JoKeR
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Air Asia Interested In JAT - BEG Europe Hub

Tue Sep 04, 2012 8:02 am

Malaysia's Air Asia has expressed interest to take over Jat Airways and turn BEG into its European hub.

With so many false starts seen before, I am skeptical, but would be thrilled if this was to materialize. Air Asia is apparently due to submit an offical proposal by this week's end to the Serbian Government in Belgrade. The offer apparently includes new planes and a plan that would see JU feed pax from all over Europe to BEG and from there onto KUL and beyond - I guess with Air Asia X.

Lets see.... fingers crossed.

In Serbian... http://www.b92.net/biz/vesti/srbija....yyy=2012&mm=09&dd=04&nav_id=640053
 
IndianicWorld
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RE: Air Asia Interested In JAT - BEG Europe Hub

Tue Sep 04, 2012 8:12 am

KUL-BEG? Who would have thought  

Might get some of the Balkan-Australia traffic, but the demand would be questionable for the sector, even with feed on both ends.

Not too sure how successful this will be, but nothing surprises me really in this industry.
 
JoKeR
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RE: Air Asia Interested In JAT - BEG Europe Hub

Tue Sep 04, 2012 9:22 am

Quoting IndianicWorld (Reply 1):
KUL-BEG? Who would have thought

Might get some of the Balkan-Australia traffic, but the demand would be questionable for the sector, even with feed on both ends.

I think the traffic you are mentioning is the least of their concern and interest. They would rather have JU feed their flights between KUL and BEG - from across Europe.
 
oldeuropean
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RE: Air Asia Interested In JAT - BEG Europe Hub

Tue Sep 04, 2012 11:02 am

JU and BEG?   

What a strange idea. Who do they think, will use this connection to Asia????

I don't see a chance for them with that approach.
Wer nichts weiss muss alles glauben
 
gilesdavies
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RE: Air Asia Interested In JAT - BEG Europe Hub

Tue Sep 04, 2012 11:19 am

Another airline interested in JAT... If I remember rightly, we've had, Aeroflot, Icelandair, Air India, Czech Airlines and Jet Airways, but have quickly run a mile after seeing the state of the airline finances and bureaucracy they face from unions and government.

When they look at the books, they will soon run away too! JAT along with all the other former Yugoslav Republic airlines are hemorrhaging money.

Belgrade as a hub to Asia is an interesting concept and in the right part of Europe to offer connections, from the likes of Germany, UK and France... Belgrade use to be a reasonably sized hub, offering connections to Australia, Asia and America, assuming these facilities still exist the airport could be ideal.

One of the reasons of them pulling out of the UK was due to the costs Air Passenger Duty (APD) which was about £80 regardless of the cost of a ticket. So on their fares a large part was been eaten up with this charge. As they offer point-to-point tickets they could sell the London-Belgrade route seperately which would only incur about £12 in APD and assuming Serbia has no fees like this, they would avoid these government taxes.
 
JoKeR
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RE: Air Asia Interested In JAT - BEG Europe Hub

Tue Sep 04, 2012 12:11 pm

Quoting gilesdavies (Reply 4):
Another airline interested in JAT... If I remember rightly, we've had, Aeroflot, Icelandair, Air India, Czech Airlines and Jet Airways, but have quickly run a mile after seeing the state of the airline finances and bureaucracy they face from unions and government.

Very true! You probably forgot a few of them as well 

What a joke JU's privatization attempts have been... It would not surprise me if they simply give JU away to Air Asia. I would be the first to support it - for one Euro and voilla!

Quoting gilesdavies (Reply 4):
Belgrade as a hub to Asia is an interesting concept and in the right part of Europe to offer connections, from the likes of Germany, UK and France... Belgrade use to be a reasonably sized hub, offering connections to Australia, Asia and America, assuming these facilities still exist the airport could be ideal.

Geographically the airport could offer Air Asia a lot. Recent infrastructure improvements, terminal reconstruction, expanded taxiways etc have propelled it well ahead of all other ex-YU airports in terms of size and traffic handled. Plus its uncongested, and I'm sure they will be offered very sweet deals from the new Government.
 
MaverickM11
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RE: Air Asia Interested In JAT - BEG Europe Hub

Tue Sep 04, 2012 12:31 pm

Wow what a terrible idea; nothing about Air Asia's model requires a hub, let alone one in Europe
E pur si muove -Galileo
 
peterinlisbon
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RE: Air Asia Interested In JAT - BEG Europe Hub

Tue Sep 04, 2012 12:53 pm

Istanbul might be a better idea - then perhaps flight from it's hubs in Southeast Asia could connect with flights from it's hub in Europe at places such as India and Nepal and perhaps they could sell them as through tickets (no visa). But seriously, isn't it now possible to fly low cost all the way from Europe to Southeast Asia with a few stops on the way? For example, London-Istanbul-Dubai-India-KL for example on Easyjet/Fly Dubai/Air Asia.
 
LondonCity
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RE: Air Asia Interested In JAT - BEG Europe Hub

Tue Sep 04, 2012 1:14 pm

Quoting gilesdavies (Reply 4):
One of the reasons of them pulling out of the UK was due to the costs Air Passenger Duty (APD) which was about £80 regardless of the cost of a ticket. So on their fares a large part was been eaten up with this charge.

I realise this is one of the reasons which Air Asia X provided at the time. But if this were the case then why did Air Asia X drop its ORY-KUL service at the same time ? France has no APD.

I do think the main reason is that Air Asia X had no pricing power in the market. Its fares were often undercut by the Gulf carriers who, of course, not only operate from many more European cities (via the Gulf) but also do not charge for food, baggage check, IFE and so on.
 
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9MMPQ
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RE: Air Asia Interested In JAT - BEG Europe Hub

Tue Sep 04, 2012 2:33 pm

I'll believe it when i see it...

Air Asia X dropped ORY because yields were ( too ? ) low. LGW being scrapped could nicely be blamed on the UK APD rather then admit that here too yields were probably too low to make it work. If the APD so severely impacts your loads that operations become unsustainable then the business model had to have been flawed already.

I'm not even sure there's enough Balkan-Australia traffic to go around, even if you're flying directly from BEG. With a relatively short hop to other European capitals there's possible connections with all the big boys, including all the gulf state carriers. Plus, would yields be any better here ? MH for example withdrew from FCO citing (among other reasons) low yields while everyone was certain they could/would capitalise on all of the traffic from Italy & Balkan countries to Australia. I'll grant you there's a difference between the FSC & LCC model but with all of the above i have my doubts.
I believe in coincidences. Coincidences happen every day. But I don't trust coincidences.
 
LondonCity
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RE: Air Asia Interested In JAT - BEG Europe Hub

Tue Sep 04, 2012 3:00 pm

Quoting 9MMPQ (Reply 9):

Air Asia X dropped ORY because yields were ( too ? ) low. LGW being scrapped could nicely be blamed on the UK APD rather then admit that here too yields were probably too low to make it work. If the APD so severely impacts your loads that operations become unsustainable then the business model had to have been flawed already.

That's what I think too. Air Asia X could not charge enough to make its flights profitable. If Air Asia X were to charge more then it would be uncompetitive with the likes of EK/EY/QR. You need only look at how many flights these three carriers operate between the Gulf and KUL to see what a big share of the market they now control.

But also the Gulf carriers depart from secondary cities too. There are a good number of Malaysian nationals studying and working in Manchester. Why should they spend time and money trekking south to LGW when they can fly from their local airport with EK/EY/QR ?

Then there was the high cost of fuel for Air Asia X's A340-300s. The fuel price accounts for a higher percentage of operating costs for an LCC (compared with a traditional carrier).
 
AirbusA6
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RE: Air Asia Interested In JAT - BEG Europe Hub

Tue Sep 04, 2012 3:47 pm

Air Asia X may be a LCC, but JAT isn't, it's fares are quite expensive and it has a fairly small fleet of aging 733s flying a small network...
it's the bus to stansted (now renamed National Express a6 to ruin my username)
 
JoKeR
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RE: Air Asia Interested In JAT - BEG Europe Hub

Wed Sep 05, 2012 10:07 am

Quoting AirbusA6 (Reply 11):
Air Asia X may be a LCC, but JAT isn't, it's fares are quite expensive and it has a fairly small fleet of aging 733s flying a small network...

I'm sure that JU would be turned into an LCC and just feed the BEG hub from all across Europe - creating a hub and spoke out of Belgrade with A320s. The fleet would simply be sold-off. Oh and you forgot the ATR 72s!  

Again, despite even today's major press details and news reports, I still believe this is unlikely. But hey, we can all dream   
 
mig21umd
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RE: Air Asia Interested In JAT - BEG Europe Hub

Wed Sep 05, 2012 11:22 am

Once you have tasted flight, you will forever walk the earth with your eyes turned skyward, for there you long to return
 
KFlyer
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RE: Air Asia Interested In JAT - BEG Europe Hub

Wed Sep 05, 2012 2:10 pm

I seriously doubt this story's authenticity. I would be very surprised if Tony or Azran ever okayed an idea like this. At most, they want to stay out of Europe for now.
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