Tony Fernandes, the CEO of the low-cost airline AirAsia, has hinted at the possibility of ticket rates across all AirAsia flights may see a decrease.
According to Berita Harian, the drop in flight tickets are dependent on the proposed merger between AirAsia X Bhd (AAX) and Capital A Bhd’s aviation business, which is pending shareholders’ approval.
Drop in AirAsia ticket rates coming soon?
Fernandes said if the merger manages to go through, it will be aligned with the potential saving in operational costs of 15%, which in turn enables ticket prices to drop too.
This merger has many benefits. First, it strengthens AirAsia as a whole and secondly, the aircraft fleet will increase as AAX also requires AirAsia’s narrow-body aircraft and vice versa (AAX’s wide-body aircraft).
“I anticipate that AAX’s takeover of the group’s aviation business will add value for our customers. It will reduce fares and operational costs will also be more efficient,” he said.
The Malay daily reported that an Extraordinary General Meeting (EGM) will be held by AAX today for shareholders to vote on the proposed acquisition of the entire equity interest in Capital A Bhd’s aviation business (AirAsia Aviation Group Limited and AirAsia Bhd).
Meanwhile, Tony urged the government to allocate a higher budget for the Ministry of Tourism, Arts, and Culture (MOTAC) through the 2025 Budget, which is scheduled to be presented in Parliament this Friday (Oct 18).
“A larger allocation will have a more significant economic spillover. This will benefit not only the people but also airlines like AirAsia.
“The surge in the tourism sector has driven post-COVID-19 economic recovery, which in turn has had a positive impact on the aviation industry,” he said.
Back last month, AirAsia announced that it would be imposing a carbon fee charge on customers starting next year:
