Air Asia on the offensive with Carat Media

Malaysia - Air Asia has handed its Air Asia X as well as half of the Air Asia media planning business, held by OMD, to Carat Media. The news comes shortly after Air Asia was put under pressure to deal with the recent 'copycat' manoeuvres by Malaysian Airline System (MAS).

MAS, like Air Asia, is offering zero-priced tickets and has been pushing its, usually low-profile CEO, Idris Jala, as brand ambassador in ads. Newspaper ads have also appeared in red which is a colour more closely associated with the low budget carrier. However, Air Asia CEO Tony Fernandes has moved to counter and said he will make up the difference in price if Air Asia fares are higher than MAS.

"Is MAS a credible source for low fares? Although it may be smart in the short term to have these offers for 30% of the business for unsold seats, I question the implication on the remaining 70%. If consumers adjust to their new price point, it may actually jeopardise what they already have," Roy Tan, MD for Carat Media said.