Air Asia Essay

821 words - 4 pages

Air Asia Case:

Q 1) Comment on business level strategy adopted by Air Asia? How has Air Asia achieved cost leadership?
 Answer 1) High aircraft utilization: Air Asia uses the aircraft in very high frequency and high turnover of flights; these add value to customer convenience and enable low cost. Air Asia has the fastest turnover in its region; is 25 minutes.
a) Low fare no frills: Air Asia does not have frequent flyer miles program and private airport lounge. No free foods and beverages even snack in flight, additional meal and service required passenger to pay more.
b) Point to point network: All Air Asia both short-haul (4 hours or less radius) and medium to long-haul are ...view middle of the document...

Air Asia applies cost leadership strategy on its operations. It employs staff with low wages (most of the secondary important staffs are from Indonesia, Bangladesh, Nepal, and China which has low wages). The main hub is in Low Cost Carrier Terminal in Malaysia and in any other secondary airport across countries which allowed Air Asia has low airport fees.

The following makes Air Asia gain cost leadership:
1) High Aircraft Utilization
2) No Frills
3) Modernize Operations
4) Basic Amenities
5) Point to Point Network
6) Lean Distribution System
7) Effective Positioning
8) Value Chain Analysis of Airline Industry

2. Identify the ways Air Asia can sustain its competitiveness through the business level strategy it has adopted.
Answer 2) Air Asia is a successful company in applying low-cost leadership strategy; it is proven by its performance. Air Asia should provide better service but still in very low cost; some services are very easy to do and will not affect much on price. Here are some services that might be done by Air Asia.
(1) Air Asia needs to provide an improved customer service; as it is directly related with the customers. Even applying low-cost leadership industry, service industry needs good service.
(2) All the booked flights are inflexible; passengers are unable to change the flight details (personal detail, change person, date and time). On the other hand, other airlines offer this service. It is one of the considerations of uncertain customers. This...

Other assignments on Air Asia

The Adverse Effects Of Rapid Urbanization In Asia

858 words - 4 pages the population of Mumbai is living in slums. Bangkok has a 22% concentration of it population in slums. Singapore is one of cities in Asia with the lowest concentration of slum population, only 14% of its population live in illegal housing. (1) An increase in population goes hand in hand with increased traffic. With traffic comes air pollution. In order to cut back on emissions, cities would install mass transit systems. Normally a city would

Airasia Case Study

2197 words - 9 pages brief discussion on some of the takeaways and a summarizing on what was discussed throughout this paper. History and Background Low Cost Carriers development in Asia started around 1990s. It all began in Japan and Philippines, these two nations were liberalized by huge domestic markets; SkyMark Airlines and Air Do; also in 1996, Cebu Pacific Air established the low fare strategy in the Philippines. These early-start LCCs (Low Cost Carriers


3376 words - 14 pages , Virgin Express is a low cost airline, but it still offers complimentary coffee and inflight magazine, and they are based at Brussels primary airport. Case Study—AirAsia Story of AirAsia Air Asia, as the second Malaysian National Airline, provides a totally different type of service in line with the nation's aspirations to benefit all citizens and worldwide travellers. Such service takes the form of a no frills - low airfares flight

Air Transport

1407 words - 6 pages facilities. Air Services The air services are provided by Civil Aviation and are managed by two public sector corporations. Air India Limited is the major international river of the country. It has bilateral air services Teements with 100 countries of the world and pirates air services to the USA, Europe, the Russian Confederation, the Middle East, East Asia, Far East and Africa. Air India owns a fleet of 37 aircraft consisting of 7 B-474-200, two

Hong Kong Budget Airline Analysis

4127 words - 17 pages from students to people who have low-medium salary * People with high salary are unlikely to prefer budget airlines because they want not only medium of transportation but also services provided by the airline. (e.g. comfortable seats, meals, etc.) For example, Air Asia in Japan failed because the majority of customers highly preferred full-service carrier to low-cost carrier. They wanted more than a mere transportation. Reference: http

Naval Museum, Goa

490 words - 2 pages International relations Naval Museum | Caralise Mascarenhas 1323 TYBBA | International relations Naval Museum | Caralise Mascarenhas 1323 TYBBA | Naval Aviation Museum India's one and only Naval Aviation Museum is situated along the Vasco-Bogmalo road barely six kilometres from the port city of Vasco-da-Gama. This Naval Aviation Museum established in Oct'1998 is the only one of its kind in the whole of Asia. May be perhaps, it


4252 words - 18 pages INTRODUCTION Officially named Air Asia Berhad, the company is a Malaysian-based low-cost airline founded in 1933. Air Asia is Asia’s largest low-fare, no-frills airline and a pioneer of low-cost travel in Asia. Air Asia won the Skytrax World’s best low-cost airline award in 2007, 2009, 2010 and 2011. It has the world’s lowest operating costs at 0.035 US dollars per seat-kilometer in 2010. It is also the first airline in the region to

Avaition Industry Info

5964 words - 24 pages /Super Four. The Sixer initiative recently won the 'The Pacific Asia Travel Association' (PATA) award for the year 2003, at Bali, Indonesia. Air Sahara's frequent flyer programme called Cosmos offers faster accruals, lower redemption bars and requires no minimum balance for redemption. 6.3 Jet Airways   In May 1974, Naresh Goyal founded Jetair (Private) Limited with the objective of providing Sales and Marketing representation to foreign


435 words - 2 pages secure 45% delivery share there by 2011. However, Airbus needs to be mindful of supply chain risks from its vast supplier network- the A380 was delayed by 2 years resulting from production issues, causing Airbus’s share price to drop (26% in 2006) and reduced earnings by €4.8 billion in 2010. The aerospace industry is still growing rapidly especially within Asia. PEST analysis has shown that political and economical factors, e.g. deregulation and

Airasia Strategic

6436 words - 26 pages tough. According to Daniel Chan (2000), with just about two years to go to the turn millennium, air wars over Asia are hotting up, with some of the world’s biggest airlines engaged in intense over Asian skies[1]. Each Of Airplanes Company in the world trying to conduct some strategies to compete with another competitor in their industry. A lot of airplane companies come out with different strategies to make their company better than their

Employee Satisfaction

927 words - 4 pages FedEx Express invented express distribution and is the industry’s global leader, providing rapid, reliable, time-definite delivery to more than 220 countries and territories, connecting markets that comprise more than 90 percent of the world’s gross domestic product within one to three business days. Unmatched air route authorities and transportation infrastructure, combined with leading-edge information technologies, make FedEx Express the

Similar Documents

Air Asia Essay

4256 words - 18 pages , AirAsia found that it is difficult to fly outside the Malaysia. Double-sided agreement will be the main barriers in the way of low cost carriers. The landing charges will also be another big factor which influence on costing of low fare airlines. Besides, the low cost airline industry which situated in South East Asia has been underdeveloped just because the aviation market is tightly adjusted by bilateral air rights contract. While in the economic

Air Asia Management Strategy Essay

7114 words - 29 pages Air Asia – Strategic IT Initiative Submitted by: Charles Kho Sandy Hofman Aruan Christian Tjitrahardja Ramaratnam Narayanaswamy Faculty of Economics and Commerce University of Melbourne 2005 306-669 Strategic Enterprise Systems Group Project Executive Summary IT is one of the major enablers of AirAsia’s successful low cost business model. Based on the environmental scanning performed, the demand for Low Cost Carrier (LCC) is

Airasia Essay

866 words - 4 pages CASE STUDY – AVIATION AIR ASIA Airline takes off with Comscentre The Business Challenge As Air Asia continue to expand their network of destinations, particularly through their international long-haul brand, Air Asia X, increasing pressure was being placed on their global call centre located in Kuala Lumpur. Additionally, there was increasing demand for a single global data and telephony network which could seamlessly expand with the

Revenue Recogniation Essay

1365 words - 6 pages plan routes as they mostly plan short routes so that their costs are low. Outbound Logistics: As air Asia mostly uses their operations through online as their ticketing process is totally online and customer can get their tickets book online and they can also print their boarding card from their homes, Air Asia uses general electric engine for their customer safety as customers are the main preference of the company. Sales & Marketing: Air Asia