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AirAsia Takes On the Road

Budget air travel pioneer AirAsia has upped the gear in its aim to become a regional budget travel shopping provider by adding a budget car rental service for its passengers.
Priced at RM30 per day, about one third of the normal rental for a similar engine size car in the rental market, associate Asian Rent-A-Car has stationed ten cars at the KLIA under the GoCar brand for its debut in the rental car market.
"It will later be expanded to other AirAsia destinations, in Johor Baru, Kuantan, and Penang," said Shah Hakim, whose company runs the rental service in partnership with the airline. "We see it as a profitable business, giving a net return of 8 to 10 percent."
"We have budgeted to acquire up to 200 Proton cars for our GoCar online car rental service. Depending on the demand, our first phase will see 100 cars on the road during the next one to two years. Our alliance will also extend to AirAsia joint-ventures in Thailand and Indonesia."
"There is scope to grow in the ancillary services," said Tony Fernandes, CEO of AirAsia, at the launching. Citing Ryanair, Europe"s biggest budget airline operator as a model which derives 18 percent of its revenue through ancillary services, he says AirAsia currently derives only 1 percent of its income from providing such services.
"By offering a unique series of services under one roof we are empowering our customers to research and book unique holiday options in the comfort of their own home 24 hours a day, 7 days a week. The alliance of our budget airline ticket, coupled with budget hotel and car rental service will enable more people to travel"
The AirAsia CEO confirms the GoCar rental service is one of the many services the airline will be introducing throughout this year.

Kuala Lumpur 04/04/2005