AirAsia under fire over allegedly misleading ads<\/p>\n
Associated Press
\nKuala Lumpur<\/p>\n
Budget carrier AirAsia has rejected accusations by Malaysia's
\ntourism minister that it misled customers by failing to honor
\nadvertisements that offer tickets for as low as 1.99 ringgit
\n(US$50 cents), news reports said on Sunday.<\/p>\n
AirAsia's Chief Executive Tony Fernandes claimed similar
\nadvertisements were used by other budget carriers worldwide such
\nas Southwest Airlines in the United States and Europe's Ryanair.<\/p>\n
\"Our ads are not cheating anyone,\" Fernandes was quoted as
\nsaying by the Sunday Star newspaper. \"No one is forced to fly. If
\nthey feel the fare is not right, they can choose not to fly.\"<\/p>\n
Malaysian Tourism Minister Abdul Kadir Sheikh Fadzir last week
\ncalled for an investigation into the newspaper advertisements,
\nwhich he claimed were \"misleading\" because the lower prices
\nsometimes applied to only about 30 percent of seats.<\/p>\n
Fernandes, however, said the advertisements \"clearly state\"
\nthat fares did not include taxes and fees and were subject to
\navailability and other conditions.<\/p>\n
\"If demand is low, there would be more tickets with lower
\nfares,\" Fernandes was quoted as saying. \"How can anyone think
\nthey can have all flight seats at 1.99 ringgit each?\"<\/p>\n
Passenger traffic at Kuala Lumpur-based AirAsia has risen
\nrapidly since its launch in December 2001. It expects to fly more
\nthan three million people in the latest fiscal year ending June
\n30, 2004.<\/p>\n
AirAsia's success in enticing Malaysians with steeply
\ndiscounted fares on domestic routes has helped encourage plans
\nfor other low-cost carriers in Southeast Asia, where similar
\nairlines plan to begin flying this year in countries including
\nSingapore, Thailand and Indonesia.<\/p>\n
In recent months, AirAsia has tried to transform itself from a
\ndomestic carrier into a regional player. It began its first
\ninternational route - to Phuket, Thailand - last month, and plans
\nto add other destinations in Thailand and Indonesia soon.<\/p>",
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