budget no-frills airline. However‚ his application for a license from the Malaysian government was rejected. [edit] Launching AirAsia It was through Datuk Pahamin A. Rejab‚ the former secretary-general of the Malaysian Domestic Trade and Consumer Affairs Ministry that Fernandes got to meet up with the then Prime Minister‚ Tun Dr. Mahathir Mohamad in October 2001. AirAsia‚ the heavily-indebted subsidiary of the Malaysian government-owned conglomerate‚ DRB-Hicom‚ was losing money speedily. Instead
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its hub in Kuala Lumpur International Airport at breakneck speed‚ undercutting former monopoly operator Malaysia Airlines with promotional fares as low as RM1 (US $0.27). In 2003‚ AirAsia opened a second hub at Senai Airport in Johor Bahru near Singapore and launched its first international flight to Bangkok. AirAsia has since started a Thai subsidiary‚ added Singapore itself to the destination list‚ and commenced flights to Indonesia. Flights to Macau started in June 2004‚ while flights to Mainland
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Blue Ocean of Airasia: introduction Blue oceans might provide profitable high-growth for companies with new competitive advantages. Many companies over the worldhi have created blue oceans but these blue oceans only remain in a short periods and quickly become red oceans. Kim and Maugne claimed in their book that in order to have sustainable competition advantages‚ blue oceans should be different attached by low cost. However‚ the fact shows that innovations are expensive so it is difficult to
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Characteristics of Options r Definitions and Positions: - A Call Option gives its owner for a specified time the right to purchase an underlying good at a specified price (= exercise price or strike price) - A Put Option gives its owner for a specified time the right to sell an underlying good at a specified price (= exercise/strike price) - An American Option permits the owner to exercise (=buy/sell the underlying) at any time before or at expiration. A European Option can be exercised
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perception of low-cost travel‚ giving rise to a diverse cross-section of passengers. The AirAsia chief executive says: "We show that low-cost does not mean low class. In the Jakarta-Kuala Lumpur flight‚ you’ll find women with diamonds sitting beside maids. You could not see that before. That shows we’re reaching everyone." 1) Geographic characteristics The geographic characteristics of the target market of AirAsia are within the Australasian region. Attract people from Australia who wish to visit the
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PP16832/01/2013 (031128) Malaysia Initiating Coverage 10 September 2013 AirAsia X Buy (new) King Of Low-Cost‚ Long-Haul Share price: Target price: MYR1.05 MYR1.30 (new) High growth potential. AirAsia X is an excellent exposure to the low cost‚ long-haul (LCLH) industry which is enjoying breakneck growth rate and outdoing the general aviation market growth of 5.0% by a factor of 2-3x. The LCLH segment is relatively more defensive compared to full service carriers (FSC)‚ as more people switch
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External Analysis of AirAsia Perform an external analysis of AirAsia and identify possible opportunities and threats encountered by AirAsia. Industry Analysis An industry analysis was performed to assess the budget airline industry. 1. Bargaining Power of Supplier Overall‚ power of supplier is high as there are limited (availability of) suppliers (only Boeing and Airbus)‚ the switching cost is high (i.e. airplanes and their maintenance are costly)‚ and there are few substitutes for airplanes (i.e
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Air Asia AirAsia Berhad‚ is a Malaysian low-cost airline. It operates scheduled domestic and international flights and is Asia’s largest low fare‚ no frills airline. AirAsia was a pioneer of low cost flights in Asia. It is also the first airline in the region to implement fully ticketless travel and unassigned seats. However‚ as of 5 February 2009‚ AirAsia has implemented allocated seatings across all AirAsia flights‚ including in their sister airlines‚ Indonesia AirAsia and Thai AirAsia. Its main
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MALAYSIA Airlines (MAS) has admitted that it is tough fighting a low-cost carrier (LCC). It has decided to use its wholly owned unit‚ Firefly‚ to take on AirAsia. Firefly will turn into a true blue LCC and use jets in the attack. On Monday‚ Firefly said it would fly commercial jets for domestic routes and begin with crossover routes‚ e.g. Kota Kinabalu and Kuching‚ on Jan 15. Asean will be its next stop. Its B737-800s will take off from KL International Airport (KLIA). Firefly wants to have
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Strength and weakness of AirAsia |strength |weakness | |Low cost operations. |Service resource is limited by lower costs. | |Fewer management levels‚ effective‚ focused and aggressive |Government interference and regulation on airport deals and | |management.
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