Qantas threatens Australia to support the Emirates deal

AirDrama: Camel Race now gets ruined by Qantas' rhetoric

Qantas' plays hardball with the Australian Competition and Consumer Commission (ACCC) in its submission that if its deal with Emirates is rejected, it would quit its European network, and focus on profitable routes only.

It all sounds logical, but its attempts to play the nationalist card throws he argument credibility away:

"Under such a scenario Australians will lose the benefit of Qantas operating a strong locally based international network airline. This is not in the national interest."

Didn't Qantas state in its announcement that it is tying up with Emirates in a bid to stem losses? Why is Qantas now saying basically, "approve it, we'll stem some losses, not approve it, we'll stem more losses..."

Did someone really chop the Roo's head off?

Lion into Malaysia - Who is the target?

AirDrama: As Lion enters Malaysia with Malindo, could Air Asia be in
denial that it is the target and continue to slag off Malaysia Airlines?

(Artwork by: Rimanti N)

As Lion Air announced its entry into the Malaysian market yesterday, I do wonder on several things:

• Malindo's Malaysian shareholder is National Aerospace & Defence Industries, a state owned enterprise. They don't just go and set up companies with foreign partners just to compete with local fellow state owned enterprises do they? Just who is Malindo targetting? State owned Malaysia Airlines + Firefly because the politicians are frustrated at 'lack of progress' there? Or Air Asia (OK, did Tony Fernandes peeve off some politicians?)?
• As Air Asia becomes stronger regionally, Tony will have to spend less time on the home turf Malaysia... is this peeving some politicians off? Elections are coming up in Malaysia, no?
• Malindo's announcement yesterday, was attended by Malaysian Prime Minister Najib. Elections are coming up, and Tony Fernandes has run off to Jakarta... is Najib peeved off?
• Within 24 hours of the Malindo Airways announcement, Lion Air opened its Bandung-Kuala Lumpur route, head-to-head with Air Asia group. Timing is rather suspicious.

Air Asia's Tony Fernandes was quick to tweet:

"I think Malindo is more problematic for Malaysian Airlines not AirAsia. We have very strong position in Malaysia and are really a regional company."

While I generally agree to that tweet, I wonder, perhaps his habitual slagging off of Malaysian Airlines is peeving the Malaysian politicians off?

Coincidentally, today, Tony Fernandes' other slagging victim, Tiger Airways, announced better financial results. Tiger itself is trying to set up bases around the region. As the big cats grow, could their feline ambitions be aimed at Air Asia while Tony's confidence elude Air Asia's minds from the possibility? I guess I have to wait until Tony starts slagging off Jetstar (if he has, I must have missed it!) to figure it out.

Although there is one thing I agree with Tony Fernandes regarding Malindo Air:

"Why is the airline not called Lion Air Malaysian. Strange"

Express Air new livery

Eastern Indonesian niche carrier Expressair appears to be adding another 737-200 to its fleet, this time with a new livery. The aircraft is identified as PK-TXK, previously PK-CJJ with Sriwijaya Air, and is currently undergoing an overhaul at AeroNusantara Indonesia (ANI).

Expressair currently operates 737-200s, 737-300s, 737-500s, and Do-328s.

Qantas stemming losses by throwing parties!

AirDrama: The Qantas continues like a soap opera...

(Artwork by: Rimanti N)

Qantas' decision to dump British Airways for Emirates was claimed as "to stem losses in long-haul operations"... yet, The Age reported they had a bloody nice party after the announcement, with even nicer goodie-bags to take home...

"But the biggest enigma lay within the goodie bag handed out to the needy throng. Guests got travel guides, a passport folder and a bottle of bubbly - and not just any old plonk, but Taittinger's 2000 vintage Comtes de Champagne, which fetches $320 to $350 a bottle.
So who paid for all this largesse? "It was a joint venture," a Qantas spokeswoman said. "Both Emirates and Qantas contributed to that goodie bag."

Sorry, but what was the excuse Qantas said? 
To stem losses?

Malindo Airways: Lion Air makes its roar heard in Malaysia

Indonesia's Lion Air and Malaysia's National
Aerospace & Defence Industries join hands
to set up Malindo Airways in Malaysia

Lion Air has confirmed plans to set up Malindo Airways in a partnership with Malaysia's National Aerospace & Defence Industries.

Several interesting key points were made in the event:

• Malindo will provide a hybrid service (between LCC and full service carrier).
• Base will initially by at KLIA2, the future home of Air Asia Malaysia
• Malindo will start in May 2013 with 12 737-900ERs with 12 business class seats and 168 economy, with IFE and WiFi.
• Malindo aims to add 12 aircraft a year and hit 100 aircraft in 10 years.
• 787s will be introduced in 2015.
• Prices for tickets and services is aimed to be on par if not lower than Air Asia.

What this means for Lion Air and possible factors:

• Lion Air sees that its growth in Indonesia needs to slow down due to infrastructure limitations such as airport aircraft parking space are running out nationwide.
• Lion still have A LOT of aircraft to be delivered, and they have to be used somewhere, these aircraft will now go to Malindo and to a certain extent, Batik Air.
• The 787s slated for Batik Air is likely to go to Malindo first, Lion is negotiating for more 787s for Batik Air.
• Lion Air sees that if it wants rapid growth, it must be done outside Indonesia. This is nothing new to Lion Air, but previous attempts to set up subsidiaries outside Indonesia have so far failed (in my opinion, due to picking the wrong partners). Malindo seems to be the most realistic one yet (and I believe it will happen).
• Growth on the premium sector through Batik Air will not be as rapid as desired, again, due to limitations on infrastructure in Indonesia.
• This announcement effectively put an end to the previous rumored Malaysian joint venture, Lion Berjaya Air (And unless there's another announcement, Lion Air Australia is effectively scrapped).

On the Malaysian competitors...

• Air Asia will now have serious competition. Insiders have said that Air Asia's Tony Fernandes isn't afraid of Lion Air in Indonesia, but sees non-LCC developments of Lion Air (such as Malindo and Batik Air) as a threat.
• Firefly needs to set its direction and stick to it, lounging around between jets and props isn't going to get them anywhere against Air Asia, and with Malindo, the might end up being the loser.
• Malaysia Airlines will only face more challenges. Its entry into OneWorld is already being questioned by some after it's alliance sponsor Qantas decided to dump British Airways and went for Emirates. Malindo will only erode further on its short haul yields.

Looking back over the years, Lion Air have announced many plans to set up joint ventures and/or subsidiaries outside Indonesia, none of which have come to fruition. Malindo appears to be Lion's boldest move yet, with a reputable local partner in the form of NADI, and the ceremony was attended by Malaysian Prime Minister Najib.

This time around, it seems that Lion Air is planning serious business outside it's den.