AirAsia history:

Tony Fernandes, together with partners Dato Pahamin Ab. Rajab (Chairman, AirAsia),
Kamarudin Meranun (Executive Director, AirAsia) and Aziz Bakar (Director, AirAsia) set up
Tune Air Sdn Bhd in 2001 and bought AirAsia from Malaysian owner DRB-Hicom, for a
token RM1 (USD 0.25 cents), and agreed to take on the airlines RM40 million debt.Driven
by Fernandes and with the help of his partners, AirAsia repaid that debt in less than two
years; despite the fact that it was operating in an extremely challenging environment in the
post-September 11, 2001, era. It started with two planes (Boeing 737-300s), one destination
(Pulau Langkawi) and a staff of 250 with the initial hub at Subang International Airport.

AirAsia Tagline and Mission:

Now Everyone Can Fly AirAsia company tagline has become a dream came through as
everyone mainly poor and middle income families can afford the air travel and not limited to
the elite people only.The way AirAsia achieved this by implementing low fare model using
strategies such as no frills,high frequency,easy to book ,safety first and also cost
optimization.AirAsia also achieved their goal of being the largest low cost carrier in Asia by

Being the best company to work for,treatingeachAllstar as amember of our extended

AirAsia family;
Creating a globally recognised Asean brand; and
Maintaining the highest quality product, embracing technology to reduce costs and enhance
service levels.

AirAsia Awards:

Non-Financial key performance indicator:

Operating initially with only 2 Boeing 737-300s, the AirAsia Group now has 30 aircraft and
the airline flies to over 52 domestic and international destinations operating over 100
domestic and international daily flights. From just one base in the old Subang International
Airport, we have 14 hubs in Malaysia, Thailand, Indonesia and the Philippines and other
countries as well. .Started from one airline AirAsia now Air Asia represent a group of
airlines that includes Thai AirAsia, Indonesia AirAsia, Philippines AirAsia and, soon,
AirAsia Japan.AirAsia started operation with only 1.5 mil people now it has 12-13 million
passengers annually and secured a domestic market share about 30 percent.

Financial indicatorStarting with only revenue of 167.7 million,now it has revenue of 4.50 billion as per 2011
AirAsia Financial Statement .A net increase of 4332 million are recorded.On the other
hand,for the operating profit ,it has a an increase of 1.16 billion as per 2011 and for total
assets it has approximately 13.91 billion.AirAsia also has secured a domestic market share of
30 percent. AirAsia operates with the world's lowest unit cost of US$0.023 per available seat
kilometres (ASK) and a passenger break-even load factor of 52%.

How AirAsia respond to competitionAirAsia has a competition in Indonesia market because of domination of Lion and the more
rapid growth of Garuda LCC subsidiary of CitiLink in the domestic market of LCC although
AirAsia manage to leverage its strong international brand .In order to capture the domestic
market,AirAsia allocate five more aircraft in 2H2013 and also two aircraft in 1H2013.On the
other hand,LCC competition in Thailands domestic market is poised to
increase significantly as Lion and Vietnams VietJet are preparing to launch new joint venture
carriers in Thailand in late 2013 and early 2014 respectively.To curb this pressure,Air Asia
added two aircraft in 1H2013 and also another six aircraft in 2014 to maintain its market
share.Lastly,AirAsia has a strong competitor in Philiphines that is CebuPacific.AirAsia

combines with Zest Airlines to provide a better advantage in market by expanding its fleet
launch.

How AirAsia respond to market

In 2014,AirAsia and Expedia, Inc enter a joint venture agreement for the purpose
of establishing an online travel agency covering the Asia-Pacific and offering a
complete range of great value flights, hotels and holiday packages
In 2014,AirAsia inks a landmark deal for 200 Airbus A320neo aircraft, making
AirAsia the biggest airline customer for Airbus for the single-aisle product line
worldwide.
First mover advantage of making low cost airline in Asia in 2001 and also
ticketless travelling 2003 in Malaysia and Thailand
During H1N1(swine flu disease) in 2009,people are afraid to travel because the virus will
spread when you touch an infected surface or breathe cough and sneeze droplets in the
air.Instead of cutting their busineses,AirAsia triple their marketing on this season believing it
will affect their sales in future.

http://mivianstrategies.typepad.com/blog/2014/05/change-management-in-air-asia.html

http://www.airasia.com/my/en/about-us/corporate-profile.page

https://books.google.com.my/books?
id=LSaI8HwAVHQC&pg=PA17&lpg=PA17&dq=air+asia+vision+2001&source=bl&ots=sx
LHWY9Bbi&sig=4cwnTKH4yEfSLeC_iWawpz2BGnc&hl=en&sa=X&redir_esc=y#v=onep
age&q=air%20asia%20vision%202001&f=true

http://centreforaviation.com/analysis/airasia-faces-challenges-throughout-southeast-asia-ascompetition-continues-to-intensify-125261

http://www.aensiweb.com/old/jasr/jasr/2013/2505-2512.pdf
https://itsaboutmymot.wordpress.com/2009/08/31/the-airasia-company-strategicmanagement-%E2%80%9C-how-airasia-can-be-a-leader-in-the-lowest-cost-carrier-in-theairplane-industry%E2%80%9D/#_ftn20