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AirAsia Case

Executive Summary

SMO 441

Submitted: March 8, 2011

Abi Sanni

Aly Remtulla

Kelsey Gamble

Kendra Jocksch

Nancy Moke

Company background

Tony Fernandes, as the Chief Executive Officer of AirAsia, decided to pursue his dream to start an airline with the following vision: “To be an airline that flies long-hauls with low fares with a corporate culture that is flexible and functional”. In January of 2002, Tony re-launched AirAsia (previously a struggling government-owned airline) with only 3 planes and started serving the South-East Asian Market. In 2004, it began its first international service and in 2007, expanded into long-haul flights run by a different brand: AirAsia X. That year, the
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This can be achieved by providing flights to places with similar culture and way of life, and to places of similar geographic conditions.
3) Remain one of the “Cost Leaders”: Because one of Air Asia’s main competitive advantages is being able to provide flights at low costs, there should be a high priority placed on keeping unit costs low while expanding. This can be achieved by maintaining their already existing “cost conscious” policies and decision making.

Conclusion AirAsia should stick to its vision to run long-hauls because the company has the capacity to offer these flights at lower costs than competitors. An amalgamation of the AirAsia and AirAsia X brands will reduce brand confusion. However, it is important to expand strategically to keep their LCC strategy strong. We suggest that AirAsia limits its long-hauls to countries with favourable weather conditions and also to countries with a similar culture and

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