The quest to democratise air travel began when Tune Air Sdn. Bhd. – founded in 2001 by Tan Sri Tony Fernandes, Dato’ Pahamin Ab. Rajab, Datuk Kamarudin Meranun and Dato’ Aziz Bakar – bought over the loss-making, debt-riddled AirAsia from HI COM Holdings Berhad (now DRB-HICOM Berhad) for a token sum of RM1. The enterprising group quickly settled the airline’s debts and set about rebranding and relaunching AirAsia as a low-fare carrier.
The Group’s entire business model centres around a low-cost philosophy which requires its operations to be lean, simple and efficient. Several key strategies have been employed towards this effect, including:
- High Aircraft Utilisation
- Low Fare, No Frills
- Point to Point Network
AirAsia focuses on high frequency and high turnaround of flights, both of which add to customer convenience and greater cost efficiencies. Its turnaround of 25 minutes is the fastest in the region.
This means no frequent flyer miles or airport lounges in exchange for lower fares. Guests have the choice of paying for in-flight meals, snacks and drinks.
All short-haul AirAsia flights (four-hour flight radius or less) and medium- to long haul AirAsia X flights are non-stop, doing away with the need for human resources, physical infrastructure and facilities at transit locations.