Business Case Study: Air Asia

Air Canada was founded in 1937, it was privatized in 1989. After facing net losses from 1990-1993, entered into profits in 1994. It was a founding member of star alliance in 1997, which has 27 partners headquartered in Montreal.

In the case study of Alaska Airlines, Kotter 's means 3-Develop the Change Vision and Strategy, and 4-Communicate for Understanding and Buy in are shown in the activities of the executive team in their acknowledgment and comprehension of the drastic changes and main drivers that were tended to between fall 2007 and mid-year 2010. In any case it is important to backpedal to 2006, when travelers were enraged by misused of their baggage and experienced long wait times to get their bags, there were times where the wait time would be so long that police would be called to calm the upset customers. Without a doubt, understanding into contributing causes could be followed back before 2005, when pilots, unsettled because of pay

American Airlines originally started as a small airline company called The Aviation Corporation. In 1929, The Aviation Corporation acquired smaller airlines to conform what was known as American Airways, Inc. By 1934, American Airways changed its name to American Airlines, Inc. The Douglas DC 3 was the first successful commercial aircraft

Next, one of the strengths for AirAsia company would be it has a very strong management team and also significant links with government and airline industry leaders. This can be said so is because the executive management teams are mostly built up by relevant industry experts and ex-top government officials. In addition, without the protection of national airlines brought about by deregulation, building alliances as strategy became necessary for many airlines to stay competitive and gain access to a global market too huge for any existing airline to dominate. There was a case where Shin Corp which is formerly owned by the family of former Thai Prime Minister which named Thaksin Shinawatra holds a 50% stake in Thai AirAsia. This has successfully helped AirAsia to open up and capture a sizeable

Air India is the national airline of India and also one of the biggest air company of the country in terms of passengers carried. It was started by Jehangir Ratanji Dadabhoy Tata in 1932 and was called Tata Airlines at that time. It started off carrying passengers and air mail between Bombay, Karachi, Ahmedabad, Bellary, and Madras. After World War II it became a public company and was christened ‘Air India’. Today Air India has a fleet size of around 108 aircrafts and flies to 84 destinations worldwide. It is mainly operated from Indira Gandhi international Airport, Delhi and Chhatrapati Shivaji International Airport, Mumbai. As of February 2016, Air India has a strength of 28,085 employees. In 2007 the airline was merged with the state owned Indian Airlines, thus forming a new company called National Aviation Company of India. In 2014 Air India entered the Star Alliance, thus becoming the 27th member of the globes largest airline alliance.

In this case, Asian Spirit which only started as an Airline Cooperative, had limited and small aircrafts and cannot expand its services to International flights. That is why they needed an Investor who can materialize such essential development. And thus came, Mr. Alfredo Yao through his Holding Company, AMY Holdings Inc. which bought total control of Asian Spirit from its founders.

AirAsia has face to the problems in the branches in Japan. AirAsia in Japan faced the problem which have to be shut down the operation on October 31, 2013, due to there is a lot of the low cost airline company in Japan. This is announced by the All Nippon Airways(ANA) as ANA was acquiring AirAsia Japan. This decision helped them to reduce to cost of losses. They had an operation loss up to 3.5billion yen after few months they started the operation.

Air Asia Berhad is also known to be a profit seeking company that has been well known for gaining profit by establishing itself as a leading low cost carrier in Asia. Air Asia Berhad was listed on the main market of Bursa Malaysia Securities Berhad in November 2004. Since 2001, due to pioneering the short-haul low-cost carrier model in ASEAN, the airline company has grown from a domestic airline in Malaysia to the leading low-cost airline in Asia serving around 121 destinations from 16 hubs in

Every airline will has its cost advantages over its large overhead expenses. The airlines has well develop of technology infrastructure to support the low cost of its operation. This can be seen through the company use technology to automate customer processing and maximize load on flights. To minimize the expense for maintenance and parts inventory, the company strengthen operational cost containment through very low staff levels, lack of amenities on flights and standardisation of aircraft. The low cost of operation can help to boost up the business of Air Asia Company. Air Asia Company will continuously focus on maintaining a low cost base in order to keep its advantages and gain more

AirAsia’s net profit ending Jun 2005 was reported US$29.2 million, a 126% increase year-on-year. The end of June 2005 financial summary showed that AirAsia, the leading low cost airline in Asia, had a huge reserve (bank and cash

Nowadays, many people will choose to purchase flight tickets via online. Majority of the people spend least 3-4 hours to search information about the destination they are going to. Therefore, it shows the service quality of Air Asia too. If the Air Asia online system is lag and slow, it will decrease the customer satisfaction. Besides, customers will imagine the same situation happen during the flight departure time. It might lead a bad image to their consumers. Base on a Verified Review from SKYTRAX website, Mr. Hanaruddin(Malaysian) at 13th February 2017 says that he would fly with AirAsia again. He experienced a flight from Kuala Lumpur (KUL) to Kuching(KCH), he said it was a really nice and comfortable flight. He noticed that AirAsia arrives earlier or on-time despite being delayed for half an hour. The cabin crew was really friendly. Thus, this shuts all his negative views towards AirAsia(AK).

Started with 6000 staffs, 10 aircraft that flies to 18 counties from the very beginning to nowadays, Singapore Airline flies

AirAsia’s philosophy “Now Everyone Can Fly” is related to their vision of becoming the largest low fare airliner in Asia and serving 3 billion customers who are underserved with poor connectivity and high fares. Their mission is to become the best company to work for; thus employees are being treated as part of a big family, to create a globally recognized ASEAN brand, to offer the lowest fare so that everyone can fly with AirAsia, to maintain the highest quality product, and innovative technology as a measure to reduce cost and enhance service.

Performance of substitutes. Performance of other airlines are quite similar with Airasia’s given there is no obvious product differentiation. Performance of airlines normally consists of the accuracy of take off time, aircraft performance and staff services. So far, Airasia had constantly reviewed its performance and improve its services.

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.