Business

Tuesday August 25, 2009

AirAsia to lift ancillary income


It sees a 20% rise in two years from RM177mil

KUALA LUMPUR: AirAsia Bhd, which raked in RM177mil in ancillary income for financial year ended Dec 31 (FY08), aims to increase this figure by 20% in two years, says group chief executive officer Datuk Seri Tony Fernandes.

He said food and beverage (F&B) sales contributed RM30mil in FY08 and with the introduction of more new in-flight menus, the target was achievable.

“Average passenger spending on F&B currently is about RM3.25 and we are targeting to increase this to RM5 with the introduction of new menus such as Krispy Kreme doughnuts,” he said yesterday after the launch of “AirAsia Introduces Krispy Kreme Onboard”.

Datuk Seri Tony Fernandes ... ‘We are targeting to increase average passenger spending on F&B to RM5.’

AirAsia’s ancillary income in the first half year hit RM186mil with food sales contributing a major portion. Fernandes said the introduction of the doughnut was a first as no other airline had done it before and it would complement well other food offered on AirAsia flights.

“With the addition of Krispy= Kreme in our snack attack in-flight menu, we offer our guests another best-of-its-class product. We expect this new addition to contribute to our profit starting this quarter,” he said.

Berjaya Krispy Kreme Doughnuts Sdn Bhd director Datuk Francis Lee said it was excited to be exposed to this large market of AirAsia guests.

“Now AirAsia guests will be able to enjoy our premium quality doughnuts onboard. Like AirAsia, Krispy Kreme is a buzzword that millions recognise as synonymous to quality, affordability, easy accessibility and good times,” he said.

The company is the master franchisee for Krispy Kreme doughnuts in Malaysia.

Available from Sept 1 on all AirAsia flights, Krispy Kreme doughnuts will be offered at RM7 per pack of two.


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