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'''AirAsia''' is a [[Low-cost carrier|low-cost airline]] based in [[Kuala Lumpur]], [[Malaysia]]. It operates scheduled domestic and international flights and is [[Asia]]'s leading low fare, no frills airline. It is also the first airline in the region to implement fully ticketless travel and unassigned seats. AirAsia has been expanding rapidly and is very popular among the travelling public thanks to its frequent low fare deals. Its main base is the Low Cost Carrier Terminal (LCCT) at [[Kuala Lumpur International Airport]] (KUL). Its affliate airlines [[Thai AirAsia]] and [[Indonesia AirAsia]] flies from [[Suvarnabhumi Airport]], [[Thailand]] and [[Soekarno-Hatta International Airport]], [[Indonesia]] respectively.
'''AirAsia''' is a [[Low-cost carrier|low-cost airline]] based in [[Kuala Lumpur]], [[Malaysia]]. It operates scheduled domestic and international flights and is [[Asia]]'s leading low fare, no frills airline. It is also the first airline in the region to implement fully ticketless travel and unassigned seats. AirAsia has been expanding rapidly and is very popular among the travelling public thanks to its frequent low fare deals. Its main base is the Low Cost Carrier Terminal (LCCT) at [[Kuala Lumpur International Airport]] (KUL). Its affliate airlines [[Thai AirAsia]] and [[Indonesia AirAsia]] flies from [[Suvarnabhumi Airport]], [[Thailand]] and [[Soekarno-Hatta International Airport]], [[Indonesia]] respectively.

'''Air Asia is most certainly not without it's critics.''' Several websites and forums have emerged that indicate a gathering disapproval of Air Asia's slick marketing practices, waivering punctuality, customer support and dispute resolution policies. One site lampoons the 'no-frills' airline for anything from a recent runway departure and several chauvinistic slip ups, to highlighting the carrier's lack of transparent disclosure of ancillary costs - instead of controversially claiming seats are 'free' or advertising them at an unconscionably low cost of, say, 1THB [approx US$0.38c].

'Fly Air Asia? Not Me!' was launched by an advertising strategic director who was so exasperated by Air Asia's lack of professionalism in regard to his own case against the carrier - regards to being denied seats he had booked that were lost due to a problen the airline later acknowledged responsability for - that he 'was driven to blog'. The website which first launched in October 2007 uses viral marketing and word-of-mouth to spread its message. It also offers an 'open source' facility for other aggrieved parties to submit their own accounts of disputes with air Asia. the site offers Air Asia flights as prizes, based on other aggreived members' votes.

Air Annus - [http://airasiaannus.blogspot.com] - is a message to disgruntled passengers of Air Asia to unite. As it says in its opening sortee, '... there's no class in cattle class, but good economies in class actions'! The originating author made several requests inviting Air Asia to respond to the Blog's content - linked to news stories and empirical evidence - yet he has received no response.


== History ==
== History ==

Revision as of 22:00, 15 October 2007

AirAsia
File:AirAsia logo.png
IATA ICAO Call sign
AK AXM ASIAN EXPRESS
Founded1993
HubsKuala Lumpur International Airport
Secondary hubsKota Kinabalu International Airport
Kuching International Airport
Senai International Airport
Fleet size51(124 on order)
Destinations35
Parent companyAirAsia Berhad
HeadquartersKuala Lumpur
Key peopleTony Fernandes (CEO)
Websitehttp://www.airasia.com

AirAsia is a low-cost airline based in Kuala Lumpur, Malaysia. It operates scheduled domestic and international flights and is Asia's leading low fare, no frills airline. It is also the first airline in the region to implement fully ticketless travel and unassigned seats. AirAsia has been expanding rapidly and is very popular among the travelling public thanks to its frequent low fare deals. Its main base is the Low Cost Carrier Terminal (LCCT) at Kuala Lumpur International Airport (KUL). Its affliate airlines Thai AirAsia and Indonesia AirAsia flies from Suvarnabhumi Airport, Thailand and Soekarno-Hatta International Airport, Indonesia respectively.

Air Asia is most certainly not without it's critics. Several websites and forums have emerged that indicate a gathering disapproval of Air Asia's slick marketing practices, waivering punctuality, customer support and dispute resolution policies. One site lampoons the 'no-frills' airline for anything from a recent runway departure and several chauvinistic slip ups, to highlighting the carrier's lack of transparent disclosure of ancillary costs - instead of controversially claiming seats are 'free' or advertising them at an unconscionably low cost of, say, 1THB [approx US$0.38c].

'Fly Air Asia? Not Me!' was launched by an advertising strategic director who was so exasperated by Air Asia's lack of professionalism in regard to his own case against the carrier - regards to being denied seats he had booked that were lost due to a problen the airline later acknowledged responsability for - that he 'was driven to blog'. The website which first launched in October 2007 uses viral marketing and word-of-mouth to spread its message. It also offers an 'open source' facility for other aggrieved parties to submit their own accounts of disputes with air Asia. the site offers Air Asia flights as prizes, based on other aggreived members' votes.

Air Annus - [3] - is a message to disgruntled passengers of Air Asia to unite. As it says in its opening sortee, '... there's no class in cattle class, but good economies in class actions'! The originating author made several requests inviting Air Asia to respond to the Blog's content - linked to news stories and empirical evidence - yet he has received no response.

History

An AirAsia Airbus A320 aircraft.

The airline was established in 1993 and started operations on 18 November 1996. It was originally founded by a government-owned conglomerate DRB-Hicom. On December 2 2001 the heavily indebted airline was purchased by former Time Warner executive Tony Fernandes's company Tune Air Sdn Bhd for the token sum of one ringgit. Fernandes 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 RM1 (US $0.27).

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

A new budget terminal, the first of its kind in Asia was opened in Kuala Lumpur International Airport on 23 March 2006. Built at a cost of RM108 million (US $29.2 million) and spanning some 35,000 square metres (116,000 square feet), the Low Cost Carrier Terminal (LCCT) is the new home for AirAsia Bhd. LCCT will initially handle 10 million passengers a year. AirAsia Group is expected to carry 18 million passengers in 2007.

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.[1]

AirAsia is currently the main customer of the Airbus A320. The company has placed an order of 150 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 arrived on 8 December 2005.

On 27 March 2006, the Government of Malaysia announced that AirAsia will take over 96 non-trunk routes, in addition to 19 domestic trunk routes. This was part of Malaysia Airlines route rationalization programme which saw a large number of its domestic sectors being transferred to AirAsia from 1 August 2006.

On December 27, 2006, AirAsia's Ceo Tony Fernandes unveiled a five-year plan to enhance further its presence in Asia.[2] In the plan, AirAsia will strengthen and enhance its route network by connecting all the existing cities in the region and expanding further into Indochina, 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. Hence, with increase frequency and addition of new routes, AirAsia expects passenger volume to hit 18 million by end-2007.

On September 2007, AirAsia's Kuala Lumpur hub is fully operated with A320s while Thai AirAsia receives its first Airbus A320 in October 2007. Indonesia AirAsia will receive its first Airbus by January 2008.

On April 5, 2007, AirAsia announced a three-year partnership with the British Formula One team AT&T Williams. The airline brand is displayed on the helmets of Nico Rosberg and Alexander Wurz, and on the bargeboards and nose of the cars. [3]

In August 2007, Sir Richard Branson announced to take 20 percent stake in AirAsia X. [4]

Value added services

AirAsia has progressively launched value added services into the flight options. On April 24, 2007, AirAsia introduced the web check-ins. This made AirAsia the first airline in Malaysia to offer the ability to check-in online and print out boarding passes. It is now available for Malaysian domestic travel only and for those with no check-in baggage. [5]

On May 15, 2007, a service named "Xpress Boarding" has been launched to enable passengers to get priority boarding with nominal fees. This enable the passengers to cut hassle and choose seats at ease. This product is available in all hubs including Thai AirAsia and Indonesia AirAsia. [6]

On the pipeline, after launching web-check ins and kiosk check ins, AirAsia will later introduce PDA check-ins.

On AirAsia X flights, passengers are given a choice of purchasing extra baggage spaces, meals, comfort kit, and seat number, all with nominal fees.

Subsidiaries

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.

Indonesia AirAsia

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 in Soekarno-Hatta International Airport.

Vina AirAsia

Vina AirAsia is the product of the joint venture company, in which AirAsia Bhd holds a 30% stake (the maximum holding allowable for a single foreign entity) and remaining 70% to Vietnam Shipbuilding Industry Group (Vinashin). This will see both parties securing a licence to establish a low-cost airline by July 2008 in Hanoi, Vietnam. [7]

Associate companies

AirAsia X

AirAsia X is a service operated by AirAsia X Sdn. Bhd. (previously known as FlyAsianXpress Sdn. Bhd.) as a franchise of AirAsia.[8] It will start offering long-haul services from Kuala Lumpur to Australia and China using Airbus A330 and with fares starting from AU$31 (excluding tax and airport charges).[9] It is expected to begin operations in the end of October 2007.

FlyAsianXpress was an airline subcontracted by AirAsia for the operations of Rural Air Service within Sabah and Sarawak previously operated by Malaysia Airlines to a new airline, FlyAsianXpress (FAX). Established on 1 August 2006, the airline is a privately owned by the management team of AirAsia. With the formation of MASwings by Malaysia Airlines, FAX ceased all it's rural air services on October 1, 2007 and will concentrate on long haul routes by AirAsia X.

Tune Hotels

The first AirAsia "no-frills" hotel, Tune Hotels is ready for occupancy in Kuala Lumpur, and later in Penang, Kota Kinabalu, Johor Bahru, and Kuching. [10]

Tune Money

Tune Money is Asia's first "no-frills" online financial service owned by Tune Air Sdn. Bhd. Modelled after Virgin Money, it comprises of life, home and motor vehicle insurance as well as prepaid cards.

Unknown future

The future of these companies have been put on hold and not known of when it will start operating.

Bangladesh AirAsia
AirAsia has signed a memorandum of understanding with East West Airlines, a sister concern of Bangladesh’s Orion group, to run the first-ever airlines joint venture and budget airlines in Bangladesh.[11]

AirAsia Lanka / Air South Asia
Air South Asia, formerly HolidayAir, is an upcoming LCC based in Sri Lanka. The airline is presently 100% owned by Sri Lankan interests, but it plans to use AirAsia's expertise, booking engine and pilot training facilities, with an option for AirAsia to acquire a stake at a later stage.[12]

Destinations

AirAsia operates about 200 flights a day, to 48 destinations in 10 countries.

AirAsia is introducing six more routes in 2007 [13]. This includes:

  • Ho Chi Minh City
  • Vientiane (Confirmed on November 2007)
  • Myanmar
  • Shenzhen (Via Kuala Lumpur, Bangkok and Kota Kinabalu)
  • Xiamen (Via Bangkok)
  • Banda Aceh (Via Kuala Lumpur, commenced November 2007)
  • Hong Kong (Via Kuala Lumpur, Johor and Kota Kinabalu, commenced December 2007 or January 2008)

The CEO is also not ruling out Kuching-Perth service in the future following Malaysia Airlines withdrawal from the route[14]

AirAsia is setting up another hub at Penang International Airport, Penang, Malaysia by the end of 2007 or early 2008.

Meanwhile, Thai AirAsia has added Shenzhen and later to Kunming in China, Jakarta and Bali in Indonesia in 2007, all from its hub, Bangkok.[15].

For Indonesia AirAsia, Jakarta-Kuching will be introduced and Jakarta-Johor Bharu will be commencing on 28 September 2007.[16]

Air Asia X is planning to fly to Australia from its Kuala Lumpur base covering Avalon, in Victoria, Adelaide, the Gold Coast and Newcastle. The airliner also has plans to fly to India, China, UK and the Middle East. [17]

Ground arrangements

AirAsia offers convenient ground and ferry transfer from the following destination in partnership with local operators.

Fleet

AirAsia's Boeing 737 at KLIA contact terminal
As of August 2007, the total AirAsia fleet (including Thai AirAsia, AirAsia X and Indonesia AirAsia) includes:[18]
Aircraft # Seats Notes
Airbus A320-200 26 (124 on Order) 180
Boeing 737-300 36 148
Airbus A330-200 1 (15 On Order) 320


As of August 2007, the Malaysia's AirAsia fleet includes:[19]
Aircraft # Seats Notes
Airbus A320-200 26 180
Boeing 737-300 13 148

AirAsia has ordered 150 Airbus A320 with the option of 50 more,[20] the first of which arrived in December 2005. The new A320 enables AirAsia to further add capacity to existing popular routes and introduce new routes.

The first 60 A320 schedule to be delivered from Dec 2005 - June 2009. The remainder 90 A320 will be delivered from March 2009 to Dec 2013. AirAsia's Kuala Lumpur hub is now fully operated with the Airbus A320-200 aircraft.

Incidents and accidents

  • AirAsia, nor any of its affiliates have never had a fatal incident, involving their aircraft. On July 7, 2004, AirAsia Flight 104 skidded lightly off the runway in heavy rain after it touched down at Kota Kinabalu International Airport. Two passengers suffered minor injuries.[21]

See also

References

  1. ^ "Passengers' perceptions of low cost airlines and full service carriers" (PDF).
  2. ^ Leong Hung Yee (27 December 2006). "AirAsia embarks on 2nd chapter". The Star.
  3. ^ [1]
  4. ^ "Branson to buy stake in Malaysias AirAsia".
  5. ^ AirAsia web check-in information
  6. ^ AirAsia introduces Xpress boarding
  7. ^ Laalitha Hunt. "AirAsia confident of Vietnam market". The Star.
  8. ^ "X-citing deal for air travellers". The Star. 2007-01-06. {{cite news}}: Check date values in: |date= (help)
  9. ^ "AirAsia X London flights from RM9.99". The Star. January 5, 2007.
  10. ^ [2]
  11. ^ Nazrul Islam. "Air Asia eyes Bangladesh skies". New Age.
  12. ^ Munza Mushtaq (2 September 2006). "Sri Lanka's first ever budget airline ties up with Asia's best". Asian Tribune.
  13. ^ Chan Chin Thut (March 7, 2007). "AirAsia plans more new routes". The Star.
  14. ^ "Kuching-Perth flights in the pipeline". The Star.
  15. ^ "Thai AirAsia expects to fly 4.2m passengers this year". Business Times. March 14, 2007.
  16. ^ Chan Chin Thut (March 7, 2007). "AirAsia plans more new routes". The Star.
  17. ^ "Budget airline Air Asia to reveal its destinations in India and Australia".
  18. ^ Flight International, 3-9 October 2006
  19. ^ Flight International, 3-9 October 2006
  20. ^ "AirAsia orders 40 more A320 Family aircraft". Airbus.com.
  21. ^ "7 Nov 2004 - AirAsia 737-300 over-runs runway in heavy rain". 737 Technical site.