Company Background and analysis of AirAsia This report conducts an analysis of AirAsia‚ the world’s Lowest Cost Airline. AirAsia is a Malaysian low cost airline. AirAsia was found in 1993 and it started its operations from 18 Nov 1996. It was established initially by DRB-Hicom‚ a government owned- conglomerate. On 2 December 2001‚ the heavily- indebted airline was purchased Tony Fernandes former Time Warner Executive. Tony was inspired by the Low-Cost Carrier business model of Southwest
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INTRODUCTION * AirAsia Berhad is part of the AirAsia Group‚ a world-famous low cost airline that operates extensive networks both domestically and internationally. * Since pioneering the low-cost carrier (“LCC”) model in ASEAN in 2001‚ it has grown from a domestic airline to the leading airline in Malaysia serving more than 55 destinations from its five hubs in Malaysia. Along with its affiliates (Thai AirAsia‚ Indonesia AirAsia‚ Philippines’ AirAsia and AirAsia Japan)‚ AirAsia Group is the largest
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average seat kilometer AirAsia focused on ensuring a competitive cost structure as its main business strategy. It has been able to achieve a cost per average seat kilometer (ASK) of 2.5 cents‚ half that of Malaysia Airlines and Ryanair and a third that of EasyJet. AirAsia can lease the B737-300s aircraft at a very competitive market rates due to the harsh global market conditions for the second-hand aircrafts because of the September 11th event in 2001. Low distribution cost AirAsia focus on Internet
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Value Chain Analysis of AirAsia The value chain analysis is used to evaluate the value of each particular functional activity that is added to the organisation’s products or services as seen in Diagram 1 [pic] a) Logistics This involves all areas of receiving‚ storing of inputs when producing outputs. So far‚ AirAsia only operates on a single type of aircraft‚ the Boeing 737-300. Based on a report published by Aero Connections in 2004‚ that particular model was the best selling commercial
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3.4 Select Strategic Options and Formulate Plans A strategy is a visionary of the actions an entrepreneur attracts up to accomplish an organisation’s mission‚ goals‚ and objectives. In other means‚ the mission‚ goals‚ and objectives spell out the end‚ and the strategy characterises the methods for achieving them. The process is separated into a series of individual parts. It is comprising of specific key performance indicators‚ profit raising‚ reporting structure‚ and so on. (Griff‚ 2014) Scarborough
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Introduction AirAsia Berhad is the leading airline in Asia which offers the largest low fare for domestic and international flights. It was established as a low cost airline as a dream by making flying is possible for everyone. It is just like their company slogan ‘Now Everyone Can Fly’. It scheduled to travel up to 78 destinations across to 25 countries domestically and internationally. AirAsia was a company originally owned by Malaysian government which was later bought by Anthony Francis
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Group Members: |Issuer | |ANBALAGAN A/L SUBRAMANIAM |Local Fund Investors | |TEH GUAN HONG |GOPALAN NAGAPA | |TANG KIN HENG |FALIQ RIZAL BIN MADZRI | |MOHD NIZAM BIN MOHD ARSHAD
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2.0 Planning and Strategic Management 2.1 SWOT Analysis Strengths Low cost operations AirAsia Berhad is the first airline company that offered a low cost flight in Asian market. By operating the low cost principle‚ AirAsia Berhad aim to maximize their sales and minimize their operating cost. Based on their slogan “Now Everyone Can Fly” have fulfilled the wants for those passengers who choose to fly with low cost airlines especially students‚ those family with lower income and low income
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organization that our group had chosen is AirAsia. AirAsia is Asia’s leading airline was established with the dream of making flying possible for everyone. Since 2001‚ AirAsia has swiftly broken travel norms around the globe and has risen to become the world’s best. With a route network that spans through our innovative solutions‚ efficient processes and a passionate approach to business. Together with associate companies‚ AirAsia X‚ Thai AirAsia and Indonesia AirAsia‚ AirAsia is set to take low-cost flying
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AirAsia was initially launched in 1996 as a full-service regional airline offering slightly cheaper fares than its main competitors. Unable to stimulate the market or attract enough passengers‚ the company was beset with major financial troubles. In 2001‚ Tony Fernandes reinvented the airline to model Southwestern’s no-frills/low cost design and with only three B737 aircrafts was able to quickly create one of the most profitable airlines in the world. Economies of Scale – Economies of scale exist
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