Strengths
• 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
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Air Asia always create various promotion to attract their customer. Besides that, Air Asia also have employees with good marketing skills and technology of advertising which can influence the asia customer attraction .
Weakness
• Own Maintenance / repair / overhaul (MRO) facility – Although it was a good strategy when they started with only Malaysia as the hub and a few planes to maintain. But now , few hub that situated in (Malaysia, Thailand, and Indonesia) currently own with over 100 planes and about 100 planes to be received in few year. Air Asia must have to ensure the continues and proper maintenance or service of the planes which also help to keep the overall at the low cost. It is a competitive disadvantage that Air Asia do not own their belonging of MRO facility.
• Lot of complaint from customer on their service – Recently, Air Asia has received a lot of their consumer complaint about the service. Example , customer might not get the refund or changing to the next flight , if the flight are delay. Furthermore, these problem also due to the Air Asia do not have much routes as compared to other Airline. Which mean AirAsia can’t provide much flight schedule compared to the Malaysia airline (
Delta’s Management team is seeking to strengthen the company’s market and financial position by proposing to acquire American Airlines. An assessment of American Airlines business operations, its resources and environment will identify the company’s operational and financial strengths, weaknesses, possible opportunities and threats. This will enable Delta to recognize the best strategy to create the most effective synergy for this acquisition. Evaluating the SWOT analysis on American Airlines is a core requirement and a key step to assessing the feasibility of the acquisition; detecting its operational and financial factors could have a profound effect that can assist Delta in determining the strategic direction that would be advantageous to the company.
Referring to the SWOT analysis, we assume the most uncontrollable issue imposed on C.P. is the circumstance of fierce competition existing in the current airline industry. Consequently, as alternative submissions, the company should remain constantly advancing new strategies, namely acquisition and introducing of a budget confederate.
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
AirAsia’s brand name is well-established in Asia Pacific. It expanded its route network aggressively in local and international destinations. At the end of 2002, it has covered all the major destinations in Malaysia and operated in over 25 countries and over 400 international and national destinations. Due to those aggressive expansion, AirAsia is able to penetrate and stimulate the potential market, and successfully gained the customers loyalty among the local and international market. Based on the research, most of the customers are loyal to AirAsia and willing to choose AirAsia again when they
AirAsia’s brand name is well-established in Asia Pacific. It expanded its route network aggressively in local and international destinations. At the end of 2002, it has covered all the major destinations in Malaysia and operated in over 25 countries and over 400 international and national destinations. Due to those aggressive expansion, AirAsia is able to penetrate and stimulate the potential market, and successfully gained the customers loyalty among the local and international market. Based on the research, most of the customers are loyal to AirAsia and willing to choose AirAsia again when they
American Airlines, Inc. (AA) is a major airline of the United States. It is the world's largest airline in regards to accumulated passenger miles. American Airlines took off on April 15, 1926 when Charles Lindbergh flew a bag of mail from Chicago to St. Luis in a DH-4 biplane. A year later the first passenger flight flew from Boston to New York, heralding the real first passenger airplane travel by American Airlines. A subsidiary of AMR Corporation, the head quarters of American Airlines is in Fort Worth, Texas adjacent to the Dallas/Fort Worth International Airport. American operates scheduled flights throughout the United States and flights to Canada, Latin America, the Caribbean, Europe, Japan, 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
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.
To formulate a strategy that will help Southwest Airlines maintain its competitive edge in the US airline industry.
US Airways completed a merger in December 2013 . This merger provided much needed cash infusion into American Airlines, enabling it to emergency from
The strong competitive advantages which low – cost airline such as Air Asia is equally causing Mas to restructure their operations, there resource such as airplane and the quality of their cabin crew tends to be looked at deeply. Mas has the oldest airline in Malaysia they have to use the advantages to continue to stay at the frontline in the aviation industry by them using available resources effectively with the help of the government and come up with a strong strategy so as to compete and stabilize its product in the aviation industry.
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
Kingfisher Airline is a private airline based in Bangalore,India. The airlines owned by Vijay Mallya of United BeveragesGroup. Kingfisher Airlines started its operations on May 9, 2005 witha fleet of 4 Airbus A320 aircrafts. The airline currently operates ondomestic routes. The destinations covered by Kingfisher Airlines areBangalore, Mumbai, Delhi, Goa, Chennai, Hyderabad, Ahmedabad,Cochin, Guwahati, Kolkata, Pune, Agartala, Dibrugarh, Mangalore and Jaipur. In a short span of time Kingfisher Airline has carved a niche for itself. The airline offers several unique services to its customers. These include: personal valet at the airport to assist in baggage handling and boarding, accompanied with refreshments and music atthe airport, audio and video on-demand, with extra-wide personalizedscreens in the aircraft and three-course gourmet cuisine. Kingfisher is one of only 6 airlines in the world to have a 5star rating from Sky tax, along with Asian Airlines, Malaysia Airlines,Qatar Airways, Singapore Airlines and Cathay Pacific Airways. In ashort span of time Kingfisher Airline has carved a niche for itself. Theairline offers several unique services to its customers. These includepersonal valet at the airport to assist in baggage handling andboarding, exclusive lounges with private space, accompanied withrefreshments and music at the airport, audio and video on-demand,with extra-wide personalized screens in the aircraft, sleeper seats withextendable footrests, and three-course gourmet cuisine
A critical success factor was the ability to integrate all five work streams with other existing systems in place throughout Malaysia Airlines. SITA’s solution in a first for the region, and with a contract worth more than US$80million over a ten-year period, SITA has been undertaking a comprehensive overhaul of Malaysia
To be able to adjust with stiff competition that keep increasing in the airlines market, airlines industries tend to come up with different approaches and strategies to be more competitive. Air Asia, like any other airlines adopt strategic approach to marketing and expand their market reach and give better and satisfying service delivery to their target market. Being an industry that considers differentiation strategy, Air Asia continue to focus on their low cost approach, frequently flights approach, guest convenience, ticketless services, easy payment channels, internet booking, reservations and sales offices, and authorized travel