Thursday, November 15, 2007

A Success Story - AirAsia Bhd

AirAsia aim to be Asia's BIGGEST airline by 2013 and make Malaysia the region busiest aviation hub.

Two weeks ago, AirAsia won the prestigious CAPA Airline of the Year Award and soon will be making an IPO for their AirAsia X -a budget long haul carrier.

AirAsia Honoured 'Airline Of The Year 2007' Award

AirAsia won the Centre for Asia Pacific Aviation (CAPA) Airline of the Year Award for 2007 at Aviation Outlook Summit gala reception in Singapore, while Hong Kong International Airport was named CAPA International Airport of the Year.

The airline was singled out as having made the greatest impact on the development of the airline industry in the region, establishing itself as a leader, and the benchmark for others to follow. CAPA said that AirAsia is now poised to become the biggest airline in the region next decade, commanding a highly influential position in regional aviation.

In aviation history terms, AirAsia's arrival on the international aviation scene is unprecedented. Barely in existence only five years ago, in another five years it promises to be the largest airline in the region. In the course of this phenomenal advance, it has changed the shape of Asian aviation and strongly influenced government attitudes to regulatory reform.

Its new ventures this year include an extension of the cross-border joint venture model it pioneered in Asia, as well as the launch in November of its long-haul AirAsia X offshoot, confirming the airline's role as a true innovator and a catalyst for positive market change in this region and beyond”.

Note:- Just three years ago, AirAsia, the leading low fare, no frills, home grown airline has clinched the honor of being named Asia Pacific Low Cost Airline of the Year 2004 by the Centre for Asia Pacific Aviation (CAPA).

The CAPA Awards are presented annually to Asia Pacific and Middle Eastern personalities and organisations doing the most to influence business and regulatory strategy in ways which will have a lasting and irreversible impact on the evolution of the aviation and tourism industries.

AirAsia proposed IPO of AirAsia X

LONG-HAUL budget airline AirAsia X, an affiliate of AirAsia Bhd, will be fast-tracking its floatation plans from the original three-year time frame to end Nov. or early December 2007. AirAsia X plans to raise some RM1 billion through an initial public offering on Bursa Malaysia.

For its long-haul routes, the airline is eyeing the purchase of some 20 aircraft, either B787s or A350s.

AirAsia X has a 30 year franchise to use the AirAsia brand and its Web site for online bookings.

AirAsia X, a Malaysian budget carrier partly owned by Virgin, is in talks with private equity funds to sell a 20 percent stake in itself to raise money to buy new planes.

AirAsia X in June ordered 15 Airbus A330-300 planes worth $2.88 billion at list prices with an option to buy 10 more. The first delivery is scheduled for September next year.

AirAsia X's maiden flight to Gold Coast, Australia, received overwhelming response from travellers. The airline, which is operating a four-time weekly service on a leased A330 aircraft, has so far received more than 20,000 bookings valued at RM15 million.

The airline has submitted its proposal to the Chinese authorities to fly five times a week to China and expects to get a response before year end.

AirAsia X's has obtained the green light to fly to Stansted Airport in East London last month, AirAsia X also expects to offer daily flights to the UK by the fourth quarter of 2008 and will operate the service on two leased A340s aircraft.

Ultimately the airline hopes to have a network covering Asia, Australia, China, Europe, India and the Middle East and plans to offering return ticket prices between $80 and $450 between Malaysia and the UK.

How AirAsia started

On December 2, 2001 Tune Air Sdn Bhd bought AirAsia (the heavily indebted airline) for a token sum of one ringgit. Tony Fernandes and his partners 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).

Current Passenger Statistics

In FY 2007, AirAsia Bhd carried 8,737,939 passengers, up from 5,719,411 in FY 2006. Cumulative passengers of the Group totaled 30 million by the end of calendar year 2006 and in November 2007- 40 million. FY 2008 projected 11 million passengers for AirAsia Bhd and 7 million for AirAsia X .

Comment:- A true success story - a guideline for "Making Dreams Come True" business development course!