No-frills airline seeks makers' help
AirAsia, the region's largest low-cost carrier, is pushing manufacturers to produce a new generation of aircraft catering to the specific demands of the no-frills airline, as the model is fast becoming the airline of choice for a growing number of passengers.
'When planes were created by Boeing and Airbus, they were not, and still aren't, created with the low-cost carrier in mind,' explains Kathleen Tan, the airline's regional head of commercial.
'We have been in dialogue with manufacturers to push them towards the launch of an aircraft more suited to the low-cost model.'
Such an aircraft might be greener, more fuel efficient and configured in a way that would optimise passenger volume, she says, adding that new planes are already 10 to 15 per cent more fuel efficient than older models.
'For example, the Airbus 340 traditionally features quite a lot of galleys. In customising it to suit our needs, we ripped out some of the galleys and put in more seats,' she says.
From an engineering perspective, an ideal aircraft for a low-cost carrier would feature as many seats as possible while not sacrificing comfort nor compromising on airline safety regulations, she notes.
In the next few years, AirAsia is anticipating passenger volume in the region to grow further as the rapidly emerging middle class in India and the mainland look to spend more of their disposable income on tourism.
'We have created impulse demand for travel for everyone from young families, migrant workers to three generations of the same family. These are people who would otherwise not be able to afford the fares on conventional airlines,' she explains.
There are a multitude of factors that have made AirAsia a decade-long success, but most pertinent is its commitment to the low-cost carrier model, and its ability to think outside the box, one step ahead of others.
'There is a lot of discipline involved in the low-cost carrier model. This is an area that has prompted the downfall of other low-cost carriers in the past because many who say they are low-cost don't actually follow through on the low-cost model,' Tan says, noting that low-cost does not mean cheap, but doing things the smart way.
She attributes the airline's ability to think outside the box to the non-aviation background of its management, notably Tony Fernandes, AirAsia's CEO and founder.
Fernandes was formerly a music industry veteran who enjoyed a long career with Warner Music.
'The non-aviation background of our management means we have no preconceived notions of how to do things the traditional way. This has meant being able to focus on building a really strong brand with a value proposition that offers quality, but is always affordable,' Tan adds.
Creative and cost-saving efforts have translated into the use of social media for communicating with passengers, market research and marketing purposes, and significant ancillary revenue generated by the online sale of everything from insurance to hotel packages and the retail of fashion and lifestyle, and wellness and beauty products.
In a bid to further slash costs and offer greater convenience, the airline is pushing passengers to check in online. A fee will soon be levied on those opting to check in at airport desks.
