Introduction The combinations of demand for low budget airline in Asia region and leader with great visionary create the success chapter of AirAsia in worldwide. AirAsia extend their business coverage from only in Malaysia until today which cover most of the Asia show the company had implements the right business model to run their business for long term. The success of AirAsia attracts more company to step into low cost aviation market especially in Asia market. The status of AirAsia as Asia’s most success low cost airline will face huge challenge from other company in short future. Identification of problems With the famous slogan “Everyone can fly”, AirAsia had target their major customer group at lower income group (Tham, 2013).
The budget airline industry in south-east Asia has been underdeveloped because the aviation market is tightly regulated by bilateral air rights agreements. Threat of terrorism, people is afraid to fly after the September 11 terrorist attacks incident. Opportunities: Deregulation of goverment presented an opportunity for new routes and airport deals through open-skies agreements between countries, or the permission of entry of private airlines. Threats: Being a low cost airline, Air Asia is subjected to aviation regulations, government policy and government restraints, and dependent on the geography and infrastructure of Asia and travelling preferences of customers.
1. Situation Analysis a) Company History Air Asia is an ease aerial shuttle organization which was secured in 1993 with its headquarter in Malaysia and found by Tony Fernandes in 2001. The organization has been developing and changing a ton with the title of 'World's Best Low Cost Airline' in the yearly world carrier study by Skytrax for consistent 5 years. Presently they flight 25 nations and 78 goals with partner organizations Thai Air Asia, Air Asia X, Philippines Air Asia Inc and Indonesia Air Asia Philippines Air Asia Inc. Air Asia X was secured in 2007 which flies long separation with ease by decreasing complex code imparting and additional costs for superfluous administrations. They continue putting endeavors to give both sensible cost
Lower cost of flying urged more people to go on travel in a higher frequency and generated more income for entrepreneurs. This further intensified the air-bus market with additional competitors entering and existing firms were reorganizing strategically. Therefore, it was recommended that budget airline acquired another possible competitive edge, other than employing lower price, to establish an unceasing growth. References Fageda, X., Suau-Sanchez, P., & Mason, K. (2014). The evolving low-cost business model: Network implications of fare bundling and connecting flights in Europe.
There are low switching costs between firms, because customers always look for the best flight possible. They need to know all the flight details regarding timing and safety. There is some brand loyalty and each company has a niche. Lufthansa’s main target audience is frequent international business class travelers. They need certain amenities (i.e.
Air Asia is the first foreign airline to set up a subsidiary India. Air Asia will operate with world’s lowest unit cost 1.25rps (2.0¢ US) /available seat kilometer and a passenger break-even load factor of 52%. Air Asia currently operates 8 destinations in India with being Bangalore as HUB airport. And Air Asia totally uses A320-200 fleet. Go Air Go Air commenced its operations in 2005.
This is evidenced by the government bailout from its bankruptcy due to the recent air disasters. It is one of the most popular airlines (prior to MH370 and MH17 incidents) in the world, covering over 80 destinations across the globe. It is an airlift hub with extensive operations in South Asia, Middle East, Australia and other global destinations. The company focuses on strong branding which has enabled it to enter restricted markets. Meanwhile, one big advantage of Malaysia is its wide range of natural resources such as crude oil, natural gas, palm oil etc (MATRADE, 2011).
Southwest airlines for low-cost airlines of the founders of the business model, is also the world 's largest, one of the most successful low cost airlines operating. China 's low-cost airlines will draw lessons from his way of operating, change strategy, make it adapt to the Chinese market. For China, the development of low-cost airlines are promising. On the one hand, China 's aviation market potential is tremendous, many areas of air transport services are still in a stage of development. on the other
With the use of this framework in reengineering its call centers and the automation of manual processes through call centers. Malaysia Airlines was able to achieve the following: Cutting call center costs by 18% and tripling sales, through phone, e-mail, fax, and web chat they were able to service customers, Interactive voice response or online ticket payment, and Tracking of agent productivity done by managers. In doing the following, they were able to streamline their processes. Malaysia Airlines measure the strategic metric. It measures the functional goals so that Malaysia Airlines can boost their customer payment capabilities.
Case Analysis #1 – “Southwest Airlines: Is It Still the King of Cheap Flights” 1. Answer the questions at the end of the case. 1. Airline customers can be segmented in a variety of ways. Two of these include by purpose of travel and their destinations.