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 Airlines and proposed to start a Low-Cost Carrier but the government refused to issue
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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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financial distress can lead to bankruptcy. Financial distress is usually associated with some costs to the company; these are known as costs of financial distress. A common example of a cost of financial distress is bankruptcy costs. These direct costs include auditors’ fees‚ legal fees‚ management fees and other payments. Cost of financial distress can occur even if bankruptcy is avoided (indirect costs): Financial distress in companies can lead to problems that can reduce the efficiency of management
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Southwest Airlines is a major airline company operating in the United States. The company was founded in 1967 in Houston‚ Texas by Herb Kelleher and Rollin King. The company’s vision was a low-cost‚ no-frills airline that was safe‚ affordable‚ and fun. Out of that vision‚ and following and arduous inception‚ the company has become one of the largest U.S‚ airlines‚ getting more travelers to their destinations than any other U.S. airline‚ and making a profit while doing it. Southwest Airlines
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1989. This policy were known as "two airline policy" valid for three years and was directed at benefiting both Irish carriers Aer Lingus and Ryanair. The new policy ruled that the two major Irish airlines will not compete on any international route and they both had to have separate routes-European Union deregulation of the airline businesses from 1997; set up a number of low-cost airlines offering no-frills services. This deregulation enabled Ryanair to open new
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success of Southwest is mainly linked to its pricing strategy‚ it positioned itself as a low-price‚ short hauls and bare bones operation. There are numerous distinctive characteristics that had lead to the success of Southwest’s pricing strategy‚ this report has summarised these characteristics into four key categories and followed by a detailed explanation. These key factors appear to be niche marketing‚ cost containment‚ employee commitment and conservative growth. Niche Marketing While every
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single largest customer for the aircraft in Asia-Pacific‚ and potentially one of the largest airline fleets in the region. On 23 of March 2006‚ AirAsia successfully moved its operations to the new Low Cost Carrier Terminal (LCCT). This is a major milestone as it is the first dedicated terminal for low cost carrier operations in the world. Besides that‚ they have achieved many more heights even in the past 2 year. AirAsia are focus on its performance measurement system and made sure that whatever they
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boost loads amid intense competition and key revenue-generating currencies depreciated against SGD. Fuel prices remained high despite the weak global economic conditions. This had negatively impacted the Group’s operating performance as fuel cost is the largest cost component‚ constituting about 40 per cent of the Group’s operating expenditure. Group revenue grew $240 million (+1.6 per cent) to $15‚098 million‚ mainly from airline operations‚ as a result of stronger passenger carriage‚ albeit at lower
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AirAsia 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 ticket-less travel and unassigned seats. The airline was established in 1993 and started operations on 18 November 1996. It was originally founded by a government-owned conglomerate DRB-Hicom. On 2 December 2001‚ the heavily-indebted airline
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that could influence Southwest include high fixed costs‚ excess capacity‚ low differentiation‚ and price war. Fixed costs in the industry mean the costs of planes‚ fuel‚ pilots‚ flight attendants‚ and additional staff for luggage and customer service. All of these factors need to meet governmental regulations. Further‚ the company had to hire professional employees in this industry and cost the company a lot of money. In order to recover these costs‚ airlines are willing to maximize capacity of each
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