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is air asia going bust?

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  1. #1

    is air asia going bust?

    does anyone know anything?

    i ask because of it's current promotion of free flights for the start of next year. i wonder if it's after a cash injection now because it's struggling...

    could this be another oasis hong kong?

    on a side-note, does anyone know - if i book using my HK credit card and the airline then goes under, is the credit card company liable to ensure i am not out of pocket? this was the case in the uk and i wanted to check here before i bought any tickets...


  2. #2

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    If the flights are free then they're not going to inject much cash, are they?

    It could be, but my impression is that it is much stronger. It is quite normal in the low cost airline business to give away a (smallish) proportion of the seats as an advertising ploy. People like RyanAir and Easyjet do it all the time.

    My understanding on the credit cards is that legally you are out of pocket unless your card is used fraudulently, but that some companies do refunds as a goodwill gesture. That certainly seemed to be the case at the time of Oasis - some people got their money back and some didn't.


  3. #3

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    Quote Originally Posted by leedseagle:
    on a side-note, does anyone know - if i book using my HK credit card and the airline then goes under, is the credit card company liable to ensure i am not out of pocket? this was the case in the uk and i wanted to check here before i bought any tickets...
    It appears to be nowhere near as strong a protection as in the UK. I would pay with a UK card.....

  4. #4

    no PDLM, of course free flights won't inject much cash, but often, one way is free, and the return is not - meaning i, for example, am spending more on the company than i would normally

    as for the credit cards, in the UK it's the law. your contract is with the credit card company, not the airline


  5. #5

    thanks for that movingin. i thought the same, so will have to wait until later to book - assuming seats remain available


  6. #6
    Quote Originally Posted by PDLM:

    My understanding on the credit cards is that legally you are out of pocket unless your card is used fraudulently, but that some companies do refunds as a goodwill gesture. That certainly seemed to be the case at the time of Oasis - some people got their money back and some didn't.
    in the UK, you're covered under section 75 of the consumer credit card act for purchases above the value of GBP100.

    however, if that purchase is for two flights, each worth GBP55, you're not covered, despite it being one transaction

    which means, i might as well use my HK credit card anyway i suppose!

  7. #7

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    that's interesting - I didn't realise there was a minimum purchase size. (But then have not used a UK card for a while)


  8. #8

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    As far as I know, AirAsia have offered free seats before, I think they have a few of these campaigns every year. At least I seem to remember getting a few newsletters about these campaigns over the last few years.. (but don't blame me if they do go bust


  9. #9

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    Air Asia are alot safer than Oasis. Their business model is more sound and budget airlines are more suited to a lot of short haul destinations than 1 or 2 long hauls... due to the productivity of the plane and staff etc.

    they should be fine although alot of airlines go bust without so much as a warning...


  10. #10

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    Some good information here about how some credit card companies handled the Oasis bankruptcy.

    http://www.geoexpat.com/forum/thread26336.html

    Would recommend backwards browsing from the last page...


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