AirAsia Berhad: History and Structure

Satisfactory Essays
Topics: AirAsia
AIR ASIA BERHAD
INTRODUCTION

* AirAsia Berhad is part of the AirAsia Group, a world-famous low cost airline that operates extensive networks both domestically and internationally. * Since pioneering the low-cost carrier (“LCC”) model in ASEAN in 2001, it has grown from a domestic airline to the leading airline in Malaysia serving more than 55 destinations from its five hubs in Malaysia. Along with its affiliates (Thai AirAsia, Indonesia AirAsia, Philippines’ AirAsia and AirAsia Japan), AirAsia Group is the largest low-cost carrier in Asia in terms of fleet size and number of passengers carried. * AirAsia has also been voted the World’s Best Low Cost Airline in 2009 and 2010. AirAsia Berhad is currently based in the Low Cost Carrier Terminal (LCCT), Kuala Lumpur International Airport (KLIA), Sepang. Its associate airline - AirAsiaX, is also located at the LCCT and shares operational facilities with AirAsia Berhad. * AirAsia Berhad was listed on the Main Market of Bursa Malaysia Securities Berhad in November 2004.

A Brief History of AirAsia * The airline was established by a Malaysian conglomerate in 1993 and commenced operations in 1996. * In December 2001, with the airline heavily in debt, AirAsia was purchased by Tony Fernandes of Tune Air Sdn. Bhd. for the price of RM1. As part of the purchase, Tony also took up the RM40million debt. * Under the leadership of Tony Fernandes, the airline was flying high in 2002 and launched its new route that year. In 2003, a second hub was opened in Senai International Airport, Johor Bahru, as well as the airline’s maiden international flight to Bangkok. After that the only place AirAsia was heading for is up, as the Thai and Indonesian subsidiaries were set up as well as the commencement of flights to Indonesia, Macau, China, Philippines, Vietnam and Cambodia in 2005. * AirAsia now flies to all ASEAN countries,a great portion of Asian countries that include India, Iran, Sri Lanka and

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