Kuala Lumpur- While other airlines struggle with rising fuel prices and economic slowdown hits passenger flights; Air Asia, the region’s biggest budget air carrier has announced plans to expand its operations.
The airline which has already given away a million free seats in over 105 routes in Southeast Asia and China network is acquiring 175 Airbus A320 planes to be delivered until 2014 to be able to increase its flights and add more routes.
Air Asia’s expansion plan comes in the face of the bleak forecast made by the International Air Transport Association that global airline industry losses could reach $5.2 billion this year.
IATA said passenger demand is slowing down even in Asia-Pacific while crude oil price remains high. At least two dozen airlines worldwide have closed down this year, it said.
But industry analysts said the Air Asia strategy could still pay off in the long term.
