President Barack Obama Launching AirAsia X Flight To Honolulu?

Hopefully when AirAsia goes to Honolulu & Pattaya in a few months time, it will not be forced to use aerobridge as it is not part of its business model.

Hopefully when AirAsia goes to Honolulu & Pattaya in a few months time, it will not be forced to use aerobridge as it is not part of its business model. AirAsia will only use mobile stairs as shown in the picture. Honolulu & Pattaya airports please get ready to accommodate.

 

Updates @ 4:45 pm on 20-5-2015:  Another AirAsia’s route expansion to Kaoshiung, Taiwan, commencing on 16-7-2015. It looks like AirAsia is on an expansion spree. Congratulation! HERE.

 Updates @ 2:35 pm on 20-5-2015:  AirAsia had now denied a report that it is selling its Big Loyalty Programe, HERE. Congratulations! 

Of late, we hear so much of AirAsia’s great expansion plans.  As Malaysians, we can’t help but to feel very proud about it because no other airlines in the world could match its fantastic business model and achievements without any help from the government – so we were told.

 

Now Everyone Can Fly MAS With Low Cost Fares

“Now Everyone Can Fly MAS With Low Cost Fares”. Thanks to AJ, who is no longer the CEO of MAS but promoted as a member of its Board of Directors.

 

On 2-12-2014 Tony Fernandes, CEO of AAirAsia Group, had announced the plan to resume flight to London, which it ditched in 2012 and poor MAS under the stewardship of En Ahmad Jauhari Yahya (aka AJ) had to pick up the pieces.  MAS was made to ferry about 35,000 AirAsia X passengers to Mumbai, Paris, London and Australia at below market fares, HERE.

 

The celebration after Tony Fernades/AirAsia signed up for the order of 100 Airbus A/330

The celebration after Tony Fernandes/AirAsia signed up for the order of 100 Airbus A/330

 

On 13-12-2012 Airbus announced that AirAsia has ordered 100 airbus A320s. It quoted Tony Fernandes to have said that

We have three gold mines in Malaysia, Thailand and Indonesia. On the other hand, Philippines and Japan have enormous potential growth. With these added aircraft, it goes in-line with our strategy to further build our already extensive network through new routes and added frequencies and allow AirAsia to maintain its market leadership.”  Please read HERE.

 

In another report report on, 2-2-2015 AirAsia X decided to defer four of the eight A330-300 deliveries that were initially slated for 2016 and three of the eight deliveries that were slated for 2017.  Two of these aircraft have been deferred until 2018 while the other five have been converted to A330-900neo orders, raising the group’s commitment for the new type to 55 aircraft. AirAsia X expects to begin taking the A330-900neo in late 2018 and take all 55 by the end of 2026, HERE.  What had happened to the remaining 45 aircraft that were ordered in 2012?

 

Ms BK Sidhu, the editor of Star Business, who is known to have published an article to mislead the investing public that the IPO of AirAsia X shares will be over-subscribed by 5 to 6 time.

Ms BK Sidhu, the editor of Star Business & de facto AirAsia promoter, had published an article to mislead the investing public that the IPO of AirAsia X shares will be over-subscribed by 5 to 6 times.

The AirAsia X IPO

In mid 2013 AirAsia X launched its IPO and BK Sidhu, the Editor of Business Star and de facto AirAsia’s promoter/corporate communication, wrote and published a most misleading news that the shares of AirAsia X IPO will be over-subscribed by 5 to 6 times. Of course, BK Sidhu quoted an unidentified source, who could be her ultimate “boss”.

 

The AirAsia IPO share price was fixed at RM1.45 per share. Upon listing the share price was RM1.25.

 

It was most unfortunate for the shameless BK Sidhu, the respond for the AirAsia X IPO turned out to be very bad. It was so bad that Maybank Investment had to pump in almost RM40 million to stabilise the AirAsia X IPO share price, HERE.

 

On 19-5-2015 (two years later) AirAsia X share price stood at RM 0.275 per share, HERE.

 

The Dream Honolulu Airport

On 6-4-2015 AirAsia announced that from November 1, 2015 AirAsia will fly four time weekly to Honolulu, HERE.

 

President Barack Obama

President Barack Obama

 

Rumours have it that certain personality is working on overdrive to lobby for President Barack Obama to launch the AirAsia X inaugural flight to Honolulu in late October, 2015.  We all hope that such rummours will materialise by October / November 2015.

 

President Vladimir Putin of Russia (left) & President Xi Jinping of China should also be invited.

President Vladimir Putin of Russia (left) & President Xi Jinping of China should also be invited.

 

To make this AirAsia X Honolulu flight a world event of the year, the President of China Mr Xi Jinping and/or President of Russia Vladimir Putin should also be invited to launch this low cost flight to Honolulu.  Their presence will be icing on the cake. Of course, we all would like to believe that such rumours are true and it will be another feather on the hat for Tony Fernandes, AirAsia and more importantly, for Malaysia.

 

Just imagine, a low cost airline like AirAsia X could secure three most powerful world leaders to grace the occasion.  It will be the proudest moment not only for the best CEO of the year, Tony Fernandes, but Malaysia. However, if the other two world leaders are not going to be invited then President Barrack Obama will be more than sufficient.  We await patiently.

 

The Expansion To Pattaya

On 14-5-2015 AirAsia also announced another expansion plan that from July 16, 2015 AirAsia will fly four time weekly from KL to Pataya, HERE.

 

The Disposal Of Shares In AirAsia & Related Companies By Founders

 

The famous Tony Fernandes, CEO of AirAsia Group & co-owner of the famous English football club QPR.

The famous Tony Fernandes, CEO of AirAsia Group & co-owner of the famous English football club QPR.

 

On 16-7-2014 Datuk Seri Kalimullah Masheerul disposed of his 6,767,971 shares in AirAsia, HERE.

 

In December 2014 it was reported that Tony Fernandes sold 944,000 shares in AirAsia, just a few days before the crashed of AirAsia flight QZ8501, HERE.

 

On 19-1-2015 AirAsia X Bhd’s non-executive director and former New Straits Times group editor-in-chief Datuk Seri Kalimullah Masheerul has sold 4.61 million shares in the loss-making long haul budget carrier, which amounted to 0.19% of AirAsia X’s share base, HERE.

 

The Losses

On 27-4-2015 AirAsia losses amounted to RM429 million for the last three months of 2015 HERE.

 

On 24-2-2015 AirAsia X posted losses amounted to RM529 million, HERE.

 

Malaysia’s AirAsia X Bhd will cut flights on unprofitable routes, reorganize staff and defer some aircraft deliveries to turn around the loss-making long-haul budget carrier, said the airline’s acting chief executive.

“Capacity reduction and cost-cutting within the organization would be two strategies this year,” Benyamin Ismail, the acting Chief Executive Officer of AirAsia X said in a telephone interview. Squeezed by intense competition in Southeast Asia’s crowded aviation business, the airline has lost money for the last five quarters, HERE.

 

Disposal Of Assets

On 20-3-2015 it was reported that AirAsia Bhd will sell 11 aircraft, worth US$271 million (RM1 billion), says group chief executive officer Tan Sri Tony Fernandes. He quashed talks that the airline was looking to raise equity, HERE.

 

On 19-5-2015 it was reported that AirAsia BIG, the loyalty programme owned by Asia’s biggest budget airline and Malaysia’s Tune Group, could raise about US$100 million by selling about a 30% stake, HERE.

 

AirAsia Group’s Passenger Service Charge (PSC)/Airport Tax & Other Debts To The Tune of  RM200 million

It boggles the minds that with the above big expansion plans in store for the next few months, market rumours have it AirAsia Group of Companies is owing Malaysia Airport Holding Bhd (MAHB) to the tune of at least RM200 million for Passenger Service Charge (PSC), which was previous called Airport Tax, and other debts.

 

PSC is paid in advance by passengers when they purchase the flight tickets. All airlines collect PSC on behalf of MAHB and the collected PSC will be handed over in full to MAHB within a stipulated time. Therefore, there is no valid reason for AirAsia to have owed more than RM200 million in PSC and other debts to MAHB, HERE.

 

The shareholders of MAHB should question MAHB why it allows AirAsia to chalk so much PSC and other debts and it did not suspend all airport facilities against AirAsia as a mean to recover the said RM200 million PSC and other debts.

 

Approval From Authorities For New Routes

With the publicities on the new routes to Honolulu and Pattaya, it is not known that the said routes have been approved by our Ministry of Transport and the authorities in USA and Thailand.

 

It is the norm that AirAsia will put the tickets on sale before approvals are given like what had happened to its Melbourne – Bali route end of last year, HERE.

 

AirAsia and/or Ministry of Transport should clarify whether formal approvals have been given for the new routes to Honolulu and Pattaya because we do not want to see members of the public had to be put into unnecessary inconveniences and face with the difficulties of refund.  We all know how difficult it is to get a refund from AirAsia. It is just part of its business model.

 

Nevertheless, we await for President Barrack Obama to launch the AirAsia X inaugural flight to Honolulu.

Now Everyone Can Wait For This Auspicious Occasion.

 

 

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15 thoughts on “President Barack Obama Launching AirAsia X Flight To Honolulu?

  1. Jamaludin

    Another publicity stance to pop up the ailing AirAsia filled with debts. No wonder it is owing RM200 million PSC to MAHB. RM200 mill is a free of interest fund to be used as operational cost.

    BK Sidhu, what had happened to AirAsia X where you had said that its IPO will be over subscribed by 6 times and now its share price stands at 27 Sen. Another con job by you to help with the publicity.

    Reply
  2. Franky

    If Obama were to come to launch this low caste flight to Honolulu then his reputation as the President of America will be most questionable. I don’t think that the President and his advisers will be that stupid to endorse these companies that made losses and owed PSC. Let us wait and see what game they are playing.

    Reply
  3. Lam

    It is typical of the Pariah. It all about hypes. He still think that people still believe in him. No more. Only idiots will trust him. AirAsia and AirAsia X are burdened with huge debts. PSC debt is one of them. The ships are sinking that’s why he needed to come out with his expansion bullshits. It is near game over. The Pariah’s outfits are collapsing one by one.

    Reply
  4. Roslan

    You called that expansion? We all know that they are having big financial problems. All the expansions are just diversion to fool us. I rest my case.

    Reply
  5. Desperado

    President Obama must be desperate to launch a low cost flight or any other flight to any part of USA. It is even more stupid of Obama Administration to deal with loss making low caste airline that owe PSC debt.

    Reply
  6. Rahim

    What are the idiots in MAHB doing about the Rm200 million PSC debt?

    Obama coming to launch a low cost airline flight, he got to be out his his minds. Then his advisers must be of the same level as Najib’s advisers.

    Reply
  7. Jay

    Trying to get Obama coming is another publicity exercise. When the ships are sinking, the captain is trying all the bullshits to fool Malaysians and the idiotic Ministry of Transport. Beware of all the expansion plans!

    Reply
    1. Anonymous

      We know Obama & his advisers are not stupid to be fooled by the pariah but he is hoping against hope to save his sinking ships.

      The pariah is running out of ideas and avenue to bullshit his way around. The end is very near. Just think about an airline owing RM200 of PSC, which are paid in advance by passengers and not the low caste airline. Why it is owing the PSC? CAsh flow must be tight!!

      Reply
  8. Con Artist

    May be Tony or AirAsia X should ask Obama to grant a subsidy of RM200 million to pay the PSC debt otherwise it will invite Putin to launch the flight to Hawaii. Obama or its advisors must be out of their minds to allow Obama to launch a low caste airline for the sake of publicities which are badly needed by that low caste to keep Airasia X afloat.

    Reply
  9. The Rithmatist

    According to the Honolulu Star Advertiser paper, AirAsia X has lodged an application with the US DOT (Department of Transportation) to operate 4 flights a week on the KL-Honolulu sector (with a refuelling stop in Osaka), starting 1st November 2015.

    If there is an “Open Skies” agreement between Malaysia and the US, such flights are permitted, as long as appropriate notices are lodged with the regulators in both countries.

    Hawaii is President Obama’s home state, although his family residence has been in Chicago for many years now.

    How Obama’s name was brought into this subject is a matter for conjecture.

    As for the US DOT, it’s current primary focus is handling complaints by US airlines against the Gulf carriers Emirates, Etihad and Qatar Airways.

    Approving flights from a “miniscule” location like Kuala Lumpur would be handled as a routine matter if there are no objections from US airlines, which there shouldn’t be if the bilateral Open Skies agreement is in force.

    Of course, the fact that no US airline has found it worthwhile to operate flights to KLIA (as compared with, say, Changi Airport) should say a lot about the “lobbying power” of the Malaysian transport authorities!

    Reply
    1. Another Con Job

      It may be a public relation exercise to fly to Honolulu. As had been said by YB, it could not sustain London and Paris flight because of long haul how could it sustain the Honolulu flight. It is just going to be another hype to fool us and the Americans. AirAsia X had sustained losses of about RM700 million and the existing debt is believed to be in the region of RM500 million. Plus the PSC debt with MAHB. Can it fly to Honolulu?

      Reply
      1. The Rithmatist

        AirAsia X has to make a commercial decision on whether it will be profitable to operate flights between KL and Honolulu. Which is as it should be.

        You will note that MAS has stopped flights between KL and US cities, with the exception of Los Angeles. The reason given at the time was that the flights to the US were unprofitable and the load factors unsatisfactory.

        That begs the question how SIA is able to operate multiple weekly flights between Singapore Changi Airport and Houston, Los Angeles, New York and San Francisco, using aircraft like the A380 and the Boeing 777-300ER. Anecdotal evidence suggests that SIA operates these flights with good load factors in the premium and economy cabins.

        As of now, Malaysians wishing to travel to Honolulu will have to transit either in Changi Airport or Tokyo Narita Airport, even with MAS’s Oneworld partners.

        As, too, Malaysians wishing to travel to San Francisco or New York.

  10. Rosli

    Is President Obama going to launch the Honolulu flight of the financially stricken AirAsia X? What a joke!

    If Obama were to launch it then the American Predisent must be desperate for publicity like AirAsia. Obama should also help to pay AirAsia’s PSC debt of about RM200 million then Obama may get publicity in the Star with the help of BK Sidhu.

    Reply

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