Air Asia Advertising Types

Topics: Advertising, AirAsia, Marketing Pages: 14 (4327 words) Published: March 4, 2010

Air Asia Berhad was set up by Dato' Tony Fernandes in 2001. In December 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 and set up Tune Air Sdn Bhd (Tune Air), an airline holding company then bought over AirAsia from government-owned conglomerate DRB-Hicom on December 2, 2001 which Air Asia was originally founded. AirAsia has been expanding rapidly since 2001 where Dato' Tony Fernandes later 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 RM10 (US $2.50).

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 in Australia, China, India, Korea, Japan, Middle East and Europe in its commitment.

AirAsia adopted a business concept of no-frills, hassle-free, low fare and keeping costs low. Through its philosophy of ‘Now Everyone Can Fly’, AirAsia sparked a revolution in air travel with more and more people around the region choosing AirAsia as their preferred choice of transport.

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.

AirAsia is currently the main customer of the Airbus A320. The company has placed an order of 175 units of the same plane to service its routes and at least 50 of these A320 will be operational by 2013. The first unit of the plane has arrived on 8 December, 2005.

The company Vision, Mission, and Values are as follows:


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


To be the best company to work for whereby employees are treated as part of a big family

Create a globally recognized ASEAN brand

To attain the lowest cost so that everyone can fly with AirAsia

Maintain the highest quality product, embracing technology to reduce cost and enhance service levels


AirAsia make the low fare model possible through the implementation of the following key strategies,

Safety First:
Partnering with the world’s most renowned maintenance providers and complying with the with world airline operations.

High Aircraft Utilisation:
Implementing the regions fastest turnaround time at only 25 minutes, assuring lower costs and higher productivity.

Low Fare, No Frills:
Providing guests with...

References: 1. Mohamad, Z., Pujawati, N., Othman, A. R., Sanuri, S., Hasmini, N. & wei L.S. (2007) BBPM2203 Marketing Management II Module, Open University Malaysia: Prentice Hall.
2. Air Asia Berhad Prospectus 2004.
3. Air Asia Annual Report 2007.
4. Johnson, E.M. (2002) Fundamentals of Marketing (4th Edition), American Management Association.
5. Bly, Robert W. (1993) Advertising Manager 's Handbook. Englewood Cliffs, NJ: Prentice Hall.
6. Advertising [Online] Available: [2009, February 10].
7. Air [Online] Available: [2009, February 10].
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