1.1 Company Background
AirAsia Berhad, which is also known as AirAsia, is an airline company that provides air transportation service. The airline was established in 1993 and started operation 18 November 1996. A government-owned conglomerate DRB-Hicom originally founded it. They were having heavily indebted on December 2,2001. An executive from company Tune Air Sdn, Tonny Fernandes, purchased it. The company’s headquarters is in Sepang, Selangor, Malaysia. After Tonny Fernandes changes all the operation management in the company, AirAsia its now can expands and becomes the largest low fare airlines even since then. With a fleet of 72 aircraft, AirAsia flies to over 61 domestic and international destination. They have 108 routes and operate over 400 flights daily from hubs located in Malaysia, Thailand, and Indonesia. Today, AirAsia has flown over 55 million guests across the region and continues to create more extensive route network through its associate companies.
AirAsia believes in the no-frills, hassle-free, low fare business concept and feels that keeping costs low requires high efficiency in every part of business. Through the corporate philosophy of ‘Now Everyone Can Fly’, AirAsia has sparked a revolution in air travel with more and more people around the region choosing AirAsia as their preferred choice of transport. In the competitive airline industry, AirAsia keep improving their supportive and constructive management by being supportive and responsive in listening to its employee for any ideas for reducing cost. AirAsia is leading way for developing low cost airlines and its promises to revolutionize the international market place.
1.2 Industry Background
There is new concept of aviation industry that gives a new opportunity for everyone to fly. It called Low-Cost-Carrier concept. LCCs open a totally new product such as no frills, no food, no drinks, no spacious seat, no travel agent bookings, but a very low