No hike in fare — AirAsia chief

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KUALA LUMPUR: AirAsia yesterday assured that the airline will continue to remain a low-cost carrier and maintain the current fare structure despite its recent collaboration with Malaysia Airlines.

Group chief executive officer Tan Sri Tony Fernandes reiterated that there “was no way, as far as AirAsia is concerned, that fares would go up or that there will be less competition”.

“AirAsia started as a low-cost carrier and we will stay a low-cost carrier. There will be no benefit to us (AirAsia) if fares are increased,” he said after presenting a talk at the Tunku Abdul Rahman College here yesterday.

Fernandes was responding to claims that AirAsia will increase fares which will automatically reduce competition between the two aviation companies.

“AirAsia is about having low fares. We want to have more flights and in order to have more flights we have to be cheaper.

“You have a choice, if you do not like our (AirAsia) fare, you will not fly with us,” he said, adding that even AirAsia had to compete for business.

Malaysians should place more faith in the collaboration (between MAS and AirAsia) which would not only benefit the industry but also the country, Fernandes said.

“Malaysians, by nature, will only be convinced after they see success, they will (later) regret their mistakes.

“So, give us some time and we will prove to you that the deal will be profitable,” Fernandes said, adding that he welcomed parties which criticised AirAsia, MAS or the share swap deal to sit down with the management and hear their side of the story.

On AirAsia, Fernandes hoped Malaysia Airports would further realise the benefits of low cost travel by granting the airline more low-cost terminals at Malaysian airports.

“We have one in Kota Kinabalu and we would love to have one in Penang and Kuching, as we think low cost travel is a separate business than the premium,” he said.  AirAsia, on the other hand, is also accelerating AirAsia Japan, Thailand Indonesia and the Philippines.

“All of these are looking good as we continue to record more routes and more frequencies in the last 12 months. Financially, our third quarter looks good, I hope the fourth quarter will also be very good and I am not worried about any recession, if there is any.

“In reality, it is now MAS and AirAsia’s glorious moments as we can catch up in business and passenger traffic while others (airlines) are still struggling,” he added. — Bernama