Airasia

3. Outsourcing It can save time for the company to manufacture or assembly its products.

Furthermore, depending on which location this company decides to produce in, we may be able to further reduce costs by paying for pieces produced. In addition, we would avoid any contact with unions reducing any additional problems like strikes, contract negotiations, and terminating poor performance workers that may affect our production time to customers. In addition, lowering labor, operating, and overhead costs though outsourcing would allow this company to potentially lower out price levels. And with our high demand, this can lead to an increase in sales and the ability to take market shares from our

Focusing on the low-cost, long-haul segment - AirAsia X was established in 2007 to provide high-frequency and point-to-point networks to the long-haul business. AirAsia X’s cost

Over the years, company sustained low operation costs and tickets prices following well-developed strategy. Among other measures, it was able to keep prices low by flying only one airplane type, minimizing service and maintenance expenses, and convincing employees to cut gate turn-around times and make the airline more efficient (Fitzpatrick, 2005).

Cost is a very integral part of accounting and finance for a business. Usually a product or service can be produced or completed at a lower price while achieving the ideal quality measures and standards. Outsourcing services in some business departments such as IT and finance could greatly reduce operating costs savings which will greatly impact the bottom line. Specialization is another key business process in which outsourcing can play a key role. A large percent of businesses products or processes are specialized and outsourcing to another provider could initiate higher quality. Flexibility is another benefit of outsourcing. Flexibility offers the company the benefit of only paying for the service that is integral for operations management. For example, a company could outsource a part of the finance department that handles payroll. Instead of paying an employee full time to

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.

AirAsia believes in the hassle free, no frills, low fare business concept and feels that keeping costs low needs high efficiency in every part of the business. Efficiency creates savings which are then passed to the customers so that they will able to purchase on the affordable price but still with a high quality of air travel. AirAsia targets people who want to travel around Asia for leisure or business purposes. The fares of Air Asia are relatively known as a lower fares than the other airlines. Selected strategy used by Air Asia targeting to passengers who are willing to travel without frills of meals, airport lounges or frequent flyer miles in exchange for fares which is

It is of a crucial importance to not only gain new clientele but to also gain and maintain their trust. Therefore, customer and brand loyalty is a challenge for Emirates Airline. The company needs to attract diverse clientele and have specific strategies to expand its market and keep these customers constantly satisfied. To reach this goal Emirates Airline offers an air mile system which offers customers a free flight when they fly certain miles with the Emirates Airline. Furthermore, the company offers high quality accommodation, a fairly big space between seats and a very professional service.

The analysis supplied within this report has been undertaken from the perspective of a current shareholder in Singapore Airlines (SIA). The report provides critical assessment of the company's overall performance, assessment that would be relevant and meaningful to shareholders.

The concept of Air Asia being the lowest cost airline carrier has been embedded into most of consumers mind through consistent media advertising and branding. They believe in low fare business model and emphasises that keeping their cost low requires high efficiency in all areas, therefore creating savings which passed on to their passengers in order for reasonable air travel.

A survey conducted by Management Centre Europe shows how managers view service and the key issues affecting future profitability and growth.

Relative price. The price of substitutes are about the same with Airasia’s. Some of the airlines offers cheaper price to achieve profitable passenger loads. The price offered depends on the time gap between the booking date and flight date. The longer the date, the cheaper will be the price. If the tickets are purchased last minutes, the price will be about the same with premium airlines like MAS and Singapore Airlines. Thus, in this situation customers would switch to the premium airlines.

Legal changes can affect a firm's costs (e.g. if new systems and procedures have to be developed) and demand (e.g. if the law affects the likelihood of customers buying the good or using the service).

AirAsia was previously owned by DRB-Hicom, a government-linked company. Its airline had not been able to take off and was eventually sold to Tune Air Sdn. Bhd in 2001 which are owned by Tony Fernandes and four entrepreneurs, for a token sum of RM1.00 together with an accumulated debt of RM40 million.

What goods and services does a government want to provide? To what extent does it believe in subsidizing firms? What are its priorities in terms of business support? Political decisions can impact on many vital areas for business such as the education of the workforce, the health of the nation and the quality of the infrastructure of the economy such as the road and rail system.