Sunday, November 29, 2009

FedEx's Asia Pacific hub


The Baiyun International Airport in Guangzhou serves as a comprehensive intra-Asian network providing next business day delivery services among 22 major cities in Asia

GETTING millions of packages from point-to-point and having them arrive on time is no mean feat.But for the world's largest express transport company Federal Express (FedEx), the delivery of these packages - whether they are technology gizmos, chemicals, food items or documents - in a safe and efficient manner is all in a day's work, around the globe.In Asia Pacific where FedEx has been present since 1984, the Baiyun International Airport in Guangzhou, southern China, serves as the new "home" for the company's regional hub.From the moment you arrive at this US$150 million (RM522 million) spanking new facility, it is easy to get carried away by the buzz of activities wrapping the place, even in the dead of the night. Located on the east side of the international airport's passenger terminal, the hub is sprawled over 63ha and has more than 800 people on its payroll. Logistics giant FedEx closed down its Asia Pacific air transhipment hub in the northern Philippines at Subic Bay earlier this year and moved to China.Subic became the regional hub of FedEx's Asia Pacific operations in 1995 after the closure of the US naval base in 1992.The new hub is described by the company as a comprehensive intra-Asian network providing next business day delivery services among 22 major cities in Asia - including Penang and Kuala Lumpur - and linking these cities to over 220 countries and territories in FedEx's global system. A total of 136 flights using MD-11 and Airbus 310 aircraft land at Baiyun airport each week, where the hub boasts of facilities which include the ability to sort up to 35,000 packages and documents per hour using state-of-the art technology which is teamed with manual work carried out with precision and little room for error. "This facility has been built for expansion and will be the centrepoint for our business for the next 20-30 years," FedEx Asia Pacific's vice-president for planning, engineering and support Dennice Wilson told visiting Malaysian journalists recently. This, she notes, is in contrast to the Subic facility which was able to sort 12,000 packages and documents an hour and operated on a completely manual process. In addition to the new hub's unique package and sorting system which is made up of high-speed sorting lines, conveyor belts, along with primary and secondary document-sorting splits, FedEx's Guangzhou hub features a ramp control tower - which is a first for an international air express cargo company facility in China. It also boasts a dedicated security guard force, customs examination area and customs offices, along with showers, locker rooms, canteen and food services for its employees. Baiyun airport currently has three runways, with the third runway leased to FedEx. With five runways outlined in the airport's masterplan, a fourth one is slated for completion by 2010.Wilson notes that the infrastructure of Chinese airports is very good and is pleased that FedEx has been part of the authorities' masterplan in Guangzhou by saying that the goals of the company and those of the local authorities' are "very much aligned.""We are positioned now with everything we need and we hope that business grows around the hub since it is the interest of us, the government and our customers," she adds, saying that the geographical position in southern China for the hub was perfect for FedEx's hub-and-spoke system. Hub-and-spoke is a transportation system design in which large hub terminals are used for freight consolidation.FedEx Asia Pacific president David Cunningham Jr said FedEx is in the region for the long term and will continue investing, in a bid to facilitate global trade. "This is not the first economic cycle we have been through," he told reporters when met in Hong Kong, adding that the new Boeing 777 planes which the company has committed to is one example of the company's commitment to continuously supporting trade in this part of the world. FedEx was reported earlier this year to have 30 Boeing 777 planes on order, with an option to order 15 more. Wilson said some of the aircraft currently in use at Baiyun will be replaced with the new 777's which are more efficient planes and can go further. "We will get the first three flights of 777 in Asia Pacific next year and then transition some of the MD-11's," she added. With its vantage position of operating away from the cargo complex in its stand-alone hub and the addition of more runways at the airport, FedEx is poised to stand out as one of the more important players in the growth of Baiyun, which is on its way to becoming the largest airport in China's Pan-Pearl River Delta.

Sunday, October 4, 2009

From the A300 to the A350 XWB: Pioneering leadership

Over the past 40 years, Airbus has played a key role in the international air transport industry’s evolution. Achievements such as improving manufacturing techniques, developing global cooperation, and reducing aviation’s environmental impact result from Airbus’ ability to understand market and passenger expectations, and answer them with solutions that have become world standards.
At a time when others were concentrating on three- or four-engine aircraft, Airbus entered the civil aviation scene by developing the first ever widebody twin-engine, the A300B, in the 1970s. This aircraft featured low fuel consumption, reduced external noise levels and highly efficient operating costs, as well as Category 3 landing technology, enhanced comfort and containerised cargo.
In the early 1980s, Airbus improved the A300B with a new concept of forward-facing crew cockpits – which reduced the crew to two pilots while improving safety and introducing new standards for civil aircraft.
Next, it developed a shortened version of the A300: the A310. It was the first commercial widebody to be certified for two-man crew operations from the start, as well as the initial aircraft to use composites for primary structure components.
In the late 1980s, Airbus broke new ground again with the A320 – which set standards for efficiency and cabin comfort, and introduced fly-by-wire flight controls and side-stick controllers into civil aviation.
In the early 1990s, Airbus introduced ultra-efficient aircraft for the medium- and long-range markets: the A330 and A340.
The recent introduction of Airbus’ 21st century flagship A380 marked a new era. Not only is it setting new passenger comfort standards, the aircraft is raising the bar for environmental standards with its low fuel consumption and noise levels – as well as reduced CO2 and NOx emissions.

The A350 XWB will continue Airbus innovation, utilising new technologies and advanced materials such as 53 per cent of CFRP (Carbon Fibre Reinforced Plastic) while keeping the benefits of commonality.
Airbus always has been forward-thinking, with the environmental impact of its products high on the agenda. Reducing noise and fuel consumption – and thus emissions – as well as managing the full lifecycle of its aircraft all are major objectives. In addition, Airbus is the first aircraft manufacturer to have each of its sites and products awarded ISO 14001-certified status.
To support its growth, Airbus has developed a logistics system to move components over Europe using the specially-designed Super Guppy and Beluga cargo aircraft, ships and road transportation vehicles. Airbus also has created Centres of Excellence to take advantage of local knowledge and skills, and harmonised CAD/CAM systems to create a single virtual mock-up system.
Finally, Airbus revolutionised the industry by convincing European partners to develop and manufacture aircraft components while assembling the aircraft on a single production line. Airbus continues to pioneer with the opening of the A320 Final Assembly Line China (FALC) in Tianjin last year, a clear sign of its innovative approach to international cooperation. Airbus has been built on its ability to draw on the best of Europe and develop innovative products in anticipation of market needs. Airbus employees – engineers, pilots, salesmen, marketers, managers, technicians or workers on the production lines – always have been driven by a spirit of innovation and passion for aeronautics.
To safeguard this technology leadership position and to ensure its global competitiveness, Airbus relies on its ability to innovate and build the world’s most efficient aircraft. Today, Airbus 2020 sets the path for a huge R&T programme over the next 20 years, which will ensure that innovation remains at the heart of Airbus development.
Airbus’ vision for 2020 is to be a top-performing enterprise building the world’s best aircraft to its customers.

Sunday, September 20, 2009

AirAsia spreads its wings to American football

AIRASIA is fast becoming synonymous with sports.
It has already penetrated the hugely popular English Premier League market, is a partner of the AT&T Williams Formula One racing team and is also the official low-cost airline for Manchester United.
Now, it has spread its wings to American football with its two-year sponsorship of the Oakland Raiders in the National Football League (NFL).
American football may not be as famous or as popular as soccer in this part of the world but that has not stopped AirAsia Group CEO Tony Fernandes from trying to promote the game here.
“It’s a very popular game in the US and we also want it to be one of the sports in Asia. We (AirAsia), with the help of Oakland Raiders, will make efforts to promote the game in Asia,” Tony told a press conference in Oakland last week.
His made those comments after AirAsia’s “Xcellence’’ – its Airbus A340 – touched down at the Oakland International Airport for the first time last Monday. On board the flight was a group of 10 journalists from Malaysia, Singapore, Thailand and Indonesia.
Also present were newly-appointed Malaysian Ambassador Datuk Seri Dr Jamaludin Jarjis, the city’s Mayor Ron Dellums, Oakland Raiders owner Mark Davis and CEO Amy Trask, AirAsia X CEO Azran Osman-Rani and director Datuk Lim Kian Onn.
“This is a very proud moment for us.
“We are excited to associate ourselves with an iconic team like Oakland Raiders. This partnership will greatly enhance our efforts to boost our brand globally.
“We are already a well known brand in Asia. We are on our way to becoming a household name in Europe.
“And now, our relationship with the Raiders will allow us to establish our brand in the United States,” said Tony.
The no-frills airline’s foray into the NFL is also a way for AirAsia to get landing rights in the US.
AirAsia had, in March, secured landing rights in Stansted, England, for the European tourists.
“We are now in the process of negotiating with airports in the United States on the possibility of operating flights into America,” said Tony.
“American destinations are very much in our long-term plans as demonstrated by our recent order of 10 Airbus A350 aircraft.
These planes will be delivered beginning 2016.
“However, we are exploring ways of commencing flights to the US by the end of next year.”
Tony also said that it would cost an American tourist just US$350 to fly from Oakland to Malaysia.
Once it takes off, Tony expects the NFL and Oakland Raiders’ fan-base to expand in Asia.
Speaking of the Raiders, the 10 journalists, including yours truly, were treated to the season-opening NFL match between Oakland Raiders and San Diego Charges at the Oakland Alameda County Coliseum Stadium on Sept 14.
Unfortunately, the Raiders lost 20-24. Raiders owner Davis was enthusiastic about AirAsia’s sponsorship, saying: “Not only is Xcellence the name of the plane but it is the driving force behind both our organisations to promote the game.”

ATR delivers 72-500 VIP for Thai elite

Want to know how Thailand's elite travel? Here are pictures of the first of four ATR 72-500s in VIP configuration ordered by the Royal Thai Air Force. This remaining three will be delivered by end-2009, says ATR."This first ATR features a state-of-the-art VIP cabin interior and will be dedicated to the transport of the Thai Royal Family, as well as other government and military officials," says ATR.

Sunday, August 16, 2009

Up close and personal

AZRAN Osman-Rani unabashedly confesses that he gets distracted and bored quite easily, which he has self diagnosed as ADD (attention deficit disorder)! It’s a mighty challenge, he admits, to focus on anything for long and he constantly needs to be occupied to keep him going. And by that, he means he persistently craves new challenges. Indefatigable, indeed.
“I am more at ease when I have many things to do. If you do not give me anything to do, I can become very edgy and restless … I will go crazy,” Azran says.
It’s little wonder then that the AirAsia X chief executive officer revels in the high-paced, high-pressure airline industry.
“There is enough challenge here,” he says.
“In the first year, it was all about starting the company, then it was about getting new planes, then expanding the fleet size and routes. It’s been crazy.”
His career path in the turbulent sector began two years ago with a phone call, not just from anyone but from Datuk Seri Tony Fernandes, founder of low cost carrier AirAsia, whose triumphs in the industry are only too well documented.
Azran was then a senior director at Astro All Asia Networks plc. Suffice to say he got an earful of Tony’s pitch about AirAsia X; he wanted Azran to head the airline, which at that point, had only one aircraft and a bold business plan.
“The one thing that got me hooked was when Tony said ‘people think this cannot be done’. I thought – ‘wow, everyone in the world says this model can’t work’. That made me want to do it even more. I jumped at the opportunity and took a huge pay cut to join the team,” he recalls.
Despite the past year being one of the global airline industry’s worst times, the low cost long haul carrier has steadily increased its routes over that period. It’s not done yet of course.

“We are flying into new markets to secure more routes,” he says.
It has not been smooth sailing all the way. More recently, temperatures flared when the airline was denied the rights to fly to Sydney and Seoul.
“It was heartbreaking,” says Azran. But there’s no time to sulk. The company is moving on and as Azran says, there are many other opportunities out there.
When the StarBizWeek interviewed him recently, he had just returned from the Middle East. Sporting a red T-shirt and jeans, he enthuses that AirAsia X is keen on the Mid-East market and expects to launch some routes to the region by year-end.
How does a guy like Azran, with an insatiable thirst for the get-go, pass time when he’s not working? Why, sports of course.
“It’s important to release stress. Otherwise, the stress can build up and you will explode,” he says.
Azran is passionate about running marathons. When he can, he runs a 5km circuit around the Klang Valley on Sunday mornings.
He takes pride in having managed to complete the 42km Gold Coast Airport Marathon in Australia last month. He has also signed up to run in several international marathons in the months ahead, namely the Borneo International Marathon and Melbourne Marathon in October and Hangzhou Marathon in November.
In high school, he was a serious field hockey player. But when he went to the United States for his tertiary education, he discovered that field hockey was regarded as a “girl’s game” and that “real men played ice hockey.”
Soon, he found a new passion – the ultimate frisbee. Ultimate frisbee is relatively new to Malaysians but Azran is keen to build its following. He spends Saturday mornings at Kolej Bandar Utama coaching students in the sport.
Besides, spending time with youths makes him “feel young and sane”, says the father of three boys. Azran is married to Azreen Pharmy, a former news anchor with Astro.
Azran’s background in engineering comes handy at work, as he says it is not easy for the engineers to fool him by giving excuses for any technical problem that crop up in the aircraft.
“I get very upset when people don’t know what they are doing. When someone tells me something is wrong, I will keep on asking them why. This is how we figure out the root cause of the problem,” he explains.
Azran considers himself to be an accessible and engaging boss.
“I am open to new ideas. I do not have as much experience in the aviation industry to claim to be an expert. I also want to create opportunities for our staff.”
“Look at our team. It is small, but it’s diverse,” he says.
Azran says he learnt about the value of diversity from Malaysian tycoon Ananda Krishnan while working under the latter in Astro.
“We should actively seek to form a diverse team that cuts across racial and gender barriers. We have way too many monotonous companies. Just look at the top 50 listed companies, open their annual reports and take note of their management team. Most of the time, they are either very Malay, or very Chinese,” Azran says.
The two gadgets he never leaves home without – his Blackberry and laptop. And this – he’s got a “bucket list”.
“In my laptop, I have a list of things to do before I die,” Azran says, such as personal goals, and those in relation to health, finance and family.
Not surprisingly, one of the things in the list is to fly a plane. With that in mind. Azran is currently trying out the flight simulator.
And surprisingly, Azran wants to be a stand up comedian, to be on stage in front of thousands and make them laugh.
Clearly, an optimist, he says: “The best things have yet to happen.”

Sunday, August 9, 2009

JAL retires Boeing 747 classics

Japan Airlines retired its last Boeing 747 classic last week. Here are some pictures of the aircraft, a 747-300, before its last flight from Honolulu (hence the Hawaii garland!).Below are some others from JAL showing the -100, -200 and -300 in operation.


Southwest Airlines "Day in the Life of A 25 Minute Turn"

This video shows you what life is like working on the ramp at Southwest Airlines.

Virgin Atlantic's 25th Anniversary video

To help celebrate 25 years since the launch of Virgin Atlantic, the airline has produced a short video featuring some of the highlights and iconic imagery that has marked Virgin Atlantic's colourful history.

Friday, July 24, 2009

Double luxury - how the airlines are configuring their A380s


The arrival of the Airbus A380 has heralded new levels of cabin comfort for both premium and economy passengers, as launch customers opt to use the giant's volume to introduce innovations and increase personal space.
While the seat counts for many of the early operators have been known for some time, the full detail of cabin layouts and innovations have only been made public for three airlines - launch operator Singapore Airlines, latest customer Emirates, and the other 2008 debutant, Qantas. All three carriers have opted for layouts with fewer than 500 seats - the latter going with an ultra-spacious 450-seat configuration - but each has taken a different approach to how and where it seats its passengers across the two decks.
The A380 is in effect two widebody airliners flying one above the other, connected by a wide straight-though stairwell at the front and a spiral staircase aft. According to Airbus, the A380 has 50% more floor space than the standard-setting Boeing 747, but only 35% more seats resulting in an increase in space for each passenger.
The main deck - with a cross-section at arm rest level of 6.48m (21.3ft) - is easily the widest airliner cabin ever flown, with Airbus claiming a 36cm advantage (at arm-rests) over the 747's benchmark. This is the default location for the economy seats - all three airlines have some or all of their economy cabins there.
MAIN DECK ECONOMY
The A380's standard main deck economy layout is 10-abreast (three-four-three) with a 47cm-wide seat that Airbus says is more than 3cm wider than that offered on the 747 in a similar configuration. With narrower seats, an 11-abreast layout is feasible.
The upper deck has twin-aisle width, meaning that it lacks the cosiness of the top deck of a 747 behind the cockpit. With a width (at arm-rests) of 5.87m, it is similar in cross-section to that of the A330/A340 - although with a more pronounced upper curvature. The deck is the natural location for business class - while some economy/premium economy seats can also be found there - but only Emirates has so far put first class on the upper deck.

LARGEST CUSTOMER
The Dubai carrier, which is the largest A380 customer with 58 on order, inaugurated A380 revenue services on 1 August between Dubai and New York. It has three configurations for its fleet, with initial aircraft being delivered in a 489-seat layout, while later aircraft will have either 517 or 604 seats.
"I think when passengers get on board - premium and economy - they'll have a great experience. It's light, it's spacious, and it's airy - even in economy," says the airline's president Tim Clark.
Unlike SIA and Qantas, Emirates has chosen to make the upper deck entirely premium as part of the airline's philosophy to segregate first- and business-class passengers from economy immediately they set foot in its Dubai airport hub. "When our new terminal is open in Dubai, the boarding for the premium passengers will be straight in to the upper deck," says Clark.
The result is that Emirates has the lowest upper-deck seat count at 90 - 14 first-class suites and 76 business class.
The airline has adopted the area either side of the forward stairwell for a world first on an airliner - a pair of on-board showers for first-class passengers.
While the plumbing for the showers was "a masterpiece of engineering", Clark says the innovation's real challenge will be managing the allocation of "25min slots" for use of the facilities to first-class passengers.
"Managing that is probably going to be the most complex aspect, because we think they're going to be very popular," he says.
"The shower operates for 5min. There is an indicator light by your head that moves from green to amber to red to show how long you've got left."
SIA, which operated the world's first A380 revenue service in October last year, now has five of the 471-seaters in operation, serving London, Sydney and Tokyo from its Singapore base. A further 14 are on order.
SIA's A380s have a three-class layout, but the airline is quick to point out that they do not have a first-class offering: "We don't have first class on the A380," says SIA. "Our premium cabin is the 'Singapore Airlines Suites', and we are not positioning it as first class."
SIA says it has located the 12 suites on the main deck rather than the upper "because the [greater] space available suits them well. The suites are wider and larger than those of our competitor, and fit the widest cabin space available, which is on the main deck, not the upper deck."
Qantas will introduce its first of 20 450-seat A380s into service on 20 October between Melbourne and Los Angeles, following delivery later this month. Sydney-Los Angeles services will begin on 24 October, while Singapore and London are due to come on line by early next year.
The aircraft have a four-class configuration: 14 first, 72 business, 32 premium economy and 332 economy. The Australian flag carrier's executive general manager John Borghetti says that its A380 interior, designed exclusively for Qantas by Australian industrial designer Marc Newson, would set a new benchmark for the airline: "Qantas has combined intelligent design with functionality to deliver more space and comfort in every cabin."
Following the example of SIA, Qantas opted to make use of the wider girth offered on the main deck for its first-class cabin, which comprises 14 "private suites" three abreast incorporating a seat manufactured by B/E Aerospace's VIP jet group "that swivels into an armchair and a fully flat, extra long and very wide bed", says Borghetti.
On the upper deck of the Emirates A380s behind the first-class cabin are 76 business-class seats arranged in a four-abreast (one-two-one) layout, with each one including its own "mini-bar". Emirates describes the layout as an example of "intelligent seating", because all the seats have direct aisle access.
The middle seats alternate between being side-by-side with the mini-bars outboard, or apart with the mini-bars between them.
MINI-BAR
Similarly, some window seats have their mini-bar on the outer (aisle) side, while others are between the seat and the cabin wall. As such the A-E-F-K seat positions in one row alternate with the B-D-G-J positions in the next.
The configuration means about half the business seats have a reduced personal space compared with the other half, but Emirates does not intend to offer a fare differential. Because the A-E-F-K row consists of window and central positions, requiring access from the aisle, the site for the on-aisle B-D-G-J seats is around 20cm shorter than that for their counterparts.
This reduces the overall length of the fully reclined bed and brings the in-flight entertainment screen closer to the passenger by the same distance. Emirates service-delivery chief Terry Daly says that the carrier does not believe this will be an issue with passengers, however, adding: "We won't be differentiating [the fares]."
Located on the upper deck between the rear of the business-class cabin and the aft galley is a bar area for Emirates premium passengers. The lounge incorporates two settees as well as a large flat-screen display showing live video from the camera mounted high in the A380's tailfin. One A380 passenger describes it as having the feel of the "observation lounge" found on cruise liners - unsurprising as the bar was the brainchild of Clark, who is fond of all things maritime.
SIA and Qantas have their business class cabins upstairs, along with some economy and/or premium economy seating. SIA's upper deck has 148 seats - 60 business and 88 economy. "The upper deck is very well-suited to positioning of the business class cabin, with its one-two-one fully forward facing configuration," says the airline.
Qantas's upper deck has 104 seats - 72 business-class seats in three cabins, and 32 premium economy at the rear. The business-class seats are configured in a six-abreast two-two-two layout and Qantas says they are enhanced versions of the existing "Skybed sleeper seat offering a longer, fully flat bed with enhanced cushioning, a larger in-arm entertainment screen and additional storage options".
PRIVATE LOUNGE
Borghetti describes the private lounge area on the upper deck of the aircraft as "a key feature of Qantas A380's Business cabin". Located in the vestibule the right of the forward stairwell, this lounge features leather sofas, a self-service bar offering snacks and drinks, large video monitor with laptop connectivity and a feature display cabinet.
The aft part of the Qantas A380 upper deck is given over to the airline's new premium economy cabin offering "more space, comfort and an enhanced level of service". Seats are configured in a seven-abreast, two-three-two layout and passengers have access to a self-service bar offering snacks and soft drinks in addition to the regular meal service.
The downstairs on Emirates A380s is an all-economy affair, with 399 seats arranged in four cabins - the majority of the seats in the typical A380 main deck are 10-abreast in a three-four-three layout. Clark describes the cabin as "very special" and points out that the width would have allowed the airline to stack the seats in 11 abreast layout. "There's plenty of room for people to move around," he says. "The door-entry areas are very spacious as they don't have any seats around them. You'll get a high degree of mobility in flight."
Emirates is to test a lighter seat foam for economy as part of a weight-reduction study, which could save up to 500kg (1,100lb) on the A380. The trial will include pressure tests to gauge the density of the foam, how much it decompresses and how it regains its firmness.
SIA says that its A380 economy seating has been slotted in where the "space remains on the upper deck" behind business, while the bulk of the seats are located aft of the suites on the main deck.
Qantas's main deck contains 332 economy seats in three cabins behind first class, with four self-service bars similar to that in premium economy upstairs.
Qantas and SIA have adopted the standard A380 crew rest location plan, with the two flightcrew compartments located behind the cockpit and the 12-berth cabin crew module below deck in the forward part of the rear cargo hold where it occupies the space of two pallets. Airbus also offers a 12-berth upper-deck cabin crew rest module that slots in at the back of the cabin behind doors three.
CREW REST
Only Emirates' "long-range" configured 489-seat A380s have a crew rest zone, which is at the rear of the main deck in the centre of aft economy cabin. The space freed at the front of the main deck by the elimination of the flightcrew rest zone has been used for three lavatories. Clark says the decision to put the cabin-crew rest on the main deck was basically to preserve cargo capacity. "There is not much volume on the bottom deck," he says, adding that cargo can account for up to 20% of the airline's overall income.
The airline is due to take its first "medium-range" configured A380s next year that will differ mainly in that the crew rest zone will be removed and replaced with 28 economy seats, says Clark. These will be used on sectors of less than 12h.
From 2010, Emirates will introduce A380s with a two-class cabin layout seating 604 passengers - 60 business and 544 economy. These will be used on "regional" routes of up to 6h from Dubai.
Meanwhile, SIA says it has not ruled out changing its A380 seating on later deliveries: "The configurations for our A380s are determined for the first order of 10. The layout for the next order of nine can be settled later, and we'll use the early feedback and market data from operating the routes we're now flying to determine whether we want to make adjustments or changes."
By year-end, passengers will be able tocircle the globe in a multitude of ways aboard the world's largest airliner. While the cabins may lack the on-board bedrooms and duty-free shops once promised by the marketeers, the launch carriers have incorporated some clever innovations to make flying by A380 a memorable experience.

Sunday, July 19, 2009

Malaysia's Air Asia Sponsors NFL's Oakland Raiders

What could have prompted Malaysian budget airline AirAsia to sign a sponsorship deal with the Oakland Raiders of the NFL when it does not even fly to the U.S? Well, according to Air Asia CEO Tony Fernandes, it’s all part of his plan to build a global branding image. “We certainly confused the world today” Fernandes said.

But the arrangement isn’t really so confusing. Having already cracked the U.K. market with flights to London, Fernandes is now setting his sights on the U.S. Though Air Asia hasn’t formally made an application to the FAA yet, he hopes to fly across the Pacific soon. The likely first destination? Oakland. In fact, Air Asia has already painted one of its Airbus A340s with Raiders livery and it is running a contest in Asia to fly 1000 fans to Oakland for the opening Raiders game in September. It doesn’t bother Fernandes that the Raiders haven’t had such a great record lately, nor does the fact the American football doesn’t have much of a following in soccer-mad Asia. He’s also not the first Asian executive to sponsor sports teams in the U.S. even when it doesn’t market there. Chinese sportswear maker Li Ning, sponsored the U.S. Olympic Ping Pong team last summer, even though it hasn’t started selling its shoes in the U.S. yet.

Fernandes has never been one to follow convention, which is probably why his scrappy upstart airline has become such an extraordinary Asian success story. Back in 2001 when the region was reeling from the Asian Financial Crisis, he took a bankrupt carrier and relaunched it with just two planes flying out of Kuala Lumpur. Since then Fernandes has ramped up to 81 aircraft and 122 destinations in 16 countries — often smaller cities others had ignored, pioneering budget aviation in Asia. He also took the company public. This year he expects to carry 24 million passengers in 2009, up 30% from 2008. With that kind of track record, I wouldn’t be in the least bit surprised if Air Asia starts giving U.S. international carriers a run for their money long before the Raiders make it to another Super Bowl.

Monday, June 8, 2009

USAF Thunderbirds


From their fabled past to their storied present, the United States Air Force Air Demonstration Squadron is the premier demonstration squadron of the most elite air and space force the world has even known. They are the best of the best:U.S. Air Force professionals teamed together to present precision aerial maneuvers that exhibit the capabilities of modern, high performance aircraft and the high degree of professional skill required to operate those aircraft.

The demonstrations themselves are unimaginable before you see them and unforgettable afterwards, but that is only a small fraction of what this team represents. The Air Force is engaged in global operations every day, fighting the Global War on Terror, defending their homeland, providing strategic deterrence and giving their nation unparalleled global vigilance, reach and power.

This year, the Thunderbirds celebrate 56 years of representing the more than 500,000 Airmen, National Guardsmen and Reservists worldwide. Whether at home in Las Vegas or at an air show on the other side of the world, the team embodies the same pride, precision and professionalism required to achieve uncontested air dominance anywhere, anytime.
I was there to watch this team at Kansas City Air Show 2004.


Sunday, June 7, 2009

Boeing: Realising the 787 dream

Roughly a year ago, Boeing was fighting its way out of a production paralysis in 787 development, marked by parts shortages and design changes, along with a fight to regain control of the supply chain.
But even as the global credit crisis has hit the industry, design changes have begun to slow and Boeing's first flight-test Dreamliners have emerged from the nightmare, ready to perform.
In spring 2008, three of six flight-test aircraft were in final assembly. The programme was showing signs of forward motion, with a slate of milestones laid out for Boeing to regain credibility by demonstrating forward progress on a predefined timetable.
By 1 July 2008, then-787 programme general manager and vice-president Pat Shanahan said ZA001, the first flight-test 787, would have achieved power-on. Final assembly of ZA003 and ZA004 would be under way, and all first-flight hardware would be qualified and ready for first flight by the year-end.
While June saw power-on for ZA001, a major milestone in bringing the 787 to life, that month also brought news of a production mishap at the Global Aeronautica facility in Charleston, South Carolina, Boeing's 50/50 joint venture with Alenia Aeronautica. A contract employee's use of improper fasteners damaged the skin of the aircraft, resulting in a delay in delivery to Everett of the centre fuselage for ZA004.
By mid-summer, the aerospace community was gathering at Farnborough for the biennial air show. Boeing appeared confident, but had no target for final assembly to begin on its fourth 787 test aircraft and the programme chief was saying publicly he had yet to receive the brake-control monitoring software from Crane Aerospace, a unit of GE Aviation.
IMPROPER VERIFICATION
Behind the scenes, Boeing and Crane were struggling to complete the software because of improper verification conducted by Indian company HCL. Sources say the software, which was delivered to Everett prematurely, caused feedback loops that crippled the brake-control system in systems integration laboratory testing. Crane's budget for the programme ballooned more than 10 times after requiring massive upfront costs to straighten out the situation, say those directly involved in the software development.
The "blue label" brake-control software was delivered to Boeing in late October, with the formal "red label" version two weeks later. But by last February, Crane said a further redesign was required because of higher-than-expected brake temperatures interfering with remote data concentrator units restricting aircraft turnaround times in certain conditions.
As the summer drew to a close, ZA004 final assembly was under way, but Boeing's list of 787 challenges continued to grow, even as the pace of work on ZA001 was moving rapidly, but not swiftly enough to meet the end-of-the-year target. Assembly completion of Dreamliner One had slipped more than six weeks from its original target of late August to early October, pushing first flight forecasts into the early part of 2009.
As Boeing worked to correct highly scrutinised design and supply chain issues, it was dealt another blow when the airframer's largest labour union, the International Association of Machinists and Aerospace Workers, authorised a strike on 3 September, the second such sanction in three years. The 27,000-strong membership ground Boeing's commercial product lines to a halt for 57 days, disrupting not only the 787 schedule, but many airlines that were expecting new aircraft deliveries.
Within days of the machinists returning, Boeing announced it would not be able to meet its 2008 787 first flight date, blaming the strike, although the company had already been behind its revised schedule even before the action, say multiple programme sources.
The programme suffered yet another setback when it was revealed that roughly 3% of the fasteners installed across all aircraft, an amount numbering in the thousands, were improperly installed due to a poorly written specification. The 787 was grounded again, with production frozen until the fasteners in the critical locations could be removed and replaced. The latest problem reverberated through the supply chain, halting work on supplier structural sections while fasteners were replaced.
Across the factory, the 747-8 was suffering as resources were diverted towards the 787. Design changes on that aircraft were taking their toll on the supply chain's ability to keep up. Eventually, Boeing would be forced to delay the entry into service of its first 747-8 freighter by as much as six months.
LEADERSHIP SHAKE-UP
Along with a revision of its first 787 flight and delivery schedule to the second quarter of 2009 and the first quarter of 2010, respectively, Boeing shook up its leadership team, promoting programme manager Pat Shanahan, and replacing him with head of Missile Defense programmes Scott Fancher, who became vice-president and general manager of the 787 programme. Fancher served as Shanahan's number two when he was responsible for the company's Missile Defense programmes.
Shanahan was tasked to run all aircraft programmes in a significant realignment that included bringing the 787 under the Boeing Commercial Airplanes umbrella of oversight. Previously, it was its own entity and operated separately from the legacy programmes.
Shanahan replaced Carolyn Corvi, whose departure came as a significant surprise to those inside and outside Boeing. Industry analysts and programme staff expressed surprise at Corvi's premature departure, because she was a major engine of productivity and innovation for jetliner production at Boeing.
As 2008 drew to a close, the 787 was again a programme in transition - new leadership, production challenges and an uncertain economy lay ahead.
When 2009 arrived, Boeing was again finding its footing, preparing for the arrival of its fifth flight-test aircraft for final assembly. On 2 January, ZA001 left the 787 final assembly line in Building 40-26 for a spot two bays down for final fastener rework and systems testing. The aircraft was repowered-on at the end of January, signalling a restart of the push towards its first flight.
The early months of 2009 saw the arrival and the start of final assembly of the final two flight-test aircraft, ZA005 and ZA006.
The programme has been steadily gaining momentum since March, when all the aircraft systems were elevated to flight status. Boeing has found the aircraft systems performing beyond expectations, completing testing milestones faster than expected.
Programme leaders say the past two years have not only been devoted to production issues, but revising the design of many parts of the aircraft to improve systems maturity.
For example, in April, Boeing completed the factory gauntlet - the first of three closed-loop system testing phases - sooner than expected. ZA001 was run through a full simulated first flight profile with chief project pilot Mike Carriker at the controls.
"We were able to accomplish that testing in about half the time we had originally planned, demonstrating increasing maturity of the systems on the aircraft and reliability and repeatability of those systems," says Fancher.
Static test frame ZY997 completed all requirements in support of the first flight in late April as the limit load test that saw the test airframe's wings deflected about 5.2m (17ft) or 120-130% of maximum load.
After running the gauntlet and completing a series of gear swing tests, ZA001 left 40-24 and transitioned to the paint hangar for a comprehensive aqueous wash of its fuel tanks, to have final instrumentation installed and close out the wing tanks ahead of fuel tests.
Meanwhile, in early May, ZA001 left the confines of the paint hangar and officially moved to the fuel dock for fuel system testing and validation of the internal power distribution capability, which included the first start for the Hamilton Sundstrand auxiliary power unit two days ahead of schedule, says Fancher.
By late May, the aircraft moved from the fuel dock to the flight line for myriad tests, including the first electric start of a commercial engine on a commercial aircraft when, on 21 May, the twin Rolls-Royce Trent 1000 engines were spooled up.
Boeing is confident its flight-test programme will get under way this month, pointing to additional consolidation of preflight testing by shortening the final gauntlet testing, while expanding the intermediate gauntlet to meet its latest schedule commitment of flying the first 787 by the close of the second quarter.
CHALLENGING ROAD
For Boeing, the road ahead for the 787 is no less challenging than the path that brought the airframer to this point.
Boeing has laid out an ambitious six-aircraft flight-test plan - expected to start this month - to achieve US Federal Aviation Administration, European Aviation Safety Agency and Japanese JCAB certification by the first quarter of 2010.
Key to achieving certification in eight to nine months, as Boeing sees it, is a change in the methodology of its test campaign. The flight-test team has had 22 months of additional time to prepare for the 6,800h campaign, which was originally set to begin in August 2007.
Boeing's changes in flight-test methodology include recognising efficiency improvements it could introduce in advance. The amount of time allocated for flight-testing and for unknown contingencies or "discovery layups" is based on conservatively held assumptions from previous programmes.
"Where we do have an ability to change is how much time we take for planned layups and when we do ground tests," says Frank Rasor, 787 test programme manager.
Boeing believes it will save significant time by using prefabricated ice shapes rather than having to search for known icing conditions in flight. Also, it is using a pressure valve system for flight load survey, rather than the previous system that took 30 days to install during flight testing. The new system, including prefabricated pressure belts with internal electronics, reduces layup time to seven days.
Rasor says Boeing built in 15-20% additional margin into the flight test for "contingent testing, so that would include the availability of any airplane, any time".
In April, Boeing had submitted 2,280 compliance reports - nearly 60% of the total required by the FAA for certification under Part 25 regulations for the programme. Of the 3,900 "deliverables" required by the FAA, only 275 directly depend on data from flight-testing.
The company has six flight-test aircraft in various states of completion at its Everett facility and two further ground-test airframes for static and fatigue trials.
Static airframe ZY997 will undertake a robust test programme in the middle of 2009 to support flight testing. Full-scale ground testing will continue on ZY997 into the middle of 2009 to support flight-testing of the fatigue airframe, ZY998. Tests on the second airframe are supporting certification of the aircraft through 165,000 simulated cycles tested over three years to understand the long-term wear-and-tear on the aircraft.
Four of the six flight-test aircraft will be fitted with Trent 1000 engines, including ZA001, the first 787 to fly. These first four test aircraft will account for most of the programme's flight test hours, with 2,430 flight and 3,100 ground hours, respectively.
ZA002 will support systems testing, with ZA003 validating cabin architecture. ZA004 will validate range and performance, and aircraft three to six will all support 207-330min extended twin-engine operations certification.
Two additional flight-test aircraft, ZA005 and ZA006, will be powered by General Electric GEnx-1B engines for 670 flight and 600 ground test hours. Much of the testing for GEnx-1B certification will be done primarily by ZA005, which will be equipped with a full data systems and ZA006 will follow on with additional lightning protection tests.
POINT TO POINT PHILOSOPHY
When Boeing envisaged the 787, it created a mid-size aircraft that embodied the company's point-to-point philosophy underscored by unparalleled range at entry into service.
By bypassing traditional hubs, Boeing's belief is that the 787 could enlarge the number of direct city pairs offered by airlines.
Only one aircraft previously boasted such promises of ranges of more than 14,800km (8,000nm) in a first-generation technology package: Airbus's A380. Before its first flight, the A380 was 4-5t overweight. The excess growth represented less than 1% of the total maximum take-off weight of 560t, although operators were still disappointed at the loss of payload range, once estimated to be as many as 50 passengers.
For the 787, an aircraft with a 220,000kg (484,000lb) maximum take-off weight, less than half of the A380, every kilogram matters that much more.
Boeing recently acknowledged that the first aircraft would be overweight, but has never specified by how much. The first production 787, aircraft seven, is expected to begin final assembly in June, and will be weighed to determine both the baseline weight and the extent of the weight gain.
Despite the expected shortfall, Boeing is committed to the performance of its early aircraft. "The bottom line is, we think that with the first block of aircraft, we'll have aircraft that do the missions our customers need, and as we continue to improve on weight, aerodynamics and engine performance going forward, that will only improve," says Fancher.
Boeing now advertises the range of the 787-8 as 14,150-15,170km, a reduction of about 550km from the first touted of range of 14,800-15,720km.
Bernstein Research said in a recent report that the first production 787s would be as much as 8% overweight, resulting in a 10-15% shortfall in range, putting the aircraft performance closer to 12,760km.
But Boeing says: "The conclusion on range is inaccurate." It claims the 787-8's range is closer to 14,800km than 13,000km.
Aircraft seven will be the first to incorporate significant weight reduction into the design. Most of the changes focus on removing weight from the wing. A second early blockpoint change is planned around aircraft 20 that will feature "broader weight improvements, including wiring", says Fancher.
In recent months, customers have expressed doubt about the 787's ability to perform as first promised. Andres Conesa, chief executive of Aeromexico, said in February: "The expectation was that the aircraft could go all the way to Greece [from Mexico City]. It has changed. Today we don't know the final conditions." The distance between Mexico City and Athens is about 14,000km.
In March, Shanghai Airlines openly considered cancelling part of its 787 order as Chinese carriers were working to renegotiate with Boeing on their early delivery slots. The carrier's chairman, Zhou Chi, was quoted by Bloomberg as saying the aircraft did not "fully meet the quality Boeing touted earlier".
It was revealed in April that many of the early 787 operators, including the five Chinese airlines that helped launch the aircraft's namesake in 2004, delayed early deliveries, moving many early production aircraft into the hands of launch customer All Nippon Airways. Also, the first six test 787s originally bound for ANA, Delta Air Lines and Royal Air Maroc, were no longer scheduled for delivery.
Many industry watchers suggested that the significant increase in weight contributed to the change, although Boeing says some customers opted for production standard 787s because they would be available earlier than refurbished flight-test aircraft. The change in the Chinese delivery schedule was later confirmed in April by airlines, including China Southern, announcing a deferral of both 787 and A380 deliveries.
WEIGHT REDUCTION
For Boeing, much of the future 787 weight reduction depends on understanding how the aircraft performs in flight - information that will not be known fully until the flight-test programme is well under way.
Programme sources indicate that many of the full-scale structure tests Boeing has conducted revealed significant structural over-engineering, with some areas exceeding twice the required strength for certification.
"What we focus on is getting this aircraft given how it is performing, and how the weight case, how the loads are distributed across the aircraft once it is built and tested, where can we go and incorporate more efficient structure to take weight out," says Fancher. "[Weight reduction] tends to be very specific actions, not a parametric approach and that's where our focus is on the -9 and the -8 improvements going forward."
Engine suppliers R-R and GE have been able to make use of programme delays to improve the performance of their respective powerplants.
After many months of additional development, GE expects its GEnx-1B engine to be at spec at entry into service, with additional aerofoils, a revised low-pressure turbine, and improved durability of the combustor.
For the Trent 1000 engine, R-R had an even higher hill to climb, with an acknowledged 4-5% shortfall in fuel burn. The manufacturer now says it will deliver what it calls the Build 4A engine, expected to be flight-tested by year-end on ZA004.
Build 4A features a revised six-stage low-pressure turbine, higher aspect-ratio blades, relocation of the intermediate-pressure compressor bleed offtake ports, and improved aerodynamics on the fan outlet guide vanes.
All these improvements will bring the engine within 1% of target specific fuel consumption by entry into service, and exceed cruise SFC by 0.5%.
Without aerodynamic data and route proving trials that can be gained only in the forthcoming flight-test programme, many of these performance estimates fall within a reasonable, albeit speculative, analysis.
Yet the contribution of technologies such as trailing-edge variable camber, raked blended winglets, drooping ailerons and spoilers, laminar flow optimised engine nacelles and additional engine performance improvements, all leave open questions until real-world data can deliver a conclusive verdict on aircraft performance.
"In the long run, this will be an excellent aircraft," said Steven Udvar-Hazy, chief executive of Boeing's largest customer, International Lease Finance, in March. "But I pity the airlines that get the first ones. Obviously those aircraft will not be the same standard as those 787s later on."
HERCULEAN TASK
By all outward appearances, Boeing has left behind the production paralysis that marked the first two years of the 787 programme, giving way to the herculean task of ramping up for an ambitious 10-aircraft-a-month production rate by the end of 2012.
What Boeing sees now are the opening years of what could be a three-decade or an even longer road to delivering several thousand 787s. Boeing holds orders for 861 787s from 56 customers. The key now is getting those aircraft built and into their hands as quickly as possible.
With suppliers unprepared to meet schedule commitments during the early phases of production, Boeing was forced to perform "travelled work" that was originally intended to be performed by suppliers, but instead was shifted to final assembly and delivery in Everett.
Fancher recognises the obstacles in front of him, but is bullish about beating the challenges. "We've got plenty of condition of assembly to improve yet, plenty of travelled work to pull through the system to get to a fully stable production system, but we're on track to make that happen, and every day we're seeing stability spread deeper and deeper into the production system," says Fancher.
He cites the body joins for aircraft five and six as a significant point of progress for the programme, beating the planned 21-day span time by two and seven days, respectively.
But even with this marked improvement in progress, key areas of the supply chain raise significant misgivings about Boeing's ability to reach 10 aircraft a month by the end of 2012.
Boeing's ability to assemble and deliver one 787 every three days ultimately depends on its supply chain's ability to deliver one shipset at the same rate to final assembly.
Industry analysts cite integration times of more than 300 days for the centre fuselage section by Global Aeronautica in Charleston as a potential "bottleneck" for the production ramp-up.
Global Aeronautica, which began as a 50-50 joint venture between Alenia Aeronautica and Vought Aircraft Industries, became half owned by Boeing when it bought Vought's share in March 2008.
The facility, which receives structural elements from Alenia, Kawasaki and Fuji, is now a two-line, five-station pulsing production system, with room for a third line expected to be activated during the coming ramp-up.
Boeing is keeping a close watch on Charleston and is keenly aware that flow times at Global Aeronautica are a key to supporting the production ramp-up.
"We do a difficult body join there from a complexity standpoint, three elements of the aircraft coming together at the same time," says Fancher. "We are learning about that join, about the tooling and the tooling concepts that were used as a basis of the design at that station, and have seven improvement plans in place that I status every week, for improving the flow at that location."
Boeing chief executive Jim McNerney says: "We have taken more direct control of that factory, which I think has moved along process improvements significantly and we're making good progress there.
"While it has represented a bottleneck, we are confident that it won't as we meet our production schedule."
Despite Boeing's growing confidence in its production system, the company still expects to see changes in how responsibility of its supply chain is laid out.
"Now, [switching suppliers] does happen and clearly, as we go forward, we'll look at some rebalancing of work scope as we sort through where work is most efficiently and cost effectively done but, by and large, the focus is on helping our supply chain succeed, not moving the work in a rapid fashion [with travelled work]," says Fancher.
To guide the ramp-up, Boeing has created a command centre for the 787's global production, called the Production Integration Center. On 9 December 2008, the centre became fully "operational on day one, all over the world in some form or another", says Bob Noble, vice-president of 787 supplier management.
The idea of the centre, in one form or another, says Noble, was always in the plan to co-ordinate 787 production, although when the supply chain failed to meet the ambitious ramp-up, Boeing gave the green light for the centre in March 2008.
PAINFUL HISTORY
The centre's mission statement belies both the painful history and lessons that have been learned from the acute growing pains during early production. It is: "To provide situational awareness, early issue detection and real-time problem resolution for the 787 Dreamliner production system."
Noble says that he does not believe Boeing could have avoided the production problems with the production centre had it been established earlier, because the lessons learned helped to create the requirements for the centre itself.
"We were able to build the room...with a full understanding of our production system and our needs. So chances the are, if we tried to build something two or three years ago, we probably would not have done this. We probably would not have got it as right as this really feels like."
Noble says the integration centre was born out of a need "to take advantage of the night", adding that opportunities were often lost to get to grips with production issues that arose in the daytime in Japan or Italy when it was nighttime in Everett.
"You can lose a couple of days just getting a problem identified," says Noble.
The integration centre ties in Boeing's seven major structural partners and delves deeper into the sub-tiers of the global supply chain. The facility constantly monitors conditions around the world, ranging from floods, earthquakes and tornadoes to riots and, recently, swine flu.
Boeing openly acknowledges the challenge ahead, although it sees the integration centre as the centrepiece to taking production of the 787 to a streamlined 24/7 operation.
"Problems will continue to occur," says Noble. "Every programme will always have some kind of problem; the object here is to know it quickly and be able to resolve it quickly."
__________________________________________________________

BOEING CLOCKS IN FOR BUSY DAY
The underpinning of Boeing's 787 testing is based on efficient use of the 24h clock, ensuring that no part of the day is wasted. Three shifts support the aircraft.
Boeing envisages a day beginning at 06:00 with the arrival of the test crew, followed by a pre-flight briefing 30min later.
At 07:00, each of the six flight-test aircraft will be released back to the flight-test crew after undergoing maintenance or preparations overnight, beginning the 8h testing block. By 08:00, the 90min pre-flight briefings will be wrapping up and the aircraft will be in the sky by 09:00 for a typical 5h testing block. By 14:00, the aircraft will head back to base for a touchdown at 15:00, followed by 2h of post-test debrief.
After touchdown, the aircraft will be handed over for 16h of overnight maintenance and preparation by the second and third shifts, culminating in the aircraft's 07:00 release the following day, for the process to begin again.
Boeing then runs preliminary analyses of the data gathered during the day, running from 17:00 to 21:00.
Boeing's Production Integration Center at the company's Everett facility will also support the Seattle flight-test centre during the overnight schedule by co-ordinating maintenance routines overnight to ensure the aircraft are flying again by the next morning, says Bob Noble, vice-president of 787 supplier management.

Friday, May 22, 2009

Interview: AirAsia CEO Tony Fernandes

We are stuck inside a busy restaurant called "Taste of Asia"at Kuala Lumpur's low-cost terminal for 20 minutes. A crowd has gathered because a rock star is in the house; his name is Tony Fernandes.

All it takes is for one person to tentatively walk up to the AirAsia chief executive and ask for a photograph. Fernandes adjusts his trademark red cap, shakes the passenger's hand, puts his arm around him and smiles widely with a thumbs-up as the camera clicks. He then turns to the passenger and says: "Thank you for flying with us."

Within seconds, dozens of AirAsia passengers -on their way to destinations as disparate as Bandung in Indonesia and Brisbane in Australia -leave their food and surround him. They are waiting to have a snapshot taken with the man who made their trip affordable, and possible. The 45-year-old Malaysian happily obliges everyone.

Welcome to the world of Anthony Francis Fernandes. In 2001, the man who spent much of his youth studying in England and playing schoolboy rugby, got out of a great career in the music business to plunge into a dream of running an airline. He mortgaged his house and, together with some friends and investors, bought AirAsia. Back then it was then a moribund Malaysian operation that cost 1 ringgit ($0.28) and brought with it 40 million ringgit in debt and two Boeing 737-300 aircraft.

He proclaimed that he would start Asia's first proper low-cost operation, and met polite smiles and condescending nods. He was seen as a maverick, who would crash and burn trying to take on the Malaysian and Southeast Asian airline and airport establishment. He has proven everyone wrong.

AirAsia is now the region's largest low-cost operator, with a network of 122 routes covering more than 65 destinations. It has carried over 65 million passengers since its inception and grown its fleet to 80 aircraft. It has gone public, ordered 175 Airbus A320s, started associates in Indonesia and Thailand, and finally secured access to Singapore after overcoming various obstacles. Fernandes and AirAsia have also helped to start AirAsia X, a long-haul, low-cost airline that has 25 Airbus A330s on order and will imminently sign a deal for around 25 Airbus A350s.

"For the first time, in 2009, we really see AirAsia's true potential," he says with a satisfied grin. "I've had a lot more white hair in the process, but it has been worth it." Many still think he is a maverick, but they add the "visionary"tag to that. AirAsia has grown beyond anyone's imagination - except, perhaps, his own - and has arguably done more than any other to unite the 10 members of the Association of Southeast Asian Nations.

He adds: "AirAsia has gone from a sparkle in my eye, to thinking that this could work, and then believing that we have arrived. It affects many lives and economies in a positive sense. We are no longer just a Malaysian ­carrier; we are an Asean airline."

The evidence is in Kuala Lumpur's low-cost terminal (LCCT), a 20-minute drive from the main Kuala Lumpur International Airport. It does not have flashy restaurants or fountains, but it packs in the crowds.

Imagine Kuala Lumpur's old Pudu Raya bus station -which in its heyday had hundreds of passengers arriving every hour from all corners of Malaysia, and Singapore and Thailand -and you get the idea. Simply substitute the buses with aircraft and include accents from every Southeast Asian country, with the Chinese, Indian, English and Australian twang thrown in.

"We're the only brand to promote Asean. It is not just about price, we brought points together like never before. Bandung-Singapore, Kuala Lumpur-Banda Aceh; it was not this easy to travel around the region until we started doing it," he says. It involved building the business up, and then doing "a helluva lot of lobbying and presentations" to convince governments it was better to open their doors, instead of protecting their legacy carriers.

"Commerce, rather than governments, drives Asean. Countries will always want more want tourists and traffic. Asean governments realised they had to open up or always play second fiddle to China and India," says Fernandes. "When you're AirAsia, carrying 24 million people, airport chiefs and tourism ministers realise it doesn't help them to protect national airlines after we talk to them."

Singapore, Southeast Asia's main air hub, is a prime example. It did not allow him to start an associate in the country, but he continued to lobby the government and proved the airline's value through its Malaysian, Thai and Indonesian operations. He still does not have a Singapore-based carrier, but finally has access to the country. AirAsia flies to five cities in both Malaysia and Indonesia, two in Thailand, and there are more to come.

Much of the success stems from AirAsia's work culture, which stresses innovation, openness and a never-say-die attitude. Its offices have few physical barriers between desks, there are no titles on name cards and everyone is encouraged to use first names. Cabin crew are pushed to develop their own personality, instead of conforming to preconceived notions about their role, resulting in a relaxed onboard environment. The CEO sets the tone. Anyone can walk up to "Tony", exchange a high-five, and offer a suggestion or just grumble about football. Talk to almost any of the 6,000-strong AirAsia staff, and a strong sense of ownership is evident.

"We're still a small operation, despite growing so fast, and that means everyone is valuable. At the end of the day, I would rather have 6,000 brains working for me instead of just 10. We are always innovating and we never stand still, and that has helped us," says Fernandes. "If there is a good idea, it can be implemented very fast as there is little bureaucracy. If there is a bad idea, we can kill it really fast too. That is how we do things that others may not try."The informal culture also helpskeep costs down, ever-important to a low-cost carrier. There are few personal assistants, the executives do not have drivers and Fernandes does not have a posse when he travels.

AirAsia has made tough calls recently, paying $115 million to exit fuel hedges last year and unwinding interest rate swaps, related to aircraft term loans. The short-term pain will save money in the longer-run and "we won't have a noose around our necks going forward over this year", says Fernandes. "We had to think on our feet. People initially criticised us, but we turned out to be right. The company's culture allows us to move fast when it comes to making decisions like those." As a result, Air-Asia had a unit cost of 3.08 cents per ASK in 2008, 10% lower than the previous year. "That is the toughest part of the business and our margins are among the best in the world."

Retaining focus on the key business helps, and that remains serving markets within four hour's flying time of its three hubs. "I'm still scratching the surface in Southeast Asia," he says. "I'm still small in Thailand and Indonesia, relative to their population sizes, and we're eyeing joint-ventures in the Philippines and Vietnam. We've faced obstacles in Vietnam, but we are patient. It took us seven years to get Kuala Lumpur-Singapore, and a lot can change in Vietnam in the next five years."

India and China are next in his sights, but that is in tandem with AirAsia X, which will serve the markets four to eight hours out of Kuala Lumpur. These include destinations in Japan, South Korea, Australia, the United Arab Emirates, Bahrain, India and China.

Fernandes is not involved in AirAsia X's day-to-day operations, even though he gives a lot of input into its strategic direction. Walking up one of the airline's new A330s, which is about to take off for Melbourne, and meeting the passengers, he becomes animated. It is clear that this operation is close to his heart. After all, the long-haul operation was his original plan until former Ryanair executive Conor McCarthy, who became an AirAsia investor, persuaded him that the short-haul market had better prospects.

He admits it was the right move: "AirAsia X is a wonderful addition; it brings the brand to another level. Look, it is sexier flying to London and Melbourne than Bandung," says Fernandes. "But without AirAsia's short-haul market and the connectivity to Southeast Asia it offers, there would be no AirAsia X. That is why it will be hard for anyone else to emulate it. Look at Oasis Hong Kong - what else did they offer apart from flights to London? Is it any surprise that they had to shut down?"

Keeping AirAsia X as a separate company was a "clever step" that protects AirAsia, which has only a 16% stake in it, he adds. Aero Ventures, which Fernandes started with other prominent Malaysians and Air Canada's Robert Milton, owns 48% of the long-haul operation. The other investors are Richard Branson's Virgin Group (16%), Bahrain's Manara (10%) and Japan's Orix (10%). "We work on lots of things together, but we have not put down any money since we started it up. It is an independent business that derives its own cash and is profitable."

AirAsia itself, which listed on Bursa Malaysia in 2004, posted a net loss last year - but Fernandes says the first quarter of 2009 was profitable. Its shares have had a rough time on the Kuala Lumpur stock exchange and last year, when the price fell to around 0.80 ringgit, Fernandes and the other founders considered taking the airline private. They abandoned that plan after credit became tight. "We saw value in the price at the end of last year, and we still do, but we could not raise the money," he explains. Even if the average Malaysian shareholder may not see value, others could. Branson is mentioned as a possible investor, but when questioned about it Fernandes says with a laugh: "Ask Branson about that one!" Equity partnerships with other airlines, however, are a possibility if they bring tangible benefits.

"The world is a very small place. Will there be combinations between airlines? Sure. Will we consider something? Yes, if it makes sense. Air France-KLM is a good example of how something like that can work, but the combination must add value to shareholders. The reality is that many mergers are driven by ego or airline necessity but, truthfully, most have not done a good job of it."

Fernandes concedes he may have to step down if there is a change in ownership, but he insists it may not be too hard. "If someone else feels that they can do a better job, sure. One of the great things is to know your sell-by date. Many people in Asia cannot let go. You are not a good leader unless you have a succession plan." However, he adds with a grin: "I'm not looking to leave any time soon. There's still a lot to do."

Fernandes gets a kick out of overcoming challenges, and there are still plenty of them. The biggest, he says, are airport operators, in particular Malaysian Airports, which runs KLIA and the low-cost terminal. MAB has successfully lobbied the government, preventing AirAsia from building its own low-cost airport near Kuala Lumpur. Instead, it promised it would expand the LCCT by 2011. A visibly exasperated Fernandes points out that they made similar promises in the past and nothing happened. The existing low-cost terminal is already bursting at its seams.

"Airports are parasites and, in Asia, their pricing is not transparent. Low-cost carriers should not be levied the same fees as the full-service airlines. We bring in a lot more volume, and there is plenty of ancillary income - just look at how crowded the shops and restaurants in our terminal are," he says. "I am an aggressive entrepreneur, but Asian airports are slow to respond. If anything stops our growth, it is the airports. If we have to defer aircraft orders, it is because of them. They curb our potential"

If the airports meet his ambitions, he says the possibilities are mind-boggling. "Southwest Airlines has 400 aircraft and a market of 300 million. On top of that, in America, you can drive from one end to another and they have pretty good train services. We don't have that over here," Fernandes points out. "Air-Asia is in a playground of 600 million people in Asean. If you add India and China, the other key markets we can touch, you can easily add a billion people, maybe more. That is Air-Asia's potential, and we aim to get there."

PLAYING THE GAME

As a young boy, Tony Fernandes dreamt of representing Malaysia in the Olympics. He played rugby, hockey and cricket while studying in England, and now loves squash and football. It is hardly surprising AirAsia is involved in sports sponsorship. It partners the Williams Formula Oneteam and sponsors the shirts of English professional football referees. It also worked with Manchester United and considered shirt sponsorship.

West Ham United fan Fernandes, says: "As a low-cost carrier, we constantly battle the image that we are low-quality. Our involvement in F1 and professional football helps. F1 races take place in the cities that AirAsia X plans to fly to, and English football is popular in Asia and shown all over the world. We won't be able to carry 24 million passengers without marketing." AirAsia gets good value through these deals, says Fernandes, but he is coy on the cost: "Let's just say that those in F1 and football are very good at making money!"

CUSTOMER DIVERSITY

AirAsia's main customers are still those who could not previously afford to fly, but its passenger profile is changing as it adds destinations and increases brand awareness.

"The economically disadvantaged are there, and the main market is still the mass market -that will never change -but we are reaching markets that we never dreamt of," says Fernandes. "Goldman Sachs executives in Singapore, for example, are very happy that we opened up Singapore-Bandung as it allows them to them to meet clients in the Indonesian city. Our corporate business has gone up 400% because companies want to save money and, once they fly us, they don't want to change."

Fernandes' airline is transforming the perception of low-cost travel, giving rise to a diverse cross-section of passengers. The AirAsia chief executive says: "We show that low-cost does not mean low class. In the Jakarta-Kuala Lumpur flight, you'll find women with diamonds sitting beside maids. You could not see that before. That shows we're reaching everyone."

What does he think AirAsia means to its customers? "Nobody has really asked me that before," he says, pausing for the first time in the hour-long interview. "I think they are really proud to travel in an airline that came out of nowhere and provides a service that they did not have before. AirAsia made air travel possible for millions; it's their airline. Every day that I walk around the terminal, people come up and says thank you. If you run an airline, there is probably little more that will make you more happy."