AIR ASIA OVERVIEW

AirAsia Berhad (MYX: 5099) is a Malaysian low-cost airline headquartered in Kuala Lumpur.

It has been named as the world's best low-cost airline,[4] and a pioneer of low-cost travel in Asia.[5]

AirAsia group operates scheduled domestic and international flights to 78 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, Indonesia AirAsia, Philippines AirAsia, AirAsia Japan and AirAsia Zest have hubs in Don Mueang
International Airport, SoekarnoHatta International Airport, Clark International Airport, Narita International
Airport, Ninoy Aquino International Airport and Mactan-Cebu International Airport respectively.

AirAsia's registered office is in Petaling Jaya, Selangor while its head office is at Kuala Lumpur International Airport.[6]
[7]

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.[8]

All scheduled AirAsia departures from Kuala Lumpur use the Low cost carrier terminal.

AirAsia had abolished its fuel surcharges on November 2008, [9] but, due to rising oil prices, the fuel surcharge was reintroduced in May 2011.[10]

During 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. [11]

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.[12]

AirAsia is the sponsor of Malaysia national football team ,Singapore national football team and Queens Park
Rangers .

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 heavilyindebted 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 operatorMalaysia Airlines with promotional fares as low as MYR 1 (USD 0.27).

In 2003, AirAsia opened a second hub at Senai International Airport inJohor 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.

In August 2006, AirAsia took over Malaysia Airlines's Rural Air Service routes in Sabah and Sarawak, operating under
theFlyAsianXpress 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.
[13]

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 (Kunming, Xiamen, Shenzhen) 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.

An AirAsia Tail of the Malaysian flag with Cartoon drawings in the fuselage.

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. On 2 April 2012 Air Asia had their first flight

from Sydney to Kuala Lumpur.[14]

In August 2011, AirAsia agreed to form an alliance with Malaysia Airlines by means of a share swap.[15]
The alliance was struck down by the Malaysian government, in effect voiding the agreement of both airlines. By early

2013, AirAsia had seen a steep increase in its profitability. The year-on-year comparison had shown a 168% increase
in profits as compared to 2012.
For the quarter ending 31 December 2012, the airline's net profit stood at 350.65 million ringgit (US$114.08 million).
Despite a 1% rise in the average fuel price, the airline had recorded profits of 1.88 billion ringgit for the full financial

year 2012.[3]
In February 2013, AirAsia submitted an application to the Indian Foreign Investment Promotion Board, through its

investment arm, AirAsia Investment Limited, to seek approval for commencing its operations in India. [16]
AirAsia wanted to take up a stake of 49% in the airline, which was the maximum allowed by the Indian government at

that time.[17]
AirAsia initially invested an amount of 50 million United States dollars in the airline. The airline wished to begin
operations from Chennai and expand it's network in South India, to where AirAsia already operated flights from
Malaysia and Thailand.[18]

Subsidiaries
AirAsia India
AirAsia Japan
AirAsia X
Indonesia AirAsia
Philippines AirAsia
Thai AirAsia
AirAsia Zest

he total AirAsia fleet (excluding AirAsia X) consists of the following aircraft (as of September 2013):

AirAsia had witnessed a continuous growth in the amount of revenue passenger kilometres. Click graph to enlarge.

AirAsia fleet
Aircraft
Airbus A319-100

In fleet
1

Orders
0

Passengers
144

Notes
Aircraft are distributed as follows:

AirAsia Zest 1

Aircraft are distributed as follows:

Airbus A320-200

134

88

180

AirAsia (Malaysia) - 66

Thai AirAsia - 29

Indonesia AirAsia - 22

AirAsia Zest - 10

AirAsia Japan - 4

Philippines AirAsia - 3

From 2013 onwards Airasia received A320-200 equipped with sharklets

Airbus A320neo
Total

264
135

352

180

Entering into Service in 2016

AirAsia began a gradual conversion of its fleet from the Boeing 737300 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. [53]
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.[54]

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.[55]

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 737300 fleet at the Kuala Lumpur base by July

2007.[56]
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.[57][58]

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 optimise 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. [59]
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.[60]

In June 2011 AirAsia ordered 200 Airbus A320neos at the Paris Air Show.[61][62]
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.[61]
The deal was worth USD 18 billion at list prices, although it is likely that AirAsia obtained a substantial discount from

those prices.[62]
Singapore-based analyst Shukor Yusof said the deal had the potential to rival American Southwest Airlinesand make

Air Asia the world's biggest low-cost airline.[62][63]

The deal makes AirAsia Airbus' single biggest customer.[63]
On 13 December 2012, AirAsia placed an order for additional 100 Airbus A320 jets, splitting it between 64 A320neo

and 36 A320ceo.[64]
With this, the total number of orders that AirAsia had placed for the Airbus A320 had gone up to 475.