AirAsia introduces regional pass

Budget carrier AirAsia has launched a new regional air pass in an attempt to boost tourism in the Southeas Asia region.

The product will be made available in all ASEAN countries. The new pass will be available from next January and will allow travelers to fly to 10 different destinations in a month for 499 ringgit. According to chief executive Tony Fernandes, this is in a bid to lure in foreign tourists as well.

A spokesperson from AirAsia told  Advertising + Marketing that the response for the new offer has been positive with inquiries coming in from the public from across the ASEAN region. No further statements were shared about how the regional pass will be marketed.

According to Mashable, AirAsia reported an 85% fall in its net profit to 5.4 million ringgit for the third quarter. Meanwhile, its long-haul arm AirAsia X, posted a net loss of 210.9 million ringgit for the same period.

Azran Osman-Rani, CEO of AirAsia X said in a press statement that the company’s third-quarter financial performance was set back by the second shock suffered by the aviation industry in July and “the resultant demand slowdown.”

"The growth strategy for 2015 will shift to a consolidation phase, where no new aircraft capacity to be allocated to core routes in Malaysia’s network in 2015 […]Capacity allocation in 2015 will see a drop in the number of flights to Australia, while North Asia and other regions will see an increase in number of flights."

Osman-Rani added that in light of the changing market landscape in Malaysia where travel demand has softened, AirAsia X sees less need to continue expansion in its core Malaysian route network in 2015. Also, with the recent launch of Indonesia AirAsia X, the company has now accomplished the primary strategic objective of achieving market leadership in its core markets through the aggressive capacity expansion it embarked on in 2013 to 2014.