Budget airline AirAsia says it has been given the go-ahead to continue running advertisements which a minister last week labelled "misleading".

AirAsia chief executive officer Tony Fernandes told today's New Straits Times that the controversy had been sorted out at a meeting with officials of the consumer affairs ministry.

Culture, Arts and Tourism Minister Abdul Kadir Sheikh Fadzir last week accused the no-frills airline of misleading consumers with adverts promising tickets for some domestic destinations starting at less than a dollar.

The minister said the offer only applied to a minority of seats available on each flight while the remainder of the ticket prices matched those of any other airline.

Fernandes defended the ads, saying they made clear that not all seats were at the rock-bottom prices.

AirAsia officials also met with Abdul Kadir on Monday, and would meet again to thrash out ways in which they could work together to promote tourism in the country, Fernandes said. - AFP