AirAsia to continue aggressive marketing

LOW-COST carrier AirAsia Bhd (5099) will continue to increase capacity and market its routes aggressively to ensure its revenue remains robust, said its top official.

Group chief executive officer Datuk Seri Tony Fernandes said with its additional flights to Singapore now, he was certain that Kuala Lumpur (KL) can grow to be the largest hub in Southeast Asia.

"Just today we had two passengers from Singapore who stopped over here before flying off to Langkawi. So the fear that Singapore will be attracting more passengers is baseless," he said.

AirAsia now has seven daily flights between KL and Singapore.
While Fernandes did not discount that its fourth quarter will be impacted by the current turmoil in Thailand, he said AirAsia's load factor was better due to its recent no-fuel surcharge initiative.

"In a time like this, we have to constantly find ways to stimulate the market instead of not doing anything," he said.

Fernandes said AirAsia had not seen a dip in forward bookings for flights to Bangkok.

"It is still quite strong. You have to remember that Thailand has gone through many difficulties and overcame it all," he added.

AirAsia has not flown in or out of Bangkok in the past six days after Thai authorities closed Suvarnabhumi International Airport after anti-government protesters storm the terminal.

It has sent two rescue flights today for passengers still caught there.

Fernandes said all 15 AirAsia planes located at the Suvarnabhumi airport are now residing in three other Thai airports.

AirAsia will add more flights surrounding the Bangkok hub (such as Phuket to KL) starting tomorrow.

Fernandes was speaking to reporters in conjunction with its first flight to India yesterday at the Low Cost Carrier Terminal, KL.

AirAsia has recorded 100 per cent load from December 1-18 for its flights from KL to Trichy while achieving 80 per cent load factor this month.

Fernandes said that AirAsia may consider increasing flights to Trichy.

"Definitely there is a demand for a second flight and we are looking at it. It's a matter of whether we put another flight to Trichy or look at another Indian destination," said Fernandes.

He said it was still viable for AirAsia and AirAsia X to fly to 10 Indian destinations, such as Bombay, New Delhi, Madras, and Tiruvananthapuram, within the next 18 months.

"There is strong demand because people arriving in KL can get (on connecting flights) to Bali, Phuket or Langkawi," he said, adding that its maiden flight to Trichy was already profitable.