sky within ASEAN has long been under speculation and even well underway in terms of being brought up in meetings of ASEAN leaders. However, at this pace, again, it is not happening anytime soon. At best, we're only looking at point-to-point more liberal bilateral agreements in the middle term future.

Nevertheless, my point really, was that Tony is never going to stop trying to be the Sir RB of Asia. And this example is precisely a case in point.
 
malaysia
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RE: Air Asia To Operate 400 Planes

Wed Dec 07, 2005 11:26 am

Quoting Bjornstrom (Reply 3):
. If they can offer prices low as $1 and still make money they will prosper.

how about Independence Air Asia?  box 
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