In Kota Kinabalu, Tan Sri Tony Fernandes has stated that AirAsia will make an attempt to bring down the cost of airfares. He did acknowledge that this would pose a challenge, given the increasing oil prices and the strong US dollar.
Mr. Fernandes, who is the chief executive officer of Capital A Bhd, which is AirAsia’s parent company, also appealed to the public to consider the difficult situation faced by the budget airline as it recovers from the impact of the pandemic.
“Despite the losses in revenue, our airfares are still substantially cheaper compared to others,” he told reporters after an event at the Kota Kinabalu International Airport (KKIA) here on Monday (Dec 4).
Fernandes mentioned that 92% of their domestic flights consist of low-season airfares, and they also offer deal flights throughout the year.
“But also have a heart on us, we lost RM4bil last year (and) last quarter we lost RM400mil.
“I can’t control the price of oil. The US Dollar is very strong – 75% of our costs are in Dollars. So when it is strong, my costs go up.
There have been many appeals, particularly from individuals in Sabah and Sarawak, for airlines to provide cheaper flights, especially during festive seasons and school breaks.
Last month, Transport Minister Anthony Loke stated that the government would continue to offer fixed fares for airline tickets during festive seasons.
He mentioned that similar to the practice during festivities this year, the government would urge airline operators to increase frequency to meet the demand for travel.
Fernandes mentioned that increasing flights would be beneficial, but airlines require support in order for this to happen.
He mentioned that returning all of AirAsia’s 200 planes from storage would not be easy.
“So, that’s where we need financial support. Yes, capacity helps, but that’s why we talk about costs, right?
“(Like) don’t use aerobridges, we want simple facilities, all kinds of things that help us reduce costs.
“We’ll continue to work hard to try to bring down fares, but we need the airport to help,” he said.
