AirAsia Philippines is on track to launch its first routes before the end of the year, subject to regulatory approvals, and is bullish on the new joint venture with All Nippon Airways, AirAsia Japan, to be based at Tokyo Narita.
“Japan is a huge, huge market with a very low LCC penetration rate. It’s our first venture outside of ASEAN, and we’re very excited about the prospects there,†Fernandes said at the release of the airline’s second quarter results.
AirAsia Group posted a slight increase of 0.06% in profit before tax of US$48 million for the second quarter ended June 30, compared to the year-ago period. Revenue increased 15 percent.
Fernandes said the airline’s “load active, yield passive†strategy was paying off, with lower average fares attracting higher numbers of passengers who, in turn, contribute to a higher take-up rate of ancillary services such as such as baggage supersize, pick-a-seat, cargo and courier, inflight merchandise and meals.
“We’ve always maintained that instead of raising fares for higher yield – running the risk of dampening air travel – we’d rather keep fares at reasonable levels so as to attract higher passenger loads and boost revenue through ancillary services,†Fernandes said.
