Tuesday, April 08, 2008

AirAsia finds ways to increase ticket price

AirAsia to charge luggage check-in fee

AirAsia passengers will have to pay for each checked in baggage from April 21.

It will cost them RM5 to check in the baggage at the airport but just RM3 if the arrangement is made online.

“The fee will help to defray up to 10% of the fuel cost,” said its group chief executive officer Datuk Tony Fernandes in a press statement.

“Lighter baggage on board means burning less fuel, hence, less pollution and a better environment. Fewer checked-in baggage improves airport efficiency and will eventually lead to shorter check-in queues,” he added.

Anything over 15kg will be charged as excess baggage in addition to checked-in baggage fee.

According to Fernandes, charging the fee for check-in baggage made more sense than charging everyone an additional fuel surcharge, which was what other airlines were doing.

“It is not much, but it adds up with all the other things we are doing such as priority boarding, selling merchandise and food on the flights,” he said.

Now election is over and Tony who lobbied for Shahrizat had also lost. It's time to increase the prices to defray costs.

No frills can mean anything; more of things to be charged. Fly AirAsia!

17 comments:

Unknown said...

if read between the lines, "AirAsia looks going down and down"...

dont be surprised that most huh hah and fast track success companies do normally last less than half decade... KLSE has abundance list of this sort companies!

politicians backed or related companies are good at this gimmick; TALK COKC THEN BAIL OUT!!!

Anonymous said...

He didn't mentioned whether the luggage check-in fee going to replace the fuel surcharge.
What next? Charge passenger according to weight?

BTW, as pointed by Jeffooi, AirAsia are speculate hedging the oil price to US$82.60, a deal between 8 Jan to June 2010.
http://www.jeffooi.com/2008/01/airasia_while_the_skirt_gets_s.php

Now Tony Fernandes are in deep shit trouble.

Anonymous said...

Seems the url not properly display.

Here is the link

Jefus said...

Didn't AirAsia loose a bunch of money in airfuel hedging sometime back?

Is this his way to spread his losses?
The standard baggage allowed is 20kg and excess of 5-7 kg, ' close one eye ' :)

its time consumers tell this airlines they are not happy with the way the consumer gets the short end of the stick when corporate decisions to speculate fails..... the normal route is to fire the CEO

AminNR said...

The only "environment" Tony is concerned about at all is FINANCIAL environment. Let us be more discerning of the con job from AA and forget about flying with them. I personally would prefer premium airline like SIA, where customer service and customer loyalty is highly valued.

Anonymous said...

Here is the 'adv'. Looks stupid to me.
http://www.todayonline.com/pdflive/0804NSL004.pdf

Maybe toilet fee is next. Too many hidden costs. Very soon, only accountants are 'safe' to fly with airasia. Otherwise, be prepared to be ripped! lol

cakap mesti bikin siap siap said...

Next could be

Sitting fees (No frills mean you suppose to squat in the aircraft)
Shitting fees
Peeing fees
Farting fees
Flushing toilet bowl fees
Cuci mata on stewardess fees (otherwise must close eyes whilst on board)
Aircond fees (otherwise use fan only)
Lighting fees (otherwise in darkness)

Air Asia, can give me a free ticket ah for listing out some idea for you?

Anonymous said...

free market la!

don't like that fernandes face... take la mh, sq, cx, etc.

macha, why whacked this indian boy.

Arena Green said...

I choose not to fly Air Asia anymore because I do not like the way they treat their passengers like dirt just because they are the cheaper alternative.

Actually, if you do your maths, they are not really THAT much cheaper compared to full-service airlines. Just like fine-dining, it is sometimes worthwhile paying a little bit extra not to be treated like a cow.

Maverick SM said...

Ling Ling Chatt,

AirAsia is struggling with the fuel price increase and could be losing money.

Moo_t,

Ya, I read Jeff's article. I think AirAsia is in trouble.

Jefus,

I think so; AA might have lose quite substantially on the fuel hedging.

AminNR,

I don't travel AirAsia nowadays. One bad experience.

Hasilox,

Thanks for the link. I'll remember your prediction and post about it.

CMBSS,

Ya, I will also remember your predictions.

Anak Merdeka,

Me too; I don't fly AirAsia.

Anonymous said...

Don't know about you fellas but without Air Asia there is no way I could afford the Flying Buffet. I took my whole family of 4 to Langkawi Return for less than one MAS ticket. I don't know what MAS offer now but all I know it was a plastic cup of juice for all domestic flights in Peninsular. Come on, AA is doing a favour to poor man like me. Without AA, Mas would probably charging RM 1200 for return ticket to Kota Kinabalu citing loses on their domestic sectors. Make your choice and let the poor humble old man has his pick. RM 100 or RM 1000.

bayi said...

The passengers are made to pay for Tony's mistake in hedging the price of oil to USD82.60. His initial success went to his head. He thought he understood the behavior of oil fluctuations better than the experts.

If by a long shot he had been right, he would have been treated like a hero and an expert in oil fluctuations. But he was wrong and we are made to pay for his mistake.

the Constantly Dramatic One said...

Greedy SOB.

Anonymous said...

tony wants the government to build all the facilities fo his airasia. what tony wants, tony gets. it may be harder this time, though, as the minister of airasia has been replaced by a sraight guy by the name of ONG.
well, if the government pays for all the infrastructure for tony, the government must not give tony the unfettered rights to screw the consumers at his own whims and fancies. or tony will continue to get what he wants, though there is no longer minister of airasia?

Anonymous said...

A new advert announcing soon...

Fancy our Air Asia girl??...get "friendly" with them at NO Frill price....call xxxx-xxxxx.
Air Asia, Now Everyone can Fu*K air hostess

Anonymous said...

The ass kisser lost the ass to kiss so now he wants the passenger to pay loh.

It won't so budget anymore very soon.....

Unknown said...

If AirAsia really wants to make up for the fuel cost, then why dont they charge what they are allowed to? For example, Thai AirAsia charges 100 THB less than the limit and what other budget airlines charge, then they add on baggage fee? Does not make sense! Either charge what they are allowed by set government fee, or else dont charge, but do NOT make up for it in baggage. Further, Datuk Fernandes said that more baggage was more weight and cost more to fly. With his logic, then if my bag is only 5KG, I should pay less? Why should I pay 3X the amount for my 5KG bag by being forced to pay the 15kg limit? Does not make sense.

As for the success/failure of AirAsia, consider this: in Malaysia where they have NO TAX from the government, they have subsidized LCCT and NEW LCCT being built at KLIA, and money owed for failed FAX operation in Sarawak/Sabah, and routes from MAS, they can make some money. In Thailand and Indonesia where they have competition (Nok Air, 1-2-Go, JetStar, Tiger, Bangkok Air, Lion Air, Adam Air, etc) they have lost money each year. Also, in September 2007, AirAsia stopped publishing their passenger traffic numbers online so there is NO way to measure what they are saying. Half of last quarters "profit" was in Forex gains, nothing to do with flying aircraft. Also, just cancelled the BKK to Xiamen route. Didnt Fernandes say "China is our next big plan"? I think people should look closely at the finances, passenger traffic, international investors, and what is really happening to make up your own mind about this company. Also, just look at Ryan Air in Ireland....any time they do something, AirAsia will follow just like a puppy. You want to see your future, just watch Ryan Air and it will happen on AirAsia shortly.