Thinking about buying a Airline is costly affair but sometimes there are some exceptions which makes us crazy to know. Here you go and know about Airasia ( Tata Group owns 84% share of Airasia India) deal which is very much lowest deal among airline buying deals. Story begins with big losses (around US$11 million (MYR 40 million) worth of debts) on airline founded and operated by DRB-HICOM (Malaysian Govt. based organisation).
On 8 September 2001, the heavily indebted airline was bought by former Time Warner executive Tony Fernandes and Kamarudin Meranun’s company Tune Air Sdn Bhd for the token sum of one ringgit (about US$0.26 at the time) which is the lowest airline deal among all. The partners turned the company around, producing a profit in 2002 and launching new routes from its hub as affiliated (or Subsidiaries) and expanded to below options which converted it in a big profit making airlines:
1. AirAsia China
AirAsia China was a subsidiary of AirAsia, a Malaysian low-cost airline. However, as of my knowledge cutoff in September 2021, AirAsia China had not been officially launched and was still in the process of establishing its operations.
The plan to establish AirAsia China was announced in 2017 as a joint venture between AirAsia and several Chinese partners, including the Everbright Group and the Henan Government Working Group. The aim was to tap into the growing Chinese aviation market and cater to the increasing demand for low-cost air travel.
The headquarters of AirAsia China was planned to be in Zhengzhou, the capital city of Henan province in central China. The airline intended to operate domestic and international flights from Zhengzhou, with a focus on connecting central China with other parts of the country and Southeast Asia.
2. AirAsia Vietnam
As of my knowledge cutoff in September 2021, AirAsia Vietnam had not been officially launched. However, there were plans for AirAsia to establish a Vietnamese subsidiary.
In 2017, AirAsia signed a Memorandum of Cooperation with the Vietnamese transportation company Hai Au Aviation and the Gumin Company to establish AirAsia Vietnam. The plan was to establish a low-cost carrier based in Vietnam and cater to the growing demand for affordable air travel in the country.
AirAsia Vietnam was intended to operate domestic and international flights from its base in Vietnam, connecting Vietnamese cities with other destinations in Asia. The airline aimed to offer competitive fares, expand air travel options for Vietnamese residents, and stimulate tourism by attracting visitors to Vietnam.
3. AirAsia India
AirAsia India is a subsidiary of AirAsia, a Malaysian low-cost airline. It was launched as a joint venture between AirAsia and Tata Sons, an Indian conglomerate, in 2014. AirAsia India operates as a domestic low-cost carrier in India.
The airline is headquartered in Bengaluru, Karnataka, and operates flights to various cities across India. It aims to provide affordable air travel options to customers and promote air connectivity within the country. AirAsia India primarily focuses on serving Tier 2 and Tier 3 cities in India, in addition to major metropolitan areas.
AirAsia India’s fleet consists of Airbus A320 aircraft, configured to carry both economy class and premium class passengers. The airline offers a range of services and amenities, including in-flight meals, seat selection, and baggage allowance, which can be purchased by passengers based on their preferences.
4. AirAsia Japan
As of my knowledge cutoff in September 2021, AirAsia Japan was a subsidiary of AirAsia, a Malaysian low-cost airline. However, it is important to note that AirAsia Japan ceased operations in October 2020.
AirAsia Japan was initially established in 2012 as a joint venture between AirAsia and a Japanese conglomerate called All Nippon Airways (ANA). The aim was to tap into the Japanese market and provide low-cost air travel options to customers in Japan and other parts of Asia.
The airline operated domestic flights within Japan, as well as international flights to select destinations in Asia. AirAsia Japan had its main hub at Narita International Airport near Tokyo and operated a fleet of Airbus A320 aircraft.
Despite initial plans to expand and strengthen its presence in the Japanese market, AirAsia Japan faced various challenges, including strong competition from established carriers and regulatory issues. As a result, the decision was made to suspend operations in October 2020.
5. AirAsia X
AirAsia X, often stylized as AirAsia X, is a long-haul subsidiary of AirAsia, a Malaysian low-cost airline. AirAsia X focuses on providing low-cost long-haul flights to destinations primarily in Asia, as well as some international destinations.
Established in 2007, AirAsia X operates with a business model that aims to offer affordable air travel options for long-haul flights. The airline operates using an all-Airbus fleet, specifically Airbus A330 and Airbus A321neo aircraft, configured to accommodate both economy class and premium class passengers.
AirAsia X’s main hub is Kuala Lumpur International Airport in Malaysia. From there, it serves a range of long-haul destinations across Asia, Australia, the Middle East, and the United States. Popular routes include flights between Kuala Lumpur and destinations such as Sydney, Tokyo, Seoul, Dubai, and Honolulu.
The airline offers various add-on services and amenities for passengers to customize their travel experience, including seat selection, in-flight meals, extra baggage allowance, and more. AirAsia X also provides premium flatbed seats in its premium class cabin, which offer enhanced comfort and additional benefits.
6. Indonesia AirAsia & Indonesia AirAsia X
Indonesia AirAsia, often referred to as AirAsia Indonesia, is a subsidiary of AirAsia, a Malaysian low-cost airline. It operates as a domestic and international airline in Indonesia.
Established in 2004, Indonesia AirAsia has its headquarters in Tangerang, near Jakarta, and operates flights from multiple bases across the country, including Soekarno-Hatta International Airport in Jakarta and Ngurah Rai International Airport in Bali.
The airline serves various destinations within Indonesia, connecting major cities such as Jakarta, Surabaya, Bali, Medan, and more. Additionally, Indonesia AirAsia operates international flights to destinations in Southeast Asia and beyond, including Singapore, Kuala Lumpur, Bangkok, and Perth.
Indonesia AirAsia operates a fleet primarily consisting of Airbus A320 aircraft, configured to carry both economy class and premium class passengers. The airline emphasizes affordability, aiming to provide low-cost air travel options to a wide range of passengers.
Passengers have the option to customize their travel experience by choosing from various add-on services such as meals, baggage allowance, seat selection, and more.
7. Philippines AirAsia
Philippines AirAsia, also known as AirAsia Philippines, is a subsidiary of AirAsia, a Malaysian low-cost airline. It operates as a domestic and international airline based in the Philippines.
AirAsia Philippines was established in 2010 as a joint venture between AirAsia and Filipino investors. The airline’s main hub is located at Ninoy Aquino International Airport in Manila, and it operates flights to various destinations within the Philippines, as well as international flights to select destinations in Asia.
The airline focuses on providing affordable air travel options, with a fleet primarily consisting of Airbus A320 aircraft. Passengers have the choice of economy class and premium class cabins, and additional services such as seat selection, in-flight meals, and extra baggage allowance can be purchased as add-ons.
AirAsia Philippines serves multiple domestic destinations, including popular cities such as Cebu, Davao, Kalibo (gateway to Boracay), Puerto Princesa (gateway to Palawan), and more. Internationally, the airline offers flights to destinations like Kuala Lumpur, Bangkok, Seoul, Taipei, and other cities in Asia.
AirAsia Philippines aims to cater to a wide range of travelers, including leisure travelers, business travelers, and those visiting friends and relatives. It seeks to provide affordable and convenient options for air travel within the Philippines and to popular regional destinations.
8. Thai AirAsia & Thai AirAsia X
Thai AirAsia, commonly known as AirAsia Thailand, is a subsidiary of AirAsia, a Malaysian low-cost airline. It operates as a domestic and international airline based in Thailand.
Established in 2003, Thai AirAsia has its main hub at Don Mueang International Airport in Bangkok, Thailand. The airline focuses on providing affordable air travel options, aiming to make air travel accessible to a wider range of passengers.
Thai AirAsia operates a fleet primarily consisting of Airbus A320 aircraft, configured with both economy class and premium class seating options. Passengers can choose from various add-on services, such as seat selection, in-flight meals, extra baggage allowance, and more, to customize their travel experience.
The airline serves a wide range of domestic destinations within Thailand, including popular cities such as Phuket, Chiang Mai, Krabi, and Hat Yai. Additionally, Thai AirAsia operates international flights to destinations across Asia, including cities in China, India, Malaysia, Singapore, Indonesia, and more.
Thai AirAsia has played a significant role in promoting tourism in Thailand and facilitating regional connectivity by offering affordable flights to various destinations.
More Information about Airasia:
Location of Headquarter and Corporate Affairs: The head office is the Red Quarters (RedQ) at Kuala Lumpur International Airport in Sepang, Selangor. The registered office is on level 13 of the Menara Prima Tower B in Petaling Jaya. The airline has moved its head office to a new 56,985.1 m2 (613,383 sq ft), RM140mil facility constructed at klia2 on 7 November 2016. Until the new head office opened, the airline’s head office has remained at LCCT.
The new klia2 head office has been scheduled to open at the end of 2015. It is scheduled to hold about 2,000 AirAsia and AirAsia X employees. Aireen Omar, the AirAsia Country CEO of Malaysia, stated that the headquarters needed to be redesigned because in the klia2 plans the location of the control tower had been changed. Construction on the facility was scheduled to begin in July 2014. Malaysia Airports Holdings is leasing the land that will be occupied by the headquarters. An AirAsia X flight attendant gave the building the name “RedQuarters” or “RedQ”, and its groundbreaking ceremony was held in November 2014.
Controversies: AirAsia India pilot and famous vlogger Gaurav Taneja claimed that the airline suspended him for “standing up for safe operations of an aircraft and its passengers”. Taneja had alleged earlier that the airline was violating safety protocols that have been introduced by the law for safety of the passenger as well as the pilot, which could endanger the lives of hundreds of AirAsia India passengers. Two AirAsia India top officials, Capt. Manish Uppal, head of operations & Capt. Mukesh Neema, head of air safety have been suspended for a period of three months by the Directorate General of Civil Aviation for alleged safety violations on 11 August 2020.
Sum up: After reading this hope you got interesting information about Airasia Airline and how it converted in profit from loss making airline. Mr. Tony Fernandes(former Time Warner(Warner Bros. Home Entertainment) Executive) is the man behind this story.
Hope you will support us always and thanks for visiting Singhvi Online.
If you want to know about tinder then click the link below:
How tinder made itself a big company? – Singhvi Online