Tony Fernandes founded Tune Air Sdn Bhd in 2001‚ with a vision to make air travel more affordable to Malaysians. With that in mind‚ Tony and his three partners bought over AirAsia from its owner DRB-Hicom. Tune Air’s initial project was to remodel AirAsia into a low fare no frills carrier after successful low fare airlines such as U.S.-based Southwest Airlines and Dublin-based Ryanair and create a new aviation product in Malaysia. Under Tony’s leadership‚ the fledging airline with a RM40 million
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Title: AirAsia investment to expand. Research question: To what extend does AirAsia’s decision to purchase another 100 planes is a good investment when there is a new competitor in Malaysian’s aviation industry? Introduction: AirAsia is a Malaysian low-cost airline headquartered in Kuala Lumpur. It has been named as the world’s best low-cost airline and a pioneer of low-cost travel in Asia. AirAsia group operates scheduled domestic and international flights to 78 destinations spanning 25
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1.0 INTRODUCTION Background‚ History and the Business Concept AirAsia is a brand of airlines operated by AirAsia Berhad. A Malaysian based low-fare company. AirAsia established in 1993 and start the operations on 18 November 1996 (Wikipedia‚ 2011) Inspired by the success of Ryanair and EasyJet as low cost carrier‚ Toni Fernandes saw the potential of having the same concept in Asia. Air Asia executed the cost leadership strategy with introduced ticketless travelling‚ one type cabin‚ free
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this topic‚ cultural values also influence the leader’s personal values‚ which is turn influence men or women’s leadership practices. INTRODUCTION As the world knows that Tony Fernandes is the most important person in Malaysia budget airline‚ AirAsia. But before he wants to start his business he had to take risk and face challenges. How he able to build his empire nowadays successful? We always wonder and question how his remarkable achievement can lead to success. With the combination of his
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(5) synergy in ingormationtechnology and telecommunications‚ which support AirAsia Internet and mobile phone bookings. ShinCorp. allows subscribers of the Shin mobile phone flagship‚ Advanced Information Service‚ being able toreserve tickets through its short-messaging service (SMS). AirAsia with its politically powerful backermay well grow up to bite. This helps it open the Thailand market he IPO strengthens AirAsia balance sheet‚ further cuts its existing lowcosts at 2.5 US cents per ASK and
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The Competition Act 2010 is an act to promote economic development and protect consumers’ interest. It is implemented by the Malaysia Competition Commission (MyCC)‚ which was established under the Competition Commission Act 2010. This act was enacted by the Parliament of Malaysia in May 2010 and came into effect on 1 January 2012. The Competition Act 2010 is not meant to protect competitors. It is meant to ensure enterprises compete freely and fairly. Competition forces enterprises to be more efficient
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debt with ambitious CEO‚ Fernandes‚ implementing aggressive low cost systems throughout the organisation(Ricart and Wang 2005). In October 2004‚ AirAsia attracted over $200US million in capital through an initial public offer (IPO) in shares (Ahmad and Neal 2006). In 2009‚ a year when most airlines made considerable losses due to the financial crisis‚ AirAsia posted a profit of $161.1US million‚ highlighting their ability to perform in testing market conditions (Unknown 2010). In 2009 they also finally
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Case Analysis on the Article‚ ¡§Competitive Turbulence in the Airline Industry¡¨ (Segmentation‚ Targeting and Positioning) EXECUTIVE SUMMARY Airline industry has 4 sectors identified: Full-service‚ Budget‚ Limited-service‚ Premium-service Segmentation and Targeting: Psychographic‚ Behavioral‚ Geographic and Demographic Positioning: Value proposition matrix (more for more‚ less for less‚ etc.) Conclusion and Recommendations: « SIA in marginal value proposition
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Porter five forces of AirAsia Rivalry among existing competitor Air Asia offers flights with lower price that other companies‚ but there are some companies that also offer service by the same price such as Malindo Air and Firefly and also these companies provide service with the same level of Air Asia so‚ in this case rivalry among existing competitor is high. Threat of substitutes We can define substitutes as a product or service that can be replaced with original product and give more satisfaction
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As AirAsia Bhd. (AIRA) prepares to more than triple its fleet‚ Chief Executive Officer Tony Fernandes says he wants to match the growth of his budget airline with discount hotels‚ mobile phones and financial services. Tune Group‚ the closely held parent company of Fernandes and business partner Kamarudin Meranun‚ may sell stock in some of the units by the end of next year‚ Fernandes said. Initial public offerings are also planned for AirAsia’s Indonesian budget arm and long-haul unit AirAsia X
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