The Weaknesses And Strengths Of Airasia Company

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.

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.

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 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 2001, AirAsia was founded by Tony Fernandes. After six years, Fernandes realized the company should create a airline separated from AirAsia to focus on the low cost long-haul market which he called AirAsia X. Azran Osman-Rani was appointed to the become the CEO of the newly established company. The company had an initial success by being the first mover. However, there were some problems that they had to face along the way as they were in a completely new market using an untried business model. One of the main challenges for the company is the protectionist measures taken by the Malaysian government to protect the national airline, Malaysia Airlines (MAS). The other major problem is the limitations on the general

Philippine Airlines used to be one of the largest airlines and is the oldest commercialized airline in Asia. But then it had a down-turn which made Cebu Pacific overtake as the leading airline company. AirAsia, on the other hand, is low-cost airline based in Malaysia and is an emerging airline company in the Philippines. Looking at the history, there was a drastic shift of income levels among the three companies. Two of which are operating almost at a loss. From what was said, there is a tight battle among their finances and rapid movements of their stock

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,

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.

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

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.

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 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.

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