How much is your China Flight tickets for your well-prepared China Tour? Could believe that you can just pay 500 RMB for a flight from Tianjin to Kuala Lumpor? Here it is, AirAsia make your dream come true!
AirAsia was established in 1993 and commenced operations on 18 November 1996. It was originally founded by agovernment-owned conglomerate DRB-Hicom. On 2 December 2001, the heavily-indebted airline was purchased by former Time Warner executive Tony Fernandes’s company Tune Air Sdn Bhd for the token sum of one ringgit. This was after great deliberation as the initial offer was fifty sen. Fernandes 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).
AirAsia operates with the world’s lowest unit cost of US$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.
The airline claims ‘No Admin Fee’, but has introduced a number of fees for services that are free on many airlines. Its fees and charges are: seating fee (charged for pre-selecting seats, higher for ‘hot seats’ near the front or exits, with priority boarding), ‘convenience fee’ (a per passenger, per flight charge imposed for all means of payment other than direct debit (only available for customers of certain Malaysian banks)), marked-up airport tax charges, a charge for in-flight entertainment including use of seat-back video, a checked luggage fee (charged by weight, not by piece, with excess baggage charges payable for carrying baggage exceeding 15 kg, if not pre-booked), charges for food, for use of a wheelchair and for amenity kit (pillow, blanket and eyeshade).
On 27 December 2006, AirAsia’s CEO Tony Fernandes unveiled a five-year plan to further enhance its presence in Asia. In the plan, AirAsia will strengthen and enhance its route network by connecting all the existing cities in the region and expanding further into Indochina, Indonesia, Southern China (Kun Ming, Xiamen, Shenzen) and India. The airline will focus on developing its hubs in Bangkok and Jakarta through its sister companies, Thai AirAsia and Indonesia AirAsia. Hence, with increase frequency and addition of new routes, AirAsia expects passenger volume to hit 18 million by end-2007. From September 2007, AirAsia’s Kuala Lumpur hub is fully operated with A320s while Thai AirAsia received its first Airbus A320 in October 2007. Indonesia AirAsia received its first Airbus by January 2008.
In 2003, AirAsia opened a second hub at Senai International Airport in Johor 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 commenced flights to Indonesia. Flights to Macau started in June 2004, while flights to Mainland China (Xiamen) and the Philippines (Manila) started in April 2005. Flights to Vietnam andCambodia followed later in 2005 and to Brunei and Myanmar in 2006, the latter by Thai AirAsia.
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