highly competitive and relatively saturated American and European markets‚ respectively. On the other hand‚ AirAsia is an imitator in a market with limited competition and growing demand from a previously nonexistent market segment. AirAsia chose to be centered on cost leadership. According to Porter’s generic strategies (1985)‚ one of the generic strategies is the cost leadership. AirAsia wanted to be a leader in the lowest cost to run their business. Therefore‚ building and sustaining it’s competitive
Premium Low-cost carrier Airline Southwest Airlines
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 founded. AirAsia has been expanding rapidly since 2001 where Dato’ Tony Fernandes later
Premium Advertising
objectives before setting a price‚ the company must decide on its strategy for the product. If the company has selected its target market and positioning carefully‚ then its marketing mix strategy‚ including price‚ will be fairly straightforward. AirAsia is introduced as Asia’s first low-fare‚ no-frills airline in 2002‚ according to its tagline “ now everyone can fly”‚ this positioning required charging a low price. Besides‚ marketing mix strategy which is price is only one of the marketing mix
Premium Pricing Marketing
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 its key resources; thus
Premium Airline Aircraft Southeast Asia
has captured a lot of benefit from globalization‚ and AIRASIA is one of the most successful companies in the air industry. AIRASIA was founded by a government owned organization DRB-Hicom in 1993 and started operation on 18 November. However‚ it was not successful and fallen in heavily-indebted until the end of 2001 when AIRASIA was purchased by Tune Air Sdn Bhd for the token sum of one ringgit. With promotional fares low as RM1 (US $0.27)‚ AIRASIA has turned profit in 2002‚ and since that time it became
Premium Airline Low-cost carrier Southwest Airlines
In Asia‚ the of cheap global aviation trends and AirAsia future development After the financial tsunami‚ the earthquake in Japan‚ flooding in Thailand‚ the Middle East unrest ‚in America and Europe in a slump‚ and the current rise in oil prices‚ leading to the improvement of global airlines operating costs‚ for-profit declined. By higher oil prices affect the long-range passenger airlines is almost impossible to make money‚ only short-range well-managed and have a chance to show a surplus. Before
Premium Low-cost carrier Airline Environment
Price War between Airasia and Malaysia Airlines The purpose of the analysis is to evaluate the supply and demand of two main air line operators in Malaysia‚ which is Airasia and Malaysia Airlines by determines the price and quantity and change in the market of Airasia and Malaysia Airlines. Airasia is a leading airline company in providing low cost airline services while Malaysia Airlines is more towards providing high quality airline services. In the past time‚ the demand of Malaysia Airlines is
Premium Supply and demand Airline Low-cost carrier
the Share Swap Between MAS and AirAsia September 22‚ 2011 at 8:52am The timing of the share swap could not have happened at a worst time as it will largely benefit AIRASIA shareholders even without their own effort and Khazanah has given away a large portion of their net worth in MAS for free. By troubleshooters2011 1. MAS MANAGEMENT HAS INITIATED THE RIGHT STRATEGIES AND IMPLEMENTATION TO TURNAROUND THE COMPANY AND THEREFORE DO NOT NEED THE TIE-UP WITH AIRASIA A quick analysis on the current
Premium Rate of return Investment Malaysia Airlines
manager of AirAsia Bhd can give rewards based on the job performance of the employees. For example‚ the employee in AirAsia Bhd is qualified to be given reward if the working performance of the employee reaches the demand of the job description.
Premium Reward system Management Motivation
We could see that this system used by AirAsia is successful as they have been doing really well and improving since year 2001 from first airline in the world to introduce mobile booking‚ to be a public listed company on the Malaysia Stocks Exchange (Bursa Malaysia)‚ after having on 22 November 2004. In line with its growth and expansion plans‚ AirAsia has secured a 175 aircraft commitment with Airbus for its A320s. The 175 aircraft order will place AirAsia as the single largest customer for the
Premium Low-cost carrier US Airways Air France