Air Asia and MAS

The economic bubble that enveloped Air Asia since its inception continue to grow. Last week Tony Fernandez announced that they made a cool RM1.07 billion profits. For an airline that started only a few years ago and that revolutionised air travel in this region, it was an historic achievement. Iwas browsing their booking website recently and I have not done so for quite sometime, it is a lot easier now and clearer as well as faster. Furthermore they have done away with all the hidden additional charges that often veiled their actual fare. On top of that they are still offering the cheapest way to fly. I must admit, I was a constant critic of Air Asia tactics in the past by cleverly enticing you to travel with promise of cheap fares but in the end it wasn’t really very cheap. Remember the days when the former Tourism Minister, Kadir Sheikh Fadzir reported them for unfair advertisement. Air Asia was cleared of any wrong doing and look at them now streaking ahead in the sky race leaving a more experience MAS in its wake. Speaking of MAS, they reported a 65% drop in profits for last year. Well under the circumstances of the turbulent economy last year, it was a fair result but definitely they could have done better. MAS tried to counter  Air Asia by establishing Firefly which recently started flying to Kuching and KK from KLIA. Comparing the prices of the two airlines recently made me realized that Firefly is actually doing what Air Asia did many years ago – hiding additional fares – much to the chagrin of potential users. Comparing the fares of the two, Air Asia is still the king of low fares flight. No wonder the LCCT is brimming with people day in and day out. Forget about the aerobridge, just fly me to my destination.


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