Wednesday, February 11, 2009

Air Asia Free to Fly!!

Starting from 10th Feb (yesterday), Air Asia has started its annual event of giving out free seats again. But this round, what excite me is finally there is a direct flight from Penang to Macau. Okie, let me briefly show you the advertisement of it.
I remember that all i see was a peaceful green color on all the taps when i first log in to air asia. All the flights were still available. Just within 24 hours, this is how it looks like now (6pm).


Free seats status
available limited taken

Depart from/to Kuala Lumpur International Airport (LCC Terminal)
International Destinations Oct 09 Nov 09 Dec 09 Jan 10
Bali
Banda Aceh
Bangkok
Brunei
Chiang Mai
Clark [Manila]
Dhaka
Gold Coast [Brisbane]
Guangzhou
Guilin
Haikou
Hangzhou [Shanghai]
Hanoi
Ho Chi Minh
Hong Kong
Jakarta
Krabi
Macau
Makassar
Manado
Medan
Melbourne
Padang
Palembang
Pekanbaru
Perth
Phnom Penh
Phuket
Shenzhen
Siem Reap [Angkor Wat]
Singapore
Solo
Surabaya
Tiruchirappalli


Vientiane
Yogyakarta

Domestic Destinations Oct 09 Nov 09 Dec 09 Jan 10
Bintulu
Johor Bahru
Kota Bharu
Kota Kinabalu
Kuala Terengganu
Kuching
Labuan
Langkawi
Miri
Penang
Sandakan
Sibu
Tawau

As of 11 Feb 2009 12:00



Despite the global economic slowdown when alot of factories are being shut down, the sales for Air Asia is doing relatively good. Actually I've tried to understand how the business works for Air Asia.

Briefly it goes like this. Firstly client shall browse & select their flight. Once they are certain, they shall book the tickets with immediate payment via credit card. However, the flight is schedules 6 months later earliest.

Air Asia will get your money to start rolling, investing & making money. Then you'll be anticipating on your vacation where you'll probably miss your flight. Why do I say so? Because you wouldn't know if there is anything more urgent to attend to in 6 months time. So, Air Asia shall earn your money entirely.

What do they get? Well, the Company gets free money & the can lighten their flight thus saving more on fuel consumption. In fact they earn the most from your initial deposit of money 6 months ago. Imagine each person pays RM300 averagely. There are 500,000 seats. Simple math : totaling RM 150 millions collected upfront.

Behind the stage: Why nowadays flight tickets are cheaper compared to those days where flying is near impossible for middle range income earner

1. With the booming of Information Technology, overhead cost for running of management has been cut down. This shall be one major factor on why we are getting cheap tickets now.

2. Introduction of Airbus. Instead of flying 50 person per flight, now AA flys 500 person per flight. Obviously this lowers the cost again.

3. Having your flights ticket prepaid in 6 months advance. The collection shall be of a huge amount where proper investment with greater return value takes place. Meaning, the returns shall be subsidies back to your own pocket. Cheaper tickets again!!

4. Introduction of LCCT. Lower maintenance cost.

5. Lastly, do you know that AA management office is based on open door policy? Even Dato' Tony Fernandez sits at cubicle. Thats why la.....They save for your benefit. So remember always to support Air Asia, where Everyone can fly!



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