Capital A Bhd.
Company Background
From its beginnings with just two jets and debt of $11 million in 2001, AirAsia has grown to become a profitable short-haul budget carrier in Asia with a fleet of close to 200 aircraft. The group operates mainly in Asia-Pacific region, including operations in Indonesia, the Philippines and Thailand. AirAsia recently launched AirAsia India in an alliance with Tata Group, plying India's domestic market. It is also seeking a re-entry into Japan in a tie-up with Rakuten Japan, after its first joint venture with All Nippon Airways broke up in 2013.
AirAsia is 23% owned by Tune Air, a private company controlled by Group CEO Tony Fernandes, a former executive of music producer Time Warner. Inspired by the success of its peer Ryanair in Europe, he runs the airline strictly adhering to the low-cost and no-frills business model, and made flying affordable to many in Asia. AirAsia's success has led to the burgeoning of budget carriers in the region, many of which are owned by full-service airline companies. The group recently introduced premium services targeting business travelers and parcel delivery services to boost its ancillary income. Its listed associate, AirAsia X, is a long-haul budget carrier, flying all over Asia.