AirAsia Case Analysis

AirAsia Berhad is a Malaysian low-cost airline headquartered near Kuala Lumpur, Malaysia. It is the largest airline in Malaysia by fleet size and destinations. AirAsia Group operates scheduled domestic and international flights to more than 165 destinations spanning 25 countries. Its main hub is klia2, the low-cost carrier terminal at Kuala Lumpur International Airport (KLIA) in Sepang, Selangor, Malaysia. Its affiliate airlines Thai AirAsia, Indonesia AirAsia, Philippines AirAsia, and AirAsia India have hubs in Don Mueang International Airport, Soekarno–Hatta International Airport, Ninoy Aquino International Airport, and Kempegowda International Airport respectively, while its sister airline, AirAsia X, focuses on long-haul routes. AirAsia’s registered office is in Petaling Jaya, Selangor while its head office is at Kuala Lumpur International Airport.

AirAsia operates with the world’s lowest unit cost of US$0.023 per available seat kilometre (ASK) and a passenger breakeven 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 better than that of Malaysia Airlines and has an average aircraft utilisation rate of 13 hours a day. In 2007, The New York Times described the airline as a “pioneer” of low-cost travel in Asia. AirAsia is the sponsor of Malaysia national football team, Singapore national football team and Queens Park Rangers. AirAsia is also a former sponsor of Manchester United and Asia Red Tour.

AirAsia has consistently been named as the world’s best low-cost carrier for 9 years in a row in international travel and airline awards, including the latest award for 2017.