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AirAsia Says Ready To Lower Fares To Stimulate Market

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SEPANG – Low-cost airline AirAsia says it is ready to lower its air fares to stimulate the market and contribute to greater passenger volume.

AirAsia Group Chief Executive Officer Tan Sri Tony Fernandes said it would be a ‘huge bonus’ for the airline if the fuel price drops further next year, as it would cut costs.

“However, oil prices change so quickly, let’s see what happens. The message is that we want to lower fares and stimulate the market.

“If the fuel price continues to drop, we may also get rid of the fuel surcharge to get more people to fly.

“AirAsia is about reducing costs and air fares so more people can fly,” he told a press conference after the ground breaking of AirAsia’s new headquarters here today.

Construction of the airline’s new corporate building RedQ (short for RedQuaters) will commence next month and is expected to be completed in June 2016.

The RM140 million six-storey building will have a gross floor area of 613,383 sq ft and can accommodate 2,000 employees. It will house both AirAsia and AirAsia X’s corporate offices and operations divisions, which are currently separated between the Low Cost Carrier Terminal and a temporary operations office at [email protected]

Fernandes said 2015 would be a promising year for AirAsia, which is looking forward to working closely with Malaysia Airports Holdings Bhd (MAHB) to increase passenger volume.

“We have been through a tough period with the problems with some airlines, but that has come to an end.

“I foresee our fourth quarter is very strong, about 11 per cent, with our fares substantially higher than last year’s,” he said.

He added that AirAsia would slow its capacity growth, adding only five planes next year, although not for its Malaysian operations.

“2015 is all about a little bit of consolidation and maximising our bottom line and squeezing our assets.

“The AirAsia family has now grown tremendously and we look forward to completing our brand new home,” he said, adding the new global headquarters would better facilitate AirAsia’s growth and future plans. – BERNAMA

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