/ 14 September 2005

AirAsia says deal with Man United paying dividends

AirAsia, Southeast Asia’s pioneering low-cost carrier, said on Wednesday its recent sponsorship deal with Manchester United is already proving its worth in attracting business.

“Its already paying off. The trend is there. We are now seeing customers from Europe who have changed their holiday plans to come to Malaysia instead,” said Kamarudin Meranun, executive director with AirAsia.

AirAsia signed its one-year, low-fare carrier sponsorship deal with Alex Ferguson’s team in July in Hong Kong during the Red Devils’ Asian Tour.

Kamarudin declined to reveal the cost of the deal which comes with an additional one-year option but said it was a “win-win agreement” for both AirAsia and Manchester United.

“The sponsorship deal gives AirAsia greater visibility in the global market. United’s games are beamed all over the world, including to destinations that we fly and plan to fly like China.

“So when a game is played at Old Trafford, AirAsia’s logo and name will be on the electronic [advertising] board and shown across the world to millions of people,” he said.

The agreement, among other things, allows AirAsia to paint its aircraft in the colours of the world’s best supported team and sell United’s merchandise on its flights.

“It is a partnership to build awareness and encourage potential tourists from Europe to [come to] Asia and fly AirAsia,” Kamarudin said, adding: “We are confident it will bolster our bottom line.”

Kamarudin said AirAsia is also seeking an alliance with an international carrier, possibly Malaysian Airlines, to fly in European tourists.

“[These] passengers can then use AirAsia to fly local and regional routes. We hope we can work with national carrier Malaysia Airlines,” he said.

Earlier this year the possibility of such a tie-up with Malaysia Airlines was raised by both government and company officials in the face of soaring fuel bills.

AirAsia was the first regional low-cost carrier. Starting from humble beginnings it now operates a fleet of 30 Boeing 737-300s and flies to 52 destinations in Malaysia and six internationally. It plans new routes to Brunei, Cambodia, China and Vietnam in the near future.

In the financial year to June, AirAsia carried 4,4-million passengers, up 55%. It recently ordered 100 Airbus A320 aircraft which will completely replace its current fleet of Boeing aircraft. – AFP