Air Asia

AirAsia’s brand name is well-established in Asia Pacific. It expanded its route network aggressively in local and international destinations. At the end of 2002, it has covered all the major destinations in Malaysia and operated in over 25 countries and over 400 international and national destinations. Due to those aggressive expansion, AirAsia is able to penetrate and stimulate the potential market, and successfully gained the customers loyalty among the local and international market. Based on the research, most of the customers are loyal to AirAsia and willing to choose AirAsia again when they

Airasia want try to be the largest low cost airline in Asia and serving the 3 billion people who currently underserved with poor connectivity and high fares.

In 2010, views on whether low-fare airlines would continue to flourish in Asia varied. Three factors regulation, population demographics, and socioeconomic trends -drove this calculus. Although the target consumer base for AirAsia was enormous -more than 500 million

Philippine Airlines used to be one of the largest airlines and is the oldest commercialized airline in Asia. But then it had a down-turn which made Cebu Pacific overtake as the leading airline company. AirAsia, on the other hand, is low-cost airline based in Malaysia and is an emerging airline company in the Philippines. Looking at the history, there was a drastic shift of income levels among the three companies. Two of which are operating almost at a loss. From what was said, there is a tight battle among their finances and rapid movements of their stock

Air Asia leading airline was established with the dream of making flying possible for everyone. Since 2001, Air Asia has swiftly broken travel norms around the globe and has risen to become the world’s best. With a route network that spans through to over 20 countries, Air Asia continues to pave the way for low-cost aviation through our innovative solutions, efficient processes and a passionate approach to business. Together with our associate companies, Air Asia X, Thai Air Asia, Indonesia Air Asia, Philippines Air Asia and Japan Air Asia.

Due to the high returns, profitable markets will always attract new firms. This results in potential of new entrants, which eventually will decrease profitability for all firms within the industry. Usually, barriers to entry factors consist are shaped by governmental policies, capital requirements, patents, cost disadvantages, independent of size, economies of scale, economies of product differences, product differentiation, switching

AirAsia has face to the problems in the branches in Japan. AirAsia in Japan faced the problem which have to be shut down the operation on October 31, 2013, due to there is a lot of the low cost airline company in Japan. This is announced by the All Nippon Airways(ANA) as ANA was acquiring AirAsia Japan. This decision helped them to reduce to cost of losses. They had an operation loss up to 3.5billion yen after few months they started the operation.

Air Asia Berhad is also known to be a profit seeking company that has been well known for gaining profit by establishing itself as a leading low cost carrier in Asia. Air Asia Berhad was listed on the main market of Bursa Malaysia Securities Berhad in November 2004. Since 2001, due to pioneering the short-haul low-cost carrier model in ASEAN, the airline company has grown from a domestic airline in Malaysia to the leading low-cost airline in Asia serving around 121 destinations from 16 hubs in

After we have gone through the weakness of AirAsia, now we will discuss about the opportunities that AirAsia Company and their customer will get for being a low cost airlines in our country. The first opportunity is global exposition. The society in our country gets to explore the outside of the country at low cost despite of their financial status. Businesses can consider expanding their business by opening a new branch in foreign country while they are in vacation. They can use many ways to market their product for example by licensing, exporting, joint ventures and other method as long as it will bring profit for them. It is like a new step for our local businesses to enter international business. International businesses are “all business activities that involve exchanges across national boundaries” (Hughes, Kapoor, & Pride, 2012). It can increase our nation’s economic status when their product gains a lot of profit. They also can use these airlines if they have a meeting at farther place either in country or outside the country to save cost.

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.

There a few weaknesses of Air Asia Airline Company that writer can describe according to our reading and experience. First of all, Air Asia has a weakness on them on the way they serve their own costumer. Air Asia services were commented by the consumer as a non-punctual flight because according to consumer, Air Asia does not follow the schedule of flight strictly. This situation had caused unsatisfied feeling toward the consumer that choice to use the Air Asia service. Because of that, Air Asia had lose lot number of they own costumer that really care about time punctual. But to reduce they own weakness, Air Asia had took a step to settle the consumer problem toward the flight delay issue (Brown, 2014). Beside, Air Asia also had always being critic by they own consumer about the hidden tax that they took from the costumer. For example the aviation will charge consumer every time they purchase to use their services on the seat that consumer want. Air Asia will took charge different price according which position they want to seat, more better seat consumer take more higher price will they paid. This situation

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

Remember that all airlines have the same price of air tickets. Major airlines often charge smaller companies. I suggest you go and check the prices of smaller airlines and can get a cheap airline, with more or less the same quality of service.

This growth stage is evidenced by the increasing number of low cost carriers that have established themselves over the past few years, such as Firefly, Tiger

However, meals, pre-book baggage, seat assignment and extra services are not included in ticket of Air Asia, it is reasonable , at all. Furthermore, Air Asia offers a simple “no frills” service at fares that are on average notably lower than those offered by traditional full-service airlines. Modeled on winning low fare airlines such as the U.S.-based Southwest Airlines and Dublin-based Ryan air, Air Asia was established to produce a new aviation product in Malaysia, one that would develop air travel, and improve the local aviation market by providing very low fares so more people can fly. The company banks on the cost of running ‘bricks and mortar’ outlets and could reach national markets without having to extend a physical distribution network. Most essential was the company could save on customer service costs by enabling customers to serve themselves. Furthermore, Air Asia effectively adopted focus strategies by having developed a very well-organized and fully computerized system for its customers to book the air tickets through its website. Air Asia also have a high frequency of flights to most short haul and regional destinations in order to serve a wider market segment as well as to reduce the turnaround time in the ground between flights, which is 25 minutes compared to an hour for full service airlines. (Air Asia 2011) To