Terrorism has occurred in Thailand and Indonesia; most notably the Bali bomb of 2002. ECONOMIC ASPECTS • AirAsia holds 49% of Thai AirAsia with 1% held by a Thai individual. The remaining 50% is held by Shin Corp.‚ owned by the former Thailand prime minister‚ Thaksin Shinawatra. Shin Corp. has financial strength‚ synergy in information technology and telecommunications‚ which support AirAsia Internet and mobile phone bookings. • National trends: - Malaysia’s economy may expand as little as 4 percent
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1.Potential strengths of the new entrants in the low cost air transport industry 2.Increasing competition in e-commerce 3.Escalating prices of fuels used in business operation 4.Attack by the low-cost government airlines 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
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Officer AirAsia Tan Sri Dr. Tony Fernandes has a personal credo - "Believe the unbelievable. Dream the impossible. Never take no for an answer." He studied at Epsom College‚ UK‚ and the London School of Economics and qualified as an Associate Member of the Association of Chartered Certified Accountants in 1991. He became a Fellow Member in 1996. He was admitted as a member of the Institute of Chartered Accountants in England and Wales (ICAEW) in 2008. Tony has been the Group CEO of AirAsia since
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(5) synergy in ingormationtechnology and telecommunications‚ which support AirAsia Internet and mobile phone bookings. ShinCorp. allows subscribers of the Shin mobile phone flagship‚ Advanced Information Service‚ being able toreserve tickets through its short-messaging service (SMS). AirAsia with its politically powerful backermay well grow up to bite. This helps it open the Thailand market he IPO strengthens AirAsia balance sheet‚ further cuts its existing lowcosts at 2.5 US cents per ASK and
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Case Analysis on the Article‚ ¡§Competitive Turbulence in the Airline Industry¡¨ (Segmentation‚ Targeting and Positioning) EXECUTIVE SUMMARY Airline industry has 4 sectors identified: Full-service‚ Budget‚ Limited-service‚ Premium-service Segmentation and Targeting: Psychographic‚ Behavioral‚ Geographic and Demographic Positioning: Value proposition matrix (more for more‚ less for less‚ etc.) Conclusion and Recommendations: « SIA in marginal value proposition
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Porter five forces of AirAsia Rivalry among existing competitor Air Asia offers flights with lower price that other companies‚ but there are some companies that also offer service by the same price such as Malindo Air and Firefly and also these companies provide service with the same level of Air Asia so‚ in this case rivalry among existing competitor is high. Threat of substitutes We can define substitutes as a product or service that can be replaced with original product and give more satisfaction
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companies. Besides that‚ Airasia has high switching costs. Most of Airasia’s aircraft are Airbus models. Previously‚ the company used Boeing models‚ which they lease it and the company had since phased out most of the models and replace with Airbus. If Airasia is to switch to Boeing again‚ then the cost will be high. This is because training cost for employees to suit the aircraft features must be provided. Furthermore‚ the technology used by Airbus is the most advanced‚ thus Airasia must rely to the Airbus’
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AirAsia spearheaded ease airfares in Asia and is presently as of now the biggest low toll‚ no nonsense aircraft in Asia. It is too one of the biggest aircrafts in all of Asia regarding travellers conveyed. AirAsia has moreover been voted the World’s Best Low Cost Airline in 2009 and 2010. AirAsia Berhad is as of now situated in the Low Cost Carrier Terminal (LCCT)‚ Kuala Lumpur. Worldwide Airport
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budget ailrline‚ Scoot‚ will begin operations this model in 2012‚ joining Malaysia’s AirAsia X and Australia’s Jetstar‚ a Qantas subsidiary‚ in flying long-haul in the region. * Transatlantic budget carrier Zoom Airlines ceased all operations because of financial difficulties in 2008. * International Lease Finance Corporation (ILFC) to lease six Airbus A330-300 aircraft to AirAsia X between 2013-2014. AirAsia X CEO aims at being the dominant market leader in the low-cost long-haul segment.
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factors that might affect the AirAsia’s supply and demand levels and its cost. The external environment can be analyzed by conducting a PEST analysis and Poter’s 5 Forces model. Thereafter‚ an analysis of the industry and competitive environment of AirAsia will assist in identifying the main oppurtunities and threats. PEST Analysis - Macro Environment The PEST analysis is used to describe a framework for the analysis of a range of macro environment factors including the Political‚ Economical‚ Social
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