Air Asia: Strategic Management Report

The airline industry is one of the largest global industries in the world. Airline companies in the airline industry have gone through challenging obstacles in the past decade. Many changes have occurred within the industry and increased regulations have driven up cost for the industry. The attacks on 9/11 left the industry in shock when planes were used in terrorist attacks in the United States. These attacks changed the mentality of the industry and shifted the focus towards safety. Safety was also a major concern in the industry with the breakout of SARS in 2003 and the H1N1 flu in 2009. The airlines had to ensure that public health and safety of the travelers were

Since the beginning of aviation, aircraft have been used for other intentions besides carrying passengers and cargo. They have been used as weapons of war dating all the way back to the first world war, and the use of aircraft has enlightened the advancement of the aviation. “Throughout the history of aviation, the greatest progress in flight has been made during time when either war or the threat of war was present” (Millspaugh, et al., 2008, p. 33). However, the war we face today has been triggered by the deliberate use of aircraft to cause death, destruction, and mayhem.

The September 11th, 2001 terrorist attacks forever changed the way our air travel industry operates. It affected the government, the airlines, airports, employees, and passengers alike. There was not as much of a threat of terrorism before 9/11, so airport security was not nearly as thorough, and at times intrusive as it is today. Through the creation of the Department of Homeland Security and the Transportation Security Administration, the evolving threat of terrorism has not been successful in carrying out another 9/11 style attack.

The terrorist attacks on September 11, 2011 prompted the world to reevaluate and drastically modify airport and airline security. “Four targets had been chosen, all iconic American buildings that would send a clear message of the depth of their hatred for the United States. All four planes crashed, killing all on board—terrorists, crew members, and passengers, along with hundreds who were killed inside the structures, on the ground, and the men and women who ran into collapsing buildings in an effort to try and save others” (Smutz 1). As Jason Villemez said “the decade after the 9/11 attacks reshaped many facets of life in America” (Villemez 1). Before the attacks, people did not think that large

September 11, 2001 was a milestone in the history of the United States, which experienced a collective shock and trauma that has never been forgotten. In the United States most of all, the entire airline and tourist industry was driven to the edge of bankruptcy and would not have survived at all without a major bailout by the federal government. It was already in poor condition for many years after deregulation in 1978, the September 11th attacks were a Near Death Experience. After that time, the airlines decided that they could never permit another attack like this or they would be driven out of business. As it was, their stock prices collapsed and passenger schedules did not return to pre-September 11th levels for four years. All previous security plans were judged to be useless and inadequate, and were taken out of the hands of private security contractors and turned over to the federal government. New and more restrictive laws like the Patriot Act came into being, and the U.S. launched an all-out war on Al Qaeda that has continued for eleven long years.

September 11, 2001, was a horrific event that rocked the world and the way people viewed the safety of airline travel. The airline industry was hit the hardest after that day and it was uncertain if they could regain their customer’s

The terrorist attacks on September 11, 2011 prompted the world to reevaluate and drastically modify airport and airline security. “Four targets had been chosen, all iconic American buildings that would send a clear message of the depth of their hatred for the United States. All four planes crashed, killing all on board—terrorists, crew members, and passengers, along with hundreds who were killed inside the structures, on the ground, and the men and women who ran into collapsing buildings in an effort to try and save others” (Smutz 1). As Jason Villemez said “the decade after the 9/11 attacks reshaped many facets of life in America” (Villemez 1). Before the attacks, people did not think that large scale hostility towards innocent people in

The September 11th attacks have had a profound effect on American history. Often referred to as “9/11”, these attacks were comprised of a group of organized terrorists known as Al-Qaeda. This extreme Islamic group assaulted several landmarks in New York City, Washington D.C, and the state of Pennsylvania. In New York City, two airliner jets were hijacked with passengers aboard and slammed into the World Trade Center. “The next attack resulted in a plane colliding into the Pentagon, government building; the last attack was in Pennsylvania when a plane crashed into a field. In total, 3,000 people died on September 11th, 2001” (History.com Staff). The September 11th-attacks have affected airport security by the new training of flight attendants, the formation of the Transportation Security Administration and new technical advances to keep up with increased terror threats.

Air India began its services in 1932 and has been operating in India for the last 78 years. It is the oldest passenger flight of India. The government of India holds 49% of Air India’s share with an option to acquire 2% more since 1946. This made Air India a public sector thus enabled it to operate flights internationally. In spite of being a public sector company Air India has been running in loss for the past 10 years.

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.

On the other hand governments support aviation industry by building airports, roads and hotels near airports, because they recognize this industry as an important ingredient for economic well-being. In addition governments arrange security at the airports to ensure safe journey. The terrorist attacks of September 11, 2001 have had negative implications for the industry. Over the years, all the airlines have changed their routes, marketing tactics and prices; they are also making an effort to reduce the fear and negative image associated with air-planes. Governments have imposed strict security checks on air travel passengers in order to avoid any unforeseen terrorist activity.

Airport security is necessary for the safety and efficiency of airlines today. Attacks involving airlines have been “among the deadliest in terms of human lives and economic impact,” even though relatively few attacks have occurred using airlines compared to other terrorism methods (Szyliowicz, 2011, p.2). Airport Security has been administered using a government-operated system since the Aviation and Transportation Security Act was enacted in 2001. The Transportation Security Administration (TSA), now an agency of homeland security, replaced private security measures and personnel with at least 60,000 federal employees (Szyliowicz, 2011). However, privatization may be making a come-back. The following analysis will analyze

Airline industry is a growing and a challenging industry across the globe and it is becoming more competitive on quality, pricing and most prominently safety in the contemporary world.

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

Acts of terrorism has greatly affected multiple countries, including the United States. The horrific events that took place on 9/11 left the American people shocked, devastated, and furious. Many innocent American’s lost their lives on this infamous day. While airports and airlines are not free from security breaches, a set of new security measures and requirements have been implemented by the International Air Transport Association and the International Civil Aviation Organization (Beirman, 2011). Increased security at airports and airlines, have left terrorists to target more vulnerable areas such as tourist destinations. Attacking tourists’ spots such as hotels, restaurants, nightclubs, conference venues and other forms