ARC NEWS
Clarifying the AirAsia Airline Group
January 14, 2015
The recent fatal accident of Indonesia AirAsia flight QZ-8501 has produced a large amount of media coverage, much of which has confused Indonesia AirAsia, the airline that operated QZ-8501, with the Malaysian based AirAsia and its affiliated airlines.

While the other AirAsia airlines have similar livery and share financial ties, each of them operates their own fleet of aircraft, maintain separate operations, and come under the oversight of different regulatory authorities. As a result, each has a separate level of risk, ranging from low to high risk. There are nine separate airlines currently operating under the AirAsia brand and livery:

• AirAsia (Malaysia)
• AirAsiaX (Malaysia)
• AirAsia India
• Indonesia AirAsia
• Indonesia AirAsiaX
• AirAsia Philippines
• AirAsia Zest (Philippines)
• Thai AirAsia
• Thai AirAsiaX

The ‘X’ brand indicates that the airline is long-haul operator. We would encourage you to contact us if you are having any difficulty verifying which carrier serves the routes your organisation uses. The Malaysian based AirAsia operates a fleet of 76 young Airbus A320-200 aircraft, have significantly more operations than Indonesia AirAsia, and in the past 12 years have had 4 minor non-fatal accidents and 3 incidents.

Additional Detail:
While several of the operating procedures and management systems are likely to have been harmonised between the various AirAsia airlines, such as airfare distribution being centralised via a single website, there are several factors which between each AirAsia airline division:

Regulatory Oversight
Each country has differing levels over regulatory oversight. Both Indonesia and the Philippines are currently listed on the European Unions banned list, which prohibits airlines based in these countries from operating to, and within, European airspace.
Regulatory oversight in Malaysia and Thailand has not been similarly questioned, and both countries have been assessed by the FAA’s IASA program as meeting their required standards. As a result, it would be reasonable to assume that the AirAsia divisions within those countries will be influenced by a different operating environment.

Fleet Age and Aircraft Type
Accident data show that, in the early years of operation of an airline, and during the early life of an aircraft within an airline, safety performance improves during the first eight years of operation. After that, as the aircraft age, risk levels slowly increase. Additionally, the type of aircraft operated can also affect an airline’s risk rating, as certain aircraft types are better suited to scheduled passenger transport than others. As a result, each of the AirAsia airline divisions will carry an individual risk profile, as each airline division operates different mixes of aircraft types and have varying average fleet ages.

Financial Performance
Each AirAsia division also reports its own individual financial results. While there is not always a direct link between an airline’s financial performance and its ability to maintain, or enhance safety standards, an airline’s financial performance can often reflect its capacity to re-invest in safety initiatives and allow it to further improve its safety program. As a result, it is important to consider the individual results of each AirAsia division, as this may influence its capacity to further invest in safety initiatives.

Maintenance Providers
The level of national approvals and extent of aircraft maintenance certifications of a particular maintenance provider can aid in illustrating the maintenance providers ability to adhere to internationally recognised standards in quality and safety. This can in turn assist in determining the adequacy and standards of an airline’s maintenance arrangements. Several of the AirAsia airlines utilise different maintenance providers, which are generally based in their home countries. As a result, the standards of these facilities may vary between providers and, therefore, need to be considered on an individual basis.

These, and a number of additional country-specific factors, can all influence the overall risk of an airline. As a result, travel on each airline needs to be evaluated separately.


Ukraine closes three airports due to deteriorating security situation
December 19, 2014
After prolonged and escalating civil unrest in the eastern and south-eastern regions of Ukraine, the Ukrainian state aviation administration has moved to indefinitely suspend the operations of three major airports located with these regions. The airports include Kharkov International Airport, Dnipropetrovsk International Airport and Zaporozhye International Airport. These airport closures follow the closure of Donetsk Sergey Prokofiev International Airport in May 2014, after pro-Russian rebels and Ukrainian troops entered a large-scale conflict over gaining control of the airport facility.


MASwings to be relaunched as a Low-Cost Carrier
December 19, 2014
In early December, the newly appointed state-owned parent company of MASwings, Khazanah, announced that the airline would be reorganized and repositioned as a Low-Cost Carrier. The airline currently acts as a regional feeder airline for the Malaysia Airlines mainline operation. Malaysia Airlines, which suffered two fatal accidents in 2014, was recently re-acquired by the state in an attempt to restructure the airline and return it to profitability. As a part of this restructuring process, it has been noted that MASwings will be re-launched as an independent budget carrier. This process is reportedly planned to commence some time in 2015.


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