Malindo Air says its financing is intact

Malindo Air says its financing is intact 

Malindo Air, which is gearing to launch its services in March after it secured the principle air services licence from the Government recently, has denied it is in any financial difficulty.

“There is no financial problem. In fact, our funding is intact as we have strong financial backing from our shareholders,'' its chief executive officer Chandran Ramamuthy told StarBiz.

He was responding to an OSK Research report that quoted rumours saying that Malindo's major shareholder National Aerospace and Defence Industries Sdn Bhd (Nadi) was reluctant to pour more capital into its joint venture (JV) with Indonesia's PT Lion Grup.

Malindo is 51% owned by Nadi and 49% by PT Lion Grup, the parent of Indonesia's privately-owned airline, Lion Air, which in turn controls about half of the Indonesia domestic air travel market.

Nadi main shareholder Tan Sri Ahmad Johan when contacted yesterday declined comment while Lion Air president director Rusdi Kirana, who is also part owner of PT Lion Grup, was not available for comment as he was travelling to the United States.

Financing has not been an issue for Lion Air, which is buying more than 300 aircraft, with most of them funded by export credit agencies.

Chandran said Malindo was in the midst of submitting its application for the air operator's licence and was in the final stages of hiring the first batch of pilots and cabin crew who will undergo training beginning February to prepare themselves for its launch.

The issue of any shareholder not wanting to pour in money for the airline to take off had not cropped up, said someone familiar with the new low-cost airline.
The OSK report also said that “.... due to the JV's limited capital, we gather that Malindo charges a fee for any new commercial pilot licence (CPL) holder with B737 NG-type rating who is interested to become pilots. Charges are estimated at US$30,000 for the first 500 hours, with no salary.''

Chandran clarified that it was an industry practice to charge pilots a fee when they underwent aircraft-type training.

Some airlines charge candidates for the training and others absorb it initially but later bond the candidates for several years and deduct their salaries, and in some cases, this is not made transparent.
“It is an arrangement with Malindo. Given the huge number of unemployed graduates and the fact that Malindo is offering jobs, even if it charges or offers loans, it is still helping to absorb the excess number of pilots in the country; so that should not be seen as an issue,'' said an industry observer.

KLIA2 to be opened on June 28

KLIA2 to be opened on June 28
Prime Minister Datuk Seri Najib Razak today announced that the new low-cost airport, dubbed KLIA2, will be launched on June 28 this year, co-inciding with the launch date of the Kuala Lumpur International Airport (KLIA) in 1998.

The premier said the airport was scheduled to be ready by May this year, but the operations would not be rushed as there were some teething issues to be solved before its opening.

"We should go through some of the teething problems with the new terminal and once it is ready, then KLIA2 will be fully operational.

"As a target, I have decided that it should co-incide with the date of the opening of KLIA. Hopefully, I will have the opportunity to open KLIA2 on June 28," he said.

Najib said this at the launching of a specially designed 1Malaysia AirAsia aircraft livery to commemorate the start of 1Malaysia Integration Programme with AirAsia at the LCCT (Low-Cost Carrier Terminal) here today.

Also present were Minister of Youth and Sports, Datuk Seri Ahmad Shabery Cheek, AirAsia's Group Chief Executive Officer, Tan Sri Tony Fernandes and Managing Director of Malaysia Airports Holdings Bhd (MAHB), Tan Sri Bashir Ahmad.

Bashir said MAHB welcomed the prime minister's decision not to rush the opening of the KLIA2 and to coincide it with the opening date of KLIA.

He said all issues pertaining to the new airport were expected to be settled before the opening date to avoid even any minor glitches during operations.

"We do not want to rush. I think the prime minister has the same thought in mind. We have seen many airports worldwide fail because they were rushed into operations.

"It is something exciting also if the date coincides (KLIA & KLIA2), as it will be a double celebration for us at MAHB," Bashir said.

The RM3.6 billion KLIA2, built to cater for the explosive growth expected in low-cost travel, is sprawled over 257,000 sq metres and is envisaged to handle a maximum of 45 million passengers a year. The airport will have 60 gates, eight remote stands, 80 aerobridges, plus a retail space covering 32,000 sq metres to accommodate 225 retail outlets. -- BERNAMA

Malindo Airways to launch service in Mar-2013

Lion Air general director Edward Sirait confirmed Malindo Airways is scheduled to launch operations from Mar-2013, according to a indo-aviation.com report. The carrier is 49% owned by Lion Air, with the majority shareholding held by Malaysia’s National Aerospace & Defence Industries (NADI). The carrier will be based in Malaysia and plans to have a fleet of 10 Boeing 737s in operation by the end of 2013.

Via : MalindoBooking.com

MAS, AirAsia and Firefly unfazed by Malindo entry

The vibrant Malaysian aviation sector is expected to spur further growth next year with potential competition expected from new entrant, Malindo Airways, which is poised to hog the industry limelight. The announcement of Malindo Airways’ entry, made early this year, is one of many news-making events that shook the industry in 2012 apart from the aborted Malaysia Airlines (MAS) and AirAsia Bhd share swap deal in May, the delivery of MAS’ first Airbus A380 in June and a recent firm order placed by AirAsia for an additional 100 Airbus A320 aircraft.

The new low-cost airport, klia2, scheduled for operation in May 2013, is also expected to increase the number of airlines arriving in Malaysia, thus increasing competition in the low-cost segment. With so much competition expected in the local aviation industry next year, MAS remains cautiously optimistic of a challenging operating environment. MAS managing director Ahmad Jauhari Yahya expressed this optimism since Malaysia is located within the centre of the aviation industry’s future growth hub. “As increased demand will be driven by emerging markets, a host of low-cost carriers now offer value-for-money travel and increased competition, thereby putting pressure on yields of all airline players,” he said. “In addition, rising fuel costs, demand shocks and seat over-capacity with the entry of new players like Malindo will continue to bring challenges.”

AirAsia Bhd chief executive officer Aireen Omar and her Firefly counterpart, Ignatius Ong, are both excited about 2013, despite the intense competition the airlines could face next year. The main contributing factor to the confidence is believed to be the clear network expansion roadmap that both the airlines have in hand, in addition to the deliveries of many new fuel-saving and efficient aircraft. Aireen said that AirAsia was used to competition, thus its operations or future plans would not be disrupted by the entry of Malindo. “All our future new routes will only cost us marginal expenses and effort, as it will be complemented by the brand and network that we have built up in the past 11 years,” she said.

“This is different from a new airline, which has to start and establish itself in every sector of the industry.” Ong, on the other hand, said Firefly had always seen the challenge of competition as an encouraging factor to keep the team focused on the community airline’s value and aim to produce outstanding results. “(The) key point is to keep to what we are good at, strengthen it further and tap even more customer base, moving forward. This will ensure that we can be a brand that customers trust and they will come back time and again,” he added. — Bernama