AirAsia History: The RM1 Airline That Changed Asia – Airline Employee Shop

AirAsia History

AirAsia was a struggling Malaysian airline bought for one ringgit in 2001, and it became Asia's best-known low-cost carrier. Here's a short history of AirAsia, plus the AirAsia collection that celebrates it.

A full-service start (1993-2001)

Malaysian conglomerate DRB-HICOM set up AirAsia on December 20, 1993, as a full-service airline. Flying began on November 18, 1996, with a Boeing 737-300 from Kuala Lumpur to Langkawi. The airline struggled, and by the late 1990s its debts had reached about RM40 million.

Everyone can fly (2001-2006)

On September 5, 2001, Tony Fernandes and Kamarudin Meranun bought AirAsia through their company Tune Air for RM1, taking on its debts. They relaunched it as a low-cost airline on January 15, 2002. Thai AirAsia was founded in 2003, and Indonesia AirAsia launched in 2005. By the end of 2006 AirAsia flew 35 Boeing 737-300s and 8 Airbus A320s, with 100 more A320s on order.

A family of airlines (2007-2022)

Long-haul sister airline AirAsia X began flying on November 2, 2007. From 2009 Skytrax named AirAsia the World's Best Low-Cost Airline year after year. In 2011 AirAsia ordered 200 Airbus A320neos at the Paris Air Show. AirAsia India started flying in June 2014, and in November 2016 the head office moved to klia2 at Kuala Lumpur International Airport. The COVID-19 pandemic grounded most flights in 2020. In January 2022 the parent company was renamed Capital A.

One AirAsia Group (2024-today)

In 2024 AirAsia X agreed to take over Capital A's airline businesses, and the deal was completed in January 2026, bringing the AirAsia-brand airlines together as the AirAsia Group. In July 2025 AirAsia agreed with Airbus for 50 A321XLRs. On May 6, 2026, it ordered 150 Airbus A220-300s, the largest single order in the A220's history.

A few things collectors love

  • The famous purchase price: Fernandes and Kamarudin paid one ringgit for the airline.
  • For years AirAsia's slogan was "Now Everyone Can Fly." The airline dropped it in 2020.
  • AirAsia's bright red livery is one of the most recognizable sights at airports across Asia.

Shop AirAsia

Browse AirAsia logo T-shirts, coffee mugs, coasters, tote bags and vintage designs in the AirAsia collection. Add an airline bag tag or key tag for the frequent flyer in your life.

AirlineEmployeeShop.com is an independent retailer of airline memorabilia. This page is for historical interest and is not affiliated with or endorsed by AirAsia.