Misplaced Pages

#769230

97-567: AIX Connect , formerly known as AirAsia India , was an Indian low-cost airline headquartered in Bangalore (Bengaluru), Karnataka and a wholly-owned subsidiary of Air India Limited which in turn is owned by Tata Group . The airline was founded as a joint venture between Tata Sons and AirAsia Bhd and commenced operations in June 2014 with Bangalore as its primary operating base. From 2020 to 2022, AirAsia Bhd gradually disinvested its shares in

194-426: A cost of available seat mile (CASM) advantage in relation to the traditional and established, legacy airlines such as Trans World Airlines and American Airlines . Often this CASM advantage has been attributed solely to the lower labor costs of the newly hired and lower pay grade workers of new start-up carriers, such as ValuJet , Midway Airlines, and their like. However, these lower costs can also be attributed to

291-880: A domestic legacy airline and one or more foreign investors. By mid-2013, these new LCCs were operating at a unit cost of around 8 yen per seat-kilometer, compared to 10–11 yen per seat-kilometer for domestic legacy airlines. However, their unit cost was still much higher than the 3 yen per seat-kilometer for AirAsia in Malaysia , due to the higher cost of landing fees and personnel in Japan. By 2017, low-cost carriers had achieved market share of 57.2% in South Asia and 52.6% in Southeast Asia. Market share remained somewhat lower in Europe at 37.9% and North America at 32.7%. For

388-590: A five-year plan designed to strengthen the airline's presence across Asia. The strategy focused on enhancing connectivity between existing destinations and expanding into new markets such as Vietnam , Indonesia , Southern China and India . As part of this effort, Kota Kinabalu became a hub on 7 July 2006, followed by Kuching on 20 July 2006. These initiatives led to a significant increase in passenger traffic, with AirAsia carrying about 13.9 million passengers in 2007, compared to 5.7 million in 2006. AirAsia expanded its offerings further in 2009 by launching Redbox,

485-422: A flight on a full-service carrier. Most airlines charge additional taxes and fees on their tickets. Some low-cost airlines have been known to charge fees for the seemingly ridiculous, such as levying a credit card charge if credit card is the only payment method accepted. While tour and package operators have offered lower-priced, lower-frilled traveling for a large part of modern airline history, not until during

582-455: A former executive at Time Warner (now known as Warner Bros. Discovery ), saw an opportunity to transform AirAsia into a low-cost carrier, inspired by the success of airlines such as Southwest Airlines and Ryanair . This acquisition marked a turning point in AirAsia’s history, setting the stage for its reinvention as a budget airline . After the acquisition, Fernandes and his team rebranded

679-545: A gateway in northern Peninsular Malaysia , Kota Kinabalu International Airport and Kuching International Airport facilitating travel in Malaysian Borneo and Senai International Airport in Johor Bahru , which serves the southern region of Peninsular Malaysia and provides convenient access to and from Singapore . Together, these hubs play a vital role in supporting AirAsia’s extensive network, ensuring that

776-544: A greater number of add-on fees. In the US market, Allegiant Air , Frontier Airlines , Spirit Airlines , and Sun Country Airlines are considered to be ULCCs. In Europe, Ryanair and Wizz Air are the most prominent ULCCs. In Asia, AirAsia and Lion Air are the most prominent ULCCs. The pricing policy of the low-cost carriers is usually very dynamic as befits their business model, with frequent discounts and tickets in promotion. Like other carriers, however, even if

873-552: A higher age limit on unaccompanied minors than full-service carriers. Often these airlines do not offer connecting tickets, since the airline will have to pay for ground crew to transfer luggage. A customer may create a connection manually by purchasing two separate tickets, but these are considered separate contracts, and the passenger bears the risk if a delayed inbound flight causes a missed connection. When most countries had national monopolies, crews could negotiate pay raises and good pension benefits (something that costs money for

970-687: A joint venture agreement to establish AirAsia Cambodia, with AirAsia owning majority of the airline. The airline commenced operations on 2 May 2024. AirAsia India was the Indian affiliate of AirAsia. The airline was announced as a joint venture between AirAsia, Arun Bhatia, and Tata Sons on 19 February 2013. It commenced operations on 12 June 2014. The airline is headquartered in Chennai , with its primary hub at Kempegowda International Airport , Bangalore . In November 2020, AirAsia reviewing its India operations run in partnership with Tata Sons signalling

1067-596: A key global aviation hub . As part of this expansion strategy, the airline aims to increase its fleet size from 79 to 92 aircraft by the end of 2024, while boosting daily flights from 230 to 258. Additionally, AirAsia plans to add eight new destinations to its network, bringing the total number of destinations to 106, up from 98. The airline’s focus on strengthening regional connectivity involves opening new routes to secondary airports across key regions in Asia, enhancing accessibility for both travelers and businesses. AirAsia

SECTION 10

#1732773120770

1164-473: A key player in the global aviation industry. AirAsia was established on December 20, 1993, by DRB-HICOM , a Malaysian government-owned conglomerate , as a full-service carrier. The airline commenced operations on November 18, 1996, with its inaugural flight from Kuala Lumpur to Langkawi , utilising a Boeing 737-300 . In its early years, AirAsia faced challenges such as high operating costs and competition from established carriers like Malaysia Airlines . By

1261-602: A key role in AirAsia’s expansion strategy. In 2003, Thai AirAsia was founded, and in 2005, Indonesia AirAsia was launched. These affiliates allowed the airline to enter new markets, strengthening its regional presence across Southeast Asia. By the end of 2006, AirAsia’s fleet had seen substantial growth, consisting of 35 Boeing 737-300s and eight Airbus A320s . Additionally, the airline placed orders for 100 more Airbus A320 aircraft, which helped increase its capacity and frequency of flights, supporting its expanding network. In late 2006, AirAsia's CEO Tony Fernandes introduced

1358-795: A large-scale reduction of its fleet of Boeing 737 aircraft and operations. In March 2017, International Airlines Group established Level , a long-haul low-cost virtual airline based in Barcelona Airport and serving destinations in North and South America. Long-haul low-cost carriers are emerging on the transatlantic flights market with 545,000 seats offered over 60 city pairs in September 2017 (a 66% growth over one year), compared to 652,000 seats over 96 pairs for Leisure airlines and 8,798,000 seats over 357 pairs for mainline carriers . Former American Airlines CEO Bob Crandall thinks

1455-606: A leader in in-flight services . Between 2015 and 2019, AirAsia continued its expansion strategy, both by launching new routes and growing its affiliate network. Notably, the airline established Philippines AirAsia in 2012 and AirAsia India in 2013. However, despite several attempts, AirAsia's plans to enter the Chinese and Vietnamese market with its own airline were eventually abandoned after facing multiple setbacks. During this period, AirAsia continued to earn accolades for its service quality, further solidifying its position as

1552-822: A leading low-cost airline. The airline was awarded the title of World's Best Low-Cost Airline by Skytrax for an impressive eleven consecutive years, from 2009 to 2019. The COVID-19 pandemic had a profound impact on the global aviation industry , and AirAsia was no exception. In March 2020, the airline suspended most of its flights due to travel restrictions , resulting in significant revenue losses. This unprecedented situation forced AirAsia to rapidly adapt in order to survive. The airline grounded its fleet and implemented various cost-cutting measures, including layoffs and salary reductions for employees. AirAsia also focused on maintaining liquidity by securing loans and receiving government support. During this challenging period, AirAsia accelerated its digital transformation. In late 2020,

1649-519: A minimum set of equipment, further reducing costs of acquisition and maintenance, as well as keeping the weight of the aircraft lower and thus saving fuel. Depending on the low-cost airline seats do not recline and do not have rear pockets, to reduce cleaning and maintenance costs. Others have no window shades. Pilot conveniences, such as ACARS , may be excluded. Often, no in-flight entertainment systems are made available, though many US low-cost carriers do offer satellite television or radio in-flight. It

1746-460: A page from the mainline, major, or legacy carriers' desire to reduce costs in all ways possible in regards regional route networks by outsourcing regional operations to the lowest expense airline bidder capable of operating regional aircraft, a new generation of low-cost airlines (in name only) soon evolved in the US with varying levels of success. Among these varieties of low-cost and discount operators were noteworthy starts-ups that managed to get off

1843-687: A possible exit from the country. The airline was later sold to Tata Sons in 2022, making it a wholly-owned subsidiary of Air India Limited . The airline merged with Air India Express in 2023. AirAsia Japan was the Japanese low-cost airline affiliate of AirAsia based in Nagoya and formerly in Narita . The airline was first announced as a joint venture between AirAsia and All Nippon Airways in 2011. It flew its first flight in August 2012. The joint venture

1940-472: A setback for AirAsia's ambitions to strengthen its domestic market . Despite this, the airline remained committed to its strategy of expanding its regional and international networks. In 2014, AirAsia made another significant advancement by becoming the first Malaysian airline to offer onboard Wi-Fi services through its subsidiary, Tune Box. This innovation responded to the increasing demand for connectivity among travelers, reinforcing AirAsia's reputation as

2037-724: A significant recovery from its previous financial challenges. The airline focused on point-to-point routes and utilised secondary airports, which helped lower operational costs and improve overall efficiency. Between 2003 and 2006, AirAsia embarked on a rapid expansion of its routes and infrastructure. In December 2003, the airline established a second hub at Senai International Airport in Johor Bahru , expanding its operational reach. AirAsia also began its international operations with flights to Phuket in December 2003, followed by services to Bangkok in February 2004. By April 2005,

SECTION 20

#1732773120770

2134-468: A simpler fare scheme, such as selling only one-way tickets. Typically fares increase as the plane fills up, which rewards early reservations. In Europe (and early in Southwest's history) luggage is not transferred from one flight to another, even if both flights are with the same airline. This saves costs and is thought to encourage passengers to take direct flights. Tickets are not sold with transfers, so

2231-449: A single aircraft type, so that cabin and ground crew will only have to be trained to work on one type of aircraft. This is also beneficial from a maintenance standpoint as spare parts and mechanics will only be dedicated to one type of aircraft. These airlines tend to operate short-haul flights that suit the range of narrow-body (single aisle) planes. As of lately, however, there is also a rise in demand for long range low-cost flights and

2328-755: A week, and Melbourne thrice weekly. On 11 March 2009, AirAsia X started its first low-cost long-haul service into Europe, to London Stansted . The daily flights are operated by two leased Airbus A340 -300s. A one-way economy-class ticket often costs £150, and the premium-class one-way often costs £350. On 12 January 2012, AirAsia announced that it would be suspending services to London on 1 April 2012. Low-cost European airline, Norwegian Air Shuttle , started long-haul low-cost operations in May 2013 under their Norwegian Long Haul arm. Norwegian initially operated flights to Bangkok and New York from Scandinavia using leased Airbus A340 aircraft, switching to new Boeing 787s in

2425-474: Is a Malaysian multinational low-cost airline headquartered near Kuala Lumpur , Malaysia. Established in 1993 and commencing operations in 1996, the airline is the largest in Malaysia by fleet size and destinations. It operates scheduled domestic and international flights to over 166 destinations across 25 countries. Its primary hub is Kuala Lumpur International Airport (KLIA), where it utilizes Terminal 2,

2522-575: Is also becoming a popular approach to install LCD monitors onto the aircraft and broadcast advertisements on them, coupled with the traditional route–altitude–speed information. Some allow priority boarding for an extra fee instead of reserved seating, and some allow reserving a seat in an emergency exit row (for longer leg room) at an extra cost. Like the major carriers, many low-cost carriers develop one or more bases to maximize destination coverage and defend their market. Many do not operate traditional hubs , but rather focus cities . Airlines often offer

2619-486: Is also concentrating on its key markets, particularly China and India. In response to Malaysia’s decision to grant visa-free entry to travelers from these two countries starting in December 2023, the airline has significantly ramped up its services. By early 2024, AirAsia plans to operate approximately 230 weekly flights between Malaysia, China and India. Looking beyond the immediate future, AirAsia’s long-term vision focuses on expanding its reach to strategic markets across

2716-631: 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. In May 2017, AirAsia planned to open a subsidiary company in Cambodia to handle an increase of tourists from Malaysia visiting to the Cambodian cities of Phnom Penh , Siem Reap and Sihanoukville . On 9 December 2022, AirAsia and Sivilai Asia signed

2813-487: Is located at Kuala Lumpur International Airport (KLIA) , where it operates a substantial portion of its flights. AirAsia operates a broad domestic network within Malaysia, connecting numerous cities and regional hubs across the country. Key destinations include major cities like Kuala Lumpur, Penang, Kota Kinabalu and Kuching. Internationally , AirAsia operates numerous routes across Southeast Asia and beyond, offering destinations in countries such as Thailand, Indonesia,

2910-628: Is the Red Quarters (RedQ) at Kuala Lumpur International Airport in Sepang , Selangor . This facility also serves as the company's registered office . The airline has moved its head office to a new 56,985.1 m (613,383 sq ft), RM140mil facility constructed at klia2 on 7 November 2016. Until the new head office opened, the airline's head office was located in the KLIA LCCT. The new klia2 head office has been scheduled to open at

3007-400: Is the reduction of cost and reduced overall fares compared to legacy carriers. Traditional airlines have also reduced their cost using several of these practices. Most low-cost carriers operate aircraft configured with a single passenger class, and some low-cost carriers choose to operate more than one type and configure their aircraft with more than one passenger class, but most operate just

AIX Connect - Misplaced Pages Continue

3104-420: Is well known for using fuel hedging programs to reduce its overall fuel costs. Check-in at the gate of luggage requires fees, as it requires addition to the weight calculation and last-minute baggage handling. Online check-in is becoming common, again in the interest of avoiding personnel costs. Where permissible, some airlines have a disinclination to handle Special Service passengers, for instance by placing

3201-460: Is why Ryanair flies to Gatwick Airport , Luton Airport , and Stansted Airport in the London area and how easyJet is able to fly to Paris-Charles de Gaulle , and Amsterdam Airport Schiphol . In London's case however, low-cost carriers would not be able to use Heathrow as the airport is running at near capacity, so there is no room to build a base. The airlines tend to offload, service and re-load

3298-755: The Competition Commission of India (CCI) to merge AirAsia India with Air India Limited in April 2022, which was granted on 14 June 2022. On 2 November 2022, AirAsia Berhad sold the remaining 16.33% stake to Tata Sons. However, the AirAsia brand could still be used for twelve months. AirAsia India added the gender-neutral honorific Mx as a third option for passengers booking tickets from June 2022. On 19 May 2023, AIX Connect operated India's first commercial flight using indigenously produced sustainable aviation fuel from Pune to Delhi . In June 2022,

3395-519: The DGCA issued an Air Operator Permit to the company. On 30 May 2014, the airline announced the shifting of its base to Bangalore and its first flight from there to Goa. AirAsia operated its maiden flight on 12 June 2014. In June 2015, the airline made Indira Gandhi International Airport, Delhi its secondary hub for North Indian operations. In August 2015, Tata Sons increased its stake to 40.06% from 30% earlier by injecting fresh equity while Telestra's share

3492-855: The European Commission , the LCCs market share (44.8%) exceeded legacy carriers (42.4%) in 2012: between 2002 and 2017, LCC share of international seat capacity rose from 23% to 57% in the UK, from 10% to 55% in Italy and from 9% to 56% in Spain but have still room for growth in domestic seat-capacity In France with 19% and in Germany with 25% in 2017, compared with 66% in the UK, 48% in Spain and 47% in Italy. By early 2019, there were more than 100 LCCs operating 6,000 aircraft, doubled from 2,900 aircraft at

3589-632: The Government of India allowing a foreign direct investment of up to 49% in airlines, AirAsia Berhad applied to the Indian Foreign Investment Promotion Board (FIPB) seeking approval for commencing its operations in India. In March 2013, AirAsia announced that it would establish a joint venture with Tata Sons and Telestra Tradeplace with Tata Sons representing the airline with two non-executive directors in

3686-891: The UK and Canada for £89. In August 2006, Zoom announced a UK subsidiary to offer low-cost long-haul flights to the United States and India, but suspended its operations from 28 August 2008 due to high fuel prices inducing financial problems. In 2005, Emirates ' Tim Clark viewed long-haul low-cost as inevitable, flights could be operated on 760 seats all-economy Airbus A380s , or 870 for an hypothetical A380 stretch. Since 2005, Australia's Jetstar Airways operates international flights, starting with Christchurch , New Zealand. In late 2006, others followed from Sydney , Melbourne and Brisbane , to popular tourist destinations within 10 hours like Honolulu , Japan, Vietnam , Thailand and Malaysia . With new aircraft deliveries, it hopes to fly to

3783-639: The World Travel Awards 2024 for World’s Leading Low-Cost Airline for the 12th consecutive year and World’s Leading Low-Cost Airline Cabin Crew for the eighth time. The airline has been instrumental in establishing Kuala Lumpur International Airport as a leading low-cost carrier hub. The 2024 OAG Megahubs Index placed KLIA as the world’s second-most connected airport after London-Heathrow , offering more than 14,500 potential low-cost connections. AirAsia accounts for 43% of all flights at KLIA and 74% of

3880-1166: The airline industry referring to airlines with a lower operating cost structure than their competitors. The term is often applied to any carrier with low ticket prices and limited services regardless of their operating models. Low-cost carriers should not be confused with regional airlines that operate short-haul flights without service, or with full-service airlines offering some reduced fares. Some airlines advertise themselves as low-cost while maintaining products usually associated with traditional mainline carriers’ services. These products include preferred or assigned seating , catering, differentiated premium cabins , satellite or ground-based Wi-Fi internet, and in-flight audio and video entertainment . The term ultra low-cost carrier ( ULCC ) has been used, particularly in North America and Europe to refer to carriers that do not provide these services and amenities. The low-cost carrier business model practices vary widely. Some practices are more common in certain regions, while others are generally universal. The common theme among all low-cost carriers

3977-416: The 'Air India Express' branding, effectively allowing the airline to operate, market, and distribute their flights as Air India Express. Air India entered into a codeshare pact with AIX Connect in September 2023, covering more than 100 flights a day on 21 routes. The aircraft of AIX Connect were transferred to Air India Express Air Operator Certificate (AOC). In October 2023, VT-ATD, an Airbus A320neo became

AIX Connect - Misplaced Pages Continue

4074-846: The A321neo variant. With this order, the total number of orders that AirAsia had placed for the Airbus A320 family climbed to 592, reaffirming the carrier's position also as the largest airline customer for the Airbus single aisle product line. However, as a consequence of the COVID-19 pandemic on aviation, the orders for the new A320 family of aircraft were reworked by mutual agreement between AirAsia and Airbus in October 2021, with deliveries now scheduled to extend to 2035, among other undisclosed changes in purchase terms. AirAsia formerly operated

4171-680: The CEO of the airline. In June 2018, Amar Abrol reportedly quit and in October 2018, AirAsia India announced that Sunil Bhaskaran had been appointed managing director and CEO of the airline. Former chairman of the Tata Group Cyrus Mistry alleged that there were corporate governance lapses between the two joint venture partners. AIX Connect (formerly known as AirAsia India ) operated the following all-Airbus fleet: [REDACTED] Media related to AirAsia India at Wikimedia Commons Low-cost airline The term originated within

4268-631: The Competition Commission of India approved Air India's proposal to acquire the 16.33% stake of Malaysian partner AirAsia Berhad in AirAsia India. Subsequently, Air India signed agreements in November 2022 to acquire AirAsia India and announced its plans to merge the carrier with Air India Express . By an agreement with AirAsia Bhd, after its sale to the Tatas, the airline had to stop using the AirAsia branding by November 2023. Hence,

4365-530: The FIPB accepted on 6 March. AirAsia India was established on 28 March 2013 and became the first foreign airline to set up a subsidiary in India. In April, the airline started recruiting candidates for pilots and cabin crew. As the final procedure to obtain Air Operator Permit, a proving flight was conducted on 1 and 2 May 2014 flying from Chennai to Kochi , Bangalore and Kolkata . On 7 May 2014,

4462-531: The Farnborough International Air Show in 2016, AirAsia ordered 100 A321neos at an estimated cost of US$ 12.6 Billion dollars at list prices. AirAsia planned to fly these larger aircraft to airports that had infrastructure constraints. AirAsia received its first A320neo in September 2016. At the 2019 Farnborough Air Show, AirAsia further increased its orders for A320 aircraft, in the process also becoming Airbus' largest customer for

4559-478: The Irish Aviation Authority. As supply increases, this sort of differentiation by brand is an important criteria for the future success of low-cost carriers, since many experts believe price competition alone is not enough, given the number of carriers. As the number of low-cost carriers has grown, these airlines have begun to compete with one another in addition to the traditional carriers. In

4656-625: The Middle East and 12% within Africa. A long-haul low-cost operation would be harder to differentiate from a conventional airline as there are few cost savings possibilities, while the seat costs would have to be lower than the competition. Long-haul aircraft scheduling is often determined by time zone constraints, like leaving the US East Coast in the evening and arriving in Europe

4753-422: The Middle East. In 2007, The New York Times described AirAsia as a pioneer of low-cost travel in Asia. The airline is known for its innovative approaches, including introducing ticketless travel through online bookings in 2002. AirAsia has earned numerous accolades, including being named the world’s best low-cost carrier by Skytrax for 15 consecutive years, with the latest recognition in 2024. It also won

4850-502: The Pacific and East Asia , with further ambitions to enter Africa, Europe and North America by 2030. This global expansion strategy underscores AirAsia's aim to enhance its position as a leading low-cost carrier, connecting more regions and catering to a broader, international customer base. AirAsia has rapidly expanded its domestic and international network since its rebranding as a low-cost carrier in 2001. The airline's primary hub

4947-573: The Philippines, Singapore and mainland China. The airline has also expanded into other regions, including India and Australia. This broad network has enabled AirAsia to become a significant player in the regional and international aviation markets, catering to both business and leisure travelers. In addition to its primary operations at KLIA’s low-cost terminal, AirAsia (Malaysia) has developed secondary hubs to enhance regional connectivity. These hubs include Penang International Airport which acts as

SECTION 50

#1732773120770

5044-399: The US, airlines have responded by introducing variations to the model. In Europe, the emphasis has remained on reducing costs and no-frills service. A secondary term ultra low-cost carrier ( ULCC ) has been used to differentiate some low-cost airlines whose model deviates further from that of a standard low-cost carrier, with ultra low-cost carriers having minimal inclusions in the fare and

5141-440: The advertised base prices are very low, charges and taxes are typically not mentioned. With some airlines, some flights are advertised as free (plus applicable taxes, fees and charges). Depending on the airline, perhaps as many (or as few) as ten percent of the seats on any flight are offered at the lowest price and are the first to sell. The prices steadily rise thereafter to a point where they can be comparable or more expensive than

5238-673: The aircraft (turnaround) in shorter time periods and do not wait for late passengers, allowing maximum utilization of aircraft. Low-cost carriers generate ancillary revenue from a variety of activities, such as à la carte features and commission-based products. Some airlines may charge a fee for a pillow or blanket or for carry-on baggage. In Europe, it is common for each and every convenience and service to have an additional charge. Low-cost carriers intend to be low-cost, so in many cases employees work multiple roles. At some airlines flight attendants also work as gate agents or assume other roles, thereby limiting personnel costs. Southwest Airlines

5335-447: The airline as a low-cost carrier on January 15, 2002. This strategic shift involved adopting a no-frills service model, enabling AirAsia to offer fares that were significantly lower than those of its competitors, particularly Malaysia Airlines. Promotional fares began as low as MYR 10 (approximately US$ 2.63), which attracted a large number of passengers . In its first year under the low-cost model, AirAsia achieved profitability, marking

5432-676: The airline can avoid responsibility for passengers' connections in the event of a delay. Low-cost carriers often have a sparse schedule with one flight per day and route, so it would be hard to find an alternative for a missed connection. Modern US-based low-cost carriers generally transfer baggage for continuing flights, as well as transferring baggage to other airlines. Many airlines opt to have passengers board via stairs, since jetways generally cost more to lease. Often, low-cost carriers fly to smaller, less congested secondary airports and/or fly to airports during off-peak hours to avoid air traffic delays and take advantage of lower landing fees . This

5529-520: The airline can efficiently serve its domestic and international markets. As of July 2024 , AirAsia Malaysia operates the following aircraft: Previously operating the Boeing 737-300 , AirAsia has now completely converted to the Airbus A320 family . In June 2011, AirAsia ordered 200 Airbus A320neos at the Paris Air Show . The planes were originally due to become available in 2015, and

5626-629: The airline changed its name to AIX Connect in December 2022. On 27 March 2023, Air India integrated the reservations system and customer interface of its two low-cost subsidiary airlines - Air India Express and AirAsia India, in a move to consolidate its airline entities. The process largely involved Air India Express migrating to the systems used by AirAsia India. Passengers were able to make and manage bookings, and check-in to AirAsia India and Air India Express domestic and international flights, on an all-new integrated website. In July 2023, AIX Connect received regulatory approvals to operate its flights under

5723-532: The airline further broadened its network by adding Manila and Xiamen to its destinations. AirAsia was also quick to embrace technological advancements, becoming a pioneer in the region. In 2002, the airline introduced ticketless travel via online bookings , becoming the first airline in Asia to do so. This innovation revolutionized ticket purchasing. Additionally, the airline launched SMS booking services, allowing customers to book flights directly from their mobile phones. The growth of affiliate airlines played

5820-1086: The airline launched the Airasia Super App, diversifying its business model beyond air travel to include services such as food delivery , e-commerce and logistics. This move was aimed at adapting to changing consumer behaviors and maintaining a steady revenue stream in the face of reduced air travel. As vaccination rates increased and travel restrictions began to ease in 2021, AirAsia gradually resumed its operations. The airline restarted domestic flights within Malaysia in April 2021, focusing initially on rebuilding its domestic network before reintroducing international routes. By late 2022, AirAsia began reinstating international routes, prioritizing key markets within ASEAN and beyond. The airline targeted popular destinations in Thailand, Indonesia and India to restore its pre-pandemic network. AirAsia's recovery continued throughout 2022, as demand for travel rebounded. By

5917-573: The airlines only in the long term). During this period, most passengers were business travellers who paid high fares that covered these costs. After deregulation, which led to lower fares, many airlines remained bound to these salary agreements and pensions, whereas new low-cost carriers employed new staff with lower salaries, especially for cabin crew, keeping personnel costs low and allowing for competitive fares. In some cases airlines have gone bankrupt (e.g., Alitalia , Sabena , and Swissair ), and new airlines replaced them. Traditional carriers followed

SECTION 60

#1732773120770

6014-519: The airport’s low-cost carrier capacity, operating 112 international and 14 domestic routes. Beyond aviation, AirAsia has sponsored various sports teams, including the Malaysia national football team , Singapore national football team , Jamshedpur FC and Queens Park Rangers in England. The airline has also supported major events, such as the Asia leg of Taylor Swift 's Red Tour . With its extensive network and strategic partnerships, AirAsia remains

6111-553: The availability of next generation planes that make long haul routes more feasible for LCCs. In the past, low-cost carriers tended to operate older aircraft purchased second-hand, such as the McDonnell Douglas DC-9 and older models of the Boeing 737 . Since 2000, fleets generally consist of the newest aircraft, commonly the Airbus A320 family and Boeing 737. Although buying new aircraft is usually more expensive than second-hand, new planes are cheaper to operate in

6208-485: The board. The airline planned to operate with the world's lowest unit cost of ₹ 1.25 (1.5¢ US) per available seat kilometre and a passenger break-even load factor of 52%. It also planned to hedge 100% of its fuel requirements for the first three years and to achieve an aircraft turnaround time of 25 minutes. AirAsia planned to begin operations in various tier 2 and tier 3 cities with Chennai International Airport as its main operating base. According to KPMG ,

6305-592: The continental US and Europe . In April 2006, the industry magazine Airline Business analysed the potential for low-cost long-haul service and concluded that a number of Asian carriers, including AirAsia, were closest to making such a model work. On 26 October 2006, Oasis Hong Kong Airlines started flying from Hong Kong to London-Gatwick . The lowest prices for flights between Hong Kong to London could be as low at £75 (approximately US$ 150) per leg (not including taxes and other charges) for economy class and £470 (approximately US$ 940) per leg for business class for

6402-672: The creation of a new entity, AirAsia Group Berhad, was proposed, but by August 2024, the decision was made to directly acquire AirAsia and AAAGL instead. This acquisition, expected to be finalized by the end of 2024, is projected to provide access to over 200 aircraft and 361 future aircraft orders from Capital A's aviation portfolio, integrating narrow-body and wide-body aircraft into a unified fleet. This enhanced fleet aims to improve operational efficiency, expand service offerings and bolster AirAsia’s competitive position across key market segments. In late 2024, AirAsia outlined ambitious plans to position Kuala Lumpur International Airport as

6499-409: The deal was one of the largest ever for commercial aircraft in a single order. The deal was worth US$ 18 billion at list prices, although AirAsia will have obtained a substantial discount from those prices. The deal makes AirAsia Airbus' single biggest customer. On 13 December 2012, AirAsia placed an order for an additional 100 Airbus A320 jets, splitting it between 64 A320neo and 36 A320ceo. At

6596-632: The end of Skytrain . In late 2007, Cebu Pacific , the Philippines ' largest low-cost carrier, announced non-stop flights from the Philippines to the United States West Coast and other US cities from mid-2009. The airline also intends to launch low-cost service to Middle East , where around a million Filipinos are based, and in Europe. Flights to Dubai — its first long-haul destination — started in 2013. As of September 2024, it operates flights to Dubai daily, to Sydney four times

6693-558: The end of 2009, while seat capacity reached nearly 1.7 billion in 2018. LCCs accounted for 33% of intra-regional seat capacity in 2018 with 1.564 billion, up from 25% in 2008 with 753 million, and 13% of seat capacity between regions with 101 million, up from 6% in 2009 with 26 million. In 2018, penetration rate was 41% of seats within Europe, 36% within Latin America, 32% within North America, 29% within Asia Pacific, 17% within

6790-716: The end of 2015. The former registered office was on level 13 of the Menara Prima Tower B in Petaling Jaya . RedQ 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

6887-444: The end of the year, the airline had carried approximately 9.95 million passengers. In 2023, AirAsia significantly increased its capacity, with a nine-fold increase in available seats compared to the previous year. This expansion was driven by the resumption of routes and the addition of new aircraft to its fleet. Additionally, the airline expanded its international network by reintroducing routes between Thailand and China, capitalizing on

6984-542: The first to transfer into the Air India Express fleet after completing the DGCA ’s CAP3100 process. On 1 October 2024, the merger of AIX Connect and Air India Express was declared to be complete. AirAsia India was headquartered in Bangalore, India. Prior to the airline's formation, Tony Fernandes , founder of AirAsia group, announced that he would like Ratan Tata to be the chairman of the airline; however

7081-502: The following aircraft: AirAsia offers "Santan" menu, with options to buy on board offering food, drinks, merchandise and duty free for purchase. Pre-purchase of "Santan" meals is available at a lower price than on board, and with additional options AirAsia is accredited by the KL Syariah Index of Bursa Malaysia, and in accordance with Shariah principles, it does not serve alcohol or pork . However, this applies only to

7178-561: The following morning, and the longer flight times mean there is less scope to increase aircraft utilization as in short-haul. The business model is financially risky , and many companies have entered bankruptcy , like Laker Airways . In 2004, Irish Aer Lingus maintains a full service on transatlantic flights while it lowered its prices to compete with Ryanair on short haul. Late in 2004, Oasis Hong Kong Airlines offered London to Hong Kong flights from £199, and Canadian Zoom Airlines started selling transatlantic flights between

7275-525: The global aviation downturn after the September 11 attacks . By September 2001, AirAsia’s debt had risen to around US$ 11 million, leaving the company on the brink of collapse . On September 5, 2001, Tony Fernandes and Kamarudin Meranun acquired AirAsia through their company Tune Air Sdn Bhd for a nominal sum of one ringgit (approximately US$ 0.26), taking on its considerable liabilities. Fernandes,

7372-401: The ground by using the larger aircraft services of established charter airlines. Among this group were the virtual airlines ; Direct Air , PeoplExpress , Western , and those that never began service such as JetAmerica . In Japan, low-cost airlines made major inroads into the market in 2012 when Peach , Jetstar Japan and AirAsia Japan began operations, each with financial sponsorship by

7469-430: The growing demand from travelers eager to visit these popular destinations. On 8 January 2024, AirAsia X signed a non-binding agreement with Capital A to fully acquire AirAsia Bhd and AirAsia Aviation Group Limited (AAAGL), which oversees AirAsia’s affiliates outside Malaysia. The plan involves merging AirAsia Malaysia, Indonesia AirAsia , Philippines AirAsia and AirAsia Cambodia under the AirAsia X brand. Initially,

7566-551: The introduction of AirAsia was expected to cause another price war , ultimately leading to an increase in air traffic and some consolidation in the Indian aviation sector. AirAsia initially invested an amount of US$ 50 million and in preparation for its operations in India, it struck deals with online and offline travel agents. On 3 March 2013, the FIPB officially permitted AirAsia to rent or lease aircraft and to carry cargo on its scheduled flights. The airline then applied for permission to schedule aircraft and transport passengers, which

7663-429: The joint venture and sold them to Tata Sons. In December 2022, after the entire shares of AirAsia India was acquired by Tata Sons, the airline was renamed AIX Connect ahead of its merger with Air India Express . The AirAsia India brand was retired on 31 October 2023, and the airline started operating flights for Air India Express. On 1 October 2024, AIX Connect was merged into Air India Express. In February 2013, with

7760-422: The late 1990s, AirAsia had accumulated substantial debts, amounting to approximately MYR 40 million (around US$ 10.5 million). Efforts to stabilise the airline included route expansion, leasing aircraft for Hajj charters and internal discussions about potential management changes. However, these initiatives were insufficient to address the airline's structural issues. The situation deteriorated further following

7857-401: The latter refused, though he later consented to be the chief advisor to the AirAsia India management board. On 15 May 2013, AirAsia India appointed management consultant Mittu Chandilya as CEO. A month later, on 17 June, S. Ramadorai , the non-executive vice-chairman of Tata Consultancy Services , was appointed as the chairman of the airline. In April 2016, Amar Abrol replaced Mittu Chandilya as

7954-712: The legacy carriers will force Long-haul LCCS to lose too much money and will continue to dominate. While Asian carriers like AirAsia X, Scoot , Cebu Pacific and Jetstar Airways are successful, the October 2018 demise of Primera Air and its $ 99 transatlantic flights illustrates the difficulties of the model, as the US World Airways will be relaunched in 2019. Norse Atlantic Airways was founded in 2021 and commenced operations in 2022, operating transatlantic flights as well as flights to Thailand beginning in 2023. AirAsia Berhad Capital A Berhad ( MYX : 5099 ), operating as AirAsia (stylized as airasia )

8051-712: The less complex aircraft fleets and route networks with which these new carriers began operations, in addition to their reduced labor costs. To combat the new round of low-cost and start-up entrants into the very competitive and deregulated United States airline industry, the mainline major carriers and network legacy carriers strategically developed no-frills divisions within the main airlines brand and corporate structures. Among these were Continental Lite , Delta Express , MetroJet , Shuttle by United , Song , and Ted . However, most of these "airlines within an airline" were short-lived and quickly disposed-of when economic rationalization or competitive pressures subsided. Taking

8148-485: The long run since they are extremely efficient in terms of fuel, training, maintenance, and crew costs per passenger. In 2013, ch-aviation published a study about the fleet strategy of low-cost carriers. They stated that major LCCs that order aircraft in large numbers get large discounts for doing so, and due to this they can sell their aircraft just a few years after delivery at a price high enough to keep their operating costs relatively low. Aircraft often operate with

8245-494: The low-cost carrier terminal. AirAsia has a network of affiliate airlines catering to regional markets, including Thai AirAsia , Indonesia AirAsia , Philippines AirAsia and AirAsia Cambodia , which have bases in cities including Bangkok , Jakarta , Manila and Phnom Penh . AirAsia X , the airline’s long-haul subsidiary, primarily serves long-distance routes. Together, these carriers form an extensive network connecting Southeast Asia with other parts of Asia, Australia and

8342-666: The low-cost carriers by enabling web check-in, encouraging machine check-in at the airport, and generally reducing ground personnel cost. The number of crew members follow international conventions that require one flight attendant per 50 passenger seats and two pilots. However, carriers can save money by reducing the amount of ground crew. Carriers hire pilots through third-party agencies based in low-tax countries without benefits for sick pay, pensions or health insurance. Traditional carriers have also started to try this, including starting their own low-tax agencies. These agencies can easily find less experienced co-pilots and cabin crew, as

8439-450: The operational efficiency of the airline by monitoring and helping manage aircraft turnaround between flights with data analytics in real-time. On 29 December 2020, AirAsia Berhad announced that it would sell a 32.67% stake in AirAsia India to Tata Sons for $ 37.7 million, including a provision to sell the remaining 16.33% stake for $ 18.8 million. Tata Sons acquired Air India Limited on 8 October 2021. The Tata Group requested approval from

8536-424: The post– Vietnam War era did this business model escalate. Through various ticket consolidators, charter airlines , and innovators in lower-frills flying, such as Channel Airways and Court Line , the traveling public had been conditioned to want to travel to new and increasingly further away and exotic locations on vacation, rather than short-haul trips to nearby beach resorts. The world's first low-cost airline

8633-868: The profession is popular, but there are problems for low-cost carriers to recruit and keep captains who have to be experienced. At IATA , a LCC operation is defined as including the following characteristics, at least to some degree: While low-cost airlines differ in service offerings, by definition they feature most of the following: Not every low-cost carrier implements all of the above points. For example, some try to differentiate themselves with allocated seating, while others operate more than one aircraft type, still others have relatively high operating costs but lower fares. JetBlue , for instance, has in-flight entertainment in every passenger seat. Other airlines are limited on what points they can implement based on local laws. For example, Irish low cost airlines cannot remove window blinds from its aircraft, as they are required by

8730-507: The regional AirAsia group flights, and not to the AirAsia X flights, which do sell wine and beer on board. AirAsia is taking the first steps towards starting its own frequent-flyer programme . The airline has signed an agreement to start a joint venture with financial services firm Tune Money to launch a programme called "BIG". Under this programme, it will issue loyalty points to AirAsia customers and third-party merchants. Points can then be used to redeem AirAsia flights. The head office

8827-498: The same route. From 28 June 2007, a second long-haul route to Vancouver, British Columbia , was started. The company ceased operations on 9 April 2008, after over a billion Hong Kong dollars in losses. On 2 November 2007, AirAsia X , a subsidiary of AirAsia and Virgin Group flew its inaugural flight from Kuala Lumpur , Malaysia, to Gold Coast , Australia. AirAsia X claims that it is the first true low-cost long-haul carrier since

8924-403: The second half of 2013 after Boeing resumed deliveries following extensive problems and delays. It served direct routes from the United States ( Los Angeles , Fort Lauderdale , New York City , Oakland-San Francisco , Boston and Orlando ) into Scandinavia ( Oslo , Stockholm , Copenhagen ). In January 2021 Norwegian announced the immediate cessation of their long-haul operations, along with

9021-403: The world’s first low-cost courier service . The same year, the airline began flights from Penang to Hong Kong , adding Penang as another hub in its network. In 2011, AirAsia entered into a controversial share swap agreement with Malaysia Airlines, aiming to reduce competition between the two carriers. However, due to regulatory concerns, this partnership was dissolved in early 2012, marking

9118-523: Was Bill Clinton , later US President. The first airline offering no-frills transatlantic service was Freddie Laker 's Laker Airways , which operated its famous "Skytrain" service between London and New York City during the late 1970s. The service was suspended after Laker's competitors, British Airways and Pan Am , were able to price Skytrain out of the market. In the United States, airline carriers such as Midway Airlines and America West Airlines , which commenced operations after 1978, soon realized

9215-494: Was Pacific Southwest Airlines , which started intrastate flights connecting Southern and Northern California on 6 May 1949. PSA's light-hearted atmosphere and efficient operations were a runaway success early on, and inspired a number of low-cost start-ups across the United States, beginning in the mid-1960s. Herb Kelleher studied the success of PSA, and copied their culture closely when he established Southwest Airlines in 1971. The first airline to offer cheaper transatlantic fares

9312-499: Was Icelandic airline Loftleiðir in 1964, often referred to as "the Hippie Airline". Many young Americans travelled to Europe after graduation, to experience the "old-world culture", and they were more concerned with getting there cheaply than comfortably or even exactly on time. Loftleiðir were not famous for speed or punctuality, but flying with the company became a sort of rite of passage for those young "hippies", one of whom

9409-491: Was reduced to 10% from 20%. As of July 2019, AirAsia India was the fifth largest low-cost carrier in India, behind IndiGo , SpiceJet , Star Air (India) , and GoAir , with a market share of 7.1%. In January 2018, then-managing director and chief executive Amar Abrol announced plans for the company to expect a fleet of 21 aircraft by the year's end, making it eligible to operate overseas flights. In July 2020, AirAsia India launched an aviation analytics app that would help enhance

#769230