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BIZCHINA> Reports
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AirAsia flies high on a small budget
By Lu Haoting (China Daily)
Updated: 2009-04-13 07:49 AirAsia has all the hallmarks of a no-frills airline: smaller seats, less legroom, and charges for drinks and meals. But it is not just low costs that have created Asia's most successful and largest budget airline.
A former recording industry executive, the fortyish Tan is regarded as the marketing fuel behind the success of the seven-year-old Malaysia-based airline. "Our fares are cheap but nothing else about us needs to be cheap," said Tan, executive vice-president of AirAsia. Despite soaring oil prices and a deepening global economic downturn, AirAsia last year launched six new routes to southern China, the most aggressive expansion by a foreign carrier in the country. The airline began to fly to Tianjin at the beginning of April in a bid to expand its network to northern China. It also plans to fly to the country's southwest city of Chengdu next year. Branding has been key to AirAsia's fast growth. Last year, the airline unveiled the world's first commercial A320 airplane painted like a Formula 1 racecar. In 2007, AirAsia signed a three-year partnership with the world's leading Formula 1 team, AT&T Williams, as its official airline. The airline is now in talks with Manchester United about becoming the football club's fourth sponsor, following Sharp, Vodafone and AIG... The full text is available in the April Issue of Logistics China. Please visit publications for more subscription details.
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