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Old 25th October 2007, 12:08 PM   #1
KeithMEL
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Default Air Asia secures approval for SIN-KUL

http://investing.reuters.co.uk/news/...A-UPDATE-1.XML

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KUALA LUMPUR, Oct 24 (Reuters) - Malaysia's cabinet has given approval in principle to allow budget airline AirAsia Bhd (AIRA.KL: Quote, Profile , Research) to start flights to neighbouring Singapore...

In additional to Kuala Lumpur, the twice-daily flights would link Singapore to the Malaysian cities of Penang, Kota Kinabalu and Kuching, the source said.
I smell a price war.
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Old 25th October 2007, 12:31 PM   #2
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Okay, so the Malaysian government has given approval. What about Singapore? Have we responded? If AK is to fly into SIN, it would probably use the BT right?. With more day flights, this would definietly revive the ghost town of BT.
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Old 25th October 2007, 01:15 PM   #3
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Singapore has given permission long time ago. Tiger apparently has also been given green lights to fly to KL twice a day, same as AK. Both flight will be during off peak time. FD has been using T1, instead of budget terminals, I wonder if AK will follow suit or goes to budget terminals.

With AK flying to SIN, the ones that should worry shouldn't be SQ, but those bus operators across the causeway.
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Old 25th October 2007, 03:09 PM   #4
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Quote:
Originally Posted by singaporu_kooku View Post
Singapore has given permission long time ago. Tiger apparently has also been given green lights to fly to KL twice a day, same as AK. Both flight will be during off peak time. FD has been using T1, instead of budget terminals, I wonder if AK will follow suit or goes to budget terminals.

With AK flying to SIN, the ones that should worry shouldn't be SQ, but those bus operators across the causeway.
True, SQ certainly do not have to worry. However, MH might feel a little threathen.
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Old 26th October 2007, 07:28 PM   #5
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Excellent news, this move will definitely boost AirAsiaX's plans to be a regional hub for long haul low-cost travel! Finally! Now MH really needs to beef up!
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Old 26th October 2007, 08:49 PM   #6
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This is good news, competition is on the way. Hopefully cheaper air fares in future...
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Old 27th October 2007, 01:26 AM   #7
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believed Tiger will feel the heat too - as air asia have far more flights to regional cities like 3 times a day to macau - and soon in jan to guangzhou and shenzhen - both tiger's desyinations too - and air asia promotion fares are much cheaper than tiger and in ringgit too - so with air asia doing 2 shuttle a day - it will offer connections to their regional flights and perhaps air asia will come up with better fares for onward transfer from KLIA LCC to its regional destinations. Further next yr in Jan, it will fly to HK too and already be launching its flight to aussie gold coast in november - as their leased A330 plane has been in KLIA for sometime now.
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Old 27th October 2007, 01:39 AM   #8
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I believe Chinese passsengers will still choose to fly Tiger over Air Asia due to communication barrier. I believe Tiger has more Chinese FA than Air Asia.
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Old 27th October 2007, 09:40 AM   #9
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Quote:
Originally Posted by nykelaz View Post
I believe Chinese passsengers will still choose to fly Tiger over Air Asia due to communication barrier. I believe Tiger has more Chinese FA than Air Asia.
That's strange. I thought price was always the deciding factor in LCC-dom.
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Old 27th October 2007, 02:48 PM   #10
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just read the online Star - and the malaysian transport minister said they only allow 2 air asia flights A WEEK - and not even a twice daily - so its not really opening up the KUL-SIN sector. Not unless its 2 times daily flights then we will see some lower air fares even from LCCs and also from SQ n MH - but until then the 2 major carriers will not even blink to reduce the fares as its the world's most expensive 35 min flight and both carriers must be making tons of money all these years. Imagine the return fare with taxes is S$420 - for such a short 35 min flight and if one compares this fare - its the highest per revenue km. Even SQ flights from SIN HKG, n parts of china is just marginally more than to KL but those flights are from 3.5 hrs and above.
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Old 29th October 2007, 11:40 AM   #11
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This sector is interesting. While airlines move down-market, the buses go up-market.

Transtar now offers a 1-1 seating on the bus
http://www.transtar.com.sg/firstclass.php
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Old 29th October 2007, 01:03 PM   #12
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well if the this air sector truly opens up in 2009 under Asean - and LCCs are allowed to fly even 3 times on a Daily basis - then its likely that even coaches like transtar 1st class n their solitaire coach prices would also have to come down.
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