Airasia

In: Business and Management

Submitted By smartken1688
Words 272
Pages 2
What is the macro and industry environment in the Southeast Asian region for the entrance of new budget airlines? What opportunities and challenges are associated with this environment?
Answer: Competition for the Southeast Asian budget traveler has increased significantly in recent years as more carriers have entered the market. These new entrants are attracted by the large number of potential travelers, and the fact that government regulations in the region have decreased making it easier for companies to operate.
However, fuel prices are a concern as are other costs involved in running airlines such as providing ground operations and passenger services. Some airlines including AirAsia are forming alliances to share these additional costs.
2. How might demand for low-fare service differ in the Asia-Pacific region from North
America and Europe?
Answer: Substantial opportunities have been created for low-fare airlines in Asia by the relatively low income levels in most Asian countries, the availability of alternative modes of transportation, and the low percentage of the population that utilizes more expensive airlines, as well as the increased awareness of the U.S. and European trends favoring lowfare providers. .
It is important to note that the Asian markets are substantially more sensitive to fare differentials than the North American market due to the competition from high speed rail.
Moreover, although currently changing, Asian markets are still relatively limited in their utilization of the full potential of Internet resources, and still depend on travel agents and other middlemen. In addition, Asian low-fare airlines have a smaller market share, compared to their dominance in Western markets. Finally, in Asia, low-fare airlines…...

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...currently operates scheduled domestic and international flights to 80 destinations (including subsidiaries routes) across 25 countries and with over 400 daily flights covering Indonesia, Malaysia and Thailand and for international routes mostly from Kuala Lumpur to Australia, Bangladesh, Brunei, Cambodia, China, France, Iran, India, Japan, Laos, Myanmar, New Zealand, Philippines, South Korea, Singapore, Sri Lanka, Taiwan, the United Kingdom and Vietnam. Air Asia’s main hub is at Kuala Lumpur International Airport as well as the head office of the company and its affiliated airlines, Thai Air Asia and Indonesia Air Asia, have hubs in Suvarnabhumi Airport and Soekarno-Hatta International Airport.In this assignment,we will obtain information about AirAsia more. TASK A: DEFINITION OF MARKETING #1: * “Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably”. Source: Chartered Institute of Marketing (CIM) (http://www.studymode.com) DEFINITION OF MARKETING #2: * "Marketing is human activity directed at satisfying needs and wants through exchange process." Source: Philip Kotler (http://www.learnmarketing.net/marketing.html) COMPARISON   All two definitions mention specifics of marketing and give an a concept about marketing today. One important thing, two definitions mention is that marketing help companies closer with their customers and help them make profit.......

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...Strategic Analysis of AirAsia Berhad Strategic management process refer to a way by which managers build and choose a set of strategies for the organization in order to respond quickly to new challenges and achieve better performance. Hence, the organization will be able to achieve its mission, vision and objectives. In additional, the strategic management of an organization entails three ongoing processes: strategic analysis, strategy formulation and strategy implementation. Strategic analysis is the key stage as the information collected in this stage will shape the next two stages. This is because the analyzed information and data gathered can affect an organization’s goals and objectives. The focus of the analysis should be on the understanding the needs of the business as a sustainable entity, its strategic direction and identifying initiatives that will help the business to grow. Next, leaders must make strategic decisions by review the information gleaned from completing the analysis stage. It is a process to decide the best course of action in order to achieve organizational goals and objectives. The issues facing the organization must be prioritized by their importance to an organization success as well. It is critical in this stage to develop alternative approaches that target each step of the plan due to the fluidity of business and economic situations. Lastly, firms must take necessary actions to implement their strategies and this requires leaders to allocate...

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...Company Background and analysis of AirAsia This report conducts an analysis of AirAsia, the world’s Lowest Cost Airline. AirAsia is a Malaysian low cost airline. AirAsia was found in 1993 and it started its operations from 18 Nov 1996. It was established initially by DRB-Hicom, a government owned- conglomerate. On 2 December 2001, the heavily- indebted airline was purchased Tony Fernandes former Time Warner Executive. Tony was inspired by the Low-Cost Carrier business model of Southwest Airlines and proposed to start a Low-Cost Carrier but the government refused to issue a new license and requested Tony to buy an existing airline. Hence Tune Air set up by Tony and his investors bought Air Asia for a token sum of RM1. Before 2001. AirAsia failed to attract enough passengers from Malaysia Airline to establish its own stand in the market. The turning point for AirAsia was in 2001 subsequent to its purchase by Tony Fernandes. Tony Fernandes enrolled low-cost airline experts to restructure the business model of AirAsia. He invited Connor McCarthy, formerly the director of the group operation Ryanair, to join his executive team. In the late 2001, AirAsia airline was re-launched in Malaysia as trendy, no-frills operation with three B737 aircraft as a lowfare, low-cost domestic airline. AirAsia’s simple slogan “Now Everyone Can Fly” has won the heart of customer’s. AirAsia’s profit for the second quarter (i.e.,ending 31 december 2004) was reported RM 44.4 million, which is a 323......

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...Introduction: AirAsia is one of the award winning and largest low fare airlines in the Asia expanding rapidly since 2001. With a fleet of 72 aircrafts, AirAsia flies to over 61 domestic and international destinations with 108 routes, and operates over 400 flights daily from hubs located in Malaysia, Thailand, and Indonesia. Today, AirAsia has flown over 55 million guests across the region and continues to create more extensive route network through its associate companies. AirAsia believes in the no-frills, hassle-free, low fare business concept and feels that keeping costs low requires high efficiency in every part of the business. Through the corporate philosophy of “Now Everyone Can Fly”, AirAsia has sparked a revolution in air travel with more and more people around the region choosing AirAsia as their preferred choice of transport. AirAsia creates values through the following vision and mission. AirAsia’s vision is to be the largest low cost airline in Asia and serving the 3 billion people who are currently underserved with poor connectivity and high fares. Whereby, their mission is to create a globally recognized ASEAN brand, attain the lowest cost so that everyone can fly with AirAsia and maintain the highest quality product, embracing technology to reduce cost and enhance service levels. EXECUTIVE SUMMARY AIR ASIA Strategic management has played a key role in the success of many business organizations in the world......

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...STRATEGIC ANALYSIS OF AIRASIA THE BEST LOW-COST CARRIER AIRLINES IN THE WORLD ASSIGNMENT FOR MICROECONOMICS FACULTY OF ECONOMICS AND BUSINESS NATIONAL UNIVERSITY OF MALAYSIA BY: IWAN BUDHIARTA P-46048 MALAYSIA – 2009 I. INTRODUCTION A low-cost carrier (also known as a no-frills or discount carrier) is an airline that offers low fares but eliminates all “non-essential” services. The typical low-cost carrier business model is based on: * a single passenger class * a single type of airplane (reducing training and servicing costs) * a simple fare scheme (typically fares increase as the plane fills up, which rewards early reservations) * free seating (which encourages passengers to board early) * direct, point to point flights with no transfers * flying to cheaper, less congested secondary airports * short flights and fast turnaround times (allowing maximum utilization of planes) * "Free" in-flight catering and other "complimentary" services are eliminated, and replaced by optional paid-for in-flight food and drink. Simple Product A typical low cost airline product is extremely basic. It focuses on getting passengers from point A to B, cutting out all the “extras”. This means there are no meals, drinks or snacks served free on board. In certain airlines, these may be purchased on request. The aircraft have Narrow seating to permit greater capacity. Low cost airlines offer all-economy flights, with no additional space......

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...when it began operations, AirAsia had just two planes and a host of obstacles - Sars and the Sept 11 terrorist attacks included - preventing it from taking off. Today, the Malaysia-based budget airline boasts a fleet of 80 aircraft that ply over 122 routes, with 480 flights to more than 65 destinations daily. Group CEO Tony Fernandes has been instrumental in building the AirAsia brand. Known for its strong marketing and branding culture, AirAsia was recognised as one of Malaysia's 30 Most Valuable Brands in 2008, and also made it to US-based business magazine Fast Company's top 50 list of most innovative companies in the world last year. THE BOLD AND THE CREATIVE Explaining the reason behind AirAsia's strong marketing culture, Kathleen Tan, its regional head of commercial, said: "Marketing reflects brand attitude and personality. We're bold, inspired and we encourage out-of-the-box thinking. We do things differently and do not submit to mediocrity." She revealed that AirAsia's creative marketing input comes not only from its marketing team, but from staff, including pilots, engineers and ground crew. She said: "When somebody comes up with a pioneering idea, we don't shoot it down and say: 'Oh, that's unconventional.' Instead, we play with the idea and find the best way to employ it to advance our brand or introduce new products and services." CONQUERING THE WORLD In 2007, the new low-cost, long-haul affiliate of AirAsia was launched. Called AirAsia X, the first flight......

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Airasia

...version essay Pest Analysis On Airasia Pest Analysis On Airasia Print version essay is available for you! You can search Free Term Papers and College Essay Examples written by students!. Join Essays24.com and get instant access to Pest Analysis On Airasia and over 30,000 other Papers and Essays Category: Miscellaneous Autor: anton 12 May 2011 Words: 1354 | Pages: 6 1.0 Introduction Purpose The purpose of this analysis is to conduct an environmental analysis in the context of AirAsia's international business operations, describing the major variables involved and the impact of the specific threats and opportunities confronted by AirAsia besides that, this analysis also helps to identify AirAsia's competitive strategy and analyse how the strategy is implemented to gain competitive advantage. Background on AirAsia AirAsia was set up by Dato' Tony Fernandes in 2001. In December 2001, Fernandes and his partners set up Tune Air Sdn Bhd (Tune Air), an airline holding company then bought over AirAsia. Now, AirAsia has become one of the most successful airlines in the Southeast Asian region and the pioneer of low cost and no frills travel in Malaysia. The airline now flies to over 40 destinations in Malaysia, Thailand, Indonesia, Macau, China, Philippines, Cambodia, Vietnam and Myanmar. AirAsia has formed 2 successful joint ventures in Thailand through Thai AirAsia, and Indonesia through AWAIR. Starting from 2 aircraft till now AirAsia owns 28 and has......

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...The Indian government allowed a foreign direct investment of 49% in February 2013 and subsequently Air Asia India began operations in India on 12 June 2014 with Bangalore as its primary hub. In 2013, the carrier said it would steer clear of Delhi and Mumbai, and instead focus on growing traffic in smaller cities, such as Bangalore and Chennai. AirAsia cited congestion, competition and the high landing charges in the two biggest Indian airports as reasons to avoid the political and financial capitals. It will fly on relatively uncharted routes. In October, AirAsia hopes to connect Bangalore with the Northeast. Believe in network strategies that don't involve existing heavy-flying traffic or a lot of historical trend. I rather study the latent potential and long-term growth opportunity," says he. He wants to tap the traffic emanating from smaller cities like Srinagar, Indore and Raipur. And it wants to replicate its successful low-cost model, which has fetched it handsome returns in Southeast Asia. This requires Chandilya to keep costs on a tight leash, go for innovative route planning, offer attractive fares to first-time travellers and tap ancillary revenues. The cost-consciousness is reflected in the route plan too. For instance, the company chose to kick off operations in Bangalore, Chennai and Kochi because it already has a presence in these markets through its international flights and, therefore, it did not have to spend much on creating brand awareness. The new routes......

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...AirAsia Berhad (284669-W) Annual Report 2010 Annual Report 2010 welcome on board. AirAsiA BerhAd AnnuAl report 2010 A Promise mAde, A Pledge KePt When AirAsiA stArted out As A loW-cost Airline in 2002, We pledged to mAke Air trAvel AffordAble for everybody. todAy, nine yeArs doWn our corporAte journey, We knoW We hAve kept to our initiAl promise. in october 2010, we flew our 100 millionth guest, a young, newly married indonesian housewife who was going to visit her husband working in india. Just as we made her travel dream come true, we are delighted to have done the same for more than 100 million guests. We have kept our fares down thanks to our disciplined focus on keeping our operating costs the lowest among the world’s airlines. We offer a million free tickets every year. While enabling everyone to fly, we are also connecting people to places that were never connected by air before. We have achieved our Vision of being the largest low-cost airline in Asia, serving those who previously had no access nor the means to enjoy air travel. We have done this by staying close to our Mission of: • • • being the best company to work for, treating each Allstar as a member of our extended AirAsia family creating a globally recognised ASEAN brand maintaining the highest quality product, embracing technology to reduce costs and enhance service levels Central to our promise is our great team of Allstars who have proven time and again that hard work, creativity,...

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Airasia

...low cost carriers (LCC) in Asia Pacific region – AirAsia, analyzes the current business environment, competitive advantages, value chain, current implementation of information technology, and the recommended future implementation of technology in customer relationship management (CRM) implementation to pursue competitive differentiation and profitability effectively in the future. Professional Diploma Program in Logistics and Supplier Chain Management Project Studies - Enabling Technology in Airline Industry 4 COMPANY BACKGROUND AirAsia is one of the award winning and largest low fare airlines in the Asia expanding rapidly since 2001. With a fleet of 72 aircrafts, AirAsia flies to over 61 domestic and international destinations with 108 routes, and operates over 400 flights daily from hubs located in Malaysia, Thailand, and Indonesia. Today, AirAsia has flown over 55 million guests across the region and continues to create more extensive route network through its associate companies. AirAsia believes in the no-frills, hassle-free, low fare business concept and feels that keeping costs low requires high efficiency in every part of the business. Through the corporate philosophy of “Now Everyone Can Fly”, AirAsia has sparked a revolution in air travel with more and more people around the region choosing AirAsia as their preferred choice of transport. AirAsia creates values through the following vision and mission: AirAsia Values Vision To be the largest low cost......

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...low cost carriers (LCC) in Asia Pacific region – AirAsia, analyzes the current business environment, competitive advantages, value chain, current implementation of information technology, and the recommended future implementation of technology in customer relationship management (CRM) implementation to pursue competitive differentiation and profitability effectively in the future. Professional Diploma Program in Logistics and Supplier Chain Management Project Studies - Enabling Technology in Airline Industry 4 COMPANY BACKGROUND AirAsia is one of the award winning and largest low fare airlines in the Asia expanding rapidly since 2001. With a fleet of 72 aircrafts, AirAsia flies to over 61 domestic and international destinations with 108 routes, and operates over 400 flights daily from hubs located in Malaysia, Thailand, and Indonesia. Today, AirAsia has flown over 55 million guests across the region and continues to create more extensive route network through its associate companies. AirAsia believes in the no-frills, hassle-free, low fare business concept and feels that keeping costs low requires high efficiency in every part of the business. Through the corporate philosophy of “Now Everyone Can Fly”, AirAsia has sparked a revolution in air travel with more and more people around the region choosing AirAsia as their preferred choice of transport. AirAsia creates values through the following vision and mission: AirAsia Values Vision To be the largest low cost......

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Airasia

...The Low Cost Airline: AirAsia A study of opportunities, challenges and critical success factors LGT 3007 Air Transport Logistics [pic] Introduction History of low cost airlines The low-cost concept became a moneymaker in the United States, where it was pioneered in the 1970s by Southwest Airlines, the model for budget carriers elsewhere like Ryanair and easyJet in Europe. Definition of low cost airlines A low cost airline generally has many features that differentiate it from the traditional carriers. These features include ticketless travel, online ticket sales, no international offices, no frequent flyer points, no free food and beverages, no inflight magazines, no club lounges, use of secondary city airports. Not all low cost airlines have these features, and not all airlines that have some of these features are low cost airlines. For example, 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 offering, 40%-60% lower than what is currently offered in this part of Asia. Their vision is "Now Everyone Can Fly" and their mission is to provide......

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