entry depends on the strength of- i) Customer has little brand loyalty. If consumers of Airasia do not have brand loyalty‚ then the strength of the threat of new entrants is very high. The high numbers of competitors in the industry also decrease Airasia’s customer loyalty. Most of the travelers prefer low cost. New competitors which want to come in the industry have to spend little to compete with Airasia. ii) High capital requirement. The industry of airline needs large volume of start-up capital
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Revenue Management System; it understands‚ anticipates and reacts to the behavior of customer to maximize revenue for the organization. This takes into account the operating costs and aids AirAsia to optimize prices and allocate capacity to maximize expected revenues. The optimization is done on two levels in AirAsia: Seat (Every seat is considered an opportunity to maximize revenue. Seats are available at various prices in different points of time. A reservation done at a later date will be charged
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Macro-Environment Analysis for AirAsia The factors of Macro-enviroment suggest that 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
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AirAsia The Sky’s the Limit Question 1 Air Asia was established in 2001 by CEO Tony Fernandes and his three partners. It is an Asia’s leading low fare airline. By using a strong slogan “Now Everyone Can Fly” AirAsia has successful created its image in passengers’ mind. Gerry‚ J.‚ et al. (1993‚ pg 148)‚ SWOT analysis is a valuable approach for AirAsia to review its strengths‚ weaknesses‚ opportunities and threats‚ aiming to identify the current strategy of AirAsia’s organization and hence target
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the development of Intranets and Extranets forced airlines to refocus their strategy on technological innovations in order to enhance their competitiveness. (Buhalis 2004). AirAsia believes in the low fare business concept and feels that keeping cost low requires high efficiency. The major threat and challenges which AirAsia is facing right now are competitive environment due to industry rivalry and the need to create differentiation to gain competitive advantage among other low cost carriers.
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forgetting the global economic catastrophe which has limited the new entry of competitor plus reducing the necessity of upgrading of planes in near future. However‚ both suppliers grant almost similar standard aircrafts; hence the switch to AirAsia is low. Furthermore‚ AirAsia places a bulky amount of order from Airbus in order to expand its routes internationally. Therefore‚ the authority of suppliers may weaken as Airbus’s profit may be influenced by Air Asia. Bargaining power of customer-High- Customers
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things up. AirAsia Philippines Leasing 16 Aircraft MANILA‚ Philippines - Newly licensed AirAsia Inc. (Philippines) will lease 14-16 Airbus 320 planes to service domestic and international routes within 1.5 to 4 hours flight from its Clark‚ Pampanga hub in the next half decade. The airline on Wednesday received its commercial air carrier certificate (AOC) from the Civil Aviation Authority of the Philippines (CAAP) in the latter’s Manila office. In March‚ last year‚ AirAsia Inc. registered
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to another airline. The price would not be very significant in differences‚ which it depends on the availability of competitor’s services and suitability of the flight time that prompts them to switch. Moderate access to distribution channel. Airasia is the first airline company to enable customer book and purchase air tickets online in Malaysia. This makes its website www.airasia.com very famous among frequent travelers. Although new competitors can create a website for their company‚ it is quite
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Title AirAsia Online Ticketing System General Description Airline ticketing systems offer users information on airline schedules‚ taxes on airfare‚ passenger reservations and ticket records. It allows users and agents to buy and distribute tickets to all available flight destinations on the AirAsia network. The user only needs to indicate the desired destination and dates‚ and the available flight schedule and prices will be made available. Purchasing can be
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Case Study – AirAsia Formula(on Valida(on In 2001‚ Time Warner Execu(ve Tony Fernandes purchased the ailing‚ debt-‐riddled‚ government-‐owned AirAsia. In a remarkable feat (using blue ocean strategy principles) Fernandes engineered a remarkable turnaround‚ turning a profit in 2002 and swiJly opening mul(ple new routes
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