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KUALA LUMPUR: Air travel is one of the sectors that is hardest hit by the global slowdown. But low cost carriers are not complaining, as a growing number of travellers opt for getaways on a shoestring budget.
Built to handle only 15 million passengers a year, the Low Cost Carriers Terminal in Sepang is now bursting at the seams. More Malaysians, including business travellers, are choosing to downgrade from big name airlines to budget carriers amid a sluggish economy.
"We try to cut cost as much as possible, if it's not that long a journey, not longer than 8 hours, we can tolerate the low-cost carrier," one traveller said.
Many have also cut down on trips to save money. "In the past, we used to go on holiday twice a year, now we will just have one," another added.
Travellers are seen to be picking cheaper and nearer destinations to stretch their dollars as well.
Malaysia's first low cost carrier, AirAsia, is capitalising on this trend. Its CEO recently scrapped the airline's fuel surcharge to boost sales.
Tony Fernandes, CEO, AirAsia, said: "The response was more than what we expected – so good that our computer crashed on the first day."
While leading airlines are cutting capacity, AirAsia is adding 20 per cent more seats by buying another 37 aircraft.
The budget airline is targeting 24 million passengers across the region next year by launching more new and attractive routes to stimulate air travel.
Two of its most popular destinations right now are Trichy in India and Guilin in China.
"I have been through SARS, bird flu, tsunami – you name it, we had it. But we always grew, we are street fighters," said Fernandes.
But the same cannot be said about some premium airlines, which are now in a tight spot as they struggle to keep costs down to stay afloat.
- CNA/so
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