Wednesday, March 30, 2011

AirAsia not planning fuel surcharges, airfares to remain at current level

Wednesday March 30, 2011


AirAsia not planning fuel surcharges, airfares to remain at current level




SINGAPORE: AirAsia has no intention to introduce fuel surcharges at the moment despite the hike in crude oil prices following the political uprising in the Middle East .


Group chief executive officer Datuk Seri Tony Fernandes said the airline would continue to keep its airfares at the levels where there were now.


"We are comfortable with our pricings and don't see any needs to impose fuel surcharges,'' he told a media briefing yesterday.


Fernandes said the airline would continue to explore other avenues, including ancillary businesses such as selling hotel rooms, car rental services and tour packages, to make its operations profitable.

Datuk Seri Tony Fernandes and Barry Diller at the partnership launch

He said this after the launch of a partnership between AirAsia and Expedia Inc, the world's largest online travel company. At the ceremony, Expedia was represented by its chairman and senior executive Barry Diller.


A 50:50 joint-venture company will be set up to operate Expedia-branded business in Japan, India, South-East Asia and other East Asian markets, as well as AirAsia's AirAsiaGo and GoRooms businesses.


AirAsia (AirAsia Malaysia , AirAsia Indonesia , AirAsia Thailand , AirAsiaX and other AirAsia joint-venture airlines) and Expedia are also partnering outside of the new venture.


The tie-up will make Expedia the exclusive third-party travel provider for AirAsia inventory, allowing travellers to book the inventory on any of Expedia's travel sites globally.


Fernandes said by partnering with Expedia, AirAsia would be able to promote its services to consumers in North America .


On whether the nuclear scare in Japan following the earthquake and tsunami on March 11 would have any adverse impact on airlines, Fernandes said it was unlikely.


"Look at Europe during the heights of volcano eruptions and 9/11, people still want to travel and once the situation improves, more and more people will want to go on holidays,'' he said.

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