Case Study Of Airasia

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1.0 BACKGROUND Airasia was established in 1994 and began its first operation in 1996.It was founded by a government owned conglomerate DRB Hicom. Later in 2001, because of the airline was heavily indebted, former Time Warner executive Tony Fernandes’ company “Tune Air Sdn Bhd”has bought the airlines for RM 1 and left RM 40million debt at that time. In 2002, Tony has change the fate of the airlines by producing profit and launched new routed from its main base in Kuala Lumpur. Airasia became close competitive to the monopoly operator Malaysia Airlines with their promotional fares as low as RM 1.In 2003,Airasia opened its second hub at Senai International Airport Johor Bahru and also launched its first flight to Bangkok. Ever since Airasia become more profitable, they started to affiliate with Thai and added Singapore to the destination list and started flight to Indonesia. Not long after that, in 2004, they opened flight to Macau and Xiamen (China) and in 2005 to Manila(Philippines), Vietnam and Cambodia and in 2006 to Brunei and Myanmar. Toward the end of 2006, Fernandes presented his five-year plan to upgrade AirAsia 's vicinity in Asia. The arrangement was for AirAsia to improve its route network by interfacing the greater part of its current destinations all through the locale and extending further into Vietnam, Indonesia, Southern China (Kunming, Xiamen, Shenzhen) and India. Through its sister companies, Thai AirAsia and Indonesia AirAsia, the arrangement required an

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