Harvard Business School Case Study Workshop

photo group class technobiz hbs

AIRASIA: FLYING LOW-COST WITH HIGH HOPE

“AirAsia started out as a Malaysian government-controlled, full-service regional airline that
offered slightly lower fares than its number-one competitor, Malaysia Airlines (“MAS”). In
December 2001, private entrepreneur Tony Fernandes took over the debt-ridden airline for the
symbolic sum of US$0.26. Despite the air-travel downturn following the 11 September 2001
terrorist attacks, Fernandes believed that the timing for entering the airline market was just
right, as aircraft leasing costs had dropped sharply and experienced staff were readily
available due to airline layoffs.”