AirAsia- A Case Study
Contents
Introduction
This case study aims at evaluating the rationale of AirAsia’s strategic plan and how have these strategies been associated with its structure and system. It further aims at assessing the sustainability of the business model and its competitive advantage. AirAsia’s performance and business process management will also be discussed in details. The case study will also discuss the culture and management style of AirAsia and its ability to address to the challenges faced by the company. Furthermore, the report aims at highlighting the expansions of AirAsia with future expectations.
Background of AirAsia
Air Asia, an ailing, in debt, government owned airline was purchased by Tony Fernandes, a Malaysian Indian entrepreneur in 2001. Fernandes invested all his valuables and saving in purchasing this airline company that only possessed two Boeings and was deeply surrounded by many debts. Initially, when Fernandes purchased AirAsia, most of the leading entrepreneurs claimed that the airline won’t survive for long. Tony Fernandes appointed leading experts who possessed expertise in low cost airline strategies to reconstruct the business model of AirAsia. AirAsia was relaunched by the end of 2001 in Malaysia introduced as a low cost airline for domestic travels with three Boeings. Just after one year of his takeover, the company cleared all the debts it had and opened many new routes leaving behind the most dominating airline of that time, Malaysia Airlines. Within no time, AirAsia became a profit making firm from a debt ridden company.
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