Page 29 - AAA SEPTEMBER - OCTOBER 2015 Online Magazine

FEATURE AIRLINES

Despite their success in increasing from spring 2016 at the Chubu Centrair
passenger traffic in the region and placing International Airport in Aichi prefecture.
large orders for aircraft, profitability for The initial flights will be to Shin-Chitose
both full service carriers and LCCs has Airport in Sapporo, Sendai Airport in
remained a worry. However, the fall in Sendai and Taiwan Taoyuan International
fuel prices, coupled with the induction Airport in Taipei. AirAsia Group CEO Tony
of new generation jetliners that are 10- Fernandes said, “We are very excited to be
15 percent more fuel efficient than their back in Japan. We have fantastic partners
predecessors, are likely to improve the here and we are united in the vision to
profitability of Asian LCCs. According to change the way people travel in Japan.
IATA figures as of September, the average Centrair Airport is a fantastic base and
fuel price for 2015 is expected to be $ with our new routes, we look forward not
70.3/barrel, impacting airlines worldwide only to enable the Japanese to enjoy our
with a fuel bill for $ 85.2 billion. The direct destinations but to connect them to
Asia and Oceania region account for 22 the rest of Asia and beyond.” W i t h
percent of all consumption of jet fuel the addition of Japan, Air Asia now has
and as of September 18th, costed $ 60 operations in five other countries including
per barrel, a reduction of 46.9 percent Malaysia, Indonesia, Thailand, Philippines
compared to last year. and India. In another milestone, the
airline carried its 300 millionth passenger
Air Asia in August this year. It had crossed 100
Malaysian LCC Air Asia has come a long million passengers in October 2010 and
way since it commenced operations in notched up its 200 millionth passenger in
2001 with 2 ageing aircraft, after being September 2013.
picked up from then owner DRB-Hicom, Things however, appear less than
for a token payment of 25 cents (MYR 1) rosy for Asia’s largest LCC after a report
and saddled with $ 11 million (MYR 40 by Hong Kong-based firm GMT Research
million) of debt. The month of October saw questioned the airline’s accounting
Air Asia subsidiary, AirAsia Japan receive practices. Air Asia’s market capitalization
its Air Operator’s Certificate from the is now lower by almost 40 percent
Japanese Ministry of Land, Infrastructure, compared to last year. GMT Research
Transport and Tourism in October. Air Asia alleges that profits had been inflated
Japan will commence domestic operations by 39 percent since 2009 and that Air

ABOVE: Air Asia has more than
304 A320neos on order. The new
fuel-efficient single aisle jetliner
will deliver higher profits to
Asia’s largest LCC

RIGhT: Vistara, the joint venture
between Tata Sons Limited and
Singapore Airlines Limited (SIA)
has found the going tough with
its premium service offering.
It will have nine A320neos
operational by December 2015
WWW.ASIANAIRLINES-AIRPORTS.COM SEPTEMBER / OCTOBER 2015 ASIAN AIRLINES & AIRPORTS 29