A Closer Look at Air Asia’s Growth

AirAsia was founded in 1993. Over the years it has grown into the discount airline we know today. Flying to 25 countries with 165 routes, their fleet of 89 planes serves more than half of Asian and Australasia. They have consistently won the award for best discount airline worldwide over the last nine years. The most recent of these awards held by the airline is from 2017.

Recent growth also sees two additional routes launch to Hanoi (HAN) and Phuket(HKT) from Penang(PEN). The new routes start from July 1st and AirAsia growth show no signs of slowing down.

 “We are pleased to continue strengthening our ASEAN footprint and the connectivity within the region. Phuket and Penang are hubs in Thailand and Malaysia. It is great to see the efforts channelled to enhance the connectivity between one hub and another.”

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Spencer Lee, Head of Commercial, Air Asia Malaysia.

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What Fuels the Success of AirAsia?

The airline currently has a large number of new aircraft on order.  A total of 349 planes have been purchased from  Airbus. Each plane can carry almost 200 passengers on average. As a result, the airline capacity increases from 17800 passengers to 87600. Airbus aircraft are actually single aisle narrow body aircraft and are therefore able to land at airports others cannot. The $18 Billion dollar deal is so big that Air Asia has become Airbus’s biggest customer! As you can see, AirAsia growth is certainly impressive, to say the least!

AirAsia Affiliate Model & AirAsia Growth

The airline has several smaller AirAsia affiliate product lines for each region. Each one has its own financial partner. Apart from Air Asia X, each ‘franchise’ acts as a low-cost domestic equivalent.

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Air Asia Vietnam – First of all, we have Air Asia Vietnam, the newest in the group launched in early 2018

Air Asia China – Still expanding into China (currently only 15 routes) they will focus on central and western China.

AirAsiaIndia – Perhaps the most noteworthy is the first foreign airline with an affiliate in India.

AirAsia Japan – Joint venture between Air Asia and Japanese network airline All Nippon Airways.

Air Asia Indonesia – This AirAsia affiliate is a domestic carrier for the Indonesia territory

Air Asia Philippines – Philippines Air Asia is a joint venture between Filipino investors and Air Asia.

AirAsia Thai – Air Asia Thai is a joint venture between Air Asia and Thailand’s Asia Aviation.

Air Asia X – The only international AirAsia affiliate that operates long-haul routes to Europe and Australia.

With so many different branches, costs remain low by sharing the same ticketing system, uniforms, equipment and more. As a result, with a future involving over 500 planes, thousands of staff and many locations, they can utilize economies of scale. It seems like the airline will continue growing at an impressive rate for the foreseeable future.

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