AirAsia will cut costs by 7% (Picture: Penmanila on flickr)

AirAsia will cut costs by 7%

In Airlines, Asia, Featured on App, Low Cost Airlines, Strategy by lornaLeave a Comment

AirAsia will cut costs by 7% (Picture: Penmanila on flickr)

It’s a new year, time to make some changes and perhaps re-evaluate how things are run.

Air Asia CEO, Tony Fernandes seems to agree with this. Recently posting from his Twitter account, Fernandes said, “2014 is about cutting cost. We think we will cut costs by seven per cent.”

So is this the year Air Asia will dominate with cutting costs and improving efficiency or will they lose quality along the way?

Fernandes believes, “Ancillary income will rise and margins will rise.” He also mentioned that, “Fares can go lower than they are now. Load factor for December was a whopping 91 percent.”

“I love competition. Will provide some huge competition to full service airlines. Watch us in 2014.” Well low cost competitors, you heard the man. The competition for 2014 is on.

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