Air Asia Company Profile

Topics: AirAsia, AirAsia X, Kuala Lumpur International Airport Pages: 13 (2566 words) Published: April 17, 2011
Air Asia Berhad Background
Founded: 1993
Hubs: Kuala Lumpur International Airport
Secondary hubs:
* Kota Kinabalu International Airport
* Senai International Airport
* Penang International Airport
* Thai AirAsia
* Indonesia AirAsia
* VietJet AirAsia
* AirAsia RedTix

Fleet size :103 (+ 121 orders)
Destinations:70 in 19 countries
Company slogan: Now Everyone Can Fly
Parent company:Tune Group

HeadquartersRegistered office: Petaling Jaya, Selangor

Head office: Kuala Lumpur International Airport
Sepang, Selangor

Key people:Tony Fernandes (CEO)
Azran Osman Rani
Revenue▲ RM 2.635 billion (2008)
Operating income▼ RM -416 million (2008)
Net income▼ RM -497 million (2008)
Total assets▲ RM 9.521 billion (2008)
Total equity▼ RM 1.606 billion (2008)

AirAsia Berhad is a Malaysian low-cost airline. It operates scheduled domestic and international flights and is Asia's largest low-fare, no-frills airline. AirAsia is a pioneer of low-cost flights in Asia and was also the first airline in the region to implement fully ticketless travel. Its main base is the Low-Cost Carrier Terminal (LCCT) at Kuala Lumpur International Airport (KLIA). In 2010 AirAsia won the Skytrax World's best low-cost airline award. Air Asia budget with no-frills airline is introduced by Tony Fernandes with the tagline “Now everybody can fly” and the man himself is also the founder of Tune Group. No fuel surcharge and no admin fee. However, ticket fare and airport tax need to be paid.

Established in 1993 and commenced 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 purchased by former South East Asian regional vice-president Warner Music Group Tony Fernandes's company Tune Air Sdn Bhd for one ringgit. This was after great deliberation as the initial offer was fifty sen. Fernandes proceeded to engineer a remarkable turnaround, turning a profit in 2002 and launching new routes from its hub in Kuala Lumpur International Airport at breakneck speed, undercutting former monopoly operator Malaysia Airlines with promotional fares as low as RM1 (US$0.27).

Second hub
In 2003, AirAsia opened a second hub at Senai International Airport in Johor Bahru near Singapore and launched its first international flight to Bangkok. AirAsia has since 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 AirAsia.

Budget terminal
A new budget terminal, the first of its kind in Asia was opened in Kuala Lumpur International Airport on 23 March 2006. Built at a cost of RM108 million (US $29.2 million) and spanning some 35,000 square metres (116,000 square feet), the Low Cost Carrier Terminal (LCCT) is the new home for AirAsia Bhd. Initially, the LCCT handled 10 million passengers a year. AirAsia Group is expected to carry 18 million passengers in 2007. However, all airport taxes charged and collected by the airline have yet to be paid to the terminal owner, due to unknown reasons.

Low-cost model
AirAsia operates with the world’s lowest unit cost of US$0.023/ASK and a passenger break-even load factor of 52%. It has hedged 100% of its fuel requirements for the next three years, achieves an aircraft turnaround time of 25 minutes, has a crew productivity level that is triple that of Malaysia Airlines and achieves an average aircraft utilisation rate of 13 hours a day.

Airbus A320 fleet
AirAsia is currently the largest single customer of the Airbus A320 with an order of 175 units of the same plane to service its routes and at...
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