AIR ASIA: The World’s Lower Cost Airlines

By 2009, AirAsia had established itself as Asia's most successful low-cost airline.
Between January 2002 and March 2009, AirAsia had expanded from two aircraft
and 200000 passenger journeys to 79 aircraft and 11.8 million passengers. Its route
network had grown beyond Malaysia to cover 10 South-East Asian countries. In
addition to its hub in Kuala Lumpur (KL), Malaysia, it had replicated its system by
establishing associated airlines in Thailand and Indonesia.

* Written by Robert M. Grant. The case draws upon a report written by Sara Buchholz, Nadia Fabio,
Andres Ileyassoff, Laurent Mang and Daniele Visentin, AirAsia-Tales from a Long-haul Low Cost
Carrier, Bocconi University (2009), and from an earlier case by Thomas Lawton and Jonathan Doh,
The Ascendance of AirAsia: Building a Successful Budget Airline in Asia (Ivey School of Business, Case
No. 9B08M054 2008). Used by permission of the authors. © 2010, Robert M. Grant.
626 CASE 9 AIRASIA

FIGURE 9.1 Costs available seat xuomerer

$0.10

SpiceJet
$0.09

$0.08 .easyJet
03a. • WestJet • Sky Europe
$0.07 • GOl • Virgin Blue
(J)
oo • AirBerlin
g> $0.06
Yueling

$0.05 Southwest
o Ryanair
$0.04 AirArabia

$0.03
700 900 1,100 1,300 1,500 1,700 1,900 2,100 2,300
Average Trip length
Source: AirAsia Presentation, elSA Forum, Hong Kong, September 2007

By 2007, UBS research showed that AirAsia was the world's lowest cost airline
with costs per available seat kilometer (ASK) significantly below those of Southwest,
Jet Blue, Ryanair or Virgin Blue (see Figure 9.1). It was also one of the world's most
profitable airlines. In 2008, when very few of the world's airlines made any profit at
all, AirAsia earned return on assets of 4%. 1 In 2009 it won the Skytrax Award as
"The World's Best Low Cost Airline."
AirAsia had built its business on the low-cost carrier (LCC) model created by
Southwest Airlines in the u.S. and replicated throughout the world by a host of
imitators. AirAsia had adapted the basic LCC model to the market, geographical and
institutional features of South-East Asia while preserving the principal operational
features of the strategy. However, in 2007, AirAsia embarked upon a major departure
from the LCC model: expansion into long-haul flights by inaugurating routes to
Australia and China and then, in 2009, to India and the U.K. The conventional
wisdom was that the efficiency of the LCC model was dependent upon short- and
medium-distance flights with a single type of aircraft and minimal customer
amenities-intercontinental flights required contravening these basic conditions. Very
few LCCs had ventured into long-haul; even fewer had made a success of it.
To evaluate AirAsia's potential to expand from being a regional carrier to an
international airline would require a careful analysis of the basis of its existing cost
advantage and an evaluation of the transferability of these cost advantages to the
long-haul market.

History of Air Asia

The growth of AirAsia is closely associated with the entrepreneurial effort of Tony
Fernandes. Son of a Malaysian doctor, Tony was sent to boarding school in Britain
with a view to following in his father's footsteps into the medical profession. The
 CASE 9 AIRASIA 627

son had other ideas and, after an accounting degree at the London School of
Economics, went into music publishing, first with Virgin, then Time Warner. He
describes his decision to start an airline as follows:

I was watching the telly in a pub and I saw Stelios [Haji-Ioannou] on air
talking about easyJet and running down the national carrier, British Airways.
(Sound familiar? Hahaha.) I was intrigued as I didn't know what a low cost
carrier was but I always wanted to start an airline that flew long haul with low
fares.
So I went to Luton and spent a whole day there. I was amazed how people
were flying to Barcelona and Paris for less than 10 pounds. Everything was
organized and everyone had a positive attitude. It was then at that point in
Luton airport that I decided to start a low cost airline.f

He subsequently met with Conor McCarthy, former operations director of

Ryanair. The two developed a plan to form a budget airline serving the South-East
Asia market.
Seeking the support of the Malaysian government, Prime Minister Mahathir
Mohammad encouraged Fernandes to acquire a struggling government-owned
airline, AirAsia. With their own capital and support from a group of investors, they
acquired AirAsia for 1 Malaysian ringgit (RM)-and assumed debts of RM 40 million
(about $11 million). In January 2002, AirAsia was relaunched with just three planes
and a business model that McCarthy described as: "a Ryanair operational strategy, a
Southwest people strategy, and an easyJet branding strategy.T'
Fueled by rising prosperity in Malaysia and a large potential market for leisure
and business travelers seeking inexpensive domestic transportation, AirAsia's
domestic business expanded rapidly. In January 2004, AirAsia began its first
international service from KL to Phuket in Thailand; in February 2004 it sought to
tap the Singapore market by offering flights from Johor Bahru, just across the border
from Singapore, and in 2005 it began flights to Indonesia.
International expansion was fueled by its initial public offering in October 2004,
which raised RM 717 million. Airline deregulation across South-East Asia greatly
facilitated international expansion. To exploit the market for budget travel in
Thailand and Indonesia, AirAsia adopted the novel strategy of establishing joint-
venture companies in Thailand (Thai AirAsia) and Indonesia (Indonesia AirAsia) to
create new hubs in Bangkok and Jakarta. In both cases, the operations of these
companies were contracted out to AirAsia, which received a monthly fee from these
associate companies.
From the beginning, Fernandes had set his sights on long-haul travel-guided by
the example of his hero, Freddie Laker, the pioneer of low-cost transatlantic air
travel. However, this risked his good relations with the Malaysian government
because it put AirAsia into direct competition with the national airline, Malaysian
Airlines. Hence, Fernandes established a separate company, AirAsia X to develop its
long-haul business. AirAsia X is owned 16% by AirAsia (with an option to increase
to 30 % ), 480/0 by Aero Ventures (co-founded by Tony Fernandes), 16% by Richard
Branson's Virgin Group, with the remaining 20% owned by Bahrain-based Manara
Consortium and Japan-based Orix Corporation. Operationally, AirAsia and AirAsia
X are closely linked.
In 2007, flights began to Australia followed by China. By July 2009, AirAsia X
had flights from KL to the Gold Coast, Melbourne and Perth in Australia; Tianjin
8 CASE 9 AIRASIA

and Hangzhou in China; and Taipei and London using five Airbus 340s-with three
more to be delivered by year end. Planed future routes included Abu Dhabi (October
2009), India (2010) and later Sydney, Seoul and New York. At Abu Dhabi, AirAsia
X planned to have a hub that would serve Frankfurt, Cairo, and possibly East Africa
too: "You just can't get to East Africa from Asia," observed Fernandes." To support
its expansion, AirAsia X ordered 10 Airbus A350s for delivery in 2016.

Air Asia : Strategy and Management Style

Strategy
AirAsia described its strategy as follows:

• Safety first: partneringwith the world's most renowned maintenance

providers and complying with world airline regulations.
• High aircraft utilization: implementing the region's fastest turnaround time at
only 25 minutes, assuring lower costs and higher productivity.
• Low fare, no frills: providing guests with the choice of customizing services
without compromising on quality and services.
• Streamline operations: making sure that processes are as simple as possible.
• Lean distribution system: offering a wide and innovative range of distribution
channels to make booking and traveling easier.
• Point-to-point network: applying the point-to-point network keeps
operations simple and costs low. s

Prior to its expansion into long haul, AirAsia identified its geographical coverage
as encompassing three-and-a-half hours' flying time from its hubs. Fernandes'
confidence in his growth strategy rested on the fact that: "This area encompasses a
population of about 500 million people. Only a small proportion of this market
regularly travels by air. AirAsia believes that certain segments of this market have
been under-served historically and that the Group's low fares stimulate travel within
these market segments.:" Its slogan "Now Everyone Can Fly!" encapsulated
AirAsia's goal of expanding the market for air travel in Southeast Asia.
To penetrate its target market, AirAsia placed a big emphasis on marketing and
brand development. "The brand is positioned to project an image of a safe, reliable
low-cost airline that places a high emphasis on customer service while providing an
enjoyable flying experience." For an LCC, AirAsia had a comparatively large
expenditures on TV, print and internet advertising. AirAsia used its advertising
expenditures counter-cyclically: during the SARS outbreak and after the Bali
bombings, AirAsia boosted its spending on advertising and marketing. In addition it
sought to maximize the amount of press coverage that it received. AirAsia also built
its image through co-branding and sponsorship relationships. A sponsorship deal with
the AT&T Williams Formula 1 race car team resulted in AirAsia painting one of its
A320s in the livery of the a Williams race car. Its sponsorship of Manchester United
has resulted in it painting its planes with the portraits of Manchester United players.
It also sponsors referees in English Premier League. A cooperative advertising deal
with Time magazine resulted in an AirAsia plane being painted with the Time logo.
 CASE 9 AIRASIA 629

Its internet advertising includes banner ads on the Yahoo mobilehomepage and a
Facebook application for the Citibank-AirAsia credit card with the goal of increasing
visibility, encouraging interaction and allowing users to immerse themselves with the
AirAsia brand.
This heavy emphasis on brand building has provided AirAsia with a platform for
providing services that meet other travelers' needs. AirAsia offers an AA express
shuttle bus connecting airports to city centers with seats bookable simultaneously
with online booking of plane tickets. Fernandes has also founded Tune Hotels, a
chain of no-frills hotels co-branded with Air Asia. Tune Money offers online
financial services-again co-branded with AirAsia.

AirAsia's corporate culture and management style reflect Tony Fernandes' own
personality:

Mr. Fernandes says that he came to the industry with no preconceptions but
found it rigidly compartmentalized and dysfunctional. He wanted AirAsia to
reflect his own unstuffy, open, and cheerful personality. He is rarely seen
without his baseball cap, open-neck shirt and jeans, and he is proud that the
firm's lack of hierarchy (very unusual in Asia) means anyone can rise to do
anyone else's job. AirAsia employs pilots who started out as baggage handlers
and stewards; for his part, Mr. Fernandes also practices what he preaches.
Every month he spends a day as a baggage handler, every two months as cabin
crew, every three months as a check-in clerk. He has even established a
"culture department" to "pass the message and hold parties". 7

The share offer prospectus describes AirAsia's culture as follows:

The Group prides itself on building a strong, team-orientated corporate

culture. The Group's employees understand and subscribe to the Group's core
strategy and actively focus on maintaining low costs and high productivity.
AirAsia motivates its employees by awarding bonuses based upon each
employee's contribution to AirAsia's productivity, and expects to increase
loyalty through its ESOS [employee share ownership scheme] which will be
available to all employees. The Group's management encourages open
communication which creates a dynamic working environment, and meets all
its employees on a quarterly basis to review AirAsia's results and generate new
ways to lower costs and increase productivity. Employees . . . frequently
communicate directly with AirAsia's senior management and offer suggestions
on how AirAsia can increase its efficiency or productivity ...

In addition to the above, AirAsia:

inculcates enthusiasm and commitment among staff by sponsoring

numerous social events and providing a vibrant and friendly working
environment
strives to be honest and transparent in its relations with third parties ...
630 CASE 9 AIRASIA

fosters a non-discriminatory, meritocratic environment where employees

are offered opportunities for advancement, regardless of their education,
race, gender, religion, nationality or age,· and
emphasizes maintaining a constant quality of service throughout all of
AirAsia's operation through bringing together to work on a regular basis
employees based in different locations.f

Air Asia’s Operations Strategy

AirAsia's operations strategy comprises the following elements:

Aircraft. In common with other LCCs, AirAsia operates a single type of

aircraft, the Airbus A320. (It switched from Boeing 737s in 2005.) A single
aircraft type offers economies in purchasing, maintenance, pilot training and
aircraft utilization.
No-frills {lights. AirAsia offers a single class, which allows more seats per
plane. For example, when it was operating its Boeing 737s, these were
equipped with 148 seats, compared to 132 for a typical two-class
configuration. Customer services are minimal: complimentary meals and
drinks are not served on board (but snacks and beverages can be purchased),
passengers pay for baggage beyond a low threshold, and there is no baggage
transfer between flights-passengers must do this themselves. AirAsia does
not use aerobridges for boarding and disembarking passengers-another cost-
saving measure. Flights are ticketless and there is no assigned seating. Such
simplicity allows quick turnaround of planes, which also permits better
utilization of planes and crews.
Sales and marketing. AirAsia engages in direct sales through its web site and
call center. As a result, it avoids paying commissions to travel agents.
Outsourcing. AirAsia achieves simplicity and cost economies by outsourcing
those activities that can be undertaken more effectively and efficiently by
third parties. Thus, most aircraft maintenance is outsourced to third parties,
contracts being awarded on the basis of competitive bidding. Most of
AirAsia's information technology requirements are also outsourced.
Information technology. AirAsia uses Navitair's Open Skies computer
reservations system (CRS), which links Web-based sales and inventory system
which also links with AirAsia's call center. The CRS is integrated with
AirAsia's yield management system (YMS) that prices seats on every flight
according to demand. The CRS also allows passengers to print their own
boarding passes. In 2006, AirAsia implemented a wireless delivery system
which allows customers to book seats, check flight schedules and obtain real
time updates on AirAsia's promotions via their mobile phones-an important
facility in the Asia-Pacific region because of the high use of mobile phones.
While the YMS maximizes revenue by providing trend analysis and
optimizing pricing, the APS minimizes operational costs by using the
information generated by the YMS to plan and schedule the needed facilities
more efficiently. These two IT systems allow Air Asia to reduce costs in
 CASE 9 AIRASIA 63:

logistics and inbound activities. During 2005, AirAsia adopted an ERP

(enterprise resource planning) system to support its processes, facilitate
month-end financial closing, and speed up reporting and data retrieval." This
was superseded by an advanced planning and scheduling system, which
optimizes AirAsia's supply chain management and forecasts future resource
requirements.
Human resource management. Human resource management has been a
priority for AirAsia since its relaunch under Tony Fernandes. A heavy
emphasis is given to selecting applicants on the basis of their aptitudes, then
creating an environment and a system with develops employees and retains
them. Retention rates are exceptionally high for AirAsia which is important,
first, as an indicator of motivation and job satisfaction, but also as a cost
saving measure: because employees are multi-skilled, training costs per
employee tend to be high for AirAsia. Job flexibility at all levels of the
company, including administration, is a major source of productivity for
AirAsia.

Air Asia’s Operational Efficiency

To offer a comparative view of AirAsia's operational efficiency and cost
position, Table 9.1 provides operating and financial information on Malaysia's
two leading airlines: Malaysian Airline System (MAS) and AirAsia. Although
MAS's route network is very different from that of AirAsia's (MAS has a larger
proportion of medium- and long-haul routes), it was subject to similar cost
conditions as AirAsia.
For the first time since its relaunch in 2002, AirAsia made a loss in 2008. This was
the result of Fernandes' decision to unwind AirAsia's futures contracts for jet fuel
purchased. When crude oil prices started to tumble during the latter half of 2008,
Fernandes believed that AirAsia would be better off taking a loss on its existing
contracts in order to benefit from lower fuel prices.

Going Long-haul
Fernandes was aware that expanding from short-haul flights in South-East Asia into
flights of more than four hours to China, Australia, Europe and the Middle East
required major changes in operating practices and major new investments-
primarily in bigger planes. The creation of AirAsia X was intended to facilitate a
measure of operational independence for the long-haul flights while also spreading
the risks of this venture among several investors. The investors in AirAsia X also
contributed valuable expertise: Virgin Group had experience in establishing and
operating four airlines (Virgin Atlantic, Virgin Express, Virgin Blue and Virgin
USA), and the chairman of Air Ventures was Robert Milton, the former CEO of Air
Canada.
Table 9.2 shows the principal differences in AirAsia and AirAsia X's operations
and services.
632 CASE 9 AIRASIA - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Operating data
Passengers carried (millions) 11.81 13.76
Available seat kilometers (millions) 18.72 53.38
Revenue passenger kilometers (millions) 13.49 36.18
Seat load factor (0/0) 75 67.8
Cost per available seat kilometers (sen) 11.66 22.80
Revenue per available seat kilometers (sen) 14.11 20.60
Number of aircraft in fleet December 31, 2008 78 109
Number of employees 3799 19094
Aircraft utilization (hours per day) 11.8 11.1
Financial data (RM, millions)
Revenue 2635 15035
Other operati ng income 301.8 466.0
Total operating expense 2966 15 198.3
of which:
- Staff costs 236.8 2179.9
-Depreciation 347.0 327.9
-Fuel costs 1389.8 6531.6
-Maintenance and overall. 345.1 1146.4
-Loss on unwinding derivatives 830.2
-Other operati ng expenses" 139.2 5020.0
Operati ng profit (loss) (351.7) 305.5
Finance cost (net) 517.5 60.8
Pre-tax profit (loss) (869.2) 264.7
After- tax profit (496.6) 245.6
Total assets 9520.0 10071.6
of which:
-Aircraft, property, plant and equipment 6594.3 2464.8
-Inventories 20.7 379.7
-Cash 153.8 3,571.7
-Receivables 694.4 2020.1
Debt 6690.8 433.4
Shareholders' equity 1605.5 4197.0

a For AirAsia the main components are aircraft lease expenses and loss on foreign exchange. For MAS
the main components were: hire of aircraft! sales commissions! landing fees! and rent of buildings.

A comparison of prices and costs allows a clearer picture of AirAsia's ability to

compete in the long-haul market-where AirAsia must position itself against some
of the world's major airlines. BetweenKL and London, AirAsia competes with at
least six international airlines, among which the closest competitors are Malaysian
Airlines, Emirates and British Airways.
 CASE 9 AIRASIA 63:

TABLE 9.2 AirAsia and Air.Asia X compared

AirAsia AirAsia X

Concept Low cost short haul, no-frills Low cost long haul, no frills
Flying range Within four hours flying time More than four hours flying time from departing city
fro m departi ng city
Aircraft Airbus A320 with 180 seats Airbus A330 with more than 330 seats
Seat type Single seat Economy seat and Premium (previously known as XL) seat
Seat option Free seating with Xpress Assigned seating with advance seat request option
Boarding option
In-flight dining Wide range of light meals Pre-ordered full meals available including Asian,
and snacks available for Western vegetarian and kid's meal; light snacks
l

purchase onboard the also available for purchase onboard aircraft

TABLE 9.3 Fare AirAsia and its Kuala and

other
AirAsia xa airlines

KL-London round trip US$433.96 c US$683.68 36.5% 1. Gulf Air,

2. Qatar Air
3. Emirates
London-KL round trip US$433.96 c US$530.35 18.2% 1. Emirates,
2. Etihadl

3. Gulf Air

a Average fare between September 1 and October 1, 2009.

b Average of lowest airline fare on each day between September 1 and October 1, 2009.
e Average outbound fare: U.S.$187.87; average inbound fare: U.S.$209.48; meals and baggage charges: U.S.$36.61.

A comparison of economy, round-trip airfares between the two cities is shown in

Table 9.3. As Table 9.4 shows, these fare differentials reflect differences in cost
between AirAsia and its long-haul competitors. These cost differences do not take
account of differences in load factors, which can make a major effect on the average
cost per passenger. AirAsia reports that its KL-London flights have a load factor in
excess of 900/0. For the airlines as a whole, Table 9.5 shows load factors.

The Outlook for Long-haul

There can be little doubt that AirAsia has been remarkably successful in building a
budget airline in South-East Asia. Its cost efficiency, growth rate, brand awareness
and awards for customer service, airline management and entrepreneurship all
pointed to outstanding achievement, not simply in replicating the LCC business
model pioneered by Southwest Airlines but adapting that model and augmenting it
with innovation, dynamism and marketing flair that derived from Tony Fernandes'
personality and leadership style.
.34 CASE 9 AIRASIA - - - - - - - - - - - - - - - - - - - - - - , - - - - - - - - - - - - - - - -

TABLE 9.4 Flight ... """"o,...... i-,.,..... rr cost Kuala

British
AirAsia Airlines
Aircraft type a Airbus Boeing Boeing Boeing
340-300 747-400 747-400 777-300
Route KUL-STN KUL-LHR KUL-LHR KUL-DXB-LHR
Maximum passenger 286 337 359 360
capacity
KUL-DXB DXB-LHR
Flight fuel cost 79299 159522 159522 77525 80822
Leasi ng costs 5952 0 0 0 0
En route navigation 7949 12294 12294 1435 6613
charges
Terminal navigation 419 645 645 0 645
arrival charges
La nding/parking 1100 2200 2200 2200 2200
Departure handling 6000 12000 12000 12000 12000
Arrival handling 6000 12000 12000 12000 12000
Segment totals 105160 114280
TOTAL cost per 106719 198661 198661 219440
flight b
Average cost per 373.14 589.50 553.37 609.56
passenger b

a KUL= Kuala Lumpur, STN = London Stansted, LHR London Heathrow, DXB = Dubai.
b Excluding maintenance, depreciation, meal services and crew salaries.

Source: S. Buchholz, N. Fabio, A. Ileyassoff, L. Mang, and D. Visentin, AirAsia-Tales from a Long-haul Low Cost Carrier
(Bocconi University, 2009). Data based on NewPacs Aviation Tool Software. Used by permission of the authors.

However, its AirAsia X venture presented a whole set of new challenges. AirAsia
had successfully transferred several of its competitive advantages from AirAsia to
AirAsia X. The low costs associated with fuel-efficient new planes, secondary
airports and human resources practices had allowed AirAsia X to become the low
cost operator on most of its routes. The AirAsia brand and reputation provided

TABLE 9.5

AirAsia 77.0 75.0 78.0 80.0 75.5

Emirates 73.4 74.6 75.9 76.2 79.8
British Airways 67.6 69.7 70.0 70.4 71.2
Malaysia Airlines 69.0 71.5 69.8 71.4 67.8

Source: S. Buchholz, N. Fabio, A. Ileyassoff, L. Mang and D. Visentin, AirAsia-Tales from a Long-haul
Low Cost Carrier (case report, Bocconi University, 2009). Used by permission of the authors.
 CASE 9 AIRASIA 635

AirAsia ·X with credibility and reputation on each new route it inaugurated. By

sharing Web-based and telephone flight booking systems along with administrative
and operational services between the two airlines, AirAsia X was able to secure cost
efficiencies that would not be possible for an independent start-up.
Nevertheless, doubts remained over AirAsia X's ability to compete against
established international airlines. Unlike AirAsia, which was attracting a whole new
market for domestic and regional air travel, AirAsia X would have to take business
away from the established international airlines whose business models offer some
key competitive advantages over that of long-haul LCCs. In particular, its dense
domestic and regional route networks offer feeds for their intercontinental flights.
These complementarities are supported by through-ticketing, baggage transfer, and
frequent flyer schemes. Its sources of profit are very different from the LCCs: most
of their profit is earned from first class and business class travelers, which allows it
to subsidize its economy class fares.
These challenges pointed towards the advantage of closer integration of AirAsia X
with AirAsia. AirAsia X's CEO, Azran Osman-Rani, has argued for the operational
and financial rationale of merging AirAsia X into AirAsia: "It would be difficult for
AirAsia in the future if it did not have trunk routes as (this) is where the traffic
volumes come from, so AirAsia needs growth from AirAsia X and the merger allows
it to tap growth opportunities in the long-haul markets." Responding to allegations
that the real rationale for the merger was to allow AirAsia to finance AirAsia X's
losses, Azran said: "Rubbish, we can clearly dispute that. For the first quarter ended
March 31, 2009 our net profit was RM 18 million and we are net cash flow positive.
We even had a little cash at RM 3million. We are in a very good position and on a
much firmer footing and now is an interesting time to talk about a merger.Y'"

Notes
Operating profit before depreciation, amortization, and 7 "Cheap, but Not Nasty," The Economist, March 19,
interest as a percentage of average total assets. 2009.
2 See www.tonyfernandesblog.com, accessed June 3, 2009. 8 "AirAsia Berhad," Offering Circular, October 29, 2004,
3 Quoted by T. Lawton and J. Doh, The Ascendance of p.5.
AirAsia: Building a Successful Budget Airline in Asia 9 C. Cho, S. Hoffman Arian, C. Tjitrahardja and R.
(Ivey School of Business, Case No. 9B08M054, 2008). Narayanaswamy, Air Asia-Strategic IT
4 "AirAsia X to Hub in Abu Dhabi: AirAsia CEO," Khaleej Initiative (student report, Faculty of Economics and
Times, August 5, 2009. Commerce, University of Melbourne, 2005).
5 "Company Profile," http://www.airasia.com/site/my/en/ 10 "AirAsia X CEO backs Merger with AirAsia Bhd," The
page.jsp;jsessionid=2FE125E6F301CBFA16C86B62ED Star Online, July 23, 2009,
064A20?name=CompanyO/o20Profile&id=75dbf230- http://biz.thestar.com.my/news/story.asp?file=/2009/7/2
ac1e2082-29962900-ae960618. 3/business/4369512&sec= business"
6 "AirAsia Berhad," Offering Circular, October 29, 2004,
p.3.