The Weaknesses And Strengths Of Airasia Company

Introduction Spirit Airlines’ success is due to its unwavering commitment to be amongst the leaders in the Ultra-Low Cost Carriers (ULCCs) market in the United States. Spirit Airlines has committed themselves to target customers of the airline travel industry who want to pay the lowest base fare price possible for quick and reliable travel to their destinations. Spirit controls their ticket pricing by taking a “no frills” approach that strips out all the extra amenities from their base fare ticket pricing. This approach allows Spirit customers to control the level of air travel they desire by allowing them to add back and pay for only the amenities they want. Furthermore, as for amenities, the frills such as free Wi-Fi, a la carte meals,

Low quality, no frills, lowest price base fare are features of the economy pricing model. Since Spirit Airline adopts 'the a la carte pricing model,' the basic fare paid buys only the flight itself and frills are charged separately. Furthermore, the airline asserts that customers should only pay for the services they request and should not subsidize other customers’ needs.More so, Spirit assumes that lower fares will stimulate the demand for air travel by attracting customers who would otherwise use other means of transportation. Hidden fees and questionable policies are dubious distinctions of Spirit Airlines.

Southwest has been projected as a low-cost airline and has been a source of inspiration to other low-cost airlines because of its successful pricing strategies. The company has targeted middle-class society as its potential customers and has adopted variable-price as another pricing strategy. The company has also introduced innovative programs and offer incentives along with discounts to attract a larger customer base under its variable cost pricing strategy (Bhasin,

The airline industry has always been a fiercely competitive sector. Since the invention of low-cost carriers, also known as no-frills or

Over the years, company sustained low operation costs and tickets prices following well-developed strategy. Among other measures, it was able to keep prices low by flying only one airplane type, minimizing service and maintenance expenses, and convincing employees to cut gate turn-around times and make the airline more efficient (Fitzpatrick, 2005).

1. Low Cost of Tickets 2. Low cost of maintenance – Fleet made up entirely of Airbus A320-200 3. Low Cost of Operations – Uses Budget Terminals 4. 1st low cost carrier in Singapore- Is recognized as the low cost leader 5. Operates in 13 countries & 35 destinations 6. Has tie-up with Hertz car rental

The airlines do not focus on the combination of quality and good service at a fair price; its focus is instead only on providing ultra low cost. It also charges customers for value added features and services. Thus the pricing is value added pricing. When compared to the competitors of Spirit for operating costs per seat mile; it is lower compared to other major airlines. The important points like encouragement to demand stimulation and preference for its low-cost model makes it successful for its low-cost pricing strategy.

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

Other than that, as the low cost airline in country have create many opportunity for their customers to use this airline to meet with their family or friends. For example, as a student that studied far away from their family, this type of company will be needed to enable them visit their family. It is standard that as a student, they did not have enough budgets to pay an expensive fee to book a

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

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.

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.

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.

Harvey (2012) claims that his partner, Dato Kamarudin and he had no prior airline experience they transformed AirAsia into one of the fastest-growing and most successful low fare airline in the world. The unique culture and management style are the main keys to make AirAsia succeed. Tony Fernandes worked hard to create an environment where “Allstar” (what AirAsia calls its team members) can learn, grow and achieve his or her own dreams.