Air Asia Annual Report 2007

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AirAsia Berhad (284669-W)
25-5, Block H, Jalan PJU 1/37, Dataran Prima, 47301 Petaling Jaya, Selangor Darul Ehsan, Malaysia Tel : (603) 78809318 Fax : (603) 78806318 E-mail : investorrelations@airasia.com Website : www.airasia.com

CONTENTS
AirAsia Berhad | annual report 2007

Our Dreams and Aspirations
To be the largest low cost airline in Asia serving the 3 billion people who currently are underserved with poor connectivity and high fares. G

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2 4 7 8 12 20 22 24 26 30 32 34 36 40 42 43 44 46 47 48 52 53 54 56 60 62 66 68 72 76 81 82 83 152 156 157 G

Our Dreams and Aspirations Corporate Profile Five Year Financial Highlights Share Performance Chairman’s Statement Group Chief Executive Officer’s Report AirAsia’s Strategy for Success Route Network Safety Product Development Go Holiday The Sky is Your Limit Champion of Low Fares AirAsia Roars Into Formula One One AirAsia Our People, Our Pride Investing In Our Future Major Milestones Serving You Better from Our 2nd LCC Terminal Awards & Accolades AirAsia Cares AirAsia Group Corporate Information Board of Directors Directors’ Profile Senior Management Senior Management Profile Managing Risk to Maximise Returns AirAsia Financial Snapshots Statement on Corporate Governance Audit Committee Report Statement on Internal Control Additional Compliance Information Financial Statement Analysis of Shareholdings List of Properties Held Notice of Annual General Meeting Proxy Form

To be the best company to work for where employees are treated as part of a big family Create a globally recognised ASEAN brand To strive for the lowest cost so that all of the 3 billion people can fly with AirAsia Maintain the highest quality product using the best technology to reduce cost and enhance service level

G

G

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China

Myanmar Laos

Macau

AirAsia – Asia’s low cost leader
AirAsia flies to over 86 routes across 11 countries in ASIA.

Thailand

Cambodia Vietnam

Philipines

Malaysia

Thailand

Indonesia

Singapore

Philippines

Cambodia

Malaysia

Brunei

Vietnam

Myanmar

Singapore

Indonesia

Laos

Macau

China

COUNTRY OF OPERATIONS
Malaysia AirAsia was incorporated on 20 December 1993. Currently Malaysia has a staff stength of MALAYSIA

2,924.

Thai AirAsia was launched on 3 February 2004 as our first joint venture. Currently Thailand has a staff stength of THAILAND

1,381.

Indonesia AirAsia was launched on 8 December 2004. This is our second associate in the region. Currently Indonesia has a staff strength of INDONESIA

745.

C O R P O R AT E P R O F I L E
AirAsia Berhad (“AirAsia” or “the Company”) is a name synonymous with low fares, quality service and dependability. With over 86 routes across 11 countries, AirAsia is truly Asia’s leading airline 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 40 million guests. Against All Odds

In 2001, Dato’ Tony Fernandes along with Dato’ Pahamin Ab. Rajab (Chairman, AirAsia), Dato’ Kamarudin bin Meranun (Deputy Group Chief Executive Officer, AirAsia) and Abdul Aziz bin Abu Bakar (Director, AirAsia) formed a partnership to set up Tune Air Sdn Bhd and bought AirAsia for a token sum of RM1.00. With the help of Conor Mc Carthy (Director, AirAsia; Director, former Director of Tune Air Sdn Bhd and former Director of Group Operations, Ryanair), AirAsia was remodeled into a low cost carrier and by January 2002, their vision to make air travel more affordable for Malaysians took flight. Valued at RM4.5 billion, AirAsia is today an award winning and the largest low cost carrier in Asia. From a two aircraft operation of Boeing 737-300, AirAsia currently boasts a fleet of 60 aircraft that flies to over 50 domestic and international destinations and operates over 400 domestic and international flights daily from six hubs located at Low Cost Carrier Terminal (KLIA), Johor Bahru,...
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