Swot Analysis For Airasia

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4.0 SWOT analysis
4.1 Internal Strength
When Air Asia has operating flight scheduled in Indonesia, this country may provide an internal strength to Air Asia which is positive cash flow statement and have more growth upside (Zainul, 2014). By having a positive a cash flow statement, this company may be able to have more available cash for expansion plan purposes in order to improve the airline’s performance in the airline industry. Other internal strength on Air Asia is existing on distribution and sales network. Air Asia may distribute low fares and ancillary services through Travelport, which is global distribution channel in order to expand Air Asia’s offer to the travelers. At the same time, it exist on extensive network with 87 destinations …show more content…

In Indonesia, most of the different company airplane will be landing on Soekarno-Hatta International Airport which is located at Jakarta because it is the center town on this country. In this case, competitive market may exist as other airline competitor which is Garuda Indonesia, Malindo Air and others may create a different strategy to attract passenger to travel with these airline. Such as, they may offer at affordable ticket prices in order to serve better services to the customer. Additionally, there is also influence on Air Asia’s future profitability which is Air Asia may loses on company’s net profit. When Malaysia has a weak currencies, it was hit by Indonesia as Malaysia loses 406 million ringgit compared a net profit of 5.4 million ringgit year ago (Reuters, 2015). From this apart, it may allow high debt on Air Asia in Malaysia as they could not earn more profit to operate in the airline industry. Thus, competitor may provide a better services than Air Asia as soon and it also may faces a high debt to make Air Asia would not survive in the future operation …show more content…

Tax is the amount of money payment paid to government for income that included on product or services fee (Susson, 2013). When consumer are booking for cheap ticket prices on internet, there is not include airport tax fee on the ticket prices as they should pay for on check in desk. For example, domestic flight will increase about Rp75000 from Rp40000, whereas international flight tax will increase from Rp150000 to Rp200000 (Airport Tax Guide, 2014). In this case, we can see there is an increasing on taxation that may burden on consumer as they are more willing to pay more amount of taxes in order to travel with Air Asia. Additionally, some of the passenger may do not want to take flight on Air Asia as they think that the price of taxes is very sensitive and try to look for another transportation such as bus or ship to

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