Swot Analysis: SWOT Analysis Of Air Asia

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 is a low cost leader in Asia. However, the competitors for AirAsia are numerous and it is hard for AirAsia to combat with those competitors. Thus, AirAsia will spare no effort to compete with them by keep the costs low. This lead to the bad perception of the customers that budget airlines like AirAsia may compromise safety to keep the costs low and those accident cases, terrorist attack, and disaster happened before will affect the customer confidence and AirAsia may face the losses of customers.

Airasia want try to be the largest low cost airline in Asia and serving the 3 billion people who currently underserved with poor connectivity and high fares.

Air Canada was formerly known as Trans-Canada Airlines and was born on the April 10, 1937. It all started with $5 million and three aircrafts; a crop duster and two Electras. The first passenger operations began on September 1, 1937. An Electra, carrying two passengers and mail, flew from Vancouver to Seattle, in 50 minutes. The tickets in 1937 cost about $7.90 one-way and $14.20 return.

AirAsia X’s main strength is the low price that it offers for customers. For most airlines in the industry, it is extremely difficult to keep the price low for long-haul flights as the full services offered in most airlines increase the operating costs. In addition, X also benefited from the expansive network, infrastructure and customers that AirAsia already has that enabled them to grow fast with good financial outcomes. On the other hand, X’s main weakness is the technology. The website always crashes and the company doesn’t have its own database of customers. X also doesn’t enjoy from a strong relationship with the Malaysian Transport Ministry. This can be detrimental to the company as it finds competing with Malaysia Airlines in some profitable routes to be difficult. However, X has some opportunities. For example, in order to keep the low price ticket, cooperating with fuel companies which will offer low fuel price and increasing demand in low cost airlines will bring profits. The major threat for AirAsia X is the protectionist measures taken by the Malaysian government that prevented X from flying planes to some destinations with high demand. This would have been a very

Delta Air Lines is a provider of scheduled air transportation for passengers and cargo, whose route network is centered around a system of hub, international gateway and key airports that gather and distribute traffic, and supported by a fleet of aircraft that is varied in size and capabilities. The company’s network includes international joint ventures, marketing alliances with foreign airlines, loyalty memberships and agreements with regional carriers.

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.

In 2012, Delta Air Lines had emerged like the phoenix, from the ashes of a 2008, Chapter 11 bankruptcy to become the second largest airline worldwide. Through its network of operations, Delta provides air transport both domestically and internationally for cargo, mail, and passengers. In the past, Delta successfully utilized mergers and acquisitions to increase its market share and grow its existing service base. Since 2012, Delta has been aggressively seeking out new opportunities for further growth in a volatile market with high price elasticity and low brand loyalty. The 2008 merger with Northwest Airlines left Delta with higher long-term debt, making Delta vulnerable limited debt assumption required for future growth.

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 serving three billion people who are currently poor understanding and connectivity, high fares. To work, whereby employees deal is part of a large family of best companies. In order to achieve the lowest cost, so that everyone can fly with Air Asia. Maintaining the highest quality of products. Embrace technology to reduce costs and improve service levels also aimed at implementing the 70 million passengers a year, from 2014 begin within six years. Moreover, set up the low-cost airline terminal at Kuala Lumpur International Airport into a regional hub for low-cost air travel. Last is planning to introduce more routes, increased frequency and development of existing one. A

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.

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

Even AirAsia is seen as Mas biggest threat, however, seeing that how both of these airlines promotes entirely different packages and offerings, Mas deemed these few obstacles as their main threat, which is the volatility of fuel price due to Iraq invasion by US, staff resistance of given plan and government intervention in setting up boundaries for the CEO to act accordingly to what they thinks fit.