Timeline: From budget-airline pioneer to financial strain - how did AirAsia get here?
Bought for RM1 in 2001, AirAsia grew from a struggling Malaysian carrier into one of Asia’s best-known low-cost airline groups, but more than two decades later, it is facing mounting financial pressure from debt and rising fuel costs.
In 1993, AirAsia began as a conventional Malaysian airline, before morphing into a pioneer of low-cost travel in Southeast Asia. Struggling financially, Tune Air purchased a struggling AirAsia for just RM1 (US$0.25) in 2001, rescuing it from debt. Under new leadership, AirAsia was relaunched in 2002 as a budget airline, streamlining operations and introducing online ticket sales.
The airline expanded rapidly, acquiring Airbus aircraft and launching services across Southeast Asia and beyond. By 2008, AirAsia had carried 50 million passengers, marking a significant milestone. AirAsia X was introduced to handle long-haul routes, but faced early setbacks with European demand weakening and high fuel costs. Despite these challenges, AirAsia continued expanding globally, entering new markets like the Philippines, India, and Thailand.
However, the group suffered a major disaster in 2014 when AirAsia Indonesia Flight QZ8501 crashed, killing all 162 people on board. Financial troubles persisted, with passenger numbers falling in 2015 and revenue declining. Though the airline introduced more fuel-efficient aircraft in 2016, financial weakness remained a pressing issue, highlighting the challenges facing even the most successful low-cost carriers.
Written by urgent.news from Channel News Asia's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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