PRESENT POINT POWER

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Update Oct 10 06, - the Minister is in response to the call by CEO Tony Francis (see below) for “quick approval”. From the carefully worded statement from the Minister, CEO Tony can dream on until the deadline 2008 "Open Sky Agreement". The final decision would most probably not be in its favor as the national interest is at stake and the cabinet has no choice but to keep MAS afloat; otherwise it cannot survive with AirAsia coming into this lucrative sector.

Minister Datuk Seri Chan Kong Choy declined to reveal details of study

Study On KL-S'pore Air Route For Budget Carriers Completed, Says Chan; October 09, 2006 19:43 PM
KUALA LUMPUR, Oct 9 (Bernama) -- The Transport Ministry has completed a study on opening the Kuala Lumpur-Singapore air route to the budget airlines in Malaysia and Singapore, Minister Datuk Seri Chan Kong Choy said Monday.

However, Chan, who received the report from his ministry's former secretary-general Datuk Muhd Safaruddin Muhd Sidek, declined to reveal details. Muhd Safaruddin, who headed a special committee to conduct the study, retired on Friday.

Chan said he would study the report before tabling it in the cabinet for a final decision. He said the cabinet would consider the views of all stakeholders. "The most important thing is, the nation's interests will be given priority," he told reporters after chairing the MCA disciplinary board meeting.
The committee to study opening of the route was set up two months ago.The route is currently monopolised by Malaysia Airlines (MAS) and Singapore Airlines (SIA) under a 34-year-old bilateral air services agreement between the two neighbours.

The Malaysian Government said in August that it was studying whether to allow budget airlines AirAsia and Tiger Airways to operate the route as part of efforts to implement the Asean Open Sky Agreement with Singapore earlier than the 2008 deadline.
Under the agreement, the 10-member regional grouping is expected to open up air routes between capital cities of member countries from 2008 before expanding to other cities by 2015.

AirAsia, Sunday (see below) urged the government to approve its application to fly to Singapore. The low-cost carrier formally applied to ply the lucrative hour-long route recently.
However, national carrier MAS is said to be not in favour of opening up the route before 2008 as it would jeopardise its business turnaround plan.

The Johor Government also protested, saying opening up the route earlier than scheduled would affect the Senai Airport's potential.
Chan said his ministry would take into account the views of AirAsia, MAS and the state government before making a final decision.

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This incident can be damaging to Air Asia. As a budget airline, it must ensure the planes they are flying are safe and free from defects. As in the similar incident below from another airline in 1993, it could be due to weakening of rivets attaching the wing skin to its frame. In the report quoted, the defect was identified as due to "water contamination" and this happened when the planes are "getting old".

AirAsia do gave their planes visual checks now and then and depends on instrumnets for detection of other defects. Major overhauls and checks are done on scheduled hours. Keep you eyes and ears open, when you next fly AirAsia and help them spot defects.
In this case, no way can they detect this "skin peeling problem" which is Mechanical in nature due to materials wear before a flight. It can occured when the skin is weakened during a take off due to vibration on the structure. This can be a potential big problem, if large areas of the skin were to peel off during flight, an emergency dangerous situation could arise.

With the loss of skin, the wing would not be able to provide the necessay "lift" but an experienced pilot could handle this situation well and in ALL cases an emergency landing at any nearest airport would be the best option.

Southbound plane returns to Suvarnabhumi with wing defect

By News Desk The Nation ; Publication Date: 08-10-2006

After leaving Suvarnabhumi Airport yesterday morning (Oct 7), a Thai AirAsia aircraft had to abort its flight to Narathiwat, officially due to technical reasons, but passengers said the U-turn was more about part of its wing falling off.

The jet eventually reached its destination safely after a five-hour delay at Suvarnabhumi and lengthy arguments between passengers and airline representatives.

One of the 94 passengers, Anothai Polsuwan, 40, a lecturer at Rajamangala University of Technology Thanyaburi, said they boarded at 9.35am and after half an hour into the flight, the captain announced that a technical problem had occurred and turned the plane back to Bangkok.

Passengers were told they would have a new plane ready for departure at 12.45, Anothai said. He and his co-passengers believed that the "the technical problem" was in fact the cover of the upper section of the jet's right wing that had peeled off.

They noticed that the mechanics fixing the wing did not look too confident, he said. After two hours of waiting,they became upset upon learning that they had to fly on the same aircraft, which the budget airline's officials insisted had been repaired, he said.

The chief mechanic was summoned to assure the passengers that the missing component - which was not replaced due to the lack of a spare - would not impair the aircraft's operability.
But some passengers were not convinced. They insisted that Thai AirAsia officials back up their word that the plane was safe by getting on with them and flying to Narathiwat.

"If it's a test flight, I won't complain, but this is a plane full of passengers. How can you fly it when its wing has no cover like that?"
Anothai said.

Airline officials even offered to refund the airfare. But after an hour of furious discussion between both sides, the passengers gave in and boarded the plane, finally arriving without any further adventure in Narathiwat at 2.30pm.
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REPORT of similar SKIN PEELING incident

On April 12, 1993, at approximately 0954 central daylight time, a Boeing 747-269BC, Kuwait registration 9KADD, operating as Kuwait Airlines Flight 091, sustained minor damage when a non structural panel on the left wing became delaminated while the airplane was climbing through FL 310, approximately 25 miles south of Alexandria, Louisiana.

There were no injuries to the 24 passengers, 6 flight crewmenbers, and 10 flight attendants aboard. The airplane departed Ellington Field (EFD) near Houston, Texas, at approximately 0921, enroute to Andrews Air Force Base, Maryland. A passenger seated on the left side of the airplane observed portions of the skin on a wing panel on the left wing peeling off and informed a crewmember of the condition.

The airplane was diverted to the Houston Intercontinental Airport (IAH), in Houston, Texas, where a uneventful landing was made at 1028, with airport emergency equipment standing by.
According to the operator, a slight vibration was felt on the left side of the airplane after part of the skin departed the airplane. Physical examination of the airplane revealed that a section (48 inches wide by 31 inches long), separated from the trailing edge of the fixed trailing edge upper panel (part number 65B22845 33) on the left wing. There was evidence of delamination, working rivets, and rows of rivets pulled through the skin on the remaining fiberglass laminated honeycomb panel. Additionally, a 3 inch portion of the trailing edge on the left wing fore flap panel, was also damaged and separated from the aircraft. There was no other damage to the airplane.
According to maintenance personnel returning the airplane to service, the delamination of the honeycomb panel was the result of water contamination.

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http://asia.news.yahoo.com

AirAsia urges Malaysian approval for KL-Singapore route
Sunday October 8, 6:55 PM
KUALA LUMPUR (AFP) - Low-cost carrier AirAsia has urged Malaysia to approve its application to fly to Singapore, arguing the government had to reduce protection for Malaysia Airlines.

AirAsia's Group Chief Executive Tony Fernandes said Malaysia had to improve its connectivity by allowing in more airlines, which would in turn
supplement the budget carrier's network.

Malaysian-based AirAsia announced last month it had made a bid to ply the
lucrative Kuala Lumpur-Singapore route, and that it expected to commence
flights by early 2007.

"We hope the KL to Singapore route is open quickly so we can get a share of their hub traffic," Fernandes told AFP.

"There should be no a reason for it it not to be open except for the protection of Malaysia Airlines," he said Sunday.
The Malaysian government has said it is studying whether to allow AirAsia and Singapore-based Tiger Airways to operate the hour-long route currently monopolised by Malaysia Airlines (MAS) and Singapore Airlines.

Fernandes said Malaysia Airlines was facing increasing challenges from airlines entering the country, and called on the government to allow fair competition for routes.

"More and more Arab airlines are being allowed into Malaysia and they have to compete with those airlines," he said. "We shouldn't be holding anyone back for the benefit of one party," he added.
The chief executive said AirAsia had no news yet of a decision from the Malaysian government, but indicated protection for Malaysia Airlines could
be a sticking point. "We are just waiting for the Malaysian government response," he said. "The only reason not to give a decision would be to protect MAS."

AirAsia was launched as a budget carrier in December 2001 with just two aircraft. It now offers more than 100 domestic and international flights to Malaysia, Thailand, Indonesia, Singapore, Cambodia, Vietnam and the Philippines.
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AirAsia chief rules out starting long-haul budget carrier
Sunday October 8, 3:54 PM
http://asia.news.yahoo.com

KUALA LUMPUR (AFP) - The head of Malaysian low-cost carrier AirAsia ruled out establishing a budget long-haul airline and labelled as "preposterous" a report flagging the move.
AirAsia's Group Chief Executive Officer Tony Fernandes scotched a report that the carrier's management team was behind the new airline and would submit a business plan to the government. "It's a preposterous idea," Fernandes told AFP. "I'm ruling it out, I don't see it happening, I don't believe in the model."
The Edge financial weekly, quoting unnamed sources, reported at the weekend that Fernandes and his associates planned to launch the budget long-haul operator by early next year. One of the routes under consideration was the lucrative Kuala Lumpur to London route currently operated by Malaysia Airlines, it said.
Fernandes said he had considered the idea some four years ago before his involvement in AirAsia, but had been advised it was better to start a short-haul airline.

"I have enough on my plate doing a short-haul airline," he added.
AirAsia was launched as a budget carrier in December 2001 with just two aircraft. It now offers more than 100 domestic and international flights to Malaysia, Thailand, Indonesia, Singapore, Cambodia, Vietnam and the Philippines.

AirAsia founders eye long-haul airline -report
Updated : 07-10-2006

KUALA LUMPUR, Oct 7 (Reuters) - The founders of Malaysia-based low-cost carrier AirAsia (AIRA.KL: Quote, Profile, Research) plan to set up a new budget airline that will operate long-haul flights, a business weekly reported.
The Edge, citing unnamed sources, said the new airline, which would be privately owned, might begin service as early as next year.

AirAsia directors Tony Fernandes and Kamarudin Meranun and their associates are believed to be working on the business plan, which would be presented to the government, the weekly said.

Fernandes and Kamarudin could not be immediately reached for comment. AirAsia currently flies to destinations within the region. One of the routes under consideration is Kuala Lumpur to London, the Edge said.

National carrier Malaysia Airlines (MASM.KL: Quote, Profile, Research) flies 18 times a week to London from Kuala Lumpur, and it is one of the few profitable routes on its international network. AirAsia Foreign Shareholding Exceeds Prescribed Limit Of 45 Pct

AirAsia Foreign Shareholding Exceeds Prescribed Limit Of 45 Pct; October 06, 2006 21:24 PM
KUALA LUMPUR, Oct 6 (Bernama) -- AirAsia Bhd announced that the percentage of its foreign shareholding in the company has exceeded the prescribed limit of 45 percent.
As of September 29, 45.7 percent of its total share capital were owned by foreigners.

Pursuant to the Securities Industry (Central Depositories) (Foreign Ownership) Regulations 1996, shares owned by foreigners which are within the prescribed limit shall be entitled to all rights and entitlement attached to the shares.

However, shares held by foreigners which have exceeded the prescribed limit shall only be entitled to such rights, benefits, powers and privileges except for the voting rights in respect thereof.