Advantages And Disadvantages Of Airasia

The airline industry has been a major factor in the globalization of the world economy. It connects the sellers and the buyers as well as transports goods across countries. It also breaks the time and distance barriers. In the past, air travel was considered a luxury but it is now a common necessity.

In 2015, it showed in the record that the number of employees American Airline has was 110,300 employees within different departments such as flight attendants, and ground workers and pilots. With this huge number of workers, they need a representative to make their rights will be claimed. That why American Airline has a voice with a different labor unions such as Association of Professional Flight Attendants (APFA), Air Line Pilots Association (ALPA), Transport Workers Union-International Association of Machinists alliance (TWU-IAM) and Allied Pilot Association (APA). Therefore, the airline will be forced to consider and listen to the labor unions and their demands to avoid strikes that can damage the reputation of the company.

Air Asia is the founder of low cost airlines in the Asia region since the advent of deregulation by Malaysian Government in late 90’s which in itself is a very important economic factor, without deregulation a low cost Airline cannot enter the market. For the reason that of Air Asia’s lower price, the factors affected are the

In today’s business industry, the globalization process has become an important aspect and fundamental force. The elements that contribute to globalization is the environment, culture, regulation and technology and production. While the advancements globalization has increased greatly, so has the advancements in airline industry with their aircraft (Shevell, 1999). Globalization also provides a great amount of potential profits to nations and their corporations (Button, 2008). Air transportation has evolved into a major industry (Kroo, 1999). The airline industry’s continuously grows and is facilitated through its international investment, tourism, world trade and economic growth (Kroo, 1999).

AirAsia X’s main strength is the low price that it offers for customers. For most airlines in the industry, it is extremely difficult to keep the price low for long-haul flights as the full services offered in most airlines increase the operating costs. In addition, X also benefited from the expansive network, infrastructure and customers that AirAsia already has that enabled them to grow fast with good financial outcomes. On the other hand, X’s main weakness is the technology. The website always crashes and the company doesn’t have its own database of customers. X also doesn’t enjoy from a strong relationship with the Malaysian Transport Ministry. This can be detrimental to the company as it finds competing with Malaysia Airlines in some profitable routes to be difficult. However, X has some opportunities. For example, in order to keep the low price ticket, cooperating with fuel companies which will offer low fuel price and increasing demand in low cost airlines will bring profits. The major threat for AirAsia X is the protectionist measures taken by the Malaysian government that prevented X from flying planes to some destinations with high demand. This would have been a very

AirAsia was originally launched to compete with Malaysian Airline by offering low-priced air travels. It was, however, unable to liberalize the market to beat its rival and win and maintain its own niche. In 2001, Fernades bought AirAsia and hired experts in low-cost airline business to restructure the business model in use at AirAsia airline. This was the turning point for AirAsia. AirAsia is currently the second largest Airline in Malaysia and offers low-cost airfares. This is in consistence with their mission of providing affordable airfares and their vision that claims that everyone can now fly.

To have great services and quality carrier. Easy transition and facilities to pass through the airport system. Safe journey.

network and this allows the company to dominate the short haul segment of the airline

Being a global company founded in the year 1972, Singapore Airlines has become one of the world’s largest and most successful airlines over the last forty years, focusing on providing a well rounded customer experience and ultimate luxury service, with their tagline “A Great Way To Fly”.

Next, one of the strengths for AirAsia company would be it has a very strong management team and also significant links with government and airline industry leaders. This can be said so is because the executive management teams are mostly built up by relevant industry experts and ex-top government officials. In addition, without the protection of national airlines brought about by deregulation, building alliances as strategy became necessary for many airlines to stay competitive and gain access to a global market too huge for any existing airline to dominate. There was a case where Shin Corp which is formerly owned by the family of former Thai Prime Minister which named Thaksin Shinawatra holds a 50% stake in Thai AirAsia. This has successfully helped AirAsia to open up and capture a sizeable

From the figure 2 It conclude that is competitive advantage of Air Asia Airline that have over than other competitors in the airline industry. Air Asia is not full services airline which using the low cost carrier business model. Air Asia have limited of passenger service (e.g. No meals) because almost of Air Asia flight is short-haul , point to point and have more frequency flight that can reliable. They can earn more money from passenger when passenger want special services (e.g. Baggage , Select seat). Air Asia have more standard fleet of aircraft and they can used high aircraft utilisation. Finally, Air Asia have many employees that have skilled full and they always focused on management

The implications of this analysis are that the focus on the Chinese market is justified. The Chinese air travel industry is booming, and indeed this is fueled by that country's rapid growth and the increased demand for

* First of all people who go to an airline are because they have the need to travel, which the main feature is. Inducing the consumer or person, as their main need.

AirAsia focused on ensuring a competitive cost structure as its main business strategy. It has been able to achieve a cost per average seat kilometer (ASK) of 2.5 cents, half that of Malaysia Airlines and Ryanair and a third that of EasyJet. AirAsia can lease the B737-300s aircraft at a very competitive market rates due to the harsh global market conditions for the second-hand aircrafts because of the September 11th event in 2001.

To be able to adjust with stiff competition that keep increasing in the airlines market, airlines industries tend to come up with different approaches and strategies to be more competitive. Air Asia, like any other airlines adopt strategic approach to marketing and expand their market reach and give better and satisfying service delivery to their target market. Being an industry that considers differentiation strategy, Air Asia continue to focus on their low cost approach, frequently flights approach, guest convenience, ticketless services, easy payment channels, internet booking, reservations and sales offices, and authorized travel