contents 138 137 13 36 30 28 25 24 20 16 14 12 10 81 80 76 75 69 63 61 60 59 58 57 56 49 4 8 7 4 2 1 • S Dir B C Air M M Our Welcom Liber The S Five C Vison Pr Not List Analysi Finacl Air Adit S Audit S Air The A Air Invest S Gr C M enior oar or har or t t afet hair w ajor or anche oxy at at oup ect Asia Asia Asia Asia ar por por ice e em em of Peop Air P d e Y at y m d ional eopl’ Than ear or ing C F M f Per s of at at Pr & C ing M of an’ bu ent ent om or Gr Fina R – st s’ e & hief ilest e e t oper o ang St Dir out le S Ofica m Finacl Anual er s for t s Pr oup f or R Info Pr o m Air ta C on on r Just A320 s S S ecogn ect at o ofile Unit ma ones e Our Executiv it ofile t har t Air t cial m e at emnt he t egy Tr ies In C Ne rmation me e ors p nce orp l emnt line avel t eholding Low ed liance New e Futre Low twork Snapshot Gen Held tRepor ito nts rn viewOver al ra Profile n F eral Fare Home t ares Contrl Oficer’s e Informati s Governac Meting Airln Reviw e for vision & strategy
Our Vision TO CONTINUE TO BE THE LOWEST COST SHORTHAUL AIRLINE IN EVERY MARKET WE SERVE IN ASIA, DELIVERING STRONG ORGANIC GROWTH THROUGH OFFERING THE LOWEST AIRFARES AT A PROFIT.
Our Strategy
Leanest Cost Structure • Efficient and simple point-to-point operations • Attracting and retaining hardworking and smart people • Passion for continuous cost reduction
Maximise Shareholders’ Value • Resilient profit growth through our lower cost base • Expansion of the AirAsia network in a prudent and disciplined manner • Invest and enhance the AirAsia brand to increase investors’ returns
Safety • Comply with the highest International Aviation Safety Standards and practices • Keep operations simple and transparent • Ensure the security of our People and Guests
Passion for Guests’ Satisfaction • Maintain simplicity in every application • Practice the unique and friendly AirAsia experience at every opportunity • Recognise the linkage between guests’ satisfaction and long-term success 6 0
Transparency 0 2 T
• Transparency in decision-making and information sharing R O P E
• Optimum disclosure – higher than industry norms R L A
• Timeliness in disclosing information U N N A D
Human Capital Development A H R • Invest in both hard and soft skills E B A I
• Recognise all our People as contributors to our success S A R I
• Reward excellence and individual contributions A • Maintaining one brand across the Group 1 2 AIRASIA BERHAD ANNUAL REPORT 2006 A 20 and ro Ku is Cost and in bo aircft Val mo cari Op Di RM1 Ab. In AG as set Azi (D Ever and a br syno Air ter ho u and re ep fa ast 20 ch u an er mi te re R AINS up R ctor, ed st er sia In i th use nati yone bi ut nym nt .0 in ati 01, Car aj EV l n af ai l don e th n i spr g, y ern and Tu on etw ab a at ons, op rl B co hold . on sing at A ord G rie ine T Dat fle ou Tune er n B With ead bu R esia erat ation Can rou (C O g e al ang sur AL or had by M3 uest s ab Ryan o’ le hair A f Ter t name dest k Bakr LUT or p w in L ion ir pased le of Janury ko Air Air Fly”, the .6 largest thr al To g ith C (“ rpoate mi ODS Sd th s man, f hief 46 its ny f inat air), b or Asia. Airsa” ough of since l e Sdn nal ig low n ilon, (T help throug (Dire IO p Malysin Air air win hts Ferna Bo Bhd hailnd ion eo Execu Airsa Airsa), (KL evryon low craft Bh 20 fare. A Th eing its NARY o ple its gs s d ctor, sia Airsa f IA), and aily d e hout and o Con aso cost f t des an tha airlne tive ) irst r o tha , has 73- It an “ Jo th Air fro w bou b d e’s is op the or Dato’ ig Asia. ciate eir as d day hor along carie f Oficer, tok Asia) em distncvely m is fly also orme erats ger McCart Jakr ght e 0s, has, re Comp viso t N xpectaio six oday powe Bahru, to o mod comp Wit and Kamrudin f flight a Air AME for with over hu o ta in Air n th t Dir peratio over ruly Airsa) Asia h any”) me hy an bs eld t us r Asia. more (I Asia o profile its . ector anies, ndoe g Kot Dato’ 4 make ( d uest aw lo ns f homegrw Dir posit 30 ar, for tagline a cated into a cur I is domest n. From ard t extn ector, 0 part N o car K of Meranu and a sia). a Thai Pahmin d inablu, emr air to a token ently omestic name Grou w ned AIR nership ied , at low ing a fly. Abdul sive trave “Now Airsa Air Air ic Lo tw ge n o p itself n Asia; cost an ver w o l sia as T d to RAV i • our A wa OUR despit Our • str am That personali our som A B fr boundar peol m equ irA t R EL p ive y A ING az Low tr result prea m schedul High af drin of com great than flyer quality le g g sia’ ething suce irA of avel A uest uest ing me inutes, PILAR ord t b ntly irA RE o air sia, ks from s uying plim the ies n mile those Fa prom feat F suce sia able t as t ed r from s a d re rave and and ACH we very airlne r d who with t throug AS chalen entar io e in s quency the is s al whic to stem S servic. , given exclusivy n ote prices. have l. or hig No cur servic. ar a IA f OF our walks of d or We close our pref airln house e o y airpo an CLOSER air is h the E many, Frils ently bring awy ges drinks STRENGH tha culinary is aircft made m our from d rang driven S – travel e ake th of to rt staf folw Airsa’s a practise faced A ing e p GREAT our old ofe lounge – e life our with no-frils, lt pread, for hilospy our or this faste it houg Airsa of by u and p peol servic name more airln red meals, are ing tilsaon, roductivy. the hearts in during abilty possi ble frils the s creat hig key witho now ovatie first e a in Airsa in h targe con conti th is quick asle-fr such closer delicous exchang of E “Snack as guest the to rought str th barely frequncy time able venit R ut t lowe ofering e excitmn kep w h ategis: ts r ro prod as ued year e tur egion. comprisng d H guest by ug oes to evr. contiusly r meals, have naroud five Atack” E e our h cost ucts snack bridgn confide f and un ly fo for IGHTS Asia t not low h This r flight der It years more e fares the who guest fares c and is ofer and frequnt amongst o is fares reviw. nv at of has on and choie an low old. en are very 25 lower of ie to as nt • Easy To Book, Easy To Pay, Easy To Fly – AirAsia With our strong fundamentals supported by our close-knit offers a wide and innovative range of distribution team of Management and staff, and our strong branding, we channels to make traveling easier for its guests. AirAsia’s believe our tenacity will bring us to greater heights in ticketless service provides a low cost alternative to making low cost travel even more “fashionable”. issuing printed tickets. Guests can make booking and payments through: OUR COMMITMENT − Internet booking at www.airasia.com. This is one of the most popular booking channels, accounting for Our extended order of 40 firm Airbus A320 from the original approximately 60% of AirAsia’s total bookings; fleet of 60 and an additional purchase option of 30 aircraft is ample proof of our commitment to be a truly Asian airline − mobile.airasia.com; the 1st in the world; that operates an extensive route network, fosters economic prosperity, stimulates tourism and promotes stronger − Call centres; cultural integration. This has placed us in an enviable position of potentially becoming the largest and youngest − Sales offices and airport offices; and airline fleet in the region.
− Travel agents. THE AIRASIA CULTURE • Safety First – AirAsia’s cost optimisation philosophy will never be at the expense of the airline’s safety as the By walking the talk, we have developed a brand that is entire fleet fully comply with the conditions set by accessible to everyone. The driving force behind our brand is regulators in all the countries where the airline operates. our single most important asset – over 4,000 staff whose AirAsia’s partnership with world renowned maintenance dedication, determination and patience have made us a providers also ensure that its fleet is always in the best success story. In turn, we have built a conducive and condition. positive AirAsia culture that permeates all our lines of operations including management, guest services, ground • Cost Optimisation – AirAsia’s cost optimisation and flight operations. philosophy is never at the expense of quality. By operating a faster turnaround time, there is better aircraft utilisation and greater crew efficiency. These result in savings that are passed back to guests in the form of low fares. www.airasia.com 4 AIRASIA BERHAD ANNUAL REPORT 2006 Pe Nu Siz Siz Ave Ave Cost Cost ^ Nu Cost Yi Cost Yi Aircaf Sh Pr EBIT EBIT Ne Cash Lo ASK RPK CASH Tax R (RM Sh Total CONS Retu Retu EBIT Cash Ne Ne * CONS EBIT R.OC Ne Total BAL Cash Ne Pasen Ave ev e e ofi ad rc ar ar e e m m t t t t t ld ld rag rag rag cash D Inco A ent eho e C in t D r r D of of ber ber mi (m (m In Net nu per per per per exp Ase mar R R n n f f f & ebt NCE .E b ash acto AR AR of lo lo t OLI OLI co e e e FL evn evn 20, ger efo l on on fl fl il il fiv age u li cash e w w ld lion) lion) me (E et et income of of f st f on e me re tilsaon AS AS AS AS gin OW le are f (Tot er mar DA DA nse ts ro s Flo re r averg averg BIT age f f sult S et , ro ro emp St ue ue (%) s’ rev K K K K car m marg at at un HE the * TE TE tax equ ( m m al ages w s gin siz RM /(N S (U (sen) – – Eq lengt p p op year year les TAT E D D D after e loyes e ie fin inve er er Company S¢) nue o e et uity iv T xcluding xcluding e e ebt erating i ) f d e (ho n FINACL OPERA ( anci alents RPK RPK sh t Malysi) jo Debt E (Malysi) o otal h end end stin minorty via int MENTS th ur – are (km erwis at Total s ly (US¢) (sen) g g aset inter ( ( holder pe actives + Gr Malysi) changed year TING ) year cont act act fue fue E r oup) inters Cash) quity) net i i d vit vit l l s roled ay) stae (US¢ (sen en s’ P ie ie STAT ERFOMANC (%) d e s s its quity ) ( ) d) Gr finacl ent ISTC oup) it y/asocite year finacl end ( %) from m 610 on F 30 or 1 6 1 20 ( 31 t ,128 ,521 4.8 12.8 18.4 3.7 2.35 ,018 1.6 34.6 ,738 1.2 1.7) (1.6) (0.1) (0.8) (0.6) 32 672 219 217 183 hs (21) 2.5 8.9 (14) 0. (12) t June 75 6 14 51 he (1) (2) (7) March 0 37 37 3 – – end ^ 1 5 1,48 to 1 30 4,61 1,539 2,086 1,097 3.97 10.9 15. 2.86 1.96 1.5 15.2 74. 29.7 38.4 18. 12.5 203 648 975 318 30 124 147 June 5. 7.4 (34) (2) 7.4 0. 5.7 3.5 29 12 95 26 19 49 15 74 34 For o to th ve 2,83 coinde e year 25,106 1,382 2,71 3,592 204 3.74 14.2 2.47 1.72 (14) 58.1 14.0 3.8 12.5 29.6 32.7 15.4 49.1 12.8 (0.1) (9.1) 967 32 16 14 150 39 350 13 9.5 6.5 9.4 rview 43 17 13 29 61 26 29 7 6 en with de the 4,1069 30 finacl 40,679 June 2,016 1,024 4,81 6,52 125.4 1,23 1.6 (14.3 2 16.3 3.59 13.6 2.19 1. (329) (297) 21.4 16.8 3.1 1.7 20. 12. (5.4) 53 20 589 953 6 13 254 329 143 05 4.2 8.3 9. (38) 47 27 19 75 year ) end 5,7194 48,39 MASB of (1,249) 2,4 1,63 1,067 6,702 8,64 1,053 15. 2,413 (27.1) 20.5 3.47 12.9 2.37 1.35 10.2 20.5 1.9 8.4 12.0 Tun e 627 76 17 863 103 10 28 137 426 5.0 8. 6.0 3.7 6.1 8.4 60 42 26 78 206 Air 5,7194 Sdn 48,39 (1,249) IAS 2,4 1,63 1,067 6,702 8,64 1,206 15. 2,413 24.0 126.5 20.5 3.47 12.9 2.37 1.35 10. 28.0 20.5 20.1 1.9 12.0 Bhd 627 76 17 863 103 10 28 137 426 5.0 8. 6.0 5.6 60 42 26 78
share performance
Share Price Volume Traded financial calendar
NOV 2005 12th Annual General Meeting (“AGM”) of the Company was held on 25 November 2005.
NOV 2005 Announcement on 28 November 2005 of the unaudited consolidated first quarter results for the three months ended 30 September 2005. 6 0 0 FEB 2006 Announcement on 24 February 2006 of the unaudited consolidated second quarter results for the three 2 T R
months ended 31 December 2005. O P E R L A U
MAY 2006 Announcement on 30 May 2006 of the unaudited consolidated third quarter results for the three months N N ended 31 March 2006. A D A H R AUG 2006 Announcement on 29 August 2006 of the unaudited consolidated fourth quarter results for the three E B A I
months ended 30 June 2006. S A R I A
7 the AIRBUS A320 – AirAsia’s latest family member
In 2006, AirAsia added 15 aircraft to its requirement up till 2012 and lock in the DO YOU KNOW THAT... fleet, seven of which are the brand new benefits of the original agreement. It Airbus A320 aircraft. The reception has goes without saying that AirAsia will • Every 3 minutes, an AirAsia aircraft is been nothing short of fantastic as for soon have the most modern and either taking off or landing everyone, it was love at first sight! youngest fleet in the world. somewhere in Asia. Everyone was bowled over as the • Our aircraft flies an average of 2.8 aircraft won our hearts instantly. The million kilometers each year; that’s integration process was smooth and we THE RIGHT TOOL FOR THE JOB an equal distance to the moon and did not encounter any complications. back, four times over. Simply put, the aircraft exceeded all our Apart from having a reputation for being expectations. The Airbus A320 has the most modern and sophisticated • Our pilots and cabin crew travel enhanced our image and brand equity in aircraft of its class, the Airbus A320 is 500,000 kilometers every year; terms of service quality, comfort and also renowned for its high reliability and roughly circling the Earth 13 times. reliability. In fact, the Airbus A320 has low operating costs. Compared to the proven to be exceptionally popular given airline’s Boeing 737-300 aircraft, the • Each of our ramp staff carries an the consistent and positive feedback Airbus A320 is at least 15% more fuel equivalent of 110 tons of luggage from our guests. Due to its proven efficient on an available seat kilometer every year. superior performance and popularity, we basis, while offering guests greater decided to exercise our option and width space, a quieter ride and • Our aircraft consumes approximately 14 million litres of fuel each year. expand the original order. unrivalled comfort. AirAsia will integrate the Airbus A320 into the current fleet of • Our aircraft undergoes stringent AirAsia’s purchase agreement with Boeing 737-300 aircraft that will be safety maintenance checks every day. Airbus is for 130 aircraft, of which 100 phased out accordingly as its lease are firm orders with an option to expires. Through this approach, AirAsia • We implement a comprehensive purchase a further 30. The addition of has greater flexibility to meet the needs service maintenance check (“A” these aircraft will enable us to continue of each market while building on the check) on our aircraft every 600 hours to drive down our aircraft and operating cost efficiencies of operating one – approximately every 50 days. costs, as well as secure AirAsia’s fleet aircraft type.
22% 15% 35% more seating lower lower capacity (180 13-15% more profit fuelburn maintenance total seats) lower unit cost per month 6 0 0 2 T R O P E R L A U N N A D A H R E B A I 18 cm 58 cm 10% 40% 18 cm S A
R wider fan taller cargo bigger wider aisle wider fuselage I A diameter door overhead bin 8 Introducing Asia’s largest & most modern fleet AirAsia Airbus A320 liberating air travel
AirAsia is popularising air travel, stimulating latent demand through clever and punchy eye-catching promotional campaigns. When we first launched our low fare, no frills concept back in December 2001, our aim was to liberate the skies and defy the myth that flying is reserved only for the affluent and well heeled. While other airlines were charging exorbitant fares to every destination, AirAsia offered fares from as low as USD 0.99 – less than a bus fare.
Today, we continue to offer our guests amazing low fares, exciting destinations to choose from, and our genuine AirAsia spirit to all corners of Asia. Our guests have developed a habit of booking flights on-line and planning their trip/s well in advance. Not only are our guests enjoying amazing low fares, but they can look forward to travel in modern, exceptionally safe aircraft complemented with high quality service from our friendly cabin crew who treat you the way you like to be treated.
THE LCC IMPACT
AirAsia aims to stimulate the market with low fares and grow the market to its full potential. When we enter a new market, our competitors tends to lower their fares to match ours. The principal difference is our fares stay low – if not lower, whenever and wherever we fly. This helps stimulate traffic growth as it entices people to switch from other travel alternatives while attracting first time flyers. Passenger volume on AirAsia’s Malaysian routes grew by around 11% between 2001 and 2005.
44% 38% 38% Passenger Growth in Airports AirAsia Flies To/From 31% 27% 25% 18% 6
0 11% 0 2
T R O P E R
L A U N N A
D A H
R Penang Kuala Terengganu Kuching Sibu Kota Kinabalu Miri Sandakan Tawau E B
A I S
A Source: Malaysia Airport Berhad R I A
10
12 AIRASIA BERHAD ANNUAL REPORT 2006 • • Amo • ev br of mo op Th HIG ar lo ad ye co th On THE Wh w e e al e d ar mp p e 2 a akdow re e re en co n it or LC H FIR ng ke io l lso wi M 3 co Fur dut the L erg red run C it Si gen T ae QUALI l tun gi we owe e enab owe he lo 12 nal car st mul ficen CT the th mu ro te on co auth y we th the ie jo sam e on o uce min awy ST to se ab arch it p 30 bri t by d achiev in n pr and s rat T ies. f r t m r nsid an LC DEICA LO TED aneo rmo l dg de mic rie t us es sen ti b ed are u ovides parkin it d o t TY th ur ng 20 or e com n is e arkin an CT erin he re te he for s per of ce it our SER V uslyit , fr was air r e d b no y pow w ies ’m s sig a , en w 6, im be l rminals. on om buildn g sig cra sim use o bays. g ations. team bays. g unw lcome ot on o ise unicato d w s t t n ajor ow ft a er aer built e ur ple e. il of using er ICE alow helps nifcat fuel move ay. necsit r bo ith ensu guest w e taxi Ther s obr cost the cost equ and Fur Kot i m can A If t g The n th num Th TERMINAL CARIE COST W burn T a year orksta an idg the time to us ire s. o d re ther heir K a saving transle we saving, clo e com L s. d exit are sh a is LCT reco amo OWER aerob impr es. me erou ther tha to y. ur . ne ulti in K ; and c mor carie cost low own Th no facilt design pact ablu few deploy p se oper io nts. unt beliv We the of ors p d airpo uching ove ar d bet task cost s con ost t n t us, proximtyclose the e, lon
signfcat are idge th COST nie of eriod roximt is tim e of the to ations t o t ise, he is eficn air ar e ter The d uplicato ger tribu saving he otherhe . saving cu is port n e owcase lp staf er to y t can terminal he ar ors r. ca aircf th us s o minal’s cy w rt ou o saved anat the becau th mont to e: star il ren Cost Low m t. es to in at ter ofn o rrier tly o as del get . se The hs. minals. to constru busy construi REGIONTHE IN upgr be TCarie e n r airp ther d was terminal • A LC B • • m pr esid ter C the ong ade e also T S dist on is dist have m User wit C LC m talks at hom ew o o t hor om rm arked ain no r would e f rates fair C ing f h ar ts th ance. from ance to T. inal no -fr pr extn to m term bet ovidng requ th e
notable h w nhaces ir eh iendly minal a with t ore e e
an (LC t e pr a e ir e distance.lking buildn inal sign o d m lo cone nsive r w to have se bus nt CT min blem 1 le t 40 han de al o u w E the d t lat de Th ). ed imp simp terminal he co e al 5 pasen ing efic ter locating
sign. to m st in rovemnts L e ar it ilo cat f single le Th stinao.
KLIA. at g xpres t to rvice m car n ly least at alk su s C n The e comfrt ger er C ctiv p tres!
ext ie T fo ce dep their asen w maxiu The cost and ncy (LC
r sect terminal t is te t entrac year . it Link Rail r e 1 b by s y. our At layout. lor ce n city he r h min 0 f e Tfrequnt are axis The g milo are: servic times thre , e are er B ir r and al gate. artue pe s exprinc.and an o st conetdis LCT premis,previous uild theto servic aircft the o gko n thesaving, it f year r in pa beshould clearyare ions thet o and tre ongi also k guest Thus, owntheir g inbuilt kind s asengr Jakrt and T) alking the anwith and seat
14 AIRASIA BERHAD ANNUAL REPORT 2006 e D h w sp co an T O t e m st As ONE ONE ONE ONE thems Ma – aset ind peo day w but Ma be they w w wi reckon t shor very i m o n ave h stabl e NE h ro e o up ay e m d po sur e p er have r Ai ci fam ask ny say ny C n kf artm out. mun vidual fam w a e have rt evr com g hol al r ou e or or le; i Asia’ope s ance she be e f y g has ce por our at ily d put ent ta icaton lve li in ily. th The family. Airsa, cultre, peol, or g r A in d p ONE OU ev nig ate pany us we mploye who s i th lent b of ’ro s li f ey s. int our ue m span ev PEOL R Cu a osp answer st pr o the n what cult ar pe uildng Ro l ug e and ro le rat y. shar nd eop cult exp s i lt a d to is ut in wn he 20 ust ion a e ur in es opl t’ t of act R e have le, t due s re re e pasiont nd xcitng re airlne dr in O e. Depar ev o mode ice is ime peol ONE thro prom rienc o n acros tand 9 simple is 04 the A ives nu ma
our e achievd. , in ur countr e al ur ugh . to te re ord our o design actives em. tm ot ultima cultre Mor a us de l am, core ONE ensur indust t e gion storie suce storysuce the ent philosy . er close ir beliv W e b ies Ku A he A tanlyimpor e asutain to gr Th whic values Air reg was al sia g e ONE , expand o e it - e Lu a strivewe ut r spirtirAsa eats e W eion. Asia oal awithn y in,day toforce viso ur ’ours mpu Airsa, – ou s, r to thein ed t n r o , S T h al F Cap ai ir e A st s tai o ir Ofi f Asi n i N ce ce a azl te Mar r i I am,
l Sh yan ke ah H ti a ng
ano wi
te t i h , am,
Vi d au e tn g Ban am h te g r ko Sa Sale Co l e rp s o s
orate Of f f ic i t ce e
C t u e e a l tu am, m, r e
Ke
te Xi l ap am, ame a G Ku Chinan, a d al i n a g , L Jaka u mp rta u r “ th for to us So G fe gra tra Me progam sucefl the tra Azm So TFer ony mo clo u it kid ue mal u fr i i me On th to se ch the at s
l rce: ned nig dua an to p ne ak Boe S st om Hashi ir bags, cary motiva e e ce ge to y o An tes pilots over 7 ing l was ervi b thes f t with progam mo a (B ext ly nades yone. a who G ope e atch ces, gradu m, ract 37 60 aunche th t and ca or eck-in nth our since u pilots Acount on som Let 1) from e e re ratio 18 and got oys cary I , st our est th in for and now ted ducati 2 in d
ar an al I n. 20 May under mer fr ben has M he C e ser af s, mo in ticle om wi bags o e hi the rying a 03 on Guest f Ca to want so om as ving Se L orm the alysi th of Out . a kids thes f Airsa 05. Air l nths bin Stre Wal Asia Eve pany? IVN nd progam gh c this staring wer We bags. er Asi S a Crew ly vi r
cabi I'm or boys, ramp the th flying the in evr marks est to t erv a of Oficer First a was he ater proud a’ F F n i O irst ca s Purchasing,n o da ice I When peol. my know ly and cadets, 19 of batch first e te ’s in ces 7 pilotdet staf,s theAmongst . devlopi about talks ryone F
ca ficers hasAirsa Academ g Of irst Engier brai the have plyThey ." Jo et G pilotdet 3 29 urnal, TH twoare ficer 7 ing. iny on 206.May E Fi pil adet acdemy. n fi Of rst 1 crew thi stared rst 73. bu ns, human ng from came progam, ot or , i you Can was Ther t chek- the at just they
capitl, I s, withn what magine I and met kid one din't we but D said, in. Companythe fi al I thehave brightthes do joinedwho RE " ce openLet's it.di doestha getto this ” AM . r 15 AIRASIA BERHAD ANNUAL REPORT 2006 more than just low fares
AirAsia offers more than just low fares to make the flying experience more enjoyable and convenient for our guests. We offer a host of value-added products that enhance our guests’ travel experience and cater to their varied needs. Our brand has grown in tandem with current trends in the market place. Our guests can expect the “AirAsia Experience” from the point of booking until they reach their destination – convenient online reservation system, friendly cabin crew, affordable in-flight food and attractive merchandise for sale on board, and entertaining in-flight games. Over the years, our website www.airasia.com has evolved into a convenient one-stop travel centre that allows guests to plan their entire holiday online, from making flight reservations to booking other travel related products such as hotels, holiday packages, health packages and even car rentals.
Go Holiday , AirAsia’s online holiday packages was launched in Aug 2003 offering guests the convenience of booking their holiday packages online. Of the total sales, 85% are from Do It Yourself (DIY) packages which comprise flight and hotel bookings, 10% from hotel bookings and the remaining 5% from the newly launched group package bookings that consist of flight, hotel, transfer and tour. Local inbound agents for respective destinations will be appointed to handle the groups’ arrivals.
Go Holiday now boasts 500 hotel partners in all the countries that we fly to. Our hotel class offering ranges from high end properties to budget hotels, enabling us to cater to all customer segments. Go Holiday’s large room allotment, newly designed web layout, introduction of multi currencies booking and aggressive marketing campaigns are among the contributing factors to the popularity of this online service.
Go Medic is our specially designed online health package to cater to the growing demand from health tourism. Currently, Go Medic has formed a partnership with two diagnostic centres with potentially more hospitals and diagnostic centres to be added to the service.
Go Holiday Theme Park which was also recently added to the service, currently offers theme park packages in Malaysia and has potential for expansion to other countries in the region.
AirAsia GoInsure issued by American Home Assurance Company, Malaysia is a specially designed Travel Protection for AirAsia guests. Insurance policies range from as low as RM6 for a one way In-Flight Coverage and RM15.00 for a Comprehensive Coverage. The product was launched in April 2006 and is growing in popularity. The Travel Protection offers benefits such as Accidental Medical 6 0 0 2
T R O P E R
L A U N N A
D A H R E B
A I S A R I A
16 We T p o as Air Air mo g sup Pr RM1 Air u C Aci Alth ED p and (RM w Re confir w w o u h sig he ro ue p op n p ol anc o ith irel or inc imb n G de bi rates b R to d pl dr
st u oug ld atu al ur sia sia sia i ) den oard Air uct o E le es .9 e l em m p ari i rs to s. of so o n sig llatio ver i urse p car al avilb nks r re atio M3 h to in Go Cr an ty w r C . u t of ho nclud Asi ent Ou . in devics. rde we 30 tr nat edit Insu th ed to p 0, h ard ne n fe n men odu oth ir er car ary a n dm
faciltes, els t r a w d r a r ure o C a exclu r caps t mar e to a excitng n Fr e er per Car os earch RM12 e o ced is re d 0 I d embr up t olders n
are e ange it coun This atea for red nte d n e i asi an tal o e n h d mo ket, joy an of erar cur siv to rr car Wekly n 5,0 lem d lo older ar s tries can RM20, ser n o-f r it of ers upt co e fre f or rently board yd etails, air with bi co d edm oking Car h d atr t ak g e ion, 0, craft vice f light ben l rills s. in also -brand e.ai flight to a olders mp B active ive san o at Click as wel as Flights i avilbe Fli the ptio ag en d in at service, cure view m rehn su fits a n acum s,b oo 0, rasi ght afo Per and gae re i from ch key to odels mob ables sued Manch Airsa fut ch n snack.and dwiches trodu Evacution the and Air demption 1-ye Del holder card nt Airsa’web s ure. prices. rdable b sive a nywh a.com wor as ch k,u se oices weo f n R RHB late a ay f ar ne a cing by and Malysi sia f ir waiver e R targ sytem oking an ile nd ac redit fer erei n HB f Aside s! am and sonal ph many d Me i Compli n ldwie Sna
meb ily B and ains estr ran w one 205 base Guest page Repat ank t hew e rchan Efect cardt op ward n c F and and me h th mor and kA United thes rom t ge Go acep o as directlys . ap of orl cho can s E riaton er beani nt t up s Po u PDA e at bokings th becam d, cater o Smart rs, d tt re-fo -Lif ar year's This . t of ne plans are co and ints 2 a fre tance, i y a se y me 160, roximately
4h mobile eting , ck 2 TRM1,50 o rip a 4 with ser Per xpens, worth for planes n has rchandise G h o item se a , h from ose dr faste he the to u u o e r s ur e R fo term e st a c fo s air first e e expand to M lo as prices s eivef li the nvert d ay. lect insu travel tha wards higlts o of deman A edical nlyr equirea fro sale r 3G,GPRS, any benfit ile lit the of ion an phones growin fod ot ght sonal r The0. th in line gainedalso m on the s tasy onesle asw si
ofrance cardfor m come A into sta s, our
such our take- d fod nce e line . w .airscom • • • hig web mak vi Vi t som Eve worl ove Su regi h e ei s rf wers hly it r 18 r o ry dwi ed sit ed ing ebo n. se 4. se e
it b by a de. 0 ea dy in 3 y t arc t s c
seco he u on 1. ou t ch wi h s h 1 e e m ntri m l e lin ASEN rs m d b n o on e o il ds es fro st . l o io th k m n , 17 AIRASIA BERHAD ANNUAL REPORT 2006 we believe our guests come first
8:15 am | SALES COUNTER AT LCCT | Zulfana Dewi, Guest Services 20 AIRASIA BERHAD ANNUAL REPORT 2006 1 of Air an serv fares, Ku 27 alo aircft Pr Se Sh ap Air Air D 9 Airpo ari D 8 cou an cam con th Air Pr agre Air 18 Y206ear Samd N 1 Y205ear D 2 Ranr Ku lau Air Novem mar e ime es D JA al ri o al n n ved K EC EC EC ear nt i j OV 20 w w g versa unct cer ch i sia Lu a sia’ sia’ o sia co sia Lu a an sia pai id Naj EC rt i enab ri men K ech id ngd Minst NU ent EM EM EM ket fr K at in ance to es. 20 20 ber w gn A s f s dh. E majo i it n b b io ev mpu mpu Tom o f 05 MB o h tro of t view om AR Th s. B B B ir G d me f t celb y w n 05 e er 320 lin A st Lum ual E E E ro in m in duce th pr as or the Y ER er R R R large n 5 t r t r T un A g P m C of o was ony alie d L Mal ith mad colabrtin e N e 2 exclusiv ulo Siam o Phn o n irb bo Malysi of d r an he o ced milon to irAsa d om rations
signe o re ambo us Abdul gkaw i ays Asem ationl ur g
direct se, ah its e bran nit ot and pur fligh daily A3 om 4th ia ed Fr aries. Nor Reap. HR dia, Yi. Dat AB 20, ficated r n d at aces Inter first Razk, fre a d and Pen re ance. year flight wider se in the ew dom 9M-AFA, an ach globa mileston T h. natiol public is this seat arde fr s f ts ven AirLIMA in ne Deput set to ofbly by he terio om rom uk twork d low in the th to y e D 2 9 S vi ce Cost P di DY A 2 in at ofi Badw tr YA M 23 in m benf establ pi D i ut avel si -Pert Ku trodu lo r th or ecmb rti ecmb aj B M ci te ra t t m e
udin fi L e C P Dato’ lau aly Lu al A d A
cate raing it Jam i agencis RIL A uan shed ar Pr i, R A cing
sub e ow e Seri arke C r irA r Tier e
2 to s H 2 alui Ibni 0 M ime Ser 0 m o scribe dis sia’ Cost n 0 0 ts go Pad 5 5 che progam. p ir ur A i gradute A new s via A XI, ng rm tribuon worldi th for sia YBagind, uka ang Tl-Marhum uank Airsa’h d new s of (King Car Inte bin bdulah inst and inal a and major rie Airpo rnatiol 5 over f Malysi of er t at home TSyeduank our from s chanel. Terminal s t first e whilee, Malysi) presntd AhmadHaji 0, wel Lowhe im (LCT cadet ome Syed e rt. to ) 2 8 2 2 May 3
Ap Mar ri 2 ch l
0 20 0
2 6 0 0 6 0 6 14 4 9 p 2 Asi Ai f p ci Ai Eu Ku 3 vi 8 Asi i an Yo h Ai f Ai 2 Man Man e b Asi G mpr Jul M an r r 0 r 1 - u 6 arth e om avi vil and sit oI A ot om M 9 rAsi rAsi rAsi rAsi d g JUN MA mani A comi ro al ay fo s t a a. P a ugst y n re yakrt ecti Lu a ove che che pean sure PR 205 quake 206 L Kual o o i a, h a d a a’ AY te gulato te Y joyr a r at n t “R s on IL E avit an arin ster ster 206 to Lt clo mpu th g n f oste espat io T rave and Ce a, part p sale a er saf n Man lucky ok laun d th in Unite Air ed ser au ry f e ump t r t d s ion in ide Asian ched De ne nt web l b ties Sol o ir por co ety re d f he In e Pr lo st f Jav ral ched rship ur tho lat p d vil” afet ote t. -in Manchest an lie irst fo Aerospac do fo rites, Th w layer etw A320 tegra ction, nfe r t w in y f rm 9 (AK ext nesia E p e cost a he work chest it . U renc pro en So AIG h olwing visteds f ra lane Air - and th Malysi ed 94) at carie mo uth in Asia lig the city. us er. travel Unit r to flew ind to tional ht S to E .E ast fro the ustry in aid . ed m Touri ofi A 20 M Wong fi to tal furt our A 20 A K A 1 A of ofi A 7 A the A A advent A 4 rm ual ir ir ir ir man. ir maz ir ir XN JULY JULY in Sabh Asi Asi bus Asi Asi l Asi JULY JULY JULY ci ci in her o rd ers i opt thr
a ster a , sm or der aly aly Par e i a’ a a a’ a’ Lum ng So e-tim ure A3 t ion 30 s s s leadin ano com M launched laun Y, A and new new partic R 2 f tner Ko n fo rt pur t aircft, w it h cab inst ace 0 acquire o m u Dat B ched and e Urban g
th nced enc le awrd-in Emy Kuching Kin Kota 8 t he
t as ipaton of er seri.reality Secon h, Brunei.o S interaol the or an chanel an e A i extnd p o p bin Musa uk Dato’ YB by Chie the by te fligh daily d Devlopmnt rb bring hus Sarwk. mb adito an wil we at us ti A hub ablu on er washub sian A 3 Finaced 2 t f orde he Oficalhe 0 or 0 2 nouced editon 6 0t andaction a n Minsterf fromts theg o1 Sri 40nal o Haji exrcis th was ing 0 afor and er 0 of 3 0 . A sponr with A S 8 C L Kual with OC 4 prom second M oficate new A A AUGS 14 field com sucefly The The AUGS 1 rat irA irA hoy A irbus irA anchestr ionalst EPT m sia extn sia launche sia m mar Malysin evryo for M , Tourism t Air TOB ote launch he fr ercial um EM Asia year b d the of e ket inster M Vist 32 it ade ER T pur o ion B 0 YB y T United fu E A and im M our de nviro with iendly R evnt cademyThe . ind aviton to Tof ransp fotbal flig l ne. in entry s plemntd its d it f a as alysi Dat f daily of 20 alysi Hanoi. partneshi a signed routes.domestic s me simulator ht F K Chan Sri o’ stae for Club otbal partneshi nowis nt jointlyto club Malysi.ort V to fromlights playinglev a -ofthear 07. hasustry new ietnam ong theat with was a 21 AIRASIA BERHAD ANNUAL REPORT 2006
AirAsia group as at 15 November 2006
AIRASIA BERHAD 284669-W
100% 100%
100% 39.9%
AIRASIA GO HOLIDAY CRUNCHTIME SDN BHD 99.8% CULINARY 100% SERVICES SDN BHD
AIRASIA AIRASIA (MAURITIUS) LTD PHILIPPINES INC
AA INTERNATIONAL LTD AIRASIA (B) SDN BHD
100% 49% 49% 49% 100%
AIRASIA AIRASIA PTE LTD PT INDONESIA AIRASIA THAI AIRASIA CO. LTD AA CAPITAL LTD (HONG KONG) LTD 6 0 0 2
T R
O 100% 51% 49% P E R
L A U
N THAI AIRASIA THAI CRUNCH TIME N A
HONG KONG LTD CO. LTD D A H R E B
A I S A R I A
24 Ind @ Da Ind T No C No John Abdel De Gro No bi Da Da C Da BOAR Jo A Pa Ind Da Ind Le Fam an onr h lte n h J ul airmn/ tuk to’ n n p n to’ to’ to' L e e e e up Francis n rnate B Abu -Exe -Exe uty -Exe eong pe pe pe pe Sri Fra Pah L K Anthoy Azi Al Da ohn Chie nde nde nde nde McC Da O D S eong e Group am cutive cutive cutive Directo ias ncis Ee Non- Khe Azi Abdul @ z ak nt nt nt nt (Dr to’ arudi Exe f mi ar D F corp bin Non-Execu Non-Execu Non-Execu Non-Execu Tiern C thy RajbAb. n r Ti Execu Val Dir Dir Dir ony S F ern hief cutive IRE Mer n r Ali Fer rancis eong R.V) Navr . ecto ecto ecto ey to Exe y CTORS D tive r r r Of anu ti ti ti ti cuti D ve D ve D ve D ve fi orate cer ir Of ve nades ect ir ir ir ir at or ect ect ect ect nam fi or or or or cer We E F Te M S 4 D 2 (C A P R F Te M 5 Jaln 1 A (M Jasm C F Tan R D NOM D Jo F D Jo A inf ax 7301 B 5-, ax 035 1th am am -m elangor rice irA EGIS OM EM ato ’ ato ’ at UDIT at UDIT alysi alysi o l l F hn F hn aics mp Sri bsite P arn Pah o' ail sia wate UNER L L R FlorWism , PANY ind INA LeSo ng LeSo ng e e any TE Trancis iern Trancis iern Petaling Lu Kual OR C loc aj (Dr) Dato’ Berhad ar 70 E Darul : : : : : : O C TION OF RED Ee Ee rim am rhouseCp P Jaln H, k S Laut 28469 No. M 02687) A Kaur ormatin w .airscom investor 78 (603) 78 (603) 26 (603) 26 (603) A S COMITE TION A in a M EC o@nn y o@nn y ITE mp Jay RETARY hsan Rajb b. OMITE S a Sar /P FICE R.VNavrtnm . ey ey ur 80631 80931 09793 107 93 im [email protected]
1/37JU ers LeKSoheneogen g LeKSoheneogen g -W) e ban Darby Singh (St (List R St C Sym S M M C DB A Tel M 50 S C C C Le PR Fax EC No. C M S B Secu B HB itban HAR om B TOC red OR OR apitl OLIC C andr ain alyn alysi esr Kual 10 M 26, vel 5 code: ock INC M ankers erhad A N S M Jaln 8 since ed ph B Suiseit m POR POR L B Bo K R E B rites ITOR an IPAL erc ank m B k B ibra Share ony Square E Sab Logan B of ard ro : : Ban Ltd.k A A XC EGIS erhad B ADVISORTE B TE Be harte (603) (603) Ban erhad Int S enar B erhad HANGE king Lum 2 erhad ANKERS rhad unsh 09) ernatiol 2 TR Berhadk R
Malysi Bank red Multi-Prposea ur Novem 2 271 2530/1271
OKER pur Berhad BhdSdn Registra AR sa apthy Abdulahi Malysi (“Bursa LISTNG Malysi 204) ber Merchant Co.&
”) 25 AIRASIA BERHAD ANNUAL REPORT 2006 we believe our warm & friendly service is second to none
9:30 am | INTERIOR OF THE NEW AIRBUS A320 | Rebecca Oh, Flight Attendant 28 AIRASIA BERHAD ANNUAL REPORT 2006 C S Ai ho ho rAsi ice t on a’m s of bo l C P T Fam Dat D Joh A D D Dat r ocat ig an ven au on at b at at il h d uk o’ o’ To' o P o' eston l n to t or el S L io ue Joh F L Ka ri A A McC e a n ran D eon : ah l zi li ny
ma of ard D n eft Ee at es. a t @ z Tcis s mi g our o a Fe ru : a b So r ' (D th A n i rn d Va n H ie Me in y
Ab. n b r) ande Ali rne l ea ny dul R.
d Ra y @ V. Azi s
ra Of Na ja Le nu b A bin z back a aginst ice ong va ra S Khe tnam bu Ba dir eo kar ng dr op depictng ectors 29 AIRASIA BERHAD ANNUAL REPORT 2006 directors’ profile
DATO' PAHAMIN AB. RAJAB, Malaysian, aged 60, an Advocate and Solicitor of the High Court of Malaya, was appointed Non-Executive Chairman of the Company on 14 December 2001. He is also a member of the Executive Committee and Nomination Committee of the Board. Prior to joining the Company, he worked in several ministries and government agencies in Malaysia over a 30-year period and held various key positions, including as Director General of Road Transport Department at the Ministry of Transport from 1974 to 1998, Secretary-General of the Ministry of Domestic Trade and Consumer Affairs from 1998 to 2001 and Chairman of the Patent Board and the Controller of Copyright from 1998 to 2001. He is recognised internationally as an expert in intellectual property laws by the World Intellectual Property Organization and, in 2000, was awarded the prestigious Cyber Champion International Award by the Business Software Alliance in Washington. He received a B.A. degree in History from the University of Malaya in 1970, a post- graduate Diploma in Shariah Law and Practice from the International Islamic University, Malaysia in 1991, a law degree (LL.B) from the University of London in 1990, and a Masters of Arts (Public Policy and Administration), majoring in Economic Development, from the University of Wisconsin in 1978. He is also the Chairman of SEG International Berhad and LNG Resources Berhad.
DATO’ ANTHONY FRANCIS FERNANDES (DATO’ TONY FERNANDES), Malaysian, aged 42, was appointed Group Chief Executive Officer of the Company in December 2001. He is also a member of the Executive and Employee Share Option Scheme Committees of the Board. Prior to joining the Company, he was Financial Controller at Virgin Communications London from 1987 to 1989, Senior Financial Analyst at Warner Music International London from 1989 to 1992, Managing Director at Warner Music Malaysia, from 1992 to 1996, Regional Managing Director, ASEAN from August 1996 to December 1999 and Vice President, ASEAN from December 1999 to July 2001 at Warner Music South East Asia. He was actively involved in developing the Malaysian music industry and received the title “Setia Mahkota Selangor” from Duli Yang Maha Mulia DiPertuan Agong, Sultan Salahuddin Abdul Aziz Shah in 1999 in recognition of his contributions and was also the recipient of the “Recording Industry Person of the Year 1997” by the Recording Industry Association of Malaysia. In addition, he received the International Herald Tribune award for the Visionaries & Leadership Series in 2003 for his outstanding achievement with AirAsia, and was named "Malaysia CEO of the Year 2003" by American Express and the Business Times. He was named the “Emerging Entrepreneur of the Year – Malaysia 2003” at the Ernst & Young Entrepreneur of the Year Awards in 2004 and was one of Business Week’s 25 Stars of Asia for 2004. He was awarded the “Airline Business Strategy Award 2005 and Low Cost Leadership” by Airline Business and he was also named Asia Pacific Aviation Executive by the Centre for Asia Pacific Aviation (“CAPA”) for the year 2004 and 2005. He was admitted as an Associate Member of the Association of Chartered Certified Accountants in 1991 and became a Fellow Member in 1996. In July 2005, he was conferred the Darjah Datuk Paduka Tuanku Ja’afar (DPTJ) which carries the title Dato’ by the Negeri Sembilan’s Yang DiPertuan Besar Tuanku Ja’afar Tuanku Abdul Rahman in conjunction with His Majesty’s 83rd birthday celebrations in recognition of his services rendered to the betterment of the nation and community.
DATO’ KAMARUDIN MERANUN, Malaysian, aged 44, was appointed Director of the Company on 12 December 2001. In January 2004, he was appointed Executive Director and on 8 December 2005, he was redesignated to Group Deputy Chief Executive Officer. He is also a member of the Executive Committee and Chairman of the Employee Share Option Scheme Committee of the Board. Prior to joining the Company, he worked in Arab-Malaysian Merchant Bank from 1988 to 1993 as a Portfolio Manager, managing both institutional and high net-worth individual clients’ investment funds. In 1994, he was appointed Executive Director of Innosabah Capital Management Sdn Bhd, a subsidiary of Innosabah Securities Sdn Bhd. He subsequently acquired the shares of its joint venture partner of Innosabah Capital Management Sdn Bhd, which was later renamed Intrinsic Capital Management Sdn Bhd. He received a Diploma in Actuarial Science from University Technology MARA (UiTM) and was named the “Best Actuarial Student” by the Life Insurance Institute of Malaysia in 1983. He received a B.Sc. degree with Distinction (Magna Cum Laude) majoring in Finance in 1986, and an MBA in 1987 from Central Michigan University.
30 ABDEL AZIZ @ ABDUL AZIZ BIN ABU BAKAR, Malaysian, aged 53, was appointed as Non- Executive Director of the Company on 20 April 2005. He is also a member of the Operational Safety Committee of the Board. Prior to this, he served as an Alternate Director of the Company to Dato' Pahamin Ab. Rajab since 11 October 2004. He also served earlier as a Director of the Company from 12 December 2001 to 11 October 2004. He is currently the Executive Chairman of VDSL Network Sdn Bhd. He is also the Chairman of PAIMM (Academy of Malaysian Music Industry Association) and PRISM (Performance and Artists Rights Malaysia Sdn. Bhd.), a music performers collection body. From 1981 to 1983 he was Executive Director of Showmasters (M) Sdn Bhd, an artiste management and concert promotion company. He subsequently joined BMG Music and was General Manager from 1989 to 1997 and, Managing Director from 1997 to 1999. He received a Diploma in Agriculture from Universiti Pertanian Malaysia in 1975, his BSc in Agriculture Business from Louisiana State University, USA in 1978, and an MBA from the University of Dallas, USA in 1980.
JOHN FRANCIS TIERNEY, Irish, aged 61, was appointed Non-Executive Director of the Company on 18 July 2003. He is also a member of the Audit and Remuneration Committees of the Board. He has more than 20 years of experience in the aviation industry, having served as Chief Financial Officer and Director of GPA Group Plc, a global aircraft-leasing company from 1981 to 1997, following which he become an independent adviser and consultant within the aviation and transport financing sector. He served as Chairman of Datalex Plc, a leading Irish software travel company, from 1998 to 2001 and was a Non-Executive Director of America West Airlines from 1993 to 2005. He continues to hold a number of non-executive directorships including International Transport Finance Limited, Aircraft Lease Securitisation Limited and NS Financial Services, the operating lease arm of the Dutch State Railways. He is also Chairman of the Board of Clongowes Wood College. He holds a B.Comm and MBA degree from University College Dublin, and is a fellow of the Institute of Chartered Accountants in Ireland.
CONOR MCCARTHY, Irish, aged 44, was appointed Non-Executive Director of the Company on 21 June 2004. He heads the Operational Safety Committee of the Board. He is currently Managing Director of PlaneConsult, a leading aviation business solutions provider whose clients include low fare airlines, full service carriers and airports. Prior to establishing PlaneConsult, Conor was the Director of Group Operations at Ryanair from 1996 to 2000. While he was with Ryanair, the airline underwent a successful initial public offering on NASDAQ and the Irish Stock Exchange. Before joining Ryanair, he was the CEO of Aer Lingus Commuter. Prior to that, he was General Manager/SVP for Aer Lingus in the Marketing and Strategic Planning divisions. He spent 18 years with Aer Lingus in all areas of the airline business from Engineering, Operations and Maintenance to Commercial Planning, Marketing and Route Economics to Finance, Strategic Management, Fleet Planning and General Management. Conor joined Aer Lingus as an Apprentice Avionics Engineer in 1978 and subsequently through a scholarship graduated in 1986 with a First Class Honours degree in Engineering from Trinity College Dublin.
31 TAN SRI DATO’ (DR) R.V. NAVARATNAM, Malaysian, aged 71, was appointed Independent Non-Executive Director of the Company on 8 October 2004. He is also a member of the Nomination Committee of the Board. He has held various senior positions at the Ministry of Finance, with last position held being that of Deputy Secretary-General. He retired as Secretary- General of the Ministry of Transport (1986-1989). His varied career includes having served as an Alternate Executive Director of the World Bank, Washington D.C. (1971-1972), Chairman of the ASEAN Committee on Transportation and Communication (1986-1989), a Member of the National Development Planning Committee (1989) and a Member of the Securities Commission. After leaving the public service, he joined Bank Buruh (M) Bhd as Chief Executive Officer and served for 5 years (1989-1994). He was Vice Chairman of the Malaysian Business Council, was a member of the Malaysian External Trade Development Corporation (MATRADE), Director of the Malaysian Industry-Government Group for High Technology (MIGHT) and appointed member of the National Economic Consultative Council (MAPEN II) in August 1999. He is presently a member of the Court of Fellows and Council of the Malaysian Institute of Management. He was Vice President of the Malaysian Economic Association and the Vice President of the Harvard Club. He attained a Bachelor of Arts (Honours) Econs from University of Malaya in Singapore in 1959, Diploma from Royal Institute of Public Administration in London in 1963 and a Master in Public Administration (Econs) from Harvard University, USA in 1969. He was awarded an Honorary Doctorate of Laws by the Oxford Brookes University (UK) in 2000. He currently holds directorship positions at the Monash University and the Asian Strategy and Leadership Institute and is Corporate Adviser to the Sunway Group and Deputy Chairman of Sunway College. He is also a Director of Sunway Construction Bhd. and Sunway International Vacation Club Berhad. He is currently the President of Transparency Malaysia and Chairman of the ASLI Center of Public Policy Studies .
DATO’ LEONG SONNY @ LEONG KHEE SEONG, Malaysian, aged 67, was appointed Independent Non-Executive Director of the Company on 8 October 2004. He is Chairman of the Audit Committee and a member of the Remuneration Committee of the Board. He was Deputy Minister of Primary Industries from 1974 to 1978, Minister of Primary Industries from 1978 to 1986 and a Member of Parliament from 1974 to 1990. Prior to this, he was a substantial shareholder of his family’s private limited companies, which were principally involved in general trading. He was the Chairman of the General Agreement on Tariffs and Trade’s Negotiating Committee on Tropical Products (1986 to 1990) and was the Chairman of the Group of 14 on ASEAN Economic Cooperation and Integration (1986 to 1987). He graduated with a degree in Chemical Engineering in 1964 from University of New South Wales, Australia. He is an Independent Non-Executive Deputy Chairman of Sin Chew Media Corporation Berhad and Independent Non-Executive Director of TSH Resources Berhad.
FAM LEE LEE, Malaysian, aged 45, was appointed Independent Non-Executive Director of the Company on 8 October 2004. He is also a member of the Audit and Nomination Committees of the Board. He received his BA(Hons) from the University of Malaya in 1986 and an LL.B (Hons) from the University of Liverpool, England in 1989. He obtained his Certificate of Legal Practice in 1990 and has been practising law since 1991 and currently is the senior partner at Messrs. YF Chun, Fam & Yeo. He also serves as a Director of M-Mode Berhad.
32 Bh d. Be rha pre d, sent FIMA i 1 n a ly and 975 C reciv orp Direct S ed ecr at B a P of or ion Min M a eta achel B ist r ast y e Indus os er rh Genr B in er o or ’Depart s ad, Maly t De t M ria E f th of al pa Devlopm l entak u co an rt sin s ment no D d & ia men e mic s Ru ab Ov Min e epar Ma s S 1 in t Se Under , er (H s ervi o tm ent th ber istry n D f ces 9 on age next e ent Div epa a 0 depa ours H of Ber Company
me H includ is oldi C s rt cre 15 ) fro nt ment ion the rt fr ea a ment tar Berh ngs om bi th in lth P w years ing (E y ne st ( t m rime p a , U the as Consult ar , Un t Min e st com he h ted D the Insti Asian e unti held he ost ab h M a ith Se der a ep d, nivers li Duopha and d inst a G shment t of s the Integra an ut stry ov an ple D y cy) er’s C he ernm Go c Tof and rade A o b PA DA Ju Co In Mr. Ma of ty Adminstr te r a i 1. Not 3. 2. 4. f ase etar viat rect
ve h d n De
th t U ve rp UL 23 on ompany T a 2 e o tue Rub ed John ent Se nd stm es: ni AL UK orat i d rnme Jun yIn . p o or Mast is o e versit None F None C None C A at The St ar VDA AL JOHN (n n 0 hi l N ami L n o o ten Biotechrma at whic 04, en tm lay nvi nfl an e Fr Tf rain ati emn M f atio Ma in retimn s rvi he nt, ly ond t ow ict Cor ber t en d of of of cti t se he B IAS Man ona Co y Tancis iern enda an H 1970. in ce IndustryH . Rel b h th th th in er angem Tn on In d of apointedwas he 20, e A as t t. o ce on. s) D e D e D e I a Insti l rad (Operati ng eg hel for rain nter wi tionshp M the in l ce agem le Busi Se vest ALI,IN Pr i i i B f rve re re re porati an Of as ing ge d of d e cto cto cto M oard pt min s io P of tue st var e th fe d Lond ment n O Phil nt, h rs h rs h rs o em r L, nces ey e i e Direct as es on moved e to nt istr seni ious f Di a n Brit fice an as an as b as ins als s Focus be Mangem s Ma D th on re e o joing divso
atio on. ban h fter ns) cto 20 r H 204. rch tin e D and Works of try th in r ish ipnes lays ubli 17 f y co y ir o rs gs n D n ect i kin amil f convited ag , the n or A B at bac Au Adm c ian nf 5 i p or o n or gra s t in viaton) Scot evl P . g S e lict r y finace aviton the of and 20 gust ap was 36, ed , oar b DV f to k a elations osi Publ the asumed and ent of rio The of usine t ge d opm duati ati w he Capitl, ia /or int i ni of e sevral in tions thi to r t d stic or A Bank B strai Dire er Majo Prim he ic 5 Ofi ent of w hip on 8, S w st He 5. f United he cto subeqntl He Departmn. wa enc ervi U the from on r he s, i ith Sh it rs' ofrecto ( Air h a s ces wit s e directo any INT arehold cu is point cerWhil . is Metings G, p l a had po 19 in AN) hin Bank sia in based Mi in orked A ed in rently King past the Group. ni ted ni d and ong sti st posi versi Sco Nova of stri S of ivson Dir lterna and/ Corpat the in discloe Indep is He dom. 75. es of tion Senio the r aircft Lond. t other years 10 o ty l or wi shar major di end f theth Mal withcare stinguhed
Head wh Capitl, cotia N nt of ector 19 from tia fo emarkting i ay Be g Econmis an Pr V ice r Air of eholdr joi y he fore on traf han He1970. n - n Ex ed Governac e Company the e of esidnt anyif .ofencs, fic cuti DVB joined 2 to 98 D ve sia. Fortisr theis ich radute i 04, recto the to in 3 AIRASIA BERHAD ANNUAL REPORT 2006
senior management profile
DATO’ TONY FERNANDES Group Chief Executive Officer
Details of Dato’ Tony Fernandes are disclosed in the Directors’ Profile on page 30 of this Annual Report.
DATO’ KAMARUDIN MERANUN Deputy Group Chief Executive Officer
Details of Dato’ Kamarudin Meranun are disclosed in the Directors’ Profile on page 30 of this Annual Report.
TASSAPON BIJLEVELD Chief Executive Officer, Thai AirAsia
Tassapon joined Thai AirAsia in 2003 as Chief Executive Officer and is entrusted with the responsibility of overseeing all aspects of the airline’s operations as well as driving growth in Thailand. He received a Bachelor’s degree in Marketing from Assumption University, Thailand and a Master in International Marketing from Thamsart University, Thailand.
Tassapon has had more than 11 years experience in the consumer products industry, having worked in various countries in South East Asia and Indo China for two Fortune 500 companies – Adams (Thailand) Co. Ltd (a division of Warner Lambert) and Monsanto (Thailand) Co. Ltd. Prior to joining AirAsia he was Managing Director of Warner Music (Thailand) Co. Ltd for 5 years.
36 SENDJAJA WIDJAJA President Director, Indonesia AirAsia
Sendjaja Widjaja has been President Director of Indonesia AirAsia since November 2004. He also holds directorship positions in PT Langgeng Gitamusikal, PT Pancabiba Manunggal and Sonic Mastering Lab Sdn Bhd since 2001. Prior to joining the Company, he was President Director of PT Musica Studio’s from 2001 to 2004; President Director of Warner Music Indonesia from 1997 to 2001; President Director of Hema Gitatama Record from 1994 to 1995 and President Director of PT Musica Studio’s from 1980 to 1994. Sendjaja received a Degree in Business from Willesden College, England in 1979.
ROZMAN OMAR Group Chief Financial Officer
Rozman Omar served as Chief Financial Officer (CFO) of PT Indonesia AirAsia, AirAsia’s associate company in Indonesia before his appointment as Group Chief Financial Officer on 1 August 2006. Rozman was part of the Management team that spearheaded the flotation of AirAsia Berhad on Bursa Malaysia. He was also one of the key personnel involved in the formation of AirAsia’s joint ventures in Thailand and Indonesia. Upon completion of the Company’s flotation in November 2004, he was made the CFO of PT Indonesia AirAsia responsible for all the financial and corporate legal aspects of the Company.
Rozman comes with over 22 years of extensive corporate finance experience. Upon completion of his ACCA examinations in 1984, Rozman joined Arab-Malaysian Merchant Bank Berhad for six years and rose to the position of Corporate Finance Manager. He then joined Bumiputra Merchant Bankers Berhad. Subsequently, he joined Kumpulan Fima Berhad in 1992 as Senior Vice President, Corporate Services. He later returned to Arab-Malaysian Merchant Bank Berhad as General Manager, Corporate Finance from 1994 to 1996. He then became Managing Director of Innosabah Corporate Services Sdn Bhd until 1999 before venturing out with InCAM Consulting Sdn Bhd until 2003.
WONG MEE YEN Group Financial Controller
Wong Mee Yen has been, prior to her promotion as Group Financial Controller in August 2006, the Financial Controller at AirAsia since March 2004. She has more than 20 years of experience in finance and accounting. Mee Yen started her career with BDO Binder from 1986 to 1991, of which her last position held was as Audit Manager. She then joined KPMG Peat Marwick as Senior Audit Manager from 1991 to 1992. Mee Yen was Group Financial Controller cum Company Secretary with Press Metal Bhd in Malaysia from 1992 to 1996, Regional Financial Controller with TV Media Pte Ltd in Singapore from 1996 to 1997, and Operations Director cum Company Secretary for MCS Microsystems Sdn Bhd from 1997 to 2001. Prior to joining AirAsia, she worked as a Consultant with SPM Holdings Sdn Bhd from 2002 to 2003. She has been a Director of Alubright Global Sdn Bhd since August 2003. She is a Certified Public Accountant in Malaysia and a member of the Malaysian Institute of Accountants (MIA).
37 KATHLEEN TAN Executive Vice President – Commercial
Kathleen Tan joined AirAsia as Senior Vice-President for Greater China in August 2004. Kathleen was instrumental in securing AirAsia’s entry to China and launched the first route to Xiamen, making AirAsia the first low cost carrier to operate in China. As Head of Commercial, Kathleen is responsible for driving route revenue, sales and distribution, marketing, brand building and ancillary income within the AirAsia network.
Prior to AirAsia, she was Managing Director of Warner Music Singapore for 7 years, Chairperson of the Recording Industry Association of Singapore and Regional Marketing Director of Warner Music Asia Pacific in Hong Kong for 3 years. During her six year stint with the FJ Benjamin Group Singapore, she was involved in brand marketing and the brainchild behind the success of Guess label in South East Asia as well as overseeing marketing communications for Gucci, Coach, Fendi and many other labels within the Group. Kathleen started her career in the advertising industry, having worked in agencies such as Leo Burnett and Mojo.
CAPTAIN CHIN NYOK SAN Executive Vice President – Planning and Business Development
Captain Chin Nyok San has been Executive Vice President, Planning and Business Development of AirAsia since January 2005 . Prior to this, he was the Head of Flight Operations of the Company from May 1996 to February 2004. A trained pilot, he has over 30 years experience in the airline industry. Prior to joining the Company he was a Co-Pilot for Wira Kris Schreiner from 1978 to 1979, Management Pilot, Training Captain, Authorised Examiner and Line Pilot for Malaysia Air Charter from 1979 to 1986; Flight Operations Manager, Chief Pilot, Training Captain and Authorised Examiner for Pelangi Air from 1989 to 1993, and Chief Pilot for Mofaz Air Sdn Bhd. He obtained his Commercial Pilot’s License in 1976 and Airline Transport Pilot’s License in 1985 from the Department of Civil Aviation Malaysia. He also obtained a Airline Transport Pilot’s License from the Federal Aviation Administration in 1994.
Captain Chin is responsible for the effective planning and business development of the Group’s operations, associated administrative and supporting activities that include Maintenance Systems, Flight Operations and Ground Operations.
CHARLES CJ CHOW Executive Vice President – People
Charles CJ Chow joined AirAsia in 2002. Prior to his appointment as Executive Vice President – People in October 2005, Charles was AirAsia’s Group General Counsel. He brought to the Company the benefit of a wide range of skills attained from a diverse background that includes experience in private legal practice, journalism, advertising and marketing communications, HR consultancy and in-house Legal Counsel to HSBC Hong Kong and IOI Corp Berhad. He has an LLB (Hons) from the National University of Singapore and a BA (Hons) from the University of Malaya. He now heads the management of the Group’s human resources.
38 BO LINGAM Executive Vice President – Operations
Prior to joining AirAsia, Bo Lingam has worked extensively in the publication and music industry including as Production Controller from 1990 to 1993 at EMI Music Malaysia Sdn Bhd; Operations Manager from 1993 to 1998 and Promotions Manager from 1999 to 2001 at Warner Music Malaysia Sdn Bhd.
He joined AirAsia in November 2001 as Ground Operations Manager. Prior to his current appointment as Executive Vice President – Operations, Bo held several other key roles at AirAsia including as Regional Director – Guest Services, Senior Manager – Purchasing & Supplies before he was seconded to Thai AirAsia to oversee and assist in the initial set-up of Thai AirAsia operations in Bangkok.
MEGAT KAMARRUDDIN MEGAT SHAMSUDDIN Executive Vice President, Treasury
Megat Kamarruddin, AirAsia’s Executive Vice President, Treasury, has over 20 years of experience gained at various financial institutions in major financial centres globally where he held senior positions. He was principally responsible for amongst others, trading and investing in foreign exchange, interest rate and fixed income markets. Prior to joining AirAsia in June 2006, he was Head of Treasury at Bumiputra Commerce Bank and Head of Global Sales and Global Funding at Group Treasury, CIMB. Megat is responsible for group corporate treasury matters, principally market interfacing activities which includes though not restricted to Forex, Investments, Interest rates, Insurance and Commodity Hedging.
ASHOK KUMAR Regional Director, Airport and Public Policy
Ashok Kumar has been Regional Director, Airport and Public Policy of the Company since January 2005. Prior to that, Ashok was Regional Director, Government and Business Relations from October 2004. He has had 36 years experience in the airline industry, having worked at Malaysia-Singapore Airlines as Management Trainee/ Marketing Executive from 1970 to 1972 and Malaysia Airlines from 1972 to 2003, where he held various key positions, including as Assistant General Manager, Operations Planning, before joining the Company in 2003 as Senior Manager, Commercial Planning and Strategy. Ashok also served as Chairman of the IATA Schedule Coordination Conference in November 1993 for the coordination of Northern Summer 1994 schedules. Ashok received a Bachelor of Applied Economics (Hons) from the University of Malaya in 1970.
39 LAU KIN CHOY Regional Director, Information Technology
Lau Kin Choy has been Regional Director, Information Technology since July 2004 and was previously, Senior Manager and Chief Information Officer from August 2002. Prior to joining the Company, Lau was the General Manager of WEB Distribution Services Sdn Bhd, a joint venture music distribution and logistic center for Warner Music, EMI Malaysia and BMG Music, where he was responsible for running systems, warehouse operations and sales collection, from 1998 to 2002. Lau also worked as IT and Operations Manager at Warner Music Malaysia from 1989 to 1997, and IT Operations Officer at OCBC Bank from 1981 to 1988. Lau received a Diploma in NCC Computing in 1986 and a City and Guilds Certificate in Computing in 1984.
AZHARI DAHLAN Regional Director, Engineering
Azhari Dahlan has been Regional Director of Engineering since September 2004 overseeing the Group’s airline engineering functions in Malaysia, Indonesia and Thailand. Prior to that, Azhari was Manager, Planning and Logistics from 1996 to 2004. He has more than 17 years experience in the airline industry, 8 of which was with Malaysia Airlines as Licensed Aircraft Engineer from 1987 to 1992, Aircraft Check Foreman from 1992 to 1994 (during which period he was seconded to China to provide aircraft post check support for China South West airlines) and Production Inspector from 1994 to 1995. From 1995 to 1996, he was with Transmile Air initially as a Licenses Aircraft Engineer and subsequently, as Quality Assurance Engineer. Azhari is a Licensed Aircraft Engineer by profession, and has undergone training at Leonard Isitt Training School, Christchurch, New Zealand and Malaysia Airlines Technical Training School, Subang, Selangor.
NASSER KASSIM Regional Director, Cargo
Nasser served as Regional Director, In-flight Services, Charter and Cargo for AirAsia before his appointment as Regional Director, Cargo. His prior appointments at AirAsia include that of Country Director of Indonesia AirAsia and Executive Director, Business Development managing AirAsia’s Haj operations, cargo, charter and Army contracts. Nasser’s contribution to AirAsia’s rapid expansion plans include managing routes development, negotiating aircraft leases, developing cargo operations, charter and in-flight services that encompass food and beverage as well as merchandising.
Nasser’s expertise in developing regional markets stems from his vast experience gained over an illustrious 18-year career at Warner Music Malaysia Sdn Bhd where he held various key positions including Artist & Repertoire Director from 1985 to 1988 and Executive Director from 1989 to 2001. As one of the pioneers in the Malaysian music industry, Nasser had managed some of the biggest selling artists in Malaysia and was responsible for marketing and developing these talents across Asia, where he gained invaluable exposure and a better understanding of the Asian markets and cultures.
JOYCE LAI LIH YIN Regional Director, AirAsia Academy and Corporate Culture
Joyce has been Regional Director, AirAsia Academy and Corporate Culture since February 2006. Prior to that Joyce was Regional Director, Corporate Culture and Service Quality since March 2005. Joyce joined AirAsia as Senior Manager, Media in December 2001 and was later promoted to Chief Communications Officer. She was appointed as Regional Director, Marketing and Communications in July 2004. She has extensive marketing experience having previously held various key positions at Warner Music Malaysia from 1994 to 2000, including as Group Product Manager and Strategic Marketing Manager. She subsequently joined BMG Music Malaysia as Senior Marketing Manager in 2000 before being promoted to Marketing Director. Joyce was instrumental in building the AirAsia brand name in Malaysia and the region, and raising its international profile. As head of the AirAsia Academy, Joyce is responsible for overseeing all aspects of the training needs for the Group’s workforce.
40 CAPTAIN WONG KAM WENG Regional Director, Group Quality Management System
Captain Wong served as Regional Director – Safety and Security until his recent appointment as Regional Director – Group Quality Management System. Captain Wong joined AirAsia in September 1996, initially as Captain of the Boeing 737 and later as Instructor and Examiner. Captain Wong currently flies the Airbus 320 as Captain and Instructor and is a member of AirAsia’s aircraft acceptance test team. Captain Wong started his career in the aviation industry with Pelangi Air as co-pilot. He was subsequently promoted to Captain and Instructor and later as Fleet Captain of the Fokker 50. He has flown various aircraft including the Airbus 320, Boeing 737, Fokker 50, Dornier 228 and Twin Otter DHC6 and has accumulated a total of 12,000 flying hours.
TAN HOCK SOON General Manager, AirAsia Go Holiday
Tan has been General Manager for AirAsia Go Holiday since April 2006. Since then, he has successfully revamped the business model and achieved a 300% growth in revenue. Prior to his current appointment, he was Regional Director, Distribution from July 2005 to March 2006 where he was instrumental in establishing AirAsia franchise outlets in the distribution channel. A proven sales practitioner, he has had an impressive career track record. From 1987 to 1993 he held various positions at Procter & Gamble (P&G) including as Jobber Distribution Supervisor, Key Account Manager and Section Manager. Tan was a pioneer member at P&G. From 1993 to 1994, he was Area Sales Manager at Cusson UK International where he was successful in penetrating key shopping complexes and establishing good customer relationships. From 1994 to 1996, he served as Assistant Sales Manager and helped increase both product distribution and revenue in the East Malaysia and Southern regions. Prior to joining AirAsia, he served at Warner Music Malaysia from 1996 to 2005.
CAPTAIN OMAR SHUIB Regional Director, Group Safety and Security
Captain Omar has been with AirAsia since 1997 when the airline was then under DRB- Hicom. He started his career as an airforce fighter pilot in 1980, serving the airforce for 13 years in various positions including that of Flight Commander, instructor, examiner and Flight Safety Officer. He then joined the Department of Civil Aviation (DCA) where he served for 2 years as Assistant Director Flight Operation, responsible for Pilot Licensing and aircraft accident investigation. Captain Omar was also an Executive Jet Pilot for 2 years. At AirAsia, Captain Omar has held various appointments including that of Training Captain, DCA Authorised Examiner, Chief Pilot – Training and Standard and Chief Pilot – Safety & Security. He was later seconded to Indonesia AirAsia as Executive Advisor, Flight Operation during the airline’s initial start up period and was responsible to assist and oversee Flight Operations particularly pilot training. He returned to Malaysia in April 2006 prior to assuming his current appointment.
CAPTAIN ADRIAN JENKINS Director, Flight Operations
Captain Adrian joined AirAsia in 1996 when the airline was then under DRB HICOM. Prior to his appointment as Director, Flight Operations in September 2006, he served AirAsia in various positions including as Instructor and Company Check Airman, Assistant Chief Pilot – Training and Standards and Assistant Chief Pilot – 0perations. He also helped in the setting up of Thai AirAsia’s flight operations and pilot training.
Captain Adrian joined the aviation industry in 1989 as a cabin crew with Malaysia Airlines. He left in 1992 to undergo training as a pilot. In 1994, he joined Nusantara Sakti, a member of the Renong group, where he undertook general aviation duties.
41 we believe our direction is clear & focused
2:45 pm | BOARDING GATE AT LCCT | Capt. Davendra Kumar, Airbus A320 Pilot
4 AIRASIA BERHAD ANNUAL REPORT 2006 P EXPA AS CULTU “AIR Ch AND FORC a ha ai rm O SIZE THE mi O ASI an NDS Ab. n BEHI E C RE U UR APEO ’S Ra . ” ON jab NI ND Q FLO TO TINUES COMPOUR F A THIS CORPAUE T PLE c A ORGANIS THE RE i a h NY D URISH E RIV TIO ING
N,
’ n a m r
s n e m e t a t s t i a h c ’s n a m r a t s co b Ai i m u g i T ai w acq su ye w N t Ai It o D ncep n h e sh r h n ye was rcaft ot ear e e rAsi ore ow ro rAsi rpo ce wi ar o hi es goi i r u wi er f ur e ugh nd ncre is S our abl ti n in a’ w as a po sfuly than th ate on o this gr g acquiston B six and t l h t pe s et io dif stan 14 h 13 ar ased t e pase . ano t o n cult 20 eh ow to new pr o icu ople d co e pr % sev f rgan old in 42 th. the milon th t lt co re t g od sit nge e er de Fo er are oe nti im nu isato ofit air have s m e t ion ano uce he Air n s, ing b r stinao lowin es cr the PASSENGERS FLOWN BY ntiu xcitng se ued mber grow g ing aft ase in 73 an n, uest AIRASIA GROUP (‘000) bus dif ou 1 drivng enabl ye at to t es our 1 2 3 4 5 6 7 8 9 0, 7-30 o g ther of 4 by ,0 ,0 ,0 ,0 ,0 ,0 ,0 ,0 ,0 th, i 0 rselv cu year o d pro A3 0 0 0 0 0 0 0 0 0 and s airpln ur since 0 0 f o indu lties, pr while e ar 20 8%, ur sper fo in u d lourish for ofitabl 0 stry. uni cary nd. rce 20 2 tos our for we 611 es que 6, e 0 3 1,481 pol to shari 207 R extr am I share maj tha may the Our resul t as the Wi M R IA U suce. eport M2 nder aly S dri thou i 04 ci o siz he chalen achie t 12, team
t ng t o rity m 42
b 2,839 and me t es, confid ve he wo s e sian e ing older the are y in th evn our pr ly n he vem beyo e he s A f A Inte ilon 0 the Stan uld c e ges 5 ent res of
an s, 6,289 cou great oud rep irA g pro et t ready ent om Company our have not o fruits p ou tha Howevr. , rnatiol With nd. p (IFRS) dar chale reat of sia’peo s onde ne orted tn hig and e with d 06 of Stan ntig m 206 to airlne 9,311 it figure fit the me on take o su our f remainsteam r ext b I and , se o of nt po ben Finacl vastthe fig income t veryon beingle motivaedly t wel remly under finacl Board’dar s great evn innges bewil rincpaly expands. ces, what peol ur eliv sible. ure er o , stand becau shelt invest the alown to paym surch It pro pro years inte R is price a was recognis M jections. f nsif M cap and it the ers go kept ar ar ent 8.4 m se Governm alysin the into ied. does d partily ge granted ce e very this and s, M the nt m alow tax Our Co The ilon. investm the an up ing yearchalengi ,
expndit ital futre no alysin m hed fuel p alow t the to from any thecushioned m span may efctivlyance curenton based competind deviaton acountig fueland ge Com the Com ure Thist. m tax taxaking pany fuel any arose pany by 45 AIRASIA BERHAD ANNUAL REPORT 2006 46 AIRASIA BERHAD ANNUAL REPORT 2006 H “WE EN COUN TO CLOSER TH BRUN Br We Carie pr saving mo hi Th re ste to hi and have lo lo ado th im g g ad wer o i chan e un nf p er hl o h ah p vi ved i i pt B US o act TRY FL TO Y fact m have n orce w e ei i i LOAD FACTOR (%) t n de ght o ed chan a ten Tr e ncr 83 f and s and our w us s ead ges f he 1 2 3 4 5 6 7 8 er EI t in s orI . hig f TRY th sif 0 0 0 0 0 0 0 0 0 easd ch AV rmin V TO ur It %. Cam op RI A ied ou bu e nu a ade TO t of quickly p ’m enh fare g her MAD E p he 0 N rth erat ( al signfcat ith in e .” N co 2 a EV cru is th he 66.0 our sine. bo GIN ances fuel D mb or in s qu roud LCT). mp OU ir com load e IE i ast to ons straegy dia, ent ord in CAM of er arte 0 T et 3 man’s cial co yearWe . G A RY 73.8 to A R NA iton petio thu our der t ry E st. This excit facto th th say US er tha w it br s OUR V o BOD servic to M, Ho 0 whe MBI L e force to cost 4 SEAN a as an n 77.1 ter bost t r ietnam, we using wevr, i be n have ow w at 7 o g wereby minal u d T IA, d adpt one reco 05 Co lev. ION 8%,
th e
tos 74.8 st st e d atemn 06 77.5 econm market the our im t to Ai A32 We operat co le rati an im rat AS cl o vel rb mp i age pl i EA ser onalist onalist he to m CA Ai positn A us a 0 em playin port etion cou N r P de ok ions. Co A bus o to and We s. ir T ent . ics craft 32 JAN mp m ant ur ion ion ed fi g h 0 ena and ntr liver the as in t E 32 any am T Decmbr in be o and eld ade ad do the
suceflywas t provides do yThe . t o us bles CH 0’ n as ileston of y reliabty. has It . tha liev biton superio s Augst 1 E N le ade market , A first our me i
rA mar to transfomed me si valu signfcat platfor he capture Malysinstic a’s fly costr b u wil we drivenket T 205. domesticthe This 206. stic fi Airbus evryto rst pilo tfemal withr new m he ild our for is e F posible. C Pahm brin alow wil you thank sim busine introduce a In to and ofer tesd th run team b alwys can hairm af g chale of the W e airlne. is m proven and an Ab in t fordable peo
o lowest
you for con to us ro new n re rom gin
we ple destin e R . ple
of al confide indu ajb Ne T
lo as and avilbe,fare O m to ravel and utes ongi r t NY
wo m busine ations asem have tinue to stick wil Q investor stryour , at us r M k U am the of t EK an to Asia.acros , w k a Airsa, Reg peol ore g ep tha suport profitably ascost e me Man ge ional odel our tobled n the t Ce azing to n tre r,
“ Grou Tony H WE 20, FLIGH GRO REPO TED PROFI CON SIN C p Fer WTH, SI A CE hief IN T TAB na ch gr TEN nd Exe I RA ALO I JAN es LITY C AV cut oup SIA ON ive ie E . N UARY ” O ’ TINUOS G FIRSTS ficer e f WITH xe oficer’cutive s r evi
e w 49 AIRASIA BERHAD ANNUAL REPORT 2006 50 AIRASIA BERHAD ANNUAL REPORT 2006 g e revi of roup xe ew fo gu com pe th Ou de de ev pr de pr face was Air De no fi ice A n c rel r e e i ZIA an ce anci est op di pr man t a ab r se su g n exag an one S r i d o sia cat ut mi esd le exp s’ chaleng i
c and abilty al A n res of il re tm d ha io r RIF i int d our per f ty of ater nce and n hi ’s iv Air t or ent reh e yield in su to th ect ger N, five fo th ensif pr and Ou Asia. rave ag ol ef e to e rman D is es comit ation fo e ation de u esur ain m cesfuly - ty eficny year ef was l nvirom ug rs, Exe rm com d and ce delivr and s forts tes a hest say to to e histor cut pe r of men robust i ve, an spiralng to pet ople’s years imon our gr ent. Kuch tha y o t are me a . anoe owth. iton alredy Althou co , own t f to y ing stron et 20 second we he H st uvre ade our go isIt 06 th fuel u have b g DESTINATIONS SERVED gh e als BY AIRASIA GROUP 1 2 3 4 5 6 7 0 0 0 0 0 0 0 0 whi 205. 9.3 A32 co sch fl 205. emb l to ai 42 an is tha num envi al our The phase path n to et, l ow al untr V d o edulin ch mi a so netwo one. 0, ronm 0 cost w G raced ber wil r for 2 us craft, i o 7 6 roup etnam lion
In ie end rep of W e s. im of the po very 206 to w f Not en co dai g t rk peo ing 0 the f Airsa siton caries cont has fro up 3 withsand ntiued b t, a sent hic past h 11 on the o p year special , flights ly ave t oprt ade acros ple
aco ortan r it ut new 13 ly Group he we year; the are m 0 with year this di open 4 26 its inued growt 48% growth. we and aircft 27 in esultd byunity aircft 15 difcu this thoseinto their ed destinao. 0 Airbusnew our or net our 5 caried mp deicaton Cambodi as
expand 52 oftoal a have
growth lishment Junein a overh 06 dors next theinto lt work, 65 It have We ST m and signfca num an presnc we wher fact growin and adresin and aim. far we wher is goal Our imp factors. load underpf term have the with pionerd we beliv lower 4% done have conse the yields steady to points – imp focused cost o out couple es RA ors signf roved result resiv of ber op Our TE angem f to 70 our GIC pr right far t albeit 78%, re orm signf have t chose inate le higer fare averg by hig consite this r the g op of su clear ou focused can po g with d a on d can discplne load Our AC discount e rout ing go We us. u g ent lie rtunies routes, number a d
icantly increas pot oducts, for ing 206 IN TIONS
we – nders s. beyond outes resouc m and vels conetrad W eroutes. ential lowcompet, o is servic reat Webe. might ino oferdand es have at com icant leadto want havefactors 3 by ward. planigroute r Weyields. and s wer routes 16 the in ntly rved expns the and agilty loadthe identfygin ourbost to of tha learnd delivr percntag routeson m aint arkets, m what ercial past a our of ar f o Ai e savi t 2 co We @ L co w b w re a n f D i driv We st su nd am e o n f 3 OW e e OM e i h atu fic rAsi rm rwad; RED l car st hu st b r e Mar li co w u si i pr e to m t e i ch sid al i ng str u ly in t ve ency. han n s of C gni it ES w a ope oved al i y t has y and es op 2 ch dr s F t in b me OS Th . mak nityan , ation MA TIC f Th . the k could his t ier d is ican ORT orkf l T For ort as Malysi ive ou e 06 e the dom R CAR e has is elivrn r he er S fr rcial M car al t. or unit Gover a aken Air b n AT th op r (L minal lon no t d Th . ar ce alysi
eg f e IONALS fair y is Asia ie RIE be he er rie ie io an s lo e ir num g nhace ations nm synerg e n st r. n. sign ger th estic rationali en dly avito n working CT tim We com w TERMINAL g d
the cat e ent’s re now if cost er icant reat e pr welcom on) to ceivs petion Airsa’d TION o ies ous vironm t alyst evr, an per emi the carie un n r step cost si equ btained low der sation st al l r hat W e. thee ent ent of ow al s Synt CA oper to secur ai i whi ben acqui opti A now super We furt ai del deci rel provi The A o n th s rcaft. rcaft IR P i achiev TS . he ab i her very l ur o BUS e de ve are A ationl n ti to ns fit ext sito nu e
i i U c l i c ority ef g ity flet rbus ou s s KH oncur F 3 with to This l of
ig 0 o of A320 D n and t nds m h acq fecti sa ry ex E T aircft.
t gre gr r 40 t of ag r increas, V cost b op In ep S orig ur ren pu er stru r supe u red ater aditonl IN with ve e p owth 1 o aircf he pro lacemnt our rcise to tions with tisfed orde rchase up ire Airbus of the At s. in locking tly G cto me H 0 , cost rio r, aircftinal he nt. Ai orde firm con wil we unt ipeln fur a to rb inuctions b purchase up acquire u airc etr we and t f optins Air A s sam A pr the 3 320 A320bus efctiv r econmis. isgrame aircft20
30ther the e time, s 201 il orde with tinue have oven or aft ato ly cam pro ben only M S M anot bran bef M Our suce A our m A and com our PONS irbus irA arkets ANC Th alysi. anchest mo due ore w guest com we as efits sia’ paign. of reliabty year her so new d pet sponrhi it cost, save the te HES A bran s ito OR petiv 320 we tha and United er rs. Ou S TER the to aircft
jo is HIP YMalysi “Vist 207”ear we togehr th enjoy il ar We equity d ph co-bran r our streamlin n thes UNITE
aircft. istcaed over advntge spo int extnd wil dr nevr withagremnt m also wil inducto newcapturing e certainly has resoundiga was enhacdand Twith ourism Manchestrde D notnsorhip comfrtbetr e ew eamt Theaircft. thes of the axim toeforts of our fordeal raised ise 51 AIRASIA BERHAD ANNUAL REPORT 2006 52 AIRASIA BERHAD ANNUAL REPORT 2006 g 4.9 24 rou .8% % 9. 16. 0% 7% 7.6% Di p 12.8% strib 9.1% c 206 205 u of excut ive hief 8 tio Sal Tr Inte Ai Cal . 4% avel rp M n O es l Ce rn or Ag et C t ix ntre fice ount 60. ent 4 6 .5% 2% ers co wel our dei prom Ai FUTR envi an scal t have econm co the co the our ch COM an ai num st an i It lo ai Un r r ng ar rA li li nfi a d en mp nsi al t d s it n n l t-up e straeg mar forth ex le fo e ronm si ca i ber as es in e nevitabl den our as he back i sten d PE ergt etion sing nges, is a m g o pecta ted fu r me it – s E an ket TION ore ic sale dustry one th t com en r t DEV wor stro asp, g ture ficer’s of ly fact fut rchan wel m ic intaves ic c in is cost It . U t. par the at “rationle genr s r a is ions. com year ing nge tha n d as l force. k posit Our . a is with re fer on apcity our tha and from ticulary angemt ltimaeyour , LOPMENT very is dise Th rowth. ot petior! e than r o eflction th prose implentao lowe the Air se have we hard
wel ated abo wory LOWEST e con to is pricng” Asia strong a dur aim Our competirs positn wil bitng is ion newctive
I and ver rou certain Group e review wil aand team we st, poular, f incumbet ouris cost excd theut today’s totinue face someen clear: brand, infare ing ahas am of can us NUMBER OF AIRCRAFT tes as 1 1 2 2 3 3 4 4 0 0 5 0 5 0 5 0 5 0 m profesinalm t contiue and work T chalengi. Co year The w the in into m str f suport m the of Yfaith ours Grou TF ony 2 ad ar u 3 T M I ength m n yo for ch h one d and ketplacs al ai su our e p o C p aysi l n and the in any Air e er sia orld. a hief 0 the of A or na Asia 2 3 ap inovate ensur o was 06 A 7 uly, n u posible. ces Of Executiv irA des irA co r deicato he familythank , low leading o sia’in positn s ahed. years sia. 04 ntiu e our f CAP devlo to 13 4 thefor suce andexcitng T. andinters ed
Airb O mp wil roach N ficer 0 andn us 5 Y loyes cariescost veryyou Groupthe p 19 6 2 hardTheir A3 H behalfOn ARY AD 2 0 its
Pi 0 l o 6 I, t 26 10 6
our safety measures meet world class standards
3:10 pm | AIR CRAFT PARKING BAY AT LCCT | Ab Halim Hasan, Technician safety
AIRASIA CONSIDERS SAFETY TO BE THE SINGLE MOST IMPORTANT ASPECT OF OUR OPERATIONS AND IT IS A CHARACTERISTIC THAT WE WILL NEVER COMPROMISE. AIRASIA IS STRINGENT ABOUT COMPLYING WITH THE HIGHEST INTERNATIONAL STANDARDS AND PROCEDURES SET BY THE MALAYSIAN CIVIL AVIATION REGULATIONS. AIRASIA’S TECHNICIANS AND ENGINEERS MAKE UP ONE OF THE MOST EXPERIENCED TEAMS IN MALAYSIA, WITH YEARS OF EXPERIENCE IN THE AVIATION INDUSTRY. SAFETY PROCEDURES INCLUDE STRICT AIRCRAFT MAINTENANCE, CONSTANT UPDATING AND TRAINING OF TECHNICIANS AND FLIGHT CREW.
TOGETHER WITH BOEING AND AIRBUS, AND WITH THE AUTHORISATION OF THE REGULATORY AGENCIES, AIRASIA HAS DEVELOPED AN ERGONOMIC WAY TO MAINTAIN ITS AIRCRAFT WITHOUT IMPACTING OPERATIONS. USING A MODERN SOPHISTICATED SYSTEM, A HIGHLY SKILLED TECHNICAL TEAM AND THE MOST ADVANCED TECHNOLOGY, AIRASIA CONDUCTS PERIODIC CHECK-UPS OF ITS AIRCRAFT VIA A SCHEDULED MAINTENANCE SYSTEM. WITH THIS SCHEDULED MAINTENANCE SYSTEM, PREVENTIVE MAINTENANCE CAN BE INTEGRATED SMOOTHLY INTO THE OPERATIONS, THUS INCREASING BLOCK HOURS AND REDUCING COSTS. AIRASIA CAN THEREFORE KEEP ITS AIRCRAFT FULLY OPERATIONAL FOR THE ENTIRE YEAR, AND MORE IMPORTANTLY WITH ENHANCED SAFETY.
TOTAL SAFETY MANAGEMENT SYSTEM
As part of the plan to continuously enhance safety, the Company has moved to a total safety management system. We have integrated an active FDA (Flight Data Analysis) programme whereby the parameters of each flight are recorded and analysed. Our analyst examines the parameters of each flight to determine if there are any traces of irregularity. Therefore, we can effectively detect any complications even before it happens! Not only does this system elevate the safety standards to a higher level, but it also saves the Company significant cost by avoiding last minute surprises. This system also ensures that we continue to deliver seamless high quality service.
AirAsia is constantly in discussion with the regulatory authorities, manufacturers and other operators regarding trends and improvements in the management of Air Safety. The Safety Committee also examines these developments with regard to their suitability and adoption.
56 investing for the future
AT AIRASIA, WE BELIEVE THAT the latest and highest quality equipment The Academy plays a strategic role in WHEN PLANNING FOR THE FUTURE, and training procedures. The Academy developing the skilled manpower ONE SHOULD NOT BE “PENNY- is equipped with a Maintenance Flight required for our continued growth. In WISE, POUND-FOOLISH”. THAT IS Training Device (“MFTD”), the only one addition, the Academy provides us with WHY WE HAVE TAKEN EARLY STEPS available in the region. This unique autonomy from cyclical market TO INVEST IN HUMAN CAPITAL AND device allows our pilots to better adversities and control over our human INFRASTRUCTURE IN ORDER TO prepare themselves for a real flight. capital. SECURE OUR FUTURE. We added two simulators during the year, bringing our total to three. An AIRASIA MAINTENANCE HANGAR AIRASIA ACADEMY additional Airbus A320 simulator is currently under construction and should The maintenance hangar opening was One of the key highlights for the year be completed during the course of the officiated by YB Dato’ Seri Chan Kong was the commissioning of the AirAsia year. With one Boeing 737 simulator Choy, Minister of Transport Malaysia Academy. The Academy is now the and three Airbus A320 simulators, we back in December 2004. This was a one-stop training centre for every have effectively secured all our proud achievement for us, and the AirAsia employee. This ensures hardware requirements to train our country as well, because the facility was consistent quality and service across future pilots. Together with CAE, we designed and built by Malaysians. We our operations and homogeneity in our intend to develop AirAsia Academy as believe in our home-grown talents who culture. It matters not if you fly from the aviation school for Asia; we have lived up to the “Malaysia Boleh” spirit. Malaysia or Indonesia, you will be met already secured the type rating training with the same gregarious warmth and organisation status from the Malaysian The maintenance hangar has already high quality service wherever you fly. authorities. AirAsia also intends to contributed significant savings. The provide simulator services for other savings will expand further as we The Academy serves as the platform to airlines whenever there is spare increase our fleet going forward. This keep our people on track with the latest capacity available. Looking ahead, we facility provides us with the flexibility to industry developments and incorporates believe this could potentially be another implement preventive procedures to best-practices. We have invested source of revenue for AirAsia. improve efficiency and gives us significantly to equip the Academy with complete autonomy from relying on a third party.
57 58 AIRASIA BERHAD ANNUAL REPORT 2006 Y angon Phu ket K Ch BA rab ian Lang Med Su NGK i g AirA rat M an kawi Pen O Ch ai Th K ang i an ang Pek i H Ra an at i Ba Y ai KU Alo ru Pad sia AL r Nara a S A n et g LU ar P Ud th ale MP i Ko o wat JOH mb n UR ta route T Ku h a OR Bh ng an (An a Sie la a i B ru gkor T HAR m er Sin R eng W eap U gap Bat Ub at Phn gan Ha ) am or o JAKA no om n e u Ra i P tch RT en A a h th a netwo n Ba i n d u n KU g So C lo H (Yo ING g yakart a) Su Sib ra b u rk a y a Bi K J Ku Ko J Ba o a u nt Brun ka h n a chi ta u o l g a rta l r ko Ki u ng L Bh e na Miri u k i ( S mp (K a (S b o ru u KOT a e u ch u lu ka var Ba (Se r i r n ( ( no nab A Te LC l g L n i KI abu ai rmi I C Hat nte h NA A umi T M n irp e an rn ta al a rmi B ati cau ort In 2) I A nt Ba n onal t L ) e e al U r r l ) n ikp n ati at A T apa i ir on a on S p wa anda or al al n t) u Ai Ai rp rp ka o o n rt) r t) Cla rk X (Man ia me i n l a) Ye Year ar a
20 206 ward 5 A TH N • • • • • • • • E AW ASEN B R A and A Wi A M Tony for B Transp A Invest
wards usi egi si si est si eri A ner a’s a’s a ARD-W re & Transp nes onal/L t si A Investo Fer
Aw or ircaft “B B ort P a in est j nades ointly Pol est ard Aacif (Tony C fou ow-Cst ort omp B LEADR Deb R r Under of for udget cate r M organ I elat Fer FinaceAs.om o any N alysi was CAPA viaton Deal t cognit NIG nades b Airlne Bilon” A a ions, gorie Lead b ised awrde Exc f Airlne (CAP A) of s ersh in the Comite Most nd ) Ports y Aelnc war d Best cluding SmartTy un ravelAsi.com IN Ain ip ward LOW the of Forbesby Year Pacif Asia the TR ASIN AFORDBLE Sdn World Jane’by T s r Y 20 ear CARIE.COST conju in Busine Airlne M an and Bhd St to d Centr by 6 CompanyBest aged , AExecut viaton Fin ansport with ction Divden rong the der Charte the Asia for e AStraegy war ance anu the TIn Best rave th of ive un Policy d Instiu ed APacif viaton Corpate Tal ranspot Ye 20 ear 205 ds AV list206 l The der Logistc of e Governac, AND EL Centr by 05 Airlneby (CAPA) Industry Anual 59 AIRASIA BERHAD ANNUAL REPORT 2006 the people’s airline
AIRASIA’S PHILOSOPHY OF LOW FARES HAS NEVER STOPPED US FROM BECOMING AN ACTIVE PARTICIPANT IN HELPING THOSE IN NEED. WE REMAIN VIGILANT ON COSTS AND CONTINUE TO HELP WITHIN OUR MEANS. OUR SPECIAL GIFT OF FLIGHT AND LOW FARES HAVE ALLOWED MANY TO REALISE DREAMS AND ENABLED CARING INDIVIDUALS AND ORGANISATIONS TO REACH OUT TO COMMUNITIES. AIRASIA ALSO CONTINUES FLYING VOLUNTEERS AND NON-PROFIT ORGANISATIONS AROUND THE REGION TO HELP REBUILD LIVES AND COMMUNITIES AFFECTED BY NATURAL DISASTERS. October 2005
OCTOBER 2005 Captain Chandra Mohan (Flight Operations) and Thanam Raja (Marketing) spent an afternoon with the youths and children in Batang Berjuntai estate. Captain Mohan shared inspiring anecdotes and talked about his experiences as a pilot to a captivated young audience who later received gifts from AirAsia.
9 OCTOBER 2005 AirAsia launched the “To Bali With Love” campaign and offered 12,000 free seats to Bali from 10-14 October 2005 to support the people and the economy of Bali affected by the October terror act and contribute towards reviving tourism in Bali. 9 October 2005
DECEMBER 2005 AirAsia helped make it possible for aspiring gymnast Kong Pei Ling to participate in the 23rd SEA Games in Manila, under the Aerobics Gymnastics women’s individual category. Pei Ling who was the youngest female competitor in this category finished 7th place.
19 MAY 2006 In our efforts to support the growth of our young footballers in sports, AirAsia flew the SMK Sultan Sulaiman, Terengganu team to Bangkok, Thailand to compete in the NIKE Manchester United Premier Cup Under 15 regional tournament.
December 2005 30 MAY 2006 AirAsia mounted extra flights to Solo to aid humanitarian and relief work in Yogyakarta following the devastating earthquake at the Indonesian city in Central Java. The flight carried voluntary workers from various humanitarian and relief organisations.
7 AUGUST 2006 AirAsia contributed wheelchairs to the Ex-Police Association of Sarawak for 6 0 0
2 disabled members.
T R O P E R
7-11 SEPTEMBER 2006
L 19 May 2006 A U
N AirAsia flew 32 athletes on special fares from Kuala Lumpur to Kota Kinabalu to N A
participate in Malaysia’s First Special Olympics National Games held at Likas Sports
D A
H Complex, Kota Kinabalu from 7-10 September 2006. R E B
A I S A R I A
60 Official Low Fare Airline for Manchester United
AirAsia’s partnership with Manchester United Football Club (“MUFC”) was formed in September 2005 with the objective of using football as a platform to promote our brand around the World. This relationship yields mutual benefits; we are showcasing the MUFC brand significantly in Asia and in the process attracting millions of football enthusiasts all around the World to Asia. Ultimately, this will drive people to see more of Asia, knowing that they only need to spend a fraction of the cost if they fly with us. We also aim to tap into Manchester United’s knowledge and resources to help inspire football in Malaysia and create opportunities for Asian fans to get closer to one of the world’s biggest football clubs.
We have collaborated with the Club on various marketing activities. Our specially designed “Red Devil” Airbus A320, painted in the Club’s colors and featuring some of the Club’s renowned personalities, has created a big buzz in Asia and the United Kingdom since it took to the skies in February 2006. In May 2006, we flew this aircraft from Kuala Lumpur to Manchester and attracted thousands of viewers at Manchester Airport. A joy-ride for Manchester United fans took place a few days later through a special promotion with Century Radio FM.
AirAsia has also helped link MUFC with the youth and sports development program in Malaysia. As the Official Airline Partner of Football Association of Malaysia (“FAM”), AirAsia together with Manchester United hosted a training program for the Malaysian National Under- 20 team at Manchester United’s training grounds at Carrington. This training program culminated with a friendly match against the Manchester United Academy team on 10 May 2006 where the Malaysian boys beat the MU Academy team 4-1.
In September 2006, we extended our partnership for a second year and brought in Tourism Malaysia as a co-sponsor of Manchester United. We aim to work closely with the Ministry to promote Visit Malaysia Year 2007 through our partnership with the Club.
What do you think of AirAsia? AirAsia is a fantastic partner for our Club to have, they The partnership with are also leaders in their field – the first no frills Asian airline. The partnership shows our appeal overseas and AirAsia has helped us get reflects the millions of fans that we have in the Far East. closer to the millions of This partnership can bring those fans closer to fans we have in Asia. Manchester United, connecting them to each other in Asia and even giving them the opportunity to visit the Theatre of AirAsia has been an Dreams. “innovative and active partner, even branding
one of their brand new Are you looking forward to the Asia tour next summer?
I am really looking forward to the tour next year, as are the team. We have toured there many planes with our Club’s times and to some of the team it will be no surprise to see how fanatical the fans are. However name and player images. for the players that have joined us this season it will be a shock, many probably have never The plane looks fantastic “ experienced anything like it. and the interior is Asia is beautiful, full of diverse cultures, history and people. Every time we tour there I am always impressive. I am looking surprised at how beautiful it is. It can be tranquil in one part and hectic in another, everyone rushing around attending to their everyday lives. The hustle and bustle of the traffic, street traders forward to touring Asia and I have even seen elephants on the streets – simply amazing and nothing like Govan! next year with Manchester United. Any message for your 40 million fans in Asia? The team and I are looking forward to seeing you all next year. Keep 6
supporting us! 0 0 2
T R O P E R
L A U N
Interview with Sir Alex Ferguson, Manager, N A
Manchested United Ryan Giggs D A H R E B
A I S A R I A
61
A Co Co co T a T n h h . m d is B e rp rp mang sta pl orat orat D dut and d may D Exe D D and re gue mai The j go and The a As Exe G Re The Bo D fo Se Su udg oar i D Fam D D D D Na A Joh C Tan M Ti ir ir uri ir rou IRE t ed spect de r ( ven co staemn qui ect ect ect ar p bde on mo atu ato ato ato ato i umt em nt Gove e Gove e r es cuti cuti an st N co d si co com is d ng em servic ate stra me C p B d F n CT Gr Sr hr ain ly r Le l h ors ors’ ar ors on- ze ed, Al k Le ’ P ’ K ’ A ’ at so o Wake thy ib em th l M r m ve ve oup of of K az equ d 7) oug Dat i Az OR rpo d nt erat nt Trancis iern balnce , hief ed al nt eg posit ahmin amru nth E e Exe are risk f e at Dir Dir ot d b ias ong io suceion cCar In iz e is rn rn nts. d ave S pr of y ir rat hou p ays p e for nce han @ as n i escr ion Exe ony e rp ( o’ n ed mit ance ance. cutiv fo end th of ect ect So ye ancil he actie, g e Ab fu in thy The rovide xe in din t t rmat t
n a DrR. V.) . at e filed th (r A r ibe A or or irect cutive Fr he rio ed ances necsary Grou stake ny esi and l overn he rcised of nd Dire e dul Com e and bin the have Rajbb. Board are s d s, F ancis li iden ho s g ey Grou Board to the io (ap ne year to or Ros Met in d any @ po b Azi aces Meran plan o etails n com d ef e ar p’e s main po ance holder Le Ofice tifed Bo ind are Navrtn t w ben ctors on Board on in cr p, pan siton. th Metin fectiv Dir unde ernad 2 te ard nde ings ong (re com positn he epnd set M 5 isue xpens. eir Abu in tain d in ing ector pr is Se y sig on
un contrl and at eat to w f r Th s. apl have Me orde princ 20 ay r b of ne ar Khe N a prise 2 out revi stand hig ng for the iograph 30 Mang gs. 3 es acti cont hom e d cretay, am etings, Directo i ent wi ied on Bakr Se who s for value bel Boar e stra as such of w separt perfo to r 0 S e wid a June apoi Di pro and ples t with ew 6) advi p ensur to sed 1 gover e o rol te are th F 5 char n o eong rectos wi mb pag on ies w: . the thin servic an d ce Boar e al
Non-Exe The ebr who and led r e ntme 20 i d gi o er s she n-E emnt uary 20 D of ange of t 06, r also s ve n hareold m ac have se to s Airsa and cter prin he irectos ser also corp of ards xecutiv cle a ith n t to nts 5 2 supo d pa on ) and egy d their 0 Board he vison Group. acount efctiv 0 6) 30 es requi is tha esponibl e and skil ciples reciv th of es Board he indep k t 30 ges monitr ers, judgemnt a l to ces B divson ar tha in ve Dire cutive Othe uties. sevn Chairmn, the rts e Group the corp of o 3 to perfomanc in is rhad Directo of e to ed best and gover rate Secr Co mpany e agend the of 3 o Bo ensu for w xperinc to and Anu this f for capity pro dent gover rate an informat respo of p (in ctors ard’w role, s . th in xplain profesi r its mets achie the asured. abilty with compliane nace a held rs as practies Anual this the nace, t also and mange senior tha ring se a and a advice fesional furthe betw nsiblty set nace T Report. al the articul helps hic vario the of vemnt of comitens nal evnt e re other of toal to is hic who etary recods d pro a hat aproite Non-Executiv by proces out set Board The Th Report. Board of t Malysi’Bursa Listng s t sponiblte the tha t in out metin (6) six Comite Board us ensur to r Board he them.en devot Chairmn) obje busine detrmin balnce per the in capb ful ly is Malysin the in the of positn.t proces onCode Malysin he the whic c o paers o roles e t consider cano timeln At 6 6 4 6 5 6 6 6 6 o 3 o 3 o 5 furtheanc an Directos o o o o o o o o o ind tha and Group te Non the th equirs ut ut ut ut ut ut ut ut ut 6 of ut 6 of ut 6 of ut long the nd th and gs share its o of of of of of of of of of tha ensur ctives, powe of andChairmn f a dischargn of le 6 6 6 6 6 6 6 6 6 is Group n informat ntaig place in are hasit hat ce epndt me me me me me me me me me m m m timesuficent e -Executiv onCode theAl s. R advicethe also dutieshis of etings etings etings Non-al at directonterm twod obse rved. be t etings etings etings e e e etings etings etings ofdetails e e isr tings tings tings holders, cord direct in the 63 AIRASIA BERHAD ANNUAL REPORT 2006 64 AIRASIA BERHAD ANNUAL REPORT 2006 me Co Bo reco wou apr the comp rem Mr. The No pro sucei it in im Bo r makes mang The to pol fi The und reco ensu Di Co tr Di Re Pr audi req Du Di reg he l me anu are semi Ap The Bo Di revi evr The C s nd e dep ogr r r r rect pr the mpan ard. nd ard. mpr -el mi ecto ecto ecto ri ard f old p i Co gr ui ul ci e
in
Co er
G subj une Mum ng t me l oved oin me th y R N A ovem ti om re d o ors wt , nar res al re ato co es, ber ame in s nat ame ectio or gs end one ng Bo em rou u om or C reviw The Ad l th mit is em ar d in y mit ar rs ar rs w r lo dit tm rat ect w s, eco o ry re the s y’A s at s io om on Ts’ r C he tha flect th n wi n t by enc un fin e ha p nt ard. taz nda ndi ina it F n diton ent mainly g C n Co io ho ide n en in e qu te to plan mplian acor f nt year ind e are s p e e e men (“ te blig of er part mi o n Kh he te a al h isg en tio m e . a
in th tion GM int t ts T . om imp s om he a is ancil re m t g ant and atio nti MA in at ram te Dir th ro le an me f din ations aly, an r n e o s he ni mit Boar in s, t u er being o ct dance mit Execut fied er vide o t em Dur . eviws point ir point um cial ap po int m stry le endac es ce, th Comit P”) dations Co n g g. t o em Com ed au nal ewor ect ceasd and ite f g th t f such skil le of in-hou o vel te the year bers, t ts of e Boar e me he he weakn Repor Boa e mang e d rame ent anuly. or pre indep ing are of de with are an mit with di ed me ive d o (inclu k co held Com m s nted Bo r f rem ditors, arlie Low pu al end scribed by o se the it conside m velopd mp to . to Direct esponib t by nts work iscu eligb ard su d no te ting rd en t. e fe ual T et. info em uner Se mit rotai nde five the he t ar se be t rise pro as
end year finacl e Cost e r 3 d finacl blished in m t he are com ding th s th as The 129(6 ction reviw Grou it ent S rmat Di re ct or th Board Co mebr a for e help to xternal, nomies able cedur struc are ation tand co p es Th Malysi. Bursa by me unde in is whic ors Ju 0 Bo their ring n t et to proe ofer to ye e mite thr prise n th C mp of Articles judge Indep wo ilte ef the overs E e Comite e Chief p close e at etings about ion t in ard on-ex ad ar at Board the as No to ayble Al ards. 206, ne th s Gro e rstandi f es ries. on t rise each arT . xecutiv un s s made rly an res men osveevre n t a e new th the or o ) ectivn cur in cutive also Comite he co he up
ly and s dertak Fin Anu No e pro emslv th f hre end and t whic so examind view o g of mebrs Aso the rent r and staem ap Board of mebrs ancil Dire th ured me for comp y Companies e 30 d acor nomiat tha , urse eva fin f not is Directos, n-Executiv Non-Execut Ge al Group in em n-Exe skil, riate estima. t of s Th makeup. perfo Directo t of ciaton t by n ap wh eviws ctor th so June info al t t with ts lega ance, aygeoeafy r s the of the luates OficerGroup , with dance e resignat his f was er re- for to ointme p and nts Directos e Meting neral lin to as gaps. etncy authorised disch the Directo cutive curent s’ t pointmes, particul he atend and me inter he the of Board the reviws also ap tha the 206, Audit the on and rs shal year Nominat the ab the d o elction and necsar rmation extrn he an exprinc Directos, ive Act is Directos Th lection. mo also It th ethr isu ase ey atend ul Board’e s t rewads k Compan audit ost techn and 1965., Dir a as ion e skil, the o arge audit al pe year Bo the e also are imp to ropiat Fina ind an raerqeu i Rem f ove at have During Com Non e (“AGM dire akin tw rs, are ey be au al the f n e t an f su fu f pr y lem ito C cial un act e cto rf in g un A ar he sub isu ical uct in f m ect Non -E o Dir in o ce on C th ch d o o dit d n r ctio rt bje d er sutbrtomeh idet m se l rm n it in e d ir th s xp te rT . an ”) an en ctio ovid xe es ing to io icle cou om te C al by cto ive ject o e or e o is y atio io n e f o div er ct ance n aco fin cut wh -Exe t n or e arct ut h de ct in s B d nt can n f s, such p Gr e ne n s. o s mit at rTh . r its ien f e e rag to de t ie o d n an ) r T es. r o Co th d wh ive ye ancil ole t via rs o t and s o te oar ual o and s b p r t Co agin cu f an ce sh an r te gr e m h
er un o eco cu t e at at int as h e Aso Dir n r aine d d om be om Dir al at m up e tive ivat -el an r am e are mit d ist d t and he are sing t t Co r is fin M d e o m ’ C t ind is in s m e to re ics wh b a d he d le at C su d st e he it Dire ct mit an o d ct ho ake in ciat and exp gr an , it at e e ar p in m e. ke ion e om t b o ast ot te o te No th spo e r cial rn te e g de lde et en rDu . ou least n n alnce io e T ato he n r e make p e qu atio rn d cto e t at dat e ief he er m , m me t est pe ct h it d m n ar r min p t e p nsib pe de co al ap s C e t S r p also n ire tise it e o pe A ry up e h in r er t nd r io e nal rin e e ade icu te p o rfevo-eras p p oi nt me nt op s sh rs con ro e re s’ at nd h d t t on g e mb -t d f o nit at o n ap On s. om n e le and or e also e rf d by le al t s g n g t fo 30 h rt en o lar w n cr io p nt at r or f io t ro ir he o ce man in t qu am e p side xp b n mu he w ice, ro ext pan C n Jun o d o h re al r t r r Th . e M r t. man r or a val g e t o e st id r e pose. y in al At s. emrgin with d h ate an l er signfcatAny . repotdand d atha vide n d re h m g yearthe During , p tu e e e theconsider whic neratio AGM f objectivsce omite.
itaon andBoard e y r andal t theof ructe an ienc, Comite e th eof half a e thes andes andentifyg undereriod Directosthe fornites t traing Anualyce. q pointme, yearhe thet countig Secrtay riskd inonce ire al lith xternal uired the206, asagemnt beto The excu The • • • • • Pu Du The dev reg Ai Co mon FD Re (MO The Op maxi Op Co the Ai The the Gr thi The Gr per fal r and Gr tr A The an d rA rA ou ou l ou C s rp mi gi mi viso wi ri ( A e e ard hi Bo fo Co Co Co
sacti ng si si rati rati O E E Rs) ths onal mu C p an p) C p l reco To Oper To the To To thr To o each ose eg rm o gh Fl om xe SO man a con a th ti per in th pme ard rTh . mit mit mit r ve t t re en re en ant o o i ulatio oug
i ght an t g est anu for E hief F hief cuti th n r are on M ns Saf nal Dire e e mit C S fin e me ati ’ag s to d vie vie ati amo se ce, sure sure ren and s ole al icp nts E e p Analysi) Dat also A ), sid ho the deg ag ve on C e te te te on o t w t w n evi e. cto ancil ate exrcis al ang A ut inacl and ds xe mit er t s e ate, end SO Airsa ndatio bd or C the tha an s r. wit un al ety e ment me h re o rec he he Am Air s m niort cut r to hero omi m wed ul t nsure olds Safet of r h irA Whe a. nd er, safe ident Com of of Td r ate Com sum adeq p al re Dire ive bin Azi t year ong Flight w ns egard e im e ts sia. are ive ite and y Safe to safety tr Flight Oficer, place and F m a an f aing o rs t ade s y lig mar op a s anspre an ify prove com mit t arts such uacye , mit of ach con oth end e Co re ’lim s her ht t ty S etin t d find t f nu eration to sam ctor repo ised te Oper e rog Abu the ers, apro o m afety, prise Operat infor of quate q he d o d in stanly b o d d from men f other the 3 d mbe the uarte it apr t i the g fectiv establihd was n Chief the and he p in ame of elmnts r gs, rt or e. Group’busin s etr ocure t e it fun the iscu (No Bakr Asur Quality ations 20 matio su ir h cyAirsa . Ju 0 w Exe reco priate, of s t
ts TFDA the out from eam Directo Regional o r Flight te e mate the Board- i sin he Board ope Airsa opriate io t and ensur to 05 mine h ecom safe s in in ns ye f it of rms 206, ne th Vice-P cutive compr t Grou th abilty n p and nes airlne he ctions repo nce iscu airln e re reciv is (“F Analysi Dat mang e o ars mo gle th as rs le clu . compr n-Execu lace port ove vel & ty Chief p par e ref sion i ding the se an men ndatio Co a as w es ser f Finac of ration wh are e b may to s the of s ado d ern th e to exis im st secu ise q rts mange ticpa the in those emnt erfomanc with d. Comite o rsight Direct tive er we as vice resid E r Executiv C adminster Boar the datio the at streng c d Safet ting mang and s nfidetal ption. Executiv Fligh ance, Oficeral T . e requi e p uartelyad , on the of an isue, rity ngier p the by st a evlop regulato fal hic aspe ortan eligbtyion, , d be to Peop ent, (No McCarthy or S Air of made are ns an Thailnd find ling Safety f was airlne DA” t thend C Dire of d Dir Regional or), a held e qu each t the as l h Oficer the , the of d. o armets an elibratd ESO the Secur it & y ). the airmn, R their withn Co Of Safety t authorie y e Posthld , the dres afetyand , C Legal he and rong Depar le S porting actio emnt its of ct m Secu & devlo d in hroug mite C Airsa e at ctors opti t gs, oper th to o toal In d emp art n of e De ar e M y d -E t rit r at Gr op n lev f t e e lo me isue yst r e con on fice t d d m s, t of o
e r xecu he p ing mat y n f ye Bo h E e u o
ach f ect p o ds, t e esia. fo ang em n e or nt t R ris r nse
f Co ut e ach u site n h an r act es’ atio re e s t of ls ard u Gro cid anu p m an gin and s st e o r or Gr y t o f tive are vie r an s fo r C e m t o l e at m lig Bo of o n em er d e M Al e d com he h nt up valu fact au s o r io w r
m d e e esp f t ht Dire n e F and s e ie ou t F b d S make r ual n an ard d et A h en h DA n in it xam ing ar f u he sh t gat e ligh E g t y C p ur h ate afe m eciso in ig F r ir on d e C P t an t or M r e T eam Gr acor o h S ct xe t er Qu gs. h e are h it ine r o ligh se o also Op t st C ty h ity h d h est nd e or r p afe an s e cu eco su m oce er e at ie no is o f alo et T . Co alit and o
r d. atio up r ns and f pan o o B in ed at t t t t dan
ive ult g in e p L e r in y Exe exam r o Cr h o d w se m e Ocu y Th act Asu y de rat er t n lear , g. ar w is cat n e e g to es ur est y’ Ch t t Of ew ce s ade at rn plan ic co ial air e d d th t ion cut int E s e t as s it est an ion r an h io at ion le by w e to r air alow il t ec n e in en ice ved e C s, r. nal o r ive xte io d ing pr lin ith r (b s d r it e m s/ ance e n ablished act re n de t , t h rth , t s pe t s, The anlysed. t e onfedback ive Of h fo in st al an rn ec n safe rib fedback and n h arn h h e d theon ased su ce Airsa. h objectivshe ie ra Legalal io us tosecrtay theof r o u activean as f , es Deputye
anhave to f icerthe, d tors there tha maters ns. froming ondeci theto tion repots Board.the withandrs Ramp security& ty thre ing Pilot, reducing Boardthe to 65 AIRASIA BERHAD ANNUAL REPORT 2006 6 AIRASIA BERHAD ANNUAL REPORT 2006 B. D 5. 4. 2 3. 1. The D of The posi be we th fo In th In Co Trai i smo The com Fl ro Re tr D ndu . ain etai IRE uri i ad t thi yeare , r w es le ght me mi po are he ne i re Co r n Co ng t cti i o ng ive de n di Di The cont Bot Ser in schem Sal The Bo in Boar The Basi Rem The Fe CT ar s l Si o t r th of s past an r t d i mun ecog on th ti di de tme mit mit rect t now b ly be nu on ari OR te m er t h vi vice Air car o w re Gr basi fe w ea p o f past e n ract velop sal c th d, une E d pr ulator dual’p er s avo e es t , end sche s t nt nef e he man y includg S’ n ors’ 20 twe ar e ou o P ur active takin rat Directo e te te Co he ised pa s scape gr with n as REMUNA ar salry c rat con w sia hic with its en o p t o Gro a y e e in ion am 6 re e lve sh 1 e ry id De also was ilots, io g as t yable g rain me
e agem t m 2 m o dep perat
n we up brid int source ract m self a packg ar par ly d. A mon ho as viewd vice Slide form Co es. the irAsa. o e th adre Ch delight end to aco o on ove rs’ Eng fe for gin re ite m a es to ent (t s ths, se e
Par
ths, ie pt the ticpang lead edback nour ai ance suf rem men each Traine . iner each co e E f r e m ions nt
wo
ite project sed on TION with ticular anu bon wi ficeny the ting unt hig ed ed Air MO the eviwd xecutiv uner ed on rep in t t e m the dur Airb Execu at of A to sch us
sucef also airlne p the pot any aly. to various Cabi g, directl ramp est
resntai t o expand sia Direct up t rise out set are ation rat in wh the st has Academy The E an in ensuri aten in the tha note us parti t g pe he i active and o es n D tive Of safe A32 ilst Non- he ternai em i y rfomance Bo th thin and Crew n ci folwin he share ors’ ential paid was ion perf th ng th U tr the nto pate i fo salry f peri f e for ve apr final for ard Gro Deputy and cer an 0 - mad and ty E i SE E e recto in ed xecutiv employs, al or of measur ormance stand onal od. airlne e proble E an in e t R prog A on d C contiued particon SE the
cont a an rends ext formaly in the of troduci b recomnd is and aing durin optins Boeing e the in elmnt g simlar r Ground being ms
isu to we and Safet U-SEA Dir F for ame implentd ly number a e the ate-of A ards. and roled for ectors indu airlne Fin Audite of safety satifed d share by oval the divual, th of n positn SEARIF of Operations h tha es 2 73), chekin line the end s:- pro are E Chief up th includg in anticped ye the g clasro art Instru light A320 Airbus e req of S Mangemt y se their f discplne Gro the pe our h and stry A tha itself Staemn ancil b to ud Remun the y in arisen ad ACivl viaton EU-SA 3 other in pro FDA its Flight 20 p inflato of holders Regional (“SEA peol. end ar Ofice xecutiv and uest functio g Executiv e t on rvice and ople toge up, and advnce Tctor raing World a oast m ben ave compan comparble and ashion advers no s during TDevic raing h Academy Airsa The a is and other index rice Gro the June 30 is whic grame recomndatis in Seminar ystem s. Comite ration guest. ar Board he with her page on s T Directos. past the t ra have , o in airlnes For Initaves in involed fro Apart . int built traing Clas tesamn physical he investd th at up trends 206. informat and project. asemnt an recomnd e adito in s of 103 han was year t the o servic hre-ya AGM.e estab wer critea he interaolyies . m to rde Gen the showing alredy andLumpr Kual is whic um”) hasAirsa tha, ongi the in avily the to aproved and Report. Anual this andraing Ful with facilty majora played as fromn tha ensur Dorto n Stering ourto Mangem thefor eachof lished. dle theby bodya theby During very ent D. C. asurn than over the The the eval The the ef The in bef An in At Gi An ope The Fi AC que com eng fut St in Re the The bri MA Au sta pro The acoun p In Inv Me i A is The SH reaso n G te vest acor cl n ve t faci ate e ect ur que y por n d C ARE M f se Mal Au or an en esto per mbe ude SB h em racti fi Bo Bo Bo rat Bo sti w age D D Bo rep uat el ti ual C it t n OUNT pr e A e ngs . th e nable men l ive cial or an ts, ir ir on me it io unit o d ap l di i aplied y in aring in the ti h ard ard ard’g s ard ard minat ect ect ate Gen HOLDERS aysin ag ce dance R r of rs o om in ns co nts o ries ng GM siz e C t and s osp o nes elatio stae ancil an g m e A n. i incr , f n ith are y Rep th h ors ar ors o t by d rove stan acur ela conf ov has aim atche t An ABIL om m no th t , ects. sen h er t e, t and e f e et dialog ain m d sh l f ite coun e with overn co r un tio [email protected] he Di o h mply eas nual Code mite f e to s he al d irm f ave e a tin r a ina dars. , st e ITY he ing cem ior the lso An t acy ns r angi acount T supor t ar e st inacl areh re Group Me num r eral ncer m e con s s re ue he ensu and cto geo Report risk g ance the an e of cial share man with quired he is men AN tha avilbe try heir ateril et sytem en Repo ual sponiblty olders he ber with Ch Corp rs' List ing graph espon In re s an ts CEO of D year sid and re ted its d agem ts. ld. polices p finacl this views in the air of the Re ter AUDIT and failure by older erabl tha st g (“AGM”) in gardin atem the mist man The fo orate by
abrod p d are spo ical and risk of Req g na Com ter sib proce co wil . for ent the rt Acoun andr rmal reason Sen and Board the Con l in during resnt and ms ilt aim primay safeg whilst value not ents, n diverst reflct los.or atemn down of in to Gover tern Companies ensu for importan 1 Act, panies for siblty dire are fo y th faced uiremnt p a clude in was s with the of ositn quar if chan ref of the busine achiev brief a nduct Boar al the of ied trol Gr e cont al and s th th an able ations t r an ts th at load fu re terly nace. of y fin Dire e the by Group’he s met e
ernc invole ctly oup l use els an sult ring to ce ,
in anlyst, ancil fair give an d ou s roces as rol Comite d repo given to is pr d t place Prepai of 19 Act, m ior ctors tha shar r 965. me Grou its ing. and nou ay p is Gr e Grou t a Bursa to d udent rts, Mangem pre f cash d operat requi an eting uard at ob jectiv s Company the rue dir be re for ensu have hroug of sytem S acur resntd oup sent eholdr in in d inform made cemnts and p n fina anul to 65 and lationshp aproite har and p Board the fair and Fina the g Malysi. th e ing an judgemnts ’ ar eholdrs to ectd s on ation the by d wh sytem a recod ate t of lows C at websit a sent d relat vestor prea regu for h the ut Co sh stiuonal shareold the base, b wil airmen page on t. tha red Group’aset s o can and s con interal mp of view t intervals throug , aco keps S ncial sta cial C Malysin Invest the Group the and any Gro he und year re lary of copy fin the an ing encou e com throu w .air t 69 s t ions est d aco the AGM the ich t e a u ar t r d view e ancil g wh ap is me p nly abo sta t te p t p o he h ro un eh er imat hr o ’s o r h un re T s. Bu e and ag m an is R r re wh l, nt r e Au ou p 73 icato ich o u p asi.com od ing e e Gro t evi o e se p ro ld t un e w as s ing r elat an es, th nt he Co sta g r of t d r r w as Malysi, sa ro en of o e e t es dit vide f o n p h it ing t o ich r s ing syt re p e th t af t p o an s an w w n u r
ef s m ion C able riat pe em n m t at p A his e er n o Co r cor po p ’s com om r ta d e airs an ar De s f f iod im easo f any it t e rf . f d e ad in t as l fe e he A d ticp t sh h n d ce ive or is m rp lices ina mit up ct n n he r ic t wh s o un po AGM pr of in s man nu or iven p o s nab fo th o R ual t m ate p a ise t te d rt to are ar h oad ate he an cial t r R al t r
de b e h ant e aco t e, man tm have f d ich e ce t le an h
in r in es e o h h Go t th en sign sh e he o usin Gro e e f ep e an o o and o f e ld ye po nu t n o el t ce n age o dat in h be in d f rd ver isclo o re t r er sur r w th ed p e at um u b oce rt r al rt an e no an ar aco an th as view swe vest p Co s. s at can,w hic and s . rs. o en usin na e t e t e and yearcial . ro f an ce evi withse Gr of m o aplicbeal ide ntifyg,for s t le co o ce hat abs r ment d w ce. d regulay ro r rd
e ap municato o as atCompany sh investor shareold s ofw andnsitely andedings outlinewil rathe ange, Thes up. theugh withance theith informat s olute finaclthe days21 t areholds’ onrepot A proval the of 67 AIRASIA BERHAD ANNUAL REPORT 2006
B. Co Du M COMP St A. T T TER Du T in he he he Dato Jo Fa te and e mi ri ri mbe rn C C A F hn Le m n n MS (i (i At who Aco The Me Tr o Tr o Pu th g th g co al ards. hai om udi i) ) Le ’ OS l t audit rp OF o rs te Trancis ier m o east evi evi Au rm t E e f e f e ar m C • • expr i m ose unt ong IT f nt b he it to an ew ew t f ersh o ust i i di RE e t rol te n n OF ON mit s. Kh year ancil yearancil , Aud he In e C t get of g is e ne A h h be n is FE r and r and i enc mu e mu e saf o cou ip th om e he de RENC me te ne ot me a Co e w r THE ove mite pe S ecom epo m a y an it nta eguar st st eong w nde ith Co ber Nam be have rned mb d:- m est as rt end em the COMI m OF m their co A s to a is
sh d of er (C Non t ite by end e ber pase ed me hai the Audit ct, apoint THE the ite of sup to ablished r areho ate of o man the 30 mbe th to the 196
Board -Execu Audit TE m ate also th COMITE AUDIT fo 206 June discuo a led en the t d ndace Com 7. Malysin o r f ld ed Instiu Malysin e l th METINGSAND E he lo Board investm ers’ Comit o f e qualit the on terms wing Dire tive t by Co examin ne it are m b a nde Bo he reviw e fo the of , i set t Inst ort t i te:- e r Comite he ations ctors. ap te ) ard out the itue asocit and y r of riefn the roval, o n and t D of be Board E specif o its d of efrnc of te n low:- g p an irectos Acountas; result the the e the by o erfomanc ac co of ions discharge Par in ied h Acountas, efct wn Quartely to a held Group’aset. s : repot audit xternal the of s No com is d I In n of I t depnt depnt Dir n-Executiv resp their u by ivens five of tal spe untas or Re the f Dire po fo asemnt 1st the mu e po ct in r t ts o sed In on ors t of onsiblte er rsh meting (5) h st Directo Directo o an nal o o Schedul ndertakig P in cifed B ip at f ave u ector r M sa le ternaiol d le at e
3 ast on cusing xt and alysi mebr The s. a maintg e of I art 3 ast Aco u the f r self-amnt a n me au al No. ye ReportingFinacl mb for ares 1st the d Atend Metings of o ars f it er t he t s, un 1967; Act, ntas f An ctio wo h ofsytem sound theof s theof Schedul e 5 5 5 n ofmajority im r n ki u . al provemnt. ng exrcis. Audite or 69 AIRASIA BERHAD ANNUAL REPORT 2006 70 AIRASIA BERHAD ANNUAL REPORT 2006 C. – – – – – – – Ro The no m num If Me N al o em m a les le mbe te ber t s • • • • • • Tdo o Tre o wi may Tdiscu o • • Tact o co- • • • Tre o Tdiscu o apo Tcon o te ber em rms and rnat of o rs or m as s h ber i on an op i ap t r ap nec r r co t l si an view view di n n i me th R r o evi evi evi he ti o of d e g sider tme an as for t f nat g sh pr pr mp cha y of espon nifcat f e go prob s with s eviw ation e e e ort Audit he ir ove op mber m to w w w sary ion f th ay th th ce ecto l nt olw ia i unity an ice t ri ng inte it d any the the e e q e nges nce e ev wh he any ate be of self tha siblt iscu con is s Au can r the xtern uarte int ade lems adjust auth new audit the ing requ rm aprisl er action to with t ry Com p d Com dit of apo
in (in s inde cou cern redu ernal ediary ext subm
wher quacy ority y ext resignat hre be erfo m acounti al and rly i and r fe men acount ed ld ore intm mit ap audit pend ced ernal is asum af ernal the audit rman to it to m res of (3) betw t or te ar ts an of than aken ent ect reason mebr a as ointed resig ite year abse thre below cary or’m s the up make enc the io asemnt audi years. the o ce out replac to auditor rvati prog in e interal o ns g ption; isn man en materily;result or l
one st g Ch a ect on p ext - finacl end tor of nce scope out olices ter of fo s t f t from g arisng ons ange f ram Howe the audito ernal aud andr be in
Au he inte the min and its au d ns, ternal r r m fore and functios , recom the (3), involed is firm it practies;and o agemnt man esign f airmn me and e o ation work; func dit of minu pe the of verthe , Comite dit audit;he other and s or ies let nt au the meb staf audit rnal agemn t from staemn t of result rqu any , f sh Board t of exist:-tion th among rom . fun audit staf senior r any for of ndatios mang and er apointme t comens, dit other r of rfomance audit goin Comite Audit he interm he wher t resouc (3) thre requ lega of estion ; ceas eason t withn al, each and ction; inter he and employs, the of of mebrs int the necsary); or; pr and rs who emslv au final and w terminas emnt’respon s mebrs. of mebrs iremnts. focusin Board, the of resignato pr audit al mebr its of audit ernal nature he (3) hre e. the ovide a be to au interal inte the ext the an and dits, w and oces mebr a hen mo scope and inte the Indep an is of dismal or functio; se; with mebr particuly g apoin nths audit rnal be shal s resign audito ernal functio dit audit rnal th mater y the of Dir endt nec her to ceas anmebr staf an functio; nu such t b reviwd th and n, ext the on:- resu the rs; and audit, functio; auditorextrnal e tha ensur sary ector. andauditor ernal mber thehas it at thetha lt Directo a be . Boardthe y d ensur newof D. sati Wher reco auth The – – – In Au – – – – – – – – – – – – – – – car th sfact Au me or Aud b b h moni au the fr h h To To To co To 204 fi wh by To h I To To syt To To To R or t e ryi nte naci ab e ab e d ave f ave au ave f ave ise am eviw di t ase re mo re re con con con con con di nt ity ng A he syte or rn C t it em co t t d rol ewo nda vie vie vie t ); C Pow and r ily ou le le f or co al and ul ich fr ul, nito al sid sid sid sid sid ir f , om pr o to to s, om th th t w man w t w u ect mit con tion t ina eso andrk; sta inclu dit inacl o m its er er er er er or t r co o mite e n om com he he e h oth the com any com Com n trols t ity btain b s adequ he tr sco e lved ite f u cial nve duties, in f e.] o ptly stae Group and ding nrest agem may, to ack l integ er er m inve o mu relatd or ternal pliance pliance is and rep mit wh , and resulting indep o s pe topics ajor and acy repo unr any men nicato sytem not m th orting te o rity in ent’s ’pr s icted f th and m risk no-f env stigae eting estric th findg Aud e cont confide rt par othe auth Boar e in t with with nde of is Au e ocedur de as such t f efct and th
in inf any to aces and in f s
t ty an rol ange he th m r d r chane imp to orised wit s risk. ancil it th int e mat any b a of s p t the the or dit ace d an e Comi nce, the by fined inte the risk ransctio f d em mat Group’inte s at vie e of ivens f es rofesin comp of reach Grou Grou d Comite inte t h of egrity it or me complia (in ers nual must necsaryed wit ls co raise manget; Bur t o ers whistle or extrn he to s t w nt; co s ter rnal lian t au rnal p’insd s p’con s te r a hat epor for th h tha s withn [Note: w ce the or al nsidera its lemnt the investgao the the shal, Board f rnal ncer r ormatin m e an t e e dito Gr Listng r mater M alysi.sa flict Gr au al bl ot own its ith er arise may syte te its Boar the xter det owing, acounts d oup’re cord s cont inacl . advice; her the at oup’inter s r’repots s with nce and tion about s ; p trading laws, aplicbe inter of exclud ditors, auditors nal ms recomndatis Re ref of rms eportd opin t egardin mange and s t of cost o quiremnts b establihd retains d impro posible policy;est implenta Gr the withn olicy; made provisn frau ecting the on the on and contr al proe s, rols; to it by aspe despit ernc Gr he Gr he t ing pe and responiblty regulations, ef Gro he f f m
rt ou m y syt l ou e Bu d th ; ion ie u ct at and o en rso on p B e p; p u pe s, ive , M rsa an in riets ’in s . te p; t be n ’ em r s the in oar th of cts to car (s) nd age n e half esp rso t an s e ance e o s d dire rules, th alysi, me r the for nsu co nal of n o on Securits d Dir ying t f n mat t f o e man se re t reviw at and l t he t f he t ; e id o nt of ters o he hat syt cto of reviw B r u g and ctives ag o e ot e oar en t an ls ar Au r th e n has s xecu h em tif me inamend Act Industry b d r er e an repoting,finacl dit del being yase , r d re int fo s n ut g tive Co in t ef the e man isk er sou r ot me r ep audit nal m me fo b in uidelns; s, r nt or rmation ces; t en e offectivns isite s theof mbers t r theto gated andmange in are finaclnal its agemnt functio; place 71 AIRASIA BERHAD ANNUAL REPORT 2006 72 AIRASIA BERHAD ANNUAL REPORT 2006 G E F . . . The Au di In The est The j i g) A d) The c) h) d) a) The Re b) a) Me e) c) b) ) ) ud re
ter di por abl eti ctl re abo H Au Au C it C t Com ad In the The the conu rel yeara t , nor The The t of The bef deci The sum a the Com t of The In The t of the the the the mech nal ish o t o ead to y ng vise de di di om at om fu ve Au sup mal ore com acti exist num te Dep Audit he he he t f Se Co Int Gr Ext Au quo men s C t C t d m ed pen mi mi diton th e t d ani mit he Au me li rms re th mit . t f di ou l o o cre er mpany C dit t t aten y vites st A e er h de er nct m m of ary ru pos o t Gr C t be sm e e e nce or he nal A e e Ch p dit ed at nal e mber nce o ms mit mit tar f m t A of nt tin r e u f at me ion In om oup. t o C om iton
ers Com dit o of re the Auditor udit udit of isue y and Auditor e g Dire te te tha Rep or th tern ie om of and s t d t f each he of mit Secr t ar Au (ind s mit fer mb r f
F f w as th Aud an inter he xplantor act e th of an he Com Co the m re is Report efr ctor avilb me Com dit te. al an r; exist f e te tor er; Of inacl etary nce Aud e it the Ch du m shal s Bo in me Audit m has te. icat unctio as el au nal Board. nt s. enc ivt quired tern mit ite m shal d air ard ties Com it
to etings of Audit ite ing shal ie ilt man act shal Com it the do y al m e s enabl Depart the Me the of y wh be f dit wer e in are
whet Meti ite to of audi or ap to right when ficer, sh fo , Com et eting th cum th include in m Audi to detai scope ose asi reco activ unctio al Metin ite ap functi t d r at Aud e
ad un has ment asi S as t Comite Audit the l at Fin Group the s ite the er m m t entaio at tendac Co t re me th st rawi wi minutes led ite E the with et roved five east ty. its in st it quired l ecr . it mit n t on r such Wher on ng inclu e, e fol e in Comite he gs relat ndatios e be hal o sumary a eport are directos and ear of etary resp of to Board activy or cirulat and up th e by such o so.do to me o b shal g e; an delibratons resticd durin ld a times (5) wing:- metin al th ding the of hear be Contr ancil includ onsiblty ntrused Audit the of Boa rd mb fu other prea Audito xternal prio ers functio a least at e wher and f the g desig name, e ther ing indep disch the Comite Audit t o aces discharge o any at d pr to gs and year reco to the ing may as nctios and Comite o Directos Audit the signfcat f an year inacl resoluti d each to t and ler ther e (2) two t and to activy or oversin es of arge and esnt withou rs o or nt pro al rd and agend me Audit the aditon such (indcat natio functio its of eting Comit me Berhad Air sia f o Head he a such is m folw-up o therwis); mate of ns maters. functio its e eting. to Metings not does and cedings mb agred be pr the o details d the discu r be shal Co d the g Audit the the ers; Report te not the efctiv ns m as metings al o functio Interal f mit of esnc r al on the ing Ho raised. rs dut and s e an exist, an evlopmnt fro to met of ice an Membrs e w esponibl, meb Board al m atend f Com of minutes De 2 2 on rep audit ajo inclu for decison elvant Ch activya r , ly. of Audit m presn rity excu the directoshpand airmn) t for ies t to time of xplantio it and te shal Chairmn the oncewevrleast at , each of ce togehr ings and orts 204. cembr the in sion ofmetings al theith shal Group the thed yearfinacl hat repotsd bemust t sumary ime me tive apershal Auditthe rs, other theby Audit the made. Anual with of bers
Pr syte T m e Su it T d su A SUM in IN • T • Risk Ex • • Emp • • • • • Int w he xp he efi he te an o TE stai t er ce e eri ne rn i pl G oul agi M m rna loy nt estab The Lum Re Re Re Re Ap Re in Re Ap na R and ms dur co al ro ni e an i d F AUDIT NAL te h d ern r ng an d nce ARY Aud l vie com vie vie pro vie vie pro n h up e Au l of ary d was an n rnal Co es. th g pur age an ave audit al nt l wed wed wed wed wed ish t ved t ved on is isk Sh OF mit co an rol ad an as d Int pr gr ynamic anu m e it me p ed it end are th th th th th inte eriv ntr odu ACTIV er h h impact act e ome nt e e fun te Opti ade e f e r e En e ed t d nat ols, ur ex Gro audit al cts rn fro d suant irst e to go ve he UNCT equ ion ction aud al n o sult ternal p ivtes vironm Th . adequcy owth tum up’s on ing. quacy
rifed the overal dr al r ately on m IES in e aft Schem plan Airpo to fo also RISK AND ION r it a Inter Board the audit e f whic ent the r the im r of erfo fun audit ternal of eport isk esour xtern gover Grou tha the in asit Contiu Busine the Audit nal al, E t. mang risk the of aloctin plemnt scope and plan rme asemnt Directo of mplo alter Health risk isue s reviw was audit al in ced pract nace p. b d man Share ye th s th y Plan e an ing and b d tern of P MANGET s. Gr e agemnt t rs Aud e evalu ction op y pr ou Saf audit al th em an ed he oup’r s ice oces tions for tsourcin Int e Optio fectiv ety as also Comite it apoint ation with s nt th ap d oth and Plan ity fu Co Audit ernal purs p isk sytem fi e whic Schem n risk of nctio mpliance mange risk of g p the in yearnacil . and ment manget ist ro to uant T rofile. th by ved compliane er consider asit to n p key for and audits ident for ROCES Th Group. contr and th during departmn crite the P Best and the for proces he remunatio Comite Audit e me in roces and ifyng Board the risk the relat the proces nt fina ye finacl e an audits e discloe ria p key in ls g and r the in ext and Audit ractie year cial conti of o m the of fes.d ve each withn M maintg in an of eviw chaleng a is reviws d alysi. r and roces n the agin parties rnal set is ar an e the to ident uosly E Group nd the at p ce the of e d documentig ro 3 departmn of employs belowout . condute ces Group’risk.s 0 begin the as e Group’facilty s Audito xternal Ju efct an the on the in evaluting ifyng, ne s. 2 0 efctivns introduc contiues Group 0 ofsytem ive the and interal by the of OperatingStandr 6. andGroup the r. Kual in yearfinacl . tha extn areaudit and newof of to 73 AIRASIA BERHAD ANNUAL REPORT 2006
mat mat e ri al T e he
ri lo al
s sta
jo i in ag te n cu t m an ain ve re • e d th st n n fo d t t rou u ap re a as b d l re lo u o Gro pro dg g e s w h an n s fo e ou u • th va t p r d o su fin ro t
an l. th a i t an th u T l e an d s nc i of t He nu g h e
soc rev a h es
ci l or p u al A . ad in a p d e i b ga nter l ie com ated te ro
th e
s ctu • an b Pr u w rn ni val o u d pr oc d e f n d sati al al g e
d a o ge D oce et o pe interal of stae ed b w contrl l Th co p ep th f on i ts e y re u p s n e rfo d t rat art an pani re to tro
u po e h G is re rm s re G i Board. e me n rou d e . ls rte m s g Ther es. pa b r wit T • ance
ns ou t and an p nt on hi d p u mit Boardfor tabled and red arg acti eak
u s s hi p to d i is i in efcti re tor C re
n wi im igat i re ets p t Man ca are plans es
on nes compareds n hi in ro a h ed se l le pa the l li c e b e te and de ion s ce k va
n
Ex f su w c ontrl ag A e cr e th rn to thei t id t s fi of lihod l nt mi u noas mar ro s. an ne to al e
• co entif ca di ad ex ve e e me ac it
ug aws i s C t f d co d cuti d ntr t d un i s c pi Gr he anul r o st hiev
h year tim re a S n nt n ied th or tal om o Th fo n y l d tro Ofi ve t e
s i l e a s re for f c expndi e o s e
re s ing r A • tan e fin regu nd rtaki l the mi an
u co ls f to Th oup.
ow to p scade alo e In ti ; rame d o is c nsure func anlysed d te
d ex on its incl budget, sp mal pr te n in rts identf Operatingard k m risk -u n andcer; tro Th onc ec a g ov e g rn o p or an busine s • ; cat t n o document ly s T . e a re al we l u d l and ions i p ture ati ex semnt gan s n d w is o ma
t e ti es u C A ib g th e f ion A h o t y ve d on T u o ud t th and e l crib m u ate he na e i he i akn Cl an lar m whic ts e h sati st
alo il risk he di C o fo s e di p i are e e t la gemnt e mit ; ONT
entr D t l
ria fr ha re f A e re of atus ia i ke C arl e fe ns nt en r ud o in d am nc i are se o re other cto u lisn shar n be
d y e e y i s m e be fo w cti tia in sour di d
s p
rn im re e str R e e w s h ework de ar h i ing s c pr Group’s art g mit C t re r wi ing y le s v l uri OL al an g vis ow ed eholdr or s ise- e p uct pr
fi plemntd me wi au rcis me i ce p the r t G The om nes lan hic m ng n CONT e t po e em vi
nter io
e h : S w oces e i al th fi late ure s. n pl ew wide the d e val n di n tha d
nt rate m h TR w e na INTE mit m , wi in . atic o ts e so d th ch to
com b as
o weak and
B uate s; m contiued th s pl c d th i UC el The value. l f r a e respon s an rs rio te us ROLS ci oup in as obj p ay
em l enta ai c
con r its s th f re e m risk re a e GRATING a wi e om e e re plia ga i T or i e evr d n l base d qu it s fi b il a o st
v entd risk U ecti c e i an by d tr rst e rev rec i the of iew fir d n tio th e sati ita ti nt e risk on pa s i R and nce G e isue ol ex r re fi o signf th rv s be mly e e com ernal of ity E the f n m ni an ole n Th ves. ni tiv co ti d m
ro B ice ri of on responib of A in ed n profita G t the nt n ter raft ti i wi es -b est u t on d ag es forble a e u B enha u on ro ref n o E ND si to out d s nag ase p es i b US nal cont G tin i ty e re thei em u n ’i s i RIS to o no-ndept asi o ore n rem o es lie p the p f e ro f t risk g u auditors; emnt inte d ref of terms f thi can G
i ’s ri e INE s nc th n ro n e m sk he g a s ve bilt m ity th fect nter s up NV as K , r contrl ternal nco fr nt ue ro t o busine m risk ro edia
G the n r e p we s t f e MA co th s sk p o t he se l S ’o s inc l e Bu polic e f up an y st akin art revi sy s
IRON isk t S m ev n me rnal a ive
an amewo he Group a s, al activ int l man T tin
ris at s li Man p NA companies. relatd ther lud l CO s o he
f ous rom Bo to ties age ing g. en e the d schedul as
as stem mange i n ies f u audi n A as s roup. taio ernal
co nd MENT ity es th suporte GE u NT ag sin o t we ri m m k the d sur sk and e sy m ad has yT . gemn inac e i man to rk cir advers f in g C t a MEN INU wi ent Co pl t n i me l st s n
a man as l an nd nha
contr a to ang pe face risk mprehns ter nce o he a nce me o ems procedu ystem riskThe an. n ter acti f p nt a m a I ra T tin operati ensur n Bo reas g WITH T rd c ag updati ed mat aginst nt mit t M Y l opte tion a nal l e i emnt cemn hiev can u al au l is m ro . e B The nd to ls it ar I on are
c te me ona en ned so ces. Pl y r nd w s i ge i d AN esp thed d ontr p d, provid only cumstane. i t ob busine ive i e en . n p t in s o s ble lan INTE a e to an oft hic AG p t ri ts oa reg s ons cri s d, ha Group The n andng ro regula ha s. ris n l rd formed ro in d h rath mange re s, th EM
ce T beto • sk ible perf nc sy eria tica c RNA st to wishe a e es h to s ona i t integral an rde an k ope e conti nsure s ENT nt firs i gul for quar a on repotd is s t i he t thefor l mis l r ions, ems th orm er • to: e Reviw a is andl o L atory r d lev t na reviw as
jec m The a f eas ap rati sut con sta and cont l n p tive l Identif pro ongi ule lem ist o el m on day e efc on th er compl s tem tro a the s. res d s, nui ina ab n al aj syte stri pro the asur f rol l the g Th b co or iate ntai ent an n and le, tiv bilty pr y s ty a monitred efort ng ve adeq ire orga id y to th sy par to e ntrols e
m et s B ctiv o cont on day B in ris incpal s at m risk enti tal lo r tem fo s e to nis o t oard of ua ter gres oard sui of n d es B The maint ce el y and sy uch m rol s. f cy, a the f abs ot BOA na co r a andying a end tion ter i imple ang n inte cont l awre s nd im
Gr th of m d table t on l mp oa y e al, so a ain RD ks gu th nate asu are stem ou olu em gr rd as a lian an operat June 30 he rols
e idelns. p AC a ity nd te, a re th recognis ag . e ent sta Th s tha ap with ce gr st p nt to s en COUNTAB informat emnt whic u ri e ate nd Pa te s B e oup, n io su s d m r ment ef ra nal, fai of sk inte a Comp 206. of uc imp re o c gr t ange yst tice c a o
t ecti an h rd int a he o int f 15 ph em about v
tode en to s whic ern any’s r c d ers lic ven Boar e-afi IL im e lemn l ernal ure i of l able adher In IT c al risk he om risk e (b .27 h Y t is d s p aset r its rms s he nte
pli “… o o sure cont of oftaion
a nt rta ma an
ws, rn p ro ands; w )
ta nc req enc le staemn t c a s”
al nage he l o l r con e on ase safe to ol o e contr h o e listed uires e f ic g-te th n sponi re h t d so a f f to me d inte Gr e tro B r o o Ma the m n q u i l l ands fi t, Boa The s. u sue rsa rn un b gu fo oup ire i al li n Ma s d ar ty t s co co anci fo the la sh d yst h ysia mp lays nt f the r Bo e al o rol em are , an C n rd ia’ l l mak to ard st owing of mai to ies hol Li s i l the f n od anc d C of e sti e r ial n i s’ is isted Re g year atemn nve nta orp e a q i stm o so a n ui G rate u remnts er theand ent sy und n overnac stem cont interal ro l 75 AIRASIA BERHAD ANNUAL REPORT 2006 76 AIRASIA BERHAD ANNUAL REPORT 2006 6 5 4 3 2 T 1 . . . . . h . e i nfo To M – f L Ov Ot R R Tad ax – – S P NO M S T T o S A T OP Wo S T S L ( C R 1) ro im C he her t f C he C he ist ta rice chem evi epo A H TAT api epaym M S un cur em ange he ta P m ad ers T NCT AR tau rmat f he r N-A i ER uto e ng ki der ew tal IONS w e ted re l re I T rs wat rt PO be US ng C he om om om E viso ICA e in nt (“ e to rice au ry i of as acru UD ION se ion st nacil p mu fi r wh , men ent BUY er aco g xpen xpen U OF f capitl r d pany d pany d pany erh ro omp aud y W, quar an ry inac N ES co ditonal ced IT rm wa of no ne S dit t ich D -BACK o FE any b se OS ditur ARNT in al o t of SIGNF AND/OR ba ra useCo ter E f s p TIL un it ter com d t y POSIT id o o i m has ti ut ”) u or P
n es n es on a s l b nk hou atem tans (1 S p on he san blic ly e l not year ) S ri ist came below rio resu A joint a cewa sepa in relvant ade seCop ot ot or spo pliance T per g ents. ORY S IO exp finacl fu have have lts int CONVE OR is ctions OF N wings s nsor ra te l con l e
set
Ma nse RECIP e o te rh comp in discloe re wor er w any bu to schem a tle ouseC s ent troled laysin an any PROCE S 1 on fect ICAN M s, of ment bodi gulatory be has and/or year k in d AD ( T or arnts al P T RT en dep th GDR or R “ADR” o fi
si ysia tr per IBLE list e ENALTIE rm RAISED DS gni ansf ity en ept Interaio s ing f er leg dent p icant during es mpliance conver it y-back SE OR ) 20 embr ed with liance exp CUR d progame t in ens. S GL impo enaltis his secu tible EXRCISDITES entiy al FROM shar own s anl f the OBAL Acordin The 04. al ysi List the e year inacl CORP to (“GDR”) RECIPT DEPOSITRY remaing glythe , the uring isu in rites w of details orkin t on sed es. Pr in R OR Requirmn g 206 M Ut opsed IP Of capitl.g 63 12 12 51 10 32 ' ATE 75 0 year finacl 8 8 8 0 8–8 – 0 7 – – 71 49 10 R and Company he Pr O 28,064 94,20 30 nde ESO the M PROSAL Airsa The e. 7,439 5,13 0, Gr ’0 balnce inf oceds oup ilsaton Bursa of ts R mil RM7.4 of 20 June 1,438 1,3 1,0 205 M'0 ar exrcisd end 230 92 92 46 16 – – or B subidar its e Utilsed Employe rhad 6. June 30 Malysi:- io PROGAME o n 71,439 495,13 10, RM’0 discloe e 28,064 94,20 mation RM'0 n
206 th 479 479 10 296 TDateo p e 75 206. –– –– – – orDirectos ies, rop Comp o se OptionShare d in theof utilsaon any 120page Balnce RM'0 RM’0 1,36 1,36 1,0 205 20 – – – – – 16 – – 9 8 7 . . . F M b D P B a Th S P mi On ex V pe a P In 11 ot Th a a th on a mi R udi l nd ft e mo u t or etw ri c RO har ro M1 .2 0 asi A lo w ur thaer e AT c l l e rm i 2 e ly t li li RIA prhee fi ept i 1 ew t a r Co m T he on. o ron ted pa t ng Ear c m Com 2004 dev eho af t FIT he No v1e m ER en an wainndt tt ed ino tfhor TIO at x ofrt fina pro f i ce wi x IA GUARNTE b i 6 te i he an d ld at praencyo g er ho all th 3 pdaindy rit nigs pa ra ti o un de r ia nds ll t r er CONTRAS L ion IN N
0.3 %. i y atvhaei fin not A e ll owa n s’ Gro ax af tte r mi no io fo le y cial us eC oo pe r aro nte an Equ ber Graotu pn f ll ir and Pe sh el ter RE th e cial ai Asia n up nv es tm res ts ce s oslfeer loy l 200 6 , owi ng:- r ear Gr r riinttye r es t not t of it ly m SULTS atnadx s Share ihna d ni se d y la bl e In te rn year ou pre sent e xicne ss Gr inort fohue end r for ele p
oup en t s, th e the i th e end nv es tm leavnedl ytehaer ase fiotusr t th e a inte y INVOLDIRE VING min orit y t ta x Co 30 qrut h and Boa rd io n fthe m in ve st m or wi ll Co m mp an y Jun o al 30 al lo wa n the rest its it sf an ten t Fi na n ina ncia l ar of qu h R be end Jun nou pa n RM Di 2 e int te r ap no Dir f e ax rectos pli c e ed ar an y’s 1. 2 nc nt n 06, r M2 e cRi al ce r re o al lo ec ma te t 3 m 2 a e au s st at no pos itainodn 03 06, ax 42 r to Ju n0e
ann o unce mdeantte d a ca plia tlallo w ance s. s oifo n fu ttuarxe wa nac es un ce mCetonhmtep,h a andy p rnoeyfs itti m aftoer,e c ast biClola mitpiol alneanl vsyue slt trhaietn e d ep or ti ng di to rs . va il atbole al lo wan ce s AiorfArB ssei rah ad mi.l0Rla Min2od3nm 3 i.l1lr ieosnp e ct iv el yb ri,n sgthihanerg e ho ldfeurnsd s contr o AND CTORS’ ftifhnoear n cyieaalr major or Ado ( Gro the Ful FRS R2wM0a10s26m 6 i.l9l iTgaohi nritv.isoe s se pt of acts R R 1,2 ion St an da rpdrsi,n c itpah1anIi2ldAs,l S y d efse artsrasetxedo t s li ab il it y 112 per f orCtmohamoenpfb ca eenc yuat nuhusete i ecogn M Ctohmepa xa rpneey c ttoe d shareold 24 t and up 10 06.2 ’0 i 2.0 of n .3 2004 fu ll natu materil a MAJ IAS ito mcyfaoeotnmaroyer .s on pearsm i tutt1nhIe2deAd,e S r di Company he 12 DTihree c tmoaris n) OR (“A Inc ome A u2g29su0 ts0at6t h eadt Je2hun03and00see6 d s.
irA soira ” SHARE tial Par p roorj ec tdiuofrtniih nneag n cyuienaadlre r An ou ter Quar Tawxhrdenieosoce thos g nries-ei n vest moernt acdoonpast eerdv a taipvper oaancdh wer re HOLDERS’ ofdfteshfeeet r traexd Ctohmep a ny) Re give not nta in Per cognit RM’0 1,09. entrd 126.9 ac cu mu ltaot e 5.4 vattiphhepaewlt i catoifo n prof any tabbelleo wTthrie.sa tmiesn t nce bcheoaensnf i rbmyed breeeRvnMit 8so8e .d4 or into me ann ounGttcrhheoaedut p ’s utnhaeu d iptreoadff titatex r GCraoonmudpp a rnoyf it n 4th guarnte it dev iati on t sub wer vseurbays t an ti al l ia bi li tyHo w.e ve rh ad, l i sed Compliance R Mof F cap ital e. sitng 12 RS RM’0 1,052.6 re co gn is ed 8.4 38. 5 3.8 rev iew 204 with FRS to 7
7 AIRASIA BERHAD ANNUAL REPORT 2006