Growth of AirAsia Berhad

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

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

Airasia is Malaysia low cost airline. Airasia company try to make the lowest cost of air ticket so that everyone can try to sit fly travel to everywhere with Airasia because in

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

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

and beyond. They cover all parts of the world, as well as operating international air hubs in Miami, Hamilton, Cologne, Taipei, and the Philippines.

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

Air Asia is a World’s Best Low Cost Airline. It had been established since 2001 with only two aircraft. The company started with a debt of USD11 million (MYR 40 million). Starting from year 2001, Tony Fernandes served as Chief Executive Officer. Nowadays, Air Asia has strengthened its position in the market and it manages to be a great competitor in the airlines industry. Recently, they have won the World’s Best Low Cost Provider and Asia’s Best Low Cost Airline for seventh consecutive year at the Skytrax World’s Airline Awards. This proves that the company has served as a low cost provider.

Air Asia flies to 88 destinations and carries over 220 million guests. Air Asia operates a fleet of Airbus A320 aircraft, representing one of

Air Asia is a world-wide known airline nowadays. It was being established in December 2001. Air Asia’s website www.airasia.com is the most popular e-commerce and search website. Air Asia airlines allow people to book their own flight without needed through a travel agent. Air Asia has become an award winning and the largest low cost carrier in Asia. Air Asia now flies to over 61 countries around the world, with a fleet of 72 aircraft. It has operated over 400 flights daily from hubs located in Malaysia. Air Asia’s famous quote “Now Everyone Can Fly”, has sparked a revolution in air travel with more and more people around the region choosing Air Asia as their preferred choice of transport.

Strong management team – Air Asia Bhd has a very strong management team with strong link and connections with the government and airline industry leader. This is because Air Asia consist of diverse background of the executive management teams which include of different kind of industry expert and professional and ex-top government officials. For an example, Shin Corporation (formerly owned by the family of former Thai Prime Minister which name – Thaksin Shinawatra) has hold a 50% of share in Thailand’s Air Asia. This also help Air Asia to grab a huge market in the Thailand. Beside that Air Asia has strong working relationship with Air bus, which help them to purchase aircraft with big discount. The aircraft which the Air bus purchase

As a regional hub for the Asia pacific region, Singapore and Singapore airlines play a major role in connecting people across the globe.

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.

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

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