AirAsia
Company Profile
AirAsia is a name synonymous with low fares, quality service and dependability. With over 130 routes linking three continents, AirAsia is truly Asia’s largest low cost carrier with the widest route connectivity and largest customer.base.
With the unmistakable tagline, ‘Now Everyone Can Fly’, AirAsia has made flying affordable for more than 90 million guests.
Our Commitment:
AirAsia has committed with a firm order of 175 Airbus A320 aircraft with an option of 50, thus securing our growth pipeline up till 2015. We are committed to being a truly ASEAN airline that operates an extensive route network, fosters economic prosperity, stimulates tourism and promotes stronger cultural integration.
Company Background
It started with a simple goal: How to free air travel from the clutches of the elite and make it so affordable that “Now Everyone Can Fly.” Together with partners Dato’ Pahamin Rejab (former chairman of AirAsia), Dato’ Kamarudin Meranun, and Dato’ Aziz Bakar, Dato’ Sri Dr Tony Fernandes founded Tune Air Sdn Bhd in 2001 and immediately set about the mission to democratise air travel. Together they bought the then loss making AirAsia from its Malaysian owner HICOM Holdings Berhad (now known as DRB-HICOM Berhad), for a token RM1 (USD
0.25 cents), and agreed to assume the debts of the company. Driven by Dato’ Sri Dr Tony Fernandes and with help of his partners, AirAsia was able to repay the debts it inherited from HICOM Holdings Berhad.
AirAsia was resurrected, re-branded and re-launched as a low-cost carrier and began its new life with two planes (both ageing Boeing B737 aircraft), five destinations (Kota Bahru, Kota Kinabalu, Kuching, Labuan, Langkawi and Penang) and a staff of 250. Just over eight years later, the AirAsia Group (including its Thai and Indonesian affiliates) operates a fleet of 90 aircraft and flies to more than 60 destinations from hubs in Malaysia, Thailand and Indonesia. AirAsia operates more than 3,500 flights a week, colouring the blue skies over Asia a bright red with their striking livery. The Group employs close to 7,500 staff and in its short history, has ferried more than 90 million guests.
Asia’s largest low-cost carrier is now proud to be a truly ASEAN (Association of South East Asian Nations) carrier, linking communities, cultures and cities across this diverse region with its “sky bridges” that enable affordable and convenient travel, stimulate regional and local economies and help realise the ASEAN dream of integration.
Serving the underserved has helped make AirAsia popular with the masses. Its RM3.2 billion valuation on Bursa Malaysia has made it a sought-after stock with investors. Its status as a global brand makes it a shining star in the Malaysian corporate firmament. The flat management and open floor workplace make it an employer of choice for its hardworking, dedicated, talented and creative staff.
Tan Sri Dr. Tony Fernandes, Dato’ Aziz Bakar, Dato’ Kamarudin Meranun, Dato’ Pahamin A. Rejab (from left to right)
Why AirAsia Growing So Fast?
Domestic and Short-Haul Regional Services
The primary hub was at the Kuala Lumpur International Airport(KLIA), then AirAsia set up three other hubs within Malaysia to better serve the domestic market. In 2004, while continuing to expand its domestic business, AirAsia started to provide regional flights to neighbouring countries.
First Airline Online Check-in system in Malaysia
In early 2007, AirAsia became the first airline in Malaysia to offer an internet check-in service, allowing domestic travellers to enjoy online check-in and to print out their own boarding passes.
Long-Haul Regional Service: AirAsia X
Despite most LCCs being hesitant to operate long-haul routes due to cost concerns, AirAsia launched its first long-haul flight to Australia’s Gold Coast in late 2007 through its sister airline, AirAsia X. Unlike AirAsia, it offered two-class cabins (ie, economy seats and premium XL
seats) and allowed passengers to reserve seats when booking in advance.
Moving Down the Value Chain
AirAsia had evolved from a classic LCC into an integrated service provider, offering not only no-frills air tickets but also financial services such as travel insurance, as well as other holiday products. Having sought out various companies to partner with, the company offered online booking services for hotels, hostels, car rentals, cruises and medical care.
Value-Added Services
Other than providing low fare flight, Air Asia had also evolved into an integrated service provider, offering financial services including travel insurance and holiday products. To stand out from the competition, Air Asia also partnered with companies to provide online services such as hotels, car rental, cruises and medical care. Furthermore, Air Asia launched the co-branded Citibank-AirAsia credit card which allows cardholders to earn free flight by purchasing at specific stores. This approach is a big success as cardholders could enjoy discounts on holiday packages and privileges over 40,000 restaurants and retails worldwide
Outstanding of AirAsia
Price War & Long Haul Regional Service
In the year of 2007, Air Asia launched its first long haul flight to Australia Gold Coast through its sister airline, Air Asia X. Sir Richard Branson, a British tycoon holds a 20% stake of Air Asia X. Air Asia X offers two-class cabins, economy seats and premium XL seats to suit the needs of customers.
In the airline price war, Air Asia launched "Sub Zero Fair" campaign to fight back MAS which had launched the "Everyday Low Fair" campaign. Air Asia offered tickets prices below the prices offered by MAS. In 2006, Air Asia became the largest domestic national airline in Malaysia with the number of passengers expected to increase to 18 million in 2007.
Others
AirAsia X
2009 was a watershed for AirAsia X Sdn Bhd. In the toughest year in the history of global aviation, with the global economic crisis compounded by the AH1N1 outbreak, we achieved our first full year of profitability. Our success was anchored on our ground-breaking world’s lowest unit cost position of US2.7 cents per seat-kilometre. This vindicates the founders of AirAsia X who believed in the potential of the low-cost, longhaul model despite facing tremendous scepticism.
Via AirAsia X trunk routes, AirAsia attracts guests from markets like Australia, North Asia and Europe who come to Southeast Asia and travel around on AirAsia’s short-haul network, creating a major competitive advantage over other low-cost carriers that are limited by only having short-haul services.
Going forward, AirAsia X is poised to continue its high growth trajectory, increasing its fleet size from eight longhaul aircraft (six A330 aircraft and two A340 aircraft) to 11 by the end of 2010, and up to 25 by 2015. Five of its present fleet are new A330 aircraft purchased through financing raised on its own balance sheet strength and cashflow. In 2010, AirAsia X intends to maintain its focus on core markets in Australia, Greater China and India, and start to open up new markets in Korea and Japan.