Airasia

In the local region, Qantas managed to outweigh its competitor by gaining a toll of 65% compared to its competitor. Evidently this shows Qantas is the number one preferred airlines compared to other competitor airlines like Virgin, Tiger Airways and Emirates airlines. However the situation is not the same in South East Asian region as Qantas only managed to obtain about 15% of market share compared to likes of Air Asia who leads the market share with 60% in this region. Conversely, this is not a concern for the airlines as the airlines managed to generate revenue of 5 billion dollars, with a predicted passenger growth of 4.9% which is equivalent to 2.9 billion passengers by 2034.

Airline industry is a unique and complex industry, thus without a good and right management, it is impossible for AirAsia to compete with the complex business environment. The management team of AirAsia consist of different background of executive management members team from different kinds of industry professionals and ex-top government officials. This ascendancy brings AirAsia to have a very strong connection with the government and the airline industry leaders. However, it is more concern in the management internally rather than creating competitiveness. The team is very famous in strategy formulation and execution. AirAsia formulated a brilliant blend of several proven strategies by other low cost airlines. Those strategies included Ryanair's Operational Strategy which emphasis on "no frill" and landing in secondary airport is a good starting point for the organisation. Second strategy like Southwest's People Strategy focus mainly on employee comes first strategy, while third strategy, EasyJet’s Branding Strategy is an excellent idea by linking the organization with other service providers like hotels, car rental and so

AirAsia is a strong company with several unique strengths that offer itself could not be defeated by others competitor companies.

Strategic Planning: They try to do a lot of promotion and low-cost air ticket because Airasia company want to help everyone can afford the price to buy their air ticket to travel all around the world.

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

The International Airlines industry will benefit over the next five years, as the number of tourists significantly rises up every month. Especially, there are more and more people from China are visiting Australia, which will provide Qantas with a great revenue. However, the competitors of Qantas, with low-cost tickets, can have a big pressure on Qantas and lead to decrease in price. Although, there will be a greater demand from Australians and international travellers to purchase tickets from this industry. The demand of the company is planning to rise at an annualised 1.2% over the next

Air Asia was founded in 1993 and has since grown to be one of the biggest airlines in the world. It initially operated in Malaysia and currently operates in over 25 countries (Ricart and Wang 2005). It began operations in October 1996, operating out of Kuala Lumpur as its central location (Ricart and Wang 2005). The airline was bought by Tune Air in 2001 for one ringgit, the equivalent of 0.26 US cents, at a time when the company had $10.5 million debt (Ahmad 2010). Tune Air comprised of three initial Malaysian investors, Tony Fernandes and Connor McCarthy (Ricart and Wang 2005). With Fernandes, a former Time Warner executive, at the helm, and McCarthy, RyanAir’s former director of

Nowadays aviation is a big industry. According to Hanlon (2004) it origins from 1919 just after the Second World War and half a century on it carries about 1.5 billion passengers a year, generating about $300 billion in revenue and employing about 1.7 million people.

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

Tony Fernades is known as the first person who introduced budget no-frills airline to Malaysia. Through AirAsia which he is the founder and CEO of, he ensures that “Now, everyone can fly”. Tony Fernades has taken many risks such as mortgaging his own house when he bought over the company which was in a poor state. Despite being able to acquire the company at such a low rate of one Ringgit, the purchase came along with 2 ageing jets, 200 employees and a debt of $11 million.

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.

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

Daft (1997) states that failure to do so may result in unsatisfied stakeholders withdrawing their support, leading to serious implications for the organization.