Arab Today, arab today airasia tipped to surmount first major crisis
Last Updated : GMT 11:35:37
Arab Today, arab today
Arab Today, arab today

AirAsia tipped to surmount first major crisis

Arab Today, arab today

Arab Today, arab today AirAsia tipped to surmount first major crisis

AirAsia passenger planes
Kuala Lumpur - AFP

Until Flight QZ8501 went down everything had gone right during a spectacular 13-year run of success for AirAsia, which unlocked a booming market of budget travellers in the region.
But as long as no serious safety lapses emerge, analysts say the robust and media-savvy business built up by the Malaysia-based group should help overcome its first major reversal.
Flight QZ8501 operated by Indonesia AirAsia -- the group's Jakarta-based affiliate -- crashed in the Java Sea on December 28 en route to Singapore from Surabaya with 162 aboard. All are believed dead.
From the start, AirAsia's colourful boss Tony Fernandes publicly took responsibility, visited victims' families, and vowed to find out what happened.
Such actions are critical in restoring trust, experts say, and stand in stark contrast to Malaysia Airlines' fumbling, tight-lipped handling of the still-unsolved disappearance of Flight MH370 last March with 239 aboard.
"This is an excellent case of a crisis being handled well, to show your customers that things are being taken care of in a hands-on manner, and that the executives are not just sipping their coffees in a cosy office," said Daniel Tsang, an aerospace analyst with Aspire Aviation.
"While some passengers may avoid taking (AirAsia) flights in the short-term, AirAsia's low-cost proposition will keep drawing in first-time fliers to the airline."
If investigators uncover safety negligence on the airline's part, however, it could deeply undermine confidence.
The cause is not yet known, but the plane's Indonesian pilot had requested a course change from air traffic controllers shortly before the crash to avoid a storm.
Indonesian officials in turn have raised questions about Indonesia AirAsia, saying it did not have a license to fly the route that day, but Fernandes has rejected the claim.
- 'Everyone can fly' -
Yet even if any safety lapses are pinned on the carrier, aviation analysts said AirAsia could mitigate the impact with an aggressive and public campaign to address shortcomings.
AirAsia would need to "be upfront about safety lapses, own up to error, lay out ways to avoid future (accidents), and move on", said Terence Fan, an aviation expert at Singapore Management University.
"Unless serious lapses at the airline were found, an airline typically bounces back in a few months in terms of traffic."
Taking to Twitter, Fernandes last week vowed all the facts will come out. "We never hide," he declared.
Shukor Yusof, founder of Malaysia-based aviation research firm Endau Analytics, said he would be surprised if a systemic AirAsia safety problem was found.
"AirAsia does well in cost-cutting but not to the extent of foregoing safety," he said.
Knowing the plane's fate also means AirAsia can bring closure to families, so muting long-term criticism. In contrast, the failure to find MH370 has left many victims' kin alleging a cover-up by Malaysia Airlines and Malaysia's government.
A former record industry executive, Fernandes, 50, took over heavily indebted AirAsia in December 2001. He turned it into a roaring success with its rock-bottom fares and a playful image embodied by its baseball cap-wearing boss, who has been called Asia's Richard Branson.
With its corporate motto declaring "Now everyone can fly", it has won over tens of millions of travellers in a burgeoning Asian middle class previously confined to more expensive regional flag carriers, snagging several awards as the world's best budget carrier.
"Certainly AirAsia will recover as it is a very good airline and this tragedy will not impact its growth," said AirlineRatings.com editor Geoffrey Thomas.
That said, AirAsia is struggling to maintain growth rates as it matures, as rivals step up competition. In the first blow to its business, Indonesian authorities have halted AirAsia's Surabaya-Singapore flights.
But analysts note that AirAsia has continually proven itself the region's most nimble performer, and that other airlines have bounced back from tragedy to emerge stronger. These include flag carriers Garuda Indonesia and Korean Airlines.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today airasia tipped to surmount first major crisis Arab Today, arab today airasia tipped to surmount first major crisis

 



Arab Today, arab today
Arab Today, arab today Nohan Seyam designs beautiful accessories

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today Top Yemen commander killed

GMT 09:55 2017 Wednesday ,22 February

Top Yemen commander killed
Arab Today, arab today To probe sexual harassment claims

GMT 10:08 2017 Tuesday ,21 February

To probe sexual harassment claims

GMT 05:49 2017 Wednesday ,22 February

‘PSA to honor Opel job guarantees’

GMT 05:41 2017 Wednesday ,22 February

BHP to Trump: Protectionism will hurt growth

GMT 20:42 2017 Tuesday ,21 February

Amazon plans 5,000 new jobs in UK

GMT 05:43 2017 Tuesday ,21 February

CEFC China Energy wins 4% stake in UAE oil project
View News in Arabic - Business: أخبار الشركات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today To hold social dialogue over secondary school

GMT 07:43 2017 Wednesday ,22 February

To hold social dialogue over secondary school
Arab Today, arab today 63-Year-Old Woman Delivers Baby

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Janat pleased for issuing 'Good Morning'

GMT 06:41 2017 Monday ,20 February

Janat pleased for issuing 'Good Morning'
Arab Today, arab today Small ponds have outsized impact

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 06:34 2017 Sunday ,19 February

Ahmed Fahmy stresses he did not ignore singing

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed

GMT 12:22 2017 Monday ,20 February

Kanye West puts hijab-wearing model

GMT 14:06 2017 Friday ,17 February

London to tax old cars

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 05:15 2017 Tuesday ,21 February

Omega 3 can reduce asthma cases

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:39 2017 Monday ,20 February

newest smartphone another winner for Huawei

GMT 16:08 2017 Wednesday ,15 February

Shawsh reveals her collection "Jewelry of dreams"
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday