AirAsia

Infobox_Airline
airline=AirAsia
logo=Air Asia new logo.pnglogo_size=282
fleet_size=82 (+127 orders)
destinations=57
IATA=AK
ICAO=AXM
callsign=ASIAN EXPRESS
parent=
founded=1993
headquarters=Kuala Lumpur
key_people=Tony Fernandes (CEO)
hubs=Kuala Lumpur International Airport
secondary_hubs=Kota Kinabalu International Airport
Kuching International Airport
Senai International Airport
frequent_flyer=
lounge=
alliance=
company_slogan=Now Everyone Can Fly
website= http://www.airasia.com

AirAsia Berhad (myx|5099) is a low-cost airline based in Kuala Lumpur, Malaysia. It operates scheduled domestic and international flights and is Asia's largest low fare, no frills airline. AirAsia pioneered low cost travelling in Asia [ [http://www.nytimes.com/2007/12/23/travel/23prac.html?ref=yourmoney Does Low Cost Mean High Risk?] ] . It is also the first airline in the region to implement fully ticketless travel and unassigned seats. Its main base is the Low Cost Carrier Terminal (LCCT) at Kuala Lumpur International Airport (KLIA). Its affliate airlines Thai AirAsia and Indonesia AirAsia fly from Suvarnabhumi Airport, Thailand and Soekarno-Hatta International Airport, Indonesia, respectively.

History

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 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.

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 loadfactor 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. [cite news|title=Passengers’ perceptions of low cost airlines and full service carriers|url=http://dspace.lib.cranfield.ac.uk:8080/bitstream/1826/1453/1/Passengers+perceptions-low+cost-full+service-pdf.pdf]

AirAsia is currently the main customer of the Airbus A320. 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 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 further enhance its presence in Asia. [cite news|work=The Star|title=AirAsia embarks on 2nd chapter|author=Leong Hung Yee|date=2006-12-27|url=http://biz.thestar.com.my/news/story.asp?file=/2006/12/27/business/16419327&sec=business] 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 received 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. [ [http://www.avionews.com/index.php?corpo=see_news_home.php&news_id=1072132&pagina_chiamante=index.php AirAsia sponsors the Formula One team Williams] ]

On September 27, 2008, AirAsia, on the other hand, has on its list 106 new routes to be added to its current list of 60 over the next few years. [http://thestar.com.my/news/story.asp?file=/2008/9/27/bizweek/2131138&sec=bizweek]

Value added services

AirAsia has progressively launched value added services. On April 24, 2007, AirAsia introduced web check-in. 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. [ [http://www.airasia.com/site/en/page.jsp?reference=ancwebcheckin AirAsia web check in information] ]

On May 15, 2007, a service named "Xpress Boarding" was launched, enabling passengers to get priority boarding for a fee. This product is available in all hubs including Thai AirAsia and Indonesia AirAsia. [ [http://www.traveldailynews.com/new.asp?newid=37289&subcategory_id=98 AirAsia introduces Xpress boarding] ]

In the pipeline, after launching web check-in and kiosk check-in, AirAsia will later introduce PDA check-in.Fact|date=June 2008

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

Subsidiaries

Thai AirAsia

Thai AirAsia ( _th. 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.

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. [cite news|work=The Star|date=2007-01-06|title=X-citing deal for air travellers|url=http://thestar.com.my/news/story.asp?file=/2007/1/6/nation/16493788&sec=nation] It will start offering long-haul services from Kuala Lumpur to Australia and China using Airbus A330. [cite news|work=The Star|title=AirAsia X London flights from RM9.99|date=2007-01-05|url=http://www.thestar.com.my/news/story.asp?file=/2007/1/5/nation/20070105113409&sec=nation] Its inaugural flight is 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 October 1, 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.

Tune Hotels

The first AirAsia "no-frills" hotel, [http://www.tunehotels.com Tune Hotels] is ready for occupancy in Kuala Lumpur and Kota Kinabalu, and later in Penang, Johor Bahru, KLIA, Miri, Kuching and Sandakan. [ [http://www.utusan.com.my/utusan/content.asp?y=2007&dt=0108&pub=Utusan_Malaysia&sec=Korporat&pg=ko_01.htm Utusan Malaysia Online - Korporat ] ]

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 life, home and motor vehicle insurance as well as prepaid cards.

Destinations

AirAsia operates over 200 flights a day, to over 75 domestic and international routes covering Malaysia, Thailand, Indonesia, Singapore, Brunei, Myanmar, China, Vietnam, Laos, Cambodia, Australia and the Philippines.

In 2007, 19 new routes had been introduced over the AirAsia wide network [cite news|work=Singapore TODAYonline|url=http://www.todayonline.com/articles/232006.asp|title=SWEET SUCCESS FOR FIGHTER|date=2008-01-14] . These include routes from Kuala Lumpur to Gold Coast (Via AirAsia X), Vientiane, and Banda Aceh; and the connection of Southern China (Macau and Shenzhen) with different Malaysian hubs and Bangkok.

New routes launched in 2008 to date include:

* Guangzhou (started 16 Jan 2008 from KLIA [http://www.airasia.com/site/bn/en/pressRelease.jsp?id=857ca9f3-7f000010-94a28e00-f8e47c5e AirAsia flies daily direct to Guangzhou] , last retrieved 17th June 2008] )
* Singapore (started 1 Feb 2008 from KLIA [http://www.airasia.com/site/bn/en/pressRelease.jsp?id=d2c1dbc6-7f000010-1eb7d250-66d30775 Kuala Lumpur-Singapore Route] , last retrieved 17th June 2008] )
* Hangzhou (started 4 February 2008 from KLIA by AirAsiaX [http://www.airasia.com/site/bn/en/pressRelease.jsp?id=e236eef1-7f000010-fbbbc000-e201f081 AirAsia X expands with second international route] , last retrieved 15th June 2008] )
* Ho Chi Minh City (started 15 April 2008 from KLIA and Bangkok [http://www.airasia.com/site/bn/en/pressRelease.jsp?id=5f504f44-7f000010-12146260-ff36ceff AirAsia Expands into Indochina] , last retrieved 15th June 2008] )
* Hong Kong (started 15 May 2008 from KLIA)
* Haikou (started 22 May 2008 from KLIA [http://www.airasia.com/site/bn/en/pressRelease.jsp?id=800360a1-7f000010-e7bb9100-d8686a22 AirAsia Route To Haikou] , last retrieved 15th June 2008] )
* Kuantan (started 1 June 2008 from KLIA [http://www.airasia.com/site/bn/en/pressRelease.jsp?id=71d0b264-7f000010-15b6aad0-1f05f346 Launch of KL-Kuantan route] , last retrieved 15th June 2008] )
* Guilin (started 3 September 2008 from KLIA [ [http://www.airasia.com/nl/nl080723-en.htm Fly Direct to Guilin from RM88 ] ]
* Guangzhou (started 1 July 2008 2X daily flight from KLIA)
* Makassar (started in 25 July 2008) [ [http://www.airasia.com/site/my/en/page.jsp?reference=indesschedule Welcome to AirAsia.com...now everyone can fly ] ]
* Hong Kong (begins 2X daily flight, 27 Aug 2008) [ [http://www.airasia.com/creditcard/my/contest/citibank_promo_fares.htm Priority Booking For AirAsia-Citibank Card Member ] ]
* Manado (starts in 12 Sept 2008) [ [http://www.airasia.com/nl/nl080715-en.htm Mid Summer Trilogy - Shop till you drop from RM3! ] ]
* Batam (starts in 22 Sept 2008) [ [http://www.airasia.com/site/my/en/page.jsp?reference=btmpdg2008 Welcome to AirAsia.com...now everyone can fly ] ]
* Labuan (From Kota Kinabalu, starts in 26 Sept 2008) [http://www.airasia.com/nl/nl080831-en.htm]

There will be more new routes in 2008, which will include routes to India and China: [ [http://www.channelnewsasia.com/stories/singaporelocalnews/view/313318/1/.html Channelnewsasia.com ] ] [ [http://www.channelnewsasia.com/stories/singaporelocalnews/view/316009/1/.html Channelnewsasia.com ] ]

* Bali (begins 3 weekly flight from 26 Oct 2008 at Johor Bahru)
* Bali (begins 5X daily flight from 26 Oct 2008 at KLIA)
* Ho Chi Minh City (begins 11 weekly flight from 26 Oct 2008 at KLIA)
* Singapore (begins at 1 Nov 2008 from Kuching & Kota Kinabalu)
* Tiruchirapalli, India (starts in Nov 2008) [ [http://www.btimes.com.my/Current_News/BTIMES/Wednesday/Latest/iaaindia.xml/Article/ AirAsia flying to India next year] ]
* Balikpapan (Postpone until further notice)
* Singapore (begins 6X daily flight from 1 Dec 2008 at KLIA)

AirAsia going to set up a new LCC hub at Malacca on this 8 Dec 2008. The routes would cover Medan, Pekan Baru, Palembang, Padang (all in Indonesia), Penang and Langkawi. [http://thestar.com.my/news/story.asp?file=/2008/8/14/nation/22078936&sec=nation] [http://thestar.com.my/news/story.asp?file=/2008/8/3/nation/21987314&sec=nation]

Thai AirAsia has added Shenzhen and Hong Kong to its network in 2008 and will fly to Guangzhou, Guilin, Chengdu and Chongqing and in 2009. [cite news|work=Bangkok Post|title=Thai AirAsia to fly daily to Guangzhou|date=2007-12-10|url=http://www.bangkokpost.com/Business/10Dec2007_biz41.php] .

Indonesia AirAsia, has commenced flying Jakarta-Johor Bharu, Jakarta-Kuching and Jakarta-Kota Kinabalu in 2008. [cite news|work= The Star|title=AirAsia plans more new routes|date = 2007-03-07|url= http://biz.thestar.com.my/news/story.asp?file=/2007/3/7/business/17067386&sec=business|author= Chan Chin Thut ]

AirAsia X has plans to fly to additional, as yet unconfirmed, Australian destinations from its Kuala Lumpur base. The airline also has plans to fly to India, China, UK and the Middle East. It will inaugurate a route to Perth, Australia in November 2008 [http://thestar.com.my/news/story.asp?file=/2008/5/15/nation/20080515131703&sec=nation AirAsia offers free seats for KL-Perth] , last retrieved 17th June 2008] . Some of the planned flights in 2009 are

* Perth (via AirAsia X, commences 2 November 2008) [http://thestar.com.my/news/story.asp?file=/2008/5/15/nation/20080515131703&sec=nation AirAsia offers free seats for KL-Perth] ]
* Melbourne (via AirAsia X, commences 12 November 2008) [http://www.airasia.com/site/my/en/promotion.jsp?reference=mel2008]
* Tianjin (commences Jan 2009)
* London (commences March 2009) [ [http://thestar.com.my/news/story.asp?file=/2008/5/11/nation/21213476&sec=nation To London and back - for RM1,200 ] ]
* Nagoya [ [http://biz.thestar.com.my/news/story.asp?file=/2008/5/16/business/21268017&sec=business AirAsia to remain profitable despite challenges ] ]

Fleet

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 [cite news|work=Airbus.com|title=AirAsia increases A320 commitment to 100 aircraft|url=http://www.airbus.com/en/presscentre/pressreleases/pressreleases_items/25_Mar_05_AirAsia.html] . 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 [cite news|work=Airbus.com|title=AirAsia initiates total fleet renewal with Airbus A320|url=http://www.airbus.com/en/presscentre/pressreleases/pressreleases_items/12_9_05_A320_AirAsia.html] .

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 [cite news|work=Airbus.com|title=AirAsia orders 40 more A320 Family aircraft|url=http://www.airbus.com/en/presscentre/pressreleases/pressreleases_items/07_19_06_airasia.html] . It made a third order of 50 film 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 replaced the Boeing 737-300 fleet at the Kuala Lumpur base by July 2007 [cite news|work=Airbus.com|title=100 more A320s for AirAsia|url=http://www.airbus.com/en/presscentre/pressreleases/pressreleases_items/07_01_08_AirAsia.html] . The airline made its latest order of 25 film orders on 25 November 2007, bringing its total orders of Airbus aircraft to 175 with 50 on option [ [http://afp.google.com/article/ALeqM5iYiePqyQtiyQaC4PJkkSjiESFFNQ Malaysia's AirAsia increases A320 order to 175 planes] ] .

On 6 July 2007, the airline placed another order with Airbus for a further 25 A320-200sm making it the largest customer of the type." [http://www.flightglobal.com/articles/2007/12/06/220110/airasia-orders-additional-25-airbus-a320s.html AirAsia orders additional 25 Airbus A320s] " Flight Global, 06/12/2007]

Incidents and accidents

* November 7, 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. [cite news|work=737 Technical site |title=7 Nov 2004 - AirAsia 737-300 over-runs runway in heavy rain|url=http://www.b737.org.uk/accident_news.htm]

ee also

*Tune Ventures
*Air Asia Group Destination

External links

* [http://www.airasia.com AirAsia]
* [http://blog.airasia.com AirAsia Official Blog]
* [http://www.airfleets.net/ageflotte/AirAsia.htm AirAsia fleet age]
* [http://www.planespotters.net/Airline/AirAsia?show=all AirAsia fleet detail]

References