AirAsia

1993–2001: Foundation and early years

AirAsia was established on 20 December 1993, by DRB-HICOM, a Malaysian government-owned conglomerate, as a full-service carrier. The airline commenced operations on 18 November 1996, with its inaugural flight from Kuala Lumpur to Langkawi, utilising a Boeing 737-300. In its early years, AirAsia faced challenges such as high operating costs and heavy competition from established carriers like Malaysia Airlines.

By the late 1990s, AirAsia had accumulated substantial debts, amounting to approximately MYR 40 million (around US$10.5 million). Efforts to stabilise the airline included route expansion, leasing aircraft for Hajj charters and internal discussions about potential management changes.

However, these initiatives were insufficient to address the airline's structural issues. The situation deteriorated further following the global aviation downturn after the September 11 attacks. By September 2001, AirAsia’s debt had risen to around US$11 million, leaving the company on the brink of collapse.

2001–2002: Transformation into a low-cost carrier

On 5 September 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. Fernandes, a former executive at Time Warner (now known as Warner Bros. Discovery), saw an opportunity to transform AirAsia into a low-cost carrier, inspired by the success of airlines such as Southwest Airlines and Ryanair. This acquisition marked a turning point in AirAsia’s history, setting the stage for its reinvention as a budget airline.