his executive position in Warner Music. This proved to be the turning point for the Malaysian airline industry. With the help of Conor McCarthy‚ the Irish low cost carrier Ryanair’s former director‚ a new business model for AirAsia was developed. The low cost carrier (“LCC”) model involves providing a no-frills flight offering‚ which involves cutting off value added services such as in-flight meals‚ allocated seating‚ and in-flight entertainment. This cost reduction is then passed on to customers
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there is a huge scope of growth for AirAsia in Asia. The huge population with rise in middle class and a lot of disposable income together with the absence of affordable forms of transportation post a high demand for AirAsia as a low cost airline. It is also anticipated that due to the rapid urbanization trends the air travel market will continue to grow at a fast pace. The geographical structure of Asia which is archipelago will also contribute to the air transport. Example: between East and West Malaysia
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determine strengths and weaknesses of the industry. Those five forces are now used to determined Air Asia’s strengths and weaknesses which are shown as below: Threat of Entry There is a high barrier entering airlines industry since it requires high capital to set up everything such as purchase or lease air craft‚ set up office‚ hire staffs‚ and etc. Thus‚ this has reduced the treat to Air Asia. Moreover‚ brand awareness is quite important in this industry. Thus‚ to enter this industry not
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Group 2 Michelle De Jesus Beatrix Evangelista Keisha Dawn Flores April Danielle Marquez Korina Robles Nicole Zulueta Company Case (AirAsia: The Sky’s the Limit) 1. What are the micro and macro environmental factors that have contributed to the early success of AirAsia? Micro Environmental Factors CEO Tony Fernandes – a strong believer in “leading by example”‚ he works alongside his team that allows him to get to know them better. Partners – although AirAsia has limited resources‚ it has
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low-cost carrier. 1.0 EXTERNAL ANALYSIS 1.1 Industry Identification AirAsia belongs to the airline industry. Competition in the airline industry is very intense and is growing rapidly together with the increase in demand for budget fares across Asia. The different airlines are making use of several strategies to compete with one another in the airline industry and it is crucial for airline companies to identify their competitive advantages so as to be able to achieve profits and brand equity globally
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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.(Wong Pui Man Cary‚ March 2009). Air Asia has their own associate companies as well for instance‚ Air Asia Thai Air Asia and also
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Airways Limited (MAL) on 12 October 1937. It was a joint initiative of the Ocean Steamship Company of Liverpool‚ the Straits Steamship of Singapore and Imperial Airways which led to a proposal to the Colonial Straits Settlement government to run an air service between Penang and Singapore. On 2 April 1947‚ MAL took to the skies with its first commercial flight as the national airline. Fuelled by a young and dynamic team of visionaries‚ the domestic carrier turned into an international airline in
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The Porter’s five forces model‚ in this assignment‚ can be used to access the competitiveness of the airlines industry. It can review the competition within the industry plus checks for threat from outside. Bargaining power of supplier-High- In every industry‚ there has to be someone to play the role of a supplier. It is important to know the power of the supplier as it will affect the industry. There are only two main suppliers in the airline industry‚ Airbus and Boeing‚ thus there isn’t much
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Air Asia 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
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over long periods of time. AirAsia approaches to prevent this occurring and to generate continued growth is to frequently re-assess its strategy so that they build strong businesses in the attractive industries of the future Company overview - Air Asia Berhad AirAsia’s leading airline was established with the dream that everyone can fly. Since 2001‚ the company has swiftly broken travel norms around the globe. It has risen to become the world’s best. With a route network that spans through more
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