bakedbean

I think it's sabre rattling It would need an awful lot of infrastructure not even counting the fuel conundrum. I'm a retired layabout and no longer in the petroleum industry but seems to me it would need some kind of fuel pipeline to accommodate a lot of big commercial planes going in and out. Where's the nearest refinery? Can Langkawi accommodate the world's biggest fuel tankers? I doubt it.

What about hospitals, hotels? What if there's an emergency situation?

Langkawi is great for holidays but there's no road bridge to anywhere.

InVinoVeritas

Very true, but Air Asia have lots-a-dosh and Langkawi is the long-lost, tax-free Malaysian paradise. Could be just what everyone needs, especially foot-loose, fancy free expats. WDYT?

SushiFan

"He (Air Asia's Tan Sri Tony Fernandes) also said that Hong Kong and Guangzhou would be the first two destinations that AirAsia would fly to from Langkawi airport."

International thus means China versus Langkawi. I am not sure whether that meets your definition of "foot-loose, fancy free expats".

InVinoVeritas

Well, for this particular foot-loose, fancy-free expat they would need a BKK-LGK service too.

Davita

I'm not so sure Air Asia has lots-a-dosh....

(http://www.themalaymailonline.com/ma...sias-budgetBHD)

It hasn't done much better in the last 2 Qtrs either. I'd certainly not buy their shares and that's why Fernandes says he's trying to privately buy-back the company. The share price jumped 8% on that news...typical stock manipulation.

Air Asia Indonesia (AI) just last week (30 Sep 2015) nearly lost its operating licence as it has been in negative equity for too long, according to Indonesian regulators. Somehow it 'recovered' by finding money by selling preferential shares...Right...
The 8% rise in (BHD) 'I'll bet' was sold by executives and went straight to bolster AI's preferential shareholders.
Next we might see the RI regulator check ownership of AI as only 49% is allowed to be owned by foreigners...well see...

meinkl

Baseing 5 aircraft there hardly consitutes moving their operating base, but is good move, as there are already a lot of flights in and out of Langkawi, so some doing overnight turnarounds seems logical, and brings more jobs to the airport.
Having a few direct flights from there to/from regional (tourist collecting) destinations seems logical to gain custom, and thus makes it a regional hub... but not an operating base, which would require a lot of expansion. investment and building at the airport which is already near full capacity.
All is good news for Langkawi and also slightly relieves KLIA2 of a few transit customers so as to lighten the load there.
However most of this is spin doctoring to gain media interest, at which Air Asia is very good.

Davita

For those that may not remember the demise of Laker Airways may I copy/paste from wiki the principle reason they went bankrupt....my own coloured emphases...

'In 1982, the company went bankrupt, owing over £250 million. The airline made its last flight on 5 February 1982, the day it went bankrupt.
There were numerous reasons for what was termed the biggest corporate failure in Britain at the time:
Laker Airways had expanded too quickly in the late 1970s and early 1980s when it took delivery of a large fleet of brand-new DC-10 and A300 widebodies, which had been bought with US funds borrowed at too high a rate of interest. Subsequent devaluations of sterling meant increased costs in servicing the debt.
The company was undercapitalised and did not enjoy the financial backup of any significant assets, which seriously undermined its ability to withstand a concerted and prolonged campaign to put it out of business at the depth of the 1981–82 recession at the hands of its financially stronger competitors.'

Sound familiar....

meinkl

However.. in the days of Freddie there were FAR less people flying other than for company funded business. The "cheap flight to the sun" was unheard of and so it was a bit of a cart and horse situation... people started flying more when they could get a cheap flight.

Virgin tried a slightly different model and now look at them. Tony is emulating Richard rather than Freddie, and at a time and place when regional travel is far more marketable.

Before Tony started there was only MAS out of Subang to get you to parts of S.E.A.

However i do think getting Air Asia Indonesia was not a good move. Thailand yes, but not Indonesian aviation.

Davita

odd you say that because this is what Fernandes said 4 years ago...
As Indonesia booms, AirAsia to move regional office to Jakarta - The Malaysian Insider

is this move to Langkawi deja vu?

meinkl

4 years is a long time in S.E.Asian aviation terms.... whatever makes column inches also retains brand awareness. That's what Branson did.. if people keep talking (well) about a brand then it will likely be their first choice when purchasing.

Davita

And if they talk about Queen Park Rangers, and their demotion, It will likely be their last choice when purchasing.
I notice all reference to them have been removed from the A/C. White Coffee seems to be the branding advertising.

Indonesian domestic airlines suffer from overcapacity at present and the Regulator has fixed the lower end seat costs so airlines are obliged to only offer the same (low) fares. In the past Airlines could offer cheap to free seats to fill the A/C and hopefully make revenue back with brand loyalty, but typical gov't interference has eliminated that availability.

bakedbean

Saw on a Facebook link from Penang Global Tourism that Air Asia is starting up a new route... Penang to Ho Chi Minh, 4 times a week. They're taking bookings as of now. The route starts up on January 25th 2016.

InVinoVeritas

That IS good news BB, somewhere else to nip off to. Does anyone know if the haze reached that far?

bakedbean

You've got itchy feet, haven't you?

Have to say I didn't care for HCM much. A bit too frantic... and crossing the roads with all those bikes But, as always, it's Horses for Courses. A lot of folks love it there.

InVinoVeritas

Better than itchy eyes