AirAsia to cut costs by 7%: CEO

Malaysia-based low cost air carrier AirAsia today indicated cutting costs in 2014 up to seven percent, a top official said today.

"2014 is about cutting cost. We think we will cut costs by seven percent," Air Asia Bhd Group CEO Tony Fernandes wrote on micro-blogging site 'Twitter'. "Ancillary income will rise and margins will rise," he said.

Also read: AirAsia to take off in Indian skies by February

Fernandes, who is in Frankfurt for a roadshow, said, the load factor for the airline was 91 percent in December. "(Air) fares can go lower than they are now. Load factor for December was a whopping 91 percent", he said.

He said the strategy for 2014 was by "lower costs. higher ancillary through services and the Emirates project".  "I love competition. Will provide some huge competition to full service airlines. Watch us in 2014. Cutting loads of cost," he said.

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