1.0 Introduction to AirAsia
Established in 1993 and officially started its operation on 18 November 1996, AirAsia is a low cost carrier (LCC) airline in the aviation industry. On 2 December 2001, the heavily-indebted government-linked commercial airline was bought over by the current Chief Executive Officer (CEO) of AirAsia, Tony Fernandes. From then, AirAsia cleared its former debts which worthed USD 11 million and became a profit-making low cost carrier. 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. AirAsia’s low fare service is not limited to flights in Asia countries. In 2009, AirAsia launched its flight to London through AirAsia X, an associate company that offers long-haul services from Kuala Lumpur. Through AirAsia X, AirAsia has successfully opened various profit-making routes to countries such as Australia, France, Iran, New Zealand and South Korea. With that, AirAsia has successfully managed to build a bigger and stronger customer base. To date, AirAsia flies over 61 domestic and international destinations with 108 routes and operates over 400 flights daily from hubs located in Malaysia, Thailand and Indonesia. Furthermore, AirAsia has flown over 55 million guests across the region and will continue to create more route network in order to deliver greater benefits to the customers. With the joint efforts together with its five subsidiaries, namely Thai AirAsia, Indonesia AirAsia, VietJet AirAsia, AirAsia Philiphines, and AirAsia Japan, AirAsia promises to deliver the lowest fare to the customers in the hope of getting the customers to the desired destinations. Besides generating profits from the day to day operation, AirAsia is also concerned about the community. AirAsia has been involving itself in many Corporate Social Responsibility (CSR) activities in order to give back and lend a hand to the community. Air Asia's other CSR initiatives extend towards its work in extending help during natural calamities. For example, they joined hand with UNICEF to raise $128 million for children and families affected by the earthquake in Haiti. They also provided transportation of aid to cyclone-ravaged Myanmar. Aid workers are always offered free transport to and from disaster areas.
In the light of leading AirAsia to the route of success, Tony Fernandes’s effort in promoting, restructuring and leading the entire AirAsia and the team of staff is undisputable. Withstanding the negative responses from the mass media on the survival ability of AirAsia as a budget airline, Tony Fernandes has proven that his mission and vision are feasible under his leadership. Thus, Tony Fernandes is the significant mastermind that has paved the way to success for AirAsia. Tony Fernandes’s outstanding leadership is displayed through various medium. The most explicit one would be the awards that Tony Fernandes has received as an acknowledgement of his exceptional leadership. For example, Tony Fernandes was awarded the International Herald Tribune Award for the “Visionaries & Leadership Series" for his outstanding work in AirAsia, and also the “Malaysian CEO of the Year 2003" in December 2003, which was a highly acclaimed recognition, so far awarded to only nine other recipients in the country by American Express and Business Times. The award was an initiative to recognize entrepreneurial and managerial expertise and performance among leaders of Malaysian corporations. With the slogan ‘Now Everyone Can Fly’ together with the exceptional leadership ability of Tony Fernandes, AirAsia is able to reach out to the people from all walks of life and AirAsia proves that flying is no longer a...
Please join StudyMode to read the full document