Fox – sly.  Trots – left-leaning (Trotsky) plus its more insalubrious meaning.

Foxtrots – leading the industry in a dance.


February 14 2014

TinT – Truth-in-Travel: Air Asia; Skymark.

Air Asia

You won’t see all these numbers from official data from the Air Asia Group (AAG) – because they don’t always report formally – and some totals do not add up. My report on 2013:


-Group seat sales 42.2mn, up 24%.


-On published data, Philippines AA seat factor was 68%. PAA reports lower, but both are bad; AAG needs to get that up, quickly.


-Indonesia AA’s loads are also too low, at 77%. Malaysia AA and Thailand AA at acceptable levels, 81% 83%, but AAG at just under 80% needs improvement.


-Seat sales for Malaysia AA, the first AA, growing at 11%, which indicates it is close to a ceiling, although this is better than the +9% in 2012.


-AAX (not included in AAG totals) sold 23% more seats to reach 3.2mn, much better than its +2% in 2012 – when it stopped more routes than usual. Its 82% seat factor is too low for a longhaul operation, but it is moving to medium-haul and even some longish short-haul routes.




Skymark; Pagpft

Pagpft (pronounced pag-puffed); People Are Getting Paid For This.

You thought Skymark was dead? Japan’s no-frills-airline Skymark has been going nowhere for a long time. It was formed in 1996, when Tony Fernandes was still selling CDs.


An original shareholder was HIS owner Hideo Sawada, who still retains a 5% shareholding.


Skymark has 31 B737s and sold around 7mn seats in 2013. It also has some reasonable strategies – such as operating from Tokyo’s Ibaraki airport, although it also operates from the much-more-costly Haneda and Narita airports.


It no longer seems to know whether it is a no-frills-airline or not. It was frightened by the entry of Air Asia and Jetstar in Japan, and cut back frequencies and destinations. Worse, it ordered six A380s, of which the first is due later this year, as well as 10 A330-300s.


Eh? Yes, Skymark is thinking of flying Tokyo Narita to the US (some reports also indicate Frankfurt, London, Paris). If that wasn’t bad enough, Skymark is going premium – with 114BC and 280EC-premium in its A380s – only 394 seats.


So, new business model, new markets, new routes. Pagpft.






The Fox

Remember, I’ll be famous after I’m dead.