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Asia Aviation Public Company Limited

Decent Essays

Asia Aviation Public Company Limited

Air Asia is a Malaysian economic airline acquired by Tune Group in 2001. Before acquisition it was underperforming, but Shuk-Ching Poon and Waring (2010) state that in 2006 the airline company had a fleet of 35 Boeing and Airbus aircraft. The major success of the company is due to the low-cost carrier (LCC) business model. Major features of this business model include low service, point to point mode of travel, heavy utilisation of aircraft, ticketless reservation and flexibility in staff services. The airline company has carried 45.6 million passengers across 199 routes to 98 destinations across 17 countries (AirAsia Berhad, 2014). Furthermore, the various other services offered include flight bookings, low fair finder, customised travel, travel insurance and premium membership options (AirAsia.com, 2016a). The main market of Air Asia is in Malaysia, the market share in Malaysia is 46%, 19% in Thailand, 11% in Indonesia and 1% India (AirAsia Berhad, 2014). According to CAPA (2016a) the major competitors of Air Asia include Malindo Air, Cebu Pacific, Thai Lion Air and Thai VietJet. Furthermore, AirAsia Berhad (2014) show that the company has operations in countries such as Mauritius, Malaysia, Phillipines and India. This essay will briefly describe the profit and revenue situation of AirAsia, and then it will analyse the effect of the external environment factors. Finally a recommendation is provided to reduce the effect of such

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