The Success of Air Asia

Sun Country Airlines was started in 1982 by a small group of pilots and flight attendants in Minneapolis/St. Paul, Minnesota. After Braniff shutdown in 1982, Ken Sundmark approached Bob Daniels, a cofounder of Mainline Travel Incorporated about forming a charter service that would combine the assets of Mainline and the airline expertise of the now unemployed Braniff crew. Eleven Braniff pilots, two cabin attendants, an attorney, and a financial consultant (Links to an external site.) shared 49 percent ownership and Mainline 's principle owners, retained the other 51 percent.

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 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 was founded by the government on 2 December 2001 and the founder of Airasia is Dato Sri Tony Fernandes. Airasia can travel around the earth and ascend to become the world’s best in the year 2001. There also have some companies which link with Airasia such as Airasia X , Airasia Japan , Airasia Thai and other country . In addition, Airasia also is the low cost airline based on Kuala Lumpur, Malaysia. It is also the first Airline in the region to apply fully ticketless travel and unassigned seats.

The latest Airbus Global Market Forecast (GMF), released in December 2010, shows that key drivers for the marketplace are the replacement of aircraft for newer more eco-efficient models in mature markets, dynamic growth in new emerging markets, the further growth of low-cost carriers – particularly in Asia-Pacific and Europe, further market liberalisation and capacity growth on existing routes.

AirAsia was originally launched to compete with Malaysian Airline by offering low-priced air travels. It was, however, unable to liberalize the market to beat its rival and win and maintain its own niche. In 2001, Fernades bought AirAsia and hired experts in low-cost airline business to restructure the business model in use at AirAsia airline. This was the turning point for AirAsia. AirAsia is currently the second largest Airline in Malaysia and offers low-cost airfares. This is in consistence with their mission of providing affordable airfares and their vision that claims that everyone can now fly.

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.

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

Cambodia Angkor Air is an airline that is trying to gain market share in Cambodia and abroad. It would be interesting to investigate how smaller national airlines like this would use its different marketing strategies to try and obtain market share on international routes. It is also important since other existing or new airlines could see what would be a successful marketing strategy. Additionally, Cambodia Angkor Air or other interested parties could use this information to further develop their campaign or

The customer has slight brand loyalty with airasia ,most of them are loyal to the lowfare if airasia fails to offer the lowest fare customers will choose another airline company which able to offer them a cheaper price.As may be seen as a result that airasia customers do not have brand loyalty with the brand or the company itself .This reason attracts new entrants to enter.New entrants and competitors are decreasing the customers’ loyalty and airasia’s market.

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.

AirAsia can find new branches for their company in foreign country and hence, a great step for AirAsia to enter a new foreign market. Furthermore, it can increase the economic development of certain industry especially tourism by promote our country to other state. By having the low cost airlines that provides services there, the foreign tourist can come to visit our country during their vacation. This will increase the flow of foreign money into our

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.

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