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Indonesia AirAsia

IATA Code
QZ
ICAO Code
AWQ
Website
http://www.airasia.com
Main hub
Jakarta Soekarno-Hatta International Airport
Country
Indonesia
Business model
Low Cost Carrier
Network
Domestic | International
Airline Group
Part of AirAsia Group
Association Membership
Indonesian National Air Carriers Association (INACA)

Indonesia AirAsia is a low cost carrier based at Jakarta Soekarno-Hatta International Airport. The airline is a JV between Malaysian LCC AirAsia (49%) and local interests. Indonesia AirAsia operates a fleet of Airbus A320 aircraft both domestically and internationally, to destinations in Australia and South East Asia.

Location of Indonesia AirAsia main hub (Jakarta Soekarno-Hatta International Airport)

LCCs will continue to evolve into hybrids of the original core model. CAPA and OAG consider Indonesia AirAsia fits the LCC profile and it is included in our reporting on this basis. Please note: when reporting for an airline is changed from or to LCC the historical data is not affected and it can lead to a distortion in the current reported data. Contact us if you have any queries.


 
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288 total articles

and

55 total articles

and

Indonesia AirAsia, Philippines AirAsia and new India and Japan joint ventures. The next stage begins

24-Aug-2014 10:31 PM

Part 2 of this report on the financial results of the AirAsia Group for 2Q2014 covered the – probably temporary – decline in fortunes for AirAsia's first and largest affilliate, Thai AirAsia.

Part 3 now examines the results on the outlook for the other affiliaties of the now-sprawling AirAsia group in other markets. As competition among LCCs grows in Asia, AirAsia is reaching the stage where its geographic market power can offer a unique strength. But it is not all plain sailing.

Indonesia AirAsia represents the group in that national market, where Bali/Denpasar is to become a transfer hub for Indonesia Air Asia and long-haul local JV Indonesia AirAsia X. Indonesia AirAsia is already Indonesia's largest international airline (by seats), but domestically the market competition has been intense, now partly diminished by the recent withdrawal of two competitors. Meanwhile, Philippines AirAsia has a more challenging path in what is a strenuously contested market.

As AirAsia ventures into India with AirAsia India and renews its presence in Japan's market with AirAsia Japan, the group will need its southeast Asian affiliates to maintain profitability.

AirAsia faces challenges in Indonesia, Philippines & Thailand as all affiliates post 2Q2014 losses

24-Aug-2014 10:22 PM

AirAsia had one of its most challenging quarters in its 13-year history in 2Q2014 as overcapacity and intense competition across Southeast Asia impacted the group’s profitability. While the AirAsia Group’s Malaysian subsidiary remained profitable in 2Q2014, albeit with one of its lowest operating margins in several years, all of the group’s overseas affiliates incurred losses.

The group’s oldest and most established affiliate, Thai AirAsia (TAA), had a rare loss as political instability impacted inbound demand while domestic competition intensified. But TAA should also see an improvement in 2H2014 as Thailand’s tourism sector begins to recover and it starts to get feed from its new long-haul sister carrier, Thai AirAsiaX (TAAX).

The biggest medium and long-term challenges are in Indonesia and the Philippines, where AirAsia has been restructuring networks as part of turnaround initiatives. The group has decided to cut its fleet in the Philippines by eight aircraft while fleet growth at Indonesia AirAsia has been frozen for a second year, which will keep the airline at the 30 aircraft mark for all of 2014 and 2015. This second instalment of a three-part report on the AirAsia Group's 2Q2014 results deals with Thai AirAsia.

Tigerair and AirAsia lead adjustments to overcapacity in the Jakarta-Singapore market

14-Jul-2014 11:25 AM

Jakarta-Singapore capacity has quickly dropped by over 20%, led by adjustments at LCC groups Tigerair and AirAsia. The declines reverse capacity increases from 2013, when a breakthrough in the Indonesia-Singapore bilateral led to a surge in capacity.

Jakarta-Singapore is the second largest international city pair route in the world but supply in late 2013 and 1H2014 far exceeded demand. As a result it emerged as one of the most obvious examples of overcapacity in the Southeast Asian market.

Airlines were overly ambitious and aggressive in applying for and using newly available traffic rights. Recent adjustments have brought much needed rationality to the market but capacity could start being added back, again putting pressure on yields and load factors.

Tigerair Mandala suspension begins needed consolidation to Indonesian & Southeast Asian LCC sectors

20-Jun-2014 1:16 AM

Tigerair Mandala has announced it is suspending operations from 1-Jul-2014, bringing to a close Singapore-based Tigerair Group’s highly unprofitable foray into other Southeast Asian markets. Tigerair is now turning its focus to its original Singapore operation, which has a stronger position and outlook but also faces short-term challenges.

Tigerair Mandala has struggled since its Apr-2012 launch and had a weak outlook given its small size and lack of scale. Mandala’s demise was inevitable after its two main investors decided against recapitalising the carrier and failed to find a buyer.        

Mandala was by far the smallest of Indonesia’s four low-cost players. It becomes the fourth Indonesian carrier but the first Indonesian LCC to suspend operations since the beginning of 2013.

AirAsia further slows fleet expansion as 1Q profit falls - with the potential to accelerate later

22-May-2014 10:00 AM

Short-haul LCC group AirAsia has reported a sharp drop in profits for 1Q2014, including for its original subsidiary in Malaysia. Long-haul sister group AirAsia X meanwhile swung to a loss in 1Q2014 despite strong traffic growth and load factor improvement as yields in the Malaysian market deteriorated.

AirAsia has made another downward adjustment to its fleet plan, removing six aircraft from its 2014 fleet through aircraft sales. This brings the total reductions for 2014 to 19 aircraft when including the six sales and seven deferrals announced in Feb-2014. The group also expects to defer another seven aircraft in 2015, adding to the 12 deferrals announced earlier and leaving it with a mere 10 deliveries next year.

The new adjustments, which also include deferrals for 2016 to 2018, are understandable given the challenging market conditions. But they may prove to be a step too far, particularly if the pending restructuring at Malaysia Airlines (MAS) proves to be significant, providing AirAsia an opportunity to accelerate growth and improve yields in its home market.

Lion Air has opportunity to accelerate LCC growth in Indonesia after modest traffic gains in 2013

8-May-2014 11:00 AM

Lion Air has an opportunity to win back market share in Indonesia’s dynamic low-cost sector as competitors slow their expansion and in some cases reduce capacity. Lion in 2013 recorded the lowest rate of traffic growth among Indonesia’s four LCCs as its share of the Indonesian LCC market dropped from over 78% in 2012 to about 71%.

Indonesia AirAsia, Garuda Indonesia budget subsidiary Citilink and Tigerair Mandala all gained market share as they expanded more rapidly than Lion, albeit from much smaller bases. But Indonesia AirAsia and to a lesser extent Citilink are slowing expansion in 2014 while Tigerair Mandala has cut capacity.

Lion also has quietly slowed its growth by retiring 737 Classics and switching 737-900ER orders to smaller 737-800s. But Lion has not followed rival LCC groups AirAsia and Tigerair in deferring or cancelling orders. The group will account for about three quarters of the aircraft being delivered to Indonesia’s LCC sector in 2014, putting it in position to make market share gains.

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