series of analysis would be done to segregate the more influential ones from the rest. A series of strategies would be then recommended for AirAsia to undertake so as to continue building brand awareness and brand equity throughout the world as a low-cost carrier. 1.0 EXTERNAL ANALYSIS 1.1 Industry Identification AirAsia belongs to the airline industry. Competition in the airline industry is very intense and is growing rapidly together with the increase in demand for budget fares across Asia.
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its operations. (Figures are comparison between 2004 and 2005) Net profit margins increased from 0.125 in 2004 to 0.167 in 2005‚ shows that AirAsia is achieving higher net profits due to its strong growth in sales and its ability to contain its cost effectively. Current ratio increased from 1.24 to 5.60‚ represents that AirAsia is liquid and has a strong working capital and good repaying ability. Quick ratio increased from 1.215 to 5.57 which show its increased ability to use quick assets
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Major issue JetBlue‚ already a successful airline company‚ is considering a proper way to allocate its existing resources between the long-haul and short-haul routes in order to control or even reduce the costs within its capability. To be specific‚ how to reduce costs across E190 and A320 without damaging the stakeholders’ interests and customer satisfaction is a key issue for JetBlue’s top management. In addition‚ due to the introduction of E190‚ problems arise‚ including how
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the industry into the black‚" IATA CEO Giovanni Bisignani said in a statement. Open skyies agreement draw new enters attentions and also open the opportunities to new markets. Peoples like to do self service than ever which reduce much operating cost. More and more customers prefer to have less food but cheaper fare; In another way‚ some people prefer to pay more for luxury reason. Demand on China route is creasing dramatically. Threats of airline industry are‚ Planes‚ fuel‚ gates‚ major
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Southwest Airlines Strategic Practices Marion L. Boston MGT 450 Strategic Planning for Organizations Instructor: Mark Bojeun April 4‚ 2011 Introduction Southwest Airlines’ company strategy consists of competitive moves and business approaches management has developed to attract and please customers‚ conduct operations‚ grow the business‚ and achieve performance objectives (J. Gamble & A. Thompson. 2009. p. 2). In writing to inform the management team of the discussion‚ we will discuss
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people who can not afford high prices of Full Service Carriers (FSC) can travel by Low Cost Carriers (LCC) or budget airlines. Air Deccan was India’s first LCC started in 2003. It flies to several metro and non-metro destinations. All airlines have three major fixed costs i.e. fuel costs‚ financing or aircraft lease and labour cost. But LCC costs are 10 to 15 per cent lower than FSC. This is because of three reasons. Firstly‚ saving on distribution cost as passengers book tickets on the internet. Secondly
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the airline industry as a whole; Scheduled‚ Charter‚ Low Cost and Freight. These airlines are situated at HUB’s‚ central airports that flights could be routed through (LHR) and fly to smaller SPOKE airports‚ which are the routes in which planes take out of the HUB airports (Smith‚ 2007). This system was introduced as a result of the US airline deregulation and benefits from offering more flights to passengers and allows airlines to provide low cost flights due to them making more of a profit. Even though
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Aeronautics Commission (TAC)‚ where Southwest was going to be flying only a few short dedicated routes and flying them cheaply. This business model was going to be financially straining on other airlines that were running those routes but at a higher cost. Southwest got its biggest break when Boeing agreed to sell Southwest three 737-200’s and Boeing carrying 90% of the financing (Kelly‚ 2012). This allowed Southwest to not have to acquire capital at a high interest rate; thus allowing more capital
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Summary: This report illustrates an in-depth look of easyJet and will also discuss an analytic research that was made to demonstrate aspects of the history of the airline‚ along with the marketing strategy and brand strategy used and implemented by the low-budget airline. The strengths‚ weaknesses‚ opportunities and threats‚ known as SWOT analysis‚ will also be illustrated along with the external environment better known as PEST analysis which consists of the political‚ environmental‚ social/cultural
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AirAsia Low Fare A Written Analysis of the Case Holy Cross College of Sasa‚ Inc KM. 9 Sasa‚ 8000 Davao City In Partial Fulfillment of the Requirements for the Subject Mktg 1: Principles of Marketing Mark Angelo B. Bugtac I – Executive Summary December 2000‚ AirAsia was an insolent subsidiary of deeply indebted Malaysian Conglomerate. Airline had only two planes. Tony Fernandes was a former managing director of Warner Musics Malaysian Operator. He assembled a group of small investors
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