AirAsia: “Now Everyone Can Fly” I. Introduction AirAsia is a Low-fare airline company owned by Anthony Fernandes. The company had its beginnings since 2001 and has been growing rapidly ever since. Within two years‚ AirAsia has proven that low-fare airline models such as Southwest’s‚ Ryanair’s‚ and easyJet’s model would fare well in the Asian marketplace. Its success has even spawned numerous imitators and competitors. But the question still remains‚ can the low-fare model continue to succeed
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AIR ASIA Case Study Report 12509501267460 Core concepts : Porter’s 5 forces‚ SWOT Analysis ‚ Analysing the internal environment‚ Porter’s Value Chain‚ Competitive advantage within International context(cost analysis and differentiation) 1.0 Porter’s Five Forces: 6197601720215 1.1 Threat of new entrants- There is a need of high initial investment to run an airline industry business. This high capital requirement is in the form of buying of aircrafts‚ staff hiring‚ pilot hiring‚ etc. Thus‚
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Talent Solutions Case Study AirAsia Business Challenge Company Profile AirAsia‚ the leading and largest low-cost carrier in Asia‚ services an extensive network of 85 destinations. Within 10 years of operations‚ it has carried over 152 million guests and grown its fleet from just two aircraft to 106. The airline today is proud to be a truly ASEAN (Association of Southeast Asian Nations) airline with established operations based in Malaysia‚ Indonesia‚ Thailand‚ Philippines and
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important for an airline to have the right public image. If the national flag and perhaps a catchy logo on planes‚ counters and ticket covers were sufficient in the olden days‚ today branding is a science of its own. Half a dozen branding agencies‚ most of them based in London and the USA‚ are fighting not just on behalf of toothpaste or cars but‚ with dogged determination‚ in the aviation industry over budgets worth millions. "The airlines are much more conscious today that branding can be a question
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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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5.1.1 Low Operating Cost As we all know‚ AirAsia Berhad (AirAsia) is famous of its low-cost airfare. AirAsia is controlling excellently for parts of operation and distribution which both helping with keeping costs. Low cost principle that applied by AirAsia by eliminating provision of in-flight services that will definitely reduce the burden of high facility and overhead costs (Zhu‚ 2015). For instance‚ no frill or no luxury products will be installed inside the aircraft which means no free food
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[pic] [pic] AirAsia Company 1. Company Background: AirAsia‚ as the second Malaysian National Airline‚ provides a totally different type of service in line with the nation’s aspirations to benefit all citizens and worldwide travellers. Such service takes the form of a no frills - low airfares flight offering‚ 40%-60% lower than what is currently offered in this part of Asia. The story of emergence of AirAsia is similar to Ryanair‚ since both carriers underwent a
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The Low Cost Airline: AirAsia A study of opportunities‚ challenges and critical success factors LGT 3007 Air Transport Logistics Introduction History of low cost airlines The low-cost concept became a moneymaker in the United States‚ where it was pioneered in the 1970s by Southwest Airlines‚ the model for budget carriers elsewhere like Ryanair and easyJet in Europe. Definition of low cost airlines A low cost airline generally has many features that differentiate it from the traditional
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INTRODUCTION AND HISTORY AirAsia is a very successful low cost carrier. In a very short time‚ it became a market leader in the Asia region. The company successfully adopted cost leadership through operational efficiency and effectiveness. Using the slogan “Now Everyone Can Fly‚” AirAsia positioned itself successfully in the niche LCC market. AirAsia was the creation of former music publisher Tony Fernandes. After watching a television show in a pub about easyJet successfully competing against British
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Brand Portfolio Strategy and Firm Performance Brand Portfolio Company should run their brand as a portfolio. It helps marketing department to vary their focus on different brands according to the strength of the brands. Portfolio approach is not essential when there are small numbers of brands in a portfolio. Increasing the number of brands in a portfolio imposes complexity on product development‚ sourcing‚ manufacturing‚ distribution‚ sales channel model and marketing promotions. Company can try
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