Abstract The main purpose of the report is to conduct the independent analysis of the recent trends and development of Air Asia (low cost carrier model) in the current economic condition. And this report clearly explains about the methodological approach used to find‚ select and analyses the data. Also this report provides a brief outline about the Air Asia. In addition this report exactly speaks about how they sustain in their industry by using the recent trends and modern technology. Introduction
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Delta Air Lines (A): The Low-Cost Carrier Threat Problem: Delta Airlines didn’t have a comprehensive response to low-cost carriers across functions. Option: Delta should launch its own low-cost carrier. Problems: Nearly all major airlines had done this unsuccessfully‚ proved unsustainable over time‚ never had a high-cost carrier transformed into a low-cost carrier. Since deregulation (1978) the average return on investment below cost of capital for the 5 largest carriers. Due to 9/11 the demand
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AIR ASIA 1. a) Air Asia’s vision: • To be established as the leading low-cost carrier in the Asian region. AirAsia’s mission: • A low cost airline carrier that offers five-star service with 95% of on-time performance. • To be able to provide affordable airfares‚ at the same time promoting Malaysian hospitality and the local food. • To focus on customer’s needs by stimulating demand and offers the lowest fares‚ comprehensive distribution channel and developing various products and services. AirAsia’s
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core competencies and capabilities (i.e. cost and efficiency optimization/utilization) as a low-cost carrier (LCC) airline. Analysis The airline industry as a whole is quite competitive with multiple players and various elements effecting the industry environment. AirAsia has developed a specific set of resources and core competencies that it has exploited in order to become the leading short-haul LCC in South East Asia. AirAsia’s strategy employs cost and efficiency optimization by utilizing
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SUMMARY Tony Fernandes‚ as the Chief Executive Officer of AirAsia‚ decided to pursue his dream to start an airline with the following vision: “To be an airline that flies long-hauls with low fares with a corporate culture that is flexible and functional”. AirAsia has achieved its title as “The World Lowest Cost Airline‚” and was also one of the world’s most profitable airlines. This report provides an analysis and evaluation of internal and external of the company. Methods of analysis includes of
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Low-Cost Carrier A low-cost carrier or low-cost airline (also known as a no-frills‚ discount or budget carrier or airline or cheap flight) is an airline that generally has lower fares and fewer comforts. To make up for revenue lost in decreased ticket prices‚ the airline may charge for extras like food‚ priority boarding‚ seat allocating‚ and baggage etc. The term originated within the airline industry referring to airlines with a lower operating cost structure than their competitors. While the
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Walmart‚ a super retail store that offers a product for almost all needs at a low price‚ is guilty of closing many local mom and pop shops. The documentary film “Walmart the High Cost of Low Price” illustrates the effects felt by the local small business owners when a new Walmart opens in the area. Usually when there is a grand opening of a new business in an area there is a decrease in sales. When someone as large as Walmart moves into the area it is almost impossible to keep a local shop open for
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Member of Management Team Business Strategy Air Asia Revenue: 4Q 12 USD 1.62 Billion Number of employees: 8‚000+ HQ location: Kuala Lumpur‚ Malaysia Ownership: Listed on the Malaysian stock exchange Year founded: 2001 The company grew from two planes in 2002 to a feet of 120 aircraft fying 30 million people Vision “To be the largest low cost airline in Asia and serving 3 billion people who are currently underserved with poor connectivity and high fares.” Mission • To be the best company
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INTRODUCTION Air Asia Berhad was set up by Dato’ Tony Fernandes in 2001. In December 2001‚ Dato’ Tony Fernandes along with Dato’ Pahamin Ab. Rajab (Chairman‚ AirAsia)‚ Dato’ Kamarudin bin Meranun (Deputy Group Chief Executive Officer‚ AirAsia) and Abdul Aziz bin Abu Bakar (Director‚ AirAsia) formed a partnership and set up Tune Air Sdn Bhd (Tune Air)‚ an airline holding company then bought over AirAsia from government-owned conglomerate DRB-Hicom on December 2‚ 2001 which Air Asia was originally
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Feature Low Cost Housing’s main frame is steel structure modular house with the EPS color steel sandwich panel‚ rock wool‚ PU for the insulation. It can maximize customer require and satisfaction for the cost and quality; The roof‚ wall‚ door are all used sandwich panel‚ which with the function of water-proof‚ fire-proof‚ sound-insulation‚ heat-insulation. It can be assembled and disassembled in a very short time for project office or accommodation use‚ it has advantages in easy installation‚ low time
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