Malaysian budget carrier cuts fees to boost travel

Malaysian budget carrier cuts fees to boost travel Kuala Lumpur - Malaysian budget carrier AirAsia on Wednesday removed administration fees on all its flights in a move to lower its fares and boost passenger volume amid the global economic crisis.

"The best way to get people to fly is through high-quality products and lower fares," said AirAsia chief executive Tony Fernandes.

The move would see a reduction of up to 43 ringgit (11.35 dollars) in ticket prices, with passengers only paying the fare and airport tax.

AirAsia removed fuel surcharges in November last year.

Fernandes said the move would cost the airline about 400 million ringgit (108 million dollars) regionally, and 250 million ringgit (67.5 million dollars) in Malaysia.

However, he expressed confidence that AirAsia would be able to continue expanding as passengers cut costs by flying budget airlines, and suggested that airports around the world should also reduce their charges in order to encourage travel. (dpa)