Airasia Low Cost Carrier Competition in Indonesia
CHAPTER I EXECUTIVE SUMMARY
Airline industry nowadays already have a lot of player that bring the industry to the fierce competition, the competition not only in one country anymore, it competition with the world player. From the full service carrier until the low cost carrier, no one can avoided the competition, it’s about competing or die. Low Cost Carrier in airline industry begin more famous start since 36 year ago by southwest airline, which now is the third largest airline in the world. AirAsia from Malaysia that start their operation in 1996 and transform their carrier into Low Cost carrier in 2001 after bought by Tony Fernandes. Not just AirAsia also Tiger Air from Singapore come with their Low Cost Carrier, and also Lion Air from Indonesia come with another Low Cost Carrier, and Jet Start from Australia that has been made by Quantas as their low cost carrier. In every low cost carrier have their own strategy to grab more passenger, most of them use their promo from free seat until buy 2 get 1, and from free baggage until no free baggage included. After all competition, AirAsia is the leader of Low Cost Carrier in Asia with their vision every one can fly, also AirAsia has won a lot of prestigious award from the world best low cost airline from 2009-2012. In 2011 AirAsia has more than 50 million passenger, and more than 100 routes.
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CHAPTER II INTRODUCTION
AirAsia established in 1993 and start their operation in 1996, AirAsia owned by DRB-Hicom. In 2001, Tune Air Snd Bhd company that owned by Tony Fernandes purchase AirAsia from DRB-Hicom. Then since that time AirAsia do rebranding and relaunching as a low-fare carrier. As AirAsia
Business model is a low cost carrier, it require the operation to be lean, simple and efficient. The several key that AirAsia have been employed toward this effect, including: • • • • • • Safety First High Aircraft Utilization Low Fare, No Frills Streamline Operation Lean Distribution System Point to Point Network
Airline industry nowadays already have a lot of player that bring the industry to the fierce competition, the competition not only in one country anymore, it competition with the world player. From the full service carrier until the low cost carrier, no one can avoided the competition, it’s about competing or die. Low Cost Carrier in airline industry begin more famous start since 36 year ago by southwest airline, which now is the third largest airline in the world. AirAsia from Malaysia that start their operation in 1996 and transform their carrier into Low Cost carrier in 2001 after bought by Tony Fernandes. Not just AirAsia also Tiger Air from Singapore come with their Low Cost Carrier, and also Lion Air from Indonesia come with another Low Cost Carrier, and Jet Start from Australia that has been made by Quantas as their low cost carrier. In every low cost carrier have their own strategy to grab more passenger, most of them use their promo from free seat until buy 2 get 1, and from free baggage until no free baggage included. After all competition, AirAsia is the leader of Low Cost Carrier in Asia with their vision every one can fly, also AirAsia has won a lot of prestigious award from the world best low cost airline from 2009-2012. In 2011 AirAsia has more than 50 million passenger, and more than 100 routes.
1
CHAPTER II INTRODUCTION
AirAsia established in 1993 and start their operation in 1996, AirAsia owned by DRB-Hicom. In 2001, Tune Air Snd Bhd company that owned by Tony Fernandes purchase AirAsia from DRB-Hicom. Then since that time AirAsia do rebranding and relaunching as a low-fare carrier. As AirAsia
Business model is a low cost carrier, it require the operation to be lean, simple and efficient. The several key that AirAsia have been employed toward this effect, including: • • • • • • Safety First High Aircraft Utilization Low Fare, No Frills Streamline Operation Lean Distribution System Point to Point Network