[3] In its early years, AirAsia faced challenges such as high operating costs and competition from established carriers like Malaysia Airlines.

[5][3] Efforts to stabilise the airline included route expansion, leasing aircraft for Hajj charters and internal discussions about potential management changes.

On September 5, 2001, Tony Fernandes and Kamarudin Meranun acquired AirAsia through their company Tune Air Sdn Bhd for a nominal sum of one ringgit (approximately US$0.26), taking on its considerable liabilities.

This strategic shift involved adopting a no-frills service model, enabling AirAsia to offer fares that were significantly lower than those of its competitors, particularly Malaysia Airlines.

[8] The airline focused on point-to-point routes and utilised secondary airports, which helped lower operational costs and improve overall efficiency.

Additionally, the airline placed orders for 100 more Airbus A320 aircraft, which helped increase its capacity and frequency of flights, supporting its expanding network.

[9] In late 2006, AirAsia's CEO Tony Fernandes introduced a five-year plan designed to strengthen the airline's presence across Asia.

The strategy focused on enhancing connectivity between existing destinations and expanding into new markets such as Vietnam, Indonesia, Southern China and India.

However, due to regulatory concerns, this partnership was dissolved in early 2012, marking a setback for AirAsia's ambitions to strengthen its domestic market.

Despite its focus on growth, AirAsia’s efforts to establish airlines in countries such as China, Myanmar, Sri Lanka, Singapore, South Korea and Vietnam were hindered by various challenges and practical constraints.

[13][14][15][16][17][18] In 2014, AirAsia made another significant advancement by becoming the first Malaysian airline to offer onboard Wi-Fi services through its subsidiary, Tune Box.

Teleport has since become a significant logistics provider, utilising AirAsia’s network to serve businesses and e-commerce platforms across Asia Pacific and beyond, including key hubs such as Hong Kong, Shanghai, Incheon, Narita, Bangalore and Sydney.

In late 2020, the airline launched the Airasia Super App, diversifying its business model beyond air travel to include services such as food delivery, e-commerce and logistics.

[9] This move was aimed at adapting to changing consumer behaviors and maintaining a steady revenue stream in the face of reduced air travel.

Additionally, the airline expanded its international network by reintroducing routes between Thailand and China, capitalizing on the growing demand from travelers eager to visit these popular destinations.

This enhanced fleet aims to improve operational efficiency, expand service offerings and bolster AirAsia’s competitive position across key market segments.

By late 2024, AirAsia outlined ambitious plans to position Kuala Lumpur International Airport as a key global aviation hub.

In December 2024, Capital A submitted its proposed regularisation plan to exit PN17, which includes a reduction of accumulated losses and the disposal of its aviation businesses to AirAsia X.

[31][32] Looking beyond the immediate future, AirAsia’s long-term vision focuses on expanding its reach to strategic markets across the Pacific and East Asia, with further ambitions to enter Africa, Europe and North America by 2030.

This global expansion strategy underscores AirAsia's aim to enhance its position as a leading low-cost carrier, connecting more regions and catering to a broader, international customer base.

The airline's primary hub is located at Kuala Lumpur International Airport (KLIA), where it operates a substantial portion of its flights.

Internationally, AirAsia operates numerous routes across Southeast Asia and beyond, offering destinations in countries such as Thailand, Indonesia, the Philippines, Singapore and mainland China.

This broad network has enabled AirAsia to become a significant player in the regional and international aviation markets, catering to both business and leisure travelers.

In addition to its primary operations at KLIA’s low-cost terminal, AirAsia (Malaysia) has developed secondary hubs to enhance regional connectivity.

Together, these hubs play a vital role in supporting AirAsia’s extensive network, ensuring that the airline can efficiently serve its domestic and international markets.

[45] However, as a consequence of the COVID-19 pandemic on aviation, the orders for the new A320 family of aircraft were reworked by mutual agreement between AirAsia and Airbus in October 2021, with deliveries now scheduled to extend to 2035, among other undisclosed changes in purchase terms.

Pre-purchase of "Santan" meals is available at a lower price than on board, and with additional options [47] AirAsia is accredited by the KL Syariah Index of Bursa Malaysia, and in accordance with Shariah principles, it does not serve alcohol or pork.

[52] Aireen Omar, the AirAsia Country CEO of Malaysia, stated that the headquarters needed to be redesigned because in the klia2 plans the location of the control tower had been changed.

[52] In May 2017, AirAsia planned to open a subsidiary company in Cambodia to handle an increase of tourists from Malaysia visiting to the Cambodian cities of Phnom Penh, Siem Reap and Sihanoukville.

The Filipino group include Antonio Cojuangco, Jr., Yancy Mckhel Mejia, former owner of Associated Broadcasting Company with flagship television station TV5, Michael Romero, a real estate developer and port operator, and Marianne Hontiveros.