Capital A Berhad, () operating as AirAsia (stylized as airasia) is a Malaysian multinational low-cost airline headquartered near Kuala Lumpur, Malaysia. It is the largest airline in Malaysia by fleet size and destinations. AirAsia operates scheduled domestic and international flights to more than 165 destinations spanning 25 countries. Its main base is KLIA Terminal 2, the low-cost carrier terminal at Kuala Lumpur International Airport (KLIA) in Sepang, Selangor, Malaysia. Its affiliate airlines AirAsia Cambodia, Thai AirAsia, Indonesia AirAsia, and Philippines AirAsia have bases in Phnom Penh, Bangkok–Don Mueang, Jakarta–Soekarno-Hatta, and Manila–Ninoy Aquino airports respectively, while its sister airline, AirAsia X, focuses on long-haul routes. AirAsia's registered office and head office is at Kuala Lumpur International Airport.
In 2007, The New York Times described the airline as a "pioneer" of low-cost travel in Asia. It has also consistently been named as the world's best low-cost carrier for 14 years by Skytrax in a row in international travel and airline awards, including the latest award for 2023.
AirAsia is the sponsor of Malaysia national football team, Singapore national football team, Jamshedpur FC and Queens Park Rangers. AirAsia is also a former sponsor of Manchester United and the Asia leg of Taylor Swift's Red Tour.
History
Foundation (1993–2005) AirAsia was established as a full-service airline in 1993 and began operations on 18 November 1996. It was founded by a government-owned conglomerate, DRB-HICOM. On 5 September 2001, the heavily indebted airline was bought by former Time Warner (now known as Warner Bros. Discovery) executive Tony Fernandes and Kamarudin Meranun's company Tune Air Sdn Bhd for the token sum of one ringgit (about US$ at the time) with MYR 40 million (US$) worth of debts. Tune Air officially took over AirAsia on 8 December 2001. The partners turned the company around, and AirAsia subsequently announced a rebrand and relaunch on 15 January 2002 as a low-cost airline. It produced a profit in 2002 and launched new routes from its hub in Kuala Lumpur, undercutting former monopoly operator Malaysia Airlines with promotional fares as low as MYR 10 (US$). In 2003, AirAsia opened a second hub at Senai International Airport in Johor Bahru. International flights to Phuket and Bangkok were launched in December 2003 and February 2004, respectively.
AirAsia subsequently started its Thai AirAsia affiliate and began flights to Singapore and Indonesia. Flights to Macau started in June 2004, and flights to mainland China (Xiamen) and the Philippines (Manila) in April 2005. Flights to Vietnam and Cambodia followed in 2005 and to Brunei and Myanmar in 2006, the latter by Thai AirAsia. AirAsia launched its Indonesian affiliate Indonesia AirAsia, formerly known as Awair, in 2005. In August 2006, AirAsia took over Malaysia Airlines's Rural Air Service routes in Sabah and Sarawak, operating under the FlyAsianXpress brand. The routes were returned to MASwings a year later, citing commercial reasons.
Expansion (2006–present) At the end of 2006, Fernandes unveiled a five-year plan to further enhance AirAsia's presence in Asia. Under the plan, AirAsia proposed enhancing its route network by connecting all of its existing destinations throughout the region and expanding further into Vietnam, Indonesia, Southern China (Kunming, Xiamen, Shenzhen) and India. Through its sister companies, Thai AirAsia and Indonesia AirAsia, the plan called for a focus on developing its hubs in Bangkok and Jakarta. With increased frequency and the addition of new routes, AirAsia carried 13.9 million passengers in 2007, an improvement over the 5.7 million passengers it carried in 2006.
In August 2011, AirAsia agreed to form an alliance with Malaysia Airlines by means of a share swap. This would have reduced competition and help the Malaysian flag carrier return to profitability. However, the deal was terminated in 2012.
AirAsia would continue its regional expansion in Asia, launching its affiliates Philippines AirAsia in 2012 and AirAsia India in 2014. In 2017, it planned to set up a new affiliate in China but failed. Plans were also made since 2005 to enter the Vietnam market by establishing an affiliate airline of its own there; however, after four attempts, AirAsia terminated its plan to set up its own airline in Vietnam.
AirAsia suspended its operations in March 2020 due to the COVID-19 pandemic. It later resumed domestic operations in April 2020, followed by its affiliates soon after. In October 2021, AirAsia restarted international flights after the Malaysian government lifted travel restrictions.