AirAsia, a Malaysian budget airline, has cut their fuel surcharges for all flights, which also includes AirAsia X. The decision comes in response to the decrease in oil prices across the globe. The company is also giving away 500,000 free flights in order to attract more business.

Tony Fernandes, the Chief Executive of the carrier, said that passengers are not going to see an increase in the price of fares due to fuel surcharges being cut, but the airport tax fee is still going to be added. He said that even though quite a few carriers are reducing capacity because of the worldwide recession, AirAsia is planning to increase capacity and routes due to low prices, aggressive marketing, and high load factors. Mr. Fernandes continued that they want to be rid of all the surcharges, and they are the first carrier in the world that is able to completely be rid of them.

Fernandes also noted that while they are cutting the fuel surcharge, they will be initiating other programs to make up the difference in the revenue they will be losing. Passengers will still be made to pay other taxes, such as a US$6.24 insurance and administration fee and a US$1.67 or US$6.94 airport tax for domestic or international flights respectively.

The airline is also giving away 500,000 free seats, which means no fare or surcharge, in a campaign for 5 days that begins on Wednesday at midnight. The flights are going to be available for the 56 regional routes of the carrier.

Learn more about AirAsia at: www.airasia.com