Posts Tagged ‘promo’

AirAsia and MAS Big Promo Are Coming Soon

Date Sunday, 21 June 2009  Posted in Category News  Tags , , ,   Comment 2 Comments »

The spread of the A H1N1 Influenza is growing rapidly across the global including Malaysia. Many people have been advised not to travel out of the country and with the impact of global finance crisis, the numbers of traveler going oversea have not been increased since February.

Travel industry and airlines facing a challenge at this situation. For travel agencies, they can cut down operations cost, reduced head count and promo local travel as of strategy, those companies without strategy or lack of reserved fund will be closed temporary or permanently.

For airlines, they are facing a higher challenge. Airline’s revenue based on passenger volume, the more passengers, the more profit will gain. Fuel is the main cost for all airlines (article: airlines struggle with fuel costs), airport rental (included runway and hangers), air planes maintenance and operations cost are considered as second. The point is not each flight made profit- if a flight has less than a targeted number of passengers, it will still take-off but fuel will still ‘burned’. What they can do is to ensure other profitable flights are able to cover the flights that making loss. If you compare airfares for different destination, you will notice the airfare to Melbourne is almost same as the airfare to Paris. Simply because the route to Melbourne is always on demand.

Airlines can’t use the same method for survival as travel agencies do. Airlines need to hard sale and pull down the airfares to ensure flights have meet the minimum quota. By the way, there’s a different between travel industry and airlines, traveling is not a must but leisure; and flight is a transport – it is required for long distance journey for example going back to home town in east Malaysia (Sabah/Sarawak) or business trip/oversea study. I believe airlines business in Malaysia somehow still can survive no matter what as long as there’s no other new competitors.

My friend from AirAsia just told me that AirAsia and Malaysian Airlines (MAS) are strategising a big promo within these 2 weeks, if you want to catch the free flight or zero fare, observe their website promo after 12AM mid-night.