The AirAsia Story

ICAO/CAAC Symposium on Low Cost Carriers

5
th
November 2013
1
Malaysia AirAsia
2001
Thailand AirAsia
2003
Indonesia AirAsia
2005
AirAsia Philippines
2010 2013
0.3 1
2
3
6
9
14
18
23
26
30
35
44
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
AirAsia passengers carried
million
2
acft in
2001
AirAsia India
Largest
ASIAs LOW
COST
CARRIER
Fastest
PASSENGER
GROWTH
Globally
recognised
BRAND
>120
aircraft in
2013
12 year achievement
2
3
More than Just an Airline
Ancillary - Leveraging on our strong brand, extensive network, large
number of passengers and the number one travel website in Asia
Building a recognisable consumer brand through the following:
Minimal cost
use existing
network, belly
space, existing
infrastructure
Provides recovery
to spike in oil
prices &
competitive
pressures
4
Disciplined Cost Structure
4.40
5.33
4.67
4.50
4.72
5.36
5.68
7.14 7.26 7.27 7.29
7.93 7.94 7.98
9.12
9.22 9.22 9.27
9.41 9.45
9.90 9.93
10.25
10.51
10.63
11.24
13.05
15.08
16.08
18.95
M
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Airlines CASK in 2012
USD cents
LCC competitor CASK FSC competitor CASK
4
5
6 Ingredients of
AirAsias Success
5
6
People our BIGGEST asset
- Right talent for the right job
1
Over 10,000 staff
Experienced, loyal, stress-
tested management team
No unions
Deep senior
management structure
Can-do attitude
Equal opportunities
6
Invest in people our biggest asset
Kaew
Ramp Boy

IT Supervisor
People Development
1
7
8
Smart Sport Partnerships
- Build brand to maximise reach
2
9
Simple Business Model
- Consistent execution and delivery
3
3.9
6.5
10.9
11.4
12.7
AirAsia SIA Cathay Thai MAS
Average aircraft age (years)
Same aircraft specification
Single aircraft type A320
Once class configuration
Young fleet
lower
maintenance
Repeatable operations processes
25 mins turnaround
13-14 hours aircraft
utilisation per day
9
10
Social Media & Digital Marketing
- Customer engagement at no cost
4
10
11
Invest in Technology
- Platforms and apps for low-cost distribution
5
11
12
Continuous Innovation
- New ideas, new ways
6
Self-service
kiosks
for check-in
Automation
askAirAsia one-stop information portal
New route development
First LCC in Bandung
Previously not well-known
to tourists, now a favourite
for Msians, Thais, Indians
52K pax in 2004 to 305K
in 2011
Alternative to Hong Kong
Pax carried grew:
KUL-MFM: 5K in 2004 to
308K in 2012
DMK-MFM: 58K in 2004
to 419K in 2012
13
Future of Air travel
13
Asia will lead air traffic growth in the future
0 1000 2000 3000 4000 5000
Africa
CIS
Latin America
Middle East
North America
Europe
Asia-Pacific
2011
2031
World Traffic
RPK billions
% of 2011
World RPK
20 year
growth
% of 2031
world RPK
28% 5.4% 32%
27% 4.1% 24%
27% 3.3% 20%
7% 7.3% 11%
5% 5.9% 6%
3% 5.4% 4%
3% 5% 3%
CIS = Common wealth of independent states. Former Soviet Republics
Source: AirBus Global Market Forecast
Air traffic will
double in the
next 15 years
14
310m
610m
500m
Asia is a demographic heavy hitter
Half the worlds
population lives
in this circle
15
Note growth numbers based on domestic & international forecast passenger growth numbers from IATA
Source: Euromonitor; Lit search
Asian countries
High growth
>7%
Medium growth
~4-7%
Lower growth
~24%
Majority of Asian aviation markets are in
early stages of development
16
DOMESTIC INTERNATIONAL
*Excludes passenger flow to and from the Middle East
Source: OAG; AirBus Global market forecast; Bain analysis
LCC penetration is expected to increase
across Asia
LCC will the fastest growing airlines of the future
17
18
Simple terminal design
Basic airport amenities
No necessity of premium lounges,
multiple class check-ins
Common waiting area in departure
hall

Airport operations
No aerobridges; Front and back door
steps to allow quick boarding
Simple & manual baggage handling
process

Landing & parking charges
Lower landing and parking charges
translating to lower fares for
passengers
LCC success needs low cost airports
Simple terminal design low operating cost
reduce airport charges

18
Source: MAHB Malaysia Airport Authority
LCCT helped create a new segment market that
flies regionally for leisure and visiting friends
and families
Low cost airport hub
Airport gains from high traffic growth higher revenue

MAHB earned USD59m more in airport tax
revenue within a similar period after the PSC was
reduced to USD8
15 16 18 21 23 20 19 17 17 19 20 21
5
8 10
13
15
18
19
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
KLIA PAX movement, 2001 2012
Million
Main Terminal Building (MTB)
LCCT
CAGR
MTB = 12%
LCCT = 26%
MTB = 1%
24.2
26.4
27.5
29.7
34.1
37.6
39.8
0
10
20
30
40
50
60
70
80
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
PSC = USD14
PSC = USD11
(Eff 26 Mar 06)
PSC = USD8
(Eff 1 Jun 07)
1 Jan 04 31 May 07
(3.4 yrs)
Revenue: USD32m
1 June 07 31 Dec 10
(3.6 yrs)
Revenue: USD91m
PSC = USD12
(Eff 15 Sep 11)
KLIA LCCT airport tax revenue earned by MAHB, 2002 2012
USD Million
19
KLIA Example
Thank You
20