26 œ
media & marketing
AirAsia abolishes
fuel surcharge
by Angela Sargunan
newsdesk@thesundaily.com
AIRLINE travellers can expect even lower
fares with AirAsia’s latest initiative of zero
fuel surcharges.
The airline has decided to waive fuel
surcharge fees across its entire network,
including AirAsia X destinations, effective
immediately.
“Recognising the current economic
situation, the aim was to live up to AirAsia’s
commitment in offering truly low fares and
provide more affordable and transparent air
fares for business and leisure
travellers,” said AirAsia
for more info log on:
Group CEO Datuk Seri www.airasia.com
Tony Fernandes.
“With the economic
uncertainties, we understand
how important low-cost travel is to the
people and the economy of Asean countries.
By abolishing our fuel surcharges, our
low fares will stimulate the demand and
boost tourism, thus bringing new revenue
through visitor spending, stimulating
employment, export earnings, and foreign
investment,” he told reporters at a press
briefing after the launch of AirAsia’s Special
Fare Initiative at Carcosa Seri Negara in
Kuala Lumpur on Tuesday.
“When other airlines began levying
higher fuel surcharges after international
fuel prices skyrocketed, AirAsia
maintained the same low fuel surcharge.
Instead, we expanded our route network
strategically tapping new under-served
markets and we use innovation and
technology to remain at the forefront.”
In addition, he said, such marketing
efforts like increasing flight frequencies
and introduction of in-flight meals
will continuously evolve the business
and further generate revenue for the
company.
Asked if the base rate will be increased,
Fernandes said: “We have not increased the
base rate and can’t guarantee
it forever, but we will resist
doing so.”
On average, the fuel
surcharge per passenger is
around RM47.
Domestic Trade and Consumer Affairs
Minister Datuk Shahrir Abdul Samad, who
launched the event, said the government
supports any initiative taken by any
corporate company to aid the economic
situation.
He said such initiatives will boost
tourism and benefit the economy.
To commemorate the event, AirAsia
has launched its regional campaign by
giving away 500,000 free seats as a token of
gratitude to its loyal guests.
Guests can book their free seats to all
AirAsia Bhd chairman
Datuk Aziz Abu Bakar
(left) presents a token of
appreciation to Shahrir
while Fernandes looks on.
AirAsia destinations
with no fuel surcharge from now to
Sunday for travel between June 22 and Oct 24
next year.
With the “No more fuel surcharge”
initiative, AirAsia and AirAsia X seat prices
t h e r i g h t p i t c h
Branding in a crisis
by Abhinav Sharma
WHILE a new voice in the West heralds an era
of optimism and hope, there is still much to fear
and prepare for in the years ahead.
Despite the Messianic Obama, consumer
spending across the globe is expected to follow
its southern migration.
The current crisis may have been born in
America but it’s clearly now everyone’s prob-
lem. Closer home, leading economies like Japan,
China and India are reeling under job losses and
shutdowns.
Main Street is the new victim. What doesn’t
augur well for the global economy doesn’t augur
well for the marketing of brands.
But all is not lost. While the financial com-
munity may be at a loss in these unprecedented
times, marketing isn’t without direction.
In fact, many savvy, forward-thinking market-
ers are already planning to exploit this unique
situation which presents opportunities for those
who can see them.
Consumers moving
downstream
This is typically the first outcome of tight liquidity
and an economic downturn.
In this situation, many marketers scramble to
retain these outgoing customers through promo-
tions, discounts and freebies.
What many may not recognise is that
a) this movement doesn’t define a new world
order, and
b) that it occurs across demographics.
The former is important to note because this
flow mirrors the vicissitudes of the economic
tide; think of a stressed rubber band that snaps
back once the stress is released. Once the posi-
tive sentiment returns, so do a brand’s original
customers.
The latter is an important observation be-
cause it tells a marketer that their brands will
receive newer customers just as they may lose;
you win some, you lose some. A trail might look
like this: some gourmet cafe coffee drinkers
move down to the likes of Starbucks or Coffee
Bean whose customers might move down to
in-home gourmet coffees who might travel down
to instant coffee who might travel further down
to Mamaks. At each downstream link, there is a
potential loss and a potential gain.
Keep communicating with
your audience
Clearly, this is a time when consumers are con-
fused, concerned and cautious.
If ever there was a time for communication
to be relevant, it’s times like these.
A brand needs to be clearer, sharper and in
the lives of its consumers.
Surprisingly, in many cases, the exact oppo-
site happens; short-term cost-cutting looks more
attractive than building long-term brand value.
A study done by the American Business Press
theSun | THURSDAY NOVEMBER 13 2008
will consist of
only air fares, administration fee
and airport tax. Fernandes said they are also
looking at other innovative efforts such as
allowing pasengers to check in using their
mobile phones. So far this year, the airline
has carried 20 million passengers compared
with 15 million passengers last year.
that analysed the severe recession of 1974 to
1975 showed that companies that maintained
their advertising budgets during the recession
not only did not show declining sales but also
achieved sales growth of 150% during 1972 to
1975 and outpaced competitors years later.
A similar study by McGraw-Hill done for the
recession in early to mid-80s shows similar
figures: 275% growth for those companies that
continued to advertise as compared to a measly
19% growth that didn’t.
Speed to digital
The difference for marketers this time around is
the emergence of whole new way of marketing
and communicating.
Tough times have always called for smarter
marketing and embracing digital is about just
that.
From targeted communication to the avail-
ability of a broad spectrum of audience, the
digital space offers marketers a new way to
engage consumers.
According to Internet World Stats, Malaysia
has a penetration of 59% with 15 million netizens.
A whopping three quarters of these are between
15 and 40 years old.
And Malaysians are doing a great deal more
than just checking email; they’re watching TV on-
line, listening to music, playing games, chatting,
blogging and even reading newspapers online.
The best part is the analytics behind digital
are far more accurate and measureable than
traditional media.
So if marketing dollars needs to be stretched,
if marketing effectiveness needs to be height-
ened, and if ROI needs to be more measurable,
digital is a very plausible way to go.
Inorganic growth
A looming recession is also a great time to get
some good bargains on companies. Bankruptcy
and liquidation are two words we need to famil-
iarise ourselves with during this crisis.
With more than US$30 trillion (RM108 trillion)
being wiped out from stock markets around the
world, many companies are going to find simple
survival difficult if not impossible.
This means that marketers with sound fun-
damentals and long-term vision can sweep up
these companies up at bargain prices.
This is a great time to gain access to markets
that were previously difficult to crack open.
Companies that have been wise enough to save
for a rainy day are going to find that it’s raining
and raining hard.
A financial crisis, even one of this magnitude,
doesn’t have to impede growth. It’s time to stop
fearing the obstacles the coming years will throw
at us and start focusing on how we can use this
time to innovate with smart marketing.
Abhinav Sharma is head of strategic planning
at McCann Worldgroup. He can be reached at
Abhinav.Sharma@ap.mccann.com