Introduction Air Asia Air Asia was established in 1993 and commenced operation on 18 November 1996. Executive of Tune Air Sdn Bhd company‚ Tony Fernandes‚ and also known as a former of Time Warner had purchased from the ownership of HICOM Holding Sdn Bhd for the token sum of only RM1‚ and with only 2 Boeing 737-300 aircraft together with RM40 million in debt. The main nature of business of Air Asia is low-cost airline carrier. Air Asia is the largest low-fare airline company and a pioneer of low
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1.0 Introduction The objective of this report is to present the case study of e-commerce that related to the airline industry especially low cost carrier. The specified airline to be focused in this discussion is AirAsia. Mr. Tony Fernandes who had bought over AirAsia with the company value of so called “one dollar RM” established AirAsia in 2001. At that time‚ he expected AirAsia to carry nearly twenty millions passengers within the next five years. The company strategy is to provide a convenient
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OUMM2103 1.0 INTRODUCTION TO AIR ASIA AirAsia 1 : The AirAsia Logo AirAsia was established in 1993 by DRB-Hicom‚ a Government-owned conglomerate. It started operations in 1996. Tune Air Sdn Bhd‚ Tony Fernandes’s company purchased this heavily indebted airline business from DRB-Hicom in 2001. AirAsia managed to become profitable and world renowned low-cost airline through visionary leadership and innovative business approach. Low Cost Carrier Terminal (LCCT) at Kuala Lumpur International is AirAsia’s
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a government-owned conglomerate‚ DRB-Hicom. On 2 December 2001 the heavily indebted airline was bought by former Time Warner executive Tony Fernandes’s company Tune Air Sdn Bhd for the token sum of one ringgit (about USD 0.26 at the time) with USD 11 million (MYR 40 million) worth of debts. Fernandes turned the company around‚ producing a profit in 2002. AirAsia’s CEO Tony Fernandes subsequently unveiled a five-year plan to further enhance its presence in Asia. Under the plan‚ AirAsia proposes to strengthen
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on 1996. After starting their operations for several years‚ AirAsia failed to attract enough passengers to establish its own niche market due to the demise of Tan Sri Yahaya Ahmad and financial crisis. Hence‚ AirAsia was heavily indebted. In 2001‚ Tony Fernandes’s company‚Tune Air Sdn Bhd bought this airline from DRB-Hicom with estimation of RM 40 million debts. There are many continuous transformations that Air Asia makes in order to become outstanding‚ to accomplish its strategic mission and vision
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started operations on 18 November 1996. It was originally founded by a government-owned conglomerate DRB-Hicom. On December 2‚ 2001‚ the heavily-indebted airline was purchased by former Time Warner executive Tony Fernandes’s company Tune Air Sdn Bhd for the token sum of one ringgit. Fernandes proceeded to engineer a remarkable turnaround‚ turning a profit in 2002 and launching new routes from its hub in Kuala Lumpur International Airport at breakneck speed‚ undercutting former monopoly operator Malaysia
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at a time when the company had $10.5 million debt (Ahmad 2010). Tune Air comprised of three initial Malaysian investors‚ Tony Fernandes and Connor McCarthy (Ricart and Wang 2005). With Fernandes‚ a former Time Warner executive‚ at the helm‚ and McCarthy‚ RyanAir’s former director of operations‚ the business almost immediately eradicated the debt with ambitious CEO‚ Fernandes‚ implementing aggressive low cost systems throughout the organisation(Ricart and Wang 2005). In October 2004‚ AirAsia attracted
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DRB-Hicom‚ a government owned- conglomerate. On 2 December 2001‚ the heavily- indebted airline was purchased Tony Fernandes former Time Warner Executive. Tony was inspired by the Low-Cost Carrier business model of Southwest Airlines and proposed to start a Low-Cost Carrier but the government refused to issue a new license and requested Tony to buy an existing airline. Hence Tune Air set up by Tony and his investors bought Air Asia for a token sum of RM1. Before 2001. AirAsia failed to attract
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Thought they provide lowest cost but they can still operating profits. AirAsia was established in 1993 and it was started operations on the 18 November 1996.Initially‚ AirAsia has set up a government owned company‚ it’s named DRB-HICOM. Then Tony Fernandes bought the company liabilities in 8 September 2001 and estimation RM40 million debts. AirAsia has rapidly successful developed into the cheapest and largest airline since 2001. Figure 1: Tourists used AirAsia Airline 1.1 Vision AirAsia want
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started operations on 18 November 1996. It was originally founded by a government-owned conglomerate DRB-Hicom. On 2 December 2001‚ the heavily-indebted airline was purchased by former Time Warner executive Tony Fernandes’s company Tune Air Sdn. Bhd. for the token sum of one ringgit. Fernandes proceeded to engineer a remarkable turnaround‚ turning a profit in 2002 and launching new routes from its hub in Kuala Lumpur International Airport at breakneck speed‚ undercutting former monopoly operator Malaysia
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