Case Study “Air Asia: Flying Low-Cost with High Hope”

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Case Study “Air Asia: Flying Low-Cost with High Hope”

Strategic Management

Case study
“Air Asia: Flying Low-Cost with High Hope”

TengAmnuay Thanat

1. How did AirAsia’s short-‐haul business build its competitive advantage?

LCC Value Chain Aircraft fleet Cost Leadership Using the same Airbus A320-‐200 -‐ Lower cost in terms of buying large scale -‐ Low maintenance cost -‐ Efficient fuel consumption Secondary airport -‐ Low slot fee Differentiation

Route Planning

Rapid expand route selection -‐ In Domestic & SE Asia Innovative ticket reservations -‐ Short message booking -‐ Early booking Internet check-‐in service Xpress boarding Free Seating Selling Light meal

System and ticketing

Electronic booking system -‐ Reduce unnecessary staffs

Check in Boarding Inflight experience Baggage Handling Turnaround

Paperless boarding pass One standard seating Free Seating No in-‐Flight service No entertainment Baggage Handling fee High Turnover -‐ More flight per day -‐ No crew’s accommodation and allowance

AirAsia introduced themself as the first LCC in SE Asia region, by providing no-‐frills, casual short-‐haul service without serving meal, mileage point, or lounge etc. Which attracts newcomer

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