AirAsia uses fuel savings to launch half-price deals

[webfact]

AirAsia uses fuel savings to launch half-price deals
SUCHAT SRITAMA
THE NATION

BANGKOK: -- MALAYSIAN low-cost carrier AirAsia has launched an Asean half-price promotion in the wake of the Flight QZ8501 crash in December that killed 162 people, with the carrier able to introduce the campaign because of its high jet-fuel hedging.

The AirAsia Asean Pass and AirAsia Asean Pass+ are prepaid packages that allow passengers to lock down base fares with credits and redeem them later to travel across the 10 Asean nations: Malaysia, Brunei, Singapore, Indonesia, Myanmar, Thailand, Vietnam, Laos, Cambodia and the Philippines.

The AirAsia Asean Pass costs Bt5,300 for 10 credits and AirAsia Asean Pass+ costs Bt9,300 for 20 credits.

Passengers must complete their travel within 30 days of purchasing a Bt5,300 ticket and 60 days for the Bt9,300 ticket.

AirAsia group chief executive Tony Fernandes said the carrier hedged the jet-fuel price at about US$80 per barrel in January. He said the airline's portion of hedging had increased from 20 per cent to 50 per cent this year and would last for several months.

Low oil a big boost

"The lowering of oil prices is great for our business," he added.

Fernandes said AirAsia aimed to maintain the proportion of passengers travelling throughout Asean at 55 per cent of its total Southeast Asia passengers.

He said it was hoped people from other regions would take advantage of the promotion when travelling throughout the region.

A passenger target under the promotion had not been set, but it was expected to boost business.

Fernandes said the group was considering creating packages that would service more destinations.

He said AirAsia did not wait for a government to develop infrastructure that served the airline industry before implementing its strategic plans.

Last year, AirAsia had 55 million passengers. Tassapon Bijleveld, chief executive of Thai AirAsia, said the |airline hoped the new promotion would boost passenger numbers |for the domestic and overseas markets.

Tassapon said the airline aimed to achieve 14.5 million passengers this year, up from 12.2 million last year, with the average load factor expected to increase from 78 per cent in 2014 to more than 80 per cent this year.

Thai AirAsia is sets to operate in three destinations in China this year when five new aircraft arrive.

Source: http://www.nationmultimedia.com/business/AirAsia-uses-fuel-savings-to-launch-half-price-dea-30254703.html


-- The Nation 2015-02-24

[leon9mm]

Is it not valid for 1 year but must be used within 30 days of first flight..

[blueyeshk]

But even with promotion prices are still up over the year plus several extra charges for this and that.

[siam2007]

with every "Promotion" or "lowering fares" they have at the same time introduced new fees or raised fees for their numerous anxilliary services you can not escape from in many cases. So, what they claim to put back into your right pocket, they take it out even bigger from your left pocket.

I followed and monitored those tactics since many years

[spidermike007]

What is truly unfathomable is how many airlines, including EVA AIR are getting away with continuing to charge massive fuel surcharges. Air Asia does not engage in this criminal practice. EVA is currently charging about 12,000 baht for a fuel surcharge round trip Bangkok to Los Angeles. That is nearly $400!

[blueyeshk]

It's legal it's allowed - and I guess everybody can see and digest the numbers before they click to pay- so make your choices

[paddyjenkins]

I think it would be more effective if they introduced a booking where you only pay once you've reached your destination

[blueyeshk]

Sure it would make the tickets immediately painful expensive as no show- but paid is an important part of their calculation. Btw thank you to all no show and booked promotion early but than make expensive changes without that the others had to pay much more.

Edited February 24, 2015 by blueyeshk

[kinmaew]

Wonder if the TAG board have ever considered this? Nah too hard, the fuel savings will just go into the pockets of grovelling worms and cronies so they can buy their ***th mansion in North London. To hell with market share what is that anyway?

My God I am a real whinger arent I?

[Ricardo]

The ASEAN-Pass sounds like a great way, to bring forward revenues from future unbooked-flights, a cynic might wonder whether AA were having cashflow problems currently ?

[paddyjenkins]

Sure it would make the tickets immediately painful expensive as no show- but paid is an important part of their calculation. Btw thank you to all no show and booked promotion early but than make expensive changes without that the others had to pay much more.

No, thats not my point. My point is missing planes.

[Don Aleman]

And Thai Air uses the money to appoint new, inexperienced President and 17 < ( seventeen ) new vice presidents !

[geriatrickid]

The ASEAN-Pass sounds like a great way, to bring forward revenues from future unbooked-flights, a cynic might wonder whether AA were having cashflow problems currently ?

Bingo. A quick read of the Air Asia financials supports your suggestion.

[geriatrickid]

And Thai Air uses the money to appoint new, inexperienced President and 17 < ( seventeen ) new vice presidents !

Huh? Aren't there are only 7 Vice Presidents at TG who are classified as officers of the company?

When did the company bylaws change, because those 10 additional VPs are not listed as per the Thai bourse rules.

Please clarify.

[blueyeshk]

http://www.bbc.co.uk/news/business-31654441

Makes Sense