Airasia Essay 7

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Company Background
AirAsia Berhad as know as AirAsia is a Malaysian low-cost airline. It operates scheduled domestic and international uflights and is Asia's largest low fare, no frills airline. AirAsia pioneered low cost travelling in Asia. The airline was established in 1993 and started operations on 18 November 1996. A government-owned conglomerate DRB-Hicom originally founded it. On 2 December 2001, the heavily-indebted airline was purchased by former Time Warner executive Tony Fernandes's company Tune Air Sdn Bhd. AirAsia is the first airline in the region to implement fully ticketless travel and unassigned seats. However, as of 5 February 2009, AirAsia has implemented allocated seatings across all AirAsia flights, including in their sister airlines, Indonesia AirAsia and Thai AirAsia.

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.

Its main base is the Low Cost Carrier Terminal (LCCT) at Kuala Lumpur International Airport (KLIA). LCCT will initially handle 10 million passengers a year. Its affiliate airlines Thai AirAsia and Indonesia AirAsia have hubs at Suvarnabhumi Airport, Thailand and Soekarno-Hatta International Airport, Indonesia, respectively. The airline is also considering founding Hong Kong AirAsia in the future. AirAsia's registered office is in Petaling Jaya, Selangor while its head office is on the grounds of Kuala Lumpur International Airport in Sepang, Selangor.

AirAsia operates with the world’s lowest unit cost of US$0.023/ASK and a passenger break-even...
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