- CAPA Analysis
- Schedule Analysis
- Cargo Analysis
- Route Maps
- Annual Reports
- Fast Fact Report
AirAsia is a low cost carrier based at Kuala Lumpur International Airport, Malaysia. The carrier, which was formed out of Tune Air in 2002, is led by CEO Tony Fernandes and pioneered the cross-border joint venture in Asia, establishing Thai and Indonesian units with bases in Bangkok and Jakarta. The airline has also partnered with other airlines and investors to create ventures in the Philippines, India and Japan. AirAsia's extensive domestic and regional network includes services within Malaysia and to China, Southeast Asia and the Subcontinent.
Location of AirAsia main hub (Kuala Lumpur International Airport)
AirAsia share price
LCCs will continue to evolve into hybrids of the original core model. CAPA and OAG consider AirAsia fits the LCC profile and it is included in our reporting on this basis. Please note: when reporting for an airline is changed from or to LCC the historical data is not affected and it can lead to a distortion in the current reported data. Contact us if you have any queries.
2,499 total articles
255 total articles
Southeast Asia airline sector endures a rough and unprofitable 2014 but outlook for 2015 is brighter
Challenging market conditions and overcapacity have taken a huge toll on Southeast Asia’s airline sector. An overwhelming majority of the region’s airlines were unprofitable in 2014 across both the low-cost and full-service models.
Only seven of Southeast Asia’s 18 publicly traded airlines or subsidiaries/affiliates that report financial results were profitable on an operating basis in 2014. Combined, this sampling of 18 airlines incurred operating or EBIT losses of nearly USD1 billion in 2014 compared to a slight profit of about USD150 million in 2013.
The big year-over-year swing is a reflection of the challenging market conditions throughout the region as it metamorphoses. Of the 18 airlines in this sampling, only six achieved improved operating figures in 2013, including four from the Philippines.
Competition in Thailand’s domestic LCC sector intensifies further as Thai Lion, Nok & AirAsia expand
Thailand’s domestic market has become a major battleground for three of Southeast Asia’s leading low-cost carriers. Thailand’s domestic LCC sector recorded passenger growth of over 30% in 2014 and could see similar growth in 2015.
But the growth has come at the expense of yields and profitability as all players have had to lower fares to compete. The outlook for 2015 remains relatively bleak as the price wars have continued.
Thai Lion has been the main provocateur, pursuing rapid expansion since launching services at the end of 2013. But Nok and Thai AirAsia have also been expanding rapidly, leading to overcapacity.
Thailand’s new crop of long-haul low-cost carriers have been set back by new restrictions imposed by Japan and South Korea following an ICAO determination that Thailand’s aviation authority is not in compliance with international safety standards. NokScoot and Thai AirAsia X (TAAX) will likely still be able to pursue expansion in China, which has raised new restrictions on Thai charter carriers, but Japan and Korea are critical markets for both start-ups.
NokScoot has been particularly impacted as it had not yet launched scheduled services – due to a series of earlier unrelated regulatory delays – when ICAO informed Korea and Japan at the end Mar-2015 of its findings against the Thai DCA. As a result NokScoot had to shelve plans for launching scheduled services to Japan and Korea as well as cancel or hand to sister carrier Scoot charters to Japan.
TAAX is in slightly better position as it was already serving two destinations in Japan and one in South Korea when both countries began imposing the new restrictions. But TAAX will have to drop a new route to a third Japanese destination and delay plans for adding capacity in both markets.
Asia’s emerging long-haul low-cost sector is ready to enter the US market in late 2015 with services to Hawaii from Malaysia’s AirAsia X and the Philippine’s Cebu Pacific. Hawaii will be the initial testing ground but mainland US destinations are possible over the medium- to long-term as new-generation widebody aircraft are placed into service.
Asian long-haul LCCs will bring a new dynamic to the already intensely competitive trans-Pacific market. Asian widebody LCC operators have by some measures the lowest unit costs in the world.
No US airline group has yet established a long-haul LCC but may need to look closely at the model as Asian operators join Australian, European and Latin American long-haul LCCs in serving the US. LCCs have a tiny fraction of the US long-haul market but they are starting to gain traction and Honolulu will almost certainly see a shake up as AirAsia X and Cebu Pacific enter.
CAPA Americas Aviation Summit: Congresswoman Dina Titus & AirAsia’s Tony Fernandes join speaker list
CAPA is pleased to announce Congresswoman Dina Titus, a member of the House Committee on Transportation and Infrastructure, will give a keynote address on Day 1 of the CAPA Americas Aviation Summit in Las Vegas on 27-28 April 2015, introducing a high level panel on US aviation infrastructure.
Tony Fernandes, Founder and CEO of the AirAsia Group, the LCC which transformed Asian aviation - and whose sister company, long haul LCC AirAsia X, has just announced a new service to the US - is also joining the Day 1 line-up to explain the Asia Pacific growth opportunities.
They join a premium speaker list including Sir Tim Clark, President and CEO of Emirates Airline, Willie Walsh, CEO of International Airlines Group, Bill Franke, Co-Founder and Managing Partner, Indigo Partners, Tewolde GebreMariam, CEO Ethiopian Airlines, David Scowsill, President, World Travel and Tourism Council, Tim Canoll, ALPA President and many others.
Malaysia AirAsia (MAA) and sister long-haul LCC Malaysia AirAsia X (MAAX) are shrinking their fleets in 2015 while adopting a new capacity and pricing strategy. Both carriers are trying to restore yields, which plummeted in late 2013 and 2014 due to intense competition and overcapacity in the Malaysian market.
MAA is still adding some capacity by improving aircraft utilisation levels. But passenger numbers will likely remain flat as the focus on yields results in a reduction in load factor.
Meanwhile MAAX has cut capacity across its scheduled network as part of a restructuring aimed at restoring profitability. MAAX was highly unprofitable in 2014 while MAA was the only profitable airline in Malaysia. MAA was also the only profitable airline among the eight carriers in the AirAsia/AirAsia X portfolio.