BACKGROUND AirAsia is Malaysias second national airline was incorporated in 1993 as a full-service regional airline under DRB-Hicom.

They started their operations on 1996. After starting their operations for several years, AirAsia failed to attract enough passengers to establish its own niche market due to the demise of Tan Sri Yahaya Ahmad and financial crisis. Hence, AirAsia was heavily indebted. In 2001, Tony Fernandess company,Tune Air Sdn Bhd bought this airline from DRB-Hicom with estimation of RM 40 million debts. There are many continuous transformations that Air Asia makes in order to become outstanding, to accomplish its strategic mission and vision and maintain sustainability in the industry. Using the catchy and effective slogan of "Now everyone can fly", AirAsia became the first successful low cost and ticket-less airline in the Southeast Asian region. People can experience the flight with affordable price and it does not consider as an expensive choice of transportation, rather one of the economically justified ways of traveling to domestic and international destinations. It has been a great pride in the history of AirAsia that has overcome the difficulties to pave the way for low-cost aviation. Since December 8, 2001, when the company was taken over by the new AirAsia management, Dato Seri Tony Fernandes, AirAsia has grown to become the largest low-cost carrier in Asia. It is a pioneer of low-cost flights in Asia and was also the first airline in the region to implement fully ticketless travel. The main hub is the low-cost carrier terminal (LCCT) at Kuala Lumpur International Airport. Today the airlines are operating in Malaysia, Thailand and Indonesia. AirAsia X, Indonesia AirAsia, Thai AirAsia, Philippines' AirAsia Inc and AirAsia Japan are their associate companies. With more than 6,000 talented, diligent and committed employees and a market capitalization in excess of RM2 billion, AirAsia has earned a reputation as a consistent performer and their success is not constrained by resources or opportunity.

AirAsia creates values through the following vision and mission:

AirAsia values Vision Mission

To be the largest low cost airline in Asia and serving the 3 billion people who are currently underserved with poor connectivity and high fares. 1. To be the best company to work for whereby employees are treated as part of a big family 2. Create a globally recognized ASEAN brand 3. To attain the lowest cost so that everyone can fly with AirAsia 4. Maintain the highest quality product, embracing technology to reduce cost and enhance service levels

AirAsia delivers the low fare to everyone and make it possible by creating values through the implementation of the following key strategies:

1. High aircraft utilisation

2. No frills

3. Streamline Operations

4. Basic Amenities

5. Point to point network 6. Lean Distribution System

Implementing the regions fastest turnaround time at only 25 minutes, assuring lower costs and higher productivity which the first flight starts early in the morning and the final flight ends at midnight. Offering guests with the selection of customized services without compromising on quality and services. No free food & beverages Free seating Ticketless airlines No refund No loyalty programme Ensure the processes are as simple as possible. Single type of aircraft Single class seating Standard Operating Procedures Secondary airports which is cheaper than the bigger major airports and they are also less congested and "turnaround times" for aircraft are a lot shorter. Besides, business lounges are not provided. Applying the point-to-point network keeps operation simple and lower costs. Providing a wide and innovative range of distribution channels to make booking and traveling easier and bring convenience to customers. Sales office -There are just few sale offices are established. Travel agents. - LCC avoids reliance for sales via travel agent to save the cost of commission. Call centres. -Ticket sales can be done through cost effective method such as telephone.

REFERENCES History of Airasia. Retrieved on 5 May 2013, from http://airlines- malaysia.com/tag/history-ofairasia/ Airasia corporate profile. Retrieved on 5 May 2013, from http://www.airasia.com/my/en/aboutus/corporate-profile.page Melinrain (2011). Air Asia Company Profile. Retrieved on 5 May 2013, from http://www.studymode.com/essays/Air-Asia-Company-Profile-665148.html