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'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).
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 airline company will be operating fully on Airbus A320 by June 2007 replacing the current Boeing 737. 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 the pipeline, after launching web-check ins, AirAsia will later introduce PDA check-ins.
By July 2007, AirAsia’s Kuala Lumpur hub will be fully operated with A320s. Thai AirAsia will receive its first Airbus A320 in October 2007 and Indonesia AirAsia 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]
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 domestic travel only and for those with no check-in baggage. [4] This would enable passengers to check in faster and more conveniently and also enable AirAsia to cut costs and check in preparation. 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. [5] In August 2007, Sir Richard Branson announced to take 20 percent stake in AirAsia. [6]
Subsidiaries
Thai AirAsia
Main articles: 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
Main articles: 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
Main articles: 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
FlyAsianXpress (FAX)
Main articles: FlyAsianXpress
AirAsia subcontracts 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.
AirAsia X
Main articles: AirAsia X
'AirAsia X', renamed from 'AirAsia Long Haul', is a service operated by FlyAsianXpress as a franchise of AirAsia.[8] It will offer long-haul services from Kuala Lumpur to Europe using Airbus A330 and with fares starting from RM9.99 (excluding tax and airport charges).[9] It is expected to begin operations in November 2007.
Tune Hotels
Main articles: 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. It's founder is Tony Fernandes, the founder AirAsia.
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]
'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
Main articles: AirAsia destinations
AirAsia operates about 200 flights a day, to 48 destinations in 10 countries.
AirAsia is introducing six more routes in 2007. This includes to Ho Chi Minh City, Vientiane and Myanmar.[13] AirAsia has also been granted the rights to fly to Shenzhen and Xiamen from Malaysia; flights will be operated from Kota Kinabalu[14] and Kuala Lumpur. The CEO is also not ruling out Kuching-Perth service in the future following Malaysia Airlines withdrawal from the route[15]
AirAsia is setting up another hub at Penang International Airport, Penang, Malaysia by this year.
Meanwhile, Thai AirAsia will add flights to Shenzhen and Kunming in China, and Jakarta and Bali in Indonesia in 2007, all from its hub, Bangkok.[16].
For Indonesia AirAsia, Jakarta-Johor Bahru and Jakarta-Kuching will be introduced.[13]
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. [18]
Ground arrangements
AirAsia offers convenient ground and ferry transfer from the following destination in partnership with local operators.
★ Kuala Lumpur LCC Terminal to KL Sentral Station via SkyBus.
★
★ Van transfer from KL Sentral to selected hotels in Kuala Lumpur with SkyVans
★ Macau International Airport to Hong Kong and Shenzhen by ferry and to Guangzhou by coach
★ Xiamen International Airport to various parts of China by long-distance coach
★ Clark International Airport to Central Manila by coach
★ Surat Thani Airport to Koh Samui by coach or ferry
★ Sultan Abdul Halim Airport, Alor Star to Hat Yai, Thailand by van
Fleet
AirAsia's Boeing 737 at KLIA contact terminal
| Aircraft | # | Seats | Notes |
|---|---|---|---|
| Airbus A320-200 | 26 (124 on Order) | 180 | |
| Boeing 737-300 | 32 | 148 |
| Aircraft | # | Seats | Notes |
|---|---|---|---|
| Airbus A320-200 | 26 | 180 | |
| Boeing 737-300 | 11 | 148 |
AirAsia has ordered 150 Airbus A320 with the option of 50 more,[21] 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 will be fully operated with A320s by July 2007.
Incidents and accidents
★ 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.[22]
Awards and recognition
Main articles: AirAsia Awards & Recognition
External links
★ AirAsia
★ FlyAsianXpress (FAX)
★ AirAsia Fleet Age
★ AirAsia Fleet Detail
★ AirAsiaPlus
References
1. Passengers’ perceptions of low cost airlines and full service carriers
2. AirAsia embarks on 2nd chapter
3. [1]
4. AirAsia web check-in information
5. AirAsia introduces Xpress boarding
6. Branson to buy stake in Malaysias AirAsia
7. AirAsia confident of Vietnam market
8. X-citing deal for air travellers
9. AirAsia X London flights from RM9.99
10. [2]
11. Air Asia eyes Bangladesh skies
12. Sri Lanka's first ever budget airline ties up with Asia's best
13. AirAsia plans more new routes
14. Air Asia given rights for Xiamen and Shenzen flights
15. Kuching-Perth flights in the pipeline
16. Thai AirAsia expects to fly 4.2m passengers this year
17. AirAsia plans more new routes
18. Budget airline Air Asia to reveal its destinations in India and Australia
19. Flight International, 3-9 October 2006
20. Flight International, 3-9 October 2006
21. AirAsia orders 40 more A320 Family aircraft
22. 7 Nov 2004 - AirAsia 737-300 over-runs runway in heavy rain
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