Airasia Case

Being able to acquire a new market may bring those new customers to their current market.

AirAsia had played the game very well and had ambitious growth plans to keep ahead of the pack. Time would tell if Fernandes and his team could maintain the company 's position as Asia 's -or perhaps the globe 's -most successful budget airline.

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

Thank you for sharing valid and important information about the Singapore Airline case. You mentioned the fact that it is more complicated to improve something that is already good than something that actually needs improvement. This statement is very interesting and true. In the field of dance, dancers are exposed to this situation in a daily basis. After every time they perform a choreography, their rehearsal director and artistic director provide feedback that help them be better next time they have to perform the choreography. Most of the time in the feedback section they tell the dancer that they looked great and are pleased with the performance. However, they believe

The overall problem in this case is how Air Canada will handle quadrant one risk, and how much of these risks will they hedge. Volatility in this industry, such as changes in fuel prices, have been eating at Air Canada’s profits. They currently purchase fuel futures for thirty four percent of needed fuel. Air Canada is also hedging on interest rates, exchange rates and personal stock price fluctuations. It seems like their business model is not flexible or adequate if they need to insure and hedge almost every single risk they encounter. This decision mainly focuses on how this airline should handle risks and to critique their current strategy in terms of effectiveness.

Rob Griffin, the senior vice president and U.S. director of search for Media contacts, a media consulting firm, is faced with the task of optimizing search engine marketing (SEM) for Air France as the company seeks to compete in the hyper-competitive U.S. market. Even though Griffin is satisfied with the performance of his company, he wants to make the team to remain the leading position and provide the results that Air France wanted. At the time of the case, SEM has become an advertising phenomenon, with North American advertisers spent $ 9.4 billion in the SEM channel, up to 62% in 2005. In the past, Media contacts h had concentrated on Google, Microsoft, and Yahoo for the search engine

First of all, Anova Airlines (AOV) is a small, privately held passenger airline based out of New Orleans (MSY) in Louisiana. AOV provided us with comprehensive data on daily flight operations, revenues, and costs for each route for which it is permitted to carry passengers. Anova Airlines has some routes that are profitable, and it has some routes that are non-profitable. Consequently, the load factor between AOV routes vary from one another. Furthermore, there is a positive correlation between load factor and total revenues. Next, the elimination of baggage fees is predicted to have a negative impact on total revenues. Furthermore, it is advised to further study the data for future variances. From the results of the data, it is advised to

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.

Air asia provides air travel at substantially lower prices is also known as no-frills or discount carrier. The company offers low fares according to cut out the "non-essential" service. The low cost of airline ticket is extremely basic because it attains high passenger loads and cut out all the extra. It means that the company does not provide meals, drinks, or snacks served free on board. The low cost airlines offer the economy flight which is narrow seat compare with wider business class seats. It also does not allocate seats for passengers as like "free seating" to make passengers board the flight early to get their seat. The additional of schemes or sale promotion activities do not offer by the company as the pricing structures are low. Low cost airline is related to the operating cost are kept to the bare minimum with low wages, low airport fees, low long term maintenance contracts rates, and low fares. So that, Air Asia is able to reduce the overhead and investment in equipments substantially absence of fringe services. Therefore, Air Asia has the operating cost compared to other competitor

Analyzing the trends and consumer behavior indicates that horizontal expansion will be necessary to capture the full and growing target market. Horizontal expansion can be

3,4- The Airline industry and the market The airline industry is large, specially in the United States, mainly due to the “ Deregulation” of the industry. In 1938, the Civil Aeronautics Board was created to control the growth of the air transportation industry. This board had the authority to control entry, exit, prices and methods of competition. In the late 1970 this structure was found inefficient and in 1978 deregulation took place. Due to the deregulation of the industry competition intensified, prices dropped, and the number of people travelling increased. Many new companies emerged and regional airlines saw deregulation as an opportunity to expand. Due to the rise in competition, by 1986 mergers started to take place and in 1987 64.8% of the market was controlled by the four largest airlines. The demand for air travel is determined mainly by price, studies revealed that half of the leisure travellers and on quarter of business travellers did not have a preference for a particular airline, which means that prices determined the

The strong competitive advantages which low – cost airline such as Air Asia is equally causing Mas to restructure their operations, there resource such as airplane and the quality of their cabin crew tends to be looked at deeply. Mas has the oldest airline in Malaysia they have to use the advantages to continue to stay at the frontline in the aviation industry by them using available resources effectively with the help of the government and come up with a strong strategy so as to compete and stabilize its product in the aviation industry.

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

In this case, a good model of business ethics would include the plus model of decision-making. According to the model, it is