AirAsia maintains no fuel surcharge policy

KUALA LUMPUR: AirAsia Bhd is maintaining its no fuel surcharge policy despite reports that other airlines are increasing previously imposed charges. In a statement, the airline said it was committed to keeping air travel affordable and had chosen to tackle fuel price hike with aggressive marketing and the strengthening of its ancillary business instead of relying on fuel surcharge to offset rising fuel cost. AirAsia commercial head Kathleen Tan said: “AirAsia scrapped out fuel surcharge in November 2008, and we have no intention of resurrecting it."

She said that its strong seat sales and successful ancillary income were enough to offset the rise in fuel price, adding that it used innovation to drive its costs down and were looking at various other revenue streams rather than impose a fuel surcharge. “Imposing fuel surcharge may be an easy way out, but it can also be an addiction in driving artificial revenue to a company,” Kathleen added.

Last year, ancillary income for the entire AirAsia Group (AirAsia Bhd, Thai AirAsia and Indonesia AirAsia) was approximately RM603.5mil, 14.6% of the group’s revenue. The group’s ancillary income was RM460.9mil as of the first half of this year.

-thestar online.