AirAsia under fire over allegedly misleading ads

AirAsia under fire over allegedly misleading ads

Associated Press Kuala Lumpur

Budget carrier AirAsia has rejected accusations by Malaysia's tourism minister that it misled customers by failing to honor advertisements that offer tickets for as low as 1.99 ringgit (US$50 cents), news reports said on Sunday.

AirAsia's Chief Executive Tony Fernandes claimed similar advertisements were used by other budget carriers worldwide such as Southwest Airlines in the United States and Europe's Ryanair.

"Our ads are not cheating anyone," Fernandes was quoted as saying by the Sunday Star newspaper. "No one is forced to fly. If they feel the fare is not right, they can choose not to fly."

Malaysian Tourism Minister Abdul Kadir Sheikh Fadzir last week called for an investigation into the newspaper advertisements, which he claimed were "misleading" because the lower prices sometimes applied to only about 30 percent of seats.

Fernandes, however, said the advertisements "clearly state" that fares did not include taxes and fees and were subject to availability and other conditions.

"If demand is low, there would be more tickets with lower fares," Fernandes was quoted as saying. "How can anyone think they can have all flight seats at 1.99 ringgit each?"

Passenger traffic at Kuala Lumpur-based AirAsia has risen rapidly since its launch in December 2001. It expects to fly more than three million people in the latest fiscal year ending June 30, 2004.

AirAsia's success in enticing Malaysians with steeply discounted fares on domestic routes has helped encourage plans for other low-cost carriers in Southeast Asia, where similar airlines plan to begin flying this year in countries including Singapore, Thailand and Indonesia.

In recent months, AirAsia has tried to transform itself from a domestic carrier into a regional player. It began its first international route - to Phuket, Thailand - last month, and plans to add other destinations in Thailand and Indonesia soon.