AirAsia is the first low cost carrier (LCC) established in Malaysia and it has rapidly established itself as the leading and largest LCC in Asia. AirAsia has successfully revolutionized air travel in Asia by offering a simple "no frills" service offering significantly lower fares than those offered by traditional full-service airlines.

Dato Tony Fernandes founded Tune Air Sdn Bhd in 2001 with a vision to make air travel more affordable to Malaysians. Together with his three partners, Tony bought AirAsia from its owner DRB-Hicom.

Under the stellar leadership of Tony and his team, the airline with a RM40 million debt became a blooming business. The airline repaid all debts and has been profitable from the first day of operation. In 6 years, AirAsia's fleet has grown from 2 to 65 aircrafts and is operating over 400 domestic and international flights from hubs in Malaysia, Thailand and Indonesia to over 85 domestic and international destinations in Malaysia, Thailand, Indonesia, China (including Macau), Vietnam, Cambodia, Laos, Philippines, Brunei, Myanmar and Singapore. To date, AirAsia has carried over 40 million guests.

In 2004, AirAsia successfully replicated its business in Thailand and Indonesia with the formation of Thai-AirAsia and Indonesia-AirAsia. AirAsia holds 49% stakes in both companies partnering with local associates.

AirAsia has been publically traded on the Malaysia Stock Exchange since 22 November 2004.