Airasia Berhad

Topics: Airline, Low-cost carrier, Malaysia Airlines Pages: 2 (405 words) Published: April 24, 2013
AirAsia Berhad (AirAsia) is the Malaysian low-cost airline that offers the different type of services in line with the nation’s aspirations which takes the form of no-frills and low-airfares to benefit all national and worldwide travelers. Through the corporate philosophy of “Now Everyone Can Fly” and its mission is to offer affordable fares without any compromise to Flight Safety Standards. In additional, AirAsia’s main hub is Low-Cost Carrier Terminal (LCCT) which its head office situated at Kuala Lumpur International Airport (KLIA). AirAsia runs scheduled domestic and also international flights to over 400 destinations around 25 countries worldwide. Moreover, AirAsia is a listed company that incorporated as a private limited liability company. It was domiciled in Malaysia as well. Initially, AirAsia was established in 1993 and started its operation on 18 November 1996. It is the government based-owned company and acts as a full-service regional airline that providing slightly low airfares compare with other competitors. However, AirAsia was failed to sufficiently neither stimulate the market nor attract customers from Malaysia Airlines (MAS) to establish its own niche market. It confronted the heavily-indebted. The turning point of AirAsia was in the year of 2001 when Tony Femandes, founder of Tune Air Sdn Bhd had bought the AirAsia. He successfully turned the dept into profit and begins new routes in Malaysia and thus became the main competitors of MAS, the monopoly airline services supplier in Malaysia. Therefore, AirAsia change the airline service market in Malaysia to oligopoly market and this affect the Malaysia Airlines seriously because it sells the homogeneous compared with Malaysia Airlines. On the other hand, AirAsia is offering air transportation service and also the principal activities of the subsidiaries such as provision of in-flight meals, tour operating business, provides aircraft leasing facilities and the...
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