Air Asia has successfully positioned itself in customers’ mind. Its net profit for the second quarter ending 31 December 2004 was reported RM 44.4 million‚ a 323% increase over the previous quarter. AirAsia until today has flown more than 55 million passengers in and around Asia (Air Asia‚ 2005). AirAsia has also ventured into other market that complements with the airlines business. It has started franchises like the tunes hotels and red box couriers to gain maximum efficiency in and around the airline
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On its website AirAsia has listed down several justification on its need to build a new airport for its own purpose.[8] Among them are:- Passenger capacity - Although the current LCC Terminal in KLIA is currently undergoing construction to enable the terminal to handle 15 million passenger a year‚ AirAsia expects that the terminal will only hold the passenger growth for only one year. The company anticipates to handle 25 million passenger through the terminal on 2013 which a short fall of over
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accidents‚ terrorist attack‚ disaster to affect the customer confident 2. increasing the operation cost to increase full service. 3. the system may be disruption 4. government policy. 5. easy to entrance the same market for other airlines‚ the competitor will be increase. Strengths‚ Weaknesses‚ Opportunities and Threats Analysis for AirAsia 1.0 Strengths Ø Air Asia has a very strong management team with strong links with governments and airline industry leaders. This is partly contributed
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1. How did AirAsia’s short-haul business build its competitive advantage? AirAsia introduced themself as the first LCC in SE Asia region‚ by providing no-frills‚ casual short-haul service without serving meal‚ mileage point‚ or lounge etc. Which attracts newcomer customers who sensitive in price. AirAsia’s competitive advantages are comprised of both Cost Leadership and Differentiation with clear market positioning and brand image. Start from Acquisition from Malaysian government‚ Tony Fernandes
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that his staff are his best asset and that he constantly uses their suggestions to improve and innovate within the company. For a low-cost airline‚ turnaround time is a crucial element. The more time AirAsia planes are in the air‚ the more revenue can be garnered. Innovative procedures and systems contributed towards the company having one of the fastest turnaround times (25 minutes) in the world . The credit for those successes lays squarely with their staff base according to Fernandes‚ "Our people
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Background AirAsia is one of the award winning and largest low fare airlines in the Asia expanding rapidly since 2001. With a fleet of 72 aircrafts‚ AirAsia flies to over 61 domestic and international destinations with 108 routes‚ and operates over 400 flights daily from hubs located in Malaysia‚ Thailand‚ and Indonesia. Today‚ AirAsia has flown over 55 million guests across the region and continues to create more extensive route network through its associate companies. AirAsia believes in the
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Pricing Analysis Report AIRASIA BUDGET AIRLINE I. Executive summary Budget airline industry Singaporean airlines industry grew by 10.3% in 2007 to reach a value of S$6.5 billion‚ growing by more than 10% up to now. Noticeably‚ low-cost carriers have been the industry’s success story over the past decade. It has won huge number of passengers‚ stealing full-service market share and forcing full-service airline such as SIA to run its own low-cost options such as Scoot
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INTRODUCTION Company Background . AirAsia Berhad was established in 1993 and started operations on 18 November 1996. On December 2‚ 2001‚ the heavily-indebted airline was purchased by former Time Warner executive Tony Fernandes’s company Tune Air Sdn Bhd for the token sum of one ringgit. Fernandes proceeded to engineer a remarkable turnaround‚ turning a profit in 2002 and launching new routes from its hub in Kuala Lumpur International Airport at breakneck speed‚ undercutting former monopoly operator
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Company Case AirAsia: The Sky’s the Limit Low-cost carriers (LCCs) provide an alternative for price-sensitive business and leisure travelers to maintain their travel plans at lower cost. AirAsia‚ Asia’s leading airline‚ was established with the dream of making air travel possible for everyone and it is now one of the world’s best low-cost airlines. AirAsia was the first airline in Asia to introduce the budget‚ nofrills airline concept. It was founded in 2001 by CEO Tony Fernandes and this
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156417073 BUS 488 Strategy Assignment 3 – Individual Assignment 2 July 2010 Presentation Name: Lin Huisheng Student Number: K0805705 Contact Number: 90475900 Question 1 Perform an internal analysis on AirAsia and identify the core competencies of AirAsia. Based on your findings‚ provide possible explanation for AirAsia’s success. As mentioned by Hitt et. al. (2009‚ p72)‚ the internal analysis of a firm examines its portfolio of resources‚ bundle of heterogeneous resources
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