The airline was introduced by a Malaysian corporation in 1993 and commenced

operations in 1996. In 2001, AirAsia airline was

purchased by Tony Fernandes of Tune Air Sdn. Bhd. for the price of RM1. As part of
the
purchase, Tony also took up the RM40million debt.
Under the leadership of Tony Fernandes, the airline was flying high in 2002 and
launched
its new route that year. In 2003, a second hub was opened in Senai International
Airport,
Johor Bahru, as well as the airlines maiden international flight to Bangkok. After
that the
only place AirAsia was heading for is up, as the Thai and Indonesian subsidiaries
were set
up as well as the commencement of flights to Indonesia, Macau, China, Philippines,
Vietnam and Cambodia in 2005. AirAsia now flies to all ASEAN countries,a great
portion of
Asian countries that include India, Iran, Sri Lanka and Bangladesh; as well as to the
United
Kingdom, France, Japan, Korea and Australia via AirAsiaX.
In 2011, we are setting up another AirAsia hub in the Philippines and are well on the
way
in setting up other similar operations elsewhere in the region soon after.
What we want to achieve
Our vision is to be the largest low cost airline in Asia so that we can provide a low
cost
service that will allow the three billion people to fly to more destinations across the
region.
We aim to be a truly ASEAN airline corporation as we look out for every countrys
best
interest.
Mission

 To be the top company to work in, where employees ar e treated like family
To create a globally recognised ASEAN brand
To attain the lowest cost of any airline, so that everyone can fly with us
To maintain the highest quality, to embrace technology, cost reduction, eleviate
service levels and provide our guests with a WOW experience
Profit:
2009
RM000

2010
RM000

2011
RM000

Gross Profit Margin

Net Profit
100
Net Sales

506
100=16.15
3133

1061
100=26.87
3948

555
100=12.34
4495

622
100=19.85
3133

1099
100=27.83
3948

777
100=17.28
4495

Net Profit Margin

Gross Profit
100
Net Sales
Return on Capital
Employed

Net Profit
Total AssetsC Liabilities
Return on assets.

506
1061
555
100=9.6
100=10.7
100=12
113981709
132401,843
139062,194,072
100

3133
11398

3948
13240

4495
13906

3133
2621

3948
3641

4495
4036

Net Income
Total Assets
Return on equity

Net Income
Stock holde r ' sequity

Interpretation:
Gross profit Margin measures the gross profit for the period to sales revenues in a financial year.
In the above analysis there is substantial difference as in 2009 it was 16.15% and then in 2010 it
increased by the difference of approximately 11.72% and after that in the following year it
decreased by 14.53%. it was because they decreased the cost of sales, may be they got discounts
on goods bought, or they managed properly to keep decreased their cost of purchases as they
were using the raw cheaper material. But in the next year their cost of sales increased suddenly,
they could not managed their purchases, may be they did not get the discounts. One more reason
which we found behind increasing of sales cost was Aircraft expenses, as that time oil prices got
high, which did not affect a lot on revenue but swelled the expense of Air Asia (Star news 2009)
The next analysis which is done above is the net profit margin. Net profit margin which is used
to measure the net profit to sales revenue in a fiscal year. The gross profit was 27.84% in 2010
while in 2009 it was 19.85%, means it increased by difference of 7.99% in 2009 compared to
2010, the reason behind that was their promotions and marketing which helped them to keep
increasing their net sales. As they started the promotions of 20% off on going to events in
Singapore, Manila and some other popular areas on Hari Raya. Not only that, they also started
the especial discounts for students in vacation time. These types of promotions helped Air Asia to
increase their sales. Another reason of increasing their net profit in 2010 was they didnt pay
enough tax as in 2009 they paid Rm116021 and in 2010 they paid only 37445, which effected
their following year 2011, as they got less profit because of high payment of tax around
Rm221693 and another reason which is found that they made the payments to creditors which
they didnt pay enough in their last year (2010).
Following this is Return on Capital Employed which shows the performance and profitability of
a companys capital investment
Over three financial years ROCE ratio for Air Asia has not been fluctuated with higher
differences. In 2010, Net assets have been increased due to purchase new building probably for
expansion purpose. Net profit has also been increased which shows that Air Asia has efficiently
used their resources to generate profit.
In all three years they have increased their ROCE, it means they managed properly to generate
higher profits by using funds efficiently as showed in above calculation that their revenues are
increasing every year means their profits are also increasing, and reasons behind that are same as
mentioned above.