In 2001, Tony Fernandes bought a struggling, debt-ridden Malaysian airline for just one ringgit (about 25 cents) along with its $11 million debt. Within a year, the low-cost model was flying, and AirAsia soon became Asia’s best-known budget airline. But the true story of AirAsia is not just about democratizing flying — it’s about how a small airline diversified boldly into adjacent and transformational businesses, reinventing itself as a digital lifestyle brand. Horizon 1: The Core – Low-Cost Flying AirAsia’s foundation was its low-cost, no-frills passenger business. Inspired by Southwest and Ryanair, built the airline on simple principles: A single aircraft type for efficiency (Airbus A320). Quick turnarounds to maximize utilization. Aggressive pricing to stimulate demand. “Now Everyone Can Fly” — a brand promise that resonated across Southeast Asia. From Malaysia, AirAsia expanded regionally, launching subsidiaries in Thailand, Indo...
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