Malaysia Airlines could cause a storm, if not turbulence, in premium and no-frills markets by offering rock-bottom fares while still providing a top service.

The airline has chosen Thailand as the starting point for its Zero Fares programme to Kuala Lumpur.

But, of course, Zero Fare tickets are not absolutely free. The airline charges the passenger a fuel surcharge, insurance surcharge, administration charges and baggage fee. Flying Malaysia Airlines, for example, on a Zero Fare promotion from Bangkok to Kuala Lumpur can cost a passenger about Bt2,512 in surcharges alone. This amount of money, for the airliner, is better than flying with empty seats.

About 30 per cent of the number of seats available on certain routes, according to Malaysia Airlines, will be reserved for the programme. Booking is available at www.MalaysiaAirlines.com until June 2 for travel between July 1 and December 14.

The idea has been used by low-cost carriers like Ryanair and AirAsia for their no-frill services for years, but Malaysia Airlines is the first premium airline to offer the promotion. It also applies to Southeast Asian destinations like Ho Chi Minh, Manila, Brunei, Yogyakarta and Kota Kinabalu.

Malaysia Airline still offers Everyday Low Fares (ELF) to other destinations, such as Bali (US$39 [Bt1,250]/one way), Hanoi (US$39/one way) and Singapore (SG$29 - Bt680/one way). The airline began an ELF promotion earlier this month, and hit record sales of 150,000 seats on its domestic routes.

Vijayakumaran Avili, Malaysia Airlines' manager for Thailand, says the company reported a profit of US$300 million last year after being in the red in 2006.

The comeback kid of the industry, Malaysia Airlines won Skytrax' Best Cabin Staff Award last year, beating regional champions like Singapore Airlines and Thai Airways.

The airline started flights to Bali in April, and will launch new flights to South Africa (Johannesburg, Cape Town), on June 1, with lots of promotional packages offered until the end of the year.

The carrier also plans some spring deals for their popular route to New Zealand.

Other promising packages include a new three-destination agreement with Club Med, for three-night stays in Bali (Bt25,200), the Maldives (Bt34,700) and Kuantan in Malaysia (Bt23,500).

Avili also announced new perks for their Economy-class passengers - including free use of the Business-class lounge in KL airport, and a free ticket to Kuala Lumpur for every ticket to Europe. Business-class passengers will get two free tickets to Kuala Lumpur.

And the airline has recently teamed up with Golden Holidays Co to offer a variety of holiday packages to Malaysia.

Avili says that anyone can become a member of MA's Enrich Frequent Flyer programme, simply by booking online.