🔮 Better than the Oracle? Our Fair Value found this +42% bagger 5 months before Buffett bought itRead More

AirAsia resumes online promos, adverts after Indonesia jet crash

Published 30/01/2015, 09:30
© Reuters. A woman walks in front of  the AirAsia ticketing office at Soekarno Hatta airport in Jakarta
CAPI
-
GIAA
-

By Eveline Danubrata and Anshuman Daga

JAKARTA/SINGAPORE (Reuters) - Budget airline AirAsia Bhd (KL:AIRA) resumed online promotions and advertising this week, a month after a plane operated by its Indonesia affiliate crashed into the Java Sea, killing all 162 people on board.

AirAsia CEO Tony Fernandes had imposed a moratorium on advertising after the Dec. 28 crash of the Indonesia AirAsia plane, which Indonesian investigators said on Thursday was being controlled by the co-pilot when it fell into the sea.

Fernandes recently told Reuters Television the airline's sales in Indonesia were slowly recovering after the crash, which was the first involving an AirAsia plane and which cast a spotlight on the patchy safety record of Indonesian airlines.

"We were 50 percent behind where we were after the incident," Fernandes said from Davos. "We are now about 12 percent behind and it's fast recovering."

Indonesia AirAsia, in which AirAsia has a 49 percent stake, declined to give details about passenger numbers for January or December.

One of its competitors, Garuda Indonesia (JK:GIAA), said it had seen an increase in passenger load factor this month.

Garuda Chief Executive Arif Wibowo told Reuters the average passenger load factor was around 74 percent for Garuda and 79 percent for its budget unit Citilink. This compares with 67.6 percent for Garuda Indonesia Group for January last year, according to the airline's website.

© Reuters. A woman walks in front of  the AirAsia ticketing office at Soekarno Hatta airport in Jakarta

Several travel agents said many customers were still afraid of flying AirAsia. Some passengers, like Jakarta-based finance executive Cynthia Nadeak, however, said they would continue to fly AirAsia. "I'm not afraid to fly AirAsia because its reputation so far has been proven to be quite good," said Nadeak, who takes at least one AirAsia flight every three months.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.