KUALA LUMPUR: Despite the challenging global financial crisis, low-cost carrier AirAsia is confident of continuing to experience robust growth, bolstered by a sustainable business model, its chief executive officer Datuk Seri Tony Fernandes said.

“We think that we are in a strong position. We will continue to invest in our brand and increase demand through quality products while expanding routes,” he told reporters after a media briefing on AirAsia’s latest 5-Star Enhancement here yesterday.

He however said nothing was guaranteed as it was not known what was around the corner.

According to Fernandes, AirAsia was ready to face this challenging period as he had earlier predicted the eventuality.

“All I can say is that we will maintain a consistent strategy and change our products. We are a low-cost carrier and will not pretend to be something else.

“But, we are a high-quality low-cost carrier,” he said.

Fernandes said the way out of recession for AirAsia was growth.

He said some airlines would deal with the recession by contracting.

“But I am not going to waste five years of hardwork by throwing away the routes and brand development.

“It is going to be a long recession. I have been predicting this for two years and we are ready for it.

“Although it is not going to be easy, we have to maintain demand by having the lowest fares and good products,” he stated.

Being the largest low cost carrier in Asia, AirAsia is able to compete with other full service airlines by maintaining its low fares and adding yet another sparkle to its already 5-star service, by enhancing its On-Time Guarantee.

The On-Time performance of flights refers to the departure of flights within 15 minutes of their scheduled departure times.

AirAsia is the only airline in the world that provides its customers with an innovative protection like the On-Time Guarantee.

It is an innovative protection provided by the airline for customers against flight delays.

Beginning Nov 1 the AirAsia On-Time Guarantee cut waiting time from three to two hours. Customers affected by flight delays of more than two hours are eligible to receive an e-gift voucher.

Each e-gift voucher is worth RM200 and may be used to buy a seat on another AirAsia flight or redeemed for any AirAsia product or service.

The enhanced On-Time Guarantee is a benefit passed on to AirAsia customers as a result of the airline’s improved performance for flight departures across its entire network.

In just a matter of three months since the AirAsia On-Time Guarantee was launched in June this year, the number of AirAsia flights delayed by an hour or more dropped from three per cent in July and four in August to just two per cent in September.

As a result, AirAsia has seen its On-Time performance for flight departures improving from 89 per cent in July and 85 per cent in August to 90 per cent in September.

Touching on the delivery of the new airbus aircraft, Tony said it would be used for flights to India, China, Thailand and other Southeast Asian countries as AirAsia had a problem at the Low Cost Carrier Terminal (LCCT) in Sepang.

“The problem is, I have got no place to park the plane.

“Every morning when I come in and ask my engineers what all the planes were doing in the hangar, their reply was that there was no other place to park them.

“So, we now have 33 bays and 36 aircraft. Until we get more bays, it is a real problem for us,” he said.

Tony said that AirAsia would allow Malaysia Airports Bhd to finish its development first before bringing the airbus to Malaysia.

On whether AirAsia would reduce the fuel surcharge following the decline in global oil prices, he said the company would review the situation but only make a decision when there is some price stability.

“Let’s see some consistency in pricing and the volatility out of the market. Then, we will make a decision,” he said.

On Malaysia Airlines, he said: “Our battle with the airline is over. All I wanted was to be treated fairly and to get our routes. We have got that.

“The focus now is on our branding and we want to get better. The competition is now within us and with no one else,” he added.

— Bernama