English Language And Communication

Air Asia Sdn Bhd

(DRM 43)

Name ID Number
Darslan Nair A/L Mogan DRM 1104-002187
Rishanthan A/L Mohgan DRM 1105-002246
Prasanthe Reddy A/L Paidarlai DRM 1105-002262
Dinesh Kumar A/L Ramesh DRM 1104-002079



Introduction

AirAsia needs no introduction in ASEAN, where it is the leading low-cost carrier, connecting
people and places across 132 routes, 40 of which are offered by no other airline. In 2010, the
Group, which includes affiliates AirAsia Thailand and AirAsia Indonesia, reinforced its
leadership position with two remarkable milestones: flying its 100 millionth guest and
breaking the RM1 billion profit barrier.
From an airline with two aircraft plying six routes in Malaysia in January 2002, AirAsia has
soared in the last nine years to cover 65 destinations in 18 countries. Today, employing more
than 8,000 staff and with a market capitalisation of just over RM7.06 billion (as at 31
December 2010), it is the only Truly ASEAN airline, serving the regions 600 million
population from 10 hubs in three countries - Kuala Lumpur, Kuching, Penang and Kota
Kinabalu in Malaysia; Bangkok and Phuket in Thailand; and Jakarta, Bali, Bandung and
Surabaya in Indonesia.
In 2011, we introduced two hubs, Chiang Mai for AirAsia Thailand and Medan for AirAsia
Indonesia.
Singapore functions as a virtual hub where AirAsia features among the top 10 airlines in
terms of contribution to passenger traffic. Further strengthening its ASEAN network, the
Group in December 2010 signed an agreement to establish a Philippine-based low-cost
affiliate, which is expected to be operational by end 2011.
The quest to democratise air travel began when Tune Air Sdn. Bhd. founded in 2001 by
Dato Sri Dr. Tony Fernandes, Dato Pahamin Ab. Rajab, Dato 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 airlines debts and set about rebranding and relaunching AirAsia as
a low-fare carrier.
The Groups 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
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.
Low Fare, No Frills
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.
Point to Point Network
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.
In addition, a decision was made in December 2004 to convert the existing fleet of ageing
Boeing B737s with the higher capacity yet more fuel-efficient, reliable and cost-efficient
Airbus A320s. As a result, today, the Group boasts the largest and newest A320 fleet in the
region. Of its 90 aircraft, 86 are A320s, and the Group has in its order book an additional 89
A320s to be delivered. The four remaining B737s in AirAsia Indonesia are to be phased out
by 2012, following which there will be less duplication of manpower requirements and
reduced need to stock maintenance parts.
Collectively, these strategies have established AirAsia as the lowest-cost airline in the world,
with a cost/ASK (available seat kilometre) of US3.67c. This has been achieved without
compromising safety. The highest priority is given to safe operations, and AirAsia complies
with conditions asset by regulators in all the countries where it operates. The Group also
partners with the most renowned maintenance providers to ensure its fleet is always in the
best condition.
Innovative use of technology has played a key role in AirAsias success story, beginning with
online booking. It was the first airline in Asia to go ticketless -in March 2002 - allowing
guests to pay for their bookings by credit card over the phone. Over the years, it has built on
its IT platform to increase the ease of customer transactions as well as provide greater savings
to the Group. In 2010, AirAsia unveiled its latest IT booking innovation in the form of New
Skies, which allows customers to better manage their online bookings. With the advent of the
social media, tools such as Facebook, Twitter and blogs have become integral to the Groups
customer relationship initiatives. AirAsia is, in fact, recognised as the most popular airline in
the region on Facebook in terms of fan base.
The spirit of innovation is also reflected in AirAsias financial strategies. The companys
spectacular turnaround within18 months of operations sealed the stamp of financial wizardry
that has continued to help the airline grow and win accolades such as the 2010 Asiamoneys
Best Managed Company.
While known for its no-frills approach, AirAsia is also synonymous with youthful energy and
a cheeky sense of fun, as captured in its campaigns and branding strategies. The airline
regularly sponsors sporting and entertainment events, and in 2010 launched
AirAsiaRedTix.com, an online gateway to world class performances.
AirAsia is ultimately a peoples airline. This is mirrored in numerous acts of generosity that
show the management truly cares. In January 2010, the Group joined hands with UNICEF to
raise RM438 million (US$128million) for relief efforts targeted at Haitians affected by the
earthquake. The airline also runs an on-going Donate Your Loose Change campaign to help
needy heart patients receive treatment at the National Heart Institute in Kuala Lumpur.
The Groups adherence to best practices has been recognised via numerous awards over the
years. Perhaps most notably AirAsia has been voted the Worlds Best Low Cost Airline for
two consecutive years, in 2009 and 2010. This award, from Skytrax, reflects the opinions of
about 18 million travellers worldwide who were polled by the London-based aviation
consultant. AirAsia feels proud of such endorsement and is committed to living up to guests
expectations by continuing to keep costs down while providing the highest levels of service
and efficiency as it spreads its wings further and wider across the skies





















Summary



AirAsia Berhad (AirAsia) is principally engaged in the provision of air transportation
services. AirAsia flies to over 100 routes across 11 countries in Asia. Some of its wholly
owned subsidiaries include Crunchtime Culinary Services Sdn Bhd, which is engaged the
provision of in-flight meals; AA International Ltd, which is engaged in investment holding;
AirAsia Go Holiday Sdn Bhd, which is engaged in tour operating business; AirAsia
(Mauritius) Limited, which is engaged in providing aircraft leasing facilities, and Airspace
Communications Sdn Bhd, which is a media owner with publishing division. On January 8,
2007, the Company acquired 100 more Airbus A320 aircraft. In October 2008, the Company
announced that it has incorporated a wholly owned subsidiary in the Federal Territory of
Labuan, Malaysia known as AirAsia Corporate Services Limited.










Product & Services

AirAsia Insure One-Way Travel Protection

Benefit Domestic/ Regional International
1. Personal Accident Benefit
Accidental
Death &
Bodily
Disablement
Up toRM300,000.00 Up toRM300,000.00
2. Travel Inconvenience Benefits
Flight
Cancellation
Reimbursement
for the cost of
flight if the
Insured Person
has to cancel
the Trip due to
Insured events
Up to original flight cost Up to RM5,000.00
Baggage and
Personal
Effects
Cover lost or
damage to
baggage,
clothing,
personal effects
Up to RM1,500.00
(Any one ItemRM500.00)
Up to RM5,000.00
(Any one ItemRM500.00)
AirAsia Flight
Delay
Flat payment
for every 6
hour period of
the original
departure
Scheduled
Flight
Up
to RM1,050.00(RM150.00
per 6 hour delay period)
Up
to RM1,050.00(RM150.00
per 6 hour delay period)
Missed Flight
Connection
On the
condition that
there is no
onward
Scheduled
Flight
connection
Up to RM500.00
(RM250.00 per 6 hour
delay period)
Up to RM500.00
(RM250.00 per 6 hour
delay period)
available
within 6
consecutive
hours from the
previously
missed
Scheduled
Flight
3. Travel Assistance Services
24 hours
Worldwide
Travel
Assistance
Services
- Included
Note: AirAsia Insure One-Way Travel Protection is available for one-way itineraries only.
Additional Benefit
Benefit Domestic/
Regional
International
Delay Plus
AirAsia Flight Delay
AirAsia Flight Delay Flat
payment for every 6 hour
period of the original
departure Scheduled Flight
Up to
RM1,050.00
(RM150.00 per 6
hour delay period)
Up to RM1,050.00
(RM150.00 per 6 hour
delay period)
Delay Plus
On the condition that there
is a delay greater than 2
(two) hours of scheduled
departure time caused
solely by Carrier Operator/
AirAsia Group
Up to RM200.00
AirAsia
Electronic Gift
Voucher (EGV)
Not applicable(All
AirAsia X flight with
Airline code started
with D7 is not
covered)
Note: AirAsia Insure Return Travel Protection is available for round-trip itineraries only.

Product rates
Plan Type Rate per Guest
Airasia Insure One-Way Cover Domestic RM7.50
AirAsia Insure One-Way Cover Regional RM9.50
AirAsia Insure One-Way Cover International RM18.00
AirAsia Insure Return Cover Domestic RM15.00
AirAsia Insure Return Cover Regional RM21.00
AirAsia Insure Return Cover International (1-10 Days) RM29.00
AirAsia Insure Return Cover International (11-30 Days) RM49.00

Delay Plus is not applicable to All International Booking

Some of Our Additional Benefits and Features
To view the full terms and conditions, please click here.

1) Coverage for accompany infant(s) who is/are named in the confirmation slip is
afforded as follows:-

a) One-Way Travel Protection
Coverage is afforded to one (1) accompanying named infant if the Insured Person has
purchased the protection herein provided. This free coverage is limited only to Personal
Accident benefit up to 10% of the stated Limit of Benefit i.e.

b) Return Travel Protection - Domestic/ Regional
Coverage is afforded to one (1) accompanying named infant if the Insured Person has
purchased the protection herein provided. This free coverage is limited only to Personal
Accident benefit up to 10% of the stated Limit of Benefit i.e. RM12,500.00

c) Return Travel Protection - International
Coverage is afforded to one (1) accompanying named infant if the Insured Person has
purchased the protection herein provided. This free coverage is as follows:-
Personal Accident benefit up to 10% of the stated Limit of Benefit RM20,000.00;
Medical and evacuation expenses up to the limit as stated in the Summary of
Benefit ;
24 hours Worldwide Travel Assistance Services
2) Delay Plus
Coverage is afforded to passenger if the Insured Person has purchased the protection herein
provided. The coverage will pay up to the value of RM200 AirAsia Electronic Gift Voucher
(EGV) per passenger for delay greater than 2 (two) hours of scheduled departure time caused
solely by Carrier Operator/ AirAsia Group.
Coverage is not extended for accompanying infant if the Insured Person has purchased the
protection herein provided.
3) Other Limitations for Return Plan
Ground cover for the Trip is limited to that within the legal boundaries of Country of
Arrival only. If the Insured Person travels beyond the boundary of the country, cover
will exclude the geographical limits beyond the boundary of that country.
If the Insured Person departs on any scheduled flight, to travel outside the Country of
Arrival, this insurance cover will suspend upon the Insured Persons check-in for that
out-bound flight. Cover will however resume upon the Insured Persons check-out at
Immigration upon returning to the original country of arrival, subject to the Period
Covered, i.e. provided the period is still within thirty one (31) days of the first
departure date of the Insured Person Scheduled Flight.
If the Insured Person departs on any others mode of transportation others than
schedule flight, to travel outside the Country of Arrival, this insurance cover will
suspend upon the Insured Persons check-out from the immigration of the Country of
Arrival. Cover will however resume upon the Insured Persons check-in to the
immigration of the Country of Arrival, subject to the Period Covered, i.e. provided the
period is still within thirty one (31) days of the first departure date of the Insured
Person Scheduled Flight.
Travel Inconvenience Benefits coverage during the period of ground cover in the
course of the Trip is limited only to Scheduled Flight, in the Country of Arrival.


Achievements


Year 2011



Worlds Best Low Cost Airline
Best Low Cost Airline Asia
by Skytrax




Best Company for Investor Relations Mid Cap
Best Investor Relations Website Mid Cap
by Malaysian Investor Relations Associations (MIRA)


Asias Best Low Cost Cargo Carrier Award
by Aviation Awards Asia 2011


Fastest Growing Foreign Airline for Cargo
by Guangzhou Baiyun International Airport


2010 Asiamoneys Best Managed Company Award



Year 2010

Masterclass Global CEO of the Year
awarded to YBhg. Dato' Tony Fernandes


World's Best Low Cost Airline
by Skytrax


AirAsia voted the Air Cargo Industry Newcomer Award at the
ACW World Air Cargo Awards 2010.
by Air Cargo Week


Year 2009

Airline Of The Year
By Centre for Asia Pacific Aviation (CAPA)


Tony received the 2009 Frost & Sullivan Excellence in
Leadership Award
by Frost & Sullivan


Best Asian Low-Cost Carrier
By TTG Travel Awards 2009


World's Best Low Cost Airline
by Skytrax




Year 2008

The Laureate Award for Best Commercial Airport Transport
from Aviation Week


Tony awarded the Malaysia Brand Icon Award
from Deputy Prime Minister YAB Dato' Seri Najib Tun Razak at
the Global Brand Forum Malaysia


AirAsia - Malaysia's 30 Most Valuable Brands 2008
By Malaysias Most Valuable Brands (MMVB)


PIKOM ICT Organisation Excellence Award 2008
By Association of the computer and multimedia industry
(PIKOM)


AirAsia X - Best New Airline Of The Year
By Centre for Asia Pacific Aviation (CAPA)


Best Asian Low-Cost Carrier
By TTG Travel Awards 2008


Top CEO brand & 3rd Best Corporate Brand in Malaysia
By Pulse Group Survey


World's Best New Airline (AirAsia X)
By Budgie World Low Cost Airline Awards 2008


Friends Of Thailand Award 2008
By Tourism Authority of Thailand


Asia Pacific's Top 1000 Brands 2008 Survey (AirAsia- Top 5
Airline)
by Taylor Nelson Sofres


Asia's Best Budget Airline under Best In Travel Poll 2008
by SmartTravelAsia.com


AirAsia wins Airline Strategy Award in the Finance Category
by Airline Business


AirAsia recognized as one of the 50 Most Innovative
Companies In The World
by FastCompany.com


Airline Market Penetration Leadership of the Year
by Frost & Sullivan




Rising Leaders - The Next 10 Years
by Singapore Institute of International Affairs (SIIA) in
collaboration with AXN Asia


Commendations of Prestige Award for outstanding
contribution in Macau
by Macau Special Administrative Region


Year 2007

Airline Of The Year 2007
by Centre for Asia Pacific Aviation (CAPA)
Click here for Press Release


Asia's Best Budget Airline under Best In Travel Poll 2007
by SmartTravelAsia.com


Airline Human Capital Development Strategy Award
by Frost & Sullivan


Asia's Best Emerging Companies with regards to Corporate
Governance
by The Asset


Best Low Cost Airline in Asia
by Skytrax


The Brand Laureate 2006-07
for brand excellence in the Airlines-Low Cost Carrier Category


Year 2006

Malaysias Ernst & Young Entrepreneur of the Year 2006
awarded to YBhg. Dato' Tony Fernandes


Low Cost Airline of the Year in KLIA Awards 2006
by Malaysia Airports Holdings Berhad


Merit Award for CAPA Airline of the Year 2006
by Centre for Asia Pacific Aviation (CAPA)


Asias Best Budget Airline under Best In Travel 2006
by SmartTravelAsia.com


Best Managed Company, Best Corporate Governance, Best
Investor Relations, and Most Committed to Strong Dividend
Policy under The Annual Investor Poll
by FinanceAsia.com


Year 2005

The CAPA Aviation Executive of the Year 2005
awarded to YBhg. Dato' Tony Fernandes


Regional/ Low Cost Leadership Award in Airline Business
Startegy Awards 2005
by Airline Business - awarded to YBhg. Dato' Tony Fernandes


Airline Market Leadership Award
by Air Transport World (ATW)


Transport Company of Excellence Award
by Ports World Sdn. Bhd


Asia's Top 200 "Best Under A Billion" Companies
by Forbes Asia


RHB AirAsia Credit Card by Superbrands

Best Chip Program for MasterCard Marketing Leadership
Award 2005 by MasterCard


Year 2004

Asia Pacific Low Cost Airline of the Year 2004
by Centre for Asia Pacific Aviation (CAPA)

Asia Pacific Aviation Executive of the Year 2004
awarded to Tony Fernandes, Group CEO
by Centre for Asia Pacific Aviation (CAPA)

Asia Pacific Low Cost Advertising Award for Best Asia Pacific /
Middle East Low Cost Airline Print Advertisement 2004 by
Centre for Asia Pacific Aviation (CAPA)


Asia's Best Managed Company in the Airlines and Aviation
Sector by Euromoney

Best Newly Listed Company (3rd place)
by Euromoney


Triple A Regional Award for Best Airline IPO for 2004
by The Asset Magazine


Best IPO of the Year by The Edge Singapore


25 Stars of Asia honoree listing (Tony Fernandes)
by Business Week


Best Uniform for Miss Airlines International Contest 2004
5
th
China Air Show, Zhuhai


Market Leadership Award, 2005 Airline Achievement Awards
by Air Transport World Magazine


Year 2003

Developing Airline of the Year 2003
by Airfinance Journal




CEO of the Year (Tony Fernandes)
by Business Times and American Express


CIO Top 100 Honoree for excellence in strategic IT
deployment


Obtained Malaysian Superbrands status
by Superbrands International


www.airasia.com voted as the most popular website for
online shopping in the 11th Malaysia Internet User Survey
conducted by AC Nielsen Consult














Organizational Structure

The following chart shows the corporate structure and principal operating companies for AirAsia.





Directors biography

TAN SRI DR. TONY FERNANDES was appointed Group Chief
Executive Officer of the Company in December 2001. He is also a
member of the Employee Share Option Committee of the Board.

Prior to joining the Company, he was Financial Controller at Virgin
Communications London from 1987 to 1989, Senior Financial Analyst
at Warner Music International London from 1989 to 1992, Managing
Director at Warner Director at Warner Music Malaysia, from 1992 to
1996, Regional Managing Director, ASEAN from August 1996 to
December 1999 and Vice President, ASEAN from December 1999 to
July 2001 at Warner Music South East Asia. He was actively involved
in developing the Malaysian music industry and received the title Setia
Mahkota Selangor from DYMM Sultan Selangor Sultan Salahuddin
Abdul Aziz Shah in 1999 in recognition of his contributions and was
also the recipient of the Recording Industry Person of the Year 1997
by the Recording Industry Association of Malaysia.
A highly decorated man, he has received numerous awards from the industry observers and
international press alike. Among the awards are, Malaysia CEO of the year 2003 by
American Express and the Business Times, Emerging Entrepreneur of the Year Malaysia
2003 at the Ernst & Young Entrepreneur of the Year Awards in 2004, Airline Business
Strategy Award 2005 and Low Cost Leadership by Airline Business and he was also named
Asia Pacific Aviation Executive by the Centre for Asia Pacific Aviation (CAPA) for the year
2004 and 2005.
In July 2005, he was conferred the Darjah Datuk Paduka Tuanku Jaafar (DPTJ) which
carries the title Dato by the Negeri Sembilans Yang DiPertuan Besar Tuanku Jaafar
Tuanku Abdul Rahman in conjunction with His Majestys 83rd birthday celebrations in
recognition of his services rendered to the betterment of the nation and community. In 2006,
he was named the Master Entrepreneur of the Ernst & Young Entrepreneur of the Year 2006
Malaysia. He also bagged The Brand Laureate Brand Personality for his exemplary
performance, dedication and contribution towards the aviation industry in Malaysia in the
same year and also in 2007. He was admitted as an Associate Member of the Association of
Chartered Certified Accountants in 1991 and became a Fellow Member in 1996.

In 2007, he was conferred yet another title, the Darjah Sultan Ahmad Shah Pahang (DSAP)
which carries the title Dato by the Pahangs KDYMM Sultan Haji Ahmad Shah ibni
Almarhum Sultan Sir Abu Bakar Riayatuddin Al- Muadzam Shahas recognition of his
services rendered to the betterment of the nation and community. In 2008, he was bestowed
with another title by the Sultan, the Darjah Kebesaran Sultan Ahmad Shah Pahang Yang
Amat Di Mulia which carries the title Dato Sri.
In 2009, he was conferred the CAPA Legend Award 2009 (Aviation Hall of Fame) in
recognition of his influential actions for directly shaping the way the aviation industry has
evolved, and Airline CEO of the Year Award for 2009 from Janes Transport Finance, for
successfully leading and growing AirAsia into the worlds best low-cost airline and Asias
largest.
In March 2010, he received an Honorary Doctorate of Business Innovation from Universiti
Teknologi Malaysia (UTM), a recognition for his role in changing the face of aviation and
benefitting travelers and economies locally and in the region, and the following month the
title of Officier of the Legion d Honneur by the government of France for his outstanding
contributions to the aviation industry. The Legion d Honneur -- the highest rank of honour
that the government of France can award to a non-French citizen -- was established by
Napoleon Bonaparte in 1802 to recognize outstanding service to France.
In April 2010, he was honoured with the title of Officer of the Legion d Honneur by the
government of France for outstanding contributions to the French aviation industry. It is the
highest rank of honour that the government of France can award to a non-French citizen.
The following month, he received the prestigious Nikkei Asia Prize in Tokyo for his
contributions to the growth of Asia. The prize, given by leading Japanese newspaper
publisher Nikkei Inc., recognised his role in democratising travel in Asia.
Fernandes also received the prestigious Forbes Asia Businessman of the Year 2010 award.
He is the first Malaysian and Southeast Asian to receive the award.
In February 2011, he was awarded the Commander of the Order of the British Empire (CBE)
honour by Her Majesty Queen Elizabeth II. The award was conferred on him for services in
promoting commercial and educational links between the United Kingdom and Malaysia.
In April 2011, Tony was conferred Darjah Seri Paduka Mahkota Perak (S.P.M.P) which
carries the title Dato Seri at the Istana Iskandariah in Kuala Kangsar.









Major shareholders



As of 19 May 2011, about 26% of the total share capital was owned by Tune Air Sdn. Bhd. AirAsia
Berhad is a substantially owner managed company, the cumulative ownership by the board of
directors constitutes approximately 28% of the share capital.


Top 5 shareholders % Holdings
6 July 2011
Tune Air Sdn Bhd 26.28% 729,458,382
Employees Provident Fund Board 8.06% 223,644,400
Genesis Smaller Companies 5.43% 150,635,581
Wellington Management Company 5.31% 147,342,635
The Nomad Investment Partnership Lp Cayman 4.91% 136,300,000
Public 48.51% 1,388,143,082
100.0% 2,775,524,080










Conclusion



Air Asia (AA) has exposed us an insightful example in showing how a keen and
critical strategic movement may drive a company that was almost bankrupt back into
shape. While AA management was providing a suitable business environment, its
employees demonstrated a highly productive and efficient performance in running the
business and reducing cost. AA decision on using uniform aircraft also put into account.
It emphasized the principle of economies of scale and also it will eventually reduce
learning curve. However, AA actual main strength was based in its innovative ways to
keep the cost low which was hard to imitate. With those entire factors combined together,
AA has shown how synergies between management, employee and its environment can
develop a competitive advantage that brought Air Asia to be the contender as market leader
in the competition.