Let's snook 'em

Monday, January 08, 2007

AirAsia X (Part 2)

AirAsia X continues to receive well planned publicity in the newspapers since its launch on Friday. X is the key word now as highlighted by this article, X-citing deal for air travellers. So the new caption is, "Now, Everyone Can Fly Extra-Long" instead of my original guess of "Now, Everyone Can Really Fly". It will only cost RM9.99 to fly to Manchester. I am sure RM 9.99 tickets are limited and you will still have to pay for food and on-flight entertainment. Sir Richard Branson didn't attend the press conference. Instead, Datuk Tony Fernandes had to provide the entertainment to the guests, X-tra witty Fernandes has guests in stitches.

The government has also provided full support to AirAsia X. Both the Transport Minister and Tourism Minister officially launched AirAsia X,
LCCT will be expanded to become global hub. MAB has only 6 months to complete the expansion for LCCT to cater for the wide body jets. This shouldn't pose any problem since LCCT was built in a record time in the first place.

Besides these articles that appeared in The Star on Saturday, The Star has also published an interview with Datuk Tony Fernandes on the same day,
Going the distance and To hell and back See what I meant by a well organized publicity campaign for AirAsia X. I do not know much about the aviation industry but I still don't buy the idea of separating the 8 hours haul from the 4 hours haul. Yes, 8 hours haul will be managed by a totally different team and with a name extension but ultimately, they are operating with the same business model and cost here. Frankly speaking, I think Datuk Tony is trying to maximize his milking the cow by creating a separate entity. On other hand, if AirAsia X fails, it won't totally crash the mother ship. After all, there were successful no-frills airlines in the other continents before the creation of AirAsia. No-frills long haul flights have yet to be proven profitable and I am sure Datuk Tony aims to be the first in the world.

The big brother is unfazed by the launch of AirAsia X and instead welcomes competition in this sector,
There’s enough for everyone, says MAS. Perhaps Datuk Tony is correct. MAS might actually be more profitable with competition breathing down its neck. Now wait a minute, if that is true, the government should break the monopoly in all the other industries. But alas, it is easier said than done. I think we don't mind a brother of the same origin to share the pie but I doubt we would do the same to foreigners.

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