MALAYSIAN budget carrier AirAsia has scrapped fuel surcharges on all its flights, including on long-haul carrier AirAsia X, in response to the decline in global oil prices.
AirAsia chief executive officer Datuk Tony Fernandes said the regional carrier’s fares will remain unchanged.
“We want to get rid of all surcharges and we have been able to ... be the first airline in the world that is completely getting rid of fuel surcharges,” he told reporters.
AirAsia stands to lose at least RM940 million in fuel surcharge revenues in 2009, as Fernandes predicts more than 20 million passengers will fly the airline next year.
The carrier said passengers will still have to pay other taxes — a RM22.50 administration and insurance charge and airport tax of RM6.00 for domestic flights and RM25.00 on international routes.
It is also offering 500,000 free seats, with no fare or fuel surcharge, in a five-day campaign beginning midnight Wednesday for flights in the third quarter of 2009.
Fernandes said, however, that the fuel surcharge could return if oil prices surged again.
He said that although many airlines are cutting capacity as a result of an expected global recession, AirAsia is planning on increasing routes and capacity because of its low prices, high load factors and aggressive marketing.
“What we are doing is to produce more routes and lower prices to fight out of the (global) economic recession,” he said.
Fernandes said while scrapping the fuel surcharge is unlikely to affect the airline’s profitability, the carrier will initiate other programmes to make up for the loss of revenue. - AFP
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