AirAsia: RM9.99 fare not a gimmick


  • Nation
  • Wednesday, 10 Sep 2003

KUALA LUMPUR: AirAsia has refuted allegations that its RM9.99 single journey fare to Penang was a promotional gimmick to attract publicity. 

Its chairman Datuk Pahamin A. Rejab explained that the low fares were applicable to a limited number of seats bought at least two weeks prior to the time of departure. 

“Our promotions are determined by demand and supply. You can’t expect the prices to remain the same if you buy a day before departure. But despite all that, our highest fare is still cheaper than the market rate,” he said during a launch of AirAsia’s new “Go Holiday” packages here yesterday. 

Questions over the authenticity of its low fares arose when some customers complained that the prices of tickets were different from those published. 

On another matter, chief executive officer Tony Fernandes denied that AirAsia's Internet counters were inefficient. 

“About 45% of our tickets sales are through the Internet. If it is so difficult to buy them over the Net, then they will not sell.  

We sold 200,000 tickets last month,” he said. 

He also rejected suggestions that the current holiday packages offered by the airline – which include flight and hotel rooms – were introduced in response to Malaysia Airlines recent move to slash prices. 

“It's a different market for the two airlines. Our packages are tailored for the modern travellers who only want a place to stay and will do their own sight-seeing,” he said. 

Fernandes added that AirAsia had 1.5 million passengers last year and was targeting 3.2 million this year.  

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