Bullish AirAsia targets 24 million passengers in 2009
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AirAsia remains bullish about its performance in 2009 as passengers increasingly choose low cost carriers over full service airlines during the economic downturn. AirAsia has forecast that it will handle 24 million passengers in 2009 and 60 million passengers per year by 2013, compared to 18.3 million in 2008. The airline also forecasts a 21% increase in passenger traffic for 2Q 2009, matching its rise in passenger traffic in 1Q 2009. According to IATA, international passenger traffic (RPKs) in the Asia-Pacific region fell 8.6% year-on-year in Apr-2009.
Tony Fernandes AirAsia’s Chief Operating Officer was quoted saying, “We are a Wal-Mart; we are a McDonald’s,” referring to the kinds of lower-cost businesses that traditionally flourish in recessions as consumers tend to trade down. Fewer meals in five-star restaurants, fewer seats in first class; more Big Macs and more economy or budget tickets. All this results in boom times for LCC’s and AirAsia intends to stay at the forefront of this curve.
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