SOUTHEAST ASIA: AirAsia in roadshow to clarify facts

KUALA LUMPUR: Malaysian budget carrier AirAsia is planning a nationwide roadshow in February to clarify its fare structure, after facing allegations that its ads were misleading the public.

This was the outcome of a meeting between the airline and Malaysia's ministry of domestic trade and consumer affairs. According to a statement from the airline, the ministry acknowledged that the airline had no intention of misleading the public. AirAsia was also given the go-ahead to continue with its ads.

However, the ministry of domestic trade and consumer affairs suggested that the airline should explain its low fare scheme to consumers.

AirAsia chief executive Tony Fernandes said: "We welcome the minister's suggestion and have planned road shows to reach out to more people and explain our low fares concept. We will continue to advertise our low fares as practiced previously."

The airline was put in the spotlight when Malaysia's culture, arts and tourism minister, Abdul Kadir Sheikh Fadzir, accused the airline of misleading Malaysians by promising tickets to some destinations for as low as RM1.99 (about US$0.5).

The ads highlighted the low fares, but the minister alleged that the offer only applied to 30 per cent of the seats available, and that most of these tickets were reserved for a related tour company. He suggested that the domestic trade and consumer affairs ministry look into the matter, and was quoted by the Bernama news agency as saying: "I just hope AirAsia will correct the way it promotes itself."

The controversy only abated after a meeting between the airline and the ministry of domestic trade and consumer affairs.

AirAsia is a two-year-old, no-frills airline that has introduced many Malaysians to domestic air travel.

Related Articles