AirAsia

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For the Taiwanese aircraft service company, see Air Asia (Republic of China).
AirAsia

IATA ICAO Callsign

AK AXM ASIAN EXPRESS
Founded 1993
Hubs Kuala Lumpur International Airport
• Kota Kinabalu International
Airport
Secondary hubs • Senai International Airport

• Penang International Airport

• AirAsia RedTix
• Indonesia AirAsia
Subsidiaries • Thai AirAsia

• VietJet AirAsia
Fleet size 97 (+125 orders)
Destinations 65
Company slogan Now Everyone Can Fly
Parent company Tune Group
Registered office: Petaling Jaya, Selangor
Headquarters
Head office: Sepang, Selangor
• Tony Fernandes (CEO)
Key people
• Azran Osman Rani
 Revenue ▲ RM 2.635 billion (2008)
Operating income ▼ RM -416 million (2008)
Net income ▼ RM -497 million (2008)
Total assets ▲ RM 9.521 billion (2008)
Total equity ▼ RM 1.606 billion (2008)
Website www.airasia.com

AirAsia Berhad dba AirAsia (Chinese: 亞洲航空, MYX: 5099) is a Malaysian low-cost
airline. It operates scheduled domestic and international flights and is Asia's largest low-
fare, no-frills airline. AirAsia is a pioneer of low-cost flights in Asia,[1] and was also the
first airline in the region to implement fully ticketless travel. Its main base is the Low-
Cost Carrier Terminal (LCCT) at Kuala Lumpur International Airport (KLIA). Its
affiliate airlines Thai AirAsia and Indonesia AirAsia have hubs at Suvarnabhumi Airport,
Thailand and Soekarno-Hatta International Airport, Indonesia, respectively. AirAsia's
registered office is in Petaling Jaya, Selangor while its head office is on the grounds of
Kuala Lumpur International Airport in Sepang, Selangor.[2][3]

In 2010 AirAsia won an award for the world's best low-cost airline.[4]

Contents
[hide]

• 1 History
o 1.1 Establishment
o 1.2 Second hub
o 1.3 Budget terminal
o 1.4 Low-cost model
o 1.5 Airbus A320 fleet
o 1.6 Asian expansion
o 1.7 F1 partnership
o 1.8 Route expansion
o 1.9 Fuel surcharge discontinued
• 2 The airline and disabled passengers
• 3 Fees
• 4 Subsidiaries
o 4.1 Thai AirAsia
o 4.2 Indonesia AirAsia
o 4.3 VietJet AirAsia
o 4.4 AirAsia RedTix
• 5 Associate companies
o 5.1 AirAsia X
o 5.2 Tune Hotels
 o 5.3 Tune Money
• 6 Destinations
• 7 Fleet
o 7.1 Future A320 deliveries[26]
o 7.2 Fleet renewal
• 8 Inflight services
• 9 Incidents and accidents
• 10 See also
• 11 References

• 12 External links

[edit] History

An AirAsia Airbus A320 aircraft

An AirAsia Boeing 737-300 parked at a gate at Kuala Lumpur International Airport,

Malaysia. (2005)
An AirAsia Boeing 737-300 parked at a gate at Kuala Lumpur International Airport,
Malaysia. (2004)

[edit] Establishment

AirAsia was established in 1993 and commenced 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 purchased by former Time Warner
executive Tony Fernandes's company Tune Air Sdn Bhd for the token sum of one
ringgit. This was after great deliberation as the initial offer was fifty sen. 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).

[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 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.

[edit] Budget terminal

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. Initially, the LCCT handled
10 million passengers a year. AirAsia Group is expected to carry 18 million passengers in
2007. However, all airport taxes charged and collected by the airline have yet to be paid
to the terminal owner, due to unknown reasons.

[edit] Low-cost model

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.[5]

[edit] Airbus A320 fleet

AirAsia is currently the largest single customer of the Airbus A320.[6] The company has
placed an order of 175 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 August 2006, AirAsia took over Malaysia Airlines' Rural Air Service routes in Sabah
and Sarawak, operating under the FlyAsianXpress brand. The routes were transferred
back to new Malaysia Airlines subsidiary in East Malaysia, MASwings from August
2007 since they were pulling down profits.

[edit] Asian expansion

On 27 December 2006, AirAsia's CEO Tony Fernandes unveiled a five-year plan to

further enhance its presence in Asia.[7] 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.

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

[edit] F1 partnership

On 5 April 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.[8]

[edit] Route expansion

On 27 September 2008, has on its list 106 new routes to be added to its current list of 60
over the next few years. The number of old routes discontinued has not been publicly
disclosed.[9]

[edit] Fuel surcharge discontinued

On 12 November 2008, AirAsia abolished fuel surcharges. In doing so, it claimed to be

the 'first airline in the world to abolish fuel surcharges'.[10]

By May 2008, the airline had flown 55 million cumulative passengers.[11]

In 2010, it has the world's lowest costs for an airline, at under 2 cents per seat per
kilometre.[12]
[edit] The airline and disabled passengers

Air Asia 737 with illustrations by Lat (Mohammad Nor Khalid)

Disabled passengers from BEAT 'The Barrier-Free Environment and Accessible

Transport Group' protested against the airline for its refusal to fly passengers who were
completely immobile.[13] The protesters, headed by the group's co-ordinator Christine Lee,
asserted that the disabled were discriminated against when booking AirAsia tickets
online, where an icon would appear on the website asking if the ticket purchaser would
require “special assistance”. According to Lee, the passenger clicked 'yes', then they
would not be able to proceed with the booking. Lee also said that AirAsia charged RM12
for renting out a wheelchair, which a passenger could use to go from the ticketing counter
to the departure hall. When interviewed by Malaysia's Daily Express, AirAsia Chief
Executive Officer Datuk Tony Fernandes denied that the low cost airline turned away
wheelchair using passengers.

He said, the airline's ground staff take the disabled to the aircraft and physically carry
them onboard, "We do not even charge for this service and there is certainly no
discrimination against them," he claimed.[14] AirAsia's 'Service Fees' post a charge of
RM12 Malaysian Ringgit [15] for wheelchair service fees. Several consumerist groups
have rallied behind the disabled and wheelchair-using travellers, lobbying to bring about
changes in Malaysia's anti-discrimination legislation; among them the 'Fly Air Asia? Not
Me' website [16] utilizes viral advertising to pressure legislators. In 2007 the activist group
used AirAsia's sponsorship of the Williams Formula One Team and the fact that team
owner Sir Frank Williams uses a wheelchair [17][18] to garner public attention and apply
pressure upon legislators and the carrier. It is unclear whether such groups have had any
measure of success. AirAsia has provided two ambulifts, however, one in its LCC
Terminal hub at Kuala Lumpur and another in its Kota Kinabalu hub. A year after the
BEAT protest these remain the two hubs that are equipped - while the airline's December
2007 Annual Report [19] affirms that AirAsia flies over 100 routes across 11 countries in
Asia and states, 'AirAsia has a firm commitment with a purchase order for 225 Airbus
A320 aircraft.' It does not stipulate whether it has any plans to expand access for disabled
passengers beyond the two domestic ambulifts.

Rights-based advocate for an inclusive and accessible Malaysia and former assistant
coordinator of BEAT, Peter Tan writes from The Digital Awakening, 'Despite assurances
by AirAsia CEO Datuk Tony Fernandes on 20 July and again on 4 August this year
[2007] that disabled passengers will be treated with dignity, the airlines is still subjecting
disabled passengers to discriminatory policies.' [20] after he was required to sign an
indemnity releasing AirAsia from all liabilities before being allowed to board the aircraft
at Kota Kinabalu International Airport's Terminal 2, agreeing to surrender rights to hold
AirAsia liable for damages, injuries or other claims.

[edit] Fees
The airline claims 'No Admin Fee', but has introduced a number of fees for services that
are free on many airlines. Its fees and charges are: seating fee (charged for pre-selecting
seats, higher for 'hot seats' near the front or exits, with priority boarding), 'convenience
fee' (a per passenger, per flight charge imposed for all means of payment other than direct
debit (only available for customers of certain Malaysian banks)), marked-up airport tax
charges, a charge for in-flight entertainment including use of seat-back video, a checked
luggage fee (charged by weight, not by piece, with excess baggage charges payable for
carrying baggage exceeding 15 kg, if not pre-booked), charges for food, for use of a
wheelchair and for amenity kit (pillow, blanket and eyeshade).

[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 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 iat
Soekarno-Hatta International Airport with a secondary hub at Denpasar (Bali) Airport.

[edit] VietJet AirAsia

Main article: VietJet AirAsia

On February 2010, AirAsia announced that it has purchased a 30% stake in VietJet and
changed the name to VietJet AirAsia. VietJet AirAsia is based in Hanoi, and plans to fly
to Ho Chi Minh City and Da Nang.

[edit] AirAsia RedTix

Main article: AirAsia RedTix

On March 20, 2010, AirAsia launched their new event ticketing system called AirAsia
RedTix, focusing on non-airline flight tickets such as events, sports, and music. Their
first event was Zee Avi's KL homecoming tour.

[edit] Associate companies

[edit] AirAsia X

Main article: AirAsia X

AirAsia X is a service operated by AirAsia X Sdn. Bhd. (previously known as

FlyAsianXpress Sdn. Bhd.) as a franchise of AirAsia.[21] It offers long-haul services from
Kuala Lumpur to Australia and China using an Airbus A330-300.[22] Its inaugural flight
was on 2 November 2007 to Gold Coast, Australia.

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 1 October 2007 and will
concentrate on long haul routes by AirAsia X.

In August 2007, Sir Richard Branson announced his intention to take a 20 percent stake
in AirAsia X. The current CEO of AirAsia X is Azran Osman Rani.

After making its mark in Britain with the sponsorship made to the Referees (FA
England), AirAsia X concluded a sponsorship deal with Oakland Raiders American
Football team on 15 September 2009.

[edit] Tune Hotels

Main article: Tune Hotels

Tune Hotels.com is a limited service hotel chain founded by AirAsia CEO Dato' Tony
Fernandes, Currently Tune Hotels.com has hotels in operation in Kuala Lumpur, Kota
Kinabalu, Kuching, Penang, the Low Cost Carrier Terminal in Sepang and Bali.
[edit] Tune Money

Main article: Tune Money

Tune Money is Asia's first "no-frills" online financial services portal. Modelled after
Virgin Money, it comprises life, home and motor vehicle insurance as well as prepaid
credit cards.

[edit] Destinations
Main article: AirAsia Group destinations

2007 AirAsia domestic route map

AirAsia operates over daily 400 flights,[citation needed] with both domestic and international
routes covering Indonesia, Malaysia and Thailand and with international routes, primarily
from Kuala Lumpur, to Australia, Bangladesh, Brunei, Cambodia, the People's Republic
of China, India, Laos, Myanmar, Philippines, Singapore, Sri Lanka, Taiwan, the United
Kingdom, South Korea and Vietnam.

[edit] Fleet

AirAsia Airbus A320 departing Kuala Lumpur International Airport

AirAsia plane sporting the "Airline of the Year" livery, taxying to its gate in Kuching.
Taken with a Fujifilm FinePix S5600 through the terminal window

The total AirAsia fleet (including Thai AirAsia, AirAsia X and Indonesia AirAsia)
consists of the following aircraft as of 14 July 2010

AirAsia fleet (including Thai AirAsia, AirAsia X and Indonesia AirAsia)[23]

In fleet Passengers
Aircraft Orders Options Notes
(Premium/Economy)

52 with
AirAsia, 11
with
Airbus
78 98 50 180 (0/180) Indonesia
A320-200
AirAsia, 15
with Thai
AirAsia
4 with
Indonesia
AirAsia, 6
with Thai
Boeing 737-
10 0 0 148 (0/148) AirAsia
300
To be
removed
from fleet
by 2010[24]
Operated by
AirAsia X
Airbus
7 19 0 377 (12/365) 1 leased
A330-300
from
AWAS
Operated by
AirAsia X
Airbus
2 0 0 327 (18/309) Leased from
A340-300
Orix
Aviation
Operated by
AirAsia X.
Airbus
0 10 5 > 400 (-/-) Entry in
A350-900
service
2016[25]
Total 97 127 55
The total AirAsia fleet (excluding Thai AirAsia, AirAsia X and Indonesia AirAsia)
consists of the following aircraft as of 14 July 2010:

AirAsia fleet (excluding Thai AirAsia, AirAsia X and Indonesia AirAsia)

Passengers
Aircraft In fleet Registration Notes
(XL/Economy)

Airbus A320-214 6 180 (0/180) 9M-AFA - 9M-AFF

9M-AFG - 9M-AFZ
Airbus A320-216 46 180 (0/180) 9M-AHA - 9M-
AHZ
Total 52

[edit] Future A320 deliveries[26]

2010 - 15
2011 - 8[27]
2012 - 24
2013 - 24
2014 - 24
2015 - 9[27]
By end of 2009, AirAsia will have 70 aircraft and by end of 2015 with a total of 175
aircraft.

[edit] Fleet renewal

AirAsia began a gradual conversion of its fleet from the Boeing 737-300 to the Airbus
A320-200, with the first order made for 40 Airbus A320 aircraft and 40 more on option
in a Memorandum of Understanding made in 17 December 2004. When the contract was
signed on 25 March 2005, the order was increased to 60 firm orders with 40 on option.[28]
The first six Airbus A320s were delivered on 9 December 2005, with the remaining 54
aircraft from the 2005 order to be delivered by June 2009.[29]

On 19 July 2006, the airline exercised the options of 40 Airbus A320-200s to increase its
total firm orders to 100 aircraft, with another 30 on option.[30] It made a third order of 50
firm A320-200s and increased the options to 50 on 8 January 2007, with delivery
expected to be completed 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.[31]
The airline made its latest order of 25 firm orders on 25 November 2007, bringing its
total orders of Airbus aircraft to 175 with 50 on option.[32]
[33]
In August 2009, AirAsia had 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 on the delivery of aircraft
in 2010 and possibly 2011 is to enable AirAsia to optimize its fleet and avoid the costs
associated with leaving idle or under- utilized aircraft due to infrastructural limitations,
avoiding having to incur depreciation, interest expense and other costs without earning
revenue. The infrastructural constraints will continue at the current airport until the new
low-cost carrier terminal is constructed. Earlier In February 2009 the Malaysia's
government vetoed an ambitious plan by AirAsia to build a 460-million-dollar airport
nearby as KLIA East @ Labu.[34][35]

[edit] Inflight services

AirAsia offers "Snack Attack," a buy on board programme offering food and drinks for
purchase.[36] Air Asia is accredited by the KL Syariah Index, and as per Shariah law it
does not serve alcohol and pork. However, this is only applicable on the regional AirAsia
group flights, and not applicable to the AirAsia X flight as it does sell wine and beers on
board.[37] AirAsia also offers advance bookings of Skybus tickets, which are for a bus
service to Kuala Lumpur from LCCT.

All meals purchased, as well as Sky bus tickets, are not refunded if you cancel your
flight. Passengers are not notified of this during the purchase of the products.

In addition it does not distribute materials that it considers to be pornographic.[38]

[edit] Incidents and accidents

• On 7 November 2004, AirAsia Flight 104 skidded off the runway in heavy rain
after it touched down at Kota Kinabalu International Airport. Two passengers
suffered minor injuries.[39]

[edit] See also

Malaysia portal
Companies portal

Aviation portal

• Tune Ventures
• AirAsia Group destinations
[edit] References
1. ^ "Does Low Cost Mean High Risk?". The New York Times. 23 December 2007.
http://www.nytimes.com/2007/12/23/travel/23prac.html?ref=yourmoney.
Retrieved 28 April 2010.
2. ^ "AirAsia Annual Report 2008." AirAsia. 3 (5/137). Retrieved on 6 October
2009.
3. ^ Chan Tien Hin. "AirAsia Has Record Drop on Loss, Analyst Downgrade."
Bloomberg. 1 December 2008. Retrieved on 27 September 2009.
4. ^ "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.
5. ^ "Passengers’ perceptions of low cost airlines and full service carriers" (PDF).
http://dspace.lib.cranfield.ac.uk:8080/bitstream/1826/1453/1/Passengers+percepti
ons-low+cost-full+service-pdf.pdf.
6. ^ http://www.tiags.com.vn:8080/?
idx=newsdetail&mod=news&act=detail&id=92&type=2
7. ^ Leong Hung Yee (27 December 2006). "AirAsia embarks on 2nd chapter". The
Star. http://biz.thestar.com.my/news/story.asp?
file=/2006/12/27/business/16419327&sec=business.
8. ^ AirAsia sponsors the Formula One team Williams
9. ^ AirAsia unleashes its X-factor
10. ^ AIRASIA, THE FIRST AIRLINE IN THE WORLD TO ABOLISH FUEL
SURCHARGES
11. ^ Sunday Observer: Air Asia flies to Sri Lanka from August
12. ^ Ron Gluckman. "Air Asia takes millions to the sky".
http://www.gluckman.com/AirAsia.htm. Retrieved 14 May 2010.
13. ^ The Star, 16 July 2007
14. ^ AirAsia, MAB told to ensure disabled are not deprived; Daily Express, 17 July
'07
15. ^ AirAsia Fee Schedule - wheelchair service charge
16. ^ The Unofficial AirAsia Website - 'Fly Air Asia? Not Me'
17. ^ Air Asia/Williams Sponsorship
18. ^ Guerilla public-service campaign featuring Williams F1 wheelchair-using boss,
Sir Frank Williams
19. ^ AirAsia Annual Report December '07 - PDF
20. ^ Disabled Activist Peter Tan's Indemnity Incident
21. ^ "X-citing deal for air travellers". The Star. 2007-01-06.
http://thestar.com.my/news/story.asp?
file=/2007/1/6/nation/16493788&sec=nation.
22. ^ "AirAsia X London flights from RM9.99". The Star. 2007-01-05.
http://www.thestar.com.my/news/story.asp?
file=/2007/1/5/nation/20070105113409&sec=nation.
23. ^ "Orders, Deliveries and Operational - Asia Pacific". January 2010.
http://www.airbus.com/fileadmin/backstage/documents/od/January_2010.xls.
Retrieved 9 February 2010.
 24. ^ http://biz.thestar.com.my/news/story.asp?
file=/2009/7/9/business/4284964&sec=business
25. ^
http://www.airbus.com/en/presscentre/pressreleases/pressreleases_items/09_06_1
6_a350xwb_airasiax.html
26. ^ http://biz.thestar.com.my/news/story.asp?
file=/2009/10/5/business/4836811&sec=business
27. ^ a b
http://www.nst.com.my/nst/articles/AirAsiadefersAirbusA320deliveryto2015/Arti
cle/
28. ^ "AirAsia increases A320 commitment to 100 aircraft". Airbus.com.
http://www.airbus.com/en/presscentre/pressreleases/pressreleases_items/25_Mar_
05_AirAsia.html.
29. ^ "AirAsia initiates total fleet renewal with Airbus A320". Airbus.com.
http://www.airbus.com/en/presscentre/pressreleases/pressreleases_items/12_9_05
_A320_AirAsia.html.
30. ^ "AirAsia orders 40 more A320 Family aircraft". Airbus.com.
http://www.airbus.com/en/presscentre/pressreleases/pressreleases_items/07_19_0
6_airasia.html.
31. ^ "100 more A320s for AirAsia". Airbus.com.
http://www.airbus.com/en/presscentre/pressreleases/pressreleases_items/07_01_0
8_AirAsia.html.
32. ^ Malaysia's AirAsia increases A320 order to 175 planes
33. ^ "AirAsia orders additional 25 Airbus A320s" Flight Global, 6 December 2007
34. ^
http://www.google.com/hostednews/afp/article/ALeqM5gYNn0DDMcCTeFBjy6
GQNarAVckbA
35. ^
http://www.btimes.com.my/Current_News/BTIMES/articles/20090806213558/Ar
ticle/index_html
36. ^ "Snack Attack." AirAsia. Retrieved on 24 November 2008.
37. ^ [1] ." AirAsia X Snack Attack. Retrieved on 23 February 2009.
38. ^ "FAQs." AirAsia. Retrieved on 23 February 2009.
39. ^ "7 Nov 2004 - AirAsia 737-300 over-runs runway in heavy rain". 737
Technical site. http://www.b737.org.uk/accident_news.htm.

[edit] External links

Wikimedia Commons has media related to: AirAsia

• AirAsia
• AirAsia Official blog
• AirAsia on Twitter
• AirAsia fleet age
• AirAsia fleet detail
 [show]
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Retrieved from "http://en.wikipedia.org/wiki/AirAsia"

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