MUHAMMAD HAFEEZ BIN ROSLEE

Almost everybody know what AirAsia is. AirAsia is the famous low-cost airline company which conducted by a Malaysia named Tony Fernandes. The company has been established on 1993 and now has been one of the best airline in the world. This article explains the history of AirAsia and their development to be the succeeding airline company.

How it is started?

AirAsia was once a Malaysian government-controlled, full-service airline that give the slightly lower fare compared to Malaysia Airlines (MAS). In 2001, A private entrepreneur, Tony Fernandes took over the debt-ridden airline although airline industry face a downturn since September 2001 because of 9/11 tragedy. However, Fernandes believed that it was the perfect time to entering the airline market, as aircraft leasing costs had dropped  and experienced staff were readily available. As the results, AirAsia became the first no frills and low cost  carrier in Asia then generated impressive profits after its relaunch in January 2002. AirAsia's journey is not as simple as that, the company face so many challenges like the rise of oil price and competition from the other carrier provider.

Keeping No-Frill, Low Cost

Right after Tony Fernandes became the CEO of AirAsia, he invited the former director of LCC Ryanair, Connor McCarthy to join AirAsia's executive team. Fernandes took a brilliant move to invite him after witnessing the success of Western LCCs and using his experiences and knowledge to strengthen AirAsia. As the results, AirAsia become the region's first airline to introduce ticketless travel and implement a free seating policy. It also does not provide in-flight entertainment or free meals but it is ready for sale on board. These initiatives made the airfare become 40% to 60% lower compared to their rivals, suitable with their tagline "Now Everyone Can Fly".

To give the better serve to the domestic market, AirAsia has set up other four other hubs other than KLIA within Malaysia, which are Kota Kinabalu International Airport, Penang International Airport, Kuching International Airport and Senai International Airport. Since AirAsia's domestic and short-haul flights took less than four hour, its planes could do round trip on the same day. With this, it could reducing the cost for crew accommodation and allowance.

AirAsia also launched AirAsia X, the long-haul regional service. AirAsia X's flights cover the trips to Hangzhou, Perth and Gold Coast. AirAsia X use the same ticketing website, crew uniforms and management style as AirAsia. But, AirAsia X offers two-class cabins which are economy seats and premium XL seats.

Introducing New Services

Upon acquisition of AirAsia in 2001, AirAsia has introduced various new service to make their operation runs smoothly.  One of them is introduce the booking through Short Messaging Service (SMS) in August 2003 and AirAsia is the world's first airline to introduce it. This initiative is under their "Easy to Book, Easy to Pay & Easy to Fly" tagline, which they also selling their ticket trough a telephone booking center, sales offices, travel agents, and partnerships with local banks and post offices. Other than than, AirAsia became the first airline in Malaysia to offer an internet check-in which also allow passengers to pre-book their checked baggage and pre-order meals. 

Distinctive Image and Leadership

In 2008, AirAsia owned 72 aircraft, served over 100 routes in Asia-Pacific region and over 300 flights per day compared in 2002 with only three-aircraft operation. This shows that AirAsia has undergoes extraordinary expansion and they were supported by their advertising strategy. Their ads mostly focused on low fares with high quality and innovate airline. From that, they become the official airline sponsor for Manchester United football club and AT&T Williams F1 team. AirAsia also commit humanity activities such transporting aid to cyclone-hit Myanmar in 2008. Their CEO, Tony Fernandes often wearing AirAsia official red cap and T-shirt to almost every official occasion and even gave his phone number to the media representatives. By this, he gains free publicity on many occasions. The greatest achievement is when AirAsia has named as the World's Best Low-Cost Airline for 11 years in a row (2008-2019) by Skytrax while AirAsia X as the World's Best Low-Cost Airline Premium Cabin for sixth consecutive year in 2018.

With the acquisition by Tony Fernandes in 2001 has bring transformation from the debt-ridden airline into the well-known and the best LCC in the world. His intelligence of finding opportunities and partnerships and keep working until achieving success not only for AirAsia, but also himself and Malaysia. These actions should be the motivation for everyone to keep pursuing for their dreams.