The fine print about AirAsia X’s RM499 Unlimited Pass

By Xavier Kong

AIRASIA X recently kicked off its RM499 Unlimited Pass promotion, which has generated quite a lot of hype on social media. RM499 for unlimited flights? Sounds a little too good to be true, doesn’t it?

Just to be clear, some of this is more along the lines of the stuff they hide in the fine print, rather than stuff they are not telling you. Some of it also follows a “we assume you know” line of thinking.

First up, what is the unlimited pass really for? It is actually for flights departing Kuala Lumpur or Bangkok, so do check your departure locations. At the same time, this pass is not inclusive of taxes and airport fees and all the other things, only the base fare. Oh, do not forget that this pass only applies for flights with code D7 (AirAsia X) or XJ (Thai AirAsia X). Do refer to the table to see just how the fares stack up against competitor Malindo. Fares on the table are as of March 4.

It should be pointed out that a perk of the Unlimited Pass lies in its name, as a pass holder can use the pass to eliminate base fares for an unlimited number of flights within the promotion period, assuming all of the conditions are met. 

As such, using the pass only once or twice, flying to Perth, for example, would make the cost of the pass and the rest of the cost (as per the table above) more expensive than actually booking without the pass. However, the magic starts from the third use of the pass onwards.

The pass is valid for a year, according to the promotion, but the fine print also shows that the bookings have to be made at least 14 days prior to departure. So yes, you can travel before March 2, 2021, but the last booking date is two weeks before that, on Feb 16, 2021.

Blackout periods also apply, and this points to a period where either the destination or the origin location have public or school holidays. Summer break? Not applicable. Year-end break? Maybe another date. So the offer of a year-long unlimited pass is really starting to look a little less appealing, considering the blocks when travel would be common would be blacked out. While AirAsia X does not really come out and say it, it does ask pass holders to “try to avoid booking for public and school holidays, and other peak periods.”

To be fair, the unlimited pass is targeted at what AirAsia calls FITs, or Free and Independent Travellers. This class of traveller is described as being low-commitment, able to leave on a trip on short notice when it strikes their fancy, compared to travellers who have commitments like family, children, or significant others, which generally require more planning.

As such, multiple passes are required for a family. Recall that the target market is FITs, and note that you cannot buy tickets for others with this pass. There is also an age limit in that pass holders have to be at least 12 years of age on the date of departure, and the passenger must be the BIG member who made the booking.

Another weakness of the promotion is that it requires some research and care on the part of the user, as the pass only applies to trips that are over four hours in duration, are on either AirAsia X or Thai AirAsia X flights (namely those with codes of D7 or XJ), and have to be point-to-point flights, meaning no connecting flights. Oh, flights to Singapore, Denpasar, and Jeddah are specifically not allowed as well.

Of course, the consumer has to be responsible for confirming the details of the deal, but it would not hurt to have a clear table or reference point for which flights are available or applicable.

An analyst who declined to be named notes that the offer is actually a good idea from the company’s perspective, as it can be seen as a means of crowdsourcing funds towards sustaining its cashflow.

He shares that the Covid-19 outbreak has been especially harsh on AirAsia X as compared to AirAsia, considering the former’s emphasis on international flights. A number of routes had also been cut, with AirAsia X suffering from a sub-optimal balance sheet.

“We do not know when the Covid-19 outbreak will pass. If it ends earlier rather than later, consumers will be able to take advantage of the promotion. In the meantime, it is up to the consumer to decide if he wants to take the risk of going on a trip,” says an analyst, adding that it comes down to the consumer’s risk appetite.

Channel checks show that uptake is actually sizable for this promotion, but social media has also revealed a bevy of complaints against AirAsia and AirAsia X.

On the other hand, Adam Mohamed Rahim of MIDF Research opines that the promotion is “not really a good move” at this point in time for both the company and the consumer, considering the damper on global travelling sentiment caused by the Covid-19 outbreak.

At the same time, it is still too early to see the impact this promotion would have on the company’s financials, considering the fact that nobody is sure how long the Covid-19 outbreak will last.

“Might as well book for flights when conditions are proven to be safe. India and Australia reported several new cases of Covid-19, making all the destinations offered under the pass to be places with infections,” notes Adam, adding it would be good if airlines can remind and warn passengers about the risks of the coronavirus.

Is it worthwhile?

Ultimately, whether or not this deal is worthwhile depends on the risks the consumer is willing to take. Be forewarned, however, that there is a lot of homework involved in finding out if a flight will be covered by the pass, and it is the responsibility of the consumer to read the fine print as well.

According to social media, public opinion varies, with some taking up the promotion, and others denouncing it after, with one particular consumer going so far as to claim karma for having bought the pass and warned others off it.

AirAsia reached out to FocusM on March 5 after our article was posted a day earlier, referring us to its in-house article posted on its website. The article outlines the taxes for the flights to and from valid destinations, along with a list of destinations. A table of embargoed dates is also provided.

It should also be clarified that AirAsia promotional materials prior to the article, including a video starring Tan Sri Rafidah Aziz, stated five destination countries in particular, namely China, Japan, Korea, Australia, and India, without the inclusion of other locations, which were only mentioned in the AirAsia article stated above. – March 5, 2020

 

Subscribe and get top news delivered to your Inbox everyday for FREE