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AirAsia to buy Batavia Air for $80 million

By Budget Airline News

Budget airline AirAsia has revealed plans to purchase Indonesian airline Batavia Air for a sum of USD $80 million . This acquisition will help AirAsia compete in Indonesia, the biggest market in Southeast Asia.

The acquisition should be completed by the second quarter of 2013. In accordance with Indonesian ownership laws, AirAsia will own 49% of Batavia Air and the other 51% will be owned by the  Indonesian firm Fersindo.

“The Batavia Air acquisition is a fantastic opportunity for AirAsia to accelerate our growth plans in one of the most exciting aviation markets in Asia and further underlines our belief in the growth potential of Indonesia’s aviation sector,” said Tony Fernandes, the AirAsia Group Chief Executive.

Once the acquisition is complete, Indonesia AirAsia and Batavia Air aim to carry more than 14 million passengers to 42 domestic destinations across Indonesia as well as 12 international destinations.

Thai AirAsia to move to Don Mueang Airport by October 2012

By Budget Airline News

Thai AirAsia has signed an agreement with the Airports of Thailand (AOT) that will have the airline shifting its operations in Bangkok from Suvarnabhumi International Airport to older Don Mueang Airport. The first Thai AirAsia flight out of Don Muaeang Airport is currently scheduled for October 1, 2012.

The AOT has been offering Thailand’s low-cost airlines incentives to move to Don Mueang Airport in an effort to reduce congestion at Suvarnabhumi International Airport which is operating over capacity. Subarnabhumi was designed to handle up to 45 million passengers per year, and in 2011 is estimated to have served 47.9 million.

The AOT is currently in negotiatons with other airlines to shift their operations, and it is likely that other domestic airlines will relocate as well.

AirAsia to establish new base in Jakarta

By Budget Airline News

Budget airline AirAsia has announced it will establish a new base in Jakarta, Indonesia. The proposed name for the new base is AirAsia Asean.

The AirAsia statement read: “It has become abundantly clear to us that as we enter our second decade,… we need to pivot to a wider, regional lens from the first decade’s focus, which was largely domestic. In line with this shift in our focus, we have established a regional base in Jakarta. Called AirAsia Asean, the office will be located far enough, physically as well as psychologically from AsirAsia’s airline offices in each of the countries we operate in.”

AirAsia already has regional bases in Kuala Lumpur, Malaysia, and Bangkok, Thailand. At present, AirAsia maintains a fleet of 18 aircraft at Jakarta’s Soekarno-Hatta International Airport. With the formation of the new base, the number of aircraft and routes are likely to increase as AirAsia tries to seize their share of the rapidly growing Indonesian market.

AirAsia Philippines launches flights to Malaysia

By Budget Airline News

On June 9, 2012, AirAsia Philippines launched daily direct flights from Manila (Clark) to Kuala Lumpur. This is the airline’s first international route since it began operations in March this year.

In a statement, AirAsia Philippines CEO Marianne Hontiveros said: “We want to draw tourists from Malaysia to our amazing beaches and natural wonders. If we are able to draw even a fraction from Malaysia’s 24.5 million tourists, this will impact on our arrival record.”

AirAsia Philippines is a regional branch of AirAsia, the largest budget airline in Asia, and is owned 60% by investors in the Philippines and 40% by Malaysia’s AirAsia International Ltd.

AirAsia Philippines also offers domestic flights from Manila (Clark) to Kalibo, Davao, and Puerto Princesa. Its second international destination will be Hong Kong with service commencing in July 2012.

Thai AirAsia reduces Bangkok – Colombo flights

By Budget Airline News

Thai AirAsia will be reducing the frequency of Bangkok – Colombo flights due to low demand. Effective from June 14, 2012, the low-cost airline will reduce frequency from a daily flight to three flights per week.

The new schedule  for flights from Bangkok, Thailand, to Colombo, Sri Lanka, will be Wednesdays, Fridays, and Sundays.

 

Kuala Lumpur’s new Low-Cost Carrier Terminal to open by April 2013

By Budget Airline News

Malaysian newspapers are reporting that the construction of KLIA2, the planned low-cost carrier terminal at Kuala Lumpur International Airport, is ahead of schedule and should be fully operational by April 2013.

The news was released following a visit by investors to the construction site. The new airport terminal is currently 52% complete and 90 days ahead of schedule.

KLIA2, as the new terminal will be called, is set to be the world’s largest low-cost carrier terminal and have the capacity to handle 45 million passengers per year.

Kuala Lumpur is the base for AirAsia, the largest budget airline in Asia, which operates more than 400 flights per day.

AirAsia Philippines to fly Manila – Hong Kong

By Budget Airline News

AirAsia Philippines has announced it will begin flying from Manila (Clark) to Hong Kong in July 2012. This will be the budget airline’s second international destination, following the launch of flights to Kuala Lumpur on June 9.

AirAsia Philippines, the regional wing of AirAsia, will offer direct daily flights to from Manila (Clark) to Hong Kong.

Marianne Hontiveros, the Air Asia Philippines CEO, made the announcement: “We will fly once daily to Hong Kong in July. This will be our second international destination since we got our AOC in February.”
“We have plans to also fly to Singapore. That’s in the works. We are also looking at Bangkok, South Korea, points in China and Macau. If we can get the Category 2 status lifted, we want to fly to Japan as well,” she added.

The latest information about this new route, including flight times and prices, can be found at www.airasia.com.

AirAsia terminates Kuala Lumpur – Solo flights

By Budget Airline News

AirAsia has announced it will be terminating its route from Kuala Lumpur, Malaysia to Solo, Indonesia, effective from September 2, 2012. Previously, the budget airline operated 7 flights per week on this route.

Customers who have booked flights on this route will be contacted by AirAsia staff and offered the choice of a refund or changing their flight.

A statement from AirAsia read: “The route suspension is in line with AirAsia Group’s business plan to realign and strengthen AirAsia Indonesia’s operations.  More connectivity will be allocated for routes between Kuala Lumpur and other destinations in Indonesia soon.”

AirAsia Japan ticket sales start May 30, flights on August 1

By Budget Airline News

Tickets for new budget airline AirAsia Japan will be available for online sales starting on May 30, 2012. The airline is expected to launch domestic services on August 1, 2012.

AirAsia Japan will be based at Tokyo Narita International Airport and offer domestic flights to Fukuoka, Okinawa, and Sapporo. International operations will begin on October 1, 2012, with flights to Seoul and Busan, South Korea.

Visit www.airasia.com for the latest information.

AirAsia X announces Kuala Lumpur – Beijing route

By Budget Airline News

AirAsia X has announced it will offer direct flights between Kuala Lumpur, Malaysia, and Beijing, China. The new route will begin on June 22, 2012, with four flights per week.

AirAsia rep Kathleen Tan said: “China is a key market for AirAsia X, and our entry into Beijing is another major milestone for us.”

“We are confident travel demand to Beijing will be strong and hope many will take the opportunity to visit Malaysia and use AirAsia as a gateway to the many exotic, far-flung destinations across the region.”

As a result of this new route, AirAsia X will be suspending its route from Kuala Lumpur to Tianjin, China, which is about 100 km from Beijing, effective June 21, 2012.