AirAsia

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Not to be confused with Air Asia (Republic of China), a Taiwanese aircraft service company.
AirAsia
Penerbangan AirAsia
亞洲航空
ஏர் ஏசியா
IATA
AK		 ICAO
AXM		 Callsign
ASIAN EXPRESS
Founded 1993
Hubs Kuala Lumpur International Airport
Secondary hubs
Frequent-flyer program BIG[1]
Subsidiaries
Fleet size 54 excl. subsidiaries
Destinations 73
Company slogan Now Everyone Can Fly
Parent company Tune Group
Headquarters Registered office: Petaling Jaya, Selangor
Head office: Kuala Lumpur International Airport
Sepang, Selangor
Key people
Revenue increase RM 3.95 billion (2010)[2]
Operating income increase RM 1.099 billion (2010)
Net income increase RM 1.067 billion (2010)
Total assets increase RM 13.24 billion (2010)
Total equity increase RM 3.641 billion (2010)
Website www.airasia.com
An AirAsia Boeing 737-300 in special livery denoting the Malaysian flag.
AirAsia Airbus A320 departing Kuala Lumpur International Airport

AirAsia Berhad (MYX: 5099) is a Malaysian-based low-cost airline. AirAsia is Asia's largest low-fare, no-frills airline and a pioneer of low-cost travel in Asia.[3] AirAsia group operates scheduled domestic and international flights to over 400 destinations spanning 25 countries. Its main hub is the Low-Cost Carrier Terminal (LCCT) at Kuala Lumpur International Airport (KLIA). Its affiliate airlines Thai AirAsia and Indonesia AirAsia have hubs in Suvarnabhumi Airport and Soekarno-Hatta International Airport respectively. AirAsia's registered office is in Petaling Jaya, Selangor while its head office is at Kuala Lumpur International Airport.[4][5] Air Asia plans to open ASEAN regional headquarters in Jakarta by August or September 2011.[6] The airline itself will maintain its headquarters in Kuala Lumpur for the time being.[7]

AirAsia won the Skytrax World's best low-cost airline award in 2007, 2009, 2010 and 2011.[8] It has the world's lowest operating costs at USD 0.035/seat-kilometre in 2010.[9] It is also the first airline in the region to implement fully ticketless air travel.[citation needed]

Contents

[edit] History

[edit] 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 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).

[edit] Second hub

In 2003, AirAsia opened a second hub at Senai International Airport in Johor Bahru near Singapore and launched its first international flight to Bangkok. AirAsia has since started a Thai subsidiary, added Singapore itself to the destination list, and started flights to Indonesia. Flights to Macau began in June 2004, and flights to mainland China (Xiamen) and the Philippines (Manila) in April 2005. Flights to Vietnam and Cambodia followed later in 2005 and to Brunei and Myanmar in 2006, the latter by Thai AirAsia.

[edit] Expansion abroad

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.[10] 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.

[edit] 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.[11]

[edit] Alliance

In August 2011, AirAsia agreed to forge an alliance with Malaysian Airlines by means of a share swap.[12]

[edit] Operations

AirAsia operates with the world's lowest unit cost of USD 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.[13]

All scheduled AirAsia departures from Kuala Lumpur use the Low Cost Carrier Terminal. AirAsia had abolished its fuel surcharges on November 2008,[14] but, due to rising oil prices, the fuel surcharge was re-introduced in May 2011.[15]

[edit] Criticism

In 2007 passengers from 'The Barrier-Free Environment and Accessible Transport Group' protested against the airline over its refusal to fly passengers who were completely immobile.[16] They claimed that the disabled were discriminated against when booking tickets online; the CEO of the airline denied that it turned away wheelchair-using passengers.[17]

[edit] Subsidiaries

[edit] Thai AirAsia

Main article: Thai AirAsia

Thai AirAsia (Thai: ไทยแอร์เอเชีย) was established on 8 December 2003 as joint venture with Shin Corporation. Flight operations commenced on 13 January 2004 from its base in Don Mueang International Airport. Since 25 September 2006, the airline is based at the new Suvarnabhumi Airport.

[edit] Indonesia AirAsia

Main article: Indonesia AirAsia

AirAsia (Indonesian: Maskapai AirAsia) acquired the then defunct Awair in 2004 with a 49% stake in the airline. Awair commenced services on behalf of AirAsia in December 2004; full rebranding to Indonesia AirAsia was completed on 1 December 2005. The airline is based at Soekarno-Hatta International Airport with a secondary hub at Ngurah Rai International Airport

[edit] VietJet AirAsia

Main article: VietJet AirAsia

In February 2010, AirAsia announced that it had purchased a 30% stake in VietJet and changed the name to VietJet AirAsia. VietJet AirAsia is based in Hanoi, and planned to fly to Ho Chi Minh City and Da Nang. The plan was later aborted as the airline had failed to reach an agreement with the Vietnamese government. [18]

[edit] AirAsia Philippines

Main article: AirAsia Philippines

The Philippines Board of Investment approved AirAsia's joint venture application on 7 December 2010. The Philippine affiliate is expected to begin commercial flights on 1 September 2011,[19][20][21] in partnership with Philippine businessman Antonio Cojuangco.[22] The airline will use Diosdado Macapagal International Airport[23] as its main Philippines hub.

[edit] AirAsia Japan

Main article: AirAsia Japan

On 21 July 2011, AirAsia announced that it had agreed on a joint venture with All Nippon Airways for the creation of AirAsia Japan.[24][25] The airline is to be based at Narita International Airport. The company will be formed in August 2011 and will begin applying for Air Operators Certificate (AOC) in September or October of the same year. The first flight is expected in August 2012.

[edit] Air Asia X

Main article: AirAsia X

AirAsia X is an associate company that offers long-haul services from Kuala Lumpur to Australia, China, France, India, Iran (Tehran), Japan, New Zealand, South Korea, Taiwan (Taipei), and the United Kingdom (Gatwick) using the Airbus A330-200, A330-300 and A340-300, and in the future the A350-900.

[edit] Destinations

Main article: AirAsia Group destinations
AirAsia flight network within Malaysia as of March 2011.

AirAsia currently operates more than 142 routes[26] to 78 destinations,[27] with over 400 daily flights[28][29][30][31][32] covering Indonesia, Malaysia and Thailand and with domestic and international routes, primarily from Kuala Lumpur, to Australia, Bangladesh, Brunei, Cambodia, the People's Republic of China, France, Iran, India, Japan, Laos, Myanmar, New Zealand, Philippines, South Korea, Singapore, Sri Lanka, Taiwan, the United Kingdom and Vietnam.

[edit] Fleet

AirAsia plane sporting the "Airline of the Year" livery, taxying to its gate in Kuching

The total AirAsia fleet (excluding Thai AirAsia, AirAsia X and Indonesia AirAsia) consists of the following aircraft as of 20 February 2010:

AirAsia fleet
Aircraft In fleet Orders Passengers Notes
Airbus A320-200 56 180
Airbus A320neo 0 200[33]
TBA
 enter into service:2016
Total 56 200

Future A320 deliveries[34]

Year Number of Aircraft
2011 8[35]
2012 24
2013 24
2014 24
2015 9[35]

[edit] Fleet renewal

AirAsia began a gradual conversion of its fleet from the Boeing 737–300 to the Airbus A320-200. The first order, for 40 Airbus A320 aircraft and 40 more on option, was made in a Memorandum of Understanding on 17 December 2004. When the contract was signed on 25 March 2005, the order was increased to 60 firm orders with 40 on option.[36] The first six Airbus A320s were delivered on 9 December 2005, the remaining 54 aircraft from the 2005 order to be delivered by June 2009.[37]

On 19 July 2006, the airline exercised its options on 40 Airbus A320-200s to increase its total firm orders to 100 aircraft, with another 30 on option.[38] It made a third firm order of 50 A320-200s and increased the options to 50 on 8 January 2007, for delivery by December 2013. The Airbus A320-200 was expected to completely replace the Boeing 737–300 fleet at the Kuala Lumpur base by July 2007.[39] The airline made its latest order of 25 firm orders on 25 November 2007, bringing its total orders for Airbus aircraft to 175 with 50 on option.[40][41]

In August 2009, AirAsia signed an amendment agreement with Airbus to defer the delivery dates for 8 of its A320s aircraft by four years to 2014 due to "infrastructural constraints" at the existing low-cost carrier terminal (LCCT) in Sepang as it cannot accommodate its fleet expansion. The rationale to scale down the delivery of aircraft in 2010 and possibly 2011 is to enable AirAsia to optimize its fleet and avoid the costs associated with leaving aircraft idle or under-used due to infrastructural limitations, avoiding having to incur depreciation, interest payments and other costs without earning revenue. The infrastructural constraints will continue at the current airport until the new low-cost carrier terminal is built. Earlier, in February 2009, the Malaysian government vetoed an ambitious plan by AirAsia to build a USD 460 million airport nearby as KLIA East @ Labu.[42][43]

In June 2011 AirAsia ordered 200 Airbus A320neos at the Paris Air Show.[44][45] The planes are due to become available in 2015, and the deal is one of the largest ever for commercial aircraft in a single order.[44] The deal was worth USD 18 billion at list prices, although it is likely that AirAsia obtained a substantial discount from those prices.[45] Singapore-based analyst Shukor Yusof said the deal had the potential to rival American Southwest Airlines and make Air Asia the world's biggest low-cost airline.[45][46] The deal makes AirAsia Airbus' single biggest customer.[46]

[edit] Inflight services

AirAsia offers "Snack Attack," a buy on board programme offering food and drinks for purchase.[47] Air Asia is accredited by the KL Syariah Index, and in accordance with Shariah law it does not serve alcohol or pork. However, this applies only to the regional AirAsia group flights, and not to the AirAsia X flights, which do sell wine and beer on board.[48]

[edit] Frequent-flyer program

AirAsia is taking the first steps towards starting its own frequent-flyer programme. The airline has signed an agreement to start a joint venture with financial services firm Tune Money to launch a programme called "BIG". Under this programme it will issue loyalty points to AirAsia customers and third-party merchants. Points can then be used to redeem AirAsia flights.[49]

[edit] See also

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[edit] References

  1. ^ http://www.airasia.com/my/en/big/big-loyalty.page?
  2. ^ "AirAsia 2010 Annual Report". http://www.airasia.com/iwov-resources/my/common/pdf/AirAsia/IR/AirAsia_AR10.pdf. Retrieved 24 June 2011. 
  3. ^ Kurlantzick, Joshua (23 December 2007). "Does Low Cost Mean High Risk?". The New York Times. http://www.nytimes.com/2007/12/23/travel/23prac.html?ref=yourmoney. Retrieved 28 April 2010. 
  4. ^ "AirAsia Annual Report 2008[dead link]." AirAsia. 3 (5/137). Retrieved 6 October 2009.
  5. ^ Chan Tien Hin (1 December 2008). "AirAsia Has Record Drop on Loss, Analyst Downgrade". Bloomberg (New York). Retrieved 27 September 2009.
  6. ^ AirAsia plans to open regional headquarters in Jakarta. The Jakarta Post (15 June 2011). Retrieved 27 June 2011.
  7. ^ AirAsia to Stay in Kuala Lumpur
  8. ^ "The World's Top 10 airlines announced at the 2010 World Airline Awards". Skytrax. http://www.worldairlineawards.com/main/2010Awards.htm. Retrieved 5 June 2010. 
  9. ^ Mertens, Brian (20 December 2010). "Flying On A Budget Page 2 of 3". Forbes (New York). http://www.forbes.com/global/2010/1220/features-airasia-tony-fernandes-flying-on-budget_2.html. 
  10. ^ Leong Hung Yee (27 December 2006). "AirAsia embarks on 2nd chapter". The Star (Kuala Lumpur). http://biz.thestar.com.my/news/story.asp?file=/2006/12/27/business/16419327&sec=business. 
  11. ^ "AirAsia unleashes its X-factor". The Star (Kuala Lumpur). 27 September 2008. http://thestar.com.my/news/story.asp?file=/2008/9/27/bizweek/2131138&sec=bizweek. Retrieved 27 June 2011. 
  12. ^ "Major Overhaul of Malaysia's Airline Sector". Jakarta Globe. 10 August 2011. http://www.thejakartaglobe.com/seasia/major-overhaul-of-malaysias-airline-sector/458384. 
  13. ^ "Passengers' perceptions of low cost airlines and full service carriers". Cranfield University. 2005. http://dspace.lib.cranfield.ac.uk:8080/handle/1826/1453. 
  14. ^ "The First Airline In The World To Abolish Fuel Surcharges" (Press release). AirAsia. http://airasia.com/site/th/en/pressRelease.jsp?id=8ae10a4c-7f000010-f346dc00-6a9c7fed. Retrieved 27 June 2011. 
  15. ^ "AirAsia to introduce fuel surcharge on 3 May" (Press release). AirAsia. 3 May 2011. http://www.airasia.com/my/en/latestnews/fuelsurcharge.html. Retrieved 27 June 2011. 
  16. ^ "Protest held against AirAsia". The Star (Kuala Lumpur). 16 July 2007. http://thestar.com.my/news/story.asp?file=/2007/7/16/nation/18315133&sec=nation. 
  17. ^ "AirAsia, MAB told to ensure disabled are not deprived". Daily Express (Kota Kinabalu). 17 July 2007. http://www.dailyexpress.com.my/news.cfm?NewsID=51400. Retrieved 27 June 2011. 
  18. ^ "AirAsia aborts plan for JV airline in Vietnam". The Star (Kuala Lumpur). 21 October 2011. http://biz.thestar.com.my/news/story.asp?file=/2011/10/12/business/9678653&sec=business. 
  19. ^ AirAsia Philippines to launch in 3Q2011, subject to approvals. Centreforaviation.com (16 December 2010). Retrieved 27 June 2011.
  20. ^ Flint, Perry (17 December 2010). AirAsia to launch Philippines-based affiliate. Atwonline.com. Retrieved 27 June 2011.
  21. ^ Air Asia Philippines to fly in 5 Southeast Asian countries in Sept. Usnewslasvegas.com. Retrieved 27 June 2011.
  22. ^ Yap, Cecilia (7 December 2010). December 2010/airasia-to-form-philippine-venture-with-cojuangco-update1-.html "AirAsia to Form Philippine Venture With Cojuangco in First Quarter of 2011". Bloomberg (New York). Retrieved 27 June 2011.
  23. ^ Philippines’ AirAsia Incorporated picks Clark as hub. Peanuts.aero. Retrieved 27 June 2011.
  24. ^ "ANA and AirAsia to form AirAsia Japan" (Press release). All Nippon Airways. 21 July 2011. http://www.ana.co.jp/eng/aboutana/press/2011/110721.html. 
  25. ^ "AirAsia-ANA tie-up likely". The Star (Kuala Lumpur). 15 July 2011. http://biz.thestar.com.my/news/story.asp?file=/2011/7/15/business/9104967&sec=business. 
  26. ^ AirAsia is looking to buy about 175 of Airbus SAS's. Exploreonline.org (15 February 2011). Retrieved 27 June 2011.
  27. ^ How to get the cheapest airfare using Air Asia. Au.whichairline.com. Retrieved 27 June 2011.
  28. ^ AirAsia brings ASEAN closer with Philippine partnership. Airtransportnews.aero (16 December 2010). Retrieved 27 June 2011.
  29. ^ AirAsia X unveils low-cost flatbed seats. Airasiafansclub.blogspot.com (22 August 2010). Retrieved 27 June 2011.
  30. ^ Make My Trip, AirAsia. Makemytrip.com. Retrieved 27 June 2011.
  31. ^ AirAsia does not need aerobridges as it may increase passenger fare, says CEO. Asianewsnet.net (20 December 2010). Retrieved 27 June 2011.
  32. ^ Tune Air Group. Tunegroup.com. Retrieved 27 June 2011.
  33. ^ AirAsia orders 200 A320neo aircraft 23 June 2011.
  34. ^ AirAsia delays delivery of 8 more planes. Biz.thestar.com.my (5 October 2009). Retrieved 27 June 2011.
  35. ^ a b AirAsia defers Airbus A320 delivery. Nst.com.my. Retrieved 27 June 2011.
  36. ^ "AirAsia increases A320 commitment to 100 aircraft" (Press release). Airbus. 25 March 2005. http://www.airbus.com/en/presscentre/pressreleases/pressreleases_items/25_Mar_05_AirAsia.html. 
  37. ^ "AirAsia initiates total fleet renewal with Airbus A320" (Press release). Airbus. 9 December 2005. http://www.airbus.com/en/presscentre/pressreleases/pressreleases_items/12_9_05_A320_AirAsia.html. 
  38. ^ "AirAsia orders 40 more A320 Family aircraft" (Press release). Airbus. 19 July 2006. http://www.airbus.com/en/presscentre/pressreleases/pressreleases_items/07_19_06_airasia.html. 
  39. ^ "100 more A320s for AirAsia" (Press release). Airbus. 18 January 2007. http://www.airbus.com/en/presscentre/pressreleases/pressreleases_items/07_01_08_AirAsia.html. 
  40. ^ Malaysia's AirAsia increases A320 order to 175 planes. Afp.google.com (25 November 2007). Retrieved 27 June 2011.
  41. ^ "AirAsia orders additional 25 Airbus A320s" Flight Global, 6 December 2007
  42. ^ AFP: AirAsia defers delivery of eight Airbus A320s. Google.com (6 August 2009). Retrieved 27 June 2011.
  43. ^ [1][dead link]
  44. ^ a b "Airbus and AirAsia announce record deal for 200 planes". BBC News. 23 June 2011. http://www.bbc.co.uk/news/business-13884433. Retrieved 23 June 2011. 
  45. ^ a b c Odell, Mark; Boxell, James (23 June 2011). "Airbus secures 200 jet order from AirAsia". Financial Times (London). http://www.ft.com/cms/s/0/e83d5dc2-9d9e-11e0-9a70-00144feabdc0.html#axzz1Q82RdNXV. 
  46. ^ a b "AirAsia's Fernandes bets big on boyhood idea". 23 June 2011. http://www.reuters.com/article/2011/06/23/uk-airshow-airasia-fernandes-idUSLNE75M05X20110623. Retrieved 23 June 2011. 
  47. ^ "Snack Attack[dead link]." AirAsia. Retrieved 24 November 2008.
  48. ^ AirAsia X Snack Attack[dead link]. airasia.com. Retrieved 23 February 2009.
  49. ^ AirAsia to launch frequent-flyer program Flightglobal.com. Retrieved 21 September 2011.

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