Airasia Execs Seek Govt Support To Make Thailand A Hub

[webfact]

AirAsia execs seek govt support to make Thailand a hub

PIYANAT SRIVALO,

NONGNAPAS PITHAPATI

THE NATION

BANGKOK: -- AirAsia founder Tony Fernandes yesterday met with Prime Minister Yingluck Shinawatra to ask the government to help Asia's newsjsbiggest low-cost carrier to expand its flight network here so that the country is strategically located for regional tourism.

He was accompanied by group executives including Azran Osman-Rani, chief executive officer of AirAsia X. They were greeted by Finance Minister Kittiratt Na-Ranong and Transport Minister Chadchart Sittipunt.

After the meeting, Fernandes said he was confident of using Thailand as a regional hub for the airline.

Yingluck said the government had been improving key provincial airports such as Chiang Mai, Udon Thani, and Krabi to make them suitable to welcome foreign arrivals directly.

AirAsia was assured that the government's policy is to promote Thailand as a hub for low-cost carriers in Asean. It will more completely facilitate connections among all modes of transport including road, rail and air, not only at home but also linking Asean with such countries as China, India, Japan and South Korea.

Yingluck assigned the transport minister to discuss with AirAsia potential destinations in the country to connect with neighbouring nations.

This is not the first time Fernandes has expressed his interest in the Thai market. Previously, he urged the government to promote Don Mueang as the hub for low-cost carriers and also to lower its international airport tax from Bt700 to Bt250-Bt300, after Kuala Lumpur made a similar move.

Malaysia has opened an airport terminal specifically for low-cost carriers, and its international rate works out to about Bt250. However, Fernandes insisted there was no problem with having two hubs for low-cost airlines in the region.

Meanwhile, Deputy Transport Minister Prin Suvanadat has ordered Aeronautical Radio of Thailand (Aerothai) to seek ways to enable much more frequent takeoffs and landings at Don Meuang and Suvarnabhumi.

The ministry also asked the state agency to ask charter operators to schedule their flights outside of peak hours at the two Bangkok airports to reduce congestion.

Aerothai president Prajak Sajjasophon said he would talk with airlines next week, including budget airlines, about their five-year marketing strategies to enable the state agency to draw up air-traffic management plans to accommodate their strategies.

He said Aerothai would take four months to finish adjusting flight schedules to boost the capacity of the Bangkok airports.

Tassapon Bijleveld, CEO of Thai AirAsia, has said that while there are more than 20 low-cost carriers in the region, only a few are playing a rising role so far.

-- The Nation 2013-02-14

[Lingba]

well why not..Thailand is the Hub of all hubs anyway..its only fitting

[geriatrickid]

No. Air Asia is not a contributing airline. The push to a "hub" is just another way of obtaining a handout.

Thai Airways, Bangkok Airways and Nok Air all have their primary servicing and provisioning in Thailand. These airlines make a more pronounced contribution to the economy of Thailand and to Thai society in general than does Air Asia. Tony Fernandes and company are not paying taxes in Thailand in the same manner as the 3 Thai airlines are. IMO Air Asia engages in predatory pricing and does not mmaintain the same levels of customer service as do the other 3 and should in no way be aided and abetted in its business goals.

[ginjag]

No. Air Asia is not a contributing airline. The push to a "hub" is just another way of obtaining a handout.

Thai Airways, Bangkok Airways and Nok Air all have their primary servicing and provisioning in Thailand. These airlines make a more pronounced contribution to the economy of Thailand and to Thai society in general than does Air Asia. Tony Fernandes and company are not paying taxes in Thailand in the same manner as the 3 Thai airlines are. IMO Air Asia engages in predatory pricing and does not mmaintain the same levels of customer service as do the other 3 and should in no way be aided and abetted in its business goals.

Expected reply from You, If Air Asia does little to contribute to Thailand/Society-then back it up with the official contribution it does make??? You must be off your rocker to suggest, this airline has nothing to offer here. What does NOK give the customer that Air Asia doesn't ??? Bkk Airways is decent but Way overpriced as is Thai Airways. Hasn't the government got a big slice of Thai Airways,???? with you being so Pro government no matter what it does your comments are no different to most of your posts.

[chooka]

HUB day again...

Next week Thailand to establish the HUB of the Kangaroo.

Edited February 14, 2013 by chooka

[DocN]

HUB day again...

Next week Thailand to establish the HUB of the Kangaroo.

Every day is HUB- day!

[wdr]

One year has 365 day's. How many "Hub's" they create per year? When they will run out of "Hub's and what will follow as replacement for "Hub's" ?

[hellodolly]

No. Air Asia is not a contributing airline. The push to a "hub" is just another way of obtaining a handout.

Thai Airways, Bangkok Airways and Nok Air all have their primary servicing and provisioning in Thailand. These airlines make a more pronounced contribution to the economy of Thailand and to Thai society in general than does Air Asia. Tony Fernandes and company are not paying taxes in Thailand in the same manner as the 3 Thai airlines are. IMO Air Asia engages in predatory pricing and does not mmaintain the same levels of customer service as do the other 3 and should in no way be aided and abetted in its business goals.

Expected reply from You, If Air Asia does little to contribute to Thailand/Society-then back it up with the official contribution it does make??? You must be off your rocker to suggest, this airline has nothing to offer here. What does NOK give the customer that Air Asia doesn't ??? Bkk Airways is decent but Way overpriced as is Thai Airways. Hasn't the government got a big slice of Thai Airways,???? with you being so Pro government no matter what it does your comments are no different to most of your posts.

Can't say as I am all that knowledable but GK has some really good points here. You on the other hand are basing your comments n the price of the flight. Been quite a while since I flew NOK but when I did there service beat the crap out of Air Asia.

the last time I flew Air Asia I was in a bad way I needed a wheel chair and so notified them when I purchased the ticket. Upon arrival in Bangkok I was notified that there would be a half hour wait.

My back packing days are over now I think about myself instead of cost.

[madmitch]

Bangkok (now Don Mueang) has been a regional hub for Thai Air Asia for some time.

Phuket was designated as a hub some time ago, with international flights to Bali, Medan, Hong Kong, Jakarta, Hi Chi Minh and a few others. Many of these routes are no longer available.

The problem is that is these routes do not make a significant profit, Air Asia just pull the plug, leaving booked passengers with no flights, or an alternative, unsatisfactory, route.

And despite Tony Fernandes's good intentions, they'll do the same again at these other new hubs (if the project gets off the ground that is).

[Theboy]

No. Air Asia is not a contributing airline. The push to a "hub" is just another way of obtaining a handout.

Thai Airways, Bangkok Airways and Nok Air all have their primary servicing and provisioning in Thailand. These airlines make a more pronounced contribution to the economy of Thailand and to Thai society in general than does Air Asia. Tony Fernandes and company are not paying taxes in Thailand in the same manner as the 3 Thai airlines are. IMO Air Asia engages in predatory pricing and does not mmaintain the same levels of customer service as do the other 3 and should in no way be aided and abetted in its business goals.

Expected reply from You, If Air Asia does little to contribute to Thailand/Society-then back it up with the official contribution it does make??? You must be off your rocker to suggest, this airline has nothing to offer here. What does NOK give the customer that Air Asia doesn't ??? Bkk Airways is decent but Way overpriced as is Thai Airways. Hasn't the government got a big slice of Thai Airways,???? with you being so Pro government no matter what it does your comments are no different to most of your posts.

Sorry but Air Asia is the pits - Nok gives far better customer service and experience

[webfact]

PM wants Thailand upgraded as regional hub for low-cost airlines

By English News

BANGKOK, Feb 14 – Prime Minister Yingluck Shinawatra wants to boost Thailand as the region's budget airlines hub and vowed to expand airports in tourism provinces to accept more overseas travellers.

She floated the idea in a meeting with Tony Fernandes, AirAsia chief executive officer, and several AirAsia executives who paid a courtesy call on her at Government House on Wednesday.

Mr Fernandes briefly outlined AirAsia’s vision in expanding its investment and aviation service in Thailand and described the kingdom as Asia’s most significant strategic location.

Thailand has a geographical advantage, which will be strengthened when the Southeast Asian region is integrated under the ASEAN Economic Community in 2015, he said, stressing AirAsia’s confidence in using Thailand as its aviation springboard for the region.

The prime minister said the government supports plans to build new airports and upgrade existing ones at tourism destinations and major cities to receive more direct flights from abroad.

She named Chiang Mai, Udon Thani and Krabi as some of the cities with high potential for expansion, adding that Thailand can be a connectivity point for low-cost airlines and other means of transportation.

Passengers who arrive in Thailand can travel further to countries such as China, India, Japan and Korea, or take road and railway trips in the kingdom.

Transport Minister Chadchart Sitthipunt said AirAsia has the potential to expand its aviation business in Thailand including aircraft maintenance, and training for pilots and aviation engineers.

The government has proposed that AirAsia sell Thai food and OTOP grassroots products on board its flights. Mr Chatchart said the airline's executives were interested in such initiatives. (MCOT online news)

-- TNA 2013-02-14

[Payboy]

Hubba Hubba

[rheinwiese]

I'm already getting dizzy with all the hubs, projects, megaprojects, gigaprojects.....bearing the question: where does all the money come from? If I follow correctly foreign investors are not really lining up.

[guruofvinyl]

This airline functions quite well, but is has a quirky web site with defaults that cost you money. And asking a question or fixing a problem shouldn't be avoided but embraced--they have a ways to go to being a respected airline.

[gentman]

Whether we like it or not air asia had and is penetrating into the asia markets aggressively. lucrative markets will see lot of flights introduced and unprofitable sectors will be cut out. That's the fact with any business. I also see lots of small customer complaints cropping up too that need to be improved. But the fact is that their passenger load are increasing every year. Having a hub here will do travelers good.

[terryp]

stopped using AA 4 years ago and my domestic travelling has been vastly improved by using Thai and BkkA....I will never give AA 1 baht of my family’s business they are a company that operates on deceptions, I understand SOME of their fares are cheap but I am not and dont appreciate being treated like a dumb idiot who is always the one to blame when AA make mistakes etc or can’t handle complaint when they damage items or cause me to lose money.

Wonder if he said to YL ..i remember when you father was MY Thaiairasia partner before he did a runner

Also YL comment on Krabi being upgraded for international arrivals????...yes they built a NEW International terminal that is 100% used by .......low cost domestic Airlines????.....I dont think this Gov have any idea, in fact I know they dont

Edited February 14, 2013 by terryp

[h90]

No. Air Asia is not a contributing airline. The push to a "hub" is just another way of obtaining a handout.

Thai Airways, Bangkok Airways and Nok Air all have their primary servicing and provisioning in Thailand. These airlines make a more pronounced contribution to the economy of Thailand and to Thai society in general than does Air Asia. Tony Fernandes and company are not paying taxes in Thailand in the same manner as the 3 Thai airlines are. IMO Air Asia engages in predatory pricing and does not mmaintain the same levels of customer service as do the other 3 and should in no way be aided and abetted in its business goals.

yes but as Thaksin has major shares at Air Asia they will get some handouts.

[geriatrickid]

Whether we like it or not air asia had and is penetrating into the asia markets aggressively. lucrative markets will see lot of flights introduced and unprofitable sectors will be cut out. That's the fact with any business. I also see lots of small customer complaints cropping up too that need to be improved. But the fact is that their passenger load are increasing every year. Having a hub here will do travelers good.

Subjective opinion. However, competition is good, and on that I think we agree.

Unfortunately, here's the problem with some of the LCC business models: They actively undercut the established carriers on some routes so as to force the other carriers to abandon the route, thereby creating a quasi monopoly. This is what has been done in North America, and upon which Mr. Fernandes has based a part of his business model.

The reason why TG has maintained its service on several unprofitable routes, albeit now through Smile, is that those smaller airports and cities served, need air service. Air Asia would not service those airports with the same frequencies or pricing unless Nok, and TG were in the picture.. TG and to a lesser extent Nok serve a national purpose of keeping some cities served. Without air service, business development is made difficult.

TG, NOK, and Bangkok Airways have aviation service centers in Thailand and TG's operations are an important part of Thailand's aviation sector. Thai Airways service depots are where alot of kids get their start in aviation mechanics and skilled trades. There is a quasi apprenticeship program with several of the trade schools and this is something Air Asia does not do. Air Asia does its major service in the Phillipines and Malaysia. From a national perspective, Air Asia doesn't provide good paying jobs or create a base of skilled labour in Thailand. Sure, if ticket prices were the only thing that mattered, then the Air Asia model would be good for Thailand. However, what is important is that a business that provides good paying jobs to Thai citizens be supported. It is the workers earning the good wages who will spend their money on Thai goods and services.

Part of Air Asia's business strategy is based upon keeping staffing costs as low as possible. Correct me if I am wrong, but Air Asia has some of the lowest wages and most restricted benefit packages in Thailand doesn't it? When you pay low wages, you don't usually attract the best of the best do you? TG gets savaged alot in the forums and often it is justified, but no one ever attacks TG's commitment to safety and , TG is not accused of cutting corners on maintenance. That accusation has been repeatedly leveled at Air Asia. Maybe it is unfounded, but I leave it up to the individual to make the judgement.

Air Asia can get away with business practices in Asia that would earn it serious regulatory problems in the EU, Australia and North America.

Specifically, the manner in which fares are charged, and customer problems are managed. Whatever, TG, Nok or Bangkok Airway's failings are, they provide a level of customer service that greatly exceeds that of Air Asia and the consumer feedback provides evidence of that.

Air Asia's sole purpose is to make as large a profit for its shareholders as possible. Thai Airways and Nok also strive to make a profit, but they also have an additional corprorate goal of providing access to aviation services to all of Thailand. That has a major impact on how a company operates. Bangkok Airways has positioned itself as a niche player and if it didn't have its Samui quasi monopoly to subsidize its Thailand operations it would be in serious trouble. Consumers have many options in Thailand and Air Asia services one segment of the flying public, many of which are happy to fly on Air Asia. However, I think the majority of flyers would prefer to have the option of the other three airlines. Hopefully, the government does nothing that will further the expansion of Air Asia because such an expansion would only hurt the companies that have invested in infrastructure and in the people of Thailand.

[geriatrickid]

yes but as Thaksin has major shares at Air Asia they will get some handouts.

Oh is that so? Please support your statement. You are aware that Asia aviation plc the Thai controlling company is a public company right?

As such, there is a legal obligation to disclose the identity of major shareholders. Did you bother looking at the list? Please tell me which one of the majority shareholders is Mr. Thaksin, or one of his companies. Here's the listing of the majority shareholders. Show me I am wrong, and tell me which one is controlled by Thaksin.

FIL Investment Management (Singapore) Ltd.

Templeton Asset Management Ltd.

Nomura Asset Management (Singapore) Ltd.

Goldman Sachs Asset Management International Ltd.

Goldman Sachs Asset Management (Singapore) Pte. Ltd.

FIL Investments International

FIL Investment Management (Hong Kong) Ltd.

SCB Asset Management Co. Ltd.

Degroof Gestion Institutionnelle Luxembourg SA

BTW, in 2012 the company had an IPO and the shares were sold to institutional investors and the public.

[harsh4]

who is air asia's local partner ? any guesses ? :-) the recent attack on nok air make sense now ?

[harsh4]

yes but as Thaksin has major shares at Air Asia they will get some handouts.

Oh is that so? Please support your statement. You are aware that Asia aviation plc the Thai controlling company is a public company right?

As such, there is a legal obligation to disclose the identity of major shareholders. Did you bother looking at the list? Please tell me which one of the majority shareholders is Mr. Thaksin, or one of his companies. Here's the listing of the majority shareholders. Show me I am wrong, and tell me which one is controlled by Thaksin.

FIL Investment Management (Singapore) Ltd.

Templeton Asset Management Ltd.

Nomura Asset Management (Singapore) Ltd.

Goldman Sachs Asset Management International Ltd.

Goldman Sachs Asset Management (Singapore) Pte. Ltd.

FIL Investments International

FIL Investment Management (Hong Kong) Ltd.

SCB Asset Management Co. Ltd.

Degroof Gestion Institutionnelle Luxembourg SA

BTW, in 2012 the company had an IPO and the shares were sold to institutional investors and the public.

and you know all the details of who are the people behind and/or involved with FIL investments in 3 countries ? Any idea who templeton are ? The entry of air asia into thailand and how it unfolded during mr thaksin's premiership is known to everyone who was following the news then... and how nok air was stalled and undercut... I suppose that is the connection to this 'argument'... it may well be that all these companies listed above have no visible or invisible connection to mr thaksin...and all this is purely coincidental... in which case the argument or accusation is not valid...

[huahinjoe]

Time to crackdown on the endless hubs...

[gentman]

However, competition is good, and on that I think we agree.

so what is there to argue?

Is it because AA is not a thai airline?

[Skywalker69]

Is this the first HUB of the year?

[chooka]

No. Air Asia is not a contributing airline. The push to a "hub" is just another way of obtaining a handout.

Thai Airways, Bangkok Airways and Nok Air all have their primary servicing and provisioning in Thailand. These airlines make a more pronounced contribution to the economy of Thailand and to Thai society in general than does Air Asia. Tony Fernandes and company are not paying taxes in Thailand in the same manner as the 3 Thai airlines are. IMO Air Asia engages in predatory pricing and does not mmaintain the same levels of customer service as do the other 3 and should in no way be aided and abetted in its business goals.

Expected reply from You, If Air Asia does little to contribute to Thailand/Society-then back it up with the official contribution it does make??? You must be off your rocker to suggest, this airline has nothing to offer here. What does NOK give the customer that Air Asia doesn't ??? Bkk Airways is decent but Way overpriced as is Thai Airways. Hasn't the government got a big slice of Thai Airways,???? with you being so Pro government no matter what it does your comments are no different to most of your posts.

Sorry but Air Asia is the pits - Nok gives far better customer service and experience

Yes I have seen the calendar. Nok air air is destoying Thailands reputation so will never contribute to this HUB

[chooka]

Is this the first HUB of the year?

Oh god no, You my friend are just becoming complacent. You have settled into the HUB

[hellodolly]

yes but as Thaksin has major shares at Air Asia they will get some handouts.

Oh is that so? Please support your statement. You are aware that Asia aviation plc the Thai controlling company is a public company right?

As such, there is a legal obligation to disclose the identity of major shareholders. Did you bother looking at the list? Please tell me which one of the majority shareholders is Mr. Thaksin, or one of his companies. Here's the listing of the majority shareholders. Show me I am wrong, and tell me which one is controlled by Thaksin.

FIL Investment Management (Singapore) Ltd.

Templeton Asset Management Ltd.

Nomura Asset Management (Singapore) Ltd.

Goldman Sachs Asset Management International Ltd.

Goldman Sachs Asset Management (Singapore) Pte. Ltd.

FIL Investments International

FIL Investment Management (Hong Kong) Ltd.

SCB Asset Management Co. Ltd.

Degroof Gestion Institutionnelle Luxembourg SA

BTW, in 2012 the company had an IPO and the shares were sold to institutional investors and the public.

and you know all the details of who are the people behind and/or involved with FIL investments in 3 countries ? Any idea who templeton are ? The entry of air asia into thailand and how it unfolded during mr thaksin's premiership is known to everyone who was following the news then... and how nok air was stalled and undercut... I suppose that is the connection to this 'argument'... it may well be that all these companies listed above have no visible or invisible connection to mr thaksin...and all this is purely coincidental... in which case the argument or accusation is not valid...

If you have facts state them.

Your poor attempt to darken the picture is nothing but an back door admittance that GK is right.

[CNXBKKMAN]

It was a long time ago but when Thai air Asia started it was illegal for foreigners to own and run a airline in Thailand. With taksin as a investor the laws could be ignored, broken, or rewritten as he was in charge at the time.

[axact]

One year has 365 day's. How many "Hub's" they create per year? When they will run out of "Hub's and what will follow as replacement for "Hub's" ?

Super Hubs of course

[ginjag]

No. Air Asia is not a contributing airline. The push to a "hub" is just another way of obtaining a handout.

Thai Airways, Bangkok Airways and Nok Air all have their primary servicing and provisioning in Thailand. These airlines make a more pronounced contribution to the economy of Thailand and to Thai society in general than does Air Asia. Tony Fernandes and company are not paying taxes in Thailand in the same manner as the 3 Thai airlines are. IMO Air Asia engages in predatory pricing and does not mmaintain the same levels of customer service as do the other 3 and should in no way be aided and abetted in its business goals.

Expected reply from You, If Air Asia does little to contribute to Thailand/Society-then back it up with the official contribution it does make??? You must be off your rocker to suggest, this airline has nothing to offer here. What does NOK give the customer that Air Asia doesn't ??? Bkk Airways is decent but Way overpriced as is Thai Airways. Hasn't the government got a big slice of Thai Airways,???? with you being so Pro government no matter what it does your comments are no different to most of your posts.

Can't say as I am all that knowledable but GK has some really good points here. You on the other hand are basing your comments n the price of the flight. Been quite a while since I flew NOK but when I did there service beat the crap out of Air Asia.

the last time I flew Air Asia I was in a bad way I needed a wheel chair and so notified them when I purchased the ticket. Upon arrival in Bangkok I was notified that there would be a half hour wait.

My back packing days are over now I think about myself instead of cost.

H.D. So me on the other hand had no good points ??? I did mention price BUT why did you pick on only that part ??

You had a foul experience with A A. sorry about that, but I have flown all, I have had countless bad experiences with Thai over 30 years, and some fantastic trips with them, but I was going on averages.

Granted GK had some valed points, BUT they are always on the side of anything Thai rather than seeing the whole pic.,

mentioned A.A. doesn;t pay taxes here, so on that note Fuel, workforce, landing costs,Don Muang usage, it's general service, ME thinks they do contribute very much. I think of everything personal and money, and being honest in the last 3 years I have not had a late or BAD flight with A.A. so I must have been so so lucky.