Preview

Air Asia: Asia's Leading Airline

Best Essays
Open Document
Open Document
3780 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Air Asia: Asia's Leading Airline
Company Background
Asia’s leading airline was established with the dream of making flying possible for everyone. Since 2001, AirAsia has swiftly broken travel norms around the globe and has risen to become the world’s best. With a route network that spans through to over 20 countries, AirAsia continues to pave the way for low-cost aviation through our innovative solutions, efficient processes and a passionate approach to business. Together with our associate companies, AirAsia X, Thai AirAsia, Indonesia AirAsia, Philippines’ AirAsia Inc and AirAsia Japan , AirAsia is set to take low-cost flying to an all new high with our belief, "Now Everyone Can Fly". (2005, AirAsia)
Establishment
AirAsia was established in 1993 and began operations on 18 November 1996. It was originally founded by a government-owned conglomerate, DRB-Hicom. On 2 December 2001 the heavily-indebted airline was bought by former Time Warner executive Tony Fernandes 's company Tune Air Sdn Bhd for the token sum of one ringgit (about USD 0.26 at the time) with USD 11 million (MYR 40 million) worth of debts. Fernandes the CEO, turned the company around, producing a profit in 2002 and launching new routes from its hub in Kuala Lumpur, undercutting former monopoly operator Malaysia Airlines with promotional fares as low as MYR 1 (USD 0.27).

International flights
In 2003, AirAsia opened a second hub at Senai International Airport in Johor Bahru near Singapore and launched its first international flight toBangkok. AirAsia has since started a Thai subsidiary, added Singapore itself to the destination list, and started flights to Indonesia. Flights to Macaubegan in June 2004, and flights to mainland China (Xiamen) and the Philippines (Manila) in April 2025. Flights to Vietnam and Cambodia followed later in 2005 and to Brunei and Myanmar in 2006, the latter by Thai AirAsia.
On August 2006, AirAsia took over Malaysia Airlines 's Rural Air Service routes in Sabah and Sarawak, operating under the



References: McNurlin, Barbara, et. al. (2009). "Information Systems Management in Practice (8th ed.)". Prentice Hall Bird, M Anon, 2004, About Us, AirAsia, http://www.airasia.com/my/en/corporate/corporateprofile.page, Accessed on the 6th of July 2012 B.K. Sidhu, 2012, Tony fernandes speask to Star Biz on Airasia 's future plans, Available from http://biz.thestar.com.my/news/story.asp?file=/2012/6/15/business/11484860&sec=business, Accessed on the 10th of July 2012. Margaret Rouse, 2009, Advanced planning and scheduling http://searchmanufacturingerp.techtarget.com/definition/advanced-planning-and-scheduling-APS, Accessed on the 5th of July 2012. Charles Kho, 2005, Strategic IT Initiative, Available from, http://sandygarink.tripod.com/papers/AA_SITA.pdf, Accessed on the 7th of July 2012. Anon, 2002, Management in Technology, Available from, http://www.unido.org/fileadmin/user_media/Publications/Pub_free/Management_of_technology_selected_papers_at_Vienna_Global_Forum.pdf Accessed on the 7th of July 2012. WIT, 2011, Technology enhances AirAsia 's product and service delivery http://www.4hoteliers.com/4hots_nshw.php?mwi=9119, Accessed on the 7th of July 2012. Bernard.A, 2005, New Roles, New Responsibilities: Today’s CIO [online], Available from http://www.cioupdate.com/insights/article.php/3468241/New-Roles-New-Responsibilities-Todays-CIO.htm, QuinStreet Inc, Accessed on 7th July 2012

You May Also Find These Documents Helpful

  • Powerful Essays

    Airasia Marketing Analysis

    • 4783 Words
    • 137 Pages

    AirAsia Berhad, which is also known as AirAsia, is an airline company that provides air transportation service. The airline was established in 1993 and started operation 18 November 1996. A government-owned conglomerate DRB-Hicom originally founded it. They were having heavily indebted on December 2,2001. An executive from company Tune Air Sdn, Tonny Fernandes, purchased it. The company’s headquarters is in Sepang, Selangor, Malaysia. After Tonny Fernandes changes all the operation management in the company, AirAsia its now can expands and becomes the largest low fare airlines even since then. With a fleet of 72 aircraft, AirAsia flies to over 61 domestic and international destination. They have 108 routes and operate over 400 flights daily from hubs located in Malaysia, Thailand, and Indonesia. Today, AirAsia has flown over 55 million guests across the region and continues to create more extensive route network through its associate companies.…

    • 4783 Words
    • 137 Pages
    Powerful Essays
  • Good Essays

    Airasia Company Analysis

    • 1210 Words
    • 5 Pages

    AirAsia was established in 2001 by Dato' Sri Dr. Tony Fernandes and his partners. The company implemented the successful low-cost carrier (LCC) business model which is a basic airline; this business model origins from the successful airlines of Southwest Airlines in Europe and Ryanair in the UK (Poon and Waring, 2010). AirAsia started its first service within Malaysia with two Boeing 737s (Kotler and Armstrong, 2012). In 2002, in order to obtain higher capacity on planes and improved fuel-cost efficiency, AirAsia replaced the existing Boeing B737s with the new Airbus A320s (AirAsia, 2012). Recently,…

    • 1210 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    In the case study ‘AirAsia: The Sky’s the Limit’, the authors Ahmad and Neal (2006) discussed AirAsia’s comeback from a debt-laden scheduled airline (US$ 10.5 million in December 2001. The airline was bought by Tune Air for a token sum of one ringgit1 or 0.26 US cents) to a profitable low-cost or budget airline that managed to attract US$ 200 million in additional capital through its initial public offering in October 2004. AirAsia Berhad or Malaysia AirAsia (hereafter referred to as AirAsia) was credited for its efforts in enabling Malaysian people to travel by air to destinations in Southeast Asia at relatively low prices. AirAsia’s business model was a replication of Southwest Airlines’ low-cost model but was spruced with ‘local touches’ in terms of its marketing management practices. In December 2004, AirAsia formed a joint venture airline in…

    • 279 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Airasia Strategy

    • 7394 Words
    • 30 Pages

    AirAsia was established in 1993. It was originally founded by a government-owned company Hicom Berhad with a 75% interest and Mofaz Air with a 25% interest. Other than the initial capitalization, Mofaz Air did not participate in a number of subsequent cash calls by the Company. In 1996, the Company became Malaysia’s second national carrier, and officially commenced operations as full-service domestic airline with two aircraft. In December 2001, Tune Air acquired a 99.25% shareholding in the Company…

    • 7394 Words
    • 30 Pages
    Good Essays
  • Good Essays

    “The company was incorporated in 2001, as a private limited liability company both incorporated and domiciled in Malaysia. AirAsia was converted into a public limited liability company on 8th June 2004 and became listed on the Main Board of Bursa Malaysia Securities Berhad on 22 November 2004. The principal activity of AirAsia is providing Air Transportation Services”.…

    • 943 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Introduction to AirAsia

    • 10721 Words
    • 43 Pages

    The main hub of AirAsia is in Kuala Lumpur, namely the Low Cost Carrier Terminal (LCCT). In 2003, AirAsia launched its second hub at the Senai International Airport in Johor Bahru. Besides, AirAsia also launched its first international flight to Bangkok in the same year. Since then, AirAsia’s has been expanding its routes to different countries such as Singapore, Indonesia, Philippines, and China.…

    • 10721 Words
    • 43 Pages
    Powerful Essays
  • Powerful Essays

    Air Asia Advertising Types

    • 4327 Words
    • 18 Pages

    Starting with only two planes till now AirAsia owns more than 72 aircrafts. AirAsia become an award winning and the largest low cost carrier in Asia with leading low fare airline in the Asia. In 2003, AirAsia opened a second hub at Senai Airport in Johor Bahru near Singapore and launched its first international flights to Thailand. AirAsia has since started a Thai AirAsia subsidiary, added Singapore itself to the destination list, and started flights to Indonesia. Flights to Macau started in June 2004, while flights to mainland China (Xiamen) and the Philippines (Manila) were started in April 2005. Flights to Vietnam and Cambodia followed later in 2005. AirAsia flies to over 61 domestic and international destinations with 108 routes, and operates over 400 flights daily from hubs located in Malaysia, Thailand and Indonesia. To date, AirAsia has flown over 55 million guests across the region and continues to spread its wings to create more extensive route network through its associate companies, Thai AirAsia and Indonesia AirAsia. AirAsia is also spreading the amazing experience to exciting destinations…

    • 4327 Words
    • 18 Pages
    Powerful Essays
  • Powerful Essays

    Fernendes reformed this highly indebted airline by introducing short haul low cost carrier. The first and main base of AirAsia is the Low Cost Carrier Terminal (LCCT) at Kuala Lumpur International Airport, while its secondary hubs are at Kota Kinabalu International Airport, Senai International Airport and Penang International Airport. It continues to pave the way for low-cost aviation for international flights and successfully launched the first international flight to Bangkok.…

    • 4944 Words
    • 20 Pages
    Powerful Essays
  • Powerful Essays

    air asia

    • 1392 Words
    • 6 Pages

    Air Asia is established on 12 December 2001 by Mr. Tony Fernandes, the CEO of Air Asia and expanding rapidly since that. Air Asia is the leading low fare airline in Asia and Air Asia succeed to become the award winning, ‘Asia Pacific Airlines of the year 2003’ by Centre for Air Pacific Aviation (CAPA) in 2003. Air Asia has successfully positioned itself in customers’ mind by using the “ Now Everyone Can Fly” slogan. Air Asia had flown over 55 million guests across the region and continually create more extensive route network through its associate companies. Air Asia flies over 61 domestics and international destinations with 108 routes and operates over 400 flights daily from hubs located in Malaysia, Indonesia, and Thailand with a fleet of 72 aircrafts. Air Asia’s net profit for the second quarter ending 31 December 2004 was reported RM44.4 million, a 323% increase over the previous quarter (Air Asia 2005). The vision of Air Asia is to serve the 3 billion people who are currently underserved with poor connectivity and high fare and to be the largest low cost airlines in Asia. Their mission is to create a globally recognized ASEAN brand, to attain the lowest cost so that everyone can fly with Air Asia, to be the best company to work for as employees are treated as part of a big family, and to maintain the highest quality product, embracing technology to reduce cost and enhance service levels.…

    • 1392 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    PEST Analysis Of AirAsias

    • 3039 Words
    • 10 Pages

    AirAsia was set up by Dato' Tony Fernandes in 2001. In December 2001, Fernandes and his partners set up Tune Air Sdn Bhd (Tune Air), an airline holding company then bought over AirAsia. Now, AirAsia has become one of the most successful airlines in the Southeast Asian region and the pioneer of low cost and no frills travel in Malaysia.…

    • 3039 Words
    • 10 Pages
    Good Essays
  • Satisfactory Essays

    A 78ir Asia Berhad

    • 605 Words
    • 3 Pages

    Air Asia Berhad is the name of the company who brings the name of the country, Malaysia to be known throughout the world. Air Asia Berhad was known as the only Malaysian-based low cost airline and also holds the status of a pioneer of low-cost travel in Asia. Air Asia was first established during the year of 1993 where during that time, it is a bad time for aviation industry to survive, but it becomes miracle, when Air Asia managed to survived and become the leader in providing low-cost air carrier service. In the year of 2002, with the heavily in debt of sum about rm40 million, the company which first owned by DRB Hicom was purchased by Tune Air Sdn Bhd, executives by Tony Fernandes. The very man which acts as the brain of the company is named as Tony Fernandes. This man is the man behind the scenes that brings Air Asia from zero to hero. With the famous slogan “Now everyone can fly”, Air Asia heavily concern on bringing the low price of aviation service to the public. Air Asia’s main hub was located in the Low-cost carrier terminal (LCCT) at Kuala Lumpur International Airport (KLIA) at Sepang. AirAsia launched its first international flight to Bangkok In 2003 when it opened a second hub at Senai International Airport in Johor Bahru. Air Asia later started a Thai subsidiary, added Singapore itself to the destination list, and commenced flights to Indonesia. Flights to Macau started in June 2004, while flights to Mainland China (Xiamen) and the Philippines (Manila) started in April 2005. Flights to Vietnam and Cambodia followed later in 2005 and to Brunei and Myanmar in 2006, the latter by Thai Air Asia. On August 2006, Air Asia took over Malaysia Airlines's Rural Air Service routes in Sabah and Sarawak, operating under the Fly Asian Xpress brand, the routes were subsequently returned back to MASwings a year later citing commercial reasons. Air Asia has further enhanced its presence in Asia by strengthening and enhancing its route network…

    • 605 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Air Asia was established on 12 December 2001 by Mr. Tony Fernandes, the CEO of Air Asia and expanding rapidly since that. Air Asia is the leading low fare airline in Asia and Air Asia succeed to become the award winning, ‘Asia Pacific Airlines of the year 2003’ by Centre for Air Pacific Aviation (CAPA) in 2003. The vision of Air Asia is to serve the 3 billion people who are currently underserved with poor connectivity and high fare and to be the largest low cost airlines in Asia. Their mission is to create a globally recognized ASEAN brand, to attain the lowest cost so that everyone can fly with Air Asia, to be the best company to work for as employees are treated as part of a big family, and to maintain the highest quality product, embracing technology to reduce cost and enhance service levels.…

    • 611 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Air Asia essay summary

    • 3279 Words
    • 14 Pages

    AirAsia is a Malaysian low-cost airline headquartered in Kuala Lumpur International Airport, Sepang. It is Asia’s largest low-fare, no frills airline and a pioneer of low cost travel in Asia. AirAsia group operates scheduled domestic and international flights to over 400 destinations spanning 25 countries. Its main hub is the Low-Cost Carrier Terminal (LCCT) at Kuala Lumpur International Airport (KLIA). Its affiliate airlines are Thai AirAsia, Indonesia Airasia, AirAsia Philippines and AirAsia Japan, which have hubs in Don Mueng International Airport, Soekarno-Hatta International Airport, Clark International Airport and Narita International Airport.…

    • 3279 Words
    • 14 Pages
    Good Essays
  • Satisfactory Essays

    Ob Air Asia

    • 707 Words
    • 3 Pages

    It has been a great pride in the history of AirAsia that has overcome the difficulties to pave the way for low-cost aviation. Since December 8, 2001, when the company was taken over by the new AirAsia management, Dato’ Seri Tony Fernandes, AirAsia has grown to become the largest low-cost carrier in Asia. It is a pioneer of low-cost flights in Asia and was also the first airline in the region to implement fully ticketless travel. The main hub is the low-cost carrier terminal (LCCT) at Kuala Lumpur International Airport. Today the airlines are operating in Malaysia, Thailand and Indonesia. AirAsia X, Indonesia AirAsia, Thai AirAsia, Philippines ' AirAsia Inc and AirAsia Japan are their associate companies. With more than 6,000 talented, diligent and committed employees and a market capitalization in excess of RM2 billion, AirAsia has earned a reputation as a consistent performer…

    • 707 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Air ASIA

    • 1123 Words
    • 19 Pages

    • Air Asia is proud to be a truly ASEAN carrier. • Had flown over 100 million guests upon the core believe that “Now Everyone Can Fly”. • Main terminal hub is the Low- Cost Carrier Terminal (LCCT) at Kuala Lumpur International Airport (KLIA). • Air Asia’s associates companies-…

    • 1123 Words
    • 19 Pages
    Satisfactory Essays