AirAsia is targeting on non-business passengers, especially leisure traffic and price-conscious business passengers. In order to reduce the maintenance cost for plane per day per trip, short-haul point to point traffic with high frequencies is applied. Aggressive marketing is conducted on its own website and also on newsletter to stimulate the market to increase revenue. AirAsia is locating on.
The business model would continue to follow the cost leadership generic strategy. To implement this strategy, the airline would have to expand the size of its fleet, with the possibility of adding some wide body aircraft designed for long haul flights in addition to A320s. Funding could be obtained from a seasoned equity offering, with the airline’s historic performance supporting the.
Company Background and analysis of AirAsia This report conducts an analysis of AirAsia, the world’s Lowest Cost Airline. AirAsia is a Malaysian low cost airline. AirAsia was found in 1993 and it started its operations from 18 Nov 1996. It was established initially by DRB-Hicom, a government owned- conglomerate. On 2 December 2001, the heavily.Table 1 McKinsey’s 7s framework 2.1 Shared values The common shared value of AirAsia is to be the largest low cost airline in Asia by continually insisting on the development of the low-cost carrier model. AirAsia always tries to attain the lowest cost so that a majority of people can afford to fly through its planes and hubs. Although AirAsia expanded its business to many countries, the.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.
In Airasia, they value into making a low-cost, long-haul segment while maintaining the quality of service of that in a high-class airline and providing high-frequency and point-to-point networks to the long-haul business. 3. The third is the assumed values of the employees which can’t be measured but do make a difference to the culture of the organization. In Airasia they provide a really.
AirAsia’s business model is Low Cost Carrier (LCC) that showed as above. There are 3 attributes that contribute to LCC business model, which are simple product, positioning, and low operating cost.Simple Product attribute for AirAsia Company is referring to the plane seating that is narrow and with only one class. So that, there is no seat assignment offered. Catering is not included on the.
Capitalize on the corporate business. AirAsia have seen a recent increase in the numbers of companies (almost double the last 3 years, as seen in the following page table) trading down to low cost airlines, this could be due to the global economic downturn. As such, AirAsia should also be focusing on increasing their share in this corporate business market as this market tends have a more.
Based on Southwest Airlines and Ryanair’s business model, AirAsia offer “No frills” airlines with a catchy tagline of “Now Everybody Can Fly’’. Within 2 years Air Asia posted a net income of 18.8 million and broke the 100 million net income barriers in 2005. Since then nothing has stopped AirAsia from moving forward and setting milestones, notably the first Asian Airlines to go.
AirAsia should keep expanding, both in the short- and long-haul business areas. By sticking to the cost-focused strategy that have worked for both businesses so far they should be able to grow further with continued positive profitability. Integration of common activities and services between the two firms should be implemented where the result is efficient operations without jeopardizing.
Air Asia modified the low cost airline model and adopted a lot of actions to compete in the industry while maintaining the competitive level of differentiation in this business and AirAsia passengers grew significantly. Air Asia introduce the value-added services which is to provide ticketless travel and implement a free seating policy. In early 2007, Air Asia became the first airline in.
Business Essays; Services. Write My Case Study; Buy Case Study; Case Study Help; Case Study For Sale; Case Study Service; Blog; Hire Writer; Login; Case study AirAsia. Growth in Asia Middle Class: Rapid growth in China, India, Indonesia, Vietnam, Thailand and Malaysia will cause Sais’s share of the new middle to more than double from its current 30%. By 2030, Asia will take 64% of the.
Operations- AirAsia has a low cost carrier business model. They also focus on self-automation where the customers can book, print tickets and check-in online (Porter, 2012). This helps in reducing congestion and cost of counter services. AirAsia excludes various frills in the daily operations that add to cost such as free food and beverages, assigned seating, no refund and ticketless.
The company selected for this business pitch is AirAsia Berhad (hereafter referred since AirAsia) and both the organization and financial performance of AirAsia will be analysed by 1st January 2009 to 31st 12, 2011. “The company was incorporated in 2001, like a private llc both included and domiciled in Malaysia. AirAsia was converted into a general public limited liability company upon 8th.
AirAsia Berhad (AirAsia) is a leading Low-Cost Carrier in the Association of Southeast Asian Nations (ASEAN) region. AirAsia focuses on providing high-frequency services on short-haul domestic and international routes. The main goal of this paper is to analyse the business strategy of AirAsia as a low-cost airline. This paper aims to apply the.
As AirAsia's main business activity is providing excellence services to their customers, they works base on their second vision which is safety. The management will never compromise when it comes to safety matters. They practice their responsibility by ensuring the security to both their staff and guests. AirAsia X A330-300X(9M-XXC) AirAsia A320-200(9M-AFJ) AirAsia also complies with every.