Business Level Strategy of 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.

The “ Battle Of The Air” has been used to describe current situation in the airline industry. The emergence of “ No Frills “ discount carriers such as Air Asia, Mahlindo, Firefly have threatened the survival of the traditional giants such as MAS, SIA, Thai Airways in the APAC regions and even the Big Boys across the continents such as United, Delta, Continental, Luftansa, Emirates and US Airway ( Myron J.Smith, 2012 ) face competition

Air Asia is the founder of low cost airlines in the Asia region since the advent of deregulation by Malaysian Government in late 90’s which in itself is a very important economic factor, without deregulation a low cost Airline cannot enter the market. For the reason that of Air Asia’s lower price, the factors affected are the

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

In 2001, AirAsia was founded by Tony Fernandes. After six years, Fernandes realized the company should create a airline separated from AirAsia to focus on the low cost long-haul market which he called AirAsia X. Azran Osman-Rani was appointed to the become the CEO of the newly established company. The company had an initial success by being the first mover. However, there were some problems that they had to face along the way as they were in a completely new market using an untried business model. One of the main challenges for the company is the protectionist measures taken by the Malaysian government to protect the national airline, Malaysia Airlines (MAS). The other major problem is the limitations on the general

American airline industry is steadily growing at an extremely strong rate. This growth comes with a number economic and social advantage. This contributes a great deal to the international inventory. The US airline industry is a major economic aspect in both the outcome on other related industries like tourism and manufacturing of aircraft and its own terms of operation. The airline industry is receiving massive media attention unlike other industries through participating and making of government policies. As Hoffman and Bateson (2011) show the major competitors include Southwest Airlines, Delta Airline, and United Airline.

The airline is state owned enterprise so they need to adhere to the supply chain prescripts when procuring services as legislated by the Public Finance Management Act. The supply chain procedures needs to be fast paced and respond to the needs of the changing environment that the airline operates under. Inappropriate conduct should be dealt with in accordance with the

1) Slacking human resource management: Compared to other airlines whose plane-to-staff ratio is 150 and each cabin crew member works 70 hours a week, Air India’s is 210 and 50-55 hours a week respectively. The staff’s performance linked incentive at Air India is 65.92%. 60% of Air India’s expenditure goes into paying the employee’s wages but

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.

Airlines Industry is large and growing, it is also the most fiercely competitive sector. It facilitates international trade, world economy growth, tourism and international investment. The airline industry has over time with the use of modern technology been able to take advantage of the short haul, high frequency and gained a competitive advantage over other forms of travel, such as buses and railroad travel. Additionally, the airline industry still holds the market for global travel at a low cost and convenient way to travel. The aviation industry gives a good contribution to the GDP which includes the following: airline services, general aviation, civil airport operations, aircraft manufacturing, and

The Airline industry has experienced continual problems with rising costs with both fuel and maintenance which has caused them to increase their fees to the consumers to pay for those rising costs. This paper will help explain what an airline such as Delta does to help alleviate such costs without forcing its consumers to flip the bill through high fees that consist of tickets, baggage fees and food. The costs of doing business in aviation today have spiraled out of control making it very expensive for both airlines and the

The four cost components of the airline industry – fuel, landing fees, aircraft leasing and taxes - has made operating Lucky Air in a productive manner a constant challenge. Even though the company has a high competitive advantage being linked to Hainan Airlines, it still needed to upgrade its business strategy on a regular basis to ensure maintaining the lead they had over the other airlines. The company like all its counterparts face a myriad of restraints including heavily regulated governmental laws, limitation to price reduction, a low potential for rapid expansion due to government restrictions and heavy taxes.

Elimination of several services including in-flight meals, assigned seating and baggage transfer to connecting airlines results in costs savings; and

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

Boeing’s 2004 sales were $52.5 billion from customers in 145 countries with 30% coming from international sales. Boeing has more than 159,000 employees in 48 states in the U.S. and 67 countries. Their future success is based on a three-pronged strategy of running healthy core businesses, leveraging strengths into new products and services, and opening new frontiers. Boeing has decided to take a different approach by focusing its strategy on the development of smaller, midsize aircrafts since they believe that airlines want the flexibility of using smaller airports and travel longer distances. Their future success is depended on the 787 Dreamliner. However, Boeing considers the introduction of the A350 as a sign of lost confidence in the A380