Air Asia Launch for Sydney

Since 2008, the AMBCQ and Air Asia have had a really good working relationship. They have been our one consistent and loyal sponsor since that time, sponsoring each of our annual Australia-Malaysia Ball. It's a good fit - Air Asia's Australian arm is based here in Queensland, and it is a young and dynamic business, constantly changing, expanding and looking for new opportunities. The AMBCQ too, is young and dynamic, being the largest and most active of all the AMBC chapters. We also, I believe, share the principle of inclusiveness - "now everyone can fly" is Air Asia's motto, and they achieve this by keeping costs low. For us, unlike the many exclusive 'boys clubs'  are still prevalent in business circles and politics, AMBCQ is an inclusive organisation, and we encourage all to join. This inclusiveness is also practised in AirAsia X, with the airline having a female Chairman, Tan Sri The Hon. Rafidah Aziz.

As strong allies of AirAsia X, we were invited to go down to Sydney for the launch of the Sydney-KL route yesterday, 17th January. This route has been a long time coming but the airline persisted and with it and eventually they won their prize - approval to service the KL - Sydney route. It will be a great boost to many Malaysians living in Sydney, students especially, and to Australians and others doing business in Malaysia, and Asia generally, as well as to Sydneysiders living in Malaysia.

Arzan Osman Rani, the charming and dynamic CEO of Air Asia, flew down to Sydney to launch the new route and to speak to journalists at the press conference.  The launch was held at the Museum of Contemporary Art at Circular Quay.  Also there was our good friend, Stuart Myerscough of Air Asia Australia, as well as the indomitable Tan Sri the Hon. Rafidah Aziz, the former long serving Malaysian Trade Minister and Chairman of AirAsia X. And of course the ubiquitous red clad Air Asia X stewardesses made their iconic presence known.

According to Kiong, the launch was a great success.  Arzan surprised the crowd by disappearing part way through the press conference to return dressed as a Bondi life guard. After a light lunch and refreshments overlooking the Opera House and the Harbour Bridge, the participants and journalists were whisked away by bus to Bondi beach itself for some publicity shots. According to Kiong there was a good contingent of Malaysian and Australian journalists present and Air Asia got a good hearing.

Fielding some interesting questions from the Australian media, Azran took it in stride and easily explained the logic behind AirAsia X's decisions and business model.  Most of you will know that Air Asia is expanding here in Australia, but has recently cut its routes to Europe. It won't be the only airline to do so, as a number of Chinese airlines also look set to cut European routes. The emissions taxes that the EU will be imposing on airlines is another prohibition and barrier to an already embattled industry. The questionable way that the EU is calculating the tariff rate also disadvantages airlines and travellers who fly direct long-haul flights.  Since September 11 2001, the airline industry, and the tourism sector have taken hit after hit, not just here in Australia but elsewhere as well. Other factors such as the economic crisis in Europe, the security of oil supplies and the cost of fuel have also had a significant impact on the aviation industry.  The EU tariff comes on top of these other factors.  It will be interesting to see how other regional airlines deal with the EU tariffs - further economic decline and increasing cost structures may well mean even fewer flights to Europe. It may well mean more resources put into the Asia Pacific as a marketplace. AirAsia X looks set to continue to develop its already impressive presence in the Asia Pacific to service the burgeoning markets and the large populations in ASEAN and North Asia.