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 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 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 Sandakan Tawau E B

A I S

A Source: 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, .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