Sunday 28 December 2014

AirAsia Faces First Crisis on Flight Disappearance

AirAsia, one of the low cost airliners of the world is facing its biggest ever challenge after one of its flight, Airbus 320-200 with 162 people on board went missing during a flight from the Indonesian city of Surabaya to Singapore on Dec 28.

According to Indonesia's National Search and Rescue Agency, the Airbus with 162 people on board is likely at the bottom of the sea after a possible engine failure or accident.

AirAsia was built up from two planes in 2001 to an airline industry titan that operates more than 180 jets in just over a decade but now faces its biggest ever challenge.
Indonesia AirAsia is 49 percent owned by Malaysia-based AirAsia Bhd with local investors holding the rest.

The AirAsia group of airlines has had a virtually unblemished safety record until Dec 28 compared with competitors like Malaysia Airlines and Indonesian carriers such as Lion Air and Garuda Indonesia which have lost several planes in crashes over the last decade.

The AirAsia group, which includes affiliates in Thailand, the Philippines and India, has become a major competitor to regional carriers such as Malaysia Airline , Singapore Airlines and Qantas.

With 475 aircraft ordered or delivered, AirAsia has emerged as the biggest Asian customer of Airbus. The orders have been so large they have earned a footnote in the world's largest trade dispute between Airbus and Boeing over mutual accusations of illegal subsidies.


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