Air Asia: Asia's Leading Airline

Topics: AirAsia, Supply chain management, Airline Pages: 12 (3780 words) Published: February 20, 2013
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 FlyAsianXpress brand. The routes were subsequently returned to MASwings a year later, citing commercial reasons. AirAsia's CEO Tony Fernandes subsequently unveiled a five-year plan to further enhance its presence in Asia. Under the plan, AirAsia proposes to strengthen and enhance its route network by connecting all the existing cities in the region and expanding further into Vietnam, Indonesia, Southern China (Kun Ming, Xiamen, Shenzen) and India. The airline will focus on developing its hubs in Bangkok and Jakarta through its sister companies, Thai AirAsia and Indonesia AirAsia. With increase frequency and the addition of new routes, AirAsia expects passenger volume to reach 18 million by the end of 2007.

Route expansion
On 27 September 2008, the company had on its list 106 new routes to be added to its then-current list of 60. The number of old routes discontinued has not been publicly disclosed. On 2nd of April 2012 Air Asia had their first flight from Sydney to Kuala Lumpur. Sebastian Tegan-Anderson was one of the lucky few to be on this historical flight.

AirAsia-Malaysian Airlines Alliance
In August 2011, AirAsia agreed to forge an alliance with Malaysian Airlines by means of a share swap. The alliance was struck down by the Malaysian government, in effect voiding the agreement of both airlines.

AirAsia's vision
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.

AirAsia's mission
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's values
We make the low fare model possible through the implementation of the following key strategies, •Safety First:
Partnering with the world’s most renowned...

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