AirAsia says will cut costs by 7% in 2014

Says fares can go lower than the current rates

AirAsia chief Tony Fernandes today said that the airline would cut costs by 7% globally in 2014.

The Malaysia-based Airline's founder, who is in Frankfurt for the AirAsia X IPO roadshow, tweeted saying, "2014 is about cutting cost. We think we will cut costs by 7%. Ancillary income will rise to 50 ringitt per passenger. Margins will rise”.

He added that many haven't seen the huge ancillary business which the airline is building and AirAsia Expedia is already beating profit forecasts. "Will be as big as AirAsia one day," he said.

He added that fares can go lower than they are now and load factor for December was 91%.

Earlier, he tweeted on AirAsia India, stating that the cost of the Indian operations is on the decline, making AirAsia India's prospect bright. He says, “We will deliver the most profitable airline in the world. We have a real plan to dominate low cost travel.”

Recently, the company ordered 25 A330 300 aircraft from Airbus, which will take its total fleet strength to 57 by 2019.