Air Asia's costs will be cut down by 7 % in 2014: CEO

AirAsia Chief today said that the airline would cut cost by 7% globally.

The Malaysia-based Airline's Founder and CEO Tony Fernandes, who is in Frankfurt for the Air Asia 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, many haven't seen the huge ancillary business which the Airline is building and Air Asia Expedia already beating profit forecasts. "Will be as big as Air Asia one day".

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

"Making 2014 a year of healing is an excellent move," he said.

Earlier he tweeted on Air Asia India stating that the cost of the Indian operations is on the decline, making Air Asia 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 has ordered 25 A330 300 aircraft from Airbus, which will take total fleet strength to 57 by 2019.