Trends and Development of Air Asia

2015 WordsJul 21, 20129 Pages
Abstract The main purpose of the report is to conduct the independent analysis of the recent trends and development of Air Asia (low cost carrier model) in the current economic condition. And this report clearly explains about the methodological approach used to find, select and analyses the data. Also this report provides a brief outline about the Air Asia. In addition this report exactly speaks about how they sustain in their industry by using the recent trends and modern technology. Introduction As the airline industry has gone so simple when compared to olden days, they are looking forward to improve themselves in the global market. This industry helps all the countries in Economic growth, Tourism and Investment in international…show more content…
In fact Air Asia has the youngest Airbus fleet in Asia with average fleet age is about 2 years. Thus by this strategy Air Asia is able to increase its standards and more over decrease its additional costs. Increase in fleet size has also resulted in the increase of its revenue. Bulk Purchasing of Aircraft has also been done to get the lowest and the best prices from the manufacturer thereby reducing the cost of purchase. For example, 200 A320neo aircraft were ordered at the Paris Air Show in 2011 by AA to increase its fleet. Air Asia in order to expand its operation in ASEAN region has made joint venture with Thailand and started Thai Air Asia with Bangkok as base. Now, Air Asia has sign a joint venture with Philippines and started their operation in August 2011 Diosdado Macapagal International Airport as the base. Thus in group Air Asia operates to 57 destinations in 12 countries has 102 routes and 656 flights daily. Air Asia has 10 hubs in three countries and 2 hubs yet to add in near future. Competitive rivalry of Air Asia As a result number of budget airlines entering in the field and offering low fares equivalent to Air Asia. Tiger Airways with its base at Singapore and Cebu Pacific Air of Philippines are some of the budget airlines, which are the closet rivals of Air Asia. In this section we will discuss about resources and capabilities, which are considered to be the
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