members: Maha Abdul Muhsin – 0316481 Cheng Joe Ern- 0316764 Choong Mei foong - 0317321 Lee Wee beng - 0317260 Nuraliya Abu Mansor - 0317184 Elisabeth Christine - 0316942 Adam Lee Shyuk Nam- 0317012 AIR ASIA Introduction • AirAsia Berhad is a Malaysian low-cost airline headquartered in Kuala Lumpur‚ Malaysia. • Air Asia was established in 1994 and began operations on 18 November 1996. • On 2 December 2001‚ the airline was bought by former Time Warner executive Tony Fernandes’ company Tune Air Sdn Bhd •
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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 wherever proportionate increased in the amounts of inputs employed in a production process result in lower unit costs. (Grant‚ p 232) * Technical Input-Output relationships – “AirAsia operates a single type of aircraft
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decision and explain it further in detail. easyJet is a well known low-cost airline which operates in several European countries and has been founded by serial entrepreneur Sir Stelios Haji-Ioannou in 1995. easyJet undertook intensive research of a United States owned low-cost airline ‘Southwest Airline’. Most of the concepts for easyJet were adopted from Southwest airline; however easyJet added its own touch which reduced operating costs even further. EasyJet was strategically located at London’s Luton
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a Board member) over drinks at a local bar.” Southwest was started in a bar on a cocktail napkin. Fortune Magazine quoted Mr. Kelleher‚ “it was at the St. Anthony’s Club in San Antonio‚ Texas that Rollin King came to me with the idea of starting a low-fare airline in Texas.” Southwest did not make its maiden voyage until 1971 – from a napkin to the airways with their runway in the Court system. When Texas Aeronautics Commission authorized Southwest to fly‚ their competitors grounded them within
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that offer low-fares services such as JetBlue and Southwest. They are the airline companies that still growth during 2001 and make the huge profit during 2001 especially JetBlue because they serve in the market that most major airline companies were ignoring. Today‚ this push major airlines companies such as Delta‚ Northwest‚ and many other major airline companies had filed for bankruptcy to stop the debt that they created from 2001 and lost some market share to other low-cost and low-fare airline
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– the low fares airline: wither now? Executive Summary The purpose of this paper is to use analysis of the airline industry and of Ryanair to highlight the firms’ successes thus far. It also considers the sustainability of the current strategy by viewing the future of the firm and its competitors. Using Porter’s five forces‚ the VRIO framework and the SWOT analysis it gains intimate information on the factors impacting the firm and industry. Its success is primarily down to its low cost operations
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strategic analysis of AirAsia Berhad‚ a leading low fare airline in Asia that adopts a no-frills‚ hassle-free‚ low fare business concept. AirAsia continually ensures the satisfaction of the needs of its various stakeholders‚ aggressively gains market share by undertaking various measures in line with its innovative and low cost strategy and seeks to add value by embracing technology‚ emphasizing on service and placing importance on employee satisfaction. The cost advantages created through high aircraft
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JetBlue Airways Growing Pains An assignment according to the lecture „Strategy in international Business“ Rajamangala University of Technology Thanyaburi (RMUTT) Submitted to Mr.Sarakul Sukortprommee Jaunary 2013 Kathy Am Mara Nemela Preface This report is part of the Department of Strategy Management by objectives. For Education and Research on JetBlue ’s Airways which is mainly serves destinations
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Case Context Cebu Pacific Air owned by the Gokongwei family and established in 1988‚ is the provider of most domestic flights in the Philippines. In 2000‚ Cebu Pacific Air was able to go international and expanded operations to Asia-Pacific countries. It owns 45% of the market share‚ and is among the top 5 in growth in terms of passengers carried and served. The airline company is known for its promo fares‚ where one can save around 40% to 50%‚ if flights are booked early. For the longest time‚ Philippine
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increase by forty percent compared to 2009 levels (§1.15). The airline industry‚ low-cost and conventional carriers alike are taking a heavy toll from the fuel price hikes‚ which have contributed to a surge in operating costs up to twenty-nine percent(§1.15). Ryanair‚ a low-cost carrier‚ wasn’t spared by the rising operating expenses that plagued the airline industry. Nevertheless‚ Ryanair’s position as the leading low-cost carrier and its strategies has turned the unfavourable macro-environment to its
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