New Budget Airline Set To Take On World

[Rinrada]

Some good news in the Biz....

Budget airline set to take on world .. Monday, 01 January 2007.....From The Star..KL...(with thanks)

New Budget airline plan

Virgin and EasyJet are to team up with an Asian airline to create the world's first budget global network.

Richard Branson's Virgin and and EasyJet's Stelios Haji-Ioannou will join forces with AirAsia to form a Malaysia-based alliance, the south-east Asian country's Star newspaper says.

It quoted unidentified industry sources as saying that the new joint venture would first fly between Kuala Lumpur and Manchester, and Amritsar in India.

And the alliance - if it decided to fly to London as well - could also use Luton airport as a hub because Virgin already operates a rail link from there to central London, the paper said

Fares to Britain will be between £43 and £365, about half the price of a ticket on a regular airline, it added.

It said the alliance would give Virgin and EasyJet access to Kuala Lumpur's low-cost airport terminal, the gateway to a dream Asian hub for their Europe-to-Australia routes.

Sir Richard is having talks with AirAsia's Tony Fernandes and recently-knighted Greek-British tycoon Sir Stelios and that plans could include flights to Hangzhou near Shanghai, China and Tianjin near Beijing, according to the report.

The newspaper quoted a source familiar with the discussions as saying that fares on the long-haul network would be as low as £14 for destinations in China.

AirAsia spokesmen were not immediately available for comment because of a public holiday in Malaysia.

But The Star quoted Mr Fernandes as saying that AirAsia, Asia's most profitable and largest no-frills carrier, was currently focused on short-haul services "where we have much work to do........

[londonthai]

I get 100 those for £43 - where shall I pay?

It might be some time before they start flying - looks like they have only plans

[Florin]

In any case, let's see how low the prices will actually be...I really like Jetstar as a short-haul LCC, but their long-haul offering is not very enticing, a ticket from BKK to Melbourne is pretty much the same price as using a discount SQ or TG ticket.

[my friend I]

Some good news in the Biz....

Budget airline set to take on world .. Monday, 01 January 2007.....From The Star..KL...(with th

It said the alliance would give Virgin and EasyJet access to Kuala Lumpur's low-cost airport terminal, the gateway to a dream Asian hub for their Europe-to-Australia routes.

They obviously haven't seen the "dream Asian hub"

[libya 115]

At first glance this looks like good news, but these days airline prices are very competitive.

For example; The cheapest flight today LONDON-BKK is 360 GBP return. If this flight is cancelled, you will be accommodated in a hotel and compensated.

There will be a free check-in allowance of 20 kg minimum and about 5-7 kg hand luggage.

Food and drinks during the flight will be free, and the seat pitch will be a minimum of 32 inches.

Air miles will be awarded and upgrades might be possible. Choice of seating will be available.

However:

Budget airlines offer none of the above; and can be an absolute nightmare. Imagine a long-haul nightmare. When you have added the extra costs for luggage and food etc. you might be 50 GBP better off, but still not have the peace of mind of a proper carrier.

Also taxes are not quoted. U.K. long haul tax will be 40 GBP alone.

I am trying to make the point that although I welcome budget airlines, they are not some kind of wonderful dream ticket. You will always get what you pay for, in the end.

[markuk]

Some good news in the Biz....

Budget airline set to take on world .. Monday, 01 January 2007.....From The Star..KL...(with thanks)

It said the alliance would give Virgin and EasyJet access to Kuala Lumpur's low-cost airport terminal, the gateway to a dream Asian hub for their Europe-to-Australia routes.

great news for bangkok's new shiny joke of an airport!! low cost carrier comes in, forces BA/THai and the larger ones to cut frequency and more travellers got to KL!!!

[Nikkijah]

Fares to Britain will be between £43 and £365, about half the price of a ticket on a regular airline, it added.

sounds amazing...

I would love to fly cheap back and forth to the UK for many reasons but spending 11 hours on a plane in a comfy seat on a regular flight is unpleasant enough, what would the conditions be like on a budget journey...

[cclub75]

I am trying to make the point that although I welcome budget airlines, they are not some kind of wonderful dream ticket. You will always get what you pay for, in the end.

Well there is room for many players and many segments. Last concept : the low cost premium/ business class.

Oasis for instance between HK and UK. And MaxJet.

http://www.maxjet.com

And the last one : the french "L'avion". With only 1 route : Paris/New York on business class seats.

http://www.namedevelopment.com/blog/archiv...ow_cost_ai.html

This idea is really a good one. The bottom line is : economy class seats for long haul... are simply totally outdated. For physical reasons. People are taller and bigger.

This is why, I believe A380 will have a bright future with the ability to put still a lot of seats, but larger.

[Rinrada]

...anyone for LOS..

...£45 return..

....a quiet beer at the bar..............Not 2 long....

[londonthai]

two days before The Star KL published this article there was another similar one in New Straits Times - most probably about this same venture.

Flying cheap from KL to London

Budget flights expected to start in July

30 Dec 2006

Anna Maria Samsudin

--------------------------------------------------------------------------------

KUALA LUMPUR: After dominating the regional low-cost-carrier (LCC) market within just five years, airline whizzes Datuk Tony Fernandes and Datuk Kamaruddin Meranun are now ready to take on Europe, and London is the likely maiden destination.

Word has it that the Kuala Lumpur-London route would be the first of several more low-cost long-haul air services to be offered.

Scheduled to take off by July next year, it is believed that the service would be the world’s longest LCC route and would fast-track Malaysia into becoming a leading global LCC hub.

Fernandes, who is AirAsia chief executive officer, declined to confirm or deny speculation when contacted by Business Times.

He said the long-haul service was not a model for AirAsia because the airline focused on short-haul travel with flight times of three to four hours.

He said that while he believed there was huge potential for a budget long-haul air service model, “currently, there is no budget long-haul model that we really like”.

“It is just a matter of time before someone comes up with a good model for a low-cost carrier and I hope the innovation would come from Malaysia.

“This would complement our efforts in turning KLIA into the Dubai and Changi for LCCs," he said yesterday.

Although details are sketchy, sources close to the deal said the Kuala Lumpur-London service would be a partnership between AirAsia and Fly Asian Xpress (FAX).

FAX — privately owned by Fernandes, Kamaruddin (picture) of AirAsia and former AirAsia chief financial officer Raja Azmi Raja Razali — is the operator of rural air services in Sabah and Sarawak.

In conjunction with the plan, FAX is in talks with several parties to look for wide-body aircraft, namely Boeing 777s or Airbus 330s, to lease or buy.

The Kuala Lumpur-London flight service would most likely stop over in Dubai and may have two seat classes, economy and "super economy", which is equivalent to business class.

The budget flights will probably seek to land at airports near London where landing charges are lower.

Malaysia Airlines (MAS) is the only carrier operating non-stop full-service Kuala Lumpur-London routes 18 times weekly.

A check showed the lowest return trip on MAS costs between RM4,000 and RM5,000, including taxes, and RM18,000 for business class.

For the budget flights to be competitive, because they have a stopover, the pricing must be substantially lower to attract travellers.

Analysts contacted by Business Times were positive about a budget Kuala Lumpur-London service, which they believe would open up a new market segment for long-haul flights.

Nevertheless, they said the nature of long-haul flights was different from normal LCC business and required thorough planing to work.

Oasis Hong Kong Airlines is the sole operator of a budget long-haul service via its Hong Kong-London flights that started in October.

It is the second airline in the world, after the defunct Laker Airways Skytrain, to adopt the long-haul budget service model.

Although Oasis has plans to expand to other parts of Europe, market observers said the airline was having difficulties due to the complexity of running a budget long-haul model.

Aviation analyst Shukor Yusof, from Standard & Poor’s Equity Research in Singapore, said the market for long-haul flights was different from the normal LCC market.

He said long-haul business was more complicated and had a higher risk factor.

"LCCs flying long haul must be prepared to see their costs rise in return for lower yields."

On whether the new service would have a negative impact on the national carrier, TA Securities analyst Rosnani Rasul was optimistic that the "cake" was big enough for everyone.

"The new service will create a new market segment. It will not cannibalise MAS."

While optimistic that a budget long-haul service would work, she said details such as food, beverage and entertainment had to be looked into because of the lengthy flight time involved.

"I don’t think they can adopt AirAsia’s current no-frills model."

[Arandora]

January 3, 2007

British airlines easyJet and Virgin Atlantic on Wednesday denied media reports which said they might take part in a global low-cost alliance with Malaysian carrier AirAsia or its owners.

"We are not joining any alliance," easyJet spokesman Toby Nicol said.

"The whole low-cost airline business model is based on simplicity," he added, noting alliances with other airlines involve costs and complications.

Virgin Atlantic spokesman Paul Charles said: "It's nothing to do with us. AirAsia clearly have their own plans and it is up to them to announce them."

Malaysian newspapers have reported that AirAsia, easyJet and the Virgin Group were in talks to form a global no-frills alliance that would offer cheap flights within Asia as well between Europe and Australia via Kuala Lumpur.

A source said that the major owners of AirAsia might pursue a tie-up with the two airlines via FlyasianXpress (FAX), a domestic Malaysian carrier they control.

(Reuters)

Wishful thinking on AirAsia's part it would appear!

[Arandora]

January 3, 2007

British airlines easyJet and Virgin Atlantic on Wednesday denied media reports which said they might take part in a global low-cost alliance with Malaysian carrier AirAsia or its owners.

"We are not joining any alliance," easyJet spokesman Toby Nicol said.

"The whole low-cost airline business model is based on simplicity," he added, noting alliances with other airlines involve costs and complications.

Virgin Atlantic spokesman Paul Charles said: "It's nothing to do with us. AirAsia clearly have their own plans and it is up to them to announce them."

Malaysian newspapers have reported that AirAsia, easyJet and the Virgin Group were in talks to form a global no-frills alliance that would offer cheap flights within Asia as well between Europe and Australia via Kuala Lumpur.

A source said that the major owners of AirAsia might pursue a tie-up with the two airlines via FlyasianXpress (FAX), a domestic Malaysian carrier they control.

(Reuters)

Wishful thinking on AirAsia's part it would appear!

So, the rumours were true, except it's just Air Asia - no Virgin or Easy Jet. It's just been confirmed on our Regional TV which showed the signing ceremony in Kual Lumpur. Initially flights from KL to Manchester to KL (Man.United being AirAsia's official SE Asia Airline it kakes global marketing sense) at suggested price of from £40 each way. Didn't say when from though.

[Rinrada]

Another bit on Air Asia Express....

New low cost carrier enters the long haul market

January 08, 2007

Fly Asian Xpress (FAX) has launched AirAsia X, which will be one of the first in the world in tailoring the low cost model for long haul travel.

The launch of AirAsia X will change the way passengers are able to travel long haul as it will provide greater options and affordability to the travelling public according to the company.

AirAsia X will fast track Malaysia into the global low cost travel hub when it commences operations in July 2007 from the low cost terminal in KLIA.

The launch of AirAsia X was officiated by Y.B. Dato` Sri Chan Kong Choy, Minister of Transport Malaysia and was also graced by Y. B. Dato’ Seri Tengku Adnan Tengku Mansor, Minister of Tourism Malaysia.

“I congratulate Dato’ Tony and his team on being one of the first global innovative pioneers of the long haul low cost airline model and for their continued drive and innovation to make KLIA the global hub for low cost travel.

The launch of this venture during Visit Malaysia Year 2007 is timely and will provide another useful platform in connecting Malaysia to the world. The Malaysian government is proud of this world class achievement,” said Y.B. Dato` Sri Chan Kong Choy, Minister of Transport Malaysia.

During the launch ceremony, FAX also signed a Memorandum of Understanding with AirAsia. The MOU will allow AirAsia to franchise its internationally recognized brand to FAX, the operator of AirAsia X.

AirAsia X’s network focus will cover destinations which are more than 4 hours in flight duration to and from Kuala Lumpur, offering daily point-to-point frequencies to popular destination in China, India and Europe.

AirAsia X will also tie up with LCC partners at destinations in order to increase connectivity and route network.

In terms of fleet, AirAsia X is currently finalizing its requirements, and aircrafts under consideration include Boeing 777-300ER’s and Airbus 330-300‘s.

“AirAsia X will offer an innovative product offering, ensuring passengers will enjoy a level of comfort and convenience suited for long haul travel,” said Dato’ Tony Fernandes, director and founder of FAX.

“We are excited with the opportunities and potential within the long haul low cost travel market. Customers can expect exciting and unbelievably low fares for their long haul travel, due to the significant cost saving opportunities within the long haul low cost business model. We believe this venture will be another world class achievement for Malaysia. Equally important, we intend to be the first in the world to make a success of this model” said Raja Mohd Azmi, Chief Executive Officer of FAX.

“While AirAsia and AirAsia X will be 2 separate legal entities and have separate management teams, I believe AirAsia X and AirAsia will have a symbiotic relationship. Both carriers will enhance the feed of passengers into each others operations, and ensure passengers enjoy a seamless experience when flying with both carriers.

We intend to leverage from the global popularity of AirAsia in creating the awareness of AirAsia X,” added Dato’ Tony.

“We are proud in being able to continue to lead and revolutionise the aviation industry in Asia, just as we did with AirAsia. Ultimately, the launch of AirAsia X will bring independence to the long haul low cost traveller, by providing a choice of service for their long haul travel requirements.

We continue to be thankful for the support from the Malaysian Government, and will intend to realise its vision in creating world class companies which compete successfully within the global arena,” concluded Dato’ Tony Fernandes.

Vicky Karantzavelou - January 08, 2007 (with thanks)

http://www.traveldailynews.com/new.asp?new...bcategory_id=98

[Rinrada]

Just in from Stephen Miller CEO. OASIS Hong Kong....

Dear all friends of Oasis,

Oasis – Your Best Choice for Low Fare Long-Haul Travel!

Happy New Year!

Now going around the world is as affordable as going around the corner with Oasis’ debut last October as Hong Kong’s newest and only low fare, long-haul airline. Having pioneered a fresh approach to flying, we take great pride and joy in celebrating a new milestone in 2007 with the recent successful operation of our 100th flight from Hong Kong to London.

Oasis’ fantastically low fares – from only £75 one way – have already fulfilled the travel dreams of over 25,000 customers! Our incredible value business class, at the amazing price of just £470 one way, has been receiving many compliments for its premium comfort, delicious meals and quality service.

Offering a smart new way to fly with great value, Oasis is truly your best choice for business and leisure travel. With two Boeing 747-400 aircraft currently operating daily non-stop flights between London Gatwick and Hong Kong, our airline has achieved an average on-time performance of 83% during the peak holiday travel time in December. For the month of January, our on-time performance record is 100% so far.

Oasis allows you to see your family and friends more often, expand your business contacts and market opportunities, and enjoy the shopping, dining and entertainment of Hong Kong for no more than you’d pay to travel in Europe.

If you have taken Oasis flights before November 30, you can enjoy even more affordable luxury with a £47 discount on your next business class ticket purchased before March 31. Book now to take this irresistible treat!

Thank you very much for your patronage and for choosing to fly Oasis – we hope you enjoyed your experience. We look forward to continuing to serve you in 2007 and to welcoming you on board again soon!

Sincerely yours,

Stephen H. Miller

Chief Executive Officer

wonder if we can negotiate a DEAL for TV.com members to Honkers .....need a jolli......