Airasia Aircraft Become Billboards In Hard Times

[george]

AirAsia aircraft become billboards in hard times

BANGKOK: -- Budget airline Thai AirAsia plans to turn the exteriors and interiors of its aircraft into advertising billboards in a bid to find revenue, as passenger numbers fail to meet targets.

Scott’s Bird’s-Nest Essence and Solartron Plc will be the first companies to promote their products in the skies, emblazoned across one of Thai AirAsia’s eight aircraft.

Max Maker Co Ltd has been hired to manage the advertising for one year. Chief executive Vinij Lertratanachai said the total annual fee for advertising on all areas of one aircraft would be Bt7 million. For the outside alone, the fee will be Bt3.8 million and for only the inside, Bt4 million.

“We’re clinching deals with four other potential customers who are in consumer products, mobiles and accessories, non-alcoholic beverages and alcoholic beverages,” said Vinij.

He said advertising on what he called “the aircraft medium” would 30-40 per cent cheaper than on billboards in non-prime areas. It offers not only a clear

product position, but also an increased number of viewers.

Tassapol Bijleveld, chief executive of Thai AirAsia, expects the advertising will generate between Bt30 million and Bt50 million next year.

The company plans to add between six and 10 new aircraft to its fleet and will have 20 to 25 within a few years, he said.

The airline is pursuing advertisers in light of fewer passengers than expected. Thai AirAsia targeted between 2 million and 2.3 million passengers this year, but the actual figure will be only about 1.8 million, said Tassapol.

He blamed several negative economic factors, including the impact of the tsunami, high fuel bills and natural disasters, plus a three-month delay in delivery of two new aircraft, which has set back operations on two new routes - Bangkok-Hanoi and Bangkok-Phnom Penh. Daily service on the two routes is now set to begin next Monday and early next month, respectively.

Thai AirAsia was launched in February of last year. Shin Corp owns 51 per cent, and the rest belongs to AirAsia Bhd of Malaysia.

The airline’s average load factor is 76 per cent, although the two new routes are expected to achieve 80 per cent, said Tassapol.

To stimulate additional revenue during the last quarter of this year, Thai AirAsia will also give “Two Million Smiles” privilege cards to 90,000 customers, entitling them to discounts of 10-16 per cent on room rates at 100 domestic and international hotels.

The company will proceed with the promotion despite the quarter being the high tourist season, said Tassapol.

“History tells us that although it’s the high season, we cannot afford to be idle.”

--The Nation 2005-10-12

[sriracha john]

I would think these businesses would be very much interested in advertising inside and outside of Air Asia planes...

Not to mention one without a currently available logos, this would be a good opportunity for them to come up with one:

How Come Entertainment Co., Ltd.

Edited October 12, 2005 by sriracha john

[sierra01]

I’m not against Air Asia having flying billboards but maybe if they were a bit more honest about the TRUE cost of their airfares more people would use them. I went to Penang and back with them in July, glitzy advertised price of 699BT one way (small print said plus taxes etc), final price 1700BT each way, the fuel surcharge alone was more than the airfare. Ok I know the final price was still a good deal, when compared with Thai Airways, but I still think it’s a bit sneaky. I think it’s about time the airlines merged the fuel surcharge with the actual airfare, then those that use it to hike profits would catch a cold.

[barryofthailand]

I’m not against Air Asia having flying billboards but maybe if they were a bit more honest about the TRUE cost of their airfares more people would use them.  I went to Penang and back with them in July, glitzy advertised price of 699BT one way (small print said plus taxes etc), final price 1700BT each way, the fuel surcharge alone was more than the airfare.  Ok I know the final price was still a good deal, when compared with Thai Airways, but I still think it’s a bit sneaky.  I think it’s about time the airlines merged the fuel surcharge with the actual airfare, then those that use it to hike profits would catch a cold.

<{POST_SNAPBACK}>

The same thing for their supposedly October special to Phucket, and Chiangmai at 399 baht each way. Tried to find this fair on the internet, cheapest fair was 799 each way times my famoly of three with the fuel surcharge and tax 12,000 baht. Unreal.

Barry

[alesypalsy]

I’m not against Air Asia having flying billboards but maybe if they were a bit more honest about the TRUE cost of their airfares more people would use them.  I went to Penang and back with them in July, glitzy advertised price of 699BT one way (small print said plus taxes etc), final price 1700BT each way, the fuel surcharge alone was more than the airfare.  Ok I know the final price was still a good deal, when compared with Thai Airways, but I still think it’s a bit sneaky.  I think it’s about time the airlines merged the fuel surcharge with the actual airfare, then those that use it to hike profits would catch a cold.

<{POST_SNAPBACK}>

The same thing for their supposedly October special to Phucket, and Chiangmai at 399 baht each way. Tried to find this fair on the internet, cheapest fair was 799 each way times my famoly of three with the fuel surcharge and tax 12,000 baht. Unreal.

Barry

<{POST_SNAPBACK}>

Exactly! I have not booked a flight with these for a long time as every time i goto book at their so called promotion prices they never have any seats at that price. I look to book upto nearly a week and can still not get the price, So Balls to em i flew to sing with cheapo tiger airlines at 4200 return. They should sort out their prices and then i think they would get the customers to make up their seats.